Document:

exv10w30

 

Exhibit 10.30

Executive Performance Incentive Plan

Effective January 1, 2008

Performance Period: January 1 – December 31, 2008

 

 

	 	 	 
	

	 	Executive Performance Incentive Plan

Effective January 1, 2008

Performance Period

January 1 - December 31, 2008

	I.	 	Purpose of the Plan
	 
	 	 	ev3 Inc.’s compensation philosophy is to pay for performance. The purpose of the ev3 Inc.
Executive Performance Incentive Plan (the “Plan”) is to align the interests of ev3 Inc. and
its subsidiaries (the “Company”), executive-level employees, and stockholders by providing
quarterly incentives for the achievement of key business and individual performance measures
that are critical to the success of the Company and linking a significant portion of each
executive employee’s annual compensation to the achievement of such measures.
	 
	II.	 	Eligible Participants
	 
	 	 	The Company will determine eligibility criteria for the Plan on an annual basis and in its
sole discretion. For 2008, the Plan covers the following: (i) all regular, salaried,
exempt United States employees in Levels 6 and above, and (ii) international and
expatriate/inpatriate employees in Levels 6 and above who are determined by the Company to
be eligible for participation (“Executives” or “Participants”). Notwithstanding the
foregoing, Participants in positions covered by sales compensation plans are not eligible
Participants in the Plan.
	 
	 	 	The Plan year runs from January 1 - December 31 of each year (the “Plan Year”). Payouts
will be made on a quarterly basis (the “Plan Quarter”). Participants with less than a full
Plan Quarter of service, whose incentive target percent has changed during a Plan Quarter or
has changed from full-time to part-time may be eligible to participate in the plan on a
prorated basis, determined by the percentage of time they were eligible to participate
during that Plan Quarter under applicable criteria. Participants with less than one full
month of eligible service in a Plan Quarter will not be eligible to receive an award under
the Plan for that Plan Quarter.
	 
	III.	 	Administration of the Plan
	 
	 	 	The Compensation Committee of the Board of Directors of the Company will administer the
Plan. The Compensation Committee, in its sole discretion, may delegate to the Company’s
Chief Executive Officer activities relating to Plan administration that are not required to
be exercised by the Compensation Committee under applicable laws, rules, regulations and the
Compensation Committee Charter. Non-delegable activities include, but are not limited to,
final approval of any payouts under the Plan to Executive Officer level employees.
Delegable activities include, but are not limited to, recommendations regarding payouts
under the Plan to Executive Officer level employees and final approval of any payouts under
the Plan to Participants that are not Executive Officer level employees. All decisions of
the Compensation Committee and Chief Executive Officer will be final and binding upon all
parties, including the Company and Plan Participants.
	 
	IV.	 	Incentive Targets
	 
	 	 	Incentive targets have been approved by the Compensation Committee, in the case of
Participants that are Executive Officer level employees, and by the Chief Executive Officer,
for all other eligible Plan Participants, in each case based upon their level of
responsibility within the Company and impact on the business. These incentive targets
represent the incentive (as a percent of a Plan Participant’s base salary) that a
Participant is eligible to receive under the Plan. It is the Company’s intention to provide
significant incentive and reward opportunities to its Executives for world-class performance
achievement.

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	 	Executive Performance Incentive Plan

Effective January 1, 2008

Performance Period

January 1 - December 31, 2008

	V.	 	Individual Performance Measures
	 
	 	 	Individual performance measures for a Plan Year are established during the annual goal
setting process. Additionally, performance measures are established for each of the four
quarters of the Plan Year. Individual objectives for Executive Officer level employees
other than the Company’s quarterly goals must be agreed to and approved by the Compensation
Committee. Individual objectives for all other Participants other than the Company’s
quarterly goals must be agreed to and approved by the Chief Executive Officer.
	 
