
|
|
1)
|
the
election of three directors;
|
|
|
2)
|
a
proposal to approve the selection of Elliott Davis, LLC as the Company’s
independent registered public accounting firm for fiscal year 2010;
and
|
|
|
3)
|
the
transaction of such other business as may properly come before the Annual
Meeting or any adjournment thereof.
|
|
By
Order of the Board of Directors,
|
|
|
/s/
Richard C. Coggins
|
|
|
Richard
C. Coggins
|
|
|
Secretary
|
|
Notice
of Annual Meeting of Shareholders
|
Cover
|
|
Proposals
to be Voted Upon
|
2
|
|
Item
1 - Election of Directors
|
2
|
|
Item
2 - Selection of Independent Registered Public Accounting
Firm
|
6
|
|
Corporate
Governance
|
7
|
|
Director
Independence
|
7
|
|
Meetings
and Committees of the Board of Directors
|
7
|
|
Director
Nominating Process
|
8
|
|
Director
Compensation
|
10
|
|
Compensation
Committee Interlocks and Insider Participation
|
10
|
|
Communications Between
Shareholders and Board of Directors
|
11
|
|
Attendance
at the Annual Meeting of Shareholders
|
11
|
|
Code
of Business Conduct and Ethics
|
11
|
|
Website
Access to Corporate Governance Documents
|
11
|
|
Audit
Committee Report
|
11
|
|
Executive
Officers
|
12
|
|
Compensation
of Executive Officers
|
14
|
|
Compensation
Discussion and Analysis
|
14
|
|
Compensation
Committee Report
|
22
|
|
Summary
Compensation Table for Fiscal Year 2009
|
23
|
|
Grants
of Plan-Based Awards
|
25
|
|
Outstanding
Equity Awards at October 3, 2009
|
26
|
|
Option
Exercises and Stock Vested in Fiscal Year 2009
|
28
|
|
Potential
Payments Upon Termination or Change in Control
|
28
|
|
Equity
Compensation Plans
|
30
|
|
Security
Ownership of Certain Beneficial Owners and Management
|
30
|
|
Section
16(a) Beneficial Ownership Reporting Compliance
|
32
|
|
Certain
Relationships and Related Transactions
|
32
|
|
Additional
Information
|
33
|
|
Director
|
||||||
|
Name
|
Age
|
Position or Office with the Company
|
Since
|
|||
|
Nominees
for Director with Terms Expiring in 2013
|
||||||
|
Robert
H. Dick *
|
66
|
Director
|
1999
|
|||
|
James
D. Ferguson
|
52
|
Director,
President and Chief Executive Officer
|
1998
|
|||
|
Robert
B. Johnston *
|
44
|
Director
|
2004
|
|||
|
Continuing
Directors with Terms Expiring in 2011
|
||||||
|
Richard
C. Coggins
|
52
|
Director,
Chief Financial Officer, VP - Finance and Secretary
|
1993
|
|||
|
Thomas
F. Grady, Jr. *
|
67
|
Director
|
1975
|
|||
|
Dan
R. Lee *
|
62
|
Director
|
2008
|
|||
|
Continuing
Directors with Terms Expiring in 2012
|
||||||
|
Guy
R. Guarch *
|
69
|
Director
|
2003
|
|||
|
Thomas
D. Henrion *
|
67
|
Director
|
1996
|
|||
|
Linda
D. Norman *
|
62
|
Director
|
2006
|
|||
|
*
|
Directors
whom the Board has determined are “independent directors” within the
meaning of the listing standards of the National Association of Securities
Dealers (the “NASD”). A majority of the directors are
“independent directors.”
|
|
ITEM
2 –
|
APPROVAL
OF THE SELECTION OF THE COMPANY’S INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
|
|
Description
|
Fiscal 2009
|
Fiscal 2008
|
||||||
|
Audit
fees
|
$ | 65,000 | $ | 65,000 | ||||
|
Audit-related
fees
|
9,500 | (1) | 9,000 | (1) | ||||
|
Tax
fees
|
12,900 | (2) | 12,200 | (2) | ||||
|
All
other fees
|
1,200 | (3) | 3,200 | (3) | ||||
|
Total
fees for all services
|
$ | 88,600 | $ | 89,400 | ||||
|
|
(1)
|
Audit-related
fees consist of fees paid for the audit of the Company’s 401(k)
plan.
|
|
|
(2)
|
Tax
fees consist of fees paid for preparation of the Company’s federal and
state income tax returns and assistance in fiscal 2008 with an IRS
notice.
|
|
|
(3)
|
All
other fees consist of fees paid for assistance with an SEC comment letter
in fiscal 2009 and a review and consent given in connection with a
registration statement on Form S-8 for the Company’s 2007 Equity Incentive
Plan in fiscal 2008.
