Document:

exv10w5

 

Exhibit
10.5

February 25, 2008

     Re: Agreement to Continue Employment.

Dear:

     We appreciate your hard work and dedication as an employee of Northfield Laboratories Inc. In
view of your significant contributions, this letter will confirm the terms of your continued
employment with Northfield through December 31, 2008.

     Northfield agrees to continue your employment in your present position through December 31,
2008. During this period, your current salary will not be reduced and the employee benefits you
currently receive will not be materially changed without your consent. If you receive a promotion
or salary increase, your new position and salary will remain in effect for the remainder of this
period.

     If Northfield terminates your employment prior to December 31, 2008, you will be entitled to
receive a lump sum payment of your accrued, but unused paid time off plus an amount equal to 12
months of your base salary (as in effect at the time of your termination). These payments will be
paid within 14 days after actual termination, subject to any requirement to sign a written release
of claims. If you are entitled to and elect to continue your medical benefits under COBRA, you
will pay for that coverage at active employee rates for the first 12 months of your COBRA coverage
or if earlier, until the end of your coverage. If your COBRA coverage extends for more than 12
months, you will pay the full COBRA rate for the remainder of your COBRA period. The severance pay
and benefits provided for in this Agreement will be in lieu of any other severance or termination
pay to which the Executive may be entitled under any Company severance or termination plan,
program, practice or arrangement.

     Northfield will not be obligated to make a lump sum payment or to continue your salary or
benefits if you voluntarily terminate your employment or if your employment is terminated as a
result of Northfield’s determination, in its exclusive discretion, that you have failed to perform
your responsibilities as a Northfield employee, including any failure to comply with your
Proprietary Information and Inventions Agreement or with Northfield’s employment policies and code
of business conduct and ethics.

 

 

     Northfield may require you to sign a written release of claims as a condition to providing you
with payments or benefits after the date of the termination of your employment. All payments will
be subject to tax withholding to the extent required by law. If you are required to sign a written
release as a condition to payments or benefits, then payment will not be made until after you sign
and return the release, and any required period to revoke a written release has expired.

     This letter agreement will terminate on December 31, 2008. Your Proprietary Information and
Inventions Agreement will remain in force at all times. Unless we agree
otherwise in writing, after that date your employment with Northfield will be on an at will
basis in accordance with applicable law.

     If you agree to accept this proposal, please sign, date and return this document to my
attention by not later than March 3, 2008.

     Thank you again for your continued efforts on behalf of Northfield.

	 	 	 	 	 
	 

	 	 

Steven A. Gould, M.D.
	 	 

I have read and understand this letter

and agree with its terms:

	 	 	 	 	 
	Signature:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 

2exv10w38

 

Exhibit 10.38

SUMMARY SHEET

OF

2008 COMPENSATION

Director Compensation

     The compensation program for our non-employee directors currently consists of a combination of
cash and equity-based awards. The cash component includes an annual retainer of $50,000 (one-half
of which is subject to mandatory deferral in the form of deferred share units as described below)
and an additional fee of $1,500 for each Board and committee meeting attended. In addition, our
non-executive Chairman of the Board receives an annual cash retainer of $30,000 and committee
chairs receive an annual cash fee of $7,500. At the end of each calendar quarter, non-employee
directors are paid one-fourth of their annual retainers and committee chair annual fees and fees
for attending Board and committee meetings held during the quarter.

     Each non-employee director also receives 500 deferred share units (“DSUs”) as of the date of
each annual meeting of stockholders. The value of each DSU is equal to the value of a share of our
common stock. The DSUs are immediately vested and subject to mandatory deferral until the
director’s retirement or other termination of service from the Board. Continuing non-employee
directors (including directors who are elected or re-elected) also receive restricted stock units
(“RSUs”) as of the date of each annual meeting of stockholders with an initial value, based on the
price of our common stock on the date of grant, equal to $100,000. The RSUs are immediately vested
and subject to mandatory deferral until the later of (1) the director’s retirement or other
termination of service from the Board or (2) the date that is three years after the grant date.
Both the DSUs and the RSUs are settled in shares of our common stock.

