Document:

ex105

 1             Exhibit 10.5      OWENS & MINOR, INC.   20__ EXECUTIVE INCENTIVE PROGRAM              1.    PURPOSE                  The purpose of the Owens & Minor, Inc. 20__ Executive Incentive Program (the “Program”) is to   permit Owens & Minor, Inc. and its Subsidiaries (the “Company”) to provide awards of annual incentive   compensation which satisfy the requirements for “performance-based compensation” under   Section 162(m) of the Internal Revenue Code.  This Program evidences the terms and conditions of   “Incentive Awards” granted under and pursuant to the terms of the Owens & Minor, Inc. 2005 Stock   Incentive Plan and/or any prior and successor stock plans adopted or assumed by the Company (“Stock   Plan”).  This Program and the Awards granted hereunder shall be administered in accordance with the   terms of the Stock Plan.              2.    DEFINITIONS                  "20__ COMPANY ADJUSTED DILUTED EPS" shall mean, for the Performance Period, the   Company's net income per diluted common share as presented in the Company's consolidated audited   income statement for the Performance Period, adjusted to eliminate or exclude the after-tax effects of   unusual or non-recurring items, including but not limited to, the effect of accounting and/or tax changes;    tangible and intangible asset impairment charges; fees, expenses and charges associated with debt and/or   equity financing transactions,, merger and acquisition activity (including the purchase or sale of a   business unit or its assets) and exit and realignment activities; gains/losses from asset sales not made in   the ordinary course of business; retirement plan gains/losses; and gains/losses or charges associated with   material litigation, regulatory, tax or insurance settlements.  Adjustments to the Company’s net income   per diluted common share for purposes of determining any Award earned hereunder shall be taken into   account only to the extent that they are separately identified or quantified in the Company’s consolidated   audited financial statements, the notes to the consolidated financial statements, “Management’s   Discussion and Analysis” in the Company’s 20__ Annual Report on Form 10-K or in other Company   filings with the Securities and Exchange Commission.                “20__ COMPANY NET REVENUE” shall mean, for the Performance Period, the Company’s Net   Revenue as reported in the Company’s consolidated income statement for the Performance Period,   adjusted to include (to the extent not already included) any revenue relating to unusual or non-recurring   items, including but not limited to, merger and acquisition activity; revenue associated with material   litigation or insurance settlements.               "AWARD" shall mean an Incentive Award (as defined under the Stock Plan) that entitles the   Participant to a cash payment in accordance with, and subject to, the terms of this Program.              "BOARD" shall mean the Board of Directors of the Company.              "CODE" shall mean the Internal Revenue Code of 1986, as amended.              "COMMITTEE" shall mean the Compensation & Benefits Committee of the Board or any   subcommittee thereof which meets the requirements of Section 162(m)(4)(C) of the Code.              "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as amended.        

 

