COLUMBUS MCKINNON CORPORATION
CORPORATE INCENTIVE PLAN
This INCENTIVE PLAN will focus only on PRETAX INCOME, as defined.
At the beginning of each fiscal year the Columbus McKinnon Board of Directors ("Board") will establish a
BUDGET TARGET PERCENTAGE defined as the percentage of TARGET BONUS that will be paid if actual
results equal budget for the quarter or year. The BUDGET TARGET PERCENTAGE will be established by the
Board at the beginning of each year, and it will be based on the Board's judgment about the budget, current and
expected economic conditions, the financial condition of the Company, and other pertinent factors.
PRETAX INCOME will be consolidated pretax income as shown in the periodically published financial
statements of the Company, with the following adjustments, which will be made at the discretion of the Board:
o The effects of acquisitions and divestitures, significant changes in accounting rules, and other significant
abnormal transactions during the year will be adjusted appropriately so that ACTUAL PRETAX INCOME is on
a basis equivalent to BUDGETED PRETAX INCOME for that year.
o Both BUDGETED PRETAX INCOME and ACTUAL PRETAX INCOME will exclude any BONUS
In no event will any BONUS be paid if ACTUAL PRETAX INCOME equals 75% or
less of BUDGETED PRETAX INCOME.
Board designated CM associates, except Sales Directors, Regional Sales Managers, and District Sales
Managers (covered by a separate revenue quota-based plan), will participate in the INCENTIVE PLAN.
BASE PAY used for the annual calculation is defined as compensation earned during the calendar year that ends
within the fiscal year, but it excludes bonuses, severance pay, tuition reimbursement, restricted stock bonuses and
interest, dividends and in lieu of dividend payments, moving expense reimbursement, and service and recognition
awards. BASE PAY used for the interim quarterly payments will be compensation earned during the