     The terms and conditions of the RSU grants, as well as other equity-based awards that
non-employee directors are eligible to receive, are set forth in the Stock Plan for Non-Employee
Directors. Copies of this plan, amendments to this plan and the form of RSU award agreement are
filed as exhibits to our periodic reports.

     The terms and conditions of the DSU grants are set forth in our Restated Deferred Compensation
Plan for Non-Employee Directors. Pursuant to this plan, we require that 50% of a director’s annual
retainer for Board service be deferred and credited to a deferred compensation account in the form
of DSUs, the value of which account is determined by the value of our common stock, until the
director owns a total of 5,000 DSUs. A copy of this plan is filed as an exhibit to our periodic
reports.

     We also provide non-employee directors with travel accident insurance when on Zimmer business
and reimburse or pay the reasonable travel, lodging and meal expenses incurred by non-employee
directors when traveling on Zimmer business.

     Changes to our non-employee director compensation program may be disclosed in future proxy
statements or other periodic reports.

Named Executive Officer Compensation

     Our executive officers serve at the discretion of the Board of Directors. From time to time,
the Compensation and Management Development Committee of the Board of Directors reviews and
determines the salaries that are paid to our executive officers. We do not have written employment
agreements with our executive officers. The following are the current base salaries for our Chief
Executive Officer, our Chief Financial Officer and three other executive officers who we expect
will be identified as named executive officers in the definitive proxy statement for our 2008
annual meeting of stockholders to be filed with the Securities and Exchange Commission. J. Raymond
Elliott, former Chairman, President and Chief Executive Officer, and Sam R. Leno, former Executive
Vice President, Finance and Corporate

 

 

Services and Chief Financial Officer, who were two of the named executive officers listed in
the 2007 proxy statement, are no longer employed by us.

	 	 	 	 	 
	Name and Position	 	2008 Base Salary
	 
	 	 	 	 
	David C. Dvorak
	 	$	750,000	 
	President and Chief Executive Officer
	 	 	 	 
	James T. Crines
	 	$	456,500	 
	Executive Vice President, Finance and Chief Financial Officer
	 	 	 	 
	Bruno A. Melzi
	 	€	398,300	 
	Chairman, Europe, Middle East and Africa
	 	 	 	 
	Sheryl L. Conley
	 	$	394,100	 
	Group President, Americas and Global Marketing and Chief
Marketing Officer
	 	 	 	 
	Stephen H.L. Ooi
	 	SGD547,600
	President, Asia Pacific
	 	 	 	 

     During 2008, each of the executive officers identified above is also eligible to receive an
annual cash incentive award, based upon a specified percentage of his or her base salary, under our
Executive Performance Incentive Plan (the “Incentive Plan”) and to receive awards under our 2006
Stock Incentive Plan, as amended (the “Stock Plan”). Copies of the Incentive Plan, the Stock Plan
and any future revisions of these plans are filed as exhibits to our periodic reports. The target
amount under the Incentive Plan for each of these officers is 110% of base salary for Mr. Dvorak,
70% of base salary for Mr. Crines, and 60% of base salary for each of Mr. Melzi, Ms. Conley and Mr.
Ooi.

     The executive officers identified above are also eligible to participate in other employee
benefit plans and arrangements as described in our proxy statements. For Mr. Dvorak, Mr. Crines
and Ms. Conley, who are based in the United States, these include a defined benefit pension plan, a
supplemental pension plan, a savings and investment (401(k)) plan and a supplemental savings and
investment plan. For Mr. Melzi, who is based in Italy, these include a defined benefit pension
plan. For Mr. Ooi, who is based in Singapore, these include our voluntary contributions to the
Central Provident Fund, a countrywide defined contribution retirement plan.

