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Exhibit 10.1
Cascade
Corporation
Executive Incentive
Plan
Fiscal Year 2010
Overview
The key plan objective for fiscal
2010 is to protect shareholder value. We believe the measure with
the greatest impact on protecting shareholder value is free cash
flow (FCF). As a result, this plan focuses on free cash flow as the
primary milestone metric. Adjusted income before taxes (AIBT) is
included as a second milestone metric.
Key Plan Features
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Initial threshold requires
participants to meet “double milestones” of adjusted
income before tax (AIBT) and free cash flow (FCF).
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Incentive payments are based on
actual free cash flow achieved during the year.
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Minimum and Target FCF milestone
are 15% and 25% higher, respectively, than company’s historic
FCF high.
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Board has discretion to adjust if
economic/business conditions warrant.
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Plan Metrics and
Guidelines
FCF and AIBT or executive incentive
calculations will be determined as follows:
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Basis for
calculation will be cash flow from operations (per audited
financial statements) minus maintenance capital
expenditures.
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Cash expenses
(tax adjusted) related to the European restructuring plan will be
added back.
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Adjusted Income Before Tax
(AIBT)
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Calculation of
threshold AIBT will be based on consolidated income before taxes
(per audited financial statements) (IBT).
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Executive
incentive expenses and stock-based compensation expense included in
IBT will be added back.
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Significant
non-recurring income and/or expenses may be included or excluded at
the Compensation Committee’s discretion.
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