Cellu Tissue Holdings Inc. Corporate Bonus Plan for Fiscal 2008
Cellu Tissue Holdings Inc. established a Corporate Bonus Plan for fiscal year 2008 to reward employees based on the company's Adjusted EBITDA performance. The plan replaces previous 'cliff' bonus structures with a sliding scale, where bonus payouts increase as Adjusted EBITDA surpasses the prior year's results. Employees can earn up to 100% of their target bonus if the company achieves a budgeted EBITDA of $49 million, with higher payouts possible for exceeding this target. The plan is based on specific financial benchmarks and aims to align employee incentives with company performance.
EXHIBIT 10.26
Cellu Tissue Holdings Inc.
Corporate Bonus Plan
Fiscal 2008
Background Principal: To eliminate the previous history of cliff bonus programs and institute a plan that pays out a “sliding scale” once Adjusted EBITDA surpasses prior year results. Maximum Payout (as defined by employee)is achieved at budget EBITDA of $49MM.
| Fiscal 2008 Adj. |
| % of Target |
|
| EBITDA $(MM) |
| Payout |
|
| 44.0 |
| 50 | % |
| 44.5 |
| 55 | % |
| 45.0 |
| 60 | % |
| 45.5 |
| 65 | % |
| 46.0 |
| 70 | % |
| 46.5 |
| 75 | % |
| 47.0 |
| 80 | % |
| 47.5 |
| 85 | % |
| 48.0 |
| 90 | % |
| 48.5 |
| 95 | % |
| 49.0 |
| 100 | % |
| 51.0 or greater |
| 120 | % |
| Add’l Background Information: |
|
|
| |
| Prior Year Base Line |
|
|
| |
|
|
|
|
| |
| Base Cellu |
| $ | 30.00 |
|
| City (11 months) |
| $ | 13.66 |
|
|
|
| $ | 43.66 |
|
Adjusted EBITDA as defined by the Cellu Tissue Monthly Reporting Package
Maxium payout for Fiscal 2008 is 100%.
