Bonus Plan

Winland Electronics, Inc. Description of 2006 Incentive Bonus Plan

 

EXHIBIT 10.30
WINLAND ELECTRONICS, INC.
DESCRIPTION OF 2006 INCENTIVE BONUS PLAN
     Winland Electronics, Inc. Incentive Bonus Plan (the “Plan”) is designed to reward all employees, including executive staff, for performance contributing to pre-tax, pre-incentive plan, net income in excess of minimum limits defined annually at the beginning of the year by the Board of Directors. The aggregate amount allocated to the Plan pool is based on a percentage of each incremental amount of net income before tax and before the Plan. The formula for 2006 as recommended by the Compensation Committee and as approved by the Board is as follows:
                         
Net income before tax and     Incentive  
before incentive plan     Plan %  
0
  to     1,000,000       0 %
1,000,000
  to     1,500,000       20 %
1,500,001
  to     2,000,000       18 %
2,000,001
  to     2,500,000       16 %
2,500,001
  to     3,000,000       14 %
3,000,001
  to     3,500,000       12 %
3,500,001
  to     4,000,000       10 %
4,000,001
  to     4,500,000       8 %
4,500,001
  to     5,000,000       6 %
5,000,001
  to     10,000,000       6 %
     The Plan provides that 80% of the Plan pool shall be disbursed to employees, including executive officers (other than the Chief Executive Officer), in cash or other awards at the discretion of the President and Chief Executive Officer, subject to the approval of the Compensation Committee.
     The remaining 20% of the Plan pool is available for bonus awards to the President and Chief Executive Officer based on the achievement of certain criteria established at or before the beginning of the year. On September 20, 2005, the Compensation Committee set criteria for a discretionary bonus for Mr. Krueger’s performance in 2006 from the 2006 bonus pool, which criteria requires certain targets of performance with 20% allocated to Board contribution, 20% to feedback of direct reports and 60% to meeting growth and profit plan.