 2           "PARTICIPANT" shall mean each individual serving in one of the positions of the Company   identified in Annex A hereto.              "PERFORMANCE PERIOD" shall mean the Company's 20__ fiscal year.             “PERFORMANCE GOAL” shall mean each of 20__ Company Net Revenue, 20__ Company   Adjusted Diluted EPS, and the Qualitative Performance Factor.             "PROGRAM" shall mean this Owens & Minor, Inc. 20__ Executive Incentive Program, as amended   from time to time.             “QUALITATIVE PERFORMANCE FACTOR” shall mean, with respect to each Participant, an   assessment of his or her job performance based on qualitative measurements such as strength of   leadership, goal implementation, strategic focus, overall management skills and other measurements as   determined by the Committee in its sole discretion.              "STOCK PLAN" shall mean the Owens & Minor, Inc. 2005 Stock Incentive Plan and/or any prior   and successor stock plans adopted or assumed by the Company.              "SUBSIDIARY" shall mean any entity that is directly or indirectly controlled by the Company or   any entity, in which the Company has at least a 50% equity interest.              3.    ADMINISTRATION                 (a)  Subject to subsection (b) below, the Program shall be administered by the Compensation   Committee, which shall have full authority to interpret and amend the Program, to establish rules and   regulations relating to the operation of the Program, to select Participants, to determine the maximum   Awards and the amounts of any Awards and to make all determinations and take all other actions   necessary or appropriate for the proper administration of the Program. Before any payments are made   under the Program, the Committee shall certify in writing the 20__ Performance Goals that have been   achieved.  The Committee's interpretation of the Program, and all actions taken within the scope of its   authority, shall be final and binding on the Company, its stockholders and Participants and their   respective successors and assigns.             (b)  This Program is intended to comply both by its terms and in its operation with Sections 162(m)   and other provisions of the Code in order to make it as tax-efficient for the Company as possible.    Accordingly, any modifications to the Performance Goals that would increase the amount of any Award   shall be made by the Committee prior to March 31, 20__ and the identification of any unusual, non-   recurring or discretionary adjustments to the 20__ Performance Goals shall be made by the Committee on   or before the last day of the Performance Period.              4.    DETERMINATION OF AWARDS                  (a)  Each Participant is hereby granted an Award that, contingent upon achievement of the   Performance Goals, will entitle the Participant to receive a cash payment calculated as provided in Annex   A hereto.  Set forth on Annex A hereto are the following:  (i) the goal levels established for each   Performance Goal, (ii) the weight attributable to each Performance Goal and (iii) the award opportunity   for each Participant.  Following the end of the Performance Period, the Committee shall certify any   achievement of the Performance Goals as specified herein.  Notwithstanding the foregoing, the   Committee may make any adjustments in its discretion that would reduce the amount paid for any Award   earned hereunder.      

 

 3              (b)  If 20__ Company Adjusted Diluted EPS is not at least $____ as set forth in Annex A, no   payments shall be made under this Program.                5.    PAYMENT OF AWARDS               Except as provided in the Stock Plan, in the event of a Change in Control (as defined under the   Stock Plan), a Participant will receive all or part of the amount payable under an Award, only to the   extent that the Committee certifies that the applicable Performance Goals have been achieved.  In   addition, a Participant will receive the amount payable under an Award only if the Participant is   employed on the last day of the Performance Period; provided, however, that the Committee, in its   discretion, may determine to make a pro rata payment of an Award for a Participant who is not employed   on the last day of the Performance Period in accordance with the Company’s executive severance policy.    All Awards earned shall be paid in cash in a lump sum no later than March 15, 20__.             6.    RECOUPMENT POLICY        Notwithstanding any other provision in this Agreement to the contrary, any Award under this   Program is subject to recoupment by the Company in accordance with the Company’s Policy on Recoupment   of Executive Incentive Compensation in effect on the date of this Agreement, as such policy is interpreted   and applied by the Company’s board of directors.               7.    OTHER PROVISIONS                  (a)   Neither the establishment of this Program, nor any action taken hereunder, shall be construed as   giving any Participant any right to be retained in the employ of the Company. Nothing contained in this   Program shall limit the ability of the Company to make payments or awards to Participants under any   other plan, agreement or arrangement.              (b)  The rights and benefits of a Participant hereunder are personal to the Participant and, except for   payments made following a Participant's death, shall not be subject to any voluntary or involuntary   alienation, assignment, pledge, transfer, encumbrance, attachment, garnishment or other disposition.              (c)  Awards under this Program shall not constitute compensation for the purpose of determining   participation or benefits under any other plan of the Company unless specifically included as   compensation in such plan.              (d)  The Company shall have the right to deduct from Awards any taxes or other amounts required to   be withheld by law.              (e)  All questions pertaining to the construction, regulation, validity and effect of the provisions of   the Program shall be determined in accordance with the laws of the Commonwealth of Virginia without   regard to principles of conflict of laws.              (f)    If any provision of this Program would cause Awards not to constitute "qualified performance-   based compensation" under Section 162(m) of the Code, that provision shall be severed from, and shall be   deemed not to be a part of, the Program, but the other provisions hereof shall remain in full force and   effect.              (g)  No member of the Committee or the Board, and no officer, employee or agent of the Company   shall be liable for any act or action hereunder, whether of commission or omission, taken by any other     

 

 4   member, or by any officer, agent, or employee, or, except in circumstances involving bad faith, for   anything done or omitted to be done in the administration of the Program.                  8.    EFFECTIVE DATE                  The Program shall be effective as of January 1, 20__.     

