Document:

a728ex101

           Exhibit 10.1                           February 14, 2015      James L. Bierman   [Address]          Re:  Transition Services      Dear Jim:       This letter confirms our understanding with respect to certain details relating to your   anticipated retirement.       Owens & Minor agrees to continue to employ you at least through December 31, 2015,   even if your successor comes on board sooner. In the event a new Chief Executive Officer is   appointed before December 31, 2015, you agree to work with your successor to define your role   and responsibilities, if any, until you leave the Company’s employ.  You will be eligible for any   payout under our 2015 cash incentive program and you will receive any shares that may be   issued under the terms of your February 2014 performance share award.  You will also be   eligible to receive a pro rata portion of any shares that may be issued under the terms of your   February 2015 performance share award with respect to your service during 2015.  You will   receive all of the shares that may be issued under the terms of your September 2014 performance   share award in common shares not subject to vesting.  In addition, all of your restricted shares   will continue to vest until they are fully vested and any shares you receive pursuant to your   February 2014 and February 2015 performance share awards will not be restricted, unless your   retirement date occurs after the earned shares are issued as restricted stock, in which case, such   shares would continue to vest until they are fully vested.  You will be subject to the provisions of   the attached Post-Retirement Service Agreement being executed with this letter.         This letter also confirms that you have achieved the minimum early retirement age for   purposes of the SERP, your restricted share awards and your performance share awards.    Accordingly, you have vested in the SERP and will receive payments upon your departure in   accordance with its terms.          

 

February 14, 2015   Page -2-          This letter is intended to be binding and enforceable.  Please sign and return one copy of   this letter to me and retain a copy for your files.       We sincerely appreciate your service to Owens & Minor and are pleased to confirm these   arrangements.      Sincerely,      /s/:  Grace R. den Hartog      Grace R. den Hartog   SVP, General Counsel &    Corporate Secretary      Enclosure      cc: Craig R. Smith    Anne Marie Whittemore            Agreed and accepted:         /s/:James L. Bierman      Date:  2/14/15           

 

   Page 1 of 4   Post-Retirement Service Agreement – Confidential   POST-RETIREMENT SERVICE AGREEMENT      This POST-RETIREMENT SERVICE AGREEMENT (sometimes also called “Agreement” herein) is entered into by   and between Owens & Minor, Inc. (which together with its parent and affiliates is referred to as “Company”)   and James L. Bierman (“Bierman”), or collectively, “the Parties” to take effect as of the date Bierman   retires from the Company (the “Effective Date”).      WHEREAS, Bierman is expected to retire from the Company effective December 31, 2015   (“Retirement Date”); and,      WHEREAS, the Company issued equity awards to Bierman during his employment that will not   have vested as of his Retirement Date, and such equity awards would therefore be subject to forfeiture   under the terms of the applicable award agreements.  In consideration of Bierman’s agreement to the   confidentiality and non-solicitation terms below, and in recognition of his years of service and his   contribution to the Company, the Company desires that Bierman’s unvested equity awards would not be   forfeited but rather that such awards would continue to vest during the period of this Post-Retirement   Service Agreement as provided by the applicable equity award agreements; and,        WHEREAS, the Parties desire to enter into this Post-Retirement Service Agreement;       NOW, THEREFORE, the Parties agree to this Post-Retirement Service Agreement under the   following terms and conditions:      1. Covenant to Maintain Confidentiality.      a. Bierman acknowledges that, during his employment with the Company and during the term of   this Post-Retirement Service Agreement, he was and may be exposed to information that is   confidential to Company (“Confidential Information”).  Such Confidential Information includes   but is not limited to:  trade secrets; financial or investor relations information; sales activity   information; accounting information; revenue recognition information; cash-flow information;   lists of and other information about current and prospective customers, vendors or suppliers;   prices or pricing strategy or information; sales and account records; reports, pricing, sales   manuals and training manuals regarding selling, purchasing, and pricing procedures and   financing methods of Company, together with any specific and proprietary techniques utilized   by Company in designing, developing, testing or marketing its products, product mix and   supplier information or in performing services for clients, customers and accounts of Company;   information concerning existing or contemplated software, products, services, technology,   designs, processes and research or product developments of the Company; and, any other   information of a similar nature made available to Bierman and not known to the public, which, if   misused or disclosed, could adversely affect the business of Company. Confidential   information includes any such information that Bierman may have prepared or created during   his employment with the Company, as well as such information that has been or may be   created or prepared by others.        

