Document:

Exhibit 10.1

Exhibit
10.1

As amended as of March 9, 2010

LUMINEX CORPORATION

MANAGEMENT INCENTIVE PLAN

BACKGROUND AND OBJECTIVES

The Management Incentive Plan (the “MIP”) has been established by Luminex Corporation (the
“Company”) to encourage and reward successful performance by its senior officers consistent with
the Company’s compensation philosophies and objectives. The MIP provides an annual incentive
compensation opportunity for key executives for achieving important Company financial performance
targets, and project goals and individual performance leadership goals (collectively “CAPP Goals”).
Each year the Compensation Committee of the Luminex Board of Directors (the “Committee”), in
consultation with the Chief Executive Officer (the “CEO”), will establish award opportunities and
goals for determination of potential awards hereunder. The following defines MIP eligibility, the
size of potential award opportunities, performance measurement, form and timing of award payments,
administrative guidelines and definitions for ongoing MIP participants.

ELIGIBILITY

Eligibility for an award under the MIP (an “MIP Award”) will be proposed by the CEO and approved by
the Committee at or near the beginning of each fiscal year (each such year being a “Performance
Period”). Generally, MIP participants (“Participants”) will be selected from key executives who
primarily are responsible for the annual growth and profitability of Luminex. As new officers join
the Company, they may be afforded the opportunity to participate in the MIP in the sole discretion
of the Committee.

 

 

 

AWARD OPPORTUNITIES

Each MIP Participant will be eligible for a payout for each applicable Performance Period if Total
Consolidated Revenue (or such other metric (or metrics) as may be established by the Committee from
year to year) for that year exceeds the threshold amount established by the Committee for such year
(the “Threshold Amount”). Payouts under the MIP will be subject to a maximum payout established by
the Committee for each MIP Participant as a percentage of the MIP Participant’s base salary. Within
that limit, each MIP Participant will be assigned a targeted award opportunity, based on actual
performance achievement described under “Performance Objectives” below and/or other factors deemed
relevant by the Committee.

Each MIP Participant’s base salary earned for such year will be multiplied by the actual MIP award
percentage earned as approved by the Committee to determine the dollar value of the award for that
Performance Period. The award percentage shall be recommended by the CEO and submitted to the
Committee for review and approval. The MIP Award will be paid to each individual officer as soon
as is practical thereafter and in accordance with “Form and Timing of Awards” set forth below. The
Committee has the discretion to determine that no or reduced awards are payable to an MIP
Participant if the Committee determines that an MIP Participant’s conduct during the Performance
Period was inconsistent with the Company’s Code of Conduct or the Participant otherwise materially
breaches any employment agreement or other material Company policy or conduct requirement.

 

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PERFORMANCE OBJECTIVES

Except as otherwise determined by the Committee, the “CAPP” performance objectives shall typically
consist of three elements: Corporate Financial Objectives, Key Project Objectives, and Leadership
Objectives. Within each of the foregoing elements, the Committee may approve
multiple goals or objectives, with individual weightings as approved by the Committee. The MIP
performance objectives and relative weightings will be proposed by the CEO and approved by the
Committee not later than 90 days after the beginning of each fiscal year. The performance
objectives will be subject to such adjustments and exclusions as determined by the Committee upon
the recommendation of the CEO or other factors deemed appropriate by the Committee. MIP objectives
shall be equitably adjusted during the year if a major change occurs in the Company’s capital
structure, e.g., an acquisition or merger.

Except as otherwise determined by the Committee, Corporate Financial Objectives are subject to an
over/underachievement scale with possible payouts of 0% to 200% of the potential “Target” bonus
amount allocated to each such objective based on financial results between specified “Minimum,”
“Target” and “Maximum” levels (as further described below) of the applicable performance targets
calculated on a linear basis, with minimum payouts starting at 50% of the target value for each
goal for minimum threshold performance.

Except as otherwise determined by the Committee, Key Project and Leadership Objectives are not
subject to an overachievement scale, but specified project goals are typically graded 100% for on
time completion, 75% for completed late, 50% for partially complete and 0% for failure to produce
even partial completion, in each case in the subjective judgment of the Committee based, in part,
upon the recommendation of the CEO.

The Committee has established performance thresholds relating to Corporate Financial Objectives in
the following categories:

	 	•	 	Minimum Acceptable — The Luminex performance level below which no incentive
will be paid for the Corporate Financial Objectives portion of the CAPP
objectives, which will be set annually for each of the Corporate Financial
Objectives;

 

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	 	•	 	Target — The Luminex performance level where the actual incentive award equals
the targeted award, which is set individually for each Officer; and

	 
	 	•	 	Maximum — The Luminex performance level where the actual incentive award
exceeds the targeted award by the maximum amount permitted under the MIP, which
will be set annually for each of the Corporate Financial Objectives.

