Document:

exv10w40

 

Exhibit 10.40

HEALTH FITNESS CORPORATION

Director Compensation Arrangements

     Effective January 17, 2007, the compensation plan for directors of Health Fitness
Corporation who are not employees was determined to be as follows:

     1. Each director receives an annual cash retainer of $12,000, payable quarterly at a
rate of $3,000 in advance of each quarter.

     2. The Chairman of the Board receives an additional annual cash retainer of $6,000,
payable quarterly at a rate of $1,500 in advance of each quarter. In addition, the
Chairman of the Board shall receive an additional annual fee of $30,000 for additional
services provided in connection with the launch of the Company’s strategic plan and related
projects, and the development of the Company’s Office of the Chair structure. This fee
will be paid quarterly and is subject to suspension or termination by the Board.

     3. The Chair of the Audit Committee receives an additional annual cash retainer of
$5,000, payable quarterly at a rate of $1,250 in advance of each quarter.

     4. The Chairs of each of the Compensation/Human Capital Committee and
Nominating/Governance Committee receives an additional annual cash retainer of $2,500,
payable quarterly at a rate of $625 in advance of each quarter.

     5. The Chair of the Finance Committee receives a $250 committee meeting fee (in
addition to fees paid to all committee members for their attendance at such committee
meetings).

     6. Each director receives a cash payment of $1,000 for attending each regular and
special Board meeting. Telephonic Board meetings, or a director’s telephonic attendance at
a Board meeting, are compensated at 75% of the full payment.

     7. Committee members receive a cash payment of $500 for attending each regular and
special committee meeting. Telephonic committee meetings, or the director’s telephonic
attendance at a committee meeting, will be compensated at 75% of the full payment.

     8. Upon the initial election to the Board, a director receives a grant of 20,000
shares of Common Stock.

     9. Upon the initial election to the Board and annually thereafter, a director will
receive a six-year fully vested option to purchase 15,000 shares of Common Stock. The
option will have an exercise price equal to the fair market value of the Common Stock on
the date of grant.exv10w41

 

Exhibit 10.41

HEALTH FITNESS CORPORATION

2007 Executive Bonus Plan

The Health Fitness Corporation Executive Bonus Plan for 2007 is designed to provide an annual
performance incentive for executive officers based on the achievement of certain financial
objectives, as well as, in the case of the Vice Chairman only, the achievement of personal
objectives. The financial objectives are set annually by the Board of Directors. Payments under
the bonus plan that are based on the achievement of financial objectives include the following
performance criteria: revenue and earnings before interest, taxes, depreciation and amortization.

Under this bonus plan, the Vice
Chairman and Chief Executive Officer may
receive bonuses of between 15% and 50% of their base salary, the Chief Financial Officer may receive
a bonus of between 15% and 40% of his base salary, and other executive officers may
receive between 10% and 30% of their base salary. The level of bonus received corresponds with the
Company achieving between 95% to 110% of budgeted financial objectives. No bonuses are earned on
financial objectives for which the Company achieves less than 95% of the planned target.exv10w42

 

Exhibit 10.42

HEALTH FITNESS CORPORATION

COMPENSATION ARRANGEMENTS FOR EXECUTIVE OFFICERS

FOR FISCAL YEAR 2007

     The Health Fitness Corporation Board of Directors approved the 2007 fiscal year base salaries
for the executive officers as set forth below. In addition, these executive officers may
participate in our 401(k) plan, employee stock purchase plan and medical and disability plans, as
well as other compensatory plans, contracts and arrangements.

	 	 	 	 	 
	 	 	2007 Annual	 
	Executive Officer and Title	 	Base Salary	 
	Jerry V. Noyce
	 	$	275,000	 
	Vice Chairman
	 	 	 	 
	 
	 	 	 	 
	Gregg O. Lehman
	 	$	275,000	 
	President and Chief Executive Officer
	 	 	 	 
	 
	 	 	 	 
	Wesley W. Winnekins
	 	$	188,100	 
	Chief Financial Officer and Treasurer
	 	 	 	 
	 
	 	 	 	 
	Jeanne C. Crawford
	 	$	150,075	 
	Vice President — Human Resources and Secretary
	 	 	 	 
	 
	 	 	 	 
