Subsequent Event

9 Months Ended

Sep. 30, 2015

10. Subsequent Event

On October 19, 2015, the Company announced the appointment of Betty R. Johnson as the Company’s Senior Vice President, Chief Financial Officer and Treasurer, effective as of that date. Ms. Johnson replaces Paul J. Evans, who previously served in the role of Vice President, Chief Financial Officer and Treasurer. The Company determined that this transition should be treated as a subsequent event, with the financial impact recorded in the fourth quarter of 2015. Pursuant to the terms of Mr. Evans’ employment agreement, he is entitled to salary and benefits through his date of termination, two times his annual salary, two times his annual bonus at target, and Company funded benefit continuation coverage for himself and eligible dependents for two years. Under the circumstances of Mr. Evans’ departure, Mr. Evans’ equity grant agreements provide for accelerated vesting of his unvested stock options and restricted stock awards. As a result, the Company will record approximately $1.3 million of incremental expense in the fourth quarter of 2015. Additionally, Mr. Evans will be entitled to a pro-rated payout of unvested performance shares after the performance period ends. Future expense pertaining to the pro-rated payout will be adjusted quarterly based on forecasted performance.