Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(d) On April 19, 2021, PAE Incorporated (the "Company") announced that the
Board of Directors (the "Board") of the Company appointed Mary M. Jackson and
Delara Zarrabi to serve on the Board effective as of April 15, 2021. In
connection with the election of Vice Admiral Jackson and Ms. Zarrabi, the Board
unanimously voted to increase the size of the Board from five to seven members.
Admiral Jackson was elected as a Class I director, to hold office for a term
that is scheduled to expire at the 2021 Annual Meeting of Stockholders and was
appointed to serve on the Board's Audit Committee, Compensation Committee, and
Nominating and Corporate Governance Committee. Ms. Zarrabi was elected as a
Class III director, to hold office for a term that is scheduled to expire at the
2023 Annual Meeting of Stockholders. Ms. Zarrabi will not serve on any
committees of the Board.
As an independent non-employee director, Admiral Jackson will receive an annual
cash retainer of $100,000 and an annual equity award with a grant date fair
value of approximately $125,000; provided, however, Admiral Jackson's annual
cash retainer for 2021 will be pro-rated based on the date of her election, and
she will receive a pro-rata restricted stock unit ("RSU") award of 13,110 RSUs,
with vesting of such RSUs to occur on March 15, 2022. Ms. Zarrabi will not
receive any compensation for her Board service.
In connection with their election to the Board, Admiral Jackson and Ms. Zarrabi
each entered into the Company's standard form of indemnification agreement, a
copy of which is filed as Exhibit 10.34 to the Company's Currrent Report on Form
8-K filed on February 14, 2020 (the "Prior 8-K"). The Company is not aware of
any transaction or relationship involving either Admiral Jackson or Ms. Zarrabi
requiring disclosure under Item 404(a) of Regulation S-K.
With respect to Ms. Zarrabi, under an Investor Rights Agreement, dated as of
February 10, 2020 (the "Investor Rights Agreement"), by and between the Company
and PE Shay Holdings, LLC (the "Platinum Stockholder"), the Platinum Stockholder
has the right to nominate up to two directors to the Board (each such director a
"Platinum Director"). Ms. Zarrabi will be considered the second Platinum
Director under the Investor Rights Agreement. A description of the Investor
Rights Agreement is set forth under Item 1.01 of the Prior 8-K, and such
description is incorporated herein by reference and is qualified in its entirety
by reference to the complete text of the Investor Rights Agreement, which is
filed as Exhibit 10.3 to the Prior 8-K.
Item 7.01 Regulation FD Disclosure.
The press release issued by the Company on April 19, 2021 announcing the
director appointments is attached as Exhibit 99.1 to this Current Report on Form
8-K and is incorporated herein by reference.
The information contained in Items 7.01 and 9.01 shall not be deemed "filed" for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), or otherwise subject to the liabilities of that section or
incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set forth by specific
reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
See the Exhibit Index below, which is incorporated by reference herein.
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