Document:

Angiodynamics, Inc. Fiscal Year 2011 Senior Executive Equity  Incentive Program

 Exhibit 10.28 
 

 
 FY11 ANGIODYNAMICS SENIOR EXECUTIVE EQUITY INCENTIVE PROGRAM 

1. Introduction 
 Broad-based
employee stock ownership, combined with an effective communications program that is designed to create an employee ownership culture, can be a very dynamic tool for improving employee productivity, morale, and aligning incentives with shareholder
interest and thereby increasing profitability and shareholder value. Specifically, the purpose of the AngioDynamics Senior Executive Equity Incentive Program (SEEIP) is to: 

 

	 	•	 	 Attract, motivate and retain high-performing senior executives 

 

	 	•	 	 Encourage long-term commitment to AngioDynamics 

  

	 	•	 	 Retain key talent in a competitive labor market 

  

	 	•	 	 Motivate employees through financial rewards 

  

	 	•	 	 Align employees with shareholder interest 

 AngioDynamics uses a combination of Stock Options and Restricted Share Units (RSU’s) to achieve these goals. 
 2. RSU and Option Grant Eligibility 
 Only members of the AngioDynamics Global
Leadership Team (GLT) are eligible to participate in the SEEIP as described in this document. Participation in the SEEIP must be approved by the CEO and the Compensation Committee of the Board of Directors. Participants must have commenced
employment with AngioDynamics at least 3 months prior to the end of the previous fiscal year to be eligible. Grants for those individuals who have less than a full year of service will be prorated. 

To be eligible for a Restricted Stock grant an executive must: 
  

	 	•	 	 Have their most recent performance evaluation indicate an overall performance rating of meeting or exceeding expectations or in exceptional cases if
the rating was “needs development.” Both individual and overall business unit performance will be considered in the development of the recommendation, or 

 

	 	•	 	 Be considered a high potential employee or holding a critical position 

 3. Recommendations for RSU and Stock Option Grants 
 The Compensation Committee will
be responsible for determining the RSU and Option grant size for the CEO. The CEO will make recommendations for RSU and Option grants for each member of the GLT and the Compensation Committee will review and approve these grants. 

Exhibit 10.28 Senior Executive Equity Incentive Program FY11 Final 

  
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 4. Stock Options 
 Stock Options granted under the SEEIP will be nonqualified stock options, granted with an exercise price at the market value of AngioDynamics Common Stock on the date of grant, have a 7 year term, and
vest in equal parts over a 4 year period at the rate of 25% per year beginning on the first anniversary date following the date of grant. Stock Options are granted under and governed by to the terms of the 2004 Stock And Incentive Award Plan
(As Amended). 
 5. Restricted Stock Units 
 Restricted Stock Units (RSU’s) granted under the SEEIP entitle the recipient to receive shares of common stock on a time-based vesting schedule subject to continued employment, such that they vest
over 4 years at a rate of 25% per year beginning on the first anniversary date following the grant. RSU’s are granted under and governed by to the terms of the 2004 Stock And Incentive Award Plan (As Amended). 

6. Establishing the RSU and Option Pool Size 
 The RSU pool size available each year will be recommended by the CEO and approved by the Compensation Committee of the Board of Directors at the end of every fiscal year. 

The initial pool size for the fiscal year will be established using the sum of the midpoint recommendations for the eligible executives. Based on the
most recent fiscal year performance, that number may be adjusted up or down to reflect under or overachievement of key financial metric(s). The core metric, but not necessarily the only one, will be Operational EPS versus business plan. In its
recommendation for the pool size management will outline any variance between operational and reported EPS for consideration of the Compensation Committee. 
 In the case of the underachievement of the key financial metric(s), the overall pool size may be reduced by up to 25%. In the case of the overachievement of key financial metric(s), the overall pool size
may be increased by up to 25%. (Please note the +/- 25% is only a guideline. The Compensation Committee and/or Board can deviate from the range if extraordinary performance (positive or negative) warrants such action). 

