Restructuring

In July 2018, we established a restructuring plan related to our operations in the Netherlands, which are part of our Solar operating segment (the “Plan”). The goal of the Plan is to reduce operating costs and better align our workforce with the current needs of our solar business and enhance our competitive position for long-term success. Once fully implemented, we expect the Plan to reduce operating costs by approximately $3.0 million on an annualized basis. Under the Plan, we will reduce our Solar workforce by approximately 35-40 employees (approximately 20%). The affected employees are covered by a collective bargaining agreement, which defines the notice periods and amount due to employees in the event of involuntary termination.

The Company and its Chief Executive Officer and President, Fokko Pentinga, agreed on a transition of leadership, pursuant to which Mr. Pentinga stepped down as the Chief Executive Officer, President and a director of the Company effective December 6, 2018 (the “Effective Date”). In connection with his departure, Mr. Pentinga and the Company entered into a Separation Agreement and General Release of all Claims, dated November 28, 2018 (the “Separation Agreement”). Pursuant to the Separation Agreement, Mr. Pentinga will receive the following benefits:


•	a severance payment of $864,000 in gross, less all customary and appropriate income and employment taxes;


•	a payment of $458,500 for all other amounts due him;


•	all of his time-based stock options (the “Options”), became fully vested and immediately exercisable. Mr. Pentinga has the right to exercise Options with an exercise price of $7.01 or less until December 31, 2019. The remaining Options are exercisable during the 90-day period following the Effective Date; and


•	certain other benefits as set forth in the Separation Agreement.

The table below details the activity for three months ended December 31, 2018 related to the above restructuring actions and the outstanding obligations as of December 31, 2018, in thousands:



	Three Months Ended December 31, 2018
Balance at September 30, 2018	$	865
Severance expense, net of adjustments	874
Cash payments	(275		)
Balance at December 31, 2018	$	1,464