QuickLinks
 -- Click here to rapidly navigate through this document
  



 
 

Exhibit 10.35    
    


CHASE CORPORATION

ANNUAL INCENTIVE PLAN  


        The Company, in addition to salary and benefits provides further cash compensation to key employees based on achieving preset annual goals. 


        The
plan is maintained and paid at the sole discretion of the Board of Directors and may be modified or suspended at any time by the board. 


        Upon
approval by the Board of Directors, the Corporate H.R. Manager will administer the plan. 



        An
annual bonus pool is created as a percentage of actual operating income achieved during the fiscal year. The amount is determined by the success in reaching the year's targeted
results. The schedule follows: 



	Percentage of Target Achieved
 
	 	Bonus Pool as a

Percentage of Actual

Operating Income
	 
	120%	 	17	%
	110	 	16	 
	100	 	15	 
	90	 	14	 
	80	 	13	 
	70	 	12	 
	60	 	11	 
	50	 	10	 






        As
consideration for achieving qualitative results by the Company, the Board of Directors, at its sole discretion, may increase or decrease dollars in the pool. 


        It
is the intent of the Board of Directors to exclude the effect of unusual events and expenses from the calculation. The Compensation and Management Development Committee is given the
authority by the Board to use its discretion in determining relevant exclusions. 


        Targets,
awards, opportunities and associated performance award methodology and eligibility requirements will be established by the Compensation and Management Development Committee for
the Chairman, CEO, President, COO and CFO and approved by the Board of Directors. For senior management, the CEO will make recommendations to be approved by the Compensation and 


1







 



Management
Development Committee. For all other employees the President and CEO will be the approval authority. See schedule below for President and senior management award opportunities: 



	Annual Target 2006/2007

Award Opportunity	 	Earnings Before Tax ("EBT") target as approved by the Board of Directors. Payment threshold is 50% of target as scheduled below for respective positions.
	
President & CEO	
 	

50% of base salary for 100% achievement of target. At 50% of target award is 8.33% of base salary; at 75% of target award is 25% of base salary. For results in excess of target, award increases to 100% of base salary at approximately 155% of
target.
	
Chief Operating Officer	
 	

40% of base salary for 100% achievement of target. At 50% of target award is 6.67% of base salary; at 75% of target award is 20% of base salary. For results in excess of target, award increases to 100% of base salary at approximately 163% of
target.
	
Chief Financial Officer	
 	

30% of base salary for 100% achievement of target. At 50% of target award is 5% of base salary; at 75% of target award is 15% of base salary. For results in excess of target, award increases to 100% of base salary at 175% of target.
	
Chief Marketing Officer	
 	

30% of base salary for 100% achievement of target. At 50% of target award is 5% of base salary; at 75% of target award is 15% of base salary. For results in excess of target, award increases to 100% of base salary at 175% of target.





        Payment
is made in cash no later than 75 days from the close of the fiscal year. 


        To
be eligible an employee must be on the active payroll when the bonus is paid and for at least 6 months prior to the end of the fiscal year. 


        In
addition to the financial targets the Compensation and Management Development Committee may choose to establish qualitative measurement criteria. Together with the financial measures
these are referred to as critical success factors (CSF). When utilized, the CEO's CSF and appropriate weighting is approved by the board. The CEO will approve all others. 



        Other
management and non-union bonus participants will have opportunities established by senior management and awards paid from the bonus pool. 


2











QuickLinks



Exhibit 10.35