Document:

Exhibit

Exhibit 10.16
MIMEDX GROUP, INC.

2016 EQUITY AND CASH INCENTIVE PLAN
Non-Employee Director Restricted Stock Unit Agreement    
THIS RESTRICTED STOCK UNIT AGREEMENT (this "Agreement") dated as of the ___ day of                 , 20___ (the “Grant Date”), between MiMedx Group, Inc. (the "Company") and _________________ (the "Participant"), is made pursuant and subject to the provisions of the Company's 2016 Equity and Cash Incentive Plan (the "Plan"), a copy of which is attached hereto. All terms used herein that are defined in the Plan shall have the same meaning given them in the Plan.
1.Grant of Restricted Stock Units. 
(a)    Pursuant to the Plan, the Company, on the Grant Date granted to the Participant, subject to the terms and conditions of the Plan and subject further to the terms and conditions set forth herein, this Restricted Stock Unit Award with a value of $_____ (the “Award Value”).
(b)    The number of restricted stock units (“RSUs”) shall be determined by dividing the Award Value by the closing stock price of the Company on the Determination Date.
(c)    The “Determination Date” shall mean the earlier of (i) the Vesting Date, or (iii) the date that is 30 calendar days following the date on which the Company has both (x) filed with the United States Securities and Exchange Commission its audited financial statements for the fiscal year ending December 31, 2019, and (y) has become current with all other filing requirements of the SEC or has been excused therefrom.  If the Determination Date is the Vesting Date, the determination of the number of RSUs shall be deemed to have occurred immediately prior to their vesting and settlement. 
(d)    Each RSU represents the right to receive one share of Common Stock (a "Share").  The RSUs will vest as set forth in Section 2 below and, upon vesting, will be settled as set forth in Section 3 below.
2.    Vesting of the RSUs.  Subject to earlier expiration, termination or vesting as provided herein, the RSUs will become vested as follows:
(a)    Time-Based Vesting.  The RSUs will become vested in full upon the earlier to occur of (i) the first anniversary of the Date of Grant, and (ii) the [YEAR] annual meeting of the Company’s shareholders (such date upon which the RSUs vest in full, the “Vesting Date”), provided the Participant has been continuously providing services as a non-employee director of the Company from the Date of Grant until such Vesting Date. 
(b)    Change in Control.  Notwithstanding the foregoing, upon the occurrence of a Change in Control, the RSUs shall become fully vested at the time of the Change in Control, provided the Participant has been continuously providing services as a non-employee director of the Company from the Date of Grant until the time of the Change in Control.  For purposes of this Agreement, “Vesting Date” shall be deemed to include the date upon which a Change in Control occurs.
(c)    Death and Disability.  Additionally, if the Participant's service as a non-employee director of the Company is terminated on account of the Participant's death or Disability, the RSUs shall become fully vested upon termination of the Participant's service as a non-employee director of the Company on account of the Participant's death or Disability.  For purposes of this Agreement, “Vesting Date” shall be deemed to include the date of termination of the Participant’s service as a non-employee director of the Company on account of the Participant’s death or Disability.