	VI.	 	Company Performance Measures
	 
	 	 	For each Plan Quarter, the Compensation Committee, together with input from the Company’s
Chief Executive Officer, will identify critical Company performance measures and determine
the incentive pool funding for the Plan based on achievement of such Company performance
measures. The 2008 Company performance measures are:

	 	•	 	Worldwide Revenue
	 
	 	•	 	Earnings Per Share (EPS)
	 
	 	•	 	Cash Flow

The Compensation Committee, with input from the Company’s Chief Executive Officer, may
take into consideration the relative performance by each division of the Company with
regard to Performance measures

	VII.	 	Incentive Pool Funding
	 
	 	 	The incentive pool funding is the amount of money that is available for distribution to Plan
Participants under the Plan based on achievement of the Company performance measures.
Appendix A describes in more detail how the three Company performance measures will
impact the incentive pool funding. The incentive pool is funded quarterly on the following
basis: 20% of the annual pool in Q1, 20% of the annual pool in Q2, 20% of the annual pool
in Q3 and 40% of the annual pool in Q4.
	 
	VIII.	 	Individual Incentive Payment Criteria, Calculation, and Payout
	 
	 	 	A Plan Participant must be actively employed by the Company on the last day of the month
of the Plan Quarter to be eligible for an incentive payment under the Plan for that Plan
Quarter.
	 
	 	 	The incentive payment under the Plan for any eligible Plan Participant for a particular Plan
Quarter will vary depending upon the approved incentive pool funding level for that Plan
Quarter, the Participant’s base salary as of the first day of the last month of the Plan
Quarter, the Participant’s incentive target for that Plan Quarter, and the Participant’s
overall individual performance during that Plan Quarter, relative performance to other Plan
Participants and achievement of objectives relative to other eligible Plan Participants..
The total of incentive payments to all eligible Plan Participants may not exceed the funding
pool(s) established by the Compensation Committee for each Plan Quarter.
	 
	 	 	As soon as practicable after the appropriate financial and other data has been compiled
after the end of each Plan Quarter, individual incentive payments under the Plan will be
determined as follows: With respect to Participants that are Executive Officer level
employees, the Chief Executive Officer will recommend to the Compensation Committee the
amount of each incentive payment to be made to each Executive Officer under the Plan and the
Compensation Committee will then approve the final amount of each incentive payment to be
made to each such Plan Participant, taking into account the recommendation of the Chief
Executive Officer and such other factors as the Compensation Committee determines
appropriate. With respect to all other Plan Participants that

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	 	Executive Performance Incentive Plan

Effective January 1, 2008

Performance Period

January 1 - December 31, 2008

	 	 	 	are not Executive Officer level employees, the Chief Executive Officer will approve the final amount of each
incentive payment to be made to each such Plan Participant. All final individual incentive
payouts under the Plan to Plan Participants that are Executive Officer level employees will
be certified in writing by the Compensation Committee and all final individual incentive
payouts under the Plan to other Plan Participants that are not Executive Officer level
employees will be certified in writing by the Chief Executive Officer. Individual incentive
payments under the Plan will be made in a lump sum, less applicable withholding taxes, as
soon as reasonably practicable after the determination of such payments.
	 
	 	 	 	In approving final individual incentive payments under the Plan, the Compensation Committee,
in the case of payments to Executive Officer level employees, and the Chief Executive
Officer, in the case of all other payments under the Plan, reserves the right to recognize
individual performance and to provide appropriate differential incentive compensation.

	IX.	 	Plan Discretion
	 
	 	 	All benefits payable under the Plan are discretionary and no Plan Participant shall have any
right to payment under the Plan until actually paid.
	 
	 	 	To the extent necessary with respect to any Plan Quarter, in order to avoid any undue
windfall or hardship due to external causes, the Compensation Committee may, without the
consent of any affected Plan Participants, revise one or more of the Company performance
measures or otherwise make adjustments to payouts under the Plan to take into account any
acquisition or disposition by the Company not planned for at the time the Company
performance measures were established, any change in accounting principles or standards, or
any extraordinary or non-recurring event or item, so as equitably to reflect such event or
events, such that the criteria for evaluating whether a Company performance measure has been
achieved will be substantially the same (as determined by the Compensation Committee)
following such event as prior to such event.
	 
	X.	 	Termination, Suspension, or Modification
	 
	 	 	The Company may terminate, suspend, modify and if suspended, may reinstate or modify, all or
part of the Plan at any time, with or without notice to the Plan Participants. Exceptions
to the eligibility of, or the extent to which the Plan applies to, any particular Plan
Participant must be approved, on a case-by-case basis, by the Compensation Committee.
	 