 

					
	 Fiscal Year Performance
	  	Metric Attainment	 	Range of Pool Size
	 Underachievement
	  	80% - 95%	 	75% - 100%
	 Achievement
	  	95% - 105%	 	100%
	 Overachievement
	  	105% +	 	100% - 125%

 Every year before the end of a fiscal year the Compensation Committee will review the size of the equity pool based on
benchmarking of peer group companies and actual movement in share price. Other factors weighing in on this determination are the number of equity units available under our various equity plans as well as the equity burn rate as calculated and
recommended by the Risk Management Group (RMG) 
 Exhibit 10.28 Senior Executive Equity Incentive Program FY11 Final 

  
 2 

 7. Annual Option and RSU Grant Guidelines 

Using the data provided in the table below, the CEO will make a recommendation for grants for each individual member of the GLT. The Compensation
Committee will review and approve the individual grants. 
 In making these recommendations the total size of the pool, calculated as the sum of
all options and RSU’s at mid-point, adjusted for the pool-size adjustment as described in section 6, will not be exceeded. 
 The
Compensation Committee will also be responsible for determining the options grant size for the CEO. 
 Option Grant Ranges: 

 

													
	 Title/Position
	  	Low	 	  	Mid	 	  	High	 
	 President / CEO
	  				  	 	—  	  	  			
	 Executive Vice President / CFO
	  	 	12,500	  	  	 	25,000	  	  	 	37,500	  
	 Senior Vice President / GM
	  	 	10,000	  	  	 	20,000	  	  	 	30,000	  
	 Senior Vice President / CTO
	  	 	7,500	  	  	 	15,000	  	  	 	22,500	  
	 Senior VP’s NBD, Int., Ops
	  	 	6,000	  	  	 	12,000	  	  	 	18,000	  
	 Vice President QA/RC/CR
	  	 	3,250	  	  	 	6,500	  	  	 	9,750	  

 RSU Grant Ranges: 
  

													
	 Title/Position
	  	Low	 	  	Mid	 	  	High	 
	 President / CEO
	  				  	 	—  	  	  			
	 Executive Vice President / CFO
	  	 	5,000	  	  	 	10,000	  	  	 	15,000	  
	 Senior Vice President / GM
	  	 	5,000	  	  	 	10,000	  	  	 	15,000	  
	 Senior Vice President / CTO
	  	 	4,000	  	  	 	8,000	  	  	 	12,000	  
	 Senior VP’s NBD, Int., Ops
	  	 	3,000	  	  	 	6,000	  	  	 	9,000	  
	 Vice President QA/RC/CR
	  	 	2,500	  	  	 	5,000	  	  	 	7,500	  

 8. Plan Administration 
 This program is not intended and shall not be construed to create or imply a guarantee of employment for any specified period of time. Nothing in this Program should modify, limit or restrict the standard
terms and conditions governing the employment relationship between AngioDynamics and the Program Participant. 
 This program is governed by the
Compensation Committee of the Board of Directors. All modifications to this program must be approved proactively by the Committee. The Committee has the sole discretion as to the terms and conditions of the program. 

Exhibit 10.28 Senior Executive Equity Incentive Program FY11 Final 

  
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 The administration of the Program and the responsibility for carrying out its provisions shall be the
responsibility of the CEO, CFO, and VP—Human Resources. In the case of disputes regarding this Program or the interpretation of this Program, the decisions of the VP—Human Resources, CFO and CEO will be final. 

AngioDynamics, at its sole discretion, retains the right to amend the Program in whole or in part at any time. Amendments must be stated in writing and
are binding. Normally, amendments are intended to be prospective in nature; however, AngioDynamics reserves the right to make retroactive changes. 
 Exhibit 10.28 Senior Executive Equity Incentive Program FY11 Final 

  
 4Angiodynamics, Inc. Fiscal Year 2012 Senior Executive Cash Incentive Program

 Exhibit 10.29 

 

			
	 

	  	            FY12 Sr. Executive Cash Incentive Compensation Program

 PURPOSE 
 AngioDynamics is committed to providing competitive cash compensation and benefit programs to all levels of employees. For those in leadership positions, a performance-based Sr. Executive Cash Incentive
Compensation Program (SEICP) is provided in addition to competitive base salaries. Under the SEICP, AngioDynamics pays an incentive annually based on the achievement of corporate and individual financial objectives as well as non-financial
objectives for some participants. 
 Objectives for the SEICP at AngioDynamics include: 

