Heska Corporation 2008 Management Incentive Plan
This agreement outlines the 2008 Management Incentive Plan for Heska Corporation, covering the period from January 1 to December 31, 2008. It specifies bonus percentages for executives and managers based on their roles, with payouts determined by company-wide financial performance and individual achievements. The plan details how operating income targets affect bonus payouts, including a cap on the maximum payout. Any payments above the cap are at the discretion of the Compensation Committee.
Exhibit 10.8
Heska Corporation 2008 Management Incentive Plan
The following is intended to implement the Heska Corporation Management Incentive Plan Master Document for the year beginning on January 1, 2008 and ending on December 31, 2008 (the “2008 MIP”). The Compensation Committee has agreed on the following for the 2008 MIP.
1) The Category Percentages for the 2008 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 2008 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 2008 MIP is as follows:
Budgeted Pre-MIP Operating Income results in 100% payout.
4) The Payout Structure for the 2008 MIP is as follows:
| Pre-MIP |
|
|
|
|
| Post-MIP |
|
| Operating Income |
| MIP Payout |
| MIP Amount (A) |
| Operating Income |
|
| <=5,862,139 |
| 0.0% |
| — |
| <=5,862,139 |
|
| 6,220,577 |
| 10.0% |
| (115,489) |
| 6,105,088 |
|
| 6,579,015 |
| 20.0% |
| (230,978) |
| 6,348,037 |
|
| 6,937,453 |
| 30.0% |
| (346,467) |
| 6,590,986 |
|
| 7,295,891 |
| 40.0% |
| (461,956) |
| 6,833,935 |
|
| 7,654,329 |
| 50.0% |
| (577,445) |
| 7,076,885 |
|
| 8,012,767 |
| 60.0% |
| (692,933) |
| 7,319,834 |
|
| 8,371,205 |
| 70.0% |
| (808,422) |
| 7,562,783 |
|
| 8,729,643 |
| 80.0% |
| (923,911) |
| 7,805,732 |
|
| 9,088,081 |
| 90.0% |
| (1,039,400) |
| 8,048,681 |
|
| 9,446,519 |
| 100.0% |
| (1,154,889) |
| 8,291,630 |
|
| 9,804,957 |
| 110.0% |
| (1,270,378) |
| 8,534,579 |
|
| 10,163,395 |
| 120.0% |
| (1,385,867) |
| 8,777,528 |
|
| 10,521,833 |
| 130.0% |
| (1,501,356) |
| 9,020,477 |
|
| 10,880,271 |
| 140.0% |
| (1,616,845) |
| 9,263,426 |
|
| 11,238,709 |
| 150.0% |
| (1,732,333) |
| 9,506,376 |
|
| 11,238,709+ |
| Capped |
| (1,732,333) |
| 9,506,376+ |
|
Notes:
(A) MIP payout equals 32.22% of incremental Operating Income above the baseline point of 2007, capped at a maximum of $1.732 million (which occurs at pre-MIP Operating Income of $11,238,709).
Any MIP payment based on Pre-MIP Operating Income over $11,238,709 will be at the sole and absolute discretion of the Compensation Committee.
