f8k022510ex10i_metro.htm


    EXHIBIT
10.1

    


    SUMMARY
OF 2010 BONUS PLAN FOR EXECUTIVE OFFICERS AND CERTAIN KEY MANAGEMENT
EMPLOYEES

     

    On
February 24, 2010, upon the recommendation of the Compensation Committee (the
“Committee”) of the Board of Directors (the “Board”) of Metropolitan Health
Networks, Inc. (the “Company”), the Board established the target bonus amounts
and the performance criteria applicable to the Company's 2010 bonus plan for
executive officers and certain key management employees (the “Bonus
Plan”).

    


    The Bonus
Plan is a performance-based, cash incentive plan designed to promote the
interests of the Company and its shareholders by providing employees with
financial rewards upon achievement of specified individual and team business
objectives, as well as helping the Company attract and retain key
employees.

    


    In
addition to other participants, each of the Company’s Chief Executive Officer,
Chief Financial Officer, President and Chief Operating Officer and General
Counsel are eligible to participate in the Bonus Plan (the “Executive
Officers”).

    


    For the
Executive Officers, bonuses will be payable under the Bonus Plan based upon the
Company’s income before income taxes for the year ending December 31, 2010
(“2010 IBIT”).

    


    For any
bonus to be paid to an Executive Officer under the Bonus Plan, the Company must
first achieve at least 80% (the “Threshold Goal”) of its budgeted 2010 IBIT (the
“Budgeted IBIT”).  Provided the Threshold Goal is satisfied, the
Executive Officers shall receive some level of bonus.

    


    In the
event that the Company achieves 100% of the Budgeted IBIT (the “Target Goal”),
the Executive Officers will be entitled to receive a bonus (the “Target Bonus”)
equal to the percentage of their base salary set forth below.

    


    

       

      
        	 Title	  Percentage of Base
      Salary at Target
	 Chief
      Executive Officer 	 70%
	 Chief
      Financial Officer   	 50%
	 President and
      Chief Operating Officer	 50%
	 General
      Counsel 	 40%


      

      
 

    

    Actual
bonuses payable may be as high as 250% of the Target Bonus or as low as zero
depending on the Company's 2010 IBIT.

    


    As a
general rule, bonus awards under the Bonus Plan are subject to the participant’s
employment with the Company as of December 31, 2010.  However,
pursuant to our amended and restated employment agreement with our Chief
Executive Officer, dated as of March 1, 2010, we have agreed to pay our Chief
Executive Officer a time prorated bonus based upon the actual amount of his
service and based upon the percentage by which the Company’s IBIT for the six
month period ended June 30, 2010 exceeds or misses budget for such
period.  The resulting percentage based upon 6 month IBIT will then be
used to calculate the CEO’s bonus in a manner that is comparable to the way
percentages based upon 2010 IBIT numbers are used to calculate other executive
officer bonuses.

     

    Except
for the prorated bonus to the CEO, expected to be paid on or before August 15,
2010, bonuses pursuant to the Bonus Plan are anticipated to be paid once the
Company completes the audit of its financial statements for the fiscal year
ending December 31, 2010.