FORM AND TIMING OF AWARDS

MIP Award calculations will be certified and finalized (and the resulting MIP Awards paid) between
January 1 and March 15 of the fiscal year following the close of a Performance Period. All MIP
Awards will be paid in cash in a lump sum unless a written decision to defer an award has been
filed with the MIP administrator pursuant to a plan or other procedures approved by the Committee.
The Committee reserves the discretion to make payments of MIP Awards in shares of the Company’s
common stock, restricted or unrestricted.

ADMINISTRATIVE GUIDELINES 

Subject to applicable law, all amendments, guidelines, procedures, designations, determinations,
interpretations, and other decisions under or with respect to the MIP (including the Recoupment
Policy described below) or any MIP Award, whether before or after the date of grant, shall be
within the sole discretion of the Committee, which may be made at any time and shall be final,
conclusive and binding.

	 	•	 	Employee Termination — To receive an award, a participant must be an employee of the
Company on the day the MIP Award is paid, unless waived by the Committee.

 

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	 	•	 	New Hires — Employees must have a minimum of six months of service to be eligible for
an award, unless waived by the Committee upon the recommendation by the CEO. MIP Awards
for new hires are earned on a pro-rata basis, based on their date of employment unless
waived by the Committee.

	 
	 	•	 	Base Salary Rate — Base salary for MIP Award calculations shall be the actual base
salary earned for the applicable Performance Period.

	 
	 	•	 	Support Documentation — The Luminex Chief Financial Officer shall be responsible for
maintaining all necessary support documentation regarding performance and bonus
calculations under the MIP.

	 
	 	•	 	No Rights to Awards — No employee shall have any claim to be granted any award and
there is no obligation for uniformity of treatment among Participants. The terms and
conditions of awards, if any, need not be the same with respect to each Participant.

BONUS RECOUPMENT POLICY

The Company can recover any incentive compensation awarded or paid pursuant to this MIP based on
(i) achievement of financial results that were subsequently the subject of a restatement, other
than as a result of changes to accounting rules and regulations, or (ii) financial information or
performance metrics subsequently found to be materially inaccurate, in each case regardless of
individual fault. The recovery policy applies to any incentive compensation earned or paid to an
employee pursuant to this MIP at a time when he or she is an employee after the effective date of
the MIP. Subsequent changes in status (including, without limitation, change of title or
responsibilities, retirement or termination of employment) do not affect the Company’s rights to
recover compensation under the policy. The Committee will administer this policy and exercise its
discretion and business judgment in the fair application of this policy based on the facts and
circumstances as it deems relevant in its sole discretion. More specifically, the Committee shall

 

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determine in its discretion any appropriate amounts to recoup, and the timing and form of
recoupment; provided that any recoupment shall not exceed the portion of any applicable bonus paid
hereunder that is in excess of the amount of performance-based or incentive compensation that would
have been paid or granted based on the actual, restated financial statements or actual level of the
applicable financial or performance metrics as determined by the Committee in its sole discretion.

For avoidance of doubt, the Company may offset the amounts of any such required recoupment against
any amounts otherwise owed by a participant to the Company, including by the cancellation of
unvested equity awards, in each case as determined by the Committee in its sole discretion.

If any restatement of the Company’s financial results indicates that the Company should have made
higher performance-based or incentive-based payments than those actually made under the MIP for a
period affected by the restatement, then the Committee shall have the discretion to cause the
Company to make appropriate incremental payments to effected participants then-currently employed
by the Company. The Committee will determine, in its sole discretion, the amount, form and timing
of any such incremental payments, which shall be no more than the difference between the amount of
performance-based or incentive compensation that was paid or awarded and the amount that would have
been paid or granted based on the actual, restated financial statements.

 

6Exhibit 10.2

Exhibit 10.2

LUMINEX CORPORATION

2010 LONG TERM INCENTIVE PLAN

Purpose and Administration of the Plan

The 2010 Long-Term Incentive Plan (the “LTIP”) has been established by Luminex Corporation (the
“Company”) to encourage and reward superior long-term performance from specified key executive
officers. Awards under the LTIP shall be treated as Performance Awards under the Luminex
Corporation Amended and Restated 2006 Equity Incentive Plan (as the same may be amended from time
to time, the “Plan”). Subject to applicable law, all designations, determinations,
interpretations, and other decisions under or with respect to the LTIP or any award shall be within
the sole discretion of the Compensation Committee (the “Committee”), may be made at any time and
shall be final, conclusive and binding upon all persons. Designations, determinations,
interpretations, and other decisions made by the Committee with respect to the LTIP or any award
hereunder need not be uniform and may be made selectively among Participants (as defined below),
whether or not such Participants are similarly situated. All capitalized terms not otherwise
defined herein shall have the meanings ascribed to them in the Plan.

