Exhibit 10.44
 

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The Pantry, Inc.
 
 
 
Fiscal Year 2002
MANAGEMENT & ADMINISTRATIVE INCENTIVE PLAN
 
 

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The Pantry, Inc.
 
Fiscal Year 2002
MANAGEMENT & ADMINISTRATIVE INCENTIVE PLAN
 

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PURPOSE
 
The purpose of the incentive plan is to foster outstanding Company financial
performance, to direct participants’ efforts toward performance that supports
the Company’s business plan and to reward key participants for these
accomplishments with an annual cash bonus.
 
ADMINISTRATION
 
The Incentive Committee has the authority to make all necessary determinations
in administration and interpretation of the Plan. All requests for an exception
to the Plan or interpretations should be fully researched, documented and made
in writing to the Senior Vice President, Administration. Requests must have
approval of the functional area’s Vice President. All decisions made by the
Incentive Committee are final and binding.
 
DETERMINATION OF INCENTIVE PAYOUT
 
The Incentive Committee will determine prior to or during the fiscal year a
minimum, midpoint and maximum E.B.I.T.D.A. target. These targets represent the
points at which plan participants will receive an incentive award.
 
1.
 
Sr. Executive Staff Member or Officer: The incentive award is 100% discretionary
based on the financial results of all companies comprising The Pantry, Inc.

2.
 
Executive Staff or Region Executive: The incentive award is 50% discretionary &
50% based on the financial results of the employing Company or the individual’s
own region, as applicable.

3.
 
Executive Staff or Region Manager: The incentive award is 50% discretionary &
50% based on the financial results of the employing Company or the individual’s
own region, as applicable.

4.
 
Director or Division Director: The incentive award is 50% discretionary and 50%
based on the financial results of the employing Company or the individual’s own
division, as applicable.

5.
 
Director: The incentive award is 50% discretionary and 50% based on the
financial results of the employing Company, as applicable.

6.
 
Manager or Professional Staff: The incentive award is 50% discretionary and 50%
based on the financial results of the employing Company, as applicable.

7.
 
Supervisor, Technical or Support Staff: The incentive award is 50% discretionary
and 50% based on the financial results of the employing Company, as applicable.

8.
 
Administrative, Clerical or Support Staff: Discretionary Christmas Bonus.

 
SELECTION OF PARTICIPANTS
 
Each year, the Incentive Committee will review and approve a list of employees,
whose efforts can materially affect the performances of the Company. On review
and approval, these employees become participants for the fiscal year. The
Incentive Committee, with the approval of the Board’s Compensation Committee,
will establish and assign participants to incentive award categories.
 
An employee who has been selected as a plan participant will be notified that
s/he is eligible to participate and informed of his/her category of
participation and incentive award potential. Employees designated in Category 8
(Administrative/Clerical Staff) may receive an incentive award in the form of a
Christmas Bonus at the discretion of the Company. Therefore, notification is
informal and made at the time of payment.
 
INCENTIVE AWARDS
 
The Incentive Committee will determine as early as practicable after the close
of the fiscal year, the financial results verses targets. If the financial
results are less than the established E.B.I.T.D.A. minimum target, then no
incentive will be paid. Incentive amounts will be paid based on full achievement
of each target. For example, no more than

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the Minimum incentive award will be paid if the MidPoint target is not fully
achieved. Payment will be made as soon as practicable after the end of the
fiscal year closing.
 
The following table shows the incentive awards available based on incentive
level groupings and financial results. The incentive award equals a percentage
of the base salary, exclusive of other types of compensation, earned during the
fiscal year.
 
Category

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General Description

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Minimum

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Midpoint

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Maximum

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1
  
Senior Executive Staff & Officers
  
Discretionary
2
  
Executive Staff or
Region* Executive
  
50% Discretionary
  
30%
  
35%
  
40%
       
50% Company or Region* Results
              
3
  
Executive Staff or
Region* Manager
  
50% Discretionary
  
25%
  
30%
  
35%
       
50% Company or Region* Results
              
4
  
Director or
Division* Director
  
50% Discretionary
  
20%
  
25%
  
30%
       
50% Company or Division* Results
              
5
  
Director or Manager
  
50% Discretionary
  
15%
  
20%
  
25%
       
50% Company Results
              
6
  
Manager or
Professional Staff
  
50% Discretionary
  
10%
  
15%
  
20%
       
50% Company Results
              
7
  
Technical or
Support Staff
  
50% Discretionary
  
5%
  
10%
  
15%
       
50% Company Results
              
8
  
Administrative &
Clerical Staff
  
Discretionary Christmas Bonus
  
1 Week
  
1.5 Weeks
  
2 Weeks

 
TERMINATION, DEATH OR DISABILITY
 
Terminated employees—voluntary or involuntary—will not be eligible for incentive
payments. All participants must be employed at the time of payment in order to
receive payment under the Plan. A disabled or deceased employee will be paid a
prorated incentive based on compensation earned during active employment.
 
TRANSFER/NEW HIRES
 
The Incentive Committee must approve employees newly hired or transferred into
potential incentive-eligible positions. Once approved, the participant will be
paid a prorated incentive based on assigned category and base compensation
earned from start date of work in the position to the end of the fiscal year.
 
Participants transferred out of incentive-eligible positions for performance
reasons will not be eligible for incentive payments—regardless of length of time
in the position. Transfers between incentive-eligible positions will be paid a
prorated amount based on the incentive grouping and the compensation earned
during the period in each of the incentive-eligible positions.
 
TERMS AND CONDITIONS
 
The terms and conditions of this Plan shall not be deemed to constitute a
contract of employment between the Company and the Participant. A Participant
shall have no rights against the Company except as may be specifically provided
for herein. Moreover, nothing in this Plan shall be deemed to give a participant
the right to be retained in the service of the Company.
 
The Plan may be terminated, modified, amended, revised or otherwise altered in
any part or in its entirety at any time at the discretion of the Incentive
Committee. When possible any change in the Plan will be announced to the
participants prior to the period in which the change(s) become effective.
 

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The Pantry, Inc.
 
Fiscal Year 2002
MANAGEMENT & ADMINISTRATIVE INCENTIVE PLAN
 

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ACKNOWLEDGMENT
 
I acknowledge receipt of The Pantry, Inc. Management & Administrative Incentive
Plan for Fiscal 2002.
 
 

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  Participant’s Signature
 
     
  Social Security Number
 

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