Cellu Tissue Holdings Inc. Corporate Bonus Plan for Fiscal 2009
Cellu Tissue Holdings Inc. established a Corporate Bonus Plan for Fiscal Year 2009 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 $60 million, with payouts ranging from 50% to 120% of the target based on specific EBITDA thresholds. The plan is governed by definitions in the company's monthly reporting package.
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EXHIBIT 10.34
Cellu Tissue Holdings Inc.
Corporate Bonus Plan
Fiscal 2009
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 $60MM.
| Fiscal 2009 Adj. EBITDA $(MM) | % of Target Payout | | ||||||
|---|---|---|---|---|---|---|---|---|
55.89 | 50 | % | ||||||
56.40 | 56 | % | ||||||
56.92 | 63 | % | ||||||
57.43 | 69 | % | ||||||
57.94 | 75 | % | ||||||
58.46 | 81 | % | ||||||
58.97 | 88 | % | ||||||
59.48 | 94 | % | ||||||
60.00 | 100 | % | ||||||
60.52 | 106 | % | ||||||
61.03 | 113 | % | ||||||
61.54 or greater | 120 | % | ||||||
Add'l Background Information:
Adjusted EBITDA as defined by the Cellu Tissue Monthly Reporting Package
Maxium payout for Fiscal 2009 is 100%.
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- EXHIBIT 10.34
