1
Exhibit 10.18
BOISE CASCADE OFFICE PRODUCTS CORPORATION
KEY EXECUTIVE PERFORMANCE PLAN
1997 Payout Criteria
PAYOUT AS A PERCENT OF SALARY
Financial PRESIDENT
Improvement 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 Financial Improvement 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 Financial
Improvement not shown in the table.
- - Financial Improvement is measured by calculating the company's
economic value added.
Economic Value Added = 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 = Capital x 16%
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 while they are under construction and
up to two additional years subject to approval by the
Compensation Committee of the Board.
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BOISE CASCADE OFFICE PRODUCTS CORPORATION
KEY EXECUTIVE PERFORMANCE PLAN
1998 Payout Criteria
PAYOUT AS A PERCENT OF SALARY
Financial
Improvement CEO SVP VP
- -------------- ------- ------- -------
Less than
($61,215,000) 0.0% 0.0% 0.0%
($35,000,000) 15.0% 11.2% 8.7%
($ 1,448,000) 72.5% 54.4% 42.3%
($ 1,447,999) 102.5% 76.9% 59.8%
$ 0 105.0% 78.7% 61.2%
$35,000,000 125.0% 93.7% 72.9%
- - For Financial Improvement in excess of $35 Million, the
payout increases proportionally to the increase from
$0 Million to $35 Million.
- - The payout is interpolated on a straight line for Financial
Improvement not shown in the table.
- - Financial Improvement is measured by calculating the company's
economic value added.
Economic Value Added = 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 = Capital x 16%
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 while they are under construction and
up to two additional years subject to approval by the
Compensation Committee of the Board.