INSIGNIA SYSTEMS, INC.
2008 EXECUTIVE INCENTIVE BONUS PLAN
1. Purpose . The purpose of this Plan is to assist the corporation in retaining and motivating certain officers of
the corporation for the benefit of the corporation and its shareholders.
2. Eligibility . The employees eligible to participate in this Plan are the individuals employed in the following
positions as of February 19, 2008: the Vice President of Finance, Senior Vice President of Marketing Services, Vice President of
Operations, Vice President of Technology Development, and Controller. An eligible employee must be employed on December
31, 2008 to earn a bonus.
3. Duration of Plan . This Plan shall be effective for the corporation’s fiscal year ending December 31, 2008.
4. Bonus Amounts . Each eligible employee may earn a bonus in 2008, equal to a specified percentage of his base
salary, based upon the amount of POPS revenue and corporate net income earned by the Company in 2008. Attached is a
schedule showing different tiers of bonus levels, and the minimum amounts of POPS revenue and corporate net income required
to earn the bonus payable at each tier. If the amount of POPS revenue and/or corporate net income earned by the Company in
2008 increases above the minimum amounts required for any tier, but does not reach the minimum amounts required for the next
tier, the bonus percentages payable within such tier shall increase proportionately. In calculating corporate net income for 2008,
any amount awarded to the Company as damages in litigation, any amount payable to the Company in settlement of litigation,
and any recorded tax benefit from the adjustment of the deferred tax asset valuation allowance shall be excluded.
5. Calculation and Approval of Bonuses . Bonus amounts shall be calculated by the corporation’s CFO based on
the accounting methods and procedures used in preparing the corporation’s audited financial stat