 

   Page 2 of 4   Post-Retirement Service Agreement – Confidential   b. Bierman agrees that for as long as such information remains confidential to Company,   including after the term of this Post-Retirement Service Agreement, Bierman will not disclose   any Confidential Information to any person, agency, institution, company, or other entity, and   he will not use any Confidential Information in any way, except as required by his duties to   Company or by law, unless Bierman first obtains written consent of Company’s President or   the President’s designee.      c. Bierman agrees that his duties and obligations under this Paragraph 2 will continue for as long   as such information remains confidential to Company, including after the termination of this   Post-Retirement Service Agreement, regardless of the time, manner, or reason that this Post-   Retirement Service Agreement is terminated.  In the event that Bierman is unsure whether   certain information remains confidential, Bierman will send Company a written inquiry about its   confidentiality.      2. Covenant Not to Solicit.  In this Paragraph 3, Bierman agrees not to take certain actions that would   be damaging to Company’s competitive position.  By making this commitment, Bierman agrees not to   take any such actions either directly or indirectly, either as principal, agent, employee, employer,   owner, stockholder (owning more than 10% of a corporation’s shares), partner, or in any other   individual or representative capacity whatsoever.      a. Covenant Not to Solicit Company Teammates.  Bierman agrees that, during the Term of this   Post-Retirement Service Agreement, he will not:      i. solicit or induce any officer or other teammate of Company to leave his or her   employment in order to become an employee, executive or independent contractor for   any other person or entity; or,      ii. aid or assist any other person, firm, or corporation to do any of the acts described in   the previous subsection (i) of this Paragraph 3(a).      b. Covenant Not To Solicit.  Independent of the foregoing provisions, Bierman agrees that,   during the Term of this Post-Retirement Service Agreement, he will not, directly or indirectly,   solicit, interfere with, or endeavor to entice away from the Company, any of Company’s   customers, supplier partners, or manufacturing partners.      3. Term.  This Post-Retirement Service Agreement shall commence on December 31, 2015, or such   earlier date as Bierman may leave the Company’s employment, and continue until such time as all of   his unvested and outstanding equity awards have vested, if not sooner extended by mutual agreement   or terminated as provided in this paragraph (“Term”).      a. Upon Bierman’s death,       i. any unvested and outstanding equity awards shall immediately and fully vest; and,       ii. this Post-Retirement Service Agreement shall terminate.        

 

   Page 3 of 4   Post-Retirement Service Agreement – Confidential   b. Company shall have the right to terminate this Post-Retirement Service Agreement, at any   time and immediately upon delivery of written notice, if Bierman materially violates or breaches   any provision of this Post-Retirement Service Agreement, including but not limited to the   obligations and covenants set forth in Paragraphs 3 and 4 of this Post-Retirement Service   Agreement.      4. Waiver.  The failure or delay of any party at any time to demand performance by another party of any   provision of this Post-Retirement Service Agreement, even if known, shall not affect the right of such   party to require performance of that provision or to exercise any right, power or remedy hereunder.    Any waiver by any party of any breach of any provision of this Post-Retirement Service should not be   construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the   provision itself, or a waiver of any right, power or remedy under this Post-Retirement Service   Agreement.      5. Assignment; Amendment.  This Post-Retirement Service Agreement may and shall be assigned or   transferred to, and shall be binding upon and shall inure to the benefit of, any successor or other assign   of the Company.  Bierman acknowledges and agrees that he may not assign this Post-Retirement   Service Agreement.  No amendment or modification of any term of this Post-Retirement Service   Agreement shall be effective unless set forth in a writing signed by the parties hereto.      6. Entire Agreement; Acknowledgment of Continuing Applicability of Other Obligations.  The   promises set forth in this Post-Retirement Service Agreement supersede any prior understanding,   agreement, practice or contract, oral or written, between Bierman and Company relating to Bierman’s   post-retirement service other than the transition services letter dated February 14, 2015 between Mr.   Bierman and the Company.      7. Controlling Law.  This Post-Retirement Service Agreement shall be construed and enforced under the   laws of the Commonwealth of Virginia, without regard to its conflicts of law principles, and shall be   binding upon Bierman.            