	James A. Narum
	 	$	134,000	 
	Vice President Account Services — U.S. Auto
	 	 	 	 
	 
	 	 	 	 
	David T. Hurt
	 	$	130,810	 
	Vice President Account Services — Fitness Management
	 	 	 	 
	 
	 	 	 	 
	Katherine M. Hamlin
	 	$	133,900	 
	Vice President Account Services — Health Management
	 	 	 	 
	 
	 	 	 	 
	Brian J. Gagne
	 	$	148,390	 
	National Vice President – Health Management
	 	 	 	 
	 
	 	 	 	 
	Michael R. Seethaler
	 	$	140,000	 
	National Vice President — Business Development
	 	 	 	 
	 
	 	 	 	 
	John F. Ellis
	 	$	166,901	 
	Chief Information Officer
	 	 	 	 
	 
	 	 	 	 
	Peter A. Egan
	 	$	166,901	 
	Chief Science Officerexv10w43

 

Exhibit 10.43

HEALTH FITNESS CORPORATION

CASH INCENTIVE PLAN

ARTICLE 1.

PURPOSE

     1.1 Performance Bonuses. The purpose of the Health Fitness Corporation Cash Incentive
Plan (the “Plan”) is to provide incentives and rewards to certain key employees of Health Fitness
Corporation (“Company”) in the form of incentive bonuses based on the achievement of certain
performance objectives, as well as individual performance.

ARTICLE 2.

ADMINISTRATION

     2.1 Administration and Delegation of Authority. The Plan shall be administered by the
Board or by a Committee of the Board consisting of two or more directors who shall be appointed by
and serve at the pleasure of the Board; provided, that if the Board delegates administration to a
Committee, such Committee shall have no authority for matters under this Plan relating to or
affecting non-employee directors, and the Committee further shall have no authority for matters
under this Plan relating to or affecting the executive officers of the Company designated from time
to time by the Board as Section 16 officers under the Securities Exchange Act of 1934, as amended
(the “Section 16 Officers”) except the authority to make recommendations to the Board. The Board
further may subject such delegation to such additional restrictions on authority as it may deem
necessary and appropriate and thereafter shall continue to have the power to take action with
respect to all matters pertaining to this Plan with or without recommendation of the Committee. No
member of the Board of Directors or such Committee shall participate in any decisions concerning
the payments to be made to him or her, or other matters relating to his or her benefits hereunder.
All actions of the Board (upon recommendation of the Committee in the case of Section 16 Officers)
or by the Committee (in the case of other Participants) shall be determined by a majority of its
members at a meeting at which a quorum is present, or by a majority of all members in writing
signed by all members, whether or not voting in favor of such determination. A majority of all of
the members shall constitute a quorum.

     2.2 Powers. Except as otherwise provided herein, the Board (upon recommendation of
the Committee in the case of Section 16 Officers) or the Committee (in the case of other
Participants) shall have full power and authority to administer and interpret the Plan, to make and
amend rules, regulations and guidelines for administering the Plan, to prescribe the form and
conditions of the respective agreements evidencing each Award (which may vary from Participant to
Participant), and to make all other determinations necessary or advisable for the administration of
the Plan. The interpretation of the Plan by the Board (upon recommendation of the Committee in the
case of Section 16 Officers) or by the Committee (in the case of other

 

 

Participants), and all actions taken and determinations made by the Board or by the
Committee, as appropriate pursuant to the power vested in each of them hereunder, shall be
conclusive and binding on all parties concerned.

ARTICLE 3.

PARTICIPATION

     3.1 Selection of Participants and Plan Entry. The Board (upon recommendation of the
Committee in the case of Section 16 Officers) or the Committee (in the case of other Participants)
shall, from time to time, designate those key employees who are eligible to participate in the
Plan, shall periodically review its selection of participants, shall make any changes as it deems
appropriate in its sole discretion, and may in its sole discretion, designate certain key employees
as being ineligible to participate in the Plan; provided, however, that the discontinuation of a
key employee’s eligibility shall not alter, impair or reduce the value of any incentive bonus
earned by such key employee without his or her consent. Any key employee selected to participate
in the Plan shall continue to participate each performance period until otherwise determined by the
Board (upon recommendation of the Committee in the case of Section 16 Officers) or by the Committee
(in the case of other Participants). Hereafter, a key employee selected to participate in the
Plan shall be referred to as a “Participant.”

