Blood Chemistry. The DRI-CHEM 4000 Veterinary Chemistry Analyzer (the DRI-CHEM 4000) is a robust system that uses dry slide technology for blood chemistry and electrolyte analysis and has the ability to run 22 tests at a time with a single blood sample. Test slides are available as both pre-packaged panels as well as individual slides. The instrument has an additional feature allowing simple, fully automated sample dilution and results calculations. We are supplied this instrument and affiliated test slides and supplies under a contractual agreement with FUJIFILM Corporation (FUJIFILM). The DRI-CHEM 7000 Veterinary Chemistry Analyzer (the DRI-CHEM 7000), which we began to ship in December 2009, is a line extension of our chemistry offering with higher throughput, multiple patient staging and a STAT feature which provides emergency sample flexibility in critical cases. The DRI-CHEM 7000 utilizes the same test slides as the DRI-CHEM 4000 and is manufactured by FUJIFILM. In addition, we continue to service and support our previous chemistry instrument for which we are supplied affiliated test strips and supplies under a contractual agreement with Arkray Global Business, Inc. (Arkray)

EX-10.8 6 c13748exv10w8.htm EXHIBIT 10.8 Exhibit 10.8
Exhibit 10.8
Heska Corporation
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
                                         
            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.