Attached files

file filename
10-K - 10-K - MOCON INCa2197595z10-k.htm
EX-32.2 - EXHIBIT 32.2 - MOCON INCa2197595zex-32_2.htm
EX-23.1 - EXHIBIT 23.1 - MOCON INCa2197595zex-23_1.htm
EX-10.4 - EXHIBIT 10.4 - MOCON INCa2197595zex-10_4.htm
EX-10.15 - EXHIBIT 10.15 - MOCON INCa2197595zex-10_15.htm
EX-31.2 - EXHIBIT 31.2 - MOCON INCa2197595zex-31_2.htm
EX-32.1 - EXHIBIT 32.1 - MOCON INCa2197595zex-32_1.htm
EX-31.1 - EXHIBIT 31.1 - MOCON INCa2197595zex-31_1.htm
EX-21.1 - EXHIBIT 21.1 - MOCON INCa2197595zex-21_1.htm

Exhibit 10.16

 

MOCON, INC.

 

DESCRIPTION OF EXECUTIVE OFFICER

COMPENSATION ARRANGEMENTS

 

All of the employees of MOCON, Inc., including executive officers, are employed “at will” and do not have employment agreements with MOCON.  MOCON has, however, entered into a written Executive Severance Agreement, a form of which was filed as an exhibit to our Annual Report on Form 10-K for our fiscal year ended December 31, 2007, with five of our full-time executive officers, including each of our officers listed below.  The following is a description of oral compensation arrangements for 2010 between MOCON, Inc. and our executive officers who are listed as “named executive officers” in our proxy statement relating to our 2010 annual meeting of shareholders:

 

Name of
Executive
Officer

 

Title

 

Base
Salary

 

Bonus
Arrangements

 

Stock
Options

 

Other

Robert L. Demorest

 

Chairman, President and Chief Executive Officer

 

$281,635 per year

 

See footnotes (1) and (2) below

 

Stock options to purchase shares of MOCON common stock are granted from time to time in the sole discretion of the Compensation Committee of the MOCON board of directors

 

Under the MOCON, Inc. Savings and Retirement Plan, participants, including executive officers, may voluntarily request that MOCON reduce pre-tax compensation by up to 75% (subject to certain special limitations) and contribute such amounts to a trust. MOCON contributed an amount equal to 50% of the first 6% of the amount that each participant contributed under this plan. MOCON provides an automobile for each of its full-time executive officers. Executive Officers generally receive 3-5 weeks vacation per year. MOCON employees, including its executive officers, are not compensated for unused vacation. Executive officers are reimbursed for expenses incurred in the ordinary course of business. Executive officers receive other benefits received by other MOCON employees, including health, dental and life insurance benefits.

Daniel W. Mayer

 

Executive Vice President

 

$212,676 per year

 

See footnotes (1) and (2) below

 

See above

 

See above

Darrell B. Lee

 

Vice President, Chief Financial Officer, Treasurer and Secretary

 

$157,073 per year

 

See footnotes (1) and (2) below

 

See above

 

See above

 



 

Name of
Executive
Officer

 

Title

 

Base
Salary

 

Bonus
Arrangements

 

Stock
Options

 

Other

Douglas J. Lindemann

 

Vice President and General Manager

 

$181,317 per year

 

See footnotes (1) and (2) below

 

See above

 

See above

Robert E. Forsberg

 

President, Baseline-MOCON, Inc.

 

$148,361

 

See footnotes (1) and (2) below

 

See above

 

See above

 


(1)                                 MOCON provides its executive officers and other employees a direct financial incentive to achieve MOCON’s annual profit goals through the MOCON, Inc. Incentive Pay Plan, which was established pursuant to resolutions of the Compensation Committee effective January 1, 2003 and filed as an exhibit to MOCON’s annual report on Form 10-K for the year ended December 31, 2002.  Under the Incentive Pay Plan, annual goals are measured by MOCON’s annual net income before income taxes and incentives for Mr. Demorest, Mr. Lee, Mr. Lindemann and Mr. Mayer, who have overall corporate responsibilities.  The Incentive Pay Plan contemplates that each year the Compensation Committee will establish goal amounts for MOCON’s executive officers and will determine the percentage of salary at goal for MOCON’s executive officers.  On December 31, 2009, the Compensation Committee established these goal amounts and determined these percentages.  Although the goal amounts are confidential, the 2010 percentages of salary at goal range from forty percent to sixty-five percent of 2010 base salary earned, at goal, with the actual incentive paid based on the percentage of goal achieved, up to a maximum of one hundred fifty percent.  The fiscal 2010 goals and percentages of salary were set forth in resolutions approved by the Compensation Committee and are not otherwise set forth in any written agreements between MOCON and the executive officers.  The following are the amounts paid to each of MOCON’s executive officers under the Incentive Pay Plan with respect to fiscal 2009:  Mr. Demorest: $117,849; Mr. Mayer: $54,718; Mr. Lee: $40,412, Mr. Lindemann: $52,459 and Mr. Forsberg: $2,280.  These amounts were paid in March 2010.

 

(2)                                 On December 31, 2009, the Compensation Committee established individual special performance related bonus arrangements for Messrs. Demorest, Mayer, Lee, Lindemann and Forsberg to further motivate these individuals to attain certain company-related performance goals in addition to the profitability performance-related goals covered under MOCON’s Incentive Pay Plan.  While the specific performance goals remain confidential, the bonuses if paid will be in the form of an extra week of paid vacation and an all-expense paid trip for two, up to maximum amounts ranging from $10,000 to $13,000.  The terms of the fiscal 2010 special performance related bonuses were set forth in resolutions approved by the Compensation Committee and are not otherwise set forth in any written agreements between MOCON and the executive officers.