Kimball International Supplemental Bonus Plan
Kimball International's Board of Directors annually approves a bonus pool for a Supplemental Bonus Plan, capped at 1.5% of the company's consolidated net income (after tax and before certain other bonuses). The Chairman, President, and CEO can grant bonuses from this pool to selected executives and employees for exceptional individual efforts not covered by the main profit-sharing plan. Any bonus for the CEO requires Compensation Committee approval. The plan follows the same payment and forfeiture rules as the company's Indirect Profit Sharing Bonus Plan.
Exhibit 10(a)
SUPPLEMENTAL BONUS PLAN
The Board of Directors, on an annual basis, approves a total dollar bonus pool for a Supplemental Bonus Plan, up to a maximum of one and one-half percent (1.5%), on an after-tax basis, of the Company's consolidated net income calculated before amount payable to employees under the Company's Indirect Profit Sharing Bonus Plan.
The Board of Directors empowers the Chairman of the Board and President, Chief Executive Officer to grant individual bonuses under the plan to eligible participants up to the total dollar bonus pool approved by the Board. Supplemental bonuses are awarded based upon individual efforts not recognized under the Company's Indirect Profit Sharing Bonus Plan.
Eligible participants are the Chairman of the Board and President, Chief Executive Officer, Secretary, Treasurer, Senior Executive Vice Presidents, Executive Vice Presidents, and Vice Presidents of the Company or its subsidiaries and any other salaried employees of the Company or subsidiaries as the Chairman of the Board and President, Chief Executive Officer may select.
Any bonus under this plan awarded to the Chief Executive Officer must be approved by the Compensation Committee of the Board of Directors.
The payment and forfeiture provisions under this plan are under the same provisions as the Indirect Profit Sharing Bonus Plan.