Non-Employee Director

3.    Settlement of RSUs.  
(a)    Except as otherwise required by applicable law or as set forth below or in the Plan, the Company shall cause one Share to be issued to Participant for each RSU that vests upon an applicable Vesting Date, with such Shares to be delivered to Participant within thirty (30) days of such Vesting Date.
(b)    Notwithstanding anything herein to the contrary, in the event that (i) the Company’s shareholders have not approved an amendment to the Plan increasing the Maximum Aggregate Number of Shares issuable under the Plan from the level in effect as of the Date of Grant by the time of an applicable Vesting Date or (ii) the Company is otherwise unable to settle any vested RSUs in Shares, the Company shall cause any RSUs that vest upon such applicable Vesting Date to be settled in cash by the delivery to Participant of a cash payment equal to the aggregate fair market value of the Shares represented by the RSUs as soon as administratively practicable after such vesting date. The value of Shares shall be equal to the closing price of the Company’s Stock on the applicable vesting date.
4.    Non-Transferability of the RSUs; Securities Law Compliance.  
(a)    Transfer Restrictions.  Participant shall not assign or transfer any RSUs other than by will or the laws of descent and distribution.  No right or interest of Participant or any transferee in the RSUs shall be subject to any lien or any obligation or liability of the Participant or any transferee.
(b)    Investment Intent. Participant represents and warrants to the Company that the Shares that Participant may acquire in respect of the RSUs would be acquired only for investment and without any present intention to sell or distribute such Shares.
(c)    Securities Law Compliance. Participant acknowledges that neither the grant of these RSUs nor the delivery of Shares, if any, upon the vesting of any RSUs has been or will be registered under the Securities Act of 1933, as amended.  Notwithstanding any other provision of this Agreement or the Plan, the Participant may not sell or otherwise transfer any Shares acquired in respect of the RSUs unless the sale of such Shares is registered under the Securities Act of 1933, as amended, or unless an exemption from such registration requirement exists and the Participant provides a prior opinion of counsel acceptable to the Company as to the existence of such exemption.
(d)    Legend. Participant understands and agrees that the certificate representing any Shares acquired in respect of the RSUs shall bear a restrictive legend as follows: “The shares represented by this certificate have not been registered under the Securities Act of 1933, as amended. The shares have been acquired for investment and may not be offered, sold or otherwise transferred in the absence of an effective registration statement with respect to the shares or an exemption from the registration requirement of said act that is then applicable to the shares, as to which a prior opinion of counsel acceptable to the issuer or transfer agent may be required.”
(e)    Delivery of Shares. The Company may postpone the delivery of any Shares issuable to Participant in respect of the RSUs for so long as the Company determines to be necessary or advisable to satisfy the following: (1) compliance of such Shares with any applicable securities law requirements; (2) compliance with any requests for representations; and (3) receipt of proof satisfactory to the Company that a person seeking such Shares on the Participant's behalf upon the Participant's Disability or upon the Participant's estate's behalf after the death of the Participant, is appropriately authorized. Notwithstanding any other provision of the Plan or any agreement entered into by the Company pursuant to the Plan, the Company shall not be obligated, and shall have no liability for failure, to issue or deliver any Shares under the Plan unless such issuance or delivery would comply with applicable state and federal securities laws, with such compliance determined by the Company in consultation with its legal counsel.
(f)    Stock Holding Requirements.  Notwithstanding any other provision of this Agreement, the Shares that may be acquired by Participant in respect of the RSUs may not be sold, transferred or otherwise disposed of until the level of ownership provided in the Company’s Stock Ownership Guidelines is met, to the extent applicable to the Participant.  All Shares acquired hereunder (“net” any Shares deducted for withholding) shall be subject to the terms and conditions of the Company’s Stock Ownership Guidelines, as they may be amended from time to time.

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5.    Forfeiture of the RSUs.  RSUs that are not vested pursuant to Sections 2(a), (b) or (c) as of the date of termination of Participant’s service as a non-employee director of the Company will be forfeited automatically at the close of business on that date (or immediately upon notice of termination for Cause).  In no event may the RSUs become vested, in whole or in part, after forfeiture pursuant to this Section 5.
6.    Agreement to Terms of the Plan and this Agreement.  The Participant has received a copy of the Plan, has read and understands the terms of the Plan and this Agreement, and agrees to be bound by their terms and conditions.  All decisions and interpretations made by the Company or the Committee with regard to any question arising under this Agreement will be binding and conclusive on the Company and Participant and any other person who has any rights under this Agreement.
7.    Tax Consequences.  The Participant acknowledges (i) that there may be adverse tax consequences upon acquisition or disposition of the Shares or, if applicable, cash payment that may be received upon vesting of the RSUs and (ii) that Participant should consult a tax adviser prior to such acquisition or disposition.  The Participant is solely responsible for determining the tax consequences of the Restricted Stock Unit Award and for satisfying the Participant’s tax obligations with respect to the Restricted Stock Unit Award (including, but not limited to, any income or excise tax as resulting from the application of Code Sections 409A or 4999 or related interest and penalties), and the Company and its Affiliates shall not be liable if this grant is subject to Code Sections 409A, 280G or 4999.    
8.    Fractional Shares.  Fractional Shares shall not be issuable hereunder, and when any provision hereof may entitle the Participant to a fractional Share such fractional Share shall be disregarded.
9.    Change in Capital Structure.  The RSUs shall be adjusted in accordance with the terms and conditions of the Plan as the Committee determines is equitably required in the event the Company effects one or more stock dividends, stock splits, subdivisions or consolidations of shares or other similar changes in capitalization.
10.    Notice.  Any notice or other communication given pursuant to this Agreement, or in any way with respect to the RSUs, shall be in writing and shall be personally delivered or mailed by United States registered or certified mail, postage prepaid, return receipt requested, to the following addresses:
If to the Company:    MiMedx Group, Inc.
1775 West Oak Commons Ct. NE
Marietta, Georgia 30062
Attn: General Counsel

