Exhibit 10.16


 


MOCON, INC.


 


DESCRIPTION
OF EXECUTIVE OFFICER


COMPENSATION
ARRANGEMENTS


 


All of the employees of
MOCON, Inc., including executive officers, are employed “at will” and do
not have employment agreements with MOCON. 
MOCON has, however, entered into a written Executive Severance
Agreement, a form of which was filed as an exhibit to our Annual Report on Form 10-K
for our fiscal year ended December 31, 2007, with five of our full-time
executive officers, including each of our officers listed below.  The following is a description of oral
compensation arrangements for 2010 between MOCON, Inc. and our executive
officers who are listed as “named executive officers” in our proxy statement
relating to our 2010 annual meeting of shareholders:


 




	
  Name of

  Executive

  Officer

  	
   

  	
  Title

  	
   

  	
  Base

  Salary

  	
   

  	
  Bonus

  Arrangements

  	
   

  	
  Stock

  Options

  	
   

  	
  Other

  
	
  Robert L. Demorest

  	
   

  	
  Chairman, President and Chief Executive Officer

  	
   

  	
  $281,635 per year

  	
   

  	
  See footnotes (1) and (2) below

  	
   

  	
  Stock options to purchase shares of MOCON common stock are granted
  from time to time in the sole discretion of the Compensation Committee of the
  MOCON board of directors

  	
   

  	
  Under the MOCON, Inc. Savings
  and Retirement Plan, participants, including executive officers, may
  voluntarily request that MOCON reduce pre-tax compensation by up to 75%
  (subject to certain special limitations) and contribute such amounts to a
  trust. MOCON contributed an amount equal to 50% of the first 6% of the amount
  that each participant contributed under this plan. MOCON provides an automobile
  for each of its full-time executive officers. Executive Officers generally
  receive 3-5 weeks vacation per year. MOCON employees, including its executive
  officers, are not compensated for unused vacation. Executive officers are
  reimbursed for expenses incurred in the ordinary course of business.
  Executive officers receive other benefits received by other MOCON employees,
  including health, dental and life insurance benefits.

  
	
  Daniel W. Mayer

  	
   

  	
  Executive Vice President

  	
   

  	
  $212,676 per year

  	
   

  	
  See footnotes (1) and (2) below

  	
   

  	
  See above

  	
   

  	
  See above

  
	
  Darrell B. Lee

  	
   

  	
  Vice President, Chief Financial Officer, Treasurer and Secretary

  	
   

  	
  $157,073 per year

  	
   

  	
  See footnotes (1) and (2) below

  	
   

  	
  See above

  	
   

  	
  See above

  






 

















 




	
  Name of

  Executive

  Officer

  	
   

  	
  Title

  	
   

  	
  Base

  Salary

  	
   

  	
  Bonus

  Arrangements

  	
   

  	
  Stock

  Options

  	
   

  	
  Other

  
	
  Douglas J. Lindemann

  	
   

  	
  Vice President and General Manager

  	
   

  	
  $181,317 per year

  	
   

  	
  See footnotes (1) and (2) below

  	
   

  	
  See above

  	
   

  	
  See above

  
	
  Robert E. Forsberg

  	
   

  	
  President, Baseline-MOCON, Inc.

  	
   

  	
  $148,361

  	
   

  	
  See footnotes (1) and (2) below

  	
   

  	
  See above

  	
   

  	
  See above

  






 






(1)                                 MOCON provides its executive officers and
other employees a direct financial incentive to achieve MOCON’s annual profit
goals through the MOCON, Inc. Incentive Pay Plan, which was established
pursuant to resolutions of the Compensation Committee effective January 1,
2003 and filed as an exhibit to MOCON’s annual report on Form 10-K for the
year ended December 31, 2002.  Under
the Incentive Pay Plan, annual goals are measured by MOCON’s annual net income
before income taxes and incentives for Mr. Demorest, Mr. Lee, Mr. Lindemann
and Mr. Mayer, who have overall corporate responsibilities.  The Incentive Pay Plan contemplates that each
year the Compensation Committee will establish goal amounts for MOCON’s
executive officers and will determine the percentage of salary at goal for
MOCON’s executive officers.  On December 31,
2009, the Compensation Committee established these goal amounts and determined
these percentages.  Although the goal
amounts are confidential, the 2010 percentages of salary at goal range from
forty percent to sixty-five percent of 2010 base salary earned, at goal, with
the actual incentive paid based on the percentage of goal achieved, up to a
maximum of one hundred fifty percent. 
The fiscal 2010 goals and percentages of salary were set forth in
resolutions approved by the Compensation Committee and are not otherwise set
forth in any written agreements between MOCON and the executive officers.  The following are the amounts paid to each of
MOCON’s executive officers under the Incentive Pay Plan with respect to fiscal
2009:  Mr. Demorest: $117,849; Mr. Mayer:
$54,718; Mr. Lee: $40,412, Mr. Lindemann: $52,459 and Mr. Forsberg:
$2,280.  These amounts were paid in March 2010.


 


(2)                                 On December 31, 2009, the Compensation
Committee established individual special performance related bonus arrangements
for Messrs. Demorest, Mayer, Lee, Lindemann and Forsberg to further
motivate these individuals to attain certain company-related performance goals
in addition to the profitability performance-related goals covered under MOCON’s
Incentive Pay Plan.  While the specific
performance goals remain confidential, the bonuses if paid will be in the form
of an extra week of paid vacation and an all-expense paid trip for two, up to
maximum amounts ranging from $10,000 to $13,000.  The terms of the fiscal 2010 special
performance related bonuses were set forth in resolutions approved by the
Compensation Committee and are not otherwise set forth in any written
agreements between MOCON and the executive officers.