 

	 	•	 	 Build a strong relationship between incentive pay and company performance 

 

	 	•	 	 Align leadership behavior and results to goals that drive organization success 

 

	 	•	 	 Attract, reward and retain leadership talent, while discouraging a sense of “entitlement” 

 

	 	•	 	 Offer “upside” reward potential when AngioDynamics’ targeted results are exceeded 

 

	 	•	 	 Inspire investor confidence by ensuring that pay governance processes are measured, transparent and aligned with AngioDynamics financial success

 ELIGIBILITY 
 Only members of the AngioDynamics Senior Executive Team are eligible to participate in the SEICP. Participation in the SEICP must be approved by the CEO and the Compensation Committee of the Board of
Directors. 
 TARGET INCENTIVE LEVELS 
 The target cash incentive bonus will typically be targeted to the following schedule, while considering a person’s job title, overall scope of responsibility, and current compensation package.

  

			
	 Title/Position
	  	 Standard Incentive Levels

	 President/CEO
	  	
	 Executive Vice President/CFO
	  	60% of base salary
	 Sr. Vice President/GM
	  	55% of base salary
	 Sr. Vice President/GM International, CTO
	  	55% of base salary
	 Sr. Vice President’s NBD, Ops
	  	40% of base salary

 These target incentives levels are reviewed annually by the Compensation Committee and changes are generally effective
June 1, the beginning of the fiscal year. Any change to a participant’s total annual SEICP target requires the approval of the CEO and the Compensation Committee of the Board of Directors. 

 PROGRAM COMPONENTS 
 This is an annual incentive compensation program, such that any amounts earned under the program are paid following completion of the annual financial audit of the Corporation and upon the approval
of the Compensation Committee or the Board of Directors, as may be required. 
 There are two components to the AngioDynamics SEICP program:

 Corporate Financial Objectives 
 80% of the participant’s total target incentive opportunity is based on the achievement of the Total Company Sales and Operating Income Targets or, in the case of executives with primary
responsibility for a Division or Segment, the achievement of the Divisional or Segment Sales and Operating Income Targets. (The Financial Objectives). Each Financial Objective represents one-half (or 40%) of the target incentive opportunity.

 CEO target incentive opportunity to be determined by employment agreement. 
 Payouts for the achievement of the Financial Objectives are governed by the following: 
  

	 	1.	No incentive for either Financial Objective is earned unless at least 90% (for US participants) or 80% (for OUS participants) of the Total Company Operating Income
Target has been achieved. 

  

	 	2.	Upon the achievement of 95% (US) / (90 %(OUS) of the Net Sales Target, incentive is earned and the payout is 50% of the incentive opportunity. Upon the achievement of
90% (US) / 80% (OUS) of the Operating Income Target, incentive is earned and the payout is 50% of the incentive opportunity. 

  

	 	3.	The payout is prorated such that at 100% achievement of the Financial Objective, the payout is 100% of the incentive opportunity. 

 

	 	4.	For achievement of the Net Sales Target above 100%, the payout is prorated such that 150% is paid for 105% achievement. 

 

	 	5.	For achievement of the Operating Income Target above 100%, the payout is prorated such that 150% is paid for 120% (US) / 120% (OUS) achievement.

  

	 	6.	The maximum possible payout for the achievement of a Financial Objective (Sales or Operating Income) is 150% of the incentive opportunity. 

*See the attached matrix for a more detailed outline of potential payouts. 
 The Financial Objectives (Sales and Operating Income Targets) on which incentive compensation is determined are those approved by the Board of Directors in the Company’s Annual Business Planning
Process. Possible exceptions can be granted by the Compensation Committee at any point during the fiscal year. Exceptions can be recommended by the CEO as well as the Compensation Committee. The approved fiscal 2012 Financial Objectives for
AngioDynamics and its U.S. and International Divisions are shown in the attached schedules. 
 Individual Objectives 

Also known as MBO’s (Management by Objectives), this component will constitute the remaining 20% of the employees’ total target incentive
each year. The MBO segment of the incentive will be calculated and any earned payment is made following the completion of fiscal year-end audit. 

