exhibit 10. 1 sonic innovations, inc. 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, 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 segments. targets 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, 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 earnings per share 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. under - achievement of plan if the sales and / or the earnings per share numbers are worse than the “ at target ” figures, the bonus for that segment will decrease. there