Item 5.02 - Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On September 5, 2012, based on the recommendation of its Nominating and Corporate Governance Committee, the Board of Directors of Forbes Energy Services, Ltd., or the Company, appointed Ted A. Izatt to serve on its Audit Committee and Nominating and Corporate Governance Committee.

Further, on September 5, 2012, based on the recommendation of its Compensation Committee, the Board of Directors modified the Company's Director Compensation Policy to provide that (i) the annual equity award provided under such policy consist of restricted stock units vesting in equal monthly increments over the course of a year, (ii) such awards be made following the Company's Annual Meeting of Shareholders and (iii) the number of shares subject to such awards would be calculated by dividing $75,000 by the average of the closing price of the Company's common stock on NASDAQ for the 20 trading days immediately preceding the date of the Company's Annual Meeting of Shareholders. No changes were made to the value of the annual equity awards, which remains at $75,000. No changes were made with respect to director cash compensation.

In connection with this modified Director Compensation Policy, on September 5, 2012, each director, including Mr. Izatt, was granted 16,135 restricted stock units for 2012, which will vest in equal monthly increments over the course of a year. This award was calculated based on the 20 trading days immediately preceding July 9, 2012, the date of the Company's most recent Annual Meeting of Shareholders.

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