impacted their ability to make monthly subscription payments, and the deferral of aesthetic or hair restoration procedures. Our customers’ patients are also affected by the economic impact of the COVID-19 pandemic. Elective aesthetic procedures were less of a priority for those patients who had lost their jobs, were furloughed, had reduced work hours or had to allocate their cash to other priorities.
In connection with the Merger,light of these significant economic and business disruptions to the Company granted a cash-based retention award to Mr. Hair. The award terms providedcaused by the COVID-19 pandemic, the Compensation Committee reviewed the performance metrics established in the 2020 management scorecard. It was determined that Mr. Hair was entitled to a cash award ifthe objectives originally set for the Company successfully completedwould no longer be a relevant or accurate measurement of the Merger. Additionally, Mr. Hair must not haveCompany’s performance given the Company causeevolving impact, magnitude and uncertainty caused by the COVID-19 pandemic. The Compensation Committee resolved to terminate his employmentdiscard the management scorecard approved in March 2020 prior to the payment datepandemic, and instead, established a set of operating objectives that, if achieved, would be reflective of senior management’s ability to successfully steer the Company through the COVID-19 crisis and position the Company for strong operational performance as it emerges from the pandemic.
Against the newly established operating objectives, the Company either met or exceeded its targets. The Company’s significant achievements included exceeding revised revenue targets, executed significant reductions in operating expenses, including achieving Merger synergies of $18 million, restructuring of long-term debt, and the notable enhancement of the retention award. Under this award, Mr. Hair was awarded a retention award equal to $142,500, which he receivedCompany’s cash position. Based on the closingboard of directors’ assessment of the Merger.
Non-equity Incentive Award— Mr. Kelley, Former President, SalesCompany’s performance, the performance of each of the Messrs. Serafino, Della Penna and Zaring, the important achievements described above, and the existence of unprecedented challenges to the business, discretionary cash awards in the amounts of $225,000, $163,000 and $56,000 respectively were awarded for performance in 2020. These awards are payable in the second quarter of fiscal year 2021.
Mr. KelleyZaring was eligible to receive a performance commission, which was to be paid quarterly and prorated to his start date of February 10, 2020, in an amount equal to 70%75% of his base salary based on the achievement towards quarterly performance targets of system sales. In 2019, the system sales were $92.3 million,2020, Mr. Zaring achieved an average of 75% of target, resulting in an 81%a bonus payment of this incentive award equal to $145,308$158,794 to Mr. Kelley. If the Company had achieved additional gross revenues in excess of $114 million, Mr. Kelley would have been eligible to receive a bonus in an amount equal to 2% of incremental revenues in excess of 105% of that amount. Mr. Kelley was also eligible to receive a $50,000 annual bonus based on achievement of certain profit and loss performance measures. For 2019, Mr. Kelley did not meet the overachievement on his sales revenues or the profit and loss performance measures.
Non-equity Incentive Award— Mr. Anderson, Former Vice President, Market Development
Mr. Anderson was eligible to receive a performance commission, which was to be paid monthly, in an amount equal to 50% of his base salary based on the number of procedures sold and the revenue associated with the procedures. Mr. Anderson’s plan outlined targets at two tiers with two tiers of potential payout. If Mr. Anderson achieved tier one targets for either procedures or revenue, he would be paid at tier two amounts for the incremental sales in excess of the tier one targets. In 2019, Mr. Anderson was paid $56,152, which relates to achievement of tier one levels only.
Terms and Conditions of 2019 Equity Award Grants
In February 2019, Mr. Hair was granted 500,000 restricted stock units in connection with the Merger. Such restricted stock units were subject to continued service through immediately prior to the Merger and vested in full immediately prior to the effective time of the Merger.Zaring.
Terms and Conditions of Employee Arrangements with our NEOs
Offer LetterEmployment Agreements
We have agreements with each of the NEOs. These agreements set forth the terms and conditions of employment of each NEO, including base salary, initial equity award grants, and standard employee benefit plan participation. Our board of directors or the compensation committeeCompensation Committee reviews each NEO’s base salary from time to time to ensure compensation adequately reflects the NEO’s qualifications, experience, role and responsibilities.
Venus Concept Ltd. employed Mr. Serafino as Chief Executive Officer, beginning in November 2010.2010 and continuing as Chief Executive Officer of the Company following the Merger. Mr. Serafino’s current employment agreement, effective January 1, 2016, provides an annual base salary of $500,000$525,000 and provides for an undefined term. Per his employment agreement, he is eligible to receive a discretionary annual target base bonus with a target of 75% of his annual base salary, based upon achievement of annual performance targets, and is eligible to receive other customary benefits. Mr. Serafino’s agreement includes a non-competition and non-solicitation clause, which continue for 12 months in the case of termination by us without Cause, as that term is defined in the employment agreement, or resignation, in either case, not during a Change in Control Period (the period beginning three months prior to and ending twelve months following such change in control, as defined in the employment agreement) and for 24 months in the case of termination during a Change in Control Period or a termination for Cause. Pursuant to his agreement, upon termination of employment by us for Cause, Mr. Serafino will not be eligible to receive any payments from us.
Venus Concept Ltd. employed Mr. Della Penna as Chief Financial Officer, beginning in September 2017 withand continuing as Chief Financial Officer of the Company following the Merger. Mr. Della Penna’s current employment agreement provides an initial annual base salary of $350,000 Canadian dollars, which was increased to $390,000 Canadian dollars, effective April 1, 2019. Mr. Della Penna’s agreement$325,000 and provides for an undefined term. Per Mr. Della Penna’s agreement, he is eligible to receive a discretionary annual target base bonus with a target of 50% of his annual base salary, based upon achievement of annual performance targets, and other customary benefits. As part of his agreement, Mr. Della Penna received an initial grant of stock options upon commencement of employment in 2017 as included above in