 

 5              Annex A   OWENS & MINOR 20__ EXECUTIVE INCENTIVE PROGRAM      AWARD OPPORTUNITY   Position      Cash Target as a    Percentage of Base Salary   President and CEO 125%   Executive Vice President (Grade X2) 75%   Senior Vice President (Grade X3)  50%   Senior Vice President (Grade X4) 40%   Vice President (Grade X5) 35%      GOALS AND WEIGHTS   Position   20__ Company   Net Revenue   20__ Company   Adjusted Diluted   Earnings Per Share   (EPS)    20__ Qualitative   Performance   Factor*    All above positions  __%      __% __%   *As a condition to any award being made, 20__ Company Adjusted Diluted EPS must be at least $____      GOAL LEVELS   (1) If a 20__ Performance Goal is achieved at a level between Threshold and Target or Target and Maximum,   then the amount of the Award will be determined based on a straight line interpolation of achievement levels   between the Threshold and Target or the Target and Maximum, as applicable. Achievement levels of the   Qualitative Performance Factor shall be determined for each Participant by the Committee in its sole   discretion.  As a condition to any award being made, 20__ Company Adjusted Diluted EPS must be at least   $____.         Achievement Level   (1)   20__ Company   Net Revenue   (thousands)   20__ Company   Adjusted Diluted   Earnings Per   Share (EPS)    Qualitative   Performance Factor      200% (Maximum)      $___________         $____   Based on qualitative   assessment of   performance by   Committee      100% (Target)      $___________         $____   Based on qualitative   assessment of   performance by   Committee      25% (Threshold)      $___________      $____   Based on qualitative   assessment of   performance by   Committeeex106

                           Exhibit 10.6    OWENS & MINOR, INC.   Director Restricted Stock Agreement              THIS AGREEMENT, dated the ____ day of _____, 20__, between OWENS & MINOR, INC., a   Virginia corporation (the "Company"), and ___________________("Participant"), is made pursuant   and subject to the provisions of the Company's 2015 Stock Incentive Plan (the "Plan"). All   capitalized terms used herein that are not otherwise defined shall have the same meaning given to   them in the Plan.      W I T N E S S E T H:       1.  Restricted Stock Grant.  Pursuant to the provisions of the Plan, on ___________,   20__ (the “Date of Grant”), the Company granted to Participant, subject to the terms and conditions   of the Plan and subject further to the terms and conditions herein set forth, a Stock Award of   ________ shares of Common Stock (the “Restricted Stock”).       2.  Terms and conditions. The shares of Restricted Stock evidenced hereby are subject   to the following terms and conditions:       (a) Restricted Period.  Until the first anniversary of the Date of Grant (the “Restricted   Period”) or the lapse of restrictions as provided in subsection 2(d) hereof, the Restricted Stock   shall be subject to the following restrictions:         (i) Participant shall not be entitled to receive the certificate or certificates   evidencing the Restricted Stock; and        (ii) Shares of Restricted Stock may not be sold, transferred, assigned, pledged,   conveyed, hypothecated or otherwise disposed of; and        (iii) Shares of Restricted Stock may be forfeited as provided in subsection 2(d)   hereof.      Notwithstanding the foregoing, Participant shall be entitled to vote the shares of Restricted Stock   and receive dividends thereon while the Restricted Stock is outstanding.  Any stock dividends or   other shares of Company stock or other property issued in respect of Restricted Stock, including   without limitation, shares issued in connection with stock splits and recapitalizations, will be   subject to the same restrictions applicable to the Restricted Stock.         (b)  Custody of Shares of Restricted Stock.  Certificates representing the shares of   Restricted Stock shall be issued in Participant’s name but shall be held by the Company (or its   transfer agent) during the Restricted Period.  The Company’s Secretary and its General Counsel   shall serve as attorney-in-fact for Participant during the Restricted Period with full power and     

