Commerce Energy Group, Inc. Announces Settlement With Former CEO
April 22 2005 - 8:30AM
PR Newswire (US)
Commerce Energy Group, Inc. Announces Settlement With Former CEO
COSTA MESA, Calif., April 22 /PRNewswire-FirstCall/ -- Commerce
Energy Group, Inc. (AMEX:EGR), a leading independent U.S.
electricity and natural gas marketing company, announced today that
it and its principal operating subsidiary, Commerce Energy, Inc.,
had entered into a settlement agreement and release with its
director and former Chief Executive Officer, Ian B. Carter. The
settlement agreement provides for payments to Mr. Carter totaling
$3 million and the payment of two months of COBRA coverage for Mr.
Carter. In addition, Mr. Carter will retain an option to purchase
2.5 million shares of the Company's common stock at $2.50 per
share. Under the settlement agreement, Mr. Carter and the Company
agreed to mutual general releases of all claims that the parties
may have against each other and Mr. Carter agreed to relinquish any
stock options he has been granted, or claims to have been granted,
in excess of the 2.5 million options. The settlement agreement also
contains other customary provisions including Mr. Carter's
statutory rights under the Older Workers Benefit Protection Act.
Mr. Carter will continue to serve as a director of the Company. In
connection with Mr. Carter's continuing service as a director of
the Company, the settlement agreement provides that Mr. Carter will
be entitled to receive compensation as a non-employee director in
accordance with the Company's established policies and will
continue to be covered under the Company's Director's and Officer's
liability insurance policy. The agreement also provides that Mr.
Carter will continue to be covered under such policy with respect
to his service as a director and officer of the Company for a
period of three years after his service as director of the Company
ends to the same extent as such policy covers then current,
non-employee directors. The Board of Directors, in expressing its
thanks to Mr. Carter, cited "Mr. Carter's effective leadership
through a very challenging and critical period for the Company. As
CEO, he made numerous significant contributions to the Company
during the past five years, including settling disputes with the
California Public Utilities Commission and the Department of
Corporations, helping the Company to become one of the largest
independent retail energy marketers in the nation and listing the
Company's common stock on the American Stock Exchange." About
Commerce Energy Group, Inc. Commerce Energy Group, Inc. (AMEX:EGR)
is a holding company doing business through its three wholly-owned
operating subsidiaries, Commerce Energy, Inc., Skipping Stone Inc.
and Utilihost, Inc. Commerce Energy is a FERC licensed unregulated
retail marketer of natural gas and electricity to homeowners,
commercial and industrial consumers, and institutional customers in
9 states. Skipping Stone is an energy consulting firm serving
utilities, pipelines, merchant trading and technology companies.
Utilihost provides outsourced energy transaction and data
management services for municipalities, government facilities,
power generators and energy merchant customers. For more
information, visit http://www.commerceenergygroup.com/. DATASOURCE:
Commerce Energy Group, Inc. CONTACT: Investors, Verna Ray of
Commerce Energy Group, Inc., +1-714-259-2500, , or 1-800-ELECTRIC
Web site: http://www.commerceenergygroup.com/
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