|
|
Robert
H. Dick
|
Robert
B. Johnston
|
|
Thomas
F. Grady, Jr.
|
Dan
R. Lee
|
|
Guy
R. Guarch
|
Linda
D. Norman
|
|
Thomas
D. Henrion
|
|
|
·
|
he
or she must be over 21 years of age and under 72 years of age at the time
of election (the Company’s bylaws provide that no person shall be elected
to serve as a director for a term that will commence after such person’s
72nd birthday);
|
|
|
·
|
he
or she must have experience in a position with a high degree of
responsibility in a business or other
organization;
|
|
|
·
|
he
or she must be able to read and understand basic financial
statements;
|
|
|
·
|
he
or she must possess integrity and have high moral
character;
|
|
|
·
|
he
or she must be willing to apply sound, independent business judgment;
and
|
|
|
·
|
he
or she must have sufficient time to devote to the
Company.
|
|
|
·
|
whether
the potential nominee has leadership, strategic, or policy setting
experience in a complex organization, including any scientific,
governmental, educational, or other non-profit
organization;
|
|
|
·
|
whether
the potential nominee has experience and expertise that is relevant to the
Company’s business, including any specialized business experience,
technical expertise, or other specialized skills, and whether the
potential nominee has knowledge regarding issues affecting the
Company;
|
|
|
·
|
whether
the potential nominee is highly accomplished in his or her
field;
|
|
|
·
|
in
light of the relationship of the Company’s business to the medical science
field, whether the potential nominee has received any awards or honors in
the fields of medicine or the biological sciences and whether he or she is
recognized as a leader in medicine or the biological
sciences;
|
|
|
·
|
whether
the addition of the potential nominee to the Board of Directors would
assist the Board of Directors in achieving a mix of Board members that
represents a diversity of background and experience, including diversity
with respect to age, gender, national origin, race, and
competencies;
|
|
|
·
|
whether
the potential nominee has high ethical character and a reputation for
honesty, integrity, and sound business
judgment;
|
|
|
·
|
whether
the potential nominee is independent, as defined by NASD listing
standards, whether he or she is free of any conflict of interest or the
appearance of any conflict of interest with the best interests of the
Company and its shareholders, and whether he or she is willing and able to
represent the interests of all shareholders of the
Company;
|
|
|
·
|
whether
the potential nominee is financially sophisticated, as defined by NASD
listing standards, or qualifies as an audit committee financial expert, as
defined by SEC rules and regulations;
and
|
|
|
·
|
any
factor affecting the ability or willingness of the potential nominee to
devote sufficient time to Board activities and to enhance his or her
understanding of the Company’s
business.
|
|
Name
|
Fees Earned
or Paid in
Cash ($)
|
Stock
Awards
($)(1)
|
Total
($)
|
|||||||||
|
Robert
H. Dick
|
$ | 8,000 | $ | 13,043 | $ | 21,043 | ||||||
|
Thomas
F. Grady, Jr.
|
8,500 | 8,695 | 17,195 | |||||||||
|
Guy
R. Guarch
|
6,000 | 8,695 | 14,695 | |||||||||
|
Thomas
D. Henrion
|
6,500 | 17,390 | 23,890 | |||||||||
|
Robert
B. Johnston
|
6,500 | 8,695 | 15,195 | |||||||||
|
Linda
D. Norman
|
6,000 | 8,695 | 14,695 | |||||||||
|
Dan
R. Lee
|
8,000 | 8,695 | 16,695 | |||||||||
|
|
(1)
|
Based
on the $8.70 per share fair market value on February 23, 2009 when the
stock compensation was issued.
|
|
|
·
|
Reviewed
and discussed the audited financial statements included in the Company’s
Annual Report on Form 10-K for the year ended October 3, 2009 with the
Company’s management and independent
accountant.
|
|
|
·
|
Discussed
with the independent accountant the matters required to be discussed by
Statement on Auditing Standards No. 61, as amended, Communication with Audit
Committees (AICPA, Professional Standards,
Vol. 1. AU section 380), as adopted by the Public Company Accounting
Oversight Board in Rule 3200T.
|
|
|
·
|
Received
the written disclosures and the letter from the independent accountant
required by applicable requirements of the Public Company Accounting
Oversight Board regarding the independent accountant’s communications with
the audit committee concerning independence, and discussed with the
independent accountant its
independence.
|
|
Company
|
||||||
|
Name
|
Age
|
Company Offices Currently Held
|
Officer Since
|
|||
|
James
D. Ferguson
|
52
|
President
and Chief Executive Officer
|
1995
|
|||
|
Robert
E. Ackley
|
55
|
Vice
President of Custom Products
|
1995
|
|||
|
Richard
C. Coggins
|
52
|
Vice
President of Finance, Secretary and Chief Financial
Officer
|
1987
|
|||
|
Erick
C. Herlong
|
39
|
Vice
President of Operations
|
2001
|
|||
|
James
R. O’Reagan
|
57
|
Vice
President of R&D and Engineering
|
2001
|
|||
|
Clyde
A. Shew
|
52
|
Vice
President of Medical Sales and Marketing
|
1996
|
|||
|
Marie
Sitter
|
59
|
Vice
President of Human Resources
|
2004
|
|||
|
Wanda
J. Totton
|
|
54
|
|
Vice
President of Quality
|
|
1995
|
|
|
·
|
provide
competitive levels of compensation that integrate pay with the Company’s
annual and long-term performance
goals;
|
|
|
·
|
reward
above-average corporate
performance;
|
|
|
·
|
recognize
individual initiative, responsibility and achievements;
and
|
|
|
·
|
assist
the Company in attracting and retaining qualified
executives.