 

   Page 4 of 4   Post-Retirement Service Agreement – Confidential      IN WITNESS WHEREAS, the parties have executed this Post-Retirement Service Agreement as of the   Effective Date.      Accepted By:   JAMES L. BIERMAN OWENS & MINOR, INC.   Name:  James L. Bierman Name:  Grace R. den Hartog   Date: 2/14/15 Title:  SVP & General Counsel   Signature: /s/:  James L. Bierman Date:  2/14/15    Signature: /s/:  Grace R. den Hartoga728ex102

           Exhibit 10.2   Grace R. den Hartog   Senior Vice President, General Counsel &   Corporate Secretary   Direct Dial: 804.723.7945   heath.galloway@owens-minor.com                May 6, 2015      VIA ELECTRONIC (rsimon@vedderprice.com) AND FIRST CLASS MAIL      Paul Cody Phipps   c/o Vedder Price P.C.   222 North LaSalle Street   Chicago, Illinois 60601       Re: Offer of Employment                Dear Cody:       I am pleased to extend you an offer of employment to join Owens & Minor as the   Company’s President and Chief Executive Officer. The details of this employment offer are set   forth in the enclosed Owens & Minor, Inc. Executive Employment Term Sheet. Please note that our offer   of employment would not be effective until May 20, 2015, when the Board officially considers your   appointment as President and CEO. We ask that you confirm your receipt of this offer and accept   the terms of employment by counter signing the Term Sheet and returning it to me on or before   Friday, May 8, 2015.       Cody, the Board is truly excited to extend you this offer and look forward to your joining the   Company. If you have any questions whatsoever, please do not hesitate to contact me.       Sincerely,       /s/: Grace R. den Hartog       Grace R. den Hartog        

 

Page 1 of 4                  Owens & Minor, Inc.   Executive Employment Term Sheet      Set forth herein (the “Term Sheet”) are the management compensation and employment terms by   which the undersigned parties agree to abide upon the consummation of the contemplated employment   relationship between the parties. The offer of employment under this Term Sheet is conditioned  on the   satisfactory completion of background and drug screens, as well as an executive-level physical examination   completed no earlier than 90 days prior to the commencement of employment (each a “Condition”).      Employer For payroll purposes, Owens & Minor Medical, Inc., a wholly owned   subsidiary of Owens & Minor, Inc. (collectively “O&M” or the “Company”).      Employee Paul Cody Phipps (“Executive”).      Position President and Chief Executive Officer of O&M, reporting to the Board of   Directors of Owens & Minor, Inc (the “O&M Board”).1      Start Date July 1, 2015.      Term The employment relationship will not be subject to any contract or for any   defined period, and will be of indefinite duration and terminable at-will,   subject to this Term Sheet.      Base Salary $900,000.00 (Annual). Base Salary for calendar year 2015 shall be pro-   rated to account for the employment Start Date.      Annual Bonus Executive shall be eligible for a performance-based annual cash bonus as   detailed in the attached 2015 Executive Incentive Plan,2 provided that   Executive’s target bonus shall be equal to 125% of annual base salary.   Guaranteed payment of full target bonus for calendar year 2015   ($1,125,000.00), with accelerated payment of 50% of 2015 bonus   ($562,500.00) within 30 days after commencement of employment.      Acceptance Incentive On the Start Date, a special one-time grant of O&M restricted stock award   in the amount of $5,000,000,3 which shall vest over five (5) years at the   rate of 20% per year beginning on the first anniversary of the   commencement of employment, provided, however, that there shall be   100% vesting acceleration upon any termination of Executive’s   employment by the Company without Cause, by Executive for Good                                                               1 Executive will be nominated as a director for the O&M Board and nominated, elected and/or appointed, as applicable, to the   appropriate boards of directors of O&M entities in accordance with O&M policy and practice commensurate with Executive’s   position at the Company.   2 Future annual incentive plans for all executives may be revised by O&M, subject to agreement from the Compensation   Committee of the Company’s Board of Directors (the “Compensation Committee”).   3 All stock award values will be based on closing market stock prices as of the date of such award and will be made subject to   applicable grant agreements, sample copies of which are attached hereto, as modified to conform with this Term Sheet if required.     

 

