Document:

Exhibit 10-8

Summary of Non-Employee Director and Named Executive
Officer Compensation Arrangements

Director Compensation

The
following table sets forth current rates of cash compensation for non-employee
directors. 

	
  Annual Retainer:

  	
   

  	
   

  	
   

  
	
  Chairman

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  Non-employee directors other than Chairman

  	
   

  	
  24,000

  	
   

  
	
  Committee Chair
  Annual Retainer(1):

  	
   

  	
   

  	
   

  
	
  Audit Committee

  	
   

  	
  10,000

  	
   

  
	
  Compensation Committee

  	
   

  	
  3,000

  	
   

  
	
  Nominating and Governance Committee

  	
   

  	
  3,000

  	
   

  
	
  Board Meeting
  Attendance Fee

  	
   

  	
  1,000

  	
   

  
	
  Committee Meeting Attendance
  Fees(2)

  	
   

  	
  1,000

  	
   

  
					

 

(1) Effective May 1, 2005.

(2) Prior to March 1, 2005, the committee meeting
attendance fee was $700. 

In addition to cash compensation, non-employee
directors receive an annual award of 1,000 stock appreciation rights (SARS) (2,700
if Proposal 2 contained in Cascade’s Proxy Statement for the 2005 Annual
Meeting of Shareholders is approved). 
Non-employee directors received an award of 5,000 SARS when the Cascade
Corporation Stock Appreciation Rights Plan was approved at the 2004 Annual
Meeting of Shareholders.  Each new
director that is elected by the shareholders will also receive an award of
5,000 SARS.  SARS are granted at fair
market value, become exercisable on an annual basis ratably over four years,
and have a term of ten years.

Non-employee directors are
also reimbursed for travel and other expenses attendant to membership on the
Cascade board.

Executive Compensation

Base
Salary.   The following table sets forth the base
salaries of Cascade’s named executive officers (as defined in Item 402(a)(3) of
Regulation S-K) and their titles as of the date of filing of Cascade’s Form
10-K for the fiscal year ended January 31, 2005 (“fiscal 2005”).  All of Cascade’s executive officers are
at-will employees whose compensation and employment status may be changed at
any time by the board of directors.  
Base salary increases are determined annually by the board of directors
and become effective on February 1 of each year. 

	
   

  	
   

  	
  Fiscal 2005

  	
   

  
	
  Executive Officer and Position

  	
   

  	
   

  	
   

  	
  Salary

  	
   

  
	
  Robert C. Warren,
  Jr., President and Chief Executive Officer

  	
   

  	
  $

  	
  430,000

  	
   

  
	
  Terry H. Cathey, Senior Vice President and Chief Operating Officer

  	
   

  	
  250,000

  	
   

  
	
  Richard S. Anderson, Senior Vice President and Chief Financial Officer

  	
   

  	
  250,000

  	
   

  
	
  Gregory S.
  Anderson, Senior Vice President-Human Resources

  	
   

  	
  180,000

  	
   

  
	
  Michael E. Kern, Vice President-Marketing

  	
   

  	
  145,000

  	
   

  
	
  Charlie S.
  Mitchelson, Vice President and Managing Director, Europe

  	
   

  	
  160,000

  	
   

  
	
  Jeffrey K.
  Nickoloff, Vice President-Corporate Manufacturing

  	
   

  	
  160,000

  	
   

  
	
  Joseph G.
  Pointer, Vice President-Finance

  	
   

  	
  180,000

  	
   

  
	
  Anthony F. Spinelli, Vice President-OEM Products

  	
   

  	
  165,000

  	
   

  
							

 

 1
 

Annual
Incentive.   Executive officers are also eligible to
receive an incentive each year under an executive incentive plan approved by
Cascade’s board of directors.  Incentives
approved for the named executive officers for fiscal 2005 are as shown in the
following table:

	
  Executive Officer

  	
   

  	
   

  	
   

  	
  Fiscal 2005 Incentive

  	
   

  
	
  Robert C. Warren,
  Jr., President and Chief Executive Officer

  	
   

  	
   

  	
  $

  	
  600,000

  	
   

  	
   

  
	
  Terry H. Cathey, Senior Vice President and Chief Operating Officer

  	
   

  	
   

  	
  300,000

  	
   

  	
   

  
	