|
|
Name
|
FY 2010
Base Salary
|
|||
|
James
D. Ferguson
|
$ | 297,000 | ||
|
Richard
C. Coggins
|
191,300 | |||
|
Robert
E. Ackley
|
173,400 | |||
|
James
R. O’Reagan
|
160,775 | |||
|
Clyde
A. Shew
|
200,300 | |||
|
The
Compensation Committee
|
|
|
Thomas
F. Grady, Jr.
|
|
|
Thomas
D. Henrion
|
|
|
Robert
B. Johnston
|
|
Name
and Principal Position
|
Year
|
Salary
($)
|
Bonus
($)
(1)
|
Stock
Awards
($)
(2)
|
Option
Awards
($)(3)
|
Non-
Equity
Incentive
Plan
Compen-
sation
($)
(1)
|
All
Other
Compen-
sation ($)
(4)
|
Total
($)
|
||||||||||||||||||||||
|
James
D. Ferguson
|
2009
|
$ | 290,714 | $ | - | $ | 3,880 | $ | 10,102 | $ | 153,394 | $ | 8,134 | $ | 466,224 | |||||||||||||||
|
President
& Chief Executive Officer
|
2008
|
280,862 | - | 1,410 | - | 24,856 | 9,239 | 316,367 | ||||||||||||||||||||||
|
2007
|
263,377 | 102,454 | 2,386 | - | 66,481 | 7,122 | 441,820 | |||||||||||||||||||||||
|
Richard
C. Coggins
|
2009
|
187,083 | - | - | 8,418 | 98,715 | 4,727 | 298,943 | ||||||||||||||||||||||
|
VP
& Chief Financial Officer
|
2008
|
181,114 | - | - | - | 15,991 | 7,258 | 204,363 | ||||||||||||||||||||||
|
2007
|
170,134 | 65,890 | - | - | 42,755 | 8,043 | 286,822 | |||||||||||||||||||||||
|
Robert
E. Ackley
|
2009
|
168,875 | - | - | 6,694 | 89,122 | 3,673 | 268,364 | ||||||||||||||||||||||
|
VP -
Custom Products
|
2008
|
163,790 | - | - | - | 14,423 | 7,073 | 185,286 | ||||||||||||||||||||||
|
2007
|
156,250 | 60,223 | - | - | 39,078 | 7,680 | 263,231 | |||||||||||||||||||||||
|
James
R. O’Reagan
|
2009
|
157,358 | - | 1,438 | 6,694 | 83,027 | 5,637 | 254,154 | ||||||||||||||||||||||
|
VP -
R&D and Engineering
|
2008
|
151,393 | - | 1,438 | - | 13,453 | 7,907 | 174,191 | ||||||||||||||||||||||
|
2007
|
146,062 | 56,391 | 1,529 | - | 36,591 | 6,273 | 246,846 | |||||||||||||||||||||||
|
Clyde
A. Shew
|
2009
|
196,333 | - | - | 8,418 | 103,434 | 5,711 | 313,896 | ||||||||||||||||||||||
|
VP -
Medical Sales & Marketing
|
2008
|
191,446 | - | - | - | 16,919 | 8,509 | 216,874 | ||||||||||||||||||||||
|
2007
|
179,792 | 69,732 | - | - | 45,248 | 8,440 | 303,212 | |||||||||||||||||||||||
|
(1)
|
Payments
made for fiscal years 2009 and 2008 under the Company’s Management Bonus
Plan in accordance with the operating income targets set when awards were
made at the beginning of those fiscal years are shown in the “Non-Equity
Incentive Plan Compensation” column above. For fiscal year
2007, portions of payments made under the Management Bonus Plan in
accordance with the operating income targets set when awards were made at
the beginning of fiscal year 2007 are shown in the “Non-Equity Incentive
Plan Compensation” column above. After the conclusion of fiscal
year 2007, the Compensation Committee and the Board determined to exclude
the impairment charge related to the safety catheter segment for purposes
of determining the level of achievement of Bonus Plan operating income
targets in fiscal year 2007, resulting in higher payments. The
additional amounts paid as a result of this adjustment are shown in the
“Bonus” column above. See “Compensation Discussion and Analysis
– Incentive Compensation – Fiscal Year 2007 Bonuses”
above.
|
|
(2)
|
Awards
were made pursuant to the Company’s 2000 Restricted Stock
Plan. As provided by the plan, the number of shares awarded
equals half of the number of shares purchased by the recipient in the open
market (excluding the exercise of stock options) during the plan year for
that award. The value of each award equals the number of shares
awarded under the plan multiplied by the per share purchase price of the
Company’s Common Stock paid by the Named Officer in the purchase that
entitled him to receive the plan shares. The amount shown in
the table is the value of the portion of the award that vested in the
applicable year. Each award vests at a rate of 25% of the
restricted shares per year beginning on the last day of the plan year to
which the award pertains. Once shares vest, they are no longer
restricted within the meaning of the plan. Dividends are not
paid or accrued on non-vested
shares.
|
|
(3)
|
The
fair value of each option award is estimated on the grant date in
accordance with Statement of Financial Accounting Standards No.
