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

EX-10.42 10 v06098exv10w42.txt EXHIBIT 10.42 EXHIBIT 10.42 SALES INCENTIVE PLAN 2005 VICE PRESIDENT, PRIMARY CARE The 2005 sales bonus will be based on the recorded revenues of the Quinton products for the year-ending December 31, 2005. The 2005 sales target has been established by the Company's CEO. 90% of the sales revenue target must be achieved to be eligible for a bonus. As the following table indicates, at 90% of the sales target you will be eligible for a bonus of 10% of your base salary. At between 91% and 100% of the sales target the bonus percentage will increase from 10% by an additional 2% for each additional 1% of achievement. If greater than 100% of the sales target is achieved, the bonus percentage will increase from 30% by 1% for each 1% by which the sales target is exceeded.
2005 % to 2005 Sales Base Salary Target Bonus - ----------- ----- TBD 90% 10% of Base Salary 91% 12% of Base Salary 92% 14% of Base Salary 93% 16% of Base Salary 94% 18% of Base Salary 95% 20% of Base Salary 96% 22% of Base Salary 97% 24% of Base Salary 98% 26% of Base Salary 99% 28% of Base Salary 100% 30% of Base Salary 101+% +1% for each 1% over 100%
The 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, 2005 and their filing with the SEC. The audited financial statements will be used to assure the reasonableness of the revenue amount used in computing the 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 the normal payroll practices. Separation of employment, by resignation or termination, prior to March 31, 2005 will result in the forfeiture of the bonus payment. 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 Quinton Confidential