Participation

The Committee shall have the sole and absolute discretion to determine those officers of the
Company who shall be eligible to receive an award pursuant to the LTIP (each, a “Participant”).

Incentive Calculation and Payment of Awards

The Committee will make awards pursuant to the LTIP as set forth on Schedule A hereto, on
such terms as the Committee may prescribe based on the performance criteria set forth on
Schedule A hereto and such other factors as it may deem appropriate. The period over which
the performance shall be evaluated is the period beginning January 1, 2010 and ending on December
31, 2012 (the “Performance Period”). The Committee shall determine whether and to what extent each
performance goal has been met at the end of the Performance Period.

Awards pursuant to the LTIP will be paid in Restricted Share Units issued as follows: (a) upon the
Effective Date (or such later date as determined by the Committee and/or required by the Company’s
equity award policies), a number of Restricted Share Units shall be issued to each Participant
equal to the number of Shares such Participant would earn if “Maximum Performance” in accordance
with Schedule A were achieved with respect to each performance goal (calculated in the
manner specified on Schedule A), and (b) following the close of the Performance Period,
only the number of Restricted Share Units that equate to the actual performance, as determined by
the Committee pursuant to Schedule A, shall be eligible to vest (the “Eligible Units”) and
settle as Shares as further set forth in the applicable Award Agreement for such Performance Award.
The Committee shall make its determination, and the resulting compensation shall be paid, under
the LTIP after the close of the Performance Period by March 15 of the year following the close of
the Performance Period. The form of Restricted Share Unit Award Agreement is attached hereto as
Schedule B. Except as set forth in the applicable Award Agreement or as the Committee may
otherwise determine in its sole and absolute discretion, termination of a Participant’s employment
prior to the end of the Performance Period will result in the forfeiture of the Performance Award
by the Participant, and no payments shall be made with respect thereto.

 

 

 

This LTIP is not a “qualified” plan for federal income tax purposes, and any payments are subject
to applicable tax withholding requirements.

Adjustments for Unusual or Nonrecurring Events

In addition to any adjustments enumerated in the definition of the performance goals set forth on
Schedule A hereto, the Committee is hereby authorized to make adjustments in the terms and
conditions of, and the criteria included in, awards in recognition of unusual or nonrecurring
events affecting any Participant, the Company, or any subsidiary or affiliate, or the financial
statements of the Company or of any subsidiary or affiliate; in the event of changes in applicable
laws, regulations or accounting principles; or in the event the Committee determines that such
adjustments are appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the LTIP. The Committee is also authorized
to adjust performance targets or awards to avoid unwarranted penalties or windfalls.
Notwithstanding the foregoing, the Committee shall not have the discretion to increase any Award
payable to any Covered Officer in excess of that provided by the application of the terms and
conditions of Schedule A attached hereto.

Miscellaneous

No Right to Employment

The grant of an award shall not be construed as giving a Participant the right to be retained in
the employ of the Company or any subsidiary.

No Rights to Awards; No Trust or Fund Created

No person shall have any claim to be granted any award and there is no obligation for uniformity of
treatment among Participants. The terms and conditions of awards, if any, need not be the same
with respect to each Participant. The Company reserves the right to terminate the LTIP at any time
in the Company’s sole discretion. Neither the LTIP nor any award hereunder shall create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship between the
Company or any subsidiary or affiliate and a Participant or any other person.

Interpretation and Governing Law

This LTIP shall be governed by and interpreted and construed in accordance with the internal laws
of the State of Delaware, without reference to principles of conflicts or choices of laws.

Recoupment Policy

The Company can terminate, rescind and/or recover any Restricted Share Units that vested pursuant
to this LTIP based on (i) achievement of financial results that were subsequently the subject of a
restatement, other than as a result of changes to accounting rules and regulations, or (ii)
financial information or performance metrics subsequently found to be materially inaccurate, in
each case regardless of individual fault. The recovery policy applies to any Restricted Share Units
vested pursuant to this LTIP at a time when a Participant is an employee after the effective date
of the LTIP. Subsequent changes in status (including, without limitation, change of title or
responsibilities, retirement or termination of employment) do not affect the Company’s rights to
recover awards under the policy. The Committee will administer this policy and exercise its
discretion and business judgment in the fair application of this policy based on the facts and

 

 

 

circumstances as it deems relevant in its sole discretion. More specifically, the Committee shall
determine in its discretion any appropriate amounts to recoup, and the timing and form of
recoupment; provided that any recoupment shall not exceed that number of Restricted Share Units
equal to the difference between the number of Restricted Share Units that originally were deemed
vested over the amount that would have vested based on the actual, restated financial statements or
actual level of the applicable financial or performance metrics as determined by the Committee in
its sole discretion. If Executive no longer holds the vested Restricted Share Units subject to
recoupment hereunder, Executive shall pay to the Company the fair market value of the Common Stock
underlying the Restricted Share Units that would have otherwise been recouped.