123(R). Fair value was calculated using the Black-Scholes
options pricing model and the assumptions shown in “Note 1. Significant
Accounting Policies – Stock-Based Compensation” in the Notes to Financial
Statements in the Company’s Annual Report on Form 10-K for the fiscal year
ended October 3, 2009.
|
|
(4)
|
All
other compensation includes (i) contributions to the Company’s 401(k) plan
by the Company on behalf of the Named Officers to match pre-tax deferral
contributions from the Named Officers, all of which are vested, (ii) life
insurance premiums for both the term and non-term portions of the premium
paid by the Company on behalf of the Named Officers, (iii) payments to
cover Medicare income tax liabilities incurred by the Named Officers in
connection with the exercise of stock options and the vesting of
restricted stock awards and (iv) in the case of Mr. Ferguson, payment for
tax return preparation services, all as set forth in the following
table.
|
|
Name
|
Year
|
401(k)
|
Life
Insurance
|
Medicare
Taxes
on
Options
and
Restricted
Stock
|
Tax
Return
Preparation
|
Total
|
||||||||||||||||
|
James
D. Ferguson
|
2009
|
$ | 6,107 | $ | 1,130 | $ | 72 | $ | 825 | $ | 8,134 | |||||||||||
|
2008
|
7,447 | 1,145 | 22 | 625 | 9,239 | |||||||||||||||||
|
2007
|
3,333 | 1,145 | 1,969 | 675 | 7,122 | |||||||||||||||||
|
Richard
C. Coggins
|
2009
|
3,931 | 796 | - | - | 4,727 | ||||||||||||||||
|
2008
|
6,447 | 811 | - | - | 7,258 | |||||||||||||||||
|
2007
|
5,534 | 811 | 1,698 | - | 8,043 | |||||||||||||||||
|
Robert
E. Ackley
|
2009
|
2,744 | 929 | - | - | 3,673 | ||||||||||||||||
|
2008
|
6,129 | 944 | - | - | 7,073 | |||||||||||||||||
|
2007
|
5,112 | 944 | 1,624 | - | 7,680 | |||||||||||||||||
|
James
R. O’Reagan
|
2009
|
3,852 | 1,761 | 24 | - | 5,637 | ||||||||||||||||
|
2008
|
6,109 | 1,776 | 22 | - | 7,907 | |||||||||||||||||
|
2007
|
4,463 | 1,776 | 34 | - | 6,273 | |||||||||||||||||
|
Clyde
A. Shew
|
2009
|
4,122 | 1,589 | - | - | 5,711 | ||||||||||||||||
|
2008
|
6,905 | 1,604 | - | - | 8,509 | |||||||||||||||||
|
2007
|
5,223 | 1,604 | 1,613 | - | 8,440 | |||||||||||||||||
|
All
Other
|
||||||||||||||||||||||||||||||
|
All
Other
|
Option
|
Exer-
|
||||||||||||||||||||||||||||
|
Stock
|
Awards:
|
cise
or
|
Grant
|
|||||||||||||||||||||||||||
|
Awards:
|
Number
|
Base
|
Date
Fair
|
|||||||||||||||||||||||||||
|
Estimated
Future Payouts
|
Number
|
of
Secu-
|
Price
|
Value
of
|
||||||||||||||||||||||||||
|
Under
Non-Equity
|
of
Shares
|
rities
|
of
|
Stock
and
|
||||||||||||||||||||||||||
|
Incentive
Plan Awards
|
of
Stock
|
Underly-
|
Option
|
Option
|
||||||||||||||||||||||||||
|
Name
|
Grant
Date
(1)
|
Threshold
($)
|
Target
($)(2)
|
Maximum
($)
|
or
Units
(#)
(3)
|
ing
Options
(#)
|
Awards
($/Sh)
|
Awards
(4) |
||||||||||||||||||||||
|
James
D. Ferguson
|
||||||||||||||||||||||||||||||
|
Restricted
Stock
|
01/26/09
|
1,000 | $ | 10,660 | ||||||||||||||||||||||||||
|
Bonus
Plan
|
11/05/08
|
$ | 0 | $ | 73,150 | (2 | ) | |||||||||||||||||||||||
|
Equity
Plan Option
|
02/11/09
|
3,000 | $ | 9.34 | 10,102 | |||||||||||||||||||||||||
|
Richard
C. Coggins
|
||||||||||||||||||||||||||||||
|
Bonus
Plan
|
11/05/08
|
0 | 47,075 | (2 | ) | |||||||||||||||||||||||||
|
Equity
Plan Option
|
02/11/09
|
2,500 | 9.34 | 8,418 | ||||||||||||||||||||||||||
|
Robert
E. Ackley
|
||||||||||||||||||||||||||||||
|
Bonus
Plan
|
11/05/08
|
0 | 42,500 | (2 | ) | |||||||||||||||||||||||||
