| Sincerely, | |
|
|
|
| Jeffrey S. Schoen President and Chief Executive Officer |
|
| By Order of the Board of Directors | |
|
|
|
| Jeffrey S. Schoen President and Chief Executive Officer |
|
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 6 | | | |
| | | | | 6 | | | |
| | | | | 7 | | | |
| | | | | 8 | | | |
| | | | | 16 | | | |
| | | | | 17 | | | |
| | | | | 17 | | | |
| | | | | 17 | | | |
| | | | | 26 | | | |
| | | | | 26 | | | |
| | | | | 31 | | | |
| | | | | 33 | | | |
| | | | | 34 | | | |
| | | | | 35 | | | |
| | | | | 38 | | | |
| | | | | 39 | | | |
| | | | | 41 | | | |
| | | | | 42 | | | |
| | | | | 48 | | | |
| | | | | 48 | | | |
| | | | | 48 | | | |
| | | | | 49 | | |
Name of Beneficial Owner
|
| |
Number of
Shares Beneficially Owned |
| |
Percent
Beneficially Owned |
| ||||||
Mario Armando Garcia(1)
4826 Hunt Street Pryor, OK 74361 |
| | | | 706,083 | | | | | | 6.6% | | |
Name of Beneficial Owner
|
| |
Number of
Shares Beneficially Owned |
| |
Percent
Beneficially Owned |
| ||||||
Mario Armando Garcia(1)
|
| | | | 706,083 | | | | | | 6.6% | | |
Jeffrey S. Schoen(2)
|
| | | | 197,389 | | | | | | 1.8% | | |
Douglas E. Hailey(3)
|
| | | | 102,900 | | | | | | 1.0% | | |
Steven R. Berlin(4)
|
| | | | 99,902 | | | | | | * | | |
John C. Guttilla(5)
|
| | | | 61,250 | | | | | | * | | |
Mark Ravich(6)
|
| | | | 43,746 | | | | | | * | | |
Elaine MacDonald(7)
|
| | | | 25,000 | | | | | | * | | |
Rodney D. Gloss(8)
|
| | | | 20,934 | | | | | | * | | |
All directors and executive officers as a group (8 persons)
|
| | | | 1,257,204 | | | | | | 11.4% | | |
Name
|
| |
Age
|
| |
Director Since
|
| |
Present Position with Orchids
|
|
Steven R. Berlin | | |
73
|
| |
2005
|
| | Chairman of the Board | |
Mario Armando Garcia | | |
66
|
| |
2014
|
| | Director | |
John C. Guttilla | | |
61
|
| |
2005
|
| | Director | |
Douglas E. Hailey | | |
55
|
| |
2004
|
| | Director | |
Elaine MacDonald | | |
55
|
| |
2013
|
| | Director | |
Mark Ravich | | |
65
|
| |
2013
|
| | Director | |
Jeffrey S. Schoen | | |
57
|
| |
2007
|
| | CEO, President and Director | |
| | |
2016
|
| |
2017
|
| |
Percentage
Change |
| |||||||||
Jeffrey S. Schoen
|
| | | $ | 400,000 | | | | | $ | 460,000 | | | | | | 15.0% | | |
Rodney D. Gloss
|
| | | $ | 215,000 | | | | | $ | 215,000 | | | | | | 0.0% | | |
| | |
Actual
2016 |
| |
Actual
2017 |
| |
Percentage
Change |
| |
Targeted
2017 |
| ||||||||||||
Jeffrey S. Schoen
|
| | | $ | 137,280 | | | | | $ | — | | | | | | -100.0% | | | | | $ | 276,000 | | |
Rodney D. Gloss
|
| | | $ | 16,397 | | | | | $ | — | | | | | | -100.0% | | | | | $ | 86,000 | | |
|
Adjusted EBITDA Performance Thresholds(1)
|
| |||
|
2017 Goals
|
| |
Percent of
EBITDA bonus achieved |
|
|
< $35,000,000
|
| |
0%
|
|
|
$35,000,000
|
| |
50%
|
|
|
$37,500,000
|
| |
100%
|
|
|
$41,500,000
|
| |
150%
|
|
| | |
Vested
Year-end 2017 |
| |
2018
|
| |
2019
|
| |
2020
|
| |
Market-Based(1)
|
| |
Total Options
|
| ||||||||||||||||||
Jeffrey S. Schoen(2)
|