 

authority in Participant’s name to assign and convey to the Company any shares of Restricted   Stock that Participant forfeits under subsection 2(d) hereof.  Each certificate representing shares   of Restricted Stock may bear a legend referring to the risk of forfeiture of the shares and stating   that such shares are nontransferable until all restrictions have been satisfied and the legend has   been removed.       (c)  Distribution of Restricted Stock.  If Participant remains a member of the Board of   Directors of the Company during the entire Restricted Period and otherwise does not forfeit such   shares pursuant to subsection 2(d) hereof, all restrictions applicable to the shares of Restricted   Stock shall lapse upon expiration of the Restricted Period and a certificate or certificates   representing the shares of Common Stock that were granted to Participant in the form of shares   of Restricted Stock shall be delivered to Participant.       (d)  Lapse of Restrictions.        (i) Death.  If Participant’s membership on the Board of Directors of the Company is   terminated before the expiration of the Restricted Period by reason of   Participant’s death, all restrictions applicable to the shares of Restricted Stock   shall immediately lapse on the date of Participant’s death and the certificate or   certificates representing the shares of Common Stock shall be transferred in   accordance with a beneficiary designation form provided by the Company and   signed by the Participant and filed with the Company or, in the absence of such a   beneficiary designation form, delivered to Participant’s estate.        (ii) Termination of Membership on the Board of Directors of the Company.  Except   as provided in subsection 2(d)(i) above, if Participant resigns or otherwise ceases   to be a member of the Board of Directors of the Company (whether voluntary or   involuntary) before the expiration of the Restricted Period, all restrictions on a pro   rata number of shares of Restricted Stock shall lapse and any remaining shares   shall be forfeited. The “pro rata number” shall be the number of shares of   Restricted Stock multiplied by a fraction, the numerator of which is the number of   months (including a fractional month) of Participant’s service as a member of the   Board of Directors after the Date of Grant and the denominator of which is 12.    The certificate or certificates representing the shares of Common Stock upon   which the restrictions have lapsed shall be delivered to Participant.       (iii) Change in Control.        (a) If, upon a Change in Control, (i) the Restricted Stock is assumed by, or a   substitute award granted by, the surviving entity (together with its Related   Entities, the “Surviving Entity”) in the Change in Control (such assumed or   substituted award to be of the same type of award as this Restricted Stock with a   value as of the Control Change Date substantially equal to the value of this   Restricted Stock) and (ii) Participant is not elected a member of the Surviving   Entity’s board of directors as of the Control Change Date (or does not continue   to serve as a member of the Surviving Entity’s board of directors for at least 12     

 

consecutive months), all restrictions applicable to the shares of Restricted Stock   shall immediately lapse on the Control Change Date (or the date Participant   ceases to serve on the Surviving Entity’s board of directors if less than 12   consecutive months) and the certificate or certificates representing the shares of   Common Stock upon which the restrictions have lapsed shall be delivered to   Participant.        (b) If, upon a Change in Control, the Restricted Stock is not assumed by, or a   substitute award granted by, the Surviving Entity in the Change in Control as   provided in subsection 2(d)(iii)(a) above, all restrictions applicable to the   shares of Restricted Stock shall immediately lapse on the Control Change   Date and the certificate or certificates representing the shares of Common   Stock upon which the restrictions have lapsed shall be delivered to   Participant.       3.  Governing Law.  This Agreement shall be governed by the laws of the   Commonwealth of Virginia.       4.  Change in Capital Structure.  The terms of this award shall be adjusted as the   Committee determines is equitably required in the event the Company effects one or more stock   dividends, stock split-ups, subdivisions or consolidations of shares or other similar changes in   capitalization.       5.  Conflicts.  In the event of any conflict between the provisions of the Plan as in effect   on the date hereof and the provisions of this Agreement, the provisions of the Plan shall govern. All   references herein to the Plan shall mean the Plan as in effect on the date hereof.       6.  Participant Bound by Plan.  Participant hereby acknowledges receipt of a copy of the   Plan and agrees to be bound by all the terms and provisions thereof.       7.  Binding Effect.  Subject to the limitations stated above and in the Plan, this   Agreement shall be binding upon and inure to the benefit of the legatees, distributees and personal   representatives of Participant and the successors of the Company.       IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by   a duly authorized officer and Participant has affixed his or her signature hereto.      OWENS & MINOR, INC. PARTICIPANT       By:  By: _________________________________        [Name]           [Name]         [Title]

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