|
Equity
Plan Option
|
02/11/09
|
2,000 | 9.34 | 6,694 | ||||||||||||||||||||||||||
|
James
R. O’Reagan
|
||||||||||||||||||||||||||||||
|
Bonus
Plan
|
11/05/08
|
0 | 39,594 | (2 | ) | |||||||||||||||||||||||||
|
Equity
Plan Option
|
02/11/09
|
2,000 | 9.34 | 6,694 | ||||||||||||||||||||||||||
|
Clyde
A. Shew
|
||||||||||||||||||||||||||||||
|
Bonus
Plan
|
11/05/08
|
0 | 49,325 | (2 | ) | |||||||||||||||||||||||||
|
Equity
Plan Option
|
02/11/09
|
2,500 | 9.34 | 8,418 | ||||||||||||||||||||||||||
|
|
(1)
|
The
Grant Date shown in the table above is (a) in the case of stock awards,
the date on which the Named Officer purchased shares of Company stock
entitling him to an award under the Company’s 2000 Restricted Stock Plan,
(b) in the case of Management Bonus Plan awards, the date on which the
Board approved the bonus plan for fiscal 2009, or (c) in the case of
option awards, the date on which the option was
granted.
|
|
|
(2)
|
Bonuses
for fiscal year 2009 were based on the Company’s achievement of operating
profit performance in relation to its operating plan. The
target amount shown in the table above for each Named Officer equals 25%
of the Named Officer’s base salary on the date of his fiscal 2009 salary
review, which was December 1, 2008. Under the bonus plan
formula, there is no cap on the maximum bonus that can be earned in a
fiscal year. Historically, the largest bonuses ever earned were
63.4% of each Named Officer’s base salary. Actual bonus payouts
for fiscal year 2009 were 52.4% of each Named Officer’s base salary and
are shown in the Summary Compensation Table above. For
additional information on the bonus plan, see the discussion above in the
Compensation Discussion and Analysis under the heading “Incentive
Compensation – The Management Bonus
Plan.”
|
|
|
(3)
|
The
shares shown in the “All Other Stock Awards” column are shares of
restricted stock that were awarded to Mr. Ferguson for the Company’s 2009
fiscal year pursuant to the 2000 Restricted Stock Plan. 25% of
these shares vested on October 3, 2009, and an additional 25% will vest on
the last day of each of the next three fiscal
years.
|
|
|
(4)
|
The
Grant Date Fair Value shown in the right-hand column above is determined
using (a) in the case of stock awards, the closing price of the Company’s
common stock on the award date described in note (3) above or (b) in the
case of option awards, the fair value calculated in accordance with FAS
123R as described in note (3) of the Summary Compensation Table
above.
|
|
Option Awards
|
Stock Awards
|
||||||||||||||||||||||
|
Market
|
|||||||||||||||||||||||
|
Number
|
Value
of
|
||||||||||||||||||||||
|
Number
of
|
Number
of
|
of
Shares
|
Shares
or
|
||||||||||||||||||||
|
Securities
|
Securities
|
or
Units
|
Units
of
|
||||||||||||||||||||
|
Underlying
|
Underlying
|
of
Stock
|
Stock
|
||||||||||||||||||||
|
Unexercised
|
Unexercised
|
That
Have
|
That
Have
|
||||||||||||||||||||
|
Options
|
Options
|
Option
|
Option
|
Not
|
Not
|
||||||||||||||||||
|
Grant
|
(#) | (#)(1) |
Exercise
|
Expiration
|
Vested
|
Vested
|
|||||||||||||||||
|
Name
|
Date
|
Exercisable
|
Unexercisable
|
Price
|
Date
|
(#)(2) |
($)
|
||||||||||||||||
|
Ferguson
|
02/02/00
|
6,455 | - | $ | 2.75 |
02/02/10
|
|||||||||||||||||
|
01/31/01
|
7,751 | - | 4.20 |
01/31/11
|
|||||||||||||||||||
|
02/01/02
|
5,164 | - | 4.30 |
02/01/12
|
|||||||||||||||||||
|
02/14/03
|