If to the Participant:    
_____________________________
_____________________________
_____________________________

11.    Shareholder Rights.  Except as provided below, Participant shall have no rights as a shareholder of the Company with respect to Shares underlying the RSUs unless and until Shares are delivered to Participant in respect of such RSUs upon vesting.  Notwithstanding the above, if dividends are paid on Shares represented by the RSUs that have not yet either vested or been forfeited:  
(a)    If such dividends are cash dividends, the Company shall accumulate amounts equivalent to the amount of such dividends and pay to Participant such amount upon distribution of the underlying Shares (or cash payment in respect of such Shares, if applicable) to Participant in accordance with this Agreement; and
(b)    If such dividends are Share dividends, the Company shall credit Participant with a number of additional RSUs equal to the number of dividend Shares that would have been paid to Participant if Participant’s RSUs had been Shares, with such additional RSUs being subject to the same terms and conditions as the RSUs to which such dividend credits relate (including with respect to vesting and settlement).

3

For the avoidance of doubt, if a Participant receives a cash payment in respect of Vested RSUs pursuant to Section 3(b) above, Participant shall have no rights as a shareholder of the Company with respect to the Shares that were previously underlying such Vested RSUs.  
12.    No Right to Continued Service.  Neither the Plan, the granting of the RSUs nor any other action taken pursuant to the Plan or this Agreement constitutes or is evidence of any agreement or understanding, expressed or implied, that the Company or any Affiliate shall retain the Participant as a service provider for any period of time or at any particular rate of compensation.  
13.    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 the Participant and the successors of the Company.
14.    Conflicts.  In the event of any conflict between the provisions of the Plan 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.
15.    Counterparts.  This Agreement may be executed in a number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one in the same instrument.
16.    Miscellaneous.  The parties agree to execute such further instruments and take such further actions as may be necessary to carry out the intent of the Plan and this Agreement.  This Agreement and the Plan shall constitute the entire agreement of the parties with respect to the subject matter hereof.
17.    Section 409A.  Notwithstanding any of the provisions of this Agreement, it is intended that the RSUs granted pursuant to this Agreement be exempt from Section 409A of the Code as short-term deferrals, pursuant to Treasury regulation §1.409A-1(b)(4), or otherwise comply with Section 409A of the Code.  Notwithstanding the preceding, neither the Company nor any Affiliate shall be liable to the Participant or any other person if the Internal Revenue Service or any court or other authority have any jurisdiction over such matter determines for any reason that the RSUs are subject to taxes, penalties or interest as a result of failing to be exempt from, or comply with, Section 409A of the Code.  For the avoidance of doubt, the provisions of this Agreement shall be construed and interpreted consistent with Article XXII of the Plan.
18.    Compensation Recoupment Policy.  Notwithstanding any other provision of this Agreement, the rights, payments and benefits with respect to the RSUs (including any amounts received by Participant in connection with a sale of Shares received upon the vesting of RSUs) shall be subject to reduction, reimbursement, cancellation, forfeiture, recoupment or return by the Company, to the extent any reduction, reimbursement, cancellation, forfeiture, recoupment or return is required under applicable law or the Company’s Compensation Recoupment Policy or any similar policy that the Company may adopt.
19.    Governing Law.  This Agreement shall be governed by the governing laws applicable to the Plan.