	XI.	 	Limitation of Liability
	 
	 	 	No member of the Company’s Board of Directors, the Compensation Committee, any officer,
employee, or agent of the Company, or any other person participating in any determination of
any question under the Plan, or in the interpretation, administration, or application of the
Plan, shall have any liability to any party for any action taken, or not taken, in good
faith under the Plan.
	 
	XII.	 	No Right to Employment
	 
	 	 	This document sets forth the terms of the Plan and it is not intended to be a contract or
employment agreement between any Plan Participant and the Company. Nothing contained in the
Plan (or in any other documents related to the Plan) shall confer upon any employee or Plan
Participant any right to continue in the employ or other service of the Company or
constitute any contract or limit in any way the right of the Company to change such person’s
compensation or other benefits or to terminate the employment or other service of such
person with or without cause or notice.

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	 	Executive Performance Incentive Plan

Effective January 1, 2008

Performance Period

January 1 - December 31, 2008

	XIII.	 	Non-Assignability
	 
	 	 	Except for the designation of a beneficiary(ies) to receive payments of benefits for a
particular Plan Quarter following a Plan Participant’s death after the completion of such
Plan Quarter, no amount payable at any time under the Plan shall be subject to sale,
transfer, assignment, pledge, attachment, or other encumbrance of any kind. Any attempt to
sell, transfer, assign, pledge, attach, or otherwise encumber any such benefits, whether
currently or thereafter payable, shall be void.
	 
	XIV.	 	Withholding Taxes
	 
	 	 	The Company is entitled to withhold and deduct from any payments made pursuant to the Plan
or from future wages of a Plan Participant (or from other amounts that may be due and owing
to the Plan Participant from the Company), or make other arrangements for the collection of,
all legally required amounts necessary to satisfy any and all federal, state, and local
withholding and employment-related tax requirements attributable to any payment made
pursuant to the Plan.
	 
	XV.	 	Unfunded Status of Plan
	 
	 	 	The Plan shall be unfunded. No provisions of the Plan shall require the Company, for the
purpose of satisfying any obligations under the Plan, to purchase assets or place any assets
in a trust or other entity to which contributions are made or otherwise to segregate any
assets. Plan Participants shall have no rights under the Plan other than as unsecured
general creditors of the Company.
	 
	XVI.	 	Other
	 
	 	 	Except to the extent in connection with other matters of corporate governance and authority
(all of which shall be governed by the laws of the Company’s jurisdiction of incorporation),
the validity, construction, interpretation, administration and effect of the Plan and any
rules, regulations, and actions relating to the Plan will be governed by and construed
exclusively in accordance with the internal, substantive laws of the State of Minnesota,
without regard to the conflict of law rules of the State of Minnesota or any other
jurisdiction.

5exv10w38

 

Exhibit 10.38

Consent and Second Amendment

to

Loan and Security Agreement

     THIS CONSENT AND SECOND AMENDMENT to Loan and Security Agreement (this “Amendment”) is entered
into as of October 4, 2007, by and between SILICON VALLEY BANK (“Bank”), on the one side, and EV3
ENDOVASCULAR, INC., a Delaware corporation, EV3 INTERNATIONAL, INC., a Delaware corporation, and
MICRO THERAPEUTICS, INC., a Delaware corporation (collectively and jointly and severally referred
to as “Borrowers”), whose address is c/o ev3 Inc., 9600 54th Avenue North, Plymouth, MN
55442, on the other side.

Recitals

     A. Bank and Borrowers have entered into that certain Loan and Security Agreement dated as of
an Effective Date of June 28, 2006 (as the same may from time to time be further amended, modified,
supplemented or restated, the “Loan Agreement”). The Obligations of the Borrowers have been
guarantied by, among others, the following companies, in favor of Bank: ev3 Inc., a Delaware
corporation; Micro Therapeutics International, Inc., a Delaware corporation; ev3 Technologies,
Inc., a Delaware corporation; EndiCOR Medical, Incorporated, a Delaware corporation; ev3
Peripheral, Inc., a Minnesota corporation; ev3 Sunnyvale, Inc., a California corporation; and ev3
Santa Rosa, Inc., a California corporation.

