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CPI Aerostructures Announces Executive Employment Agreement Extensions

Dépèche transmise le 7 novembre 2011 par Business Wire

EDGEWOOD, N.Y.--(BUSINESS WIRE)--CPI Aerostructures, Inc. (“CPI Aero^®”) (NYSE Amex: CVU) today announced that it has entered into amendments of its employment agreements with each of Edward J. Fred, its Chief Executive Officer, Vincent Palazzolo, its Chief Financial Officer and Douglas McCrosson, its Chief Operating Officer. The term of each of the employment agreements was extended by two years, to end on December 31, 2014. Mr. Fred’s base salary will be $378,500 in 2013 and $395,000 in 2014, Mr. Palazzolo’s base salary will be $253,000 in 2013 and $263,000 in 2014, and Mr. McCrosson’s base salary will be $253,000 in 2013 and $265,000 in 2014. Messrs Fred, Palazzolo and McCrosson may earn bonuses in 2013 and 2014 calculated in the same manner as in previous years covered by their employment agreements. All other provisions of their respective employment agreements remain unchanged.

In addition, CPI Aero will change the compensation it pays to its four non-employee directors. Currently, non-employee directors are cumulatively paid $110,000 of cash and granted 80,000 stock options per year as compensation for their service on the board of directors. Effective January 1, 2012, the cumulative annual compensation for non-employee directors will be $219,025 of cash plus a grant of a maximum of 60,000 stock options. The number of options will be reduced such that the maximum annual expense to the Company for the stock options, calculated using the Black-Sholes option pricing model, will be $360,975. This will limit aggregate annual compensation expense to CPI Aero for non-employee director compensation to $580,000, as compared to approximately $1,009,000 for 2011.

About CPI Aero

CPI Aero is engaged in the contract production of structural and other aircraft parts for leading prime defense contractors, the U.S. Air Force, and other branches of the armed forces. CPI Aero also acts as a subcontractor to prime aircraft manufacturers in the production of commercial aircraft parts. In conjunction with its assembly operations, CPI Aero provides engineering, technical and program management services. Among the key programs that CPI Aero supplies are the E-2D Advanced Hawkeye surveillance aircraft, MH-53 and CH-53 variant helicopters, the UH-60 BLACK HAWK helicopter, the S-92® helicopter, the MH-60S mine countermeasure helicopter, the Gulfstream G650, C-5A Galaxy cargo jet, the A-10 Thunderbolt attack jet, and the E-3 Sentry AWACS jet. CPI Aero is included in the Russell Microcap® Index.

The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI Aero’s SEC reports, including CPI Aero’s Form 10-K for the year ended December 31, 2010 and Form 10-Q for the quarters ended March 31, 2011 and June 30, 2011.

CPI Aero^® is a registered trademark of CPI Aerostructures, Inc.