Page 2 of 4      Reason (whether before or after a Change in Control), or due to   Executive’s death or Disability.  For purposes of this Term Sheet,   “Cause”, “Disability” and “Good Reason” shall have the meanings set   forth under the sample restricted stock agreement attached hereto.      Long-Term Incentives On the Start Date, a 2015 annual grant of O&M performance shares in   the face amount of $2,000,000 and a 2015 annual grant of O&M   restricted stock in the face amount of $2,000,000.4 Long-term Incentives’   grant value for calendar year 2015 shall be pro-rated to account for the   employment Start Date.        Employee Benefits Eligible to participate in the employee benefits plans made available to   senior executives of the Company generally, in accordance with the terms   of the applicable plan or program documents. Benefits include, inter alia,   health and dental insurance programs; 401(k) retirement plan, executive   deferred compensation plan; basic and supplemental life insurance   programs; and short-term and long-term disability programs.      Executive Medical Eligible for a company-paid, complete executive physical (Annual) and   company-paid membership in a medical concierge service (e.g. Partner   MD).      Vacation Four (4) weeks of paid vacation in the first year of employment, with   increases thereafter.      Car Allowance Eligible to lease a vehicle for up to, or receive a car allowance of, $1000   (Monthly).      Tax, Financial Planning Eligible for a $15,000 (Annual) allowance for tax and financial planning   from a firm of Executive’s choice (excluding KPMG).      Expenses Company to reimburse all of Executive’s business expenses incurred   during employment pursuant to applicable policy.  Company to pay   Executive’s reasonable professional fees incurred to negotiate and   prepare this Term Sheet and all related agreements.      Relocation Executive shall be reimbursed for all reasonable expenses incurred by   Executive to relocate himself and his family to the vicinity of the   Company’s offices in accordance with O&M’s relocation policies and   practices applicable to senior executives of the Company.      Severance Executive to participate in the Company Officer Severance Policy Terms,   except that for any termination by the Company without Cause occurring                                                               4 Performance share metrics for calendar year 2015 shall be the same as those set for other O&M officers, as detailed in the   attached 2015 Performance Share Goals and Metrics and applicable performance share agreement. Future annual equity   programs for all executives may be revised by O&M, subject to agreement from the Compensation Committee.        

 

Page 3 of 4      on or before the second anniversary of the Start Date (the “Initial Period”),   Executive’s severance will not be less than the aggregate of: (i) the sum   of 18 months of Executive’s Base Salary and an amount equal to 1.5   times Executive’s Target Bonus payable in monthly installments, plus (ii)   a pro-rated bonus for the year of termination based on actual   performance results (with any subjective goals deemed satisfied at   Target), plus (iii) any unpaid earned completed prior year bonus, plus (iv)   18 months of covered benefits, plus (v) outplacement, tax preparation and   financial counseling benefits as provided under the Company Officer   Severance Policy Terms.5 Any termination of Executive’s employment   with the Company following the expiration of the Initial Period shall be   subject to the Company’s executive severance policy existing at the time   of such termination, and Executive shall be entitled to severance benefits   only in accordance with such policy.      Change in Control Executive and the Company shall enter into an executive severance   agreement as a Category A officer in form and substance substantially   similar (and not less favorable to Executive) to the attached draft   Executive Severance Agreement, except that the Company will not give   Executive a notice of non-renewal of the term of the executive severance   agreement such that said term expires prior to the expiration of the Initial   Period.      Indemnification; Insurance Executive will be indemnified and held harmless for all acts and   omissions to act during employment or service as a member of the Board   to the fullest extent permitted under the O&M charter, by-laws and   applicable law. At all times during which Executive may be subject to a   covered liability, Executive will be included as an insured under any   contract of directors and officers liability insurance that covers other   members of the Board.      Governing Law This Term Sheet shall be governed and construed in accordance with the   laws of the Commonwealth of Virginia, without regard to its principles of   conflict of laws.      By signing below, the parties agree that this Term Sheet is binding on the parties with the employment   terms to take effect as of the date that the employment relationship contemplated hereby commences,   and is subject to the Conditions. In the event the contemplated employment herein is not consummated   by mutual agreement of the parties or Executive’s failure to satisfy any Condition, this Term Sheet shall   become null and void and of no effect.      SIGNATURE PAGE FOLLOWS                                                               5 All severance payments made or benefits afforded to Executive pursuant to this Term Sheet shall be provided in accordance with   applicable laws and regulations applicable to such payments and/or benefits.     

 

Page 4 of 4      Paul Cody Phipps Owens & Minor Medical, Inc.            /s/: Paul C. Phipps     By:  /s/: Grace R. den Hartog         Date: May 6, 2015    Name: Grace R. den Hartog          Its: Senior Vice President, General Counsel &   Corporate Secretary        Date: May 6, 2015      Should you accept employment with the Company, you certify your understanding that your employment will be on an at-will basis, subject to the terms of this   Term Sheet.  As an at-will employee, you will be free to terminate your employment with the Company at any time, with or without cause or advance notice.   Likewise, the Company will have the right to terminate your employment at any time, for any legal reason or no reason, and with or without advance notice. This   at-will relationship and this Term Sheet can only be modified by a written document signed by a corporate officer and you.

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