exv10w25



 







Exhibit 10.25




NxStage Medical, Inc.




Summary of 2006 Executive Compensation and 2006 Corporate Bonus Plan




     The following is a summary of (i) annual base compensation to be paid to executive officers of
NxStage Medical, Inc. (the “Company”) and (ii) the Company’s 2006 Corporate Bonus Plan.



Executive Officer 2006 Base Salary




     As of March 16, 2006, the executive officers of the Company are paid the following annual
salaries:



	 	 	 	 	 
	Executive Officer	 	2006 Annual Base Salary	 
	Jeffrey H. Burbank
	 	$	298,700	 
	David N. Gill
	 	$	250,000	 
	Philip R. Licari
	 	$	231,750	 
	Joseph E. Turk, Jr.
	 	$	223,870.50	 
	Winifred L. Swan
	 	$	210,000	 






Stock Option and Equity Awards




     Each executive office may also be granted form time-to-time stock options, restricted stock or
other wards pursuant to the Company’s stock incentive plans. Stock options granted to executive
officers typically vest as to 25% of the underlying shares on the first anniversary of the grant
date and as to the remainder in 36 equal monthly installments.



Employment Agreements




     The Company has also entered into employment agreements with certain of its executive
officers, and the Company has previously filed such agreements with the Securities and Exchange
Commission.



2006 Corporate Bonus Plan




     As of March 16, 2006, the Compensation Committee of the Company’s Board of Directors approved
the Company’s 2006 Corporate Bonus Plan (the “Plan”).



     Funding of the bonus pool under the Plan comes from achievement of the budget performance.
The individual payouts for senior vice presidents will be proposed to the Compensation Committee by
the Company’s Chief Executive Officer (“CEO”) based on individual performance and shall not exceed
the total funded pool nor target individual bonus percentages. The Compensation Committee will
propose and determine the payout for the CEO, and will determine the final payout for senior vice
presidents. The CEO will propose and determine the payout for vice presidents participating in the
bonus plan.



 









 





     Funding of the bonus pool is based on the achievement of sales and operating expense budget,
and the following weights are assigned to the variables considered in determining the size of the
bonus pool:



	 	 	 	 	 
	75% Weighting

	 	Sales
	 	% Bonus Funding
	 

	 	85-100%
	 	0-100%
	 

	 	100-115%
	 	100-115%
	25% Weighting

	 	Pretax Loss
	 	% Bonus Funding
	 

	 	110-100%
	 	0-100%
	 

	 	Sales >100% & Pretax Loss 100-90%
	 	100-130%






     Pursuant to the Plan, the following target bonus percentages have been set for the Company’s
executive officers for 2006:



	 	 	 	 	 	 	 	 	 
	 	 	2006 Target Bonus	 	 	 	 
	Executive Officer	 	Percentage	 	 	2006 Target Bonus	 
	Jeffrey H. Burbank
	 	 	45	%	 	$	134,415	 
	David N. Gill*
	 	 	35	%*	 	$	87,500	*
	Philip R. Licari
	 	 	35	%	 	$	81,112.50	 
	Joseph E. Turk, Jr.
	 	 	35	%	 	$	78,354.68	 
	Winifred L. Swan
	 	 	35	%	 	$	73,500	 








 




			
	*	 	In connection with his decision to resign from the Company, Mr. Gill will not receive a cash
bonus for his performance during 2006. In lieu of a cash bonus, the Board of Directors of the
Company granted Mr. Gill 7,422 shares of restricted common stock of the Company.