Exhibit 10.15

 

2005 Annual Incentive Program

 

Under the Owens & Minor, Inc. 1998 Stock Option and Incentive Plan, the
Compensation & Benefits Committee (“Compensation Committee”) of the Board of
Directors is responsible for designating participants to whom incentive awards
are made for annual incentive payments and for determining the goals and
objectives on which such incentive awards are based.

 

The Compensation Committee has approved the 2005 Incentive Program which
designates teammates of the Company eligible to participate in the program and
specifies the terms and conditions of incentive awards that may be granted to
such teammates under the 1998 Stock Option and Incentive Plan, based upon the
achievement of certain financial and operational results during calendar year
2005. Under the 2005 Incentive Program, all corporate officers, operating
company officers and teammates having a title of “manager” and pay grade of 14
or above (excluding “project managers”) are eligible to participate in the
program, provided the teammate is an active employee on December 31, 2005 and
the date the award is granted.

 

The target cash and restricted stock awards as a percentage of base salary for
each corporate officer level are stated below:

 

    

Target as a Percent of Base Salary

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Position

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Cash

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+

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Restricted
Stock

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=

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   Total

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CEO

   60%    +    15%    =    75%

President

   48%    +    12%    =    60%

EVP/CFO/CIO

   40%    +    10%    =    50%

SVP

   32%    +    8%    =    40%

VP

   28%    +    7%    =    35%

 

The financial and operational objectives for the 2005 Annual Incentive Program
are based on the Company’s net sales, net income (or in certain instances, net
income of the Company’s OMSolutions operating unit), SG&A expense and gross
margin. Incentive awards will be granted shortly after the end of the 2005
calendar year if performance criteria are met.