[Signature Page to Follow]

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IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by a duly authorized officer, and the Participant has affixed the Participant’s signature hereto.

COMPANY:
MIMEDX GROUP, INC.
By:_______________________________________________
Name:_____________________________________________
Title:______________________________________________
PARTICIPANT:
_________________________________________________
[Participant’s Name]

 

5Exhibit

Exhibit 10.19

2018 Management Incentive Plan (MIP)

		
	I.
	Purpose

The 2018 MIP is designed to provide an incentive for key members of the MiMedx Group, Inc. (“MiMedx” or “Company”) management team to exceed the 2018 Business Plan and reward those management team members with deserving performance.  The MiMedx Board of Directors (the “Board of Directors”) has complete authority to interpret the 2018 MIP, to prescribe, amend and rescind rules and regulations relating to it, and to make all other determinations necessary or advisable for the administration of the 2018 MIP (to the extent not inconsistent with Section 162(m) of the Code for payments to Covered Employees). The portion of this 2018 MIP applicable to Covered Employees (as defined by Section 162(m) of the Internal Revenue Code) has been approved by the Board of Directors pursuant to the MiMedx 2016 Equity and Cash Incentive Plan.

The goals of the 2018 MIP are:  
		
	1.
	To increase shareholder value.  

		
	2.
	To achieve and exceed the MiMedx 2018 Business Plan.  

		
	3.
	To reward key individuals for demonstrated performance that is sustained throughout the year.  

		
	4.
	To enhance the Company’s ability to be competitive in the marketplace for executive talent, and to attract, retain and motivate a high-performing and high-potential management team.  

		
	II.
	MIP Program Period

This program is in effect from January 1, 2018 through December 31, 2018.  The program is subject to adjustment by the Company at any time during or after the program period.  In the event of a program adjustment, an addendum will be published to inform eligible participants.  No such adjustment may be made if it causes payments to Covered Employees to no longer qualify as qualified performance-based compensation under Section 162(m) of the Code. 

		
	III.
	MIP Participation and Eligibility

Participation and eligibility is determined by the Board of Directors with the Compensation Committee, as defined herein, approving the eligibility of Covered Employees. No individual is automatically included in the 2018 MIP.  Only those individuals approved by the Board of Directors and confirmed in writing are eligible.  Verbal comments or promises to any employee or past practices are not binding on MiMedx or any of its divisions or subsidiaries in any manner.

Terminated Employees:  If a participant terminates from the Company, the following guidelines will be used for all voluntary or involuntary terminations as well as terminations due to a Reduction in Force:  Incentives are only earned by employees who are in good standing and employed on the date payment is made.  Participants terminating employment prior to the date of payment are not eligible for any incentive payment, regardless of the reason for termination of employment.  

First Time Participants:  New management employees hired or promoted into an eligible position will be able to begin participating in the MIP on the first day of the first full month in the eligible position.  The Base Bonus will be prorated based on the number of months employed in the eligible position.  No incentives will be earned or paid for new hires beginning employment after September 30, 2018.  

Existing Participants:  Participants who transfer during the period January 1, 2018, through December 31, 2018, from one MIP eligible position to another MIP eligible position, having either a higher or lower Base Bonus, will begin participating at the new MIP level on the first day of the first full month in the new position.  The participant’s Base Bonus will be prorated for the months employed in each eligible position.  

Leave of Absence:  Participants who have been on an approved leave of absence for medical or other reasons for greater than 60 cumulative days, but 120 or lesser cumulative days, during the year will receive a prorated portion of their earned Base Bonus.  Participants who have been on an approved leave of absence for medical or other reasons for greater than 120 cumulative days during the year will not be eligible to earn any amount of MIP for the year.

Covered Employees:  The Compensation Committee shall retain discretion to name as a participant any otherwise-eligible Covered Employee hired or promoted after the commencement of the Plan.

