Shareholder Value Plan



 Exhibit 10.6 
 *** Certain portions of this Exhibit have been omitted based upon a request for confidential treatment pursuant to 24b-2 of the Securities Exchange Act of 1934, as amended. The omitted portions have been filed separately with the
Securities Exchange Commission. 
 PSS WORLD MEDICAL, INC. 
 2009-2011 SHAREHOLDER VALUE PLAN 
 ARTICLE 1 
 ESTABLISHMENT OF PLAN 
 1.1
Background of Plan. The Shareholder Value Plan is a sub-plan of the PSS World Medical, Inc. 2006 Incentive Plan (the “Plan”), consisting of a program for the grant of performance awards under Article 9 of the Plan. The Shareholder
Value Plan has been established and approved, and will be administered by, the Compensation Committee pursuant to the terms of the Plan. To the extent applicable, it is intended that Awards under the Shareholder Value Plan shall be fully deductible
by the Company without regard to the limitations of Section 162(m) of the Internal Revenue Code. The Effective Date of the Shareholder Value Plan is March 29, 2008. 
 1.2 Purpose. The purpose of the Shareholder Value Plan is to increase participants’ economic interest in the long-term success of the
Company, to encourage participants to continue employment with the Company, and to reward participants for achieving long-term goals. The Shareholder Value Plan is intended to provide an incentive to executives of the Company and/or its Subsidiaries
to accelerate the creation of shareholder value through the achievement of the financial performance goals outlined in the Company’s three-year strategic plan (the “Strategic Plan”). 
 ARTICLE 2 
 ADMINISTRATION

 2.1 Committee. The Shareholder Value Plan shall be administered by the Compensation Committee of the Board of Directors of the
Company. 
 2.2 Authority of Committee. The Committee has the exclusive power, authority and discretion to: (a) designate
participants; (b) reduce, or if permissible under applicable law increase, any SVP Award, regardless of the achievement of designated Performance Goals; (c) establish, adopt or revise any rules and regulations as it may deem
necessary or advisable to administer the Shareholder Value Plan; (d) make all other decisions and determinations that may be required under the Shareholder Value Plan or as the Committee deems necessary or advisable to administer the
Shareholder Value Plan; and (e) amend the Shareholder Value Plan as provided herein. 
 2.3. Decisions Binding. The
Committee’s interpretation of the Shareholder Value Plan and all decisions and determinations by the Committee with respect to the Shareholder Value Plan are final, binding, and conclusive on all parties. 
 ARTICLE 3 
 ELIGIBILITY

 3.1. General. Participation in the Shareholder Value Plan is limited to officers of the Company or any Subsidiary as
shall be selected to participate in the Shareholder Value Plan by the Committee. 
  

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 3.2. Partial Term Participation. When employees are chosen for participation in the Shareholder
Value Plan during the Performance Period or become eligible for participation in a different long-term incentive program, their SVP Award amounts shall be prorated, based on the number of full months they participated in the Shareholder Value Plan
during the applicable Performance Period. 
 3.3. Promotions, Demotions and Certain Position Changes. 
  

	 	(a)	If a participant is promoted during a Performance Period the Committee shall have the discretion to determine whether the original Award Factor in place at the beginning of the
Performance Period shall be used or whether a different Award Factor shall be used. 

  

	 	(b)	If a participant is demoted during a Performance Period or requests a move to a position not eligible for participation in the Shareholder Value Plan, the Committee will determine
whether the participant shall end participation in the Shareholder Value Plan at that time, or shall continue as a participant, perhaps at a reduced level. If participation ends, any SVP Award earned during the time of participation will be prorated
for the Performance Period, and will be paid only if the participant is still an employee at the time SVP Awards are paid. Any such proration shall be based on the number of full months the participant participated in the Shareholder Value Plan
during the applicable Performance Period. 

 ARTICLE 4 
 DEFINITIONS 
 4.1 Definitions. Capitalized terms used herein and not
otherwise defined shall have the meanings assigned such terms in the Plan. In addition, the following terms shall have the following meanings for purposes of the Shareholder Value Plan: 
  

	 	(a)	“Adjusted EPS” means diluted earnings per common share as determined under Generally Accepted Accounting Principles (GAAP) as reported in the Company’s financial
statements, except that it will exclude the negative effect of all nonrecurring charges, extraordinary items, discontinued operations, and cumulative effects of accounting changes, unless the Committee in its sole discretion determines otherwise.


  

	 	(b)	“Beginning Base Salary” means a participant’s annual base salary, excluding bonus and other compensation, as in effect at the beginning of a Performance Period (or
such later time as the person first becomes a participant in the Shareholder Value Plan). 

