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Exhibit 10.1

Rewards - Compensation

Management Short-Term Incentive

(STI) Plan

Purpose

The STI plan provides an annual performance-based cash bonus opportunity for eligible employees. This is intended to achieve a number of goals including:

•   Emphasizing the Company’s commitment to competitive compensation practices;

•   Driving a high performance culture;

•   Assuring accountability;

•   Focusing on results, not activity; and

•   Reinforcing the importance of measurable and aligned goals and objectives.

Eligibility

To participate in the STI Plan, an employee must:

•   Be a regular full-time or part-time employee of the Company in job grades 25 or higher. Consultants and temporary agency employees performing services at Company facilities are not eligible to participate;

•   Not qualify as a participant in any other Company variable compensation program (such as sales or unit performance bonus programs).

To receive payment under the STI Plan, the participant must:

•   Be actively employed as of fiscal year-end

Plan Design

The plan design is based on financial metrics. The metrics will vary based on position and will generally include the following:

•   Operating Income*

•   Net Working Capital**

•   Organic Sales

•   Earnings Per Share

*       Operating Income used as a proxy for EBITDA

**     Net Working Capital used as a proxy for ROGI

There will be 5 design standards, as follows:

•   Region

•   Region – Operations or Sales Management

•   Corporate/Global

•   Business Unit, Country, Sub Region

•   Global Accounts, Industry, Program

Rewards - Compensation

Management Short-Term Incentive

(STI) Plan

Participant’s plan design will be based on position. Details of the design are as follows:

•   Region Standard

•   Applies generally to region roles, with the exception of sales and operations.

•   Region – Operations or Region Sales Management

•   Corporate/Global

•   Applies to corporate functions such as Finance, HR, Legal, Marketing, Technology

•   Region composite is the combination of Region Organic Revenue, EBITDA/Operating Income, and ROGI/Net Working Capital results

•   Business Unit, Country, Sub Region

*  Applied as applicable per position. If not applied, Organic Revenue weighting is 35% and EBITDA/OI is 40%. This design may apply to some Global Accts positions that cover select regions only.

•   Global Accounts, Global Industry, Global Program

Rewards - Compensation

Management Short-Term Incentive

(STI) Plan

Individuals who are on Collaboration Teams will be in one of the following plan designs, based on position.

•   Region Design

•   Region – Operations or Region Sales Management

•   Corporate/Global

•   Business Unit, Country, Sub Region

•   Global Accounts, Global Industry, Global Program

Rewards - Compensation

Management Short-Term Incentive

(STI) Plan

Target

•   Each metric will have a target level of performance. Payout will be determined for each metric based on performance relative to target. The target levels of performance will be established at the beginning of each fiscal year.

Threshold

•   Threshold performance levels will be established for each metric as follows:

•   Sales, Organic Revenue: 85% of target

•   Operating Income: 80% of target*

•   Net Working Capital: 80% of target

•   EPS: 80% of target

•   Operations Metrics: 80-90% of target, varies by metric

•   Payout at the threshold level of performance will be 50% of the target allocated to that metric.

Superior

•   Superior performance levels will be established for each metric as follows:

•   Sales, Organic Revenue: 105% of target

•   Operating Income: 115% of target*

•   Net Working Capital: 115% of target

•   EPS: 115% of target

•   Operations Metrics: 110-120% of target, varies by metric

•   Payout at the superior level of performance will be 150% of the target allocated to that metric.

*  Management reserves the right to adjust threshold/superior levels on an as-needed basis for small operating income targets.

See Appendix for payout schedule.

Superior Stretch Goal – Executive Committee

•   Additional superior goals will be established for metrics for the EC members as follows:

•   Organic Revenue: 110% of target

•   Operating Income: 125% of target

•   Net Working Capital: 125% of target

•   EPS: 125% of target

•   Payout at the superior stretch goal will be 200% of the target allocated to that metric

Payment

Payment will be made in cash, subject to taxes and deductions as applicable.

Payment will be made as close as possible to January 31 following the conclusion of the relevant Plan Year, but will be made no later than March 15^th of the calendar year following the Plan Year.

If a participant begins employment with the company during the Plan Year, bonus potential will be pro-rated for the time the participant was employed during the Plan Year.

If a participant transfers jobs and changes plan design standards, potential bonus will be pro-rated for the time spent in each job.

Rewards - Compensation

Management Short-Term Incentive

(STI) Plan

Administration

Participants may direct questions about the STI Plan to their local management or human resources representatives.

The Compensation Committee of the Board of Directors shall make a certification decision with respect to performance of financial metrics and consider extraordinary circumstances that may have positively or negatively impacted the achievement of the objectives. The Board or management in their discretion, reserves the right at any time to enhance, diminish or terminate all or any portion of any compensation plan or program, on a collective or individual basis.

Relevant Terms

Actively Employed - A full-time or part-time employee on the Company payroll. It excludes any employee who has been terminated from employment with the Company – voluntarily or involuntarily – in advance of fiscal year-end.

Company - H.B. Fuller Company and its wholly owned subsidiaries.

Eligible Earnings – Base salary, excluding short-term and long-term disability payments. For mid-year promotions, annual salary is pro-rated based on salary before and after promotion.

Payment - The cash reward payable after conclusion of the Plan Year.

Plan Year – The relevant Company fiscal year.

Short Term Incentive (STI) Plan - The program described herein. May also be referred to as “STIP” or “STI Plan”.

Rewards - Compensation

Management Short-Term Incentive

(STI) Plan

Payout is calculated for each incremental increase in performance (straight line interpolation).

EC members have an additional stretch superior goal as follows:

Organic Revenue: Payout is calculated at an additional 10% for each incremental increase in performance up to 110% of metric performance (straight line interpolation).

EPS, EBITDA/Operating Income, ROGI/Net Working Capital: Payout is calculated at an additional 5% for each incremental increase in performance up to 125% of metric performance (straight line interpolation).

Rewards - Compensation

Management Short-Term Incentive

(STI) Plan

Rewards - Compensation

Management Short-Term Incentive

(STI) Plan