Heska Corporation 2007 Management Incentive Plan Agreement
This agreement outlines the 2007 Management Incentive Plan (MIP) for Heska Corporation, covering the period from January 1 to December 31, 2007. It specifies incentive payout percentages for executives and managers based on their roles, with payouts tied to company-wide financial performance and individual achievements. The plan details how operating income targets affect bonus amounts, with a cap on total payouts. Any payments above the cap are at the discretion of the Compensation Committee.
Exhibit 10.35
Heska Corporation 2007 Management Incentive Plan
The following is intended to implement the Heska Corporation Management Incentive Plan Master Document for the year beginning on January 1, 2007 and ending on December 31, 2007 (the “2007 MIP”). The Compensation Committee has agreed on the following for the 2007 MIP.
1) The Category Percentages for the 2007 MIP are as follows:
| Chief Executive Officer |
| 50.0% of base pay |
| Chief Financial Officer |
| 35.0% of base pay |
| Vice Presidents |
| 35.0% of base pay |
| Directors |
| 25.0% of base pay |
2) The Plan Allocation for the 2007 MIP is as follows:
75% on overall achievement of the company-wide financial objective and 25% on individual performance
3) The Key Parameters for the 2007 MIP is as follows:
Pre-MIP Operating Income
4) The Payout Structure for the 2007 MIP is as follows:
| Pre-MIP |
|
|
|
|
| Post-MIP |
|
| Operating Income (A) |
| MIP Payout (A) |
| MIP Amount (B) |
| Operating Income |
|
| <=4,500,000 |
| 0.0% |
| — |
| <=4,500,000 |
|
| 4,937,500 |
| 10.0% |
| (110,000) |
| 4,827,500 |
|
| 5,375,000 |
| 20.0% |
| (220,000) |
| 5,155,000 |
|
| 5,812,500 |
| 30.0% |
| (330,000) |
| 5,482,500 |
|
| 6,250,000 |
| 40.0% |
| (440,000) |
| 5,810,000 |
|
| 6,687,500 |
| 50.0% |
| (550,000) |
| 6,137,500 |
|
| 7,125,000 |
| 60.0% |
| (660,000) |
| 6,465,000 |
|
| 7,562,500 |
| 70.0% |
| (770,000) |
| 6,792,500 |
|
| 8,000,000 |
| 80.0% |
| (880,000) |
| 7,120,000 |
|
| 8,437,500 |
| 90.0% |
| (990,000) |
| 7,447,500 |
|
| 8,875,000 |
| 100.0% |
| (1,100,000) |
| 7,775,000 |
|
| 9,312,500 |
| 110.0% |
| (1,210,000) |
| 8,102,500 |
|
| 9,750,000 |
| 120.0% |
| (1,320,000) |
| 8,430,000 |
|
| 10,187,500 |
| 130.0% |
| (1,430,000) |
| 8,757,500 |
|
| 10,625,000 |
| 140.0% |
| (1,540,000) |
| 9,085,000 |
|
| 11,062,500 |
| 150.0% |
| (1,650,000) |
| 9,412,500 |
|
| 11,062,501+ |
| Capped |
| (1,650,000) |
| 9,412,501+ |
|
Notes:
(A) Pre-MIP Operating Income to include gains from any United Vaccine lawsuit proceeds/settlements.
(B) MIP payout equals 25.14% of incremental operating income above the baseline point of 2006, capped at a maximum of $1.65 million (which occurs at pre-MIP operating income of $11,062,500).
Any MIP payment based on Pre-MIP Net Income over $11,062,500 will be at the sole and absolute discretion of the Compensation Committee.
