This excerpt taken from the FST 10-Q filed Nov 9, 2005.
EMPLOYEE BENEFITS AGREEMENT
This EMPLOYEE BENEFITS AGREEMENT (this Agreement) is dated as of September 9, 2005 by and between Forest Oil Corporation, a New York corporation (Forest), and SML Wellhead Corporation, a Delaware corporation and a wholly owned subsidiary of Forest (Spinco).
This excerpt taken from the FST 8-K filed Sep 15, 2005.
Employee Benefits Agreement
The Employee Benefits Agreement provides for the treatment of employees whose primary responsibilities include activities supporting the offshore Gulf of Mexico operation and for the parties liabilities and responsibilities with respect to employee compensation, benefits and related matters, including the treatment of employee stock options held by Forest employees who continue their employment with SML or Mariner. In addition to the covenants included in the Merger Agreement concerning employee matters, this agreement provides for the treatment of vested stock options as well as unvested stock options held as of the date of the Distribution, which unvested options will be converted into options to acquire Mariner common stock under a plan maintained by Mariner, on the same terms as in effect immediately prior to the conversion of the stock options. Forest anticipates that approximately 130 employees will be transfered to SML on or before the Distribution date.
Under the Employee Benefits Agreement, Forest and SML agree to indemnify the other party in connection with the liabilities associated with the employees related to their respective businesses following the Merger. This agreement will automatically terminate in the event the Merger Agreement is terminated.