		
	IV.
	MIP Administration

The Board of Directors has the discretion, subject to the provisions of the 2018 MIP, to make or to select the manner of making all determinations with respect to the 2018 MIP to the extent not inconsistent with Section 162(m) for Covered Employees. The Board of Directors has delegated the administration of the MIP to the Compensation Committee of the Board of Directors (the “Compensation Committee”), who in turn, will approve and subsequently make recommendations to the Board of Directors for final approval of all determinations with respect to the MIP. As delegated by the Board of Directors, the Compensation Committee shall have full authority to formulate adjustments and make interpretations under the 2018 MIP as it deems appropriate.  As delegated, the Compensation Committee shall also be empowered to make any and all of the determinations not herein specifically authorized which may be necessary or desirable for the effective administration of the 2018 MIP.  As delegated, the bonus amounts calculated under the 2018 MIP shall be paid only upon the Compensation Committee’s determination, in its sole discretion, that the participant is entitled to them. All matters of delegation of the 2018 MIP will be approved by the Compensation Committee prior to its recommendation to the Board of Directors for final approval.  The Compensation Committee shall be comprised at all times solely of two or more directors who are “outside directors” within the meaning of Section 162(m) of the Code.

The Board of Directors may change the plan from time to time in any respect except as otherwise set forth herein.  All decisions made on behalf of the Company by the Board of Directors or the Compensation Committee relative to the plan are final and binding.  The determination of compliance with the individual objectives established under the plan for an employee shall be made by the Board of Directors in its sole discretion after approval by the Compensation Committee.

		
	V.
	MIP Incentive Determination and Payment

The 2018 MIP provides for the determination of a Base Bonus expressed as a percentage of the participant’s annual salary in effect at the end of the program period or the end of each respective period when a participant transfers from one MIP eligible position to another.  

Participants approved for MIP participation as of January 1, 2018, are eligible for a full year’s participation, not subject to proration if employed for the entire year, in accordance with the provisions hereof. All incentives earned under the MIP will be measured and paid annually.  

		
	VI.
	MIP Participants

The 2018 MIP participants include the position of Chief Executive Officer (the “CEO”), other Named Executive Officers, plus the direct reports to 1) the CEO ; 2 the position of Chief Operating Officer (the “COO”), if such position exists;  and 3) Committees of the Board of Directors.   

		
	VII.
	MIP Method of Calculation

Each participant’s incentive will be calculated based on the achievement of financial targets and individual objectives.   The base bonus for all MIP participants is divided equally into three components, two of which are financial components and one is an individual objectives component. The allocation of the base bonus to the three components is as follows: one-third (1/3) of the base bonus is allocated to 2018 Consolidated MiMedx Revenue performance (“Revenue”); one-third (1/3)% is allocated to 2018 Consolidated MiMedx Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization, and Share Based Compensation Expense performance (“Adjusted EBITDA”); and one-third (1/3) is allocated to individual objectives performance (“Individual Objectives”). 

The financial thresholds for 2018 Revenue and 2018 Adjusted EBITDA indicate the level of respective performance where partial payouts commence. Increased partial payouts are indicated for respective 2018 Revenue and 2018 Adjusted EBITDA performance above the financial threshold and below the financial target. The respective 2018 Revenue and 2018 Adjusted EBITDA targets indicate the point at which the respective target base bonuses are earned.  Each partial level of payout and target base bonus payout for Revenue and Adjusted EBITDA is determined independent of the other.  

All performance measures and/or metrics/goals will be established in writing and approved by the Compensation Committee and the Board of Directors no later than the earlier of (i) ninety (90) days following the start of the fiscal year to which they relate and (ii) before the lapse of twenty-five percent (25%) of the period to which they relate. All performance measures and/or metrics/goals must be uncertain of achievement at the time they are established, and the achievement of the performance measures and/or metrics/goals must be determinable by a third party with knowledge of the relevant facts.