6,458 | - | 6.18 |
02/14/13
|
|||||||||||||||||||
|
02/11/04
|
4,519 | - | 10.52 |
02/11/14
|
|||||||||||||||||||
|
02/10/05
|
4,519 | - | 9.18 |
02/10/15
|
|||||||||||||||||||
|
08/07/06
|
3,551 | - | 9.67 |
08/07/16
|
|||||||||||||||||||
|
02/11/09
|
1,000 | 2,000 | 9.34 |
02/11/19
|
|||||||||||||||||||
|
12/18/07
|
250 | $ | 3,383 | ||||||||||||||||||||
|
01/26/09
|
750 | 10,148 | |||||||||||||||||||||
|
Sub-total
|
39,417 | 2,000 | 1,000 | $ | 13,531 | ||||||||||||||||||
|
Coggins
|
02/02/00
|
5,164 | - | 2.75 |
02/02/10
|
||||||||||||||||||
|
01/31/01
|
6,459 | - | 4.20 |
01/31/11
|
|||||||||||||||||||
|
02/01/02
|
3,873 | - | 4.30 |
02/01/12
|
|||||||||||||||||||
|
02/14/03
|
3,875 | - | 6.18 |
02/14/13
|
|||||||||||||||||||
|
02/11/04
|
2,582 | - | 10.52 |
02/11/14
|
|||||||||||||||||||
|
02/10/05
|
2,582 | - | 9.18 |
02/10/15
|
|||||||||||||||||||
|
08/07/06
|
2,583 | - | 9.67 |
08/07/16
|
|||||||||||||||||||
|
02/11/09
|
1,000 | 1,500 | 9.34 |
02/11/19
|
|||||||||||||||||||
|
Sub-total
|
28,118 | 1,500 | |||||||||||||||||||||
|
Ackley
|
01/31/01
|
5,167 | - | 4.20 |
01/31/11
|
||||||||||||||||||
|
02/01/02
|
2,582 | - | 4.30 |
02/01/12
|
|||||||||||||||||||
|
02/14/03
|
3,229 | - | 6.18 |
02/14/13
|
|||||||||||||||||||
|
02/11/04
|
2,582 | - | 10.52 |
02/11/14
|
|||||||||||||||||||
|
02/10/05
|
2,582 | - | 9.18 |
02/10/15
|
|||||||||||||||||||
|
08/07/06
|
2,583 | - | 9.67 |
08/07/16
|
|||||||||||||||||||
|
02/11/09
|
1,000 | 1,000 | 9.34 |
02/11/19
|
|||||||||||||||||||
|
Sub-total
|
19,725 | 1,000 | |||||||||||||||||||||
|
Option Awards
|
Stock Awards
|
||||||||||||||||||||||
|
Market
|
|||||||||||||||||||||||
|
Number
|
Value
of
|
||||||||||||||||||||||
|
Number
of
|
Number
of
|
of
Shares
|
Shares
or
|
||||||||||||||||||||
|
Securities
|
Securities
|
or
Units
|
Units
of
|
||||||||||||||||||||
|
Underlying
|
Underlying
|
of
Stock
|
Stock
|
||||||||||||||||||||
|
Unexercised
|
Unexercised
|
That
Have
|
That
Have
|
||||||||||||||||||||
|
Options
|
Options
|
Option
|
Option
|
Not
|
Not
|
||||||||||||||||||
|
Grant
|
(#) |
(#)(1)
|
Exercise
|
Expiration
|
Vested
|
Vested
|
|||||||||||||||||
|
Name
|
Date
|
Exercisable
|
Unexercisable
|
Price
|
Date
|
(#)(2)
|
($)
|
||||||||||||||||
|
O’Reagan
|
06/21/01
|
12,916 | - | 3.81 |
06/21/11
|
||||||||||||||||||
|
02/14/03
|
3,229 | - | 6.18 |
02/14/13
|
|||||||||||||||||||
|
02/11/04
|
2,582 | - | 10.52 |
02/11/14
|
|||||||||||||||||||
|
02/10/05
|
2,582 | - | 9.18 |
02/10/15
|
|||||||||||||||||||
|
08/07/06
|
2,583 | - | 9.67 |
08/07/16
|
|||||||||||||||||||
|
02/11/09
|
1,000 | 1,000 | 9.34 |
02/11/19
|
|||||||||||||||||||
|
02/04/08
|
250 | $ | 3,383 | ||||||||||||||||||||
|
Sub-total
|
24,892 | 1,000 | |||||||||||||||||||||
|
Shew
|
01/31/01
|
5,167 | - | 4.20 |
01/31/11
|
||||||||||||||||||
|
02/01/02
|
3,873 | - | 4.30 |
02/01/12
|
|||||||||||||||||||
|
02/14/03
|
3,875 | - | 6.18 |
02/14/13
|
|||||||||||||||||||
|
02/11/04
|
2,582 | - | 10.52 |
02/11/14
|
|||||||||||||||||||
|
02/10/05
|
2,582 | - | 9.18 |
02/10/15
|
|||||||||||||||||||
|
08/07/06
|
2,583 | - | 9.67 |
08/07/16
|
|||||||||||||||||||
|
02/11/09
|
1,000 | 1,500 | 9.34 |
02/11/19
|
|||||||||||||||||||
|
Sub-total
|
21,662 | 1,500 | |||||||||||||||||||||
|
Total
|
133,814 | 7,000 | |||||||||||||||||||||
|
(1)
|
The
unexercisable options shown above will vest at the rate of 1,000 shares
per year for each participant beginning on July 1,
2010.
