Heska Corp. (HSKA) 10-K 2011 FY Annual report

Exhibit 10.8

Heska Corporation

2012 Management Incentive Plan

1. The Category Percentages for the 2012 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 2012 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 2012 MIP are as follows:

• Pre-MIP Operating Income – 50%.

• Strategic Growth Initiative Milestone Achievement – 50%, as defined below.

• Growth Initiative A—Sales Productivity

• Milestone A: Achieve a 15% year-over-year growth in revenue productivity per average direct sales headcount.

• Growth Initiative B—New Product Introductions

• Milestone B1: Launch a new product by end of year 2012

• Milestone B2: Launch 2^nd new product by end of year 2012

• Milestone B3: Launch 3^rd new product by end of year 2012

Growth Initiative B milestones can be achieved through a new product launch of any product discussed at the December 12, 2011 meeting of the Compensation Committee of Heska Corporation’s Board of Directors:

4. The Payout Structure for the 2012 MIP is as follows:

• For FPM of Pre-MIP Operating Income see the table below.

• For SGI, achievement of milestones and Pre-MIP Operating Income of $3,579,000, see the table below. Each milestone is worth 25% 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 2012 MIP for the financial metric parameter is paid at $8,947,500 of Pre-MIP Operating Income and 100% achievement of the five milestones for SGI.

• For example, 100% achievement of the SGI milestones and $3,000,000 of Pre-MIP Operating Income would pay no MIP for either category.

• In another example, achievement of 50% of the SGI milestones and $5,368,500 of Pre-MIP Operating Income would pay MIP of $289,500 for SGI and $289,500 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

2012 MIP Payout Table

Operating Income Pre-MIP	Operating Income Post-MIP		FPM MIP Payout %			FPM MIP Amount		SGI Payout Amount*		Total Payout Amount
3,579,000		3,000,000		0	%		—		579,000		579,000
3,936,900		3,300,000		10	%		57,900		579,000		636,900
4,294,800		3,600,000		20	%		115,800		579,000		694,800
4,652,700		3,900,000		30	%		173,700		579,000		752,700
5,010,600		4,200,000		40	%		231,600		579,000		810,600
5,368,500		4,500,000		50	%		289,500		579,000		868,500
5,726,400		4,800,000		60	%		347,400		579,000		926,400
6,084,300		5,100,000		70	%		405,300		579,000		984,300
6,442,200		5,400,000		80	%		463,200		579,000		1,042,200
6,800,100		5,700,000		90	%		521,100		579,000		1,100,100
7,158,000		6,000,000		100	%		579,000		579,000		1,158,000
7,515,900		6,300,000		110	%		636,900		579,000		1,215,900
7,873,800		6,600,000		120	%		694,800		579,000		1,273,800
8,231,700		6,900,000		130	%		752,700		579,000		1,331,700
8,589,600		7,200,000		140	%		810,600		579,000		1,389,600
8,947,500		7,500,000		150	%		868,500		579,000		1,447,500
8,947,500+		7,500,000		Capped

* Assumes 100% achievement of milestones.