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): February 11, 2005
Stratasys,
Inc.
(Exact
name of registrant as specified in its charter)
|
Delaware
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1-13400
|
36-3658792
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|
(State
or other jurisdiction |
(Commission
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(IRS
Employer |
|
of
incorporation) |
File
Number) |
Identification
No.) |
|
14950
Martin Drive, Eden Prairie, Minnesota |
55344
|
|
(Address
of principal executive offices) |
(Zip
Code) |
Registrant’s
telephone number, including area code: (952)
937-3000
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:
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425) |
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12) |
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) |
|
o
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) |
Item 1.01. Entry into a Material Definitive
Agreement.
Executive
Employment Arrangement
On March
31, 2005, Robert F. Gallagher was appointed as Chief Financial Officer of the
Registrant. Mr. Gallagher will receive base compensation of $175,000 per annum
plus a guaranteed bonus for fiscal year 2005 of $40,000. In addition, Mr.
Gallagher received an employee stock option, exercisable for five years, to
purchase 25,000 shares of the Registrant’s common stock.
Approval
of 2005 Bonus Plan and Target 2005 Bonuses
On
February 11, 2005, the Compensation Committee of the Registrant (the
“Committee”) approved the Registrant’s bonus plan for fiscal year 2005 for the
Registrant’s “named executive officers” as well as certain other executive
officers of the Registrant (the “2005 Bonus Plan”). In addition, the Committee
determined the target performance criteria with respect to fiscal year 2005
bonuses applicable to the named executive officers.
The
purposes of the 2005 Bonus Plan are to (i) provide incentives to achieve the
Registrant’s growth, profitability and annual and long-term strategic
objectives; (ii) reward performance based on attainment of objectives that are
intended to benefit the Registrant and its shareholders; and (iii) attract,
retain, and motivate key executives. In arriving at its determinations, the
Committee considers the executive’s past contributions to the Registrant’s
growth, and the expected contribution of the executive to the Registrant’s
long-term growth attainment.
For
fiscal year 2005, in order to earn the target bonus, an executive must meet the
following objectives, each of which is weighted accordingly: 2005 revenue growth
(approximately 50% of the bonus), 2005 operating profit growth (approximately
30% of the bonus), and 2005 ending backlog (approximately 20% of the bonus).
Based upon the objectives set forth in the 2005 Bonus Plan, the total bonuses
that would be payable in respect of fiscal year 2005 to each of the named
executive officers, assuming that such objectives are completely fulfilled, are
as follows:
Name
and Position Maximum
2005 Bonus
S. Scott
Crump $114,678
Chief
Executive Officer
Thomas W.
Stenoien $110,000
Chief
Financial Officer
Approval
of 2005 Base Compensation
The
Committee conducts an annual performance review of the named executive officers
for the purpose of determining modifications to base compensation based on
performance, salary trends and surveys. On February 11, 2005, the Committee
conducted a review of the fiscal year 2004 performance of each of the named
executive officers, and based on this review, increased their base compensation
as follows:
| Name |
Year |
Base
Salary |
Approximate
% Increase — 2004 to 2005 |
| |
|
|
|
| S.
Scott Crump |
2005 |
$164,092 |
3.5% |
| |
2004 |
$158,543 |
|
| |
|
|
|
| Thomas
W. Stenoien |
2005 |
$130,000 |
18.2% |
| |
2004 |
$110,013 |
|
The
increase in Mr. Stenoien’s base salary also took into account his promotion to
Chief Operating Officer, effective March 31, 2005.
Approval
of 2004 Bonuses and Stock Options
In
connection with the Committee’s annual performance review on February 11, 2005,
the Committee determined and approved cash bonuses and stock options for the
named executive officers in respect of the preceding fiscal year. Bonuses to
each of the named executive officers were paid during fiscal year 2004 and
fiscal year 2005 for the attainment of objectives related to the Registrant’s
2004 performance with respect to revenue growth, operating profit growth, and
ending backlog, as follows:
| Name |
2004
Bonus |
Stock
Options¹ |
| |
|
|
| S.
Scott Crump |
$99,7002 |
20,000 |
| Thomas
W. Stenoien |
$92,5003 |
20,000 |
________________
1These
options to purchase shares of the Registrant’s common stock are exercisable for
a period of five years at an exercise price per share equal to $28.96, the
closing price on February 28, 2005.
² Includes a payment of $67,790 that was paid
on February 25, 2005. The remaining portion of the bonus was paid on a quarterly
basis during fiscal 2004.
³ Includes a payment of $54,085 that was paid
on February 25, 2005. The remaining portion of the bonus was paid on a quarterly
basis during fiscal 2004.
Item
5.02. Departure
of Directors or Principal Officers; Election of Directors; Appointment
of Principal Officers.
On March
31, 2005, Robert F. Gallagher was appointed as Chief Financial Officer of the
Registrant. Prior to joining the Registrant, Mr. Gallagher, age 49, was the
Chief Financial Officer of Selas Corporation of America. From October 2000 until
June 2002, he was Chief Financial Officer for Visionics Corporation. From
October 1989 until June 2000, Mr. Gallagher was employed by TSI
Incorporated.
On March
31, 2005, Thomas W. Stenoien was appointed as Chief Operating Officer of the
Registrant. Mr. Stenoien, age 54, served as Chief Financial Officer of the
Registrant from May 1997 to March 2005. Mr. Stenoien has also served as
Executive Vice President of the Registrant from 2001 to March 2005 and Secretary
since 1999. Mr. Stenoien joined the Registrant in February 1993 as Controller
and has also served as Director of Finance.
The press
release issued by the Registrant in connection with the executive officer
appointments as set forth above is attached hereto as Exhibit 99.1.
Item
9.01 Financial
Statements and Exhibits.
Exhibit
99.1 Press
Release
SIGNATURES
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.
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STRATASYS,
INC.
(Registrant)
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Date:
April 4, 2005 |
By:
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/s/
Thomas
W. Stenoien |
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Thomas
W. Stenoien
Chief
Operating Officer |
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