| | | | 157,500 | | | | | | 10,000 | | | | | | 10,000 | | | | | | | | | | | | 300,000 | | | | | | 477,500 | | |
Rodney D. Gloss(3)
|
| | | | 4,000 | | | | | | 4,000 | | | | | | 4,000 | | | | | | 4,000 | | | | | | — | | | | | | 16,000 | | |
Name and Principal Position
|
| |
Year
|
| |
Salary
|
| |
Option
Awards(1) |
| |
Non-Equity
Incentive Plan Compensation(2) |
| |
All Other
Compensation |
| |
Total
|
| ||||||||||||||||||
Jeffrey S. Schoen
Current President and Chief Executive Officer |
| | | | 2017 | | | | | $ | 460,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 20,186(5) | | | | | $ | 480,186 | | |
| | | 2016 | | | | | $ | 400,000 | | | | | $ | — | | | | | $ | 137,280 | | | | | $ | 18,087(6) | | | | | $ | 555,367 | | | ||
| | | 2015 | | | | | $ | 400,000 | | | | | $ | 368,500(3) | | | | | $ | 195,610 | | | | | $ | 18,858(7) | | | | | $ | 982,968 | | | ||
Rodney D. Gloss(10)
Chief Financial Officer |
| | | | 2017 | | | | | $ | 215,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 16,745(8) | | | | | $ | 231,745 | | |
| | | 2016 | | | | | $ | 66,154 | | | | | $ | 90,680(4) | | | | | $ | 16,397 | | | | | $ | 75,645(9) | | | | | $ | 248,876 | | |
| | | | | |
Estimated future payouts under non-equity
incentive plan awards(1) |
| |||||||||||||||
Name
|
| |
Grant Date
|
| |
Threshold ($)
|
| |
Target ($)
|
| |
Maximum ($)
|
| |||||||||
Jeffrey S. Schoen
|
| |
March 24, 2017
|
| | | $ | 230,000 | | | | | $ | 460,000 | | | | | $ | 460,000 | | |
Rodney D. Gloss
|
| |
March 24, 2017
|
| | | $ | 64,500 | | | | | $ | 129,000 | | | | | $ | 129,000 | | |
| | | | | |
Option Awards
|
| ||||||||||||||||||||||||
| | |
Grant
Date(1) |
| |
Number of
Securities Underlying Unexercised Options Exercisable (#) |
| |
Number of
Securities Underlying Unexercised Options Unexercisable (#) |
| |
Equity Incentive
Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date(1) |
| ||||||||||||
Jeffrey S. Schoen
|
| | May 19, 2009 | | | | | 3,750 | | | | | | — | | | | | | — | | | | | $ | 17.60 | | | | May 19, 2019 | |
| | | May 19, 2010 | | | | | 3,750 | | | | | | — | | | | | | — | | | | | $ | 13.84 | | | | May 19, 2020 | |
| | | May 17, 2012 | | | | | 5,000 | | | | | | — | | | | | | — | | | | | $ | 17.845 | | | | May 17, 2022 | |
| | | May 16, 2013 | | | | | 15,000 | | | | | | — | | | | | | — | | | | | $ | 22.95 | | | | May 16, 2023 | |
| | |
November 8, 2013
|
| | | | 100,000 | | | | | | — | | | | | | 300,000 | | | | | $ | 30.25 | | | |
November 8, 2023
|
|
| | |
November 12, 2015
|
| | | | 30,000 | | | | | | 20,000 | | | | | | — | | | | | $ | 29.575 | | | |
November 12, 2025
|
|
Rodney D. Gloss
|
| |
September 12, 2016
|
| | | | 8,000 | | | | | | 12,000 | | | | | | — | | | | | $ | 28.48 | | | |
September 12, 2026
|
|
| | |
Grant
Date(1) |
| |
Number
of Stock Options Granted |
| |
Vesting Period
|
| ||||||||||||||||||||||||||||||||||||
| | |
Prior to
2017 |
| |
2017
|
| |
2018
|
| |
2019
|
| |
2020
|
| |
Market-Based(2)
|
| |||||||||||||||||||||||||||
Jeffrey S. Schoen
|
