Allis-Chalmers Energy (ALY)

[ALERTS100%to10000%GAIN]

ALY~~~~Change in Directors or Principal Officers, Other Events



Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Effective December 29, 2010, the Compensation Committee (the "Committee") of the Board of Directors of Allis-Chalmers Energy Inc. (the "Company" or "Allis-Chalmers") approved the acceleration of the vesting of 244,383 shares of time-based restricted stock and 544,000 shares of performance-based restricted stock previously granted to Company employees, including 153,500 shares of time-based restricted stock and 429,000 shares of performance-based restricted stock previously granted to executive officers. Prior to the acceleration of vesting, the restricted stock granted to such employees had been scheduled to vest on several dates over the next five years, subject to continued employment of the employee grantees, and in the case of performance-based awards, achievement of certain performance goals. In connection with the acceleration, the Company withheld a portion of each employee's vested shares to cover federal income tax withholding obligations.

The Committee's decision to accelerate the vesting of the restricted stock was made as part of tax planning measures implemented for the benefit of the Company and the employee holders of the restricted stock. The Committee considered several factors in making this decision, including but not limited to, the anticipated effect of the accelerated vesting on the Company's financial results and the expected acceleration of all unvested equity awards during the first quarter of 2011 after stockholder approval, and upon closing, of the Company's pending merger, pursuant to the Agreement and Plan of Merger, dated August 12, 2010, by and among the Company, Seawell Limited and Wellco Sub Company.

The following table sets forth the number of shares of time-based restricted stock and performance-based restricted stock, the vesting of which was accelerated, for each of the Company's executive officers:


Time-Based Performance-Based
Name Restricted Stock Restricted Stock
Victor M. Perez 45,000 140,000
Chief Financial Officer
Theodore F. Pound 50,000 100,000
General Counsel and Secretary
Mark C. Patterson 43,500 75,000
Senior Vice President-Rental Services
Terrence P. Keane 15,000 80,000
Senior Vice President-Oilfield Services
Bruce Sauers - 34,000
Vice President and Chief Accounting Officer

http://biz.yahoo.com/e/110105/aly8-k.html


m1999