Document:

exh_1015.htm

Exhibit 10.15

 

 

MEDICAL ACTION INDUSTRIES INC.

 

SUMMARY OF ANNUAL PERFORMANCE BASED BONUS PROGRAM

 

Medical Action Industries Inc. (the “Company”) has historically utilized an annual cash bonus program based on the performance of the Company and the participants.  The performance-based cash bonuses are generally available to full-time employees holding key positions at the Company, which positions have been selected by the Company’s most senior executives as a bonus eligible position.  Employees are eligible to participate as soon as they are either hired into or promoted to an eligible position (except where an eligible employee starts in the last quarter of the fiscal year, such employee may only participate beginning in the next year).

Each May, the Company’s Chief Executive Officer reviews with the Company’s Compensation Committee (the “Compensation Committee”) the Company’s estimated full-year financial results against the financial, strategic and operational goals established for the year and the Company’s financial performance in prior periods.  Based on that review, the Compensation Committee determines on a preliminary basis an estimated appropriation to provide for the payment of cash bonuses to full-time employees.

The Compensation Committee, with input from the Chief Executive Officer with respect to the other executives, then uses its discretion in determining the amount of cash bonus, within prescribed limits, that will be paid to each participant shortly after the end of the fiscal year.  They evaluate (1) the Company’s overall performance, (2) the performance of the business or function that the executive leads, and (3) each executive’s individual performance against previously established expectations for the year.  Regardless of the Company’s performance or any particular executive’s performance with respect to such criteria, the Compensation Committee retains full discretion over the determination and the payment, if any, of the bonus that is deemed appropriate in light of circumstances.

More specifically, each individual executive’s potential performance-based cash bonus is calculated with respect to a target percentage of such individual’s salary (“Target Payout Percentage”) as established in such individual’s plan letter provided at the beginning of the fiscal year.  Payment of any individual’s Target Payout Percentage is subject to the achievement of the performance target objectives (“Performance Metrics”), which are selected and approved by the Board of Directors of the Company (the “Board”) prior to the start of each fiscal year.  The Board may also set ratios for each Performance Metric (i.e., how much each metric is weighted against the others), target achievement levels for each Performance Metric, and an overall hurdle that must be achieved prior to any bonus being paid.  These Performance Metrics, along with any ratios, targets, or hurdles the Board chooses to utilize in a given year, are established after discussion with and recommendations by the Company’s senior management and based on the objectives of the business plan for the next year.

  

  

  

After taking all of the above into consideration, the Compensation Committee has the complete authority to increase or decrease the size of earned payouts based on the Compensation Committee’s independent evaluation of Company and individual performance, including but not limited to the discretion to award bonus amounts to executive officers if the target Performance Metric(s) and individual or team goals are not achieved.  Furthermore, the Compensation Committee may amend, suspend or terminate the plan at any time, for any reason or no reason.exh_1016.htm

Exhibit 10.16

 

500 Expressway Drive South, Brentwood, NY 11717

Phone: 631.231.4600

Fax: 631.404.3899

www.medical-action.com

 

 

 

February 28, 2012

Mr. John Sheffield

[______________]

[______________]

Dear John:

It is with extreme pleasure that on behalf of Medical Action Industries Inc. I am able to offer you the opportunity of becoming a valuable member of our team.  Per our discussions, I have outlined in this letter the proposed terms of your employment with Medical Action Industries Inc.

You will be employed by Medical Action as Chief Financial Officer.  Your mutually agreed upon start date will be on or about March 12, 2012.  You will be entitled to receive a starting bi-weekly salary of $10,576.92 (with applicable deductions for withholding taxes, FICA, etc.).  A bi-weekly car allowance of $576.92 will also be extended.  In addition, we offer you the opportunity of earning an additional 50% in bonus opportunity by participating in our FY 2013 Management Incentive Program.  The specific terms of this program will be mutually agreed upon within the first thirty (30) days of your employment with Medical Action.

In addition, we will recommend to the Board of Directors as soon as practicable after the commencement of your employment, a Change of Control Agreement, and the granting to you of options to purchase 30,000 shares of Medical Action’s common stock in accordance with the Company’s Stock Incentive Plan.  The exercise price for all grants of stock options shall be determined by the closing price for the Company’s common stock on the day prior to each grant and this option grant will vest over four (4) years.  You will have the opportunity to earn additional option grants year over year as part of our Management Incentive Program.

