Heska Corporation 2013 Management Incentive Plan

EX-10.9 5 ex10-9.htm 2013 MIP ex10-9.htm

EXHIBIT 10.9

Heska Corporation

2013 Management Incentive Plan

1. The Category Percentages for the 2013 MIP are as follows:

2. The Plan Allocation for the 2013 MIP is as follows:

75% on overall achievement of the Financial Performance Metric ("FPM") and

25% on achievement of Strategic Growth Initiatives ("SGI")

3. The Key Parameters for the 2013 MIP are as follows:

●	Pre-MIP Operating Income – 75%

●	Strategic Growth Initiative Milestone Achievement – 25%, as defined in the minutes for the May 2013 meeting of the Compensation Committee of the Board of Directors of Heska Corporation, with the following affiliated weightings:

-	Growth Initiative A

o	Succeed in Growth Initiative A for 50% weighting of SGI

o	Otherwise, 0% weighting of SGI

-	Growth Initiative B

o	Succeed in Growth Initiative B for 30% weighting of SGI

o	Otherwise, 0% weighting of SGI

-	Growth Initiative C

o	Succeed in Growth Initiative C for 20% weighting of SGI

o	Otherwise, 0% weighting of SGI

4. The Payout Structure for the 2013 MIP is as follows:

●	All FPM MIP Payouts will be "self-funded" by a percentage of Pre-FPM MIP Operating Income (adjusted for minority interest) (PMOI) in excess of $2,000,000

●	PMOI in excess of $2,000,000 will be split 50%/50% between FPM MIP and the Company

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

●	For SGI achievement of milestones, each milestone is a weighted percentage to equal 100% for SGI (3 total initiatives)

●	Payouts for each parameter will be calculated independent of the success or failure of the other parameter

●	Maximum MIP Payout for Proposed 2013 MIP for the financial metric parameter is paid at $4,738,250 of MPOI at 150% and achievement of the three milestones for SGI at 100%

●	In another example, achievement of 50% weighting of the SGI milestones and $2,912,750 of PMOI would pay MIP of $152,125 for SGI and $456,375 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
2013 MIP Payout Table ($ unless otherwise noted)

Operating Income Pre-FPM MIP	Operating Income Post-FPM MIP	FPM MIP Payout %		FPM MIP Amount	SGI Payout Amount*	Total Payout Amount
2,000,000	2,000,000	0%	0		304,250	304,250
2,182,550	2,091,275	10%	91,275		304,250	395,525
2,365,100	2,182,500	20%	182,550		304,250	486,800
2,547,650	2,273,825	30%	273,825		304,250	578,075
2,730,200	2,365,100	40%	365,100		304,250	669,350
2,912,750	2,456,375	50%	456,375		304,250	760,625
3,095,300	2,547,650	60%	547,650		304,250	851,900
3,277,850	2,638,925	70%	638,925		304,250	943,175
3,460,400	2,730,200	80%	730,200		304,250	1,034,450
3,642,950	2,821,475	90%	821,475		304,250	1,125,725
3,825,500	2,912,750	100%	912,750		304,250	1,217,000
4,008,050	3,004,025	110%	1,004,025		304,250	1,308,275
4,190,600	3,095,300	120%	1,095,300		304,250	1,399,550
4,373,150	3,186,575	130%	1,186,575		304,250	1,490,825
4,555,700	3,277,850	140%	1,277,850		304,250	1,582,100
4,738,250	3,369,125	150%	1,369,125		304,250	1,673,375
4,738,250+	3,369,125+	Capped

*Assumes 100% achievement of milestones.