Brush Engineered Materials Inc. and Subsidiaries
Long-Term Incentive Plan (LTIP)
Performance Period January 1, 2006
through December 31, 2008
IV. Performance Award Opportunity
The Long-Term Incentive Plan (LTIP) provides incentive compensation to eligible employees based
primarily on financial performance over multi-year periods.
Performance Period : January 1, 2006 through December 31, 2008
Business Unit Performance : The Plan has designated the following Business Units for the Performance
Each business unit has defined financial measures which have been approved by the Organization and
Compensation Committee of the Board of Directors. These measures are expressed as a threshold, target
Base Compensation : The participant’s annual base salary in effect at the start of the Performance Period.
Participants include only those individuals who are approved by the Organization and Compensation
Committee of the Board to participate.
Following the beginning of the Performance Period, new hires or individuals who are promoted with
significant additional responsibilities prior to July 1, 2006, may be
eligible for participation. Such participation must be confirmed by the Organization and Compensation
Committee of the Board. The eligibility of employees hired after June 30, 2006, will not be considered until
the subsequent Performance Period.
Participants must be employed on the last day of the Performance Period in order to be eligible for an
award. If a participant retires under a Company pension plan, any award will be prorated based on time
employed during the Performance Period but only if the participant worked at least one-half of the
Should a participant die or become permanently disabled or should there occur a Parent Company Change
in Control, the participant (o