     B. Bank has extended credit to Borrowers for the purposes permitted in the Loan Agreement.

     C. Borrowers have requested that Bank (i) consent to the FoxHollow Merger (as defined below),
(ii) temporarily suspend the Tangible Net Worth covenant under the Loan Agreement, and (iii) make
certain other revisions to the Loan Agreement, all as more fully set forth herein.

     D. Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the
extent, in accordance with the terms, subject to the conditions and in reliance upon the
representations and warranties set forth below.

Agreement

     Now, Therefore, in consideration of the foregoing recitals and other good and
valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to
be legally bound, the parties hereto agree as follows:

     1. Definitions. Capitalized terms used but not defined in this Amendment shall have the
meanings given to them in the Loan Agreement.

 

 

     2. Consent to Merger. Borrowers have advised Bank that on July 21, 2007 Parent entered into
an Agreement and Plan of Merger with FoxHollow Technologies, Inc., a Delaware corporation
(“FoxHollow”), and Foreigner Merger Sub, Inc., a Delaware corporation and a direct wholly owned
subsidiary of Parent (“Merger Sub”), whereby Merger Sub will merge into FoxHollow, with FoxHollow
continuing as the surviving corporation and a direct wholly owned subsidiary of Parent (the
“FoxHollow Merger”). Borrowers have requested that, in accordance with Section 7.3 of the Loan
Agreement, Bank consent to the FoxHollow Merger, and, in reliance on the representations,
warranties and covenants contained herein, Bank hereby consents to such merger, provided that it is
consummated on or before October 31, 2007 (the “Merger Due Date”). This consent does not
constitute a waiver of any of the other terms or provisions of the Loan Agreement, or any other
Loan Documents, or any other agreement, document or instrument providing rights in favor of Bank,
nor does it constitute a consent to any other transaction or event, whether or not similar to the
foregoing, and whether or not related to any of the transactions or events referred to herein.

     3. New Co-Borrower. Borrowers agree to cause the following to occur within thirty days of the
consummation of the FoxHollow Merger:

          a. FoxHollow shall become an additional “Borrower” under the Loan Agreement by executing an
assumption and amendment agreement, in form and substance acceptable to Bank, pursuant to which
FoxHollow assumes and agrees to perform all Obligations under the Loan Documents, and grants Bank a
security interest in all of FoxHollow’s Collateral.

          b. FoxHollow, Borrowers and Guarantors shall execute such documents, and take such actions, as
Bank shall reasonably request, in order that the agreements and other documentation that
effectuates FoxHollow becoming an additional “Borrower” shall be the same as that for the other
Borrowers.

          c. FoxHollow’s organizational documents shall not prohibit or limit FoxHollow becoming a
Borrower, entering into the Loan Agreement or the other Loan Documents, or performing the
Obligations. Without limiting the generality of the foregoing, FoxHollow’s articles of
incorporation or certificate of incorporation, as applicable, shall not contain a provision that
allows FoxHollow to restructure its indebtedness pursuant to state court proceedings.

          d. Bank shall have a first-priority, perfected, security interest in all of the Collateral of
FoxHollow, and such Collateral shall be subject to no security interests or Liens other than
Permitted Liens.

     4. Amendments to Loan Agreement.

          4.1 Section 6.7(b) (Tangible Net Worth Covenant). Section 6.7(b) of the Loan Agreement
requires Borrowers to cause Parent to maintain, on a consolidated basis with respect to Parent and
its Subsidiaries, a Tangible Net Worth of at least the amounts set forth in said Section 6.7(b).
Borrowers and Bank agree that, provided that

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the FoxHollow Merger is consummated on or before the Merger Due Date, (a) Borrowers shall have
no obligation to cause Parent to maintain a minimum Tangible Net Worth for the months of October,
November and December of 2007, and (b) on or before December 31, 2007, Borrowers and Bank shall use
reasonable commercial efforts to negotiate and agree to a modification to the $115,000,000 Tangible
Net Worth requirement contained in Section 6.7(b)(v), to be effective January 1, 2008, provided
that if an amendment setting forth such modification is not fully executed and delivered by
Borrowers and Bank on or before December 31, 2007, then Section 6.7(b)(v) shall continue in effect
as it currently reads without such modification.