  

	 	(c)	“Cumulative Adjusted EPS” means cumulative Adjusted EPS over a Performance Period. 

  

	 	(d)	“Payout Matrix” means a matrix adopted by the Committee with respect to a Performance Period equating a cash SVP Award to the attainment of Performance Goals. The Payout
Matrix for the current 36-month Performance Period is set forth on Exhibit B hereto. 

  

	 	(e)	“Performance Goals” are goals established by the Committee with respect to a Performance Period that determine whether and to what extent an SVP Award is earned for such
Performance Period. Performance Goals shall be determined solely on the basis of, and in accordance with, one of the Qualified Business Criteria specified in Section 11.2 of the Plan. The Performance Goals for the current 36-month Performance
Period are based on Cumulative Adjusted EPS as set forth on Exhibit A hereto. 

  

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	 	(f)	“Performance Period” means a period established by the Committee from time to time over which performance will be measured to determine the payout of SVP Awards. The
current Performance Period under the Shareholder Value Plan is the 36-month period beginning on March 29, 2008 and ending on April 1, 2011. The Committee may determine and declare subsequent Performance Periods from time to time.
Performance Periods may, but need not, overlap. 

  

	 	(g)	“Prorated Cumulative Adjusted EPS” has the meaning set forth in Section 5.8. 

  

	 	(g)	“SVP Award” means a cash award payable to a participant in the Shareholder Value Plan based on the achievement of threshold performance or better during a Performance
Period. 

  

	 	(h)	“Target SVP Award” means an SVP Award established by the Committee from time to time with respect to a Performance Period based on “target” performance.


 ARTICLE 5 
 OPERATION OF THE PLAN 
 5.1 Target SVP Awards. Subject to Section 3.3, the Target SVP Award for a participant
for the current 36-month Performance Period is three times the participant’s Beginning Base Salary multiplied by an Award Factor derived from the participant’s officer level at the beginning of the Performance Period (or such later time as
the person first becomes a participant in the Shareholder Value Plan), as set forth on Exhibit B hereto. The Committee may establish different Target SVP Awards for future Performance Periods. 
 5.2 Performance Goals and Payout Matrix. The Performance Goals and Payout Matrix applicable to the current 36-month Performance Period are based
on Cumulative Adjusted EPS, as set forth on Exhibit A and Exhibit B hereto. The Committee may establish different Performance Goals and Payout Matrices for future Performance Periods. The Committee shall establish Performance Goals
prior to the beginning of a Performance Period for which such Performance Goals relate. 
 5.3 Determination of Performance Results.
As soon as reasonably possible after the close of the fiscal quarter or year marking the end of a Performance Period, the Committee will determine and certify in writing the degree to which the Performance Goals have been attained and may, in its
discretion, exclude the effect of all nonrecurring charges, extraordinary items, discontinued operations and cumulative effects of accounting changes. The Committee shall have the sole authority to determine to what the extent the Performance Goals
have been attained. Any payment of an SVP Award shall be conditioned on the written certification of the Committee in each case that the Performance Goals and any other material conditions were satisfied. The Committee has the right for any reason
to reduce or increase, if permitted by applicable law, the amount of an SVP Award, notwithstanding the achievement of a specified Performance Goal. 
 5.4 Payout Form and Timing. SVP Awards will be paid in cash as soon as possible after the certification by the Committee of the amount of the SVP Awards based on the achievement of Performance Goals over the Performance Period.
Notwithstanding the achievement of a Performance Goal, the Committee may, in its discretion, reduce, or increase if permitted by applicable law, the amount of an SVP Award otherwise payable to one or more participants under the Shareholder Value
Plan. 
 5.5 SVP Award Deferrals. On or before the beginning of the final year of a Performance Period, a participant who is eligible
to participate in a deferred compensation plan of the Company may elect to defer receipt of his or her SVP Award, if any, with respect to such Performance Period under such deferred compensation plan. Any amount so deferred will be governed by the
terms of the applicable deferred compensation plan. 
  