|
|
(2)
|
The
shares shown in the “Stock Awards” columns are shares of restricted stock
that were awarded pursuant to the 2000 Restricted Stock
Plan. 25% of each award vested on the last day of the fiscal
year in which the recipient purchased shares on the open market giving
rise to his right to receive plan shares, and an additional 25% vests on
the last day of each of the next three fiscal
years.
|
|
Stock Awards
|
||||||||
|
Name
|
Number of
Shares
Acquired
on Vesting
(#)
|
Value
Realized
on Vesting
($) (1)
|
||||||
|
James
D. Ferguson
|
375 | $ | 4,965 | |||||
|
Richard
C. Coggins
|
- | - | ||||||
|
Robert
E. Ackley
|
- | - | ||||||
|
James
R. O’Reagan
|
125 | 1,655 | ||||||
|
Clyde
A. Shew
|
- | - | ||||||
|
(1)
|
The
“value realized” on vesting for restricted stock awards is the market
value of the Common Stock on the date of
vesting.
|
|
Life
|
||||||||||||||||||||||||||||
|
Accrued
|
Insurance
|
|||||||||||||||||||||||||||
|
Compen-
|
Annual Compensation
|
Lost
|
Option
|
Death
|
||||||||||||||||||||||||
|
Name
|
sation (1)
|
Salary
|
Bonus
|
Benefits
|
Vesting (2)
|
Total
|
Benefit
|
|||||||||||||||||||||
|
Ferguson
|
$ | 153,394 | $ | 585,180 | $ | 231,457 | $ | 29,259 | $ | 7,800 | $ | 1,007,090 | $ | 95,351 | ||||||||||||||
|
Coggins
|
98,715 | 376,600 | 148,901 | 18,830 | 5,850 | 648,896 | 98,016 | |||||||||||||||||||||
|
Ackley
|
89,122 | 170,000 | 67,615 | 17,000 | 3,900 | 347,637 | 98,365 | |||||||||||||||||||||
|
O’Reagan
|
83,027 | 158,375 | 63,154 | 15,838 | 3,900 | 324,294 | 94,178 | |||||||||||||||||||||
|
Shew
|
103,434 | 197,300 | 78,444 | 19,730 | 5,850 | 404,758 | 92,248 | |||||||||||||||||||||
|
|
(1)
|
The
amount shown represents the fiscal year 2009 non-equity incentive
compensation earned under the Company’s Management Bonus Plan but unpaid
as of October 3, 2009.
|
|
|
(2)
|
The
amount shown represents the aggregate amount of the differences between
the market value of the Common Stock on October 3, 2009 and the exercise
prices of unvested options that would have vested as a result of
involuntary termination following a change of control at October 3,
2009.
|
|
Plan category
|
Number of
securities to be
issued upon
exercise of
outstanding
options, warrants
and rights
|
Weighted-average
exercise price of
outstanding options,
warrants and rights
|
Number of securities
remaining available for
future issuance under
equity compensation
plans (excluding
securities reflected in
column (a))
|
|||||||||
|
(a)(1)
|
(b)
|
(c)(2)
|
||||||||||
|
Equity
compensation plans approved by security holders (1)
|
211,336 | $ | 6.83 | 331,381 | ||||||||
|
Equity compensation plans not approved by security
holders
|
0 | 0 | 0 | |||||||||
|
Total
|
211,336 | $ | 6.83 | 331,381 | ||||||||
|
(1)
|
Includes
(a) options granted under the 1991 Stock Option Plan, which plan expired
in 2001, (b) options granted under the 1997 Stock Option Plan, which plan
expired in 2007 and (c) options granted under the 2007 Equity Incentive
Plan.
|
|
(2)
|
Includes
(a) 86,381 shares available for issuance under the 2000 Restricted Stock
Plan, which will expire on February 2, 2010, (b) 17,500 shares available
for issuance under the 2005 Non-Employee Director Stock Plan, which
expired on December 31, 2009 and (c) 227,500 shares available for issuance
under the 2007 Equity Incentive Plan. Excluding the securities
available for issuance as of October 3, 2009 under the 2005 Non-Employee
Director Stock Plan, which are no longer available for issuance because of
the expiration of the plan on December 31, 2009, the number in column (c)
would be 313,881.
|
|
Amount/Nature
|
||||||||
|
Name
and Address
|
of
Beneficial
|
Percent
|
||||||
|
of Beneficial Owner
|
Ownership
|
of class
|
||||||
|
Beneficial Owners of More Than 5% of the Company’s
Common Stock
|
||||||||
|
Anita
G. Zucker, Trustee
|
208,800 | (1) | 7.7 | % | ||||
|
16
Buckingham Drive
|
||||||||
|
Charleston,
SC 29407
|
||||||||
|
Amount/Nature
|
||||||||
|
Name
and Address
|
of
Beneficial
|
Percent
|
||||||
|
of Beneficial Owner
|
Ownership
|
of class
|
||||||
|
Beneficial Owners of More Than 5% of the Company’s
Common Stock (Continued)
|
||||||||
|
Thomas
D. Henrion
|
160,144 | (2) | 5.9 | % | ||||
|
1309
Park Shore Road
|
||||||||
|
La
Grange, KY 40031
|
||||||||
|
Douglas
E. Kennemore, M.D.
|
159,810 | (3) | 5.9 | % | ||||
|
117
Rockingham Rd.
