SONIC INNOVATIONS, INC.
Management Bonus Program
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.
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, following audit of the Company’s full year results.
Bonuses are based on achievements of goals in three segments: the Company’s annual sales goal, the Company’s annual
earnings per share goal, and individual performance goals. The three segments, equally weighted at one-third each, 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
Targets for sales and earnings per share 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 earnings per share will be as reflected in the Company’s audited financial statements. Participant’s objectives
will be measurable, quantifiabl