Exhibit 10.8

 

Heska Corporation 2008 Management Incentive Plan

 

The following is intended to implement the Heska Corporation Management
Incentive Plan Master Document for the year beginning on January 1, 2008 and
ending on December 31, 2008 (the “2008 MIP”).  The Compensation Committee has
agreed on the following for the 2008 MIP.

 

1) The Category Percentages for the 2008 MIP are as follows:

 

Chief Executive Officer

 

50.0% of base pay

Chief Financial Officer

 

35.0% of base pay

Vice Presidents

 

35.0% of base pay

Directors

 

25.0% of base pay

 

 

2) The Plan Allocation for the 2008 MIP is as follows:

 

75% on overall achievement of the company-wide financial objective and 25% on
individual performance

 

3) The Key Parameters for the 2008 MIP is as follows:

 

Budgeted Pre-MIP Operating Income results in 100% payout.

 

4) The Payout Structure for the 2008 MIP is as follows:

 

Pre-MIP

 

 

 

 

 

Post-MIP

 

Operating Income

 

MIP Payout

 

MIP Amount (A)

 

Operating Income

 

<=5,862,139

 

0.0%

 

—

 

<=5,862,139

 

6,220,577

 

10.0%

 

(115,489)

 

6,105,088

 

6,579,015

 

20.0%

 

(230,978)

 

6,348,037

 

6,937,453

 

30.0%

 

(346,467)

 

6,590,986

 

7,295,891

 

40.0%

 

(461,956)

 

6,833,935

 

7,654,329

 

50.0%

 

(577,445)

 

7,076,885

 

8,012,767

 

60.0%

 

(692,933)

 

7,319,834

 

8,371,205

 

70.0%

 

(808,422)

 

7,562,783

 

8,729,643

 

80.0%

 

(923,911)

 

7,805,732

 

9,088,081

 

90.0%

 

(1,039,400)

 

8,048,681

 

9,446,519

 

100.0%

 

(1,154,889)

 

8,291,630

 

9,804,957

 

110.0%

 

(1,270,378)

 

8,534,579

 

10,163,395

 

120.0%

 

(1,385,867)

 

8,777,528

 

10,521,833

 

130.0%

 

(1,501,356)

 

9,020,477

 

10,880,271

 

140.0%

 

(1,616,845)

 

9,263,426

 

11,238,709

 

150.0%

 

(1,732,333)

 

9,506,376

 

11,238,709+

 

Capped

 

(1,732,333)

 

9,506,376+

 

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Notes:

(A)  MIP payout equals 32.22% of incremental Operating Income above the baseline
point of 2007, capped at a maximum of $1.732 million (which occurs at pre-MIP
Operating Income of $11,238,709).

 

Any MIP payment based on Pre-MIP Operating Income over $11,238,709 will be at
the sole and absolute discretion of the Compensation Committee.

 

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