EXHIBIT 10.1


 


Cascade Corporation


Executive
Incentive Plan


FY 2007


 


Overview


 


Key plan objectives include maximizing adjusted IBT (adjusted for
executive incentive and environmental expense) and building shareholder
value.  We believe that the measure that
has the greatest impact on shareholder value is fundamentally income.  As a result, this plan focuses on this
measure with a modifier for individual contribution.


 


Key Plan Features


 


•                  Awards
based on actual performance, not budget


•                  Threshold
or minimum performance at 75% level required before Plan pays any award


•                  Individual
performance (or “how” results are achieved) will modify the final award


•                  Upside
opportunity for extraordinary performance


•                  Board
discretion to adjust if economic/business conditions warrant (up to 30% of base
salary maximum)


•                  Acquisitions
or divestitures having a material impact on plan metrics will be incorporated
using pro-forma business plan data.


 


Award Opportunity


 


Each position is eligible to receive a percentage of Adjusted Income
Before Taxes (IBT) above $32 million to a maximum dollar award amount as
indicated.  The Board may adjust the
minimum level to reflect Board and management-determined business goals and
strategies.  In addition, the Board would
have the discretion to allocate additional award dollars in the event of
exceptional circumstances.


 


	
  Position

  	
   

  	
  $32M - <$40M

  	
   

  	
  $40M - <$50M

  	
   

  	
  $50M + >

  	
   

  	
  Target

  	
   

  	
  Maximum

  	
   

  
	
  CEO

  	
   

  	
  .45

  	
  %

  	
  .72

  	
  %

  	
  .99

  	
  %

  	
  $

  	
  322,000

  	
   

  	
  $

  	
  644,000

  	
   

  
	
  CFO

  	
   

  	
  .23

  	
  %

  	
  .36

  	
  %

  	
  .50

  	
  %

  	
  $

  	
  162,000

  	
   

  	
  $

  	
  324,000

  	
   

  
	
  COO

  	
   

  	
  .23

  	
  %

  	
  .36

  	
  %

  	
  .50

  	
  %

  	
  $

  	
  162,000

  	
   

  	
  $

  	
  324,000

  	
   

  
	
  SVP-HR

  	
   

  	
  .14

  	
  %

  	
  .22

  	
  %

  	
  .31

  	
  %

  	
  $

  	
  99,000

  	
   

  	
  $

  	
  198,000

  	
   

  
	
  VP-Fin.

  	
   

  	
  .14

  	
  %

  	
  .22

  	
  %

  	
  .31

  	
  %

  	
  $

  	
  99,000

  	
   

  	
  $

  	
  198,000

  	
   

  
	
  VP-Mfg.

  	
   

  	
  .11

  	
  %

  	
  .18

  	
  %

  	
  .25

  	
  %

  	
  $

  	
  80,000

  	
   

  	
  $

  	
  160,000

  	
   

  
	
  VP-Mkt.

  	
   

  	
  .10

  	
  %

  	
  .16

  	
  %

  	
  .22

  	
  %

  	
  $

  	
  72,000

  	
   

  	
  $

  	
  144,000

  	
   

  
	
  Totals

  	
   

  	
  1.4

  	
  %

  	
  2.22

  	
  %

  	
  3.08

  	
  %

  	
  $

  	
  996,000

  	
   

  	
  $

  	
  1,992,000

  	
   

  



 


Individual Modifier:


 


	
  Outstanding achievement:

  	
  1.2 times

  
	
  Target achievement:

  	
  1.0 times

  
	
  Below target achievement:

  	
  0.8 times

  



 





















 


Example:


 


	
  Position:

  	
  CFO

  
	
  Adjusted IBT:

  	
  $45.0 million

  
	
  Incentive%

  	
  .36%

  
	
  Individual Performance:

  	
  Target

  
	
   

  	
   

  
	
  Award calculation:

  	
  $45.0 million x .36 x 1.0 = $162,000

  



 


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