Actuant Corporation Executive and Business Unit Leader Fiscal 2003 Bonus Plan Agreement

Summary

This agreement outlines Actuant Corporation's fiscal 2003 bonus plan for executive staff and business unit leaders. Bonuses are based on improvements in specific financial performance measures, primarily the Consolidated Combined Management Measure (CMM) for executives and a mix of Business Unit CMM and Consolidated CMM for business unit leaders. The agreement specifies bonus targets, payout percentages, and the calculation methods for these measures. Key executives and business unit leaders are named, with their respective bonus amounts at target performance levels detailed.

EX-10.31 5 dex1031.txt DESCRIPTION OF FISCAL 2003 MANAGE. AGREEMENT Exhibit 10.31 Executive Staff Fiscal 2003 Bonus Measurements The fiscal 2003 bonus plan for executive staff will be based on year-over-year improvement in Actuant's Consolidated Combined Management Measure (CMM) Supporting Definitions: Consolidated CMM = Operating Profit (before amortization) less Asset Carrying Charge of 20% of total debt, shareholders' equity and accumulated amortization of intangible assets Bonus Targets: 0% 100% 250% (Target) ------------------------------------------------- Consolidated CMM $29.1 million $33.1 million $41.1 million Proposed Bonus Name Functional Area Payout @ 100% - -------------------------------------------------------------------------------- Robert Arzbaecher Chief Executive Officer $ 350,000 Andrew Lampereur Chief Financial Officer $ 112,500 Ralph Keller Vice President of Operations $ 82,000 Brian Kobylinski Vice President of Business Development $ 61,250 Business Unit Leader Fiscal 2003 Bonus Measurements The fiscal 2003 bonus plan for business unit leaders will be based on year-over-year improvement in Business Unit CMM (80%) and year-over-year improvement in Actuant's CMM (20%). Supporting Definitions: Business Unit CMM = Operating Profit (before amortization) less Asset Carrying Charge of 20% of Net Assets Employed Net Assets Employed = Net accounts receivable + net inventory + prepaid assets + net fixed assets + other long-term assets (excluding intangible assets) - accounts payable - accrued current liabilities Bonus Targets: Mark Goldstein; Vice President of Gardner Bender- Gardner Bender CMM 0% payout: Less than or equal to 80% of prior year. 100% payout: 10% improvement over prior year 250% payout: 50% improvement over prior year Consolidated CMM See consolidated CMM scale above. Bonus payout at 100% $119,250