     Each of these executive officers has also entered into a change in control severance agreement
that provides certain severance benefits following a change in control of Zimmer and termination of
the executive’s employment. Copies of those agreements or the form of those agreements are filed
as exhibits to our periodic reports.exv10w18

 

Exhibit 10.18

EURONET WORLDWIDE, INC.

EXECUTIVE ANNUAL INCENTIVE PLAN

1. OBJECTIVE

     The Euronet Worldwide, Inc. Executive Annual Incentive Plan (the “Incentive Plan”) is designed
to reward value creation by providing competitive incentives for the achievement of annual
financial performance goals. By providing market-competitive target awards, the Plan supports the
attraction and retention of senior executive talent critical to achieving the strategic business
objectives of Euronet Worldwide, Inc (the “Corporation”). The Incentive Plan is also intended to
secure the full deductibility of bonus compensation payable to the Corporation’s Chief Executive
Officer and the four highest compensated executive officers (collectively the “Covered Employees”)
whose compensation is required to be reported in the Corporation’s proxy statement and all
compensation payable hereunder to such persons is intended to qualify as “performance-based
compensation” as described in Section 162(m)(4)(C) of the Internal Revenue Code of 1986, as amended
(the “Code”).

2. ELIGIBILITY AND PARTICIPATION

     Only those executive officers of the Corporation who are selected by the Compensation
Committee (the “Committee”) of the Corporation’s Board of Directors (the “Board”) shall be eligible
to participate in the Incentive Plan. Prior to or at the time performance objectives are
established for an “Incentive Period”, as defined below, the Committee will designate in writing
which executive officers and key employees among those who may be eligible to participate in the
Incentive Plan shall in fact be participants for such Incentive Period.

3. PLAN YEAR, INCENTIVE PERIODS AND INCENTIVE OBJECTIVES

     The fiscal year of the Incentive Plan (the “Plan Year”) shall be the fiscal year beginning on
January 1 and ending on December 31. The performance period (the “Incentive Period”) with respect
to which target awards and bonuses may be payable under the Incentive Plan shall generally be the
Plan Year, provided that the Committee shall have the authority to designate different Incentive
Periods under the Incentive Plan.

     Within the first ninety (90) days of each Incentive Period the Committee shall establish in
writing, with respect to such Incentive Period, one or more performance goals, a specific target
objective or objectives with respect to such performance goals and an objective formula or method
for computing the amount

 

 

of bonus compensation payable to each participant under the Incentive Plan if the performance
goals are attained. Notwithstanding the foregoing sentence, for any Incentive Period, such goals,
objectives and compensation formulae or methods must be (i) established within that number of days,
beginning on the first day of such Incentive Period, which is no more than twenty-five percent
(25%) of the total number of days in such Incentive Period and (ii) established such that the
outcome of the goal or objective is substantially uncertain at the time the Committee actually
establishes the goal or objective.

     Incentive goals shall be based upon one or more of the following business criteria for the
Corporation as a whole or any of its subsidiaries, operating divisions or other operating units:

	 	(i)	 	Earnings (either in the aggregate or on a per-Share basis);
	 
	 	(ii)	 	Growth or rate of growth in earnings (either in the aggregate or on a
per-Share basis);
	 
	 	(iii)	 	Net income or loss (either in the aggregate or on a per-Share basis);
	 
	 	(iv)	 	Cash flow provided by operations, either in the aggregate or on a per-Share
basis;
	 
	 	(v)	 	Growth or rate of growth in cash flow (either in the aggregate or on a
per-Share basis);
	 
	 	(vi)	 	Free cash flow (either in the aggregate on a per-Share basis);
	 
	 	(vii)	 	Reductions in expense levels, determined either on a Corporation-wide
basis or in respect of any one or more business units;
	 
	 	(viii)	 	Operating and maintenance cost management and employee productivity;
	 
	 	(ix)	 	Stockholder returns (including return on assets, investments, equity, or
gross sales);
	 