  Richard S.
  Anderson, Senior Vice President and Chief Financial
  Officer

  	
   

  	
   

  	
  300,000

  	
   

  	
   

  
	
  Gregory S.
  Anderson, Senior Vice President-Human Resources

  	
   

  	
   

  	
  165,000

  	
   

  	
   

  
	
  Michael E. Kern, Vice President-Marketing

  	
   

  	
   

  	
  89,750

  	
   

  	
   

  
	
  Charlie S.
  Mitchelson, Vice President and Managing Director,
  Europe

  	
   

  	
   

  	
  18,500

  	
   

  	
   

  
	
  Jeffrey K.
  Nickoloff, Vice President-Corporate Manufacturing

  	
   

  	
   

  	
  124,000

  	
   

  	
   

  
	
  Joseph G.
  Pointer, Vice President-Finance

  	
   

  	
   

  	
  160,000

  	
   

  	
   

  
	
  Anthony F. Spinelli, Vice President-OEM Products

  	
   

  	
   

  	
  140,000

  	
   

  	
   

  

 

Annual incentive payments to executive officers are
structured to encourage the building of shareholder value by maximizing
Cascade’s pretax income. For fiscal 2005, executives were eligible to receive a
specified percentage (depending on position) of pre-tax income before
non-recurring income or expense items, incentive payments and certain other
expenses (“IBT”) if IBT exceeded $17 million. 
The percentage of IBT each executive was entitled to receive increased
if IBT exceeded $22 million, and increased again if IBT exceeded $28 million.  Annual incentive payments were limited to a
maximum of 100% to 150% of each executive’s base salary depending on their
position. IBT for fiscal 2005 was $45.3 million, resulting in incentive
payments to executive officers equal to 100% of the maximum amount participants
could have received.  Certain executive
officers receive annual incentive payments based upon one or more of the
following: sales levels, pre-tax operating income of the business units for
which they were responsible and IBT of Cascade as a whole. The board of
directors had the discretion to approve annual incentives of up to 30% of base
salary if IBT was below $17 million or if sales or pre-tax operating income
levels were not met.

Long-term Incentive.   The
third component of executive compensation for Cascade’s executive officers is
long-term incentive awards.  Long-term
incentive awards granted in fiscal 2005 consisted of awards of SARS under the
Cascade Corporation Stock Appreciation Rights Plan.  The SARS were granted with an exercise price
equal to the fair market value of Cascade's common stock on the date of the grant,
have a term of 10 years, and become exercisable ratably over four years.  

The
number of SARS granted to the named executive officers in fiscal 2005 are as
shown in the following table.

	
   

  	
   

  	
  Stock Appreciation Rights

  	
   

  
	
  Executive Officer

  	
   

  	
   

  	
   

  	
  Awarded in Fiscal 2005

  	
   

  
	
  Robert C. Warren,
  Jr., President and Chief Executive Officer

  	
   

  	
   

  	
  72,000

  	
   

  	
   

  
	
  Terry H. Cathey, Senior Vice President and Chief Operating Officer

  	
   

  	
   

  	
  48,000

  	
   

  	
   

  
	
  Richard S.
  Anderson, Senior Vice President and Chief Financial Officer

  	
   

  	
   

  	
  48,000

  	
   

  	
   

  
	
  Gregory S.
  Anderson, Senior Vice President-Human Resources

  	
   

  	
   

  	
  48,000

  	
   

  	
   

  
	
  Michael E. Kern, Vice President-Marketing

  	
   

  	
   

  	
  33,000

  	
   

  	
   

  
	
  Charlie S.
  Mitchelson, Vice President and Managing Director,
  Europe

  	
   

  	
   

  	
  33,000

  	
   

  	
   

  
	
  Jeffrey K.
  Nickoloff, Vice President-Corporate Manufacturing

  	
   

  	
   

  	
  33,000

  	
   

  	
   

  
	
  Joseph G.
  Pointer, Vice President-Finance

  	
   

  	
   

  	
  33,000

  	
   

  	
   

  
	
  Anthony F. Spinelli, Vice President-OEM Products

  	
   

  	
   

  	
  33,000

  	
   

  	
   

  
								

 

The number of SARS granted to each executive in fiscal
2005 was determined using grant ranges established by the Compensation
Committee of the board of directors with minimum, target, and 