As an integral part of our management team, you will be entitled to regular vacations during each year of four (4) weeks in the aggregate.  You will also be eligible to participate in the Company’s health, dental and vision plans, life insurance, 401(k) plan, and such future employee benefit plans of the Company.  In addition, Medical Action agrees to reimburse you for your COBRA costs for a period of two (2) months.  A benefits package will be sent under separate cover upon receipt of signed offer letter.

The above offer is contingent on your successful completion of a background check, drug screen and your acceptance of our Confidentiality and Non-Solicitation agreement.

Once again, we are extremely pleased to be able to offer you this compensation package and we look forward to the opportunity of working with you and developing the strategies that will allow Medical Action to meet its future goals of growth, diversification and profitability.  Please review and sign this letter as acknowledgement and acceptance of this offer of employment.  If you have any questions, please don’t hesitate to call me.  You may reach me at [_________].

  

  

  

 

500 Expressway Drive South, Brentwood, NY 11717

Phone: 631.231.4600

Fax: 631.404.3899

www.medical-action.com

 

-2-

Sincerely,

/s/ Paul D. Meringolo

Paul D. Meringolo

President & CEO

Accepted By:                                                                                                             

 

 

/s/ John Sheffield

John Sheffield

Cc:  Laurie Darnaby, SPHR

 

 

 

 

 

footer.jpgexh_1017.htm

Exhibit 10.17

 

500 Expressway Drive South

Brentwood, NY 11717

Phone: 631.231.4600

Fax: 631.404.3899

www.medical-action.com

 

 

May 20, 2013

Mr. Paul Chapman

[___________]

[___________]

Dear Paul:

It is with pleasure that on behalf of Medical Action Industries Inc. (the “Company”) I am able to offer you the opportunity of becoming a valuable member of our team.  Per your discussions with Paul Meringolo, I have outlined in this letter the proposed terms of your full-time employment with Medical Action. This letter supersedes the prior Offer Letter provided for your interim role dated December 27, 2012.

You will be employed by Medical Action as President and Chief Operating Officer.  Your mutually agreed upon start date will be on or about June 15, 2013, unless we are able to mutually agree an earlier start date.  You will receive a base salary of $15,692.31 payable on a bi-weekly basis (with applicable deductions for withholding taxes, FICA, etc.) in accordance with the Company’s normal payroll practices. A bi-weekly car allowance of $269.23 will also be extended. In addition to your base compensation, we offer you the opportunity of earning an additional 65% in bonus potential by participating in our FY 2014 Management Incentive Program.  The specific terms of this program will be mutually agreed upon within the first ninety (90) days of your employment with Medical Action.

The Board has decided to grant you options to purchase of 400,000 shares of Medical Action’s common stock in accordance with the Company’s Stock Incentive Plan as of the close of business May 20, 2013 for your work as interim COO and your future work in the newly created position of President & Chief Operating Officer.  In addition, we will recommend to the Board of Directors as soon as practicable after the commencement of your employment, a Change of Control Agreement.

As an integral part of our team, you will be entitled to regular vacations during each year of four (4) weeks in the aggregate.  You will also be eligible to participate in the Company’s health, dental and vision plans, life insurance, 401(k) plan, and such future employee benefit plans of the Company.  A benefits package will be sent under separate cover upon receipt of signed offer letter.  In addition, Medical Action agrees to reimburse you for two months of COBRA coverage if necessary.

The above offer is contingent on your successful completion of a background and drug screen.  If you accept this offer, you have entered into (your) employment relationship with Medical Action voluntarily and acknowledge that there is no specified length of employment. Accordingly, either Medical Action or (you) may terminate the employment relationship at will at any time, with or without cause, so long as there is no violation of applicable federal or state law.

  

  

  

 

500 Expressway Drive South

Brentwood, NY 11717

Phone: 631.231.4600

Fax: 631.404.3899

www.medical-action.com

Once again, we are extremely pleased to be able to offer you this compensation package and we look forward to the opportunity of working with you and developing the strategies that will allow Medical Action to meet its future goals of growth, diversification and profitability.  Please review and sign this letter as acknowledgement and acceptance of this offer of employment and fax it to me at [___________].  If you have any questions, please don’t hesitate to call me.  You may reach me at [___________].

Sincerely,

/s/ Monika Goedel

Monika Goedel

Director of Corporate Administration

 

Accepted By:

 

 

/s/ Paul Chapman

Paul Chapman

Accepted Date:

 

 

05/28/2013

cc:  Paul Meringolo, CEO

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