UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FEBRUARY 11, 2005
--------------------------------------------------------------------------------
Date of report (Date of earliest event reported)
IKONICS CORPORATION
--------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
MINNESOTA 000-25727 41-0730027
------------------------------------- ---------------------------------- -------------------------------------
(State of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)
4832 GRAND AVENUE
DULUTH, MINNESOTA 55807
------------------------------------------------------ -----------------------------------
(Address of Principal Executive Offices) (Zip Code)
(218) 628-2217
--------------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 1.01. Entry into a Material Definitive Agreement.
2004 Bonus Compensation
On February 11, 2005, the Compensation Committee (the "Committee") of
the Board of Directors of IKONICS Corporation (the "Company") awarded the
following performance bonuses for fiscal 2004 to the executive officers who were
named in the Summary Compensation Table included in the Company's proxy
statement for the annual meeting of shareholders held on April 29, 2004:
Named Executive Officer 2004 Bonus
----------------------- ----------
William C. Ulland $9,519
Chairman, President and
Chief Executive Officer
Claude P. Piguet $6,346
Executive Vice President
2005 Bonus Program
The Committee has also implemented a bonus program for fiscal 2005
pursuant to which the Company's executive officers are eligible to receive cash
bonuses equal to a percentage of the 2005 bonus pool. The 2005 bonus pool will
be equal to 10% of the amount by which net income before income taxes (as
adjusted for unusual items of income or expense) ("EBT") for fiscal 2005 exceeds
the EBT target. Messrs. Ulland and Piguet are eligible to receive bonuses equal
to 30% and 20% of the pool, respectively. Each of the Company's other executive
officers is eligible to receive bonuses equal to 10% of the pool. The Committee
did not allocate 10% of the pool.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
IKONICS CORPORATION
Date: February 16, 2005 /s/ Jon Gerlach
-----------------------------------
Jon Gerlach
Chief Financial Officer
and Vice President of Finance
3