	 	(x)	 	Return measures (including return on assets, equity, or sales);
	 
	 	(xi)	 	Growth or rate of growth in return measures (including return on assets,
equity, or sales);

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	 	(xii)	 	Share price (including attainment of a specified per-Share price during
the Incentive Period; growth measures and total stockholder return or attainment by
the Shares of a specified price for a specified period of time);
	 
	 	(xiii)	 	Strategic business criteria, consisting of one or more objectives based on meeting
specified revenue, market share, market penetration, geographic business expansion
goals, objectively identified project milestones, production volume levels, cost
targets, and goals relating to acquisitions or divestitures; and/or
	 
	 	(xiv)	 	Achievement of business or operational goals such as market share and/or
business development;

     provided that applicable incentive goals may be applied on a pre- or post-tax basis; and
provided further that the Committee may, when the applicable incentive goals are established,
provide that the formula for such goals may include or exclude items to measure specific
objectives, such as losses from discontinued operations, extraordinary gains or losses, the
cumulative effect of accounting changes, acquisitions or divestitures, foreign exchange impacts and
any unusual, nonrecurring gain or loss.

     Target award levels are approved by the Committee and may be a percentage of the executive’s
base salary based on organizational responsibilities and market-compilation bonus levels based on
industry data. In addition, to the extent consistent with the goal of providing for deductibility
under Section 162(m) of the Code, performance goals may be based upon a participant’s attainment of
personal objectives with respect to any of the foregoing performance goals: negotiating
transactions and sales, business unit/department performance, profit margins, reduction of certain
accounts receivable or achievement of subsidiary or departmental budgets or developing long-term
business goals. Measurements of the Corporation’s or a participant’s performance against the
performance goals established by the Committee shall be objectively determinable and, unless
otherwise established by the Committee when the incentive goals are established, to the extent they
are expressed in standard accounting terms, they shall be determined according to generally
accepted accounting principals (“GAAP”) as in existence on the date on which the performance goals
are established and without regard to any changes in such principles after such date. Individual
incentive awards reflect a mix of the Corporation’s and business unit/department performance along
with individual discretionary factors; the current actual mix for each executive will be determined
based upon his/her role and contribution to the organization.

3

 

     Due to the possibility that the specific targets related to a specific performance goal or
objective may be confidential commercial or business information, and the release of which to the
public may have an adverse affect on the Corporation, such information has been intentionally
omitted from the Plan as confidential information.

4. DETERMINATION OF BONUS AWARDS

     As soon as practicable after the end of each Incentive Period, the Committee shall certify in
writing to what extent the Corporation and the participants have achieved the performance goals or
goals for such Incentive Period, including the specific target objective or objectives and the
satisfaction of any other material terms of the bonus award and the Committee shall calculate the
amount of each participant’s bonus for such Incentive Period based upon the performance goals,
objectives and computation formulae or methods for such Incentive Period. The Committee shall have
no discretion to increase the amount of any participant’s bonus as so determined, but may reduce
the amount of or totally eliminate such bonus, if it determines, in its absolute and sole
discretion, that such a reduction or elimination is appropriate in order to reflect the
participant’s performance or unanticipated factors.

     No participant’s bonus for any Plan Year shall exceed the lesser of 500% of the participant’s
base annual salary as in effect as of the last day of such Plan Year or $4,000,000.

5. PAYMENT OF AWARDS

     Approved bonus awards shall be payable by the Corporation to each participant, or to his
estate in the event of his death, as soon as practicable after the end of each Incentive Period and
after the Committee has certified in writing that the relevant performance goals were achieved.
Bonus awards may be payable in cash or in an equivalent number of shares of the Corporation’s
common stock issued pursuant to and under one or more of the Corporation’s stockholder-approved
stock incentive plans.

     A bonus award that would otherwise be payable to a participant who is not employed by the
Corporation or one of its subsidiaries on the last day of a Incentive Period shall be prorated, or
not paid, in accordance with rules and regulations adopted by the Committee for the administration
of the Incentive Plan.

