Sharps Compliance, Inc. Employment Offer Letter to David C. Mayfield for Senior Vice President of Sales and Marketing
Contract Categories:
Human Resources
›
Employment Agreements
Summary
Sharps Compliance, Inc. offers David C. Mayfield the position of Senior Vice President of Sales and Marketing, contingent on background and drug checks. The role includes a specified base salary, health insurance reimbursement, eligibility for company benefits, and a stock option grant. Mayfield is eligible for a special bonus based on company gross profit growth for fiscal year 2008. Employment is at-will, but includes a severance provision for termination without cause or change in control. Mayfield must also sign a non-compete and confidentiality agreement. The start date is April 9, 2007.
EX-10.1 2 a5370822ex10_1.txt EXHIBIT 10.1 Exhibit 10.1 March 15, 2007 David C. Mayfield 526 Kingwood Drive PMB 408 Kingwood, Texas 77339 Dear David: I have enjoyed our conversations with you regarding your background and a senior management level position opportunity with Sharps Compliance, Inc. ("Sharps" or the "Company") .We are pleased to offer you the position of Senior Vice President of Sales and Marketing with Sharps reporting directly to me. The offer is contingent upon, (i) your acceptance of the terms and conditions of employment, (ii) completion, to the Company's satisfaction, of a background check and (iii) satisfactory results of drug testing. Your compensation will include a base salary of $6,923.08 per pay period (twenty-six pay periods per year). Additionally, your salary will be increased by an amount necessary to reimburse you for excess of the cost of the Company's group health insurance (or the cost of coverage should you join your spouse's group health insurance plan) over the amount you are paying at your current employer. You will be eligible to participate in a special bonus arrangement as outlined in the attached Exhibit A. As an employee of Sharps, you will be eligible to participate in the Company's group benefit program which includes: group health, vision, dental, disability insurance and 401(k). A summary description of the program, including employee premiums, is included as an attachment to this offer letter. You will also be entitled to a grant of options to purchase 100,000 shares of the Company's common stock at an exercise price equal to the closing price of the stock on your first day of employment. All stock option grants are subject to the terms of the Sharps Compliance Corp. 1993 Stock Plan. This offer does not constitute an employment contract or guarantee of employment for any specific period of time since the Company is an "at-will" employer. At-will employment means Sharps Compliance, Inc. 9220 Kirby Drive Suite 500 Houston, Texas 77054 ###-###-#### Direct ###-###-#### Fax ***@*** www.sharpsinc.com Page 2 Mayfield that either you or the Company, with or without cause and with or without prior notice, may terminate the employment relationship at any time. Additionally, your employment will be subject to the Company's policies and procedures, a copy of which will be provided to you when you join the Company. The Company will agree to enter into a mutually agreeable document that provides you with three (3) months of severance with thirty (30) days notice should your employment be terminated, without cause, or in the event of a change in control. Additionally, you agree to enter into a non-compete and confidentiality agreement consistent with that entered into by other senior management members. We are pleased to offer you this opportunity and are confident that you will make a measurable contribution to the Company. Should the above be acceptable to you, please sign your acceptance of this offer of employment in the designated space below and fax the document to ###-###-####. You have previously completed and signed an Application of Employment including authorization for drug testing, background checks and release of information. As previously agreed, your start date has been established as April 9, 2007. Should you have any questions, please feel free to call me at ###-###-#### or David P. Tusa at ###-###-####. Sincerely, /s/ Dr. Burton J. Kunik Accepted and Agreed: Dr. Burton J. Kunik Chairman, Chief Executive Officer & President ----------------------------- David C. Mayfield Dated Attachments Sharps Compliance, Inc. 9220 Kirby Drive Suite 500 Houston, Texas 77054 ###-###-#### Direct ###-###-#### Fax ***@*** www.sharpsinc.com EXHIBIT A Special Bonus Arrangement Employee will be entitled to a cash bonus computed on the increase in Company's gross profit (defined as consolidated revenue less cost of goods sold) as follows: o Increase in fiscal year 2008 over fiscal year 2007 gross profit greater than 30% but less that 40% - year end bonus of $30,000; or o Increase in fiscal year 2008 over fiscal year 2007 gross profit of greater than 40% - year end bonus of $100,000; or o Increase in fiscal year 2008 over fiscal year 2007 gross profit of less than 30% - zero year end bonus. The cash bonus is payable within thirty (30) days following the issuance of the Company's June 30, 2008 earnings release. Revenue, cost of goods sold and gross profit are determined based upon, (i) the Company's audited financial statements, (ii) consistent with that released in its Securities and Exchange Commission filings and (iii) adjusted to exclude the effects of the Company's recently announced $1.4 million purchase order from a major pharmaceutical manufacturer. Employee is only entitled to such cash bonus for the period of employment with Sharps Compliance, Inc. The Company's fiscal year end is June 30th. This bonus arrangement is for the year ended June 30, 2008 only. Any subsequent bonus arrangement would require approval by the Company's Compensation Committee of the Board of Directors in order to be considered valid. Sharps Compliance, Inc. 9220 Kirby Drive Suite 500 Houston, Texas 77054 ###-###-#### Direct ###-###-#### Fax ***@*** www.sharpsinc.com