Escalade (ESCA)

Base Salary

In general, base salaries are set at the beginning of each year based upon the Company’s income level generated in the prior year, any changes in the level of responsibility and the subjective individual performance review conducted by the Company’s Compensation Committee. The 2009 base salaries for the Companies executive officers are as follows:

(a) Messrs Griffin and Keller were entitled to receive $56,200 and $300,000 respectively but have voluntarily agreed to a 10% reduction in each of these amounts.

(b) Ms. Meinert replaced Terry Frandsen, who resigned as VP Finance and CFO of Escalade, Inc. on January 30, 2009.

Base Salary

In general, base
salaries are set at the beginning of each year based upon the Company’s income
level generated in the prior year, any changes in the level of responsibility
and the subjective individual performance review conducted by the Company’s
Compensation Committee. The 2009 base salaries for the Companies executive
officers are as follows:

(a) Messrs
Griffin and Keller were entitled to receive $56,200 and $300,000 respectively
but have voluntarily agreed to a 10% reduction in each of these amounts.

(b) Ms.
Meinert replaced Terry Frandsen, who resigned as VP Finance and CFO of
Escalade, Inc. on January 30, 2009.

Base Salary

In general, base
salaries are set at the beginning of each year based upon the Company’s income
level generated in the prior year, any changes in the level of responsibility
and the subjective individual performance review conducted by the Company’s
Compensation Committee. The 2009 base salaries for the Companies executive
officers are as follows:

(a) Messrs
Griffin and Keller were entitled to receive $56,200 and $300,000 respectively
but have voluntarily agreed to a 10% reduction in each of these amounts.

(b) Ms.
Meinert replaced Terry Frandsen, who resigned as VP Finance and CFO of
Escalade, Inc. on January 30, 2009.

Base Salary

The Compensation Committee seeks to compensate the named executive officers competitively within the industry while at the same time designing compensation components that base a significant portion of total compensation on performance. In general, base salary levels are set at the beginning of each year at levels believed by the Compensation Committee to be sufficient to attract and retain qualified executives when considered with the other components of the Company’s compensation structure. The primary considerations in determining whether base salaries will be adjusted is the Company’s income level generated in the previous year and any changes in level of responsibility. The Compensation Committee also subjectively reviews the individual performance of each named executive officer, based on the performance of the Company and the individual’s level of contribution towards that performance.

Accordingly, for fiscal 2007 the Compensation Committee established base salaries for the Company’s key executives with the intent to motivate performance by providing significant upside potential through incentive compensation and less on guaranteed compensation in the form of salaries. The Compensation Committee does not target any specific benchmark for base salary levels for its key executives compared to comparable companies within the Company’s industries, but generally believes that base salaries should be in the lower half of such comparisons coupled with significant opportunities to achieve high incentive, performance based compensation. The Compensation Committee considered the scope of and accountability associated with each executive officer’s position in addition to such factors as the performance and experience of each executive officer when setting base salary levels for fiscal 2007.

In 2007, the Compensation Committee increased the base salary for Daniel A. Messmer, the Company’s Chief Executive Officer as of the beginning of the Company’s fiscal year by 3.1% to $247,500. The Compensation Committee also increased the base salary for Terry D. Frandsen, the Company’s Chief Financial Officer, by 3.1% to $181,500. The Compensation Committee believed that such increases were warranted for each such officer based primarily on the Company’s performance and their contribution to such results.

In 2007, the Compensation Committee increased the base salary for Robert E. Griffin, the Company’s Chairman of the Board, by 8.1% to $56,200 reflecting what the Compensation Committee deemed to be fair compensation for the leadership he continues to provide to the Company and its operating units.

In August 2007, the Board of Directors hired Robert J. Keller as the Company’s President and Chief Executive Officer. Based upon his experience, his responsibilities and duties in operating a public company and negotiations with Mr. Keller in attracting him to join the Company, the Compensation Committee set his 2007 base salary at $300,000 effective upon his commencement of employment with the Company.

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