Exhibit 10.8
Heska Corporation
2011 Management Incentive Plan
2011 Management Incentive Plan
1. | The Category Percentages for the 2011 MIP are as follows: |
Title | Heska MIP | |
Chief Executive Officer | 50.0% of base pay | |
President | 35.0% of base pay | |
Chief Financial Officer | 35.0% of base pay | |
Executive Vice Presidents | 35.0% of base pay | |
Vice Presidents | 35.0% of base pay | |
Managing Directors | 25.0% of base pay | |
Directors | 25.0% of base pay |
2. | The Plan Allocation for the 2011 MIP is as follows: | |
50% on overall achievement of the Financial Performance Metric (“FPM”) and 50% on Strategic Growth Initiatives (“SGI”). | ||
3. | The Key Parameters for the 2011 MIP are as follows: |
• | Pre-MIP Operating Income — 50% | ||
• | Strategic Growth Initiative Milestone Achievement — 50%, as defined below |
• | Growth Initiative A |
• | Milestone A: Execute contract by end of Q2 2011 |
• | Growth Initiative B |
• | Milestone B1: Execute contract by end of Q2 2011 | ||
• | Milestone B2: Launch first product by end of Q3 2011 |
• | Growth Initiative C |
• | Milestone C1: Execute agreement by end of Q3 2011 | ||
• | Milestone C2: Formalize alliance by end of Q3 2011 |
4. | The Payout Structure for the 2011 MIP is as follows: |
• | For FPM of Pre-MIP Operating Income see the attached table | ||
• | For SGI, achievement of milestones and Pre-MIP Operating Income of $1,500,000, see the attached table. Each milestone is worth 20% of the potential MIP payout for SGI |
• | Payouts for each parameter will be calculated independent of the success or failure of the other parameter | ||
• | Maximum MIP Payout for Proposed 2011 MIP for the financial metric parameter is paid at $5,562,500 of Pre-MIP Operating Income and 100% achievement of the five milestones for SGI | ||
• | For example, 100% achievement of the SGI milestones and $1,300,000 of Pre-MIP Operating Income would pay no MIP for either category. Achievement of 60% of the SGI milestones and $3,177,072 of Pre-MIP Operating Income would pay MIP of $315,000 for SGI and $315,000 for FPM | ||
• | Any MIP payment in excess of the Maximum MIP Payout shall be at the sole and absolute discretion of the Compensation Committee |
Heska Corporation
2011 MIP Payout Table
2011 MIP Payout Table
FPM | ||||||||||||||||||||
Operating | Operating | MIP | 50% FPM | |||||||||||||||||
Income | Income | Payout | MIP | SGI Payout | Total Payout | |||||||||||||||
Pre-MIP | Post-MIP | % | Amount | Amount* | Amount | |||||||||||||||
1,500,000 | 975,000 | 0 | % | — | 525,000 | 525,000 | ||||||||||||||
1,779,512 | 1,202,012 | 10 | % | 52,500 | 525,000 | 577,500 | ||||||||||||||
2,059,024 | 1,429,024 | 20 | % | 105,000 | 525,000 | 630,000 | ||||||||||||||
2,338,536 | 1,656,036 | 30 | % | 157,500 | 525,000 | 682,500 | ||||||||||||||
2,618,048 | 1,883,048 | 40 | % | 210,000 | 525,000 | 735,000 | ||||||||||||||
2,897,560 | 2,110,060 | 50 | % | 262,500 | 525,000 | 787,500 | ||||||||||||||
3,177,072 | 2,337,072 | 60 | % | 315,000 | 525,000 | 840,000 | ||||||||||||||
3,456,584 | 2,564,084 | 70 | % | 367,500 | 525,000 | 892,500 | ||||||||||||||
3,736,096 | 2,791,096 | 80 | % | 420,000 | 525,000 | 945,000 | ||||||||||||||
4,015,608 | 3,018,108 | 90 | % | 472,500 | 525,000 | 997,500 | ||||||||||||||
4,295,125 | 3,245,125 | 100 | % | 525,000 | 525,000 | 1,050,000 | ||||||||||||||
4,548,600 | 3,446,100 | 110 | % | 577,500 | 525,000 | 1,102,500 | ||||||||||||||
4,802,075 | 3,647,075 | 120 | % | 630,000 | 525,000 | 1,155,000 | ||||||||||||||
5,055,550 | 3,848,050 | 130 | % | 682,500 | 525,000 | 1,207,500 | ||||||||||||||
5,309,025 | 4,049,025 | 140 | % | 735,000 | 525,000 | 1,260,000 | ||||||||||||||
5,562,500 | 4,250,000 | 150 | % | 787,500 | 525,000 | 1,312,500 | ||||||||||||||
5,562,500 | + | 4,250,000 | Capped |
* | Assumes 100% achievement of milestones. |