EX-10.1






Exhibit 10.1



PERFORMANCE UNIT AWARD AGREEMENT




UNDER

SCS TRANSPORTATION, INC.

2003 OMNIBUS INCENTIVE PLAN




THIS AWARD AGREEMENT is made and entered into as of January      , 2005 (the “Date of Grant”),
by and between SCS Transportation, Inc. (the “Company”), and      (“Employee”).




WITNESSETH:



WHEREAS, the Board of Directors of the Company (the “Board of Directors”) has adopted and the
stockholders of the Company have approved the SCS Transportation, Inc. 2003 Omnibus Incentive Plan
(the “Plan”), pursuant to which performance unit awards may be granted to employees of the Company
and its subsidiaries; and



WHEREAS, the Company desires to grant to Employee a performance unit award under the terms of
the Plan.




NOW, THEREFORE, pursuant to the Plan, the Company and Employee agree as follows:



1. Grant of Award. Pursuant to action of the Committee, the Company grants to Employee the
performance unit award described in this Award Agreement (the “Performance Unit Award”).



2. Award Subject to Plan. This Award is granted under and is expressly subject to all the
terms and provisions of the Plan, which terms are incorporated herein by reference. The committee
referred to in Section 3 of the Plan (“Committee”) has been appointed by the Board of Directors,
and designated by it, as the Committee to make awards.



3. Performance Period. The performance period for the Performance Unit Award is the three
(3) year period commencing January 1, 2005 and ending December 31, 2007 (the “Performance Period”).



4. Performance Unit Award.



(a) General. Employee’s target Performance Unit Award opportunity for the Performance
Period is      percent (     %) of Employee’s average annualized base salary during the three years
of the Performance Period (the “Target Cash Incentive”). For purposes of this Agreement, the
average annualized base salary during the three years of the Performance Period shall be the sum of
the base salary of Employee on the first, second and third anniversaries of the Date of Grant,
divided by three.



(b) Amount of Target Cash Incentive Payable to Employee for the Performance Period.
The amount of the Target Cash Incentive payable to Employee for the Performance Period will be
based upon the Company’s “Total Stockholder Return” (as defined in Section 5 below) as compared to
the Total Stockholder Return of the “Peer Companies” (as defined in Section 6 below) over the
Performance Period, as follows:



	 	 	 	 	 
	If the Company’s Total Stockholder
	 	Then the Percentage of Target
	Return Over The Performance Period
	 	Cash Incentive
	As Compared to Peer Companies
	 	Payable to Employee is
	 
	 	 	 	 
	Ranks 5th or higher
	 	 	200	%
	 
	 	 	 	 
	Ranks 6th
	 	 	180	%
	 
	 	 	 	 
	Ranks 7th
	 	 	160	%
	 
	 	 	 	 
	Ranks 8th
	 	 	140	%
	 
	 	 	 	 
	Ranks 9th
	 	 	120	%
	 
	 	 	 	 
	Ranks 10th
	 	 	100	%
	 
	 	 	 	 
	Ranks 11th
	 	 	81	%
	 
	 	 	 	 
	Ranks 12th
	 	 	63	%
	 
	 	 	 	 
	Ranks 13th
	 	 	44	%
	 
	 	 	 	 
	Ranks 14th
	 	 	25	%
	 
	 	 	 	 
	Ranks < 14th
	 	 	0	%
	 
	 	 	 	 







If during the Performance Period, common stock of one or more of the Peer Companies is no longer
publicly traded, the Committee shall make appropriate adjustment to the above table.
Notwithstanding the foregoing, no Performance Unit Award shall be payable unless the Company has
positive Total Stockholder Return for the Performance Period. In no event will the Committee have
discretion to increase the amounts payable hereunder.



(c) Payment of Performance Unit Award for the Performance Period. Subject to early
termination of this Award Agreement pursuant to Section 7 or Section 8 below, as soon as
practicable following the end of the Performance Period and the determination of the Company’s
Total Stockholder Return as compared to the Total Stockholder Return of the Peer Companies over the
Performance Period, the Company will pay in cash to Employee the Performance Unit Award amount, if
any, determined pursuant to Section 4(b) above.



5. Total Stockholder Return. Total Stockholder Return with respect to the Company or any
Peer Company means the increase (if any) in the fair market value of common stock of the Company or
such Peer Company, assuming reinvestment of dividends, over the Performance Period. The
measurement of change in fair market value over the Performance Period shall be based on the
average closing prices of the common stock for the last 60 trading days preceding January 1, 2005
and the last 60 trading days preceding the end of the Performance Period, assuming reinvestment of
dividends in common stock.



