systems and services tailored to the workflow needs of clinicians to improve efficiencies and reduce training times

EX-10.40 8 v06098exv10w40.txt EXHIBIT 10.40 EXHIBIT 10.40 May 27, 2004 (as amended March 14, 2005) Mr. Darryl Lustig, Vice President, Primary Care Quinton Cardiology, Inc. 3 South Liberty Drive South Barrington, IL 60010 Dear Darryl, The purpose of this letter is to document our previous discussions on the FY 2004 sales bonus plan. The sales bonus is in addition to your participation in the 2004 Management Incentive Program (enclosed). Your 2004 sales bonus will be based on the recorded revenues of the Burdick products for the year-ending December 31, 2004. Your 2004 sales target has been established by the Company's CEO. You must achieve 90% of your sales revenue target to be eligible for a bonus. As the following table indicates, at 90% of your sales target you will be eligible for a bonus of 10% of your base salary. At between 91% and 100% of your sales target your bonus percentage will increase from 10% by an additional 2% for each additional 1% of achievement. If greater than 100% of your sales target is achieved, your bonus percentage will increase from 30% by 1% for each 1% by which your sales target is exceeded.
2004 % to Base + 2004 Sales Base Salary Target Sales Bonus % Base Bonus 168,015 90% $16,802 10% $184,817 91% 20,162 12% 188,177 92% 23,522 14% 191,537 93% 26,882 16% 194,897 94% 30,243 18% 198,258 95% 33,603 20% 201,618 96% 36,963 22% 204,978 97% 40,324 24% 208,339 98% 43,684 26% 211,699 99% 47,044 28% 215,059 100% 50,405 30% 218,420 101+ +1% for each 1% over 100%
Your sales bonus, if any, will be paid no later than 30-days following the conclusion of the audit of the financial statements for the year ending December 31, 2004 and their filing with the SEC. The audited financial statements will be used to assure the reasonableness of the revenue amount used in computing your bonus. If the audit and filing with the SEC is not completed by March 31, 2005, the incentive, if any, will be paid during the following month in conjunction with normal payroll practices. Separation of employment, by resignation or termination, prior to March 31, 2005 will result in forfeiture of the bonus payment. Two copies of this letter are provided; please sign as acceptance and return one copy to Lynda Melugin, Director, Human Resources, and retain the other copy for your personal files. /s/ John R. Hinson /s/ Darryl Lustig - ----------------------------- ----------------- John Hinson Darryl Lustig President and CEO Vice President, Primary Care