Following the end of the Program Period, management will provide documentation to the Compensation Committee confirming the degree of achievement of all performance measures and/or metrics, performance goals and Individual Objectives pertaining to the 2018 MIP. The Compensation Committee will review the documentation from management, and following its review, the Compensation Committee will certify, in writing, the achievement of such performance measures and/or metrics/goals and Individual Objectives prior to the approval of the Compensation Committee and its subsequent recommendation to the Board of Directors for final approval and payment in accordance with such achievement.
EBITDA Performance
MiMedx Adjusted EBITDA performance has six designated levels at which specific portions of the Adjusted EBITDA component (up to 100% of the Adjusted EBITDA target) are funded for payout. The Adjusted EBITDA threshold  is the gatekeeper for the Adjusted EBITDA component. If Adjusted EBITDA performance is unfavorable to the Adjusted EBITDA threshold, no payout for Adjusted EBITDA performance can be made. If Adjusted EBITDA performance is favorable to the Adjusted EBITDA threshold, the Adjusted EBITDA component is paid out independent of and in addition to the Revenue component in accordance with the terms set forth below. Adjusted EBITDA performance is measured before accrual and payout of bonus expense. In the table set forth below, the six designated levels of Adjusted EBITDA performance are before accrual and payout of bonus expense.

Revenue Performance
The Revenue performance has 6 designated levels at which specific portions of the Revenue component (up to 100% of the Revenue target) are funded for payout. The Revenue performance also has an additional 6 designated levels (levels 7 through 12 in the Revenue Performance table below) above 100% of the Revenue target at which an excess bonus is funded for payout. The Revenue threshold is the gatekeeper for the Revenue component. If Revenue performance is unfavorable to the Revenue threshold, no payout for Revenue performance can be made. If Revenue performance is favorable to the Revenue threshold, the Revenue component is paid out independent of and in addition to the Adjusted EBITDA component in accordance with the terms set forth below.

Revenue Performance Excess Bonus
If Revenue performance is greater than 100% of the Revenue target (Level 6 in the Revenue Performance table below), the participant may earn an excess bonus. The excess bonus is earned for each level of designated revenue performance at the excess percentage of the Revenue component plus the same excess percentage of the earned EBITDA component (levels 7 through 12 in the Revenue Performance table below) and the earned Individual Objectives. Including the excess bonus, the total bonus cannot exceed two (2) times a participant’s Base Bonus amount.  
Individual Objectives Performance                                             
The Individual Objectives component is independent of the Revenue component and the Adjusted EBITDA component. The payment of earned incentives based on the attainment of the Individual Objectives component is not conditioned on the achievement of the Adjusted EBITDA threshold nor the Revenue threshold.  

Individual Objectives for the participants are reviewed and approved by the CEO and recommended to the Compensation Committee for their approval and recommended for approval by the Board of Directors. The individual objectives are key operational measures and/or major milestone outcomes that are specific to the participant’s position and directly related to the overall achievement of the MiMedx Business Plan and/or the MiMedx Strategic Plan.  

If all of the Individual Objectives are achieved, the participant may earn the full Base Bonus amount allocated to the Individual Objectives component of the MIP.  Each individual objectives may be weighted differently or all individual objectives may be given equal weighting. If some, but not all, of the individual objectives are attained, a partial amount of the Base Bonus allocated to the individual objectives component may be earned on a proportionate basis based on the level of attainment and respective weighting of attained individual objectives.  

A table summary of the Revenue and Adjusted EBITDA MIP calculations is as follows: 
Adjusted EBITDA Performance and Portions of EBITDA Component Funded
		
	◦
	Adjusted EBITDA < $46,794,999 (Level 1) = no incentive earned for Adjusted EBITDA component; however, incentives for Revenue and Individual Objectives can be earned

		
	◦
	Adjusted EBITDA at $46,795,000 (Level 1) = 10% of Adjusted EBITDA target bonus (plus earned Revenue and earned Individual Objectives)

		
	◦
	Adjusted EBITDA at $52,140,000 (Level 2) = 25% of Adjusted EBITDA target bonus (plus earned Revenue and earned Individual Objectives)

		
	◦
	Adjusted EBITDA at $56,820,000 (Level 3) = 50% of Adjusted EBITDA target bonus (plus earned Revenue and earned Individual Objectives)