          4.2 Section 7.3 (Mergers or Acquisitions). Notwithstanding and without limitation upon
Section 7.3 of the Loan Agreement, FoxHollow shall not merge into any Borrower or Secured Guarantor
unless either (i) the Bank has consented in writing, or (ii) at the time of such merger FoxHollow’s
assets are not subject to any security interest or other Lien, other than a security interest or
Lien in favor of Bank, and FoxHollow is not a defendant in, and has not been threatened in writing
with, any litigation involving a claim against FoxHollow in an amount of $500,000 or greater.

     5. Limitation of Amendments.

          5.1 The consents and amendments set forth herein are effective for the purposes set forth
herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any
other transaction or to any amendment, waiver or modification of any other term or condition of any
Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have
in the future under or in connection with any Loan Document.

          5.2 This Amendment shall be construed in connection with and as part of the Loan Documents and
all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan
Documents, except as herein amended, are hereby ratified and confirmed, shall remain in full force
and effect, and are incorporated herein by reference.

     6. Representations and Warranties. To induce Bank to enter into this Amendment, each Borrower
hereby represents and warrants to Bank as follows:

          6.1 Immediately after giving effect to this Amendment (a) the representations and warranties
contained in the Loan Documents are true, accurate and complete in all material respects as of the
date hereof (except to the extent such representations and warranties relate to an earlier date, in
which case they are true and correct as of such date), and (b) no Event of Default has occurred and
is continuing;

          6.2 Borrower has the power and authority to execute and deliver this Amendment and to perform
its obligations under the Loan Agreement, as amended by this Amendment;

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          6.3 The organizational documents of Borrower previously delivered to Bank remain true,
accurate and complete and have not been amended, supplemented or restated and are and continue to
be in full force and effect;

          6.4 The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, have been duly
authorized;

          6.5 The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not
contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual
restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or
other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d)
the organizational documents of Borrower;

          6.6 The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, do not require any
order, consent, approval, license, authorization or validation of, or filing, recording or
registration with, or exemption by any governmental or public body or authority, or subdivision
thereof, binding on either Borrower, except (i) such filings as shall be required by law to perfect
a security interest in the Collateral of FoxHollow as contemplated by Section 3(d) of this
Amendment, or (ii) as already has been obtained or made; and

          6.7 This Amendment has been duly executed and delivered by Borrower and is the binding
obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or
other similar laws of general application and equitable principles relating to or affecting
creditors’ rights.

     7. Counterparts. This Amendment may be executed in any number of counterparts and all of such
counterparts taken together shall be deemed to constitute one and the same instrument.

     8. Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and
delivery of this Amendment by each party hereto, and (b) Bank’s receipt of the Acknowledgment of
Amendment and Reaffirmation of Guaranty substantially in the form attached hereto as Schedule 1,
duly executed and delivered by each Guarantor named thereon.

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     In Witness Whereof, the parties hereto have caused this Amendment to be duly executed
and delivered as of the date first written above.

	 	 	 	 	 	 	 	 	 
	Borrowers:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	EV3 ENDOVASCULAR, INC.	 	 	 	EV3 INTERNATIONAL, INC.
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ Patrick D. Spangler
	 	 	 	By
	 	/s/ Patrick D. Spangler
	 

	 	 
	 	 	 	 	 	 
	Name:

	 	Patrick D. Spangler
	 	 	 	Name:
	 	Patrick D. Spangler
	Title:

	 	Vice President and
	 	 	 	Title:
	 	Treasurer
	 

	 	Chief Financial Officer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	MICRO THERAPEUTICS, INC.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ Patrick D. Spangler	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name:

	 	Patrick D. Spangler	 	 	 	 	 	 
	Title:

	 	Chief Financial Officer
and Treasurer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Bank:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SILICON VALLEY BANK	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ Jay McNeil	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name:

	 	Jay McNeil	 	 	 	 	 	 
	Title:

	 	Senior Relationship
Manager	 	 	 	 	 	 

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