As disclosed in note on the Board of Directors of the Company approved the Restructuring Plan for its manufacturing facilities and corporate level operations, which includes the closure of the Suzhou Facility and a reduction in labor force impacting approximately employees at the Company’s manufacturing facilities and its corporate headquarters. The Restructuring Plan is expected to generate expense reductions for the remainder of and annualized expense reductions thereafter. The Restructuring Plan, and wind down and closure of the Suzhou Facility, is expected to be substantially completed by the end of the quarter of

 

The Company estimates the total expense to be recognized in connection with the Restructuring Plan will be approximately million, comprised primarily of employee severance costs.

 

As disclosed more fully in note effective the Company entered into the Twelfth Amendment to the PNF Facilities with PNC.

 

On the Board of Directors of the Company appointed Eddie Smith, the Company’s Interim President and Chief Executive Officer, to the role of President and Chief Executive Officer effective Mr. Smith will receive an annual base salary of and will be eligible to participate in the Company’s short-term incentive plan with a target bonus of of his base salary. Mr. Smith will also receive a -time grant of options covering shares of Company common stock under the Company’s Incentive Plan. In connection with Mr. Smith’s stock option award grant, the Company’s Board of Directors amended the terms of Section of the Company’s Stock Incentive Plan, as amended, which provision limited the maximum number of shares of common stock for which stock options could be granted to any person in any calendar year to shares, to permit, as a -time waiver of such limit, the issuance of stock options covering shares to Mr. Smith pursuant to the terms of Mr. Smith’s offer letter of employment.

 

On the Board of Directors of the Company appointed Richard Fitzgerald, as the Company’s Chief Operating Officer effective on or before Mr. Fitzgerald will receive an annual base salary of and will be eligible to participate in the Company’s short-term incentive plan with a target bonus of of his base salary. Mr. Fitzgerald will also receive a -time grant of options covering shares of Company common stock under the Company’s Incentive Plan.

 

On the Company and Roger Dunfield, the Company’s Chief Financial Officer, entered into an agreement pursuant to which Mr. Dunfield will receive a -time grant of options covering shares of Company common stock under the Company’s Incentive Plan. The agreement also amends the letter agreement between Mr. Dunfield and the Company, dated which sets forth the terms of Mr. Dunfield’s employment, such that Mr. Dunfield will no longer be eligible to receive the Annual LTIP Grant. The terms of Mr. Dunfield’s employment will otherwise remain unchanged.