6. Peer Companies. The Peer Companies are the following: Arkansas Best Corp., Central
Freight Lines, Inc., Covenant Transport, Inc., CNF, Inc., Heartland Express, Inc., J. B. Hunt
Transport Svcs., Inc., Knight Transportation, Inc., Marten Transport, Ltd., Old Dominion Freight
Line, Inc., Overnite Transportation Company, P.A.M. Transportation, Inc., Swift Transportation Co.,
Inc., US Freightways Corp., US Xpress Enterprises, Inc., Vitran Corporation, Werner Enterprises,
Inc., and Yellow Roadway Corp.



7. Termination of Employment.



(a) Except as set forth in subsection (c), this Award Agreement will terminate and be of no
further force or effect on the date that Employee is no longer employed by the Company or any of
its subsidiaries, if such termination is a voluntary termination or a termination for Cause (as
defined in the Plan).



(b) In the event of the death, disability, retirement (beginning at age 55 or older) or
involuntary termination of Employee for reasons other than Cause, and if, at the time of such
termination, at least 50% of the Performance Period shall have elapsed, the Performance Unit Award
will be prorated to reflect the number of months of actual service during the Performance Period.
In such event, the Performance Unit Award will be payable at the end of the Performance Period.



(c) Employee will be entitled to receive any Performance Unit Award payable under Section 4 of
this Award Agreement if Employee’s employment terminates after the Performance Period but before
Employee’s receipt of such Performance Unit Award payment for the Performance Period, except in the
event of a termination for Cause.



8. Change of Control. In the event the Company is to be wholly or partly liquidated, or
agrees to participate in a merger, consolidation or reorganization in which it, or any entity
controlled by it, is not the surviving entity, then upon the effectiveness of such liquidation,
merger, consolidation or reorganization, this Award Agreement will terminate and be of no further
force and effect and the Employee shall receive the Target Cash Incentive adjusted to reflect the
actual number of months of service from the Date of Grant to the date of such liquidation, merger,
consolidation or reorganization.



9. Forfeiture. If the Company is required to prepare an accounting restatement due to the
material noncompliance of the Company, as a result of misconduct, with any financial reporting
requirement under the securities laws, as such terms are used in Section 304 of the Sarbanes-Oxley
Act of 2002 or as interpreted by the Committee, then the Committee in its sole discretion may
require Employee to reimburse or forfeit to the Company any payment received or to be received
hereunder by Employee during the 12-month period following the first public issuance or filing with
the Securities and Exchange Commission (whichever first occurs) of the financial document embodying
such financial reporting requirement.



10. Tax Withholding. Employee must pay, or make arrangements acceptable to the Company for
the payment of, any and all federal, state, and local tax withholding that in the opinion of the
Company is required by law. Unless Employee satisfies any such tax withholding obligation by
paying the amount in cash or by check, the Company will withhold a portion of the cash incentive
payment equal to the tax withholding obligation.



11. Non-Transferability. Neither this Award nor any rights under this Award Agreement may
be assigned, transferred, or in any manner encumbered except by will or the laws of descent and
distribution, and any attempted assignment, transfer, mortgage, pledge or encumbrance except as
herein authorized, will be void and of no effect.



12. Definitions; Copy of Plan. To the extent not specifically defined in this Award
Agreement, all capitalized terms used in this Award Agreement will have the same meanings ascribed
to them in the Plan. By signing this Award Agreement, Employee acknowledges receipt of a copy of
the Plan.



13. Committee Administration. The Committee shall have the sole responsibility for
construing and interpreting this Agreement, and for resolving all questions arising hereunder. Any
decision or action taken by the Committee arising out of, or in connection with, the construction,
administration, interpretation and effect of this Agreement shall be conclusive and binding upon
all persons.



14. Acknowledgement. Employee acknowledges that the Board of Directors of the Company has
adopted a guideline concerning investment in the stock of the Company using payouts of cash under
this Award Agreement that is applicable if certain ownership thresholds are not met by Employee at
the time of payouts under this Agreement. The guideline may be satisfied in any of the following
ways:




	 	•	 	75% of after-tax proceeds may be applied to purchases of Company stock;






	 	•	 	75% of after-tax proceeds may be applied to option exercise and purchases and
additional income taxes directly associated with such option exercises; and






	 	•	 	75% of pre-tax proceeds may be contributed to the Company’s nonqualified tax
deferred plan with such proceeds applied to Company stock equivalent units.





In all cases, the guidelines provide that the investment be held at least five years.



15. Choice of Law. This Agreement will be governed by the laws of the State of Delaware,
without regard to the principles of conflicts of law which might otherwise apply.



IN WITNESS WHEREOF, the Company and Employee have executed this Award Agreement as of the Date
of Grant.



SCS TRANSPORTATION, INC.



By:



Its: Chief Executive Officer



Employee