EXHIBIT 10.26

 

Cellu Tissue Holdings Inc.

Corporate Bonus Plan

Fiscal 2008

 

Background Principal: To eliminate the previous history of cliff bonus programs
and institute a plan that pays out a “sliding scale” once Adjusted EBITDA
surpasses prior year results.  Maximum Payout (as defined by employee)is
achieved at budget EBITDA of $49MM.

 

Fiscal 2008 Adj.

 

% of Target

 

EBITDA $(MM)

 

Payout

 

44.0

 

50

%

44.5

 

55

%

45.0

 

60

%

45.5

 

65

%

46.0

 

70

%

46.5

 

75

%

47.0

 

80

%

47.5

 

85

%

48.0

 

90

%

48.5

 

95

%

49.0

 

100

%

51.0 or greater

 

120

%

 

Add’l Background Information:

 

 

 

Prior Year Base Line

 

 

 

 

 

 

 

Base Cellu

 

$

30.00

 

City (11 months)

 

$

13.66

 

 

 

$

43.66

 

 

Adjusted EBITDA as defined by the Cellu Tissue Monthly Reporting Package

 

Maxium payout for Fiscal 2008 is 100%.

 

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