For avoidance of doubt, the Company may offset the amounts of any such required recoupment against
any amounts otherwise owed by a Participant to the Company, including by the cancellation of
unvested equity awards, in each case as determined by the Committee in its sole discretion.

If any restatement of the Company’s financial results indicates that the Company should have
confirmed higher performance-based vesting than that actually made under the LTIP for a period
affected by the restatement, then the Committee shall have the discretion to cause the Company to
make appropriate incremental vesting to the applicable awards hereunder for effected Participants
then-currently employed by the Company. The Committee will determine, in its sole discretion, the
amount, form and timing of any such incremental vesting, which shall be no more than that number of
Restricted Share Units equal to the difference between the amount of Restricted Share Units that
originally were deemed vested and the amount of Restricted Share Units that would have been vested
based on the actual, restated financial statements.

Effective Date

This LTIP shall be effective as of March 9, 2010 (the “Effective Date”).

 

 

 

Schedule A

2010 LTIP Performance Goal Weighting:

	 	 	 	 	 	 	 	 	 
	Participant	 	Share Price	 	 	OCF/S	 
	CEO
	 	 	50	%	 	 	50	%
	CFO
	 	 	50	%	 	 	50	%

2010 LTIP Performance Targets:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Metric	 	Threshold Performance	 	 	Target Performance	 	 	Maximum Performance	 
	Share Price1
	 	$	22.22	 	 	$	25.25	 	 	$	40.09	 
	OCF/S2
	 	$	0.212	 	 	$	0.241	 	 	$	0.382	 

			
	1 	 	For purposes of calculating performance, Share Price means the average of the Fair
Market Value of a Company Share for the 20 trading days immediately preceding the end of the
Performance Period (which 20 trading days shall include the last day of the Performance Period if
the same is a trading day). In determining whether the Share Price targets have been met, the
Committee shall adjust the targets to appropriately take into account any dividend or other
distribution (whether in the form of cash, Shares, other securities or other property, and other
than a normal cash dividend), recapitalization, stock split, reverse stock split, reorganization,
merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other
securities of the Company, issuance of securities or warrants or other rights to purchase Shares or
other securities of the Company, or other similar corporate transaction or event that affects the
Shares (collectively the “Share Events”).

	 
	2	 	 For purposes of calculating performance, OCF/S means the Company’s average total
operating cash flows per diluted share for the 4 fiscal quarters ended December 31, 2012. “Total
operating cash flows” means the net cash provided by operating activities as reflected on the
Company’s financial statements for the 12 months ended December 31, 2012 included in its Annual
Report on Form 10-K for the period ended December 31, 2012. The diluted shares will be equal to
the “shares used in computing net income (loss) per share, diluted” for the 12 months ended
December 31, 2012 as reflected in the Company’s financial statements. In computing total operating
cash flows, diluted shares and OCF/S, (i) the Committee shall appropriately take into account any
Share Events and (ii) the effects of losses or expenses from the following shall be excluded: (a)
litigation (or claim) judgments or settlements, (b) acquisition costs required to be expensed
currently per FAS 141(R), (c) securitizing of accounts receivable, and (d) any extraordinary
non-recurring items as described in Accounting Principles Board Opinion No. 30 and/or in
management’s discussion and analysis of financial condition and results of operations appearing in
the Company’s annual report to shareholders for the applicable year, all as reasonably determined
in good faith by the Committee. In the event of a significant acquisition or disposition by the
Company during the Performance Period, total operating cash flows and OCF/S targets for various
levels of performance shall be proportionately adjusted by the
Committee.

 

 

2010 LTIP Participant Opportunities:

Each Participant in the LTIP is assigned a target award amount expressed in dollars (the “Target
Amount”). The potential payout amounts are based on Threshold, Target and Maximum levels of payout
based on the aggregate weighted achievement of the corresponding performance targets for the LTIP
Participants as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Participant	 	Target Amount	 	 	Threshold	 	 	Target	 	 	Maximum	 
	CEO
	 	$	800,000	 	 	 	60	%	 	 	100	%	 	 	275	%
	CFO
	 	$	300,000	 	 	 	60	%	 	 	100	%	 	 	275	%

The potential payout amounts are expressed above as a percentage of the applicable Target Amount
and the number of shares eligible to be vested will be determined by dividing the specified amount
of the Target Amount by the closing price of the Company’s common stock as reported by the Nasdaq
Stock Market on the grant date, in each case at the applicable weighted aggregate performance
level. Payouts between Threshold and Maximum for Participants shall be calculated by the Committee
in its sole discretion using straight-line interpolation. The finally determined weighted
aggregate share payouts shall be deemed to be the Eligible Units under the LTIP.

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