|
||||||||
|
Greenville,
SC 29607
|
||||||||
|
Santa
Monica Partners, LP
|
150,432 | (4) | 5.5 | % | ||||
|
1865
Palmer Avenue
|
||||||||
|
Larchmont,
NY 10538
|
||||||||
|
Directors and Nominees
|
||||||||
|
Richard
C. Coggins
|
69,866 | (5) | 2.5 | % | ||||
|
Robert
H. Dick
|
20,000 | (6) | * | |||||
|
James
D. Ferguson
|
96,061 | (7) | 3.5 | % | ||||
|
Thomas
F. Grady, Jr.
|
40,595 | 1.5 | % | |||||
|
Guy
R. Guarch
|
9,000 | * | ||||||
|
Thomas
D. Henrion
|
160,144 | (2) | 5.9 | % | ||||
|
Robert
B. Johnston
|
214,800 | (8) | 7.9 | % | ||||
|
Dan
R. Lee
|
3,000 | * | ||||||
|
Linda
Norman
|
4,000 | * | ||||||
|
Named Officers
|
||||||||
|
James
D. Ferguson
|
96,061 | (7) | 3.5 | % | ||||
|
Robert
E. Ackley
|
25,993 | (9) | 1.0 | % | ||||
|
Richard
C. Coggins
|
69,866 | (5) | 2.5 | % | ||||
|
James
R. O’Reagan
|
29,442 | (10) | 1.1 | % | ||||
|
Clyde
A. Shew
|
40,619 | (11) | 1.5 | % | ||||
|
Directors and Executive Officers as a
Group
|
||||||||
|
All
Directors and Executive
|
768,977 | (12) | 26.6 | % | ||||
|
Officers
of the Company as a
|
||||||||
|
Group
(15 persons)
|
||||||||
|
(1)
|
The
amount shown as beneficially owned by Mrs. Anita G. Zucker is based on her
Schedule 13D filed on May 14, 2008.
|
|
(2)
|
The
amount shown as beneficially owned by Mr. Henrion includes 6,000 shares
owned by his spouse. Mr. Henrion disclaims beneficial
ownership with respect to the shares owned by his
spouse.
|
|
(3)
|
Dr.
Kennemore is a former director of the Company who retired from the
Board.
|
|
(4)
|
The
amount shown as beneficially owned by Santa Monica Partners, LP is based
on its Schedule 13D/A filed on July 17,
2002.
|
|
(5)
|
The
amount shown as beneficially owned by Mr. Coggins includes 28,118 shares
subject to options held by Mr. Coggins which are exercisable within 60
days of the Record Date.
|
|
(6)
|
The
amount shown as beneficially owned by Mr. Dick includes 1,000 shares held
in an IRA account.
|
|
(7)
|
The
amount shown as beneficially owned by Mr. Ferguson includes 39,417 shares
subject to options held by Mr. Ferguson which are exercisable within 60
days of the Record Date.
|
|
(8)
|
The
amount shown as beneficially owned by Mr. Johnston consists of 6,000
shares owned directly by Mr. Johnston and 208,800 shares owned directly by
Mrs. Anita G. Zucker who controls The InterTech Group, Inc., Mr.
Johnston’s employer. Mr. Johnston disclaims beneficial
ownership with respect to the shares owned by Mrs.
Zucker.
|
|
(9)
|
The
amount shown as beneficially owned by Mr. Ackley includes 19,725 shares
subject to options held by Mr. Ackley which are exercisable within 60 days
of the Record Date.
|
|
(10)
|
The
amount shown as beneficially owned by Mr. O’Reagan includes 24,892 shares
subject to options held by Mr. O’Reagan which are exercisable within 60
days of the Record Date.
|
|
(11)
|
The
amount shown as beneficially owned by Mr. Shew includes 21,662 shares
subject to options held by Mr. Shew which are exercisable within 60 days
of the Record Date and 2,400 shares indirectly held by Mr. Shew as
custodian for a minor child. Mr. Shew disclaims beneficial
ownership with respect to the custodial
shares.
|
|
(12)
|
The
amount shown as beneficially owned by all directors and executive officers
as a group includes 174,905 shares subject to options held by such persons
which are exercisable within 60 days of the Record
Date.
|
|
*
|
Less
than one percent.
|
|
By
Order of the Board of Directors
|
|
|
/s/
Richard C. Coggins
|
|
|
Richard
C. Coggins
|
|
|
Secretary
|


