UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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): September 25, 2014
iPass Inc.
(Exact name of Registrant as specified in its charter)
Delaware | 000-50327 | 93-1214598 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
3800 Bridge Parkway, Redwood Shores, California | 94065 | |
(Address of principal executive offices) | (Zip Code) | |
(650) 232-4100
(Registrant’s telephone number, including area code)
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 (see General Instruction A.2. below):
¨ | 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)) |
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Resignations of Directors
On September 25, 2014, Peter Clapman, age 79, informed iPass that he was resigning as a member of the iPass board of directors for personal reasons. Mr. Clapman stated in his letter of resignation that “I am in agreement with, and support, the decisions and priorities of the board of directors as well as the direction and actions of the senior management of iPass.” Mr. Clapman’s resignation was effective immediately.
On September 26, 2014, Samuel Schwerin, also a director of iPass, informed iPass that he was resigning as a member of the board of directors effective immediately.
The Board of Directors is very thankful to Mr. Clapman and Mr. Schwerin for their years of service on the board of directors and wishes each of them well.
Appointment of New Director
On October 1, 2014, the iPass board of directors appointed Michael Tedesco as a member of the board of directors. In connection with this appointment, the board of directors also appointed Mr. Tedesco to be a member of the Audit Committee and Strategy Committee of the board of directors.
Compensation of New Director
As a member of the board of directors, Mr. Tedesco will be entitled to receive compensation as a non-employee director of iPass. The members of the board of directors who are not employees of iPass are reimbursed for travel, lodging and other reasonable expenses incurred in attending board of directors’ or committee meetings. The table below sets forth the cash compensation arrangements for non-employee directors for services as a non-employee director:
Annual cash retainer | $20,000 |
Chairman of the Board annual retainer | $20,000 |
Committee annual retainer | $5,000 |
Audit committee chairman annual retainer | $10,000 |
Compensation committee chairman annual retainer | $5,000 |
Corporate Governance and Nominating committee chairman annual retainer | $5,000 |
Per meeting board meeting fees | $1,000 |
Per meeting committee meeting fees | $1,000 |
Under the terms of the iPass Inc. 2003 Non-Employee Directors Plan, as amended, or the Directors Plan, iPass grants stock options and restricted stock to its non-employee directors as follows:
• | grants of stock options of 30,000 shares for initial grants, and 15,000 shares for annual grants, and |
• | restricted stock awards of 10,000 shares for initial grants and 5,000 shares for annual grants. |
Options granted under the Directors Plan vest as follows: (a) with respect to options that are awarded pursuant to initial grants, the 30,000 shares will vest with respect to 10,000 shares on the first anniversary of the date of grant, and thereafter in equal monthly installments over 24 months, and (b) with respect to options that are awarded pursuant to annual grants, the 15,000 shares will vest on the first anniversary of the date of grant or, if earlier, on the date of the next annual meeting following the date of grant. Options granted under the Directors Plan may permit exercise prior to vesting, but in such event the participant may be required to enter into an early exercise stock purchase agreement that allows iPass to repurchase unvested shares if the participant’s service terminates before vesting. All outstanding options under the Directors Plan are early exercisable.
Shares of stock acquired under a restricted stock award are subject to forfeiture in favor of iPass in accordance with the following vesting schedule: (a) with respect to restricted stock awards that are awarded pursuant to initial grants, one third of the 10,000 shares will vest on each of the first, second and third anniversaries of the date of grant, and (b) with respect to restricted stock awards that are awarded pursuant to annual grants, the 5,000 shares will vest on the first anniversary of the date of grant or, if earlier, on the date of the next annual meeting following the date grant.
In addition, at each annual meeting iPass will make additional annual grants from its 2003 Equity Incentive Plan of stock options and restricted stock to its non-employee directors as follows:
• | grant of a stock option of 15,000 shares, and |
• | restricted stock award of 5,000 shares. |
The options will vest on the first anniversary of the date of grant or, if earlier, on the date of the next annual meeting following the date of grant. Shares of stock acquired under a restricted stock award are subject to forfeiture in favor of iPass in accordance with the following vesting schedule: such shares will vest on the first anniversary of the date of grant or, if earlier, on the date of the next annual meeting following the date grant.
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.
iPass Inc.
By: /s/ Karen Willem
Karen Willem
Senior Vice President and
Chief Financial Officer
Dated: October 1, 2014