EX-10.1



 





Exhibit 10.1




2008 EXECUTIVE INCENTIVE PLAN




PURPOSE




The 2008 Executive Incentive Plan of Dayton Superior Corporation (the “Company”) is established to
encourage the achievement of defined operational goals that contribute directly to the profits of
Dayton Superior Corporation and to recognize employees whose performance exceeds normal
expectations or requirements for their positions.



DEFINITIONS





	 	•	 	Plan means this 2008 Dayton Superior Corporation Executive Incentive Plan.
	 
	 	•	 	Compensation Committee means the Compensation Committee established by the Board of
Directors of the Company.
	 
	 	•	 	Participant means an employee selected to participate in the Plan.
	 
	 	•	 	Year means a calendar year.





ADMINISTRATION




Participants in the Executive Incentive Plan will have a bonus opportunity, which will be a
percentage of their base salary. The percentage will vary by position and will reflect the level
of responsibility of the individual Participant and will include market-based compensation
comparisons. The percentage opportunity will be defined by the President & Chief Executive
Officer, subject to Compensation Committee approval. The Plan will be based upon the achievement
of various financial goals approved by the Compensation Committee. The financial goals must be met
before any bonuses will be awarded.



The Compensation Committee shall make all determinations of the financial targets required for the
administration of the Plan. The Compensation Committee may also make such adjustment, including
the determination as to which unusual or non-recurring items to include or exclude, as it, in its
sole discretion, deems appropriate to properly reflect the Company’s financial results such as the
effects of inflation on cash flows.



The Compensation Committee must approve all Participants in the Plan and the achievement of the
specified financial goals for distribution of awards.



ELIGIBILITY & COMPONENT ALLOCATION




Plan Participants must be employed with The Company at the time of distribution. If a Plan
Participant leaves prior to the payment, the Participant forfeits any bonus amount.



Payments will be made by March 31st of the year following the Plan year, subject to
completion of the annual audit of the Company’s financial statements.



Eligibility for participation in the Plan will be reviewed each year. For 2008, Plan participation
eligibility and allocation are established for the executive group as follows:



 









 





	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	% of Salary At 100% of Target
	 	 	Chief Executive	 	Executive Vice	 	 	 	 
	 	 	Officer	 	President	 	Vice President	 	Director
	Company EBIT*
	 	 	50	%	 	 	37.5	%	 	 	25	%	 	 	17.5	%
	Company Cash Flow*
	 	 	50	%	 	 	37.5	%	 	 	25	%	 	 	17.5	%
	Total
	 	 	100	%	 	 	75	%	 	 	50	%	 	 	35	%






	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	% of Salary Above 100% of Target
	For Each $1 Million
Company EBIT
Exceeding Target
	 	 	10	%	 	 	7.5	%	 	 	5	%	 	 	5	%






LIMITATIONS




The Plan is not to be construed as providing a guaranteed or minimum payment, or as
constituting a contract of employment. No rights in the Plan shall be deemed to accrue to any
Participant and no Participant or other person shall, because of the Plan, acquire any right to an
accounting or to examine the books or affairs of the Company.



The Compensation Committee may at any time terminate the Plan or effect such amendments thereto as
it shall deem advisable and in the best interest of the Company provided, that no such termination
or amendment shall affect or impair any rights of such Participant with respect to the year in
which such termination or amendment is made.



PERFORMANCE MEASURES 




The threshold for the payment is 88% of the target scaled to 100%, using the EBIT and cash flow
targets approved by the Compensation Committee.



At the 88% threshold, the Plan will pay out at 25% of the target bonus. If the Company does not
achieve the threshold, any bonuses paid will be at the sole discretion of the Compensation
Committee.



For each $1 million of EBIT above target, the Plan will pay an additional bonus amount as a % of
salary.



*As defined by the Compensation Committee