		
	◦
	Adjusted EBITDA at $60,830,000 (Level 4) = 75% of Adjusted EBITDA target bonus (plus earned Revenue and earned Individual Objectives)

		
	◦
	Adjusted EBITDA at $64,180,000 (Level 5) = 90% of Adjusted EBITDA target bonus (plus earned Revenue and earned Individual Objectives)

		
	◦
	Adjusted EBITDA at $66,850,000 (Level 6) = 100% of Adjusted EBITDA target bonus (plus earned Revenue and earned Individual Objectives)

		
	◦
	Adjusted EBITDA >$66,850,000 ( Level 6) = 100% of Adjusted EBITDA target bonus (plus earned Revenue and earned Individual Objectives)

		
	§
	 For Adjusted EBITDA performance greater that the Adjusted EBITDA target, an Excess Bonus may only be funded based upon Revenue performance greater than 100% of revenue target as described below.   

Revenue Performance and Portions of Revenue Component Funded
		
	◦
	Revenue < $308,399,999 (Level 1) = no incentive earned for Revenue component; however, incentives for Adjusted EBITDA and Individual Objectives can be earned

		
	◦
	Revenue at $308,400,000 (Level 1) = 15% of Revenue target bonus (plus earned Adjusted EBITDA and earned Individual Objectives)

		
	◦
	Revenue at $329,500,000 (Level 2) = 40% of Revenue target bonus (plus earned Adjusted EBITDA and earned Individual Objectives)

		
	◦
	Revenue at $336,500,000 (Level 3) = 60% of Revenue target bonus (plus earned Adjusted EBITDA and earned Individual Objectives )

		
	◦
	Revenue at $343,500,000 (Level 4) = 80% of Revenue target bonus (plus earned Adjusted EBITDA and earned Individual Objectives )

		
	◦
	Revenue at $347,000,000 (Level 5) = 90% of Revenue target bonus (plus earned Adjusted EBITDA and earned Individual Objectives )

		
	◦
	Revenue at $350,500,000 (Level 6) = 100% of Revenue target bonus (plus earned Adjusted EBITDA and earned Individual Objectives)

		
	◦
	Revenue at $354,000,000 (Level 7) = 110% of Revenue target bonus and 110% of earned Adjusted EBITDA and earned Individual Objectives 

		
	◦
	Revenue at $357,500,000 (Level 8) = 120% of Revenue target bonus and 120% of earned Adjusted EBITDA and earned Individual Objectives

		
	◦
	Revenue at $361,000,000 (Level 9) = 140% of Revenue target bonus and 140% of earned Adjusted EBITDA and earned Individual Objectives

		
	◦
	Revenue at $364,500,000 (Level 10) = 160% of Revenue target bonus and 160% of earned Adjusted EBITDA and earned Individual Objectives

		
	◦
	Revenue at $368,000,000 (Level 11) = 180% of Revenue target bonus and 180% of earned Adjusted EBITDA and earned Individual Objectives

		
	◦
	Revenue at $375,000,000 (Level 12) = 200% of Revenue target bonus and 200% of earned Adjusted EBITDA  and earned Individual Objectives

		
	§
	The maximum MIP amount is limited to two (2) times the participant’s Base Bonus.  

The Compensation Committee shall adjust the performance measures and/or metrics/goals as the Compensation Committee in its sole discretion may determine is appropriate in the event of unbudgeted acquisitions or divestitures or other unexpected fundamental changes in the business, any business unit or any product to fairly and equitably determine the bonus amounts and to prevent any inappropriate enlargement or dilution of the bonus amounts.  In that respect, the performance measures and/or metrics/goals may be adjusted to reflect, by way of example and not of limitation, (i) unanticipated asset write-downs or impairment charges, (ii) litigation or claim judgments or settlements thereof, (iii) changes in tax laws, accounting principles or other laws or provisions affecting reported results, (iv) accruals for reorganization or restructuring programs, or extraordinary non-reoccurring items as described in Accounting Principles Board Opinion No.  30 or as described in management’s discussion and analysis of the financial condition and results of operations appearing in the Annual Report on Form 10-K for the applicable year, (v) acquisitions or dispositions or (vi) foreign exchange gains or losses.  To the extent any such adjustments affect any bonus amounts, the intent is that the adjustments shall be in a form that allows the bonuses payable to Covered Employees to continue to meet the requirements of Section 162(m) of the Code for deductibility to the extent intended to constitute qualified performance-based compensation.