 1) Each SEICP participant shall complete the appropriate MBO form, incorporating the
appropriate goals and objectives such that the weight of all objectives totals 100%. The guideline is to have a total of 3-4 MBO’s. Certain MBO’s can be shared between all leadership team members. 

When developing objectives, the following criteria must be followed: 
 All objectives need to have the following elements:
 Specific | Measurable |
Actionable | Relevant | Time bound 
 Well-formulated objectives should: 

 

	 	•	 	 be supportive of overall company goals 

  

	 	•	 	 benefit the company and stakeholders 

  

	 	•	 	 include target dates for beginning and completing 

  

	 	•	 	 be within the individual’s ability achieve/influence 

 Overachievement of MBO’s is generally not possible, unless a specific metric for over-/under achievement has been approved by the Compensation Committee. 

MBO’s should be reviewed and approved by the CEO. The CEO’s MBO’s are approved by the chairman of the Compensation Committee and the
chairman of the Board of Directors. The MBO forms are administered by the HR department. 
 At the end of the fiscal year, each participant is
responsible for summarizing in specific, measured terms the completion status of each objective on the MBO form. This form will be reviewed and approved during the annual performance review of the participant. All final forms must be approved by and
then forwarded to HR. 
 Payment for any earned MBO incentive will occur at the end of the fiscal year, after completion of the financial audit,
and the release of our results to the general public and upon the approval of the Compensation Committee. 
 PLAN ADMINISTRATION

 This plan is not intended and shall not be construed to create or imply a guarantee of employment for any specified period of time.
Nothing in this Plan should modify, limit or restrict the standard terms and conditions governing the employment relationship between AngioDynamics and the Plan Participant. 
 The administration of the Plan and the responsibility for carrying out and interpreting its provisions shall be the responsibility of the Human Resources management. In the case of disputes regarding this
Plan or the interpretation of this Plan, the decisions of the VP—Human Resources and CEO will be final. 
 AngioDynamics, at its sole
discretion, retains the right to amend the Plan in whole or in part at any time. Amendments must be stated in writing and are binding. Normally, amendments are intended to be prospective in nature; however, AngioDynamics reserves the right to make
retroactive changes. 

 The following criteria will apply to participation and payments: 

 

	 	1.	Participation in the plan commences on the first fiscal quarter following hire date and subject to pro-ration. 

 

	 	2.	Employees who change roles within the period must revise non-financial objectives and obtain appropriate approvals within 30 days of the change in position or
responsibilities. 

  

	 	3.	During an approved leave of absence the SEICP may be prorated. 

  

	 	4.	If a participant dies or becomes totally disabled (as defined in the Company’s disability Plan), the Participant will be eligible to receive a pro-rated payment
for the non-financial portion based on the individual’s accomplishment as of the termination or disability date. 

  

	 	5.	Employees must be in good standing (as defined by the AngioDynamics employee handbook) for the entire year for which the incentive is being paid. Receipt of a written
warning, a performance plan of action, or other disciplinary action may nullify an employees’ incentive opportunity. 

  

	 	6.	To be eligible for payment of any incentive earned under this program, employees must be considered “Active” at the time the incentive payment is actually
made and not have resigned or given notice of resignation prior to the payment date. 

  

	 	7.	In the event of a restatement of the Company’s financial results for any year in the 3 prior fiscal years following the payment of incentive compensation, the
Company reserves the right to claim back from the Participant any incentive compensation paid for Financial Objectives that would otherwise not have been earned as a result of the restated financial results. 

After the completion of a fiscal year the compensation committee will meet and approve the actual payout levels of the executive cash bonus. This will
only be after closing of the financial books of the company, as well as after completion of the annual performance appraisal for individual executives as performed by the CEO. The CEO will recommend an actual individual payout based on attainment of
financial objectives as well as individual MBO’s.

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