| | May 19, 2009 | | | | | 3,750 | | | | | | 3,750 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | May 19, 2010 | | | | | 3,750 | | | | | | 3,750 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | May 17, 2012 | | | | | 5,000 | | | | | | 5,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | May 16, 2013 | | | | | 15,000 | | | | | | 15,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
November 8, 2013
|
| | | | 400,000 | | | | | | 100,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 300,000 | | |
| | |
November 12, 2015
|
| | | | 50,000 | | | | | | 20,000 | | | | | | 10,000 | | | | | | 10,000 | | | | | | 10,000 | | | | | | — | | | | | | — | | |
Rodney D. Gloss
|
| |
September 12, 2016
|
| | | | 20,000 | | | | | | 4,000 | | | | | | 4,000 | | | | | | 4,000 | | | | | | 4,000 | | | | | | 4,000 | | | | | | — | | |
| | |
Option Awards
|
| |||||||||
Name
|
| |
Number of
Shares Acquired on Exercise (#) |
| |
Value Realized
on Exercise ($) |
| ||||||
Jeffrey S. Schoen
|
| | | | 11,250 | | | | | $ | 140,663 | | |
| | |
Termination
With Cause |
| |
Termination
Due to Death or Disability |
| |
Termination
Without Cause or For Good Reason Within 12 Months After Change In Control(1) |
| |
Termination
Without Cause or For Good Reason More Than 12 Months After Change In Control |
| |
Termination
Without Cause |
| |
Termination
For Good Reason |
| |
Termination
By Employee Other than For Good Reason |
| ||||||||||||||||||
Jeffrey S. Schoen
|
| | $— | | | | $ | — | | | | | $ | 1,192,890(2) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Rodney D. Gloss
|
| | $— | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
|
Type of Fee
|
| | | | | | |
|
Non-employee Director (other than Chairman)
|
| | | $ | 30,000 | | |
|
Chairman of the Board of Directors
|
| | | $ | 50,000 | | |
|
Chairman of the Audit Committee
|
| | | $ | 10,000 | | |
|
Member of the Audit Committee
|
| | | $ | 5,000 | | |
|
Chairman of the Compensation Committee
|
| | | $ | 5,000 | | |
|
Chairman of the Nominating and Corporate Governance Committee
|
| | | $ | 5,000 | | |
| Board Meeting Attended by Director: | | | |||||
|
Attended in person
|
| | | $ | 1,200 | | |
|
Attended by telephone
|
| | | $ | 600 | | |
| Audit, Compensation or Nominating and Corporate Governance Committee Meetings: | | | |||||
|
Attended in person if it is not in conjunction with a full Board meeting
|
| | | $ | 1,200 | | |
|
Attended by telephone
|
| | | $ | 600 | | |
|
Special Committees(1)
|
| | | $ | 5,000 | | |
Name
|
| |
Fees Earned
or Paid in Cash ($) |
| |
Option
Awards ($)(1) |
| |
All Other
Compensation ($) |
| |
Total
|
| ||||||||||||
Steven R. Berlin(2)
|
| | | $ | 78,000 | | | | | $ | 51,000 | | | | | $ | — | | | | | $ | 129,000 | | |
Mario Armando Garcia(3)
|
| | | $ | 37,800 | | | | | $ | 17,000 | | | | | $ | — | | | | | $ | 54,800 | | |
John C. Guttilla(4)
|
| | | $ | 49,400 | | | | | $ | 17,000 | | | | | $ | — | | | | | $ | 66,400 | | |
Douglas E. Hailey(5)
|
| | | $ | 44,400 | | | | | $ | 17,000 | | | | | $ | — | | | | | $ | 61,400 | | |
Elaine MacDonald(6)
|
