ITEM 5.02. DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS;
APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN
OFFICERS.
On October 21, 2021, Intelsat S.A. (the "Company") announced that Stephen
Spengler, Chief Executive Officer of the Company, has decided to retire from his
position as Chief Executive Officer upon the completion of the Company's
restructuring process in connection with its voluntary cases under Chapter 11 of
the United States Bankruptcy Code in the United States Bankruptcy Court for the
Eastern District of Virginia (the "Chapter 11 Cases"). A copy of the press
release issued by the Company is attached hereto as Exhibit 99.1 and
incorporated herein by reference.
In connection with Mr. Spengler's retirement, the Company and its subsidiary,
Intelsat US LLC ("Intelsat"), entered into an Amended and Restated Employment
Agreement with Mr. Spengler on October 21, 2021 (the "Agreement"), which
Agreement amends and restates Mr. Spengler's prior Employment Agreement, dated
as of March 18, 2013 (as amended from time to time, the "Prior Agreement").
Pursuant to the terms of the Agreement, Mr. Spengler's employment will continue
until the earlier to occur of (i) a date mutually agreed upon by Intelsat and
Mr. Spengler occurring after the date on which Intelsat emerges in accordance
with the Plan of Reorganization for the Chapter 11 Cases (the "Emergence Date")
and (ii) June 30, 2022 (as applicable, the "Retirement Date"). During the
four-month period following the Retirement Date, Mr. Spengler will render
transition assistance to his successor as Chief Executive Officer, as reasonably
requested by the Board of Directors of the Company or such successor.
Pursuant to the Agreement, unless Mr. Spengler (i) resigns without Good Reason
(as defined the Agreement) prior to the Retirement Date or (ii) is terminated
for Cause (as defined in the Agreement), he will be entitled to (A) 100% of the
payments due to him under the Company's Key Employee Incentive Plan ("KEIP"),
based on actual performance, without any proration and (B) a lump sum cash
severance payment in the amount of $2,850,000, subject to his execution and
non-revocation of a general release of claims and continued compliance with the
terms of the Agreement. Additionally, on the Emergence Date, Mr. Spengler will
receive a grant of time-vesting restricted stock units ("RSUs") with an
aggregate grant date fair value of $1,000,000, under the new management
incentive plan to be established on the Emergence Date. These RSUs will fully
vest upon the earlier to occur of (i) the Retirement Date and (ii) a termination
of his employment with Intelsat (A) due to his death or Disability (as defined
in the Agreement), (B) by Intelsat without Cause or (C) by Mr. Spengler for Good
Reason. The foregoing is in lieu of the severance due upon a termination by
Intelsat without Cause or by Mr. Spengler for Good Reason.
Except as described above, the Agreement contains substantially the same terms
as set forth in the Prior Agreement.
The foregoing description of the Agreement does not purport to be complete and
is qualified in its entirety by reference to the Agreement, a copy of which is
attached hereto as Exhibit 10.1 and incorporated herein by reference.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
Exhibit
No. Description
10.1 Amended and Restated Employment Agreement, dated October 21, 2021,
by and among Intelsat S.A., Intelsat US LLC and Stephen Spengler.
99.1 Press Release, dated October 21, 2021.
104 Cover Page Interactive Data File - the cover page XBRL tags are
embedded within the Inline XBRL document.
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