ARTICLE 4.

BONUS PAYMENTS

     4.1 Determination of Incentive Bonus.

          4.1.1 Determination of Performance Goals and Bonus. The Board (upon recommendation of
the Committee in the case of Section 16 Officers) or the Committee (in the case of other
Participants) shall determine each performance period and the performance objectives and incentive
bonus for each Participant for such period. The Board (upon recommendation of the Committee in the
case of Section 16 Officers) or the Committee (in the case of other Participants) shall set forth
such performance objectives and incentive bonus in writing. The level of bonus shall vary
depending upon the level of the performance objectives achieved. At each level, the amount of
incentive bonus payable to the Participant shall be either a specified dollar amount or a
percentage of the Participant’s base salary, as determined by the Board (upon recommendation of the
Committee in the case of Section 16 Officers) or the Committee (in the case of other Participants);
provided, however, that if a certain minimum percentage of the performance objectives is not
achieved, no incentive bonus will be paid to the Participant. The performance objectives and
maximum incentive bonus shall be communicated to the Participant as soon as administratively
practicable after the beginning of the performance period. The incentive bonus for a Participant
may vary from performance period to performance period, and incentive bonus awards may vary from
Participant to Participant.

          4.1.2 Determination of Payout. After the completion of the performance period, the
Board (upon recommendation of the Committee in the case of Section 16 Officers) or by the Committee
(in the case of other Participants) will determine and certify in writing the degree to which the
performance objectives have been achieved. The Board (upon

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recommendation of the Committee in the case of Section 16 Officers) or the Committee (in the case
of other Participants) may, in its discretion, decrease, but not increase, the Participant’s
maximum incentive bonus. If the Participant terminates employment with the Company prior to the
last day of the performance period for a reason other than death or disability (as defined in Code
Section 22(e)), the Participant shall not earn the incentive bonus for that performance period. If
the Participant terminates employment with the Company prior to the last day of the performance
period due to death or disability, the Participant shall be entitled to a prorated incentive bonus
based on the portion of the bonus earned as determined by the Board (upon recommendation of the
Committee in the case of Section 16 Officers) or the Committee (in the case of other Participants).

     4.2 Performance Objectives. The performance objectives shall be limited to any one,
or a combination of, (i) revenue, (ii) net income, (iii) stockholders’ equity, (iv) earnings per
share, (v) return on equity, (vi) return on assets, (vii) total shareholder return, (viii) net
operating income, (ix) cost controls, (x) cash flow, (xi) increase in revenue, (xii) increase in
share price or earnings, (xiii) return on investment, (xiv) department or business unit performance
goals, (xv) increase in market share, (xvi) earnings before interest, taxes, depreciation and
amortization (“EBITDA”), (xvii) increase in EBITDA, (xviii) gross margin, or (xix) increase in
gross margin, in all cases including, minimum threshold, target and maximum levels as may be
determined by the Board (upon recommendation of the Committee in the case of Section 16 Officers)
or by the Committee (in the case of other Participants).

     4.3 Payment. The incentive bonus shall be paid to the Participant (or, in the event
of the Participant’s death to the Participant’s estate) in cash, in a single lump-sum payment, as
soon as administratively practicable after the date the Company certifies the achievement of the
performance objectives specified for the performance period, but not later than the 15th
day of the third month following the end of the fiscal year during which the incentive bonus was
earned.

     4.4 Merger, Reorganization, Etc. Notwithstanding anything in the Plan to the
contrary, in the event of an acquisition of the Company through the sale of substantially all of
the Company’s assets and the consequent discontinuance of its business or through a merger,
consolidation, exchange, reorganization, reclassification, extraordinary dividend, divestiture
(including a spin-off), liquidation, recapitalization, stock split, stock dividend or otherwise
(collectively referred to as a “transaction”), the Board only may, in its discretion, modify the
performance period, any of the performance objectives for such period or provide for payment of all
or a portion of the incentive bonus.

ARTICLE 5.

