UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 16, 2014
RARE ELEMENT RESOURCES LTD.
(Exact name of registrant as specified in its charter)
British Columbia, Canada | 001-34852 |
|
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
225 Union Boulevard, Suite 250 Lakewood, Colorado | 80228 |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (720) 278-2460
Not Applicable |
(Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On June 16, 2014, Rare Element Resources, Inc., a wholly owned subsidiary of Rare Element Resources Ltd. (the “Company”), entered into a Severance Compensation Agreement (the “Severance Agreement”) with Paul H. Zink, the Senior Vice President and Chief Financial Officer of the Company. The Severance Agreement terminates and replaces the Change in Control Agreement between Mr. Zink and the Company, dated January 27, 2014, as referenced in the Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on January 29, 2014.
Under the Severance Agreement, Mr. Zink is entitled to separation benefits in the event that his employment is terminated by the Company without cause or by Mr. Zink for “good reason” due to certain reasons, including a material change in title or duties, a material reduction in compensation or a material geographic relocation, in each case which the Company has failed to cure and such termination occurs after a “change in control.” In this event, the separation benefits to be received by Mr. Zink will be equal to two times the sum of (a) his base salary plus (b) the greater of (i) the annual bonus amount with respect to the past two fiscal years (the “Average Bonus Amount”) or (ii) the target bonus amount established for the fiscal year in which the date of termination occurs, or, if none, an amount equal to 20% of his base salary for such fiscal year (the “Change in Control Benefits”). “Change in control” is defined as, subject to certain exceptions, the accumulation in any consecutive 12-month period by any individual, entity or group of 50.1% or more of the outstanding common shares of the Company; a sale of all or substantially all of the assets of the Company; or the failure, during any period of 12 consecutive months, of the incumbent Board of Directors of the Company (the “Board”) to maintain at least a majority membership on the Board. In addition to the Change in Control Benefits, Mr. Zink will receive separation benefits if a termination occurs prior to a change in control of the Company equal to his base salary plus the Average Bonus Amount.
Any separation benefits paid under the Severance Agreement will be paid in a lump sum 60 days after the date of termination. Equity incentive awards will vest automatically upon such termination, and Mr. Zink shall remain entitled to the election of continuation of certain benefits under the Consolidated Omnibus Budget Reconciliation Act of 1984, as amended. As consideration for the separation benefits under the Severance Agreement, Mr. Zink agreed to certain confidentiality obligations with respect to proprietary information of the Company gained as a result of his employment. In addition, Mr. Zink is subject to non-compete provisions that prohibit him from engaging in any competitive business, as defined in the Severance Agreement, during his employment and for a period of one year following termination within certain geographical boundaries based on the locations where the Company does business. Mr. Zink is also prohibited during his employment and for one year following termination from soliciting the services of any employee of the Company or the business of any customer of the Company.
This description of the Severance Agreement above is merely a summary and is qualified in its entirety by reference to the Severance Agreement attached hereto as Exhibits 10.1, which is incorporated by reference herein.
Item 9.01
Financial Statements and Exhibits.
(d)
Exhibits.
Exhibit |
| Description |
10.1 |
|
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: June 16, 2014
RARE ELEMENT RESOURCES LTD.
/s/ Kelli C Kast
By:
Name:
Kelli C. Kast
Title:
Vice President, General Counsel, and
Chief Administrative Officer
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EXHIBIT INDEX
Exhibit |
| Description |
10.1 |
|
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