Exhibit 10.6
BELDEN CDT INC.
[2006] ANNUAL CASH INCENTIVE PLAN
BELDEN CDT INC. - [NAME OF PARTICIPANT]
OBJECTIVE
The Annual Cash Incentive Plan is designed to (1) attract, motivate and retain
key talent, (2) reward participants for individual and company performance and
(3) align management and shareholder interests.
ELIGIBILITY
Designated active, full-time associates who are direct reports to the President
and CEO and their direct reports (if (1) they occupy positions with a minimum E7
salary grade, (2) are not a covered participant in another annual incentive plan
and (3) have been approved for inclusion by the CEO) who are employed by the
Company as of the payout date of the plan year are eligible to participate. New
hires and associates who have been promoted, transferred or reclassified into a
covered position during the plan year will be eligible to participate on a
prorated basis based on the number of months of plan participation. An
individual must be hired, promoted, transferred or reclassified on or before the
15th of the calendar month to receive credit for that month.
Participants who are transferred to disability status will be paid according to
Belden CDT's short- and/or long-term disability plan and are normally ineligible
for incentive earnings during the period of disability. Participants who are on
an approved leave of absence are not normally entitled to earn performance
credit after the date of transfer to that status.
INCENTIVE AMOUNTS
Award levels will be calculated as a percent of salary. For purposes of the
incentive calculation, each employee's base salary as of January 1 of the plan
year will be used. In the case of promotions and associated salary increases,
the incentive payment will be prorated. Discretion may be used to adjust
incentive awards based on individual performance only with the approval of the
Compensation Committee of the Board of Directors.
PLAN OBJECTIVES
Performance measures and weights are established annually.
PLAN YEAR
January 1 through December 31, [2006].
PAYMENT DATE
Incentive awards will be paid in the first quarter of the year following the
plan year except in the absence of information required to report or calculate
payment. Participants must be on the payroll on the payment date to receive the
incentive award. The only exception to this rule is for a participant who
retires or who is terminated by the Company without cause after December 31 but
before the payment date.
BENEFITS AND TAX TREATMENT
Incentive award payments are subject to normal payroll taxes. Eligibility for
inclusion in pension contributions varies by country and pension plan design
provisions. Consult your local human resources department for questions on this
matter.
ADMINISTRATION
The Annual Cash Incentive Plan will be overseen by the President & CEO, the Vice
President of Human Resources, and the Chief Financial Officer. They, in turn,
will report to the Compensation Committee of the Board of Directors. These
individuals are responsible for:
- Plan interpretation;
- Examination of extraordinary circumstances;
- Approval of performance standards (i.e. goals, payouts, etc.); and
- Review and approval of performance achievement levels and awards
Issues concerning plan administration will be first taken up with the Vice
President of Human Resources; next level of review will be the CEO.
Incentive plan calculations are the responsibility of the Chief Financial
Officer or his designee.
CLAIMS/RIGHTS
This Annual Cash Incentive Plan shall not be construed as an employment contract
with Belden CDT Inc. or any affiliate nor is it a guarantee of compensation or
benefits. The plan may be suspended, modified, revoked or terminated in its
entirety, or any portion thereof, at any time for any reason and without notice,
by the Company.
Participants will receive a personal copy of the Plan, which shall be
"RESTRICTED" and may not be distributed to others by the participant.
APPROVED:
___________________________ DATE:___________________________
CATHY ODOM STAPLES
VICE PRESIDENT, HUMAN RESOURCES
___________________________ DATE:___________________________
JOHN S. STROUP
PRESIDENT & CEO
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I HAVE RECEIVED A COPY OF THE [2006] ANNUAL CASH INCENTIVE PLAN.
[NAME OF PARTICIPANT]
[TITLE OF PARTICIPANT]
[PARTICIPANT'S OPERATING UNIT]
[LOCATION]
___________________________________ _________________________
SIGNATURE DATE
BELDEN CDT INC. - [NAME OF PARTICIPANT]
MEASUREMENT RELATIVE WEIGHTING THRESHOLD BUDGET/TARGET
- ---------------------------------- -------------------------------- ---------------- ----------------
Consolidated EPS from continuing 80% [40% for division
operations presidents] $1.28 [for 2006] $1.60 [for 2006]
Consolidated working capital as %
of revenues 20%[10% for division presidents] 20.9% [for 2006] 18.8% [for 2006]
[For division presidents, division
operating income] [35%] [$_____________] [$_____________]
[For division presidents, division
working capital as % of revenues] [15%] [________%] [_______%]
January 1, [2006] Base Salary: $_________
50% Target Bonus: $_________
[insert any increased Base Salary amount after January 1, [2006] and associated
Target Bonus]
Subject to (1) financial performance factor adjustment, (2) individual
performance factor adjustment, and (3) Compensation Committee approval.
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I HAVE RECEIVED A COPY OF THE [2006] ANNUAL CASH INCENTIVE PLAN.
[NAME OF PARTICIPANT]
[TITLE OF PARTICIPANT]
[PARTICIPANT'S OPERATING UNIT]
[LOCATION]
___________________________________ _________________________
SIGNATURE DATE
BELDEN CDT INC. - [NAME OF PARTICIPANT]
MEASUREMENT RELATIVE WEIGHTING THRESHOLD BUDGET/TARGET
- ---------------------------------- -------------------------------- ---------------- ----------------
Consolidated EPS from continuing 80% [40% for division
operations presidents] $1.28 [for 2006] $1.60 [for 2006]
Consolidated working capital as %
of revenues 20%[10% for division presidents] 20.9% [for 2006] 18.8% [for 2006]
[For division presidents, division
operating income] [35%] [$_____________] [$_____________]
[For division presidents, division
working capital as % of revenues] [15%] [________%] [_______%]
January 1, [2006] Base Salary: $_________
50% Target Bonus: $_________
[insert any increased Base Salary amount after January 1, [2006] and associated
Target Bonus]
Subject to (1) financial performance factor adjustment, (2) individual
performance factor adjustment, and (3) Compensation Committee approval.
SIGN AND RETURN THIS COPY TO CATHY STAPLES, SAINT LOUIS.
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