MISCELLANEOUS PROVISIONS

     5.1 Nontransferability. No Participant (or the estate or heirs at law of any
Participant) shall have any right to assign, encumber or otherwise anticipate the right to receive
payment hereunder, and the value of the Participant’s incentive bonus awards under the Plan shall
not be subject to garnishment, attachment or any other legal process by the creditors of any
Participant (or the estate or heirs at law of any Participant) hereunder.

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     5.2 Liability of Company. The Company shall have no liability in connection with the
Plan except to pay any incentive bonus awards in accordance with the terms of the Plan. The
Company has made no representations to any Participant with respect to the tax implications of any
transactions contemplated by the Plan. Each Participant shall obtain his or her own counsel to
advise the Participant with respect to the tax effect of the Plan.

     5.3 Binding Effect. The Plan shall be binding upon the Participants and the Company
and their heirs, executors and assigns. The Company shall not be a party to any merger,
consolidation or reorganization unless and until its obligations under the Plan shall be expressly
assumed by its successor or successors.

     5.4 Payment in Case of Incompetency. If, in the judgment of the Board (upon
recommendation of the Committee in the case of Section 16 Officers) or by the Committee (in the
case of other Participants), based upon facts and information readily available to it, any person
entitled to receive a payment hereunder is incapable for any reason of personally receiving and
giving a valid receipt for the payment of a benefit, the Company may cause such payment or any part
thereof to be made to the duly appointed guardian or legal representative of such person, or to any
person or institution contributing to or providing for the care and maintenance of such person,
provided that no prior claim for said payment has been made by a duly appointed guardian or legal
representative of such person. The Company shall not be required to see to the proper application
of any such payment made in accordance with the provisions hereof, and any such payment shall
constitute payment for the account of such person and a full discharge of any liability or
obligation of the Company.

     5.5 Withholding. The Company shall have the right to deduct from all amounts payable
hereunder any state or federal taxes required by law to be withheld with respect to such awards.
If the Company is unable to withhold such federal and state taxes, for whatever reason, the
Participant hereby agrees to pay to the Company an amount equal to the amount the Company would
otherwise be required to withhold under federal or state law.

     5.6 Right to Terminate Employment. No employee or other person shall have any claim
or right to receive incentive bonus awards under or otherwise participate in the Plan. Except as
otherwise provided in an employment agreement between the Participant and the Company, neither the
Plan nor any action taken hereunder shall be construed as giving any employee any right to be
retained in the employment of the Company, interfere with the right of the Company to discharge any
employee at any time, give the Company the right to require an employee to remain in its employ, or
interfere with the employee’s right to terminate employment at any time.

     5.7 Compliance with Applicable Laws. The Company and Participants intend that the
Plan comply with any applicable provisions of the Internal Revenue Code of 1986, as amended from
time to time, and the regulations thereunder, with any applicable provisions of the Employee
Retirement Income Security Act of 1974, as amended, and the regulations thereunder, and with any
applicable provisions of the Securities Exchange Act of 1934, as amended. If, at a

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later date, these provisions are construed in such a way as to make the Plan null and void, the
Plan shall be given effect in a manner that shall best carry this intention.

     5.8 Notices. Any notice, election or form to be delivered pursuant to the Plan shall
be given in writing and delivered, personally or by first-class mail, postage prepaid, to the
Company, the Participant or any other person, as the case may be, at their last known address.

     5.9 Headings. Headings or titles at the beginning of articles and sections are for
convenience of reference, shall not be considered a part of the Plan, and shall not influence its
construction.

     5.10 Amendment and Termination. The Board of Directors, and only the Board of
Directors, may alter, amend or terminate the Plan at any time; provided, however, that no amendment
to the Plan may alter, impair or reduce the value of a Participant’s incentive bonus awards to the
extent earned prior to the effective date of such amendment, without the written consent of such
Participant.

     5.11 Governing Law. The provisions of the Plan shall be construed and enforced
according to the laws of the State of Minnesota to the extent that such laws are not preempted by
any applicable federal law.

     The Company has caused this Plan to be executed by its duly authorized officer effective as of
March 27, 2007.

	 	 	 	 	 
	 	HEALTH FITNESS CORPORATION

 	 
	 	By:  	/s/
Gregg O. Lehman	 
	 	Its	President and Chief Executive Officer	 
	 

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