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6. OTHER TERMS AND CONDITIONS

     Unless otherwise permitted under Section 162(m) of the Code, no bonus awards shall be paid
under the Incentive Plan unless and until the material terms (within the meaning of Section
162(m)(4)(C) of the Code) of the Incentive Plan, including the business criteria described above in
Section 3 of the Incentive Plan, are disclosed to the Corporation’s stockholders and are approved
by the stockholders by a majority of votes cast in person or by proxy (including abstentions to the
extent abstentions are counted as voting under applicable state law). The Incentive Plan will
submitted to the stockholders for reapproval if the business criteria stated above in Section 3 are
materially changed and, in any event, will be submitted to be reapproved by stockholders after five
years since the last time stockholder approval was received.

     No person shall have any legal claim to be granted an award under the Incentive Plan and the
Committee shall have no obligation to treat participants uniformly. Except as may be otherwise
required by law, bonus awards under the Incentive Plan shall not be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment,
execution, or levy of any kind, either voluntary or involuntary. Bonuses awarded under the
Incentive Plan shall be payable from the general assets of the Corporation and no participant shall
have any claim with respect to any specific assets of the Corporation.

     Neither the Incentive Plan nor any action taken under the Incentive Plan shall be construed as
giving any employee the right to be retained in the employ of the Corporation or any subsidiary or
to maintain any participant’s compensation at any level.

     The Corporation or any of its subsidiaries may deduct from any award any applicable
withholding taxes or any amounts owed by the executive of the Corporation or any of its
subsidiaries.

7. ADMINISTRATION

     All members of the Committee shall be persons who qualify as “outside directors” as defined
under Section 162(m) of the Code. Until changed by the Board, the Committee of the Board shall
constitute the Committee hereunder.

     The Committee shall have full power and authority to administer and interpret the provisions
of the Incentive Plan and to adopt such rules, regulations, agreements, guidelines and instruments
for the administration of the Incentive

5

 

Plan and for the conduct of its business as the Committee deems necessary or advisable.

     Except with respect to matters which under Section 162(m)(4)(C) of the Code are required to be
determined in the sole and absolute discretion of the Committee, the Committee shall have full
power to delegate to any officer or employee of the Corporation the authority to administer and
interpret the procedural aspects of the Incentive Plan, subject to the Incentive Plan’s terms,
including adopting and enforcing rules to decide procedural and administrative issues.

     The Committee may rely on opinions, reports or statements of officers or employees of the
Corporation or any subsidiary thereof and of company counsel (inside or retained counsel), public
accountants and other professional or expert persons.

     The Board reserves the right to amend or terminate the Incentive Plan in whole or in part at
any time. Unless otherwise prohibited by applicable law, any amendment required to conform the
Incentive Plan to the requirements of Section 162(m) of the Code may be made by the Committee. No
amendment may be made to the class of individuals who are eligible to participate in the Incentive
Plan, the performance criteria specified in Section 3 or the maximum bonus payable to any
participant without stockholder approval unless stockholder approval is not required in order for
bonuses paid to Covered Employees to constitute qualified performance-based compensation under
Section 162(m) of the Code.

     No member of the Committee shall be liable for any action taken or omitted to be taken or for
any determination made by him or her in good faith with respect to the Incentive Plan, and the
Corporation shall indemnify and hold harmless each member of the Committee against any cost or
expense (including counsel fees) or liability (including any sum paid in settlement of a claim with
the approval of the Committee) arising out of any fact or omission in connection with the
administration or interpretation of the Incentive Plan, unless arising out of such person’s own
fraud or bad faith.

     The place of administration of the Incentive Plan shall be in the State of Kansas and the
validity, construction, interpretation, administration and effect of the Incentive Plan and the
rules, regulations and rights relating to the Incentive Plan, shall be determined solely in
accordance with the laws of the State of Delaware.

6

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