CGX Energy Inc V.OYL

"Change in Control"

[Schreibzey]

Did anyone pay any attention to the financial statements released yesterday, page 27, last paragraph under header 15. Commitments and Contingencies"

Quote: "The three contracts currently require a total payment of up to $1,333,000 (December 31, 2021 – $1,649,000) be made upon the occurrence of certain events such as termination and change in control."

Worth noting one of the three is the CFO, guessing the other is Suresh, the third, well I don't know who that would be. The term change in control was interesting to me.

First google search result: "A change in control agreement provides incentives to an executive to continue his or her employment. Such an agreement recognizes the distraction that an acquisition by another company or other change in control poses to an executive, and seeks to motivate the executive not to seek alternative employment opportunities."

Worth noting the $1.333M is significantly less than at any time during 2021.

Termination agreements are different than change of control agreements, as stated, Tralisa took home $754k on November 8th, 2021, the CFO transition NR came out the very next day. With the contingency value declining, perhaps there was thought the company might get an offer after Kawa. Now, with less risk comes less contingency? 

Change in control agreements are contracts that outline pay and benefits an executive will receive in the event of a change in company ownership.

[waitingstill]

This doesn't make sense. First Google says it is used to incentive the employee to stay but later you write it is a fee paid in event the company changes hands (ie change in control of the company which is how I understand it) but these are completely unrelated. Having the company taken over has nothing to do with incentivizing someone to stay with a company that no longer exists!

[Schreibzey]

Which part doesn't make sense? The quote in the financial statements says three contracts require a total pagement of up to $1,333,000 be made upon the occureence of certain events SUCH AS termination and change of control. They're not one in the same.  Tralisa is an example of a termination agreement, further related to the contingency payments on the books through November 2022

[CLOUDER]

Supplement this, FEC owns 90% ish  of CGX`s shares,  FEC owns 2/3rds of the one lease left, well there is a  boat launch, (i mean port facility),   and i think ,correct me if i am wrong but CGX also owe`s  FEC a chit load of money that they will take out of CGX`s hide,  (oh i mean  shares). adding to there  300 to 400 million shares  FD. 

[waitingstill]

Well, change of control and termination are effectively the same thing for these executives in that they will no longer be involved with the company on a go forward basis. A "change in control" means a management change such as a takeover by another company. Thus, this is a mechanism in place for when they lose their job either through incompetance or being taken over. It is a "

[Schreibzey]

Right, that's exactly what I was saying two days ago, but I gave two examples between the current 3 executives and Tralisa. Either way, it doesn't really matter, the only way out is a solid Wei-1 well and "change of control" anwyay. FEC doesn't have any noted contingencies related to management agreements in their financials that I saw, so seeing this is a data point in my

[a2bman]

Change of control are standard clauses, Ive had them and been paid out when we sold a public co.  Your reading too much into it.