Notwithstanding any other provision of the 2018 MIP, in no event may any bonuses payable to Covered Employees under the 2018 MIP exceed the maximum amounts payable based on achievement of Adjusted EBITDA and Revenue and Individual Objectives for 2018 (subject to any other limits set forth in the 2018 MIP).  

		
	VIII.
	Maximum MIP Payment Amounts

The maximum potential amount to be earned by a participant is two (2) times the participant’s Base Bonus Amount. The determining annual base salary in the earned payout calculation is the annual base salary in effect at the end of the program period or the end of each respective period when a participant transfers from one MIP eligible position to another. In all cases, the maximum earned payout for the 2018 MIP for any one individual participant cannot exceed $1,100,000.  

      
		
	IX.
	      Payment of Earned MIP Amounts

Amounts earned by participants will be paid following the Board of Directors meeting in late February or early March, and such payment date shall be paid typically between February 15, 2019 and March 15, 2019, unless the Participant is subject to the internal investigation being conducted by the Audit Committee of the Board of Directors, in which case, such payment shall be made at a reasonable time following the conclusion of such investigation provided the Participant’s employment has not terminated prior to the date of payment.

		
	X.
	       Exemption from 409A

This Plan is intended to be exempt from the applicable requirements of Section 409A of the Code and shall be construed and interpreted in accordance therewith. The Committee may at any time amend, suspend or terminate this Plan, or any payments to be made hereunder, as necessary to be exempt from Section 409A of the Code. Notwithstanding the preceding, MiMedx shall be liable to any participant or any other person if the Internal Revenue Service or any court or other authority having jurisdiction over such matter determines for any reason that any bonus to be made under this Plan is subject to taxes, penalties or interest as a result of failing to be exempt from, or comply with, Section 409A of the Code. The bonuses under the Plan are intended to satisfy the exemption from Section 409A of the Code for “short-term deferrals.”

		
	XI.
	      MIP Miscellaneous 

Nothing in the MIP shall be deemed to constitute a contract for the continuance of employment of the participants or bring about a change of status of employment.  Neither the action of the Company in establishing this program, nor any provisions hereof, nor any action taken by the Company shall be construed as giving any employee the right to be retained in the employ of the Company for any period of time, or to be employed in any particular position, or at any particular rate of remuneration.  

Further, nothing contained herein shall in any manner inhibit the day-to-day conduct of the business of the Company and its subsidiaries, which shall remain within the sole discretion of management of the Company; nor shall any requirements imposed by management or resulting from the conduct of the business of the Company constitute an excuse for, or waiver from, compliance with any goal established under this plan.  

No persons shall have any right, vested or contingent, or any claim whatsoever, to be granted any award or receive any payment hereunder, except payments of awards determined and payable in accordance with the specific provisions hereof or pursuant to a specific and properly approved agreement regarding the granting or payment of an award to a designated individual.  

Neither this program, nor any payments pursuant to this program, shall affect, or have any application to, any of the Company’s life insurance, disability insurance, PTO, medical or other related benefit plans, whether contributory or non-contributory on the part of the employee except as may be specifically provided by the terms of the benefit plan.  

All payments pursuant to this program are in gross amounts less applicable withholdings.  To the extent required by law, the Company shall withhold from all payments made hereunder any amount required to be withheld by Federal and state or local government or other applicable laws. Each participant shall be responsible for satisfying in cash or cash equivalent acceptable to the Committee any income and employment tax withholdings applicable to any payment under the 2018 MIP or participation’s participation in the 2018 MIP.

MiMedx reserves the right to apply a participant’s incentive payment against any outstanding obligations owed to the Company.

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