| | | $ | 50,000 | | | | | $ | 17,000 | | | | | $ | — | | | | | $ | 67,000 | | |
Mark H. Ravich(7)
|
| | | $ | 56,200 | | | | | $ | 17,000 | | | | | $ | — | | | | | $ | 73,200 | | |
Plan Category
|
| |
Number of securities to
be issued upon exercise of outstanding options, warrants and rights (a) |
| |
Weighted-average
exercise price of outstanding options, warrants and rights (b) |
| |
Number of securities
remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a) |
| |||||||||
Equity compensation plans approved
by security holders |
| | | | 939,425 | | | | | $ | 26.41 | | | | | | 49,575 | | |
Equity compensation plans not
approved by security holders |
| | | | — | | | | | | | | | | | | — | | |
Total
|
| | | | 939,425 | | | | | | | | | | | | 49,575 | | |
|
| | |
Audit Fees(1)
|
| |
Audit-Related Fees(2)
|
| |
Tax Fees(3)
|
| |
All Other Fees
|
| ||||||||||||
2017
|
| | | $ | 172,600 | | | | | $ | 47,875(4) | | | | | $ | — | | | | | $ | — | | |
2016
|
| | | $ | 137,949 | | | | | $ | 16,000 | | | | | $ | — | | | | | $ | — | | |
| | |
Fiscal 2015
|
| |
Fiscal 2016
|
| |
Fiscal 2017
|
| |
Three Year
Average |
| ||||||||||||
Option awards
|
| | | | 136,600 | | | | | | 65,000 | | | | | | 116,500 | | | | | | 106,033 | | |
Common stock outstanding at fiscal year-end
|
| | | | 10,268,891 | | | | | | 10,296,891 | | | | | | 10,670,348 | | | | | | 10,412,043 | | |
Run rate
|
| | | | 1.3% | | | | | | 0.6% | | | | | | 1.1% | | | | | | 1.0% | | |
Award Recipient
|
| |
Number of Options Awarded Under
the Stock Incentive Plan |
| |||
Named Executive Officers: | | | |||||
Jeffrey Schoen
|
| | | | 50,000 | | |
Rodney Gloss
|
| | | | 20,000 | | |
Named Executive Officers as a group
|
| | |
|
70,000
|
| |
Current directors who are not Named Executive Officers: | | | |||||
Steve Berlin
|
| | | | 60,000 | | |
Mario Garcia
|
| | | | 20,000 | | |
John Guttilla
|
| | | | 20,000 | | |
Doug Hailey
|
| | | | 20,000 | | |
Elaine MacDonald
|
| | | | 20,000 | | |
Mark Ravich
|
| | | | 20,000 | | |
Total
|
| | | | 160,000 | | |
All employees, including officers who are not Named Executive Officers, as a group
|
| | |
|
128,100
|
| |
Former executive officers, as a group
|
| | |
|
5,000
|
| |
Total
|
| | |
|
363,100
|
| |
| As of December 31, 2017: | | | |||||
|
Shares reserved for issuance under the 2014 Plan
|
| | | | 400,000 | | |
|
Options granted and exercised
|
| | | | (1,000) | | |
|
Options granted and outstanding
|
| | | | (349,425) | | |
|
Restricted stock granted and outstanding
|
| | | | — | | |
|
Restricted stock granted and forfeited
|
| | | | — | | |
|
Shares remaining for issuance under the 2014 Plan
|
| | | | 49,575 | | |
|
Total options granted under the 2014 Plan
|
| | | | 363,100 | | |
|
Total restricted stock granted under the 2014 Plan
|
| | | | — | | |
|
Total awards granted under the 2014 Plan
|
| | | | 363,100 | | |
| By Order of the Board of Directors | |
|
|
|
| Jeffrey S. Schoen President and Chief Executive Officer |
|
| | |
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