 2
 

maximum grants based on
Cascade’s fiscal year ended January 31, 2004 (“fiscal 2004”) return on average
assets (defined as net income before extraordinary items divided by the average
total assets at the beginning and end of each fiscal quarter).  The Compensation Committee set a target rate
of return on average assets, with 100% of the target return on average assets
equaling the target grant of SARS, 90% of the target return on average assets
equaling the minimum grant of SARS and 110% of the target return on average
assets equaling the maximum grant of SARS. 
Cascade’s fiscal 2004 return on average assets was 108% of the target
rate.  Thus the SARS granted in fiscal
2005 approached the maximum permitted under the guidelines set by the
Compensation Committee.  In June 2006,
the Compensation Committee will recommend long-term incentive awards based on
the fiscal 2005 return on average assets.

Benefit Plans and Other Arrangements.   Executive
officers are also eligible to participate in Cascade’s broad-based benefit programs
generally available to all salaried employees, including health, disability,
life insurance programs and a defined contribution or defined benefit pension plan.  The executives also receive certain
perquisites including the use of company automobiles and tax reimbursements
related thereto.

Messrs. Warren, Cathey, and R.S. Anderson are
each a party to a Severance Agreement with Cascade, which are Exhibits 10.3,
10.2, and 10.1, respectively, to Cascade’s Form 10-K for fiscal 2005.

 3EXHIBIT 10.1

 

Cascade Corporation

Executive Incentive Plan 

FY 2006

 

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 $28 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

  	
   

  	
  $28M - <$36M

  	
   

  	
  $36M - <$45M

  	
   

  	
  $45M + >

  	
   

  	
  Target

  	
   

  	
  Maximum

  	
   

  
	
  CEO

  	
   

  	
  .5

  	
  %

  	
  .8

  	
  %

  	
  1.1

  	
  %

  	
  $

  	
  322,000

  	
   

  	
  $

  	
  644,000

  	
   

  
	
  CFO

  	
   

  	
  .25

  	
  %

  	
  .4

  	
  %

  	
  .56

  	
  %

  	
  $

  	
  162,000

  	
   

  	
  $

  	
  324,000

  	
   

  
	
  COO

  	
   

  	
  .25

  	
  %

  	
  .4

  	
  %

  	
  .56

  	
  %

  	
  $

  	
  162,000

  	
   

  	
  $

  	
  324,000

  	
   

  
	
  SVP-HR

  	
   

  	
  .15

  	
  %

  	
  .25

  	
  %

  	
  .34

  	
  %

  	
  $

  	
  99,000

  	
   

  	
  $

  	
  198,000

  	
   

  
	
  VP-Fin.

  	
   

  	
  .15

  	
  %

  	
  .25

  	
  %

  	
  .34

  	
  %

  	
  $

  	
  99,000

  	
   

  	
  $

  	
  198,000

  	
   

  
	
  VP-Mfg.

  	
   

  	
  .125

  	
  %

  	
  .20

  	
  %

  	
  .275

  	
  %

  	
  $

  	
  80,000

  	
   

  	
  $

  	
  160,000

  	
   

  
	
  VP-Mkt.

  	
   

  	
  .09

  	
  %

  	
  .15

  	
  %

  	
  .20

  	
  %

  	
  $

  	
  58,000

  	
   

  	
  $

  	
  116,000

  	
   

  
	
  Totals

  	
   

  	
  1.5

  	
  %

  	
  2.4

  	
  %

  	
  3.3

  	
  %

  	
  $

  	
  982,000

  	
   

  	
  $

  	
  1,964,000

  	
   

  

 

Individual
Modifier:

 

	
  Outstanding
  achievement:

  	
   

  	
  1.2
  times

  	
   

  
	
  Target
  achievement:

  	
   

  	
  1.0
  times

  	
   

  
	
  Below
  target achievement:

  	
   

  	
  0.8
  times

  	
   

  

 

Example:

 

	
  Position:

  	
   

  	
  CFO

  	
   

  
	
  Adjusted
  IBT:

  	
   

  	
  $40.0 million

  	
   

  
	
  Incentive
  %

  	
   

  	
  .4%

  	
   

  
	
  Individual
  Performance:

  	
   

  	
  Target

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Award
  calculation:

  	
   

  	
  $40.0
  million x .4% x 1.0 = $160,000

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