Respironics, Inc. Profit Sharing Program Agreement
Respironics, Inc. has established a Profit Sharing Program to allow all employees, including executive officers, to receive annual bonuses if the company surpasses its annual net income per share targets. Executive officers may earn bonuses up to 10% of their base salary, with the possibility of higher payouts depending on company performance. Bonuses are typically distributed within 90 days after the fiscal year ends.
Exhibit 10.40
Respironics, Inc. Profit Sharing Program Summary
The Company’s Profit Sharing Program is designed primarily to give all associates an opportunity to share in the collective success of the Company. These bonuses are paid to the extent that the Company exceeds its annual net income per share plan. Executive Officers participate in this program and can receive annual bonuses of up to 10% of their base pay, with the potential for larger payouts based on the degree to which the Company exceeds its annual net income per share plan. Profit Sharing bonuses are generally paid within 90 days after the end of each fiscal year.
