1
EXHIBIT 10.18
BOISE CASCADE OFFICE PRODUCTS CORPORATION
KEY EXECUTIVE PERFORMANCE PLAN
1996 Payout Criteria Based on Economic Value Added (EVA)
Economic Value Added (EVA(R)) is a registered trademark of Stern
Stewart & Co., and they have assisted Boise Cascade Office Products
in developing this incentive plan.
PAYOUT AS A PERCENT OF SALARY
Improvement PRESIDENT
in EVA CEO COO/CFO RELIABLE VP
- --------------- ------- -------- -------- -----
Less than
$(34,054,000) 0.0% 0.0% 0.0% 0.0%
$(26,000,000) 12.6% 9.5% 8.4% 7.4%
$(22,884,000) 17.4% 13.1% 11.6% 10.2%
$(22,883,999) 47.4% 35.6% 31.6% 27.7%
$(13,000,000) 62.4% 46.8% 41.6% 36.4%
$ 0 122.4% 91.8% 81.6% 71.4%
$ 6,500,000 152.4% 114.3% 101.6% 88.9%
$ 13,000,000 162.4% 121.8% 108.2% 94.7%
- - For Improvement in EVA in excess of $13 Million, the payout
increases proportionally to the increase from $6.5 Million
to $13 Million.
- - The payout is interpolated on a straight line for
Improvement in EVA not shown in the table.
EVA = Net Operating Profit Before Tax -
Capital Charge
Net Operating Profit
Before Tax (NOPBT)* = Income from operating assets
+ Imputed interest of capitalized
lease obligations
- Amortization of restructuring
losses
* Unusual nonrecurring and nonoperating income or expense items do not affect
NOPBT
Capital Charge = EVA Capital x 16%
EVA Capital** = Operating Capital
+ Imputed capital value of lease
obligations
- Gain from the sale of assets
+ Unamortized restructuring losses
** Nonrecurring and nonoperating losses do not affect Operating
Capital. There may be adjustments to Operating Capital for
strategic investments subject to approval by the Compensation
Committee of the Board.
2
EXHIBIT 10.18
BOISE CASCADE OFFICE PRODUCTS CORPORATION
KEY EXECUTIVE PERFORMANCE PLAN
1997 Payout Criteria Based on Economic Value Added (EVA)
Economic Value Added (EVA(R)) is a registered trademark of Stern
Stewart & Co., and they have assisted Boise Cascade Office Products
in developing this incentive plan.
PAYOUT AS A PERCENT OF SALARY
Improvement PRESIDENT
in EVA CEO COO/CFO RELIABLE VP
- -------------- ------- ------- -------- -----
Less than
$(47,329,996) 0.0% 0.0% 0.0% 0.0%
$(23,729,000) 19.9% 14.9% 13.2% 11.6%
$(23,728,999) 49.9% 37.4% 33.2% 29.1%
$(21,000,000) 52.5% 39.3% 35.0% 30.6%
$ 0 112.5% 84.3% 75.0% 65.6%
$ 10,500,000 122.4% 91.8% 81.6% 71.4%
- - For Improvement in EVA in excess of $10.5 Million, the payout
increases proportionally to the increase from $0 Million
to $10.5 Million.
- - The payout is interpolated on a straight line for
Improvement in EVA not shown in the table.
EVA = Net Operating Profit Before Tax -
Capital Charge
Net Operating Profit
Before Tax (NOPBT)* = Income from operating assets
+ Imputed interest of capitalized
lease obligations
- Amortization of restructuring
losses
* Unusual nonrecurring and nonoperating income or expense
items do not affect NOPBT
Capital Charge = EVA Capital x 16%
EVA Capital** = Operating Capital
+ Imputed capital value of lease
obligations
- Gain from the sale of assets
+ Unamortized restructuring losses
** Nonrecurring and nonoperating losses do not affect Operating
Capital. There may be adjustments to Operating Capital for
strategic investments subject to approval by the Compensation
Committee of the Board.