Exhibit 10.14
SONIC INNOVATIONS,
INC.
Management Bonus
Program
2009
MANAGEMENT BONUS
PROGRAM
The Management Bonus Program
(“the Program”) is designed to reward senior level
managers for achieving specified Company performance goals and
individual performance objectives. The Program’s objective is
to motivate such senior level managers by providing an annual cash
bonus opportunity.
PROGRAM SUMMARY
The Compensation Committee of the
Board of Directors administers the Program. Funding for the Program
is based on the performance of the Company for the year. Bonuses
are calculated and distributed during the first quarter of the
subsequent year upon substantial completion of the full year audit
results.
Bonuses are based on achievements of
goals in three segments: the Company’s annual sales goal, the
Company’s annual pre-tax income goals, and individual
performance goals. The three segments, weighted 25% for annual
sales goal, 50% for annual pre-tax income goal and 25% for
individual performance goals, are independent. Under-achievement in
one of them may reduce that segment’s bonus to zero, but
would not affect the other two segments. Similarly,
over-achievement in one segment may increase that portion of the
bonus without affecting the other segments.
TARGETS
Targets for sales and pre-tax income
will be based on the Company’s operating plan and will be
approved by the Compensation Committee of the Board of
Directors.
BONUS LEVELS FOR ACHIEVEMENT OF
PLAN
A “base bonus” will be
paid if the targets in the three segments are met. Base bonus
levels for participants may vary by title and position. A listing
of participants and their base bonus levels is recommended annually
by the Chief Executive Officer (“CEO”) and approved by
the Compensation Committee of the Board of Directors. Base salary
means compensation paid during the Program year, excluding
commissions, special awards and perquisites.
Actual sales and pre-tax income will
be as reflected in the Company’s audited financial
statements. Participant’s objectives will be measurable,
quantifiable and agreed to beforehand. The CEO will make the final
determination of the degree of achievement for the other
executives, and the Chairman of the Board of Directors will make
the determination for the CEO.
OVER-ACHIEVEMENT OF
PLAN
If the sales and/or the pre-tax
income numbers are better than the “at target” figures,
the bonus for that segment will increase. Over-achievement of a
participant’s individual goals may result in an increased
bonus for that segment as well. A participant’s total bonus
payment shall not exceed 200% of his/her “base
bonus”.
UNDER-ACHIEVEMENT OF
PLAN
If the sales and/or the pre-tax
income numbers are worse than the “at target” figures,
the bonus for that segment will decrease. There will be an
appropriate decrease in bonus for under-achievement in the
individual objectives segment as well.
ELIGIBILITY
Participation in the Bonus Program
will be recommended by the CEO and approved by the Compensation
Committee of the Board of Directors. New employees hired during the
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