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 5.6. Performance Period Limit. As provided in Section 5.4 of the Plan, in no event shall any
participant receive an SVP Award for a Performance Period which exceeds $4,000,000. 
 5.7 Termination of Employment. If a participant
ceases being an employee of the Company or any Subsidiary for any reason other than death, Disability, or Retirement, then his or her participation in the Shareholder Value Plan shall automatically be terminated and the participant will forfeit any
right to an SVP Award for the Performance Period in which the termination of employment occurs; provided, however that the Committee may make exceptions on a case-by-case basis in its sole discretion in the case of a participant’s termination
without Cause or resignation for Good Reason (as the terms “Cause” and “Good Reason” are defined in the participant’s Employment Agreement with the Company, if any). For terminations after a Performance Period, but before
payout from the Shareholder Value Plan, payout will be made as though the termination had not occurred. A participant’s transfer of employment from the Company to one of its Subsidiaries, from a Subsidiary to the Company, or from one Subsidiary
to another Subsidiary shall not constitute a termination of employment for purposes of the Shareholder Value Plan. In the event of a participant’s termination of employment by reason of death, Disability or Retirement (or if so provided by the
Committee in the case of a participant’s termination without Cause or resignation for Good Reason), a prorata SVP Award shall be made, based on the number of days in the Performance Period preceding the date of termination. SVP Awards in these
situations may be calculated and paid after the end of the Performance Period, the same as for other participants. Amounts paid on behalf of a deceased participant will be paid to the participant’s Beneficiary. 
 5.8 Change in Control. Notwithstanding any provision to the contrary herein or in the Plan, upon the occurrence of a Change in Control, all
Performance Periods shall end as of the last day of the fiscal quarter ended prior to or on the date of the Change in Control. All SVP Awards shall be deemed earned and will be paid out in an amount equal to the product of (i) either
(A) the Target SVP Award or (B) if the sum of the Adjusted EPS for each completed fiscal year in the Performance Period prior to the Change in Control is equal to or greater than 105.83% of the Prorated Cumulative Adjusted EPS (as defined
below) for such fiscal years, the Maximum SVP Award, multiplied by (ii) a fraction, the numerator of which is the number of full months that have elapsed from the beginning of the Performance Period to the date of the Change in Control
(including the month the Change in Control occurs), and the denominator of which is number of full months in the original Performance Period. Payment of SVP Awards shall be made within 120 days after the Change in Control transaction has been
completed. “Prorated Cumulative Adjusted EPS” for the current Performance Period means (x) [***] if a Change of Control takes place after the end of fiscal 2009 but prior to the end of fiscal 2010, and (y) [***] if a Change in
Control takes place after the end of fiscal 2010 but prior to the end of fiscal 2011. 
 ARTICLE 6 
 AMENDMENT, MODIFICATION AND TERMINATION 
 6.1. Amendment, Modification and Termination. The Committee may, at any time and from time to time, amend, modify or terminate the Shareholder Value Plan. The Committee may condition any amendment or modification on the approval of
shareholders of the Company if such approval is necessary or deemed advisable with respect to tax, securities or other applicable laws, policies or regulations. 
 6.2 Termination After or During the Performance Period. Termination of the Shareholder Value Plan after a Performance Period but before SVP Awards are made will not reduce 

  

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participants’ rights to receive SVP Awards for the Performance Period. Termination or amendment of the Shareholder Value Plan during a Performance
Period may be retroactive to the beginning of the Performance Period, at the discretion of the Committee. If any amendment or termination occurs during a Performance Period, the Committee shall determine when and to what extent SVP Awards shall be
paid for the portion of the Performance Period preceding the amendment or termination. 
 ARTICLE 7 
 CHANGES IN CAPITAL STRUCTURE 
 7.1.
Adjustments. If, during a Performance Period, the Company’s capital structure should be materially altered by virtue of a reorganization, recapitalization, stock split, stock dividend, combination of shares, rights offer, liquidation,
dissolution, merger, consolidation, spin-off or sale of assets, or any other change in or affecting the corporate structure or capitalization of the Company, which does not constitute a Change in Control, the Committee may redefine the Payout Matrix
or adjust the Performance Period, to reflect the impact of such change. The nature of any such adjustment shall be to protect the purpose and integrity of the Shareholder Value Plan, reducing the potential for windfall gains or losses for
participants. 
 ARTICLE 8 
 GENERAL PROVISIONS 
 8.1. Nonassignability. participant rights under the Shareholder Value Plan may not be
transferred, assigned, pledged or encumbered, without the express prior consent of the Committee. 
 8.2. No Right to Participate. No
officer or employee shall have any right to be selected to participate in the Shareholder Value Plan. 
 8.3. No Right to Employment.
Nothing in the Shareholder Value Plan shall interfere with or limit in any way the right of the Company or any Subsidiary to terminate any participant’s employment at any time, nor confer upon any participant any right to continue in the employ
of the Company or any Subsidiary or at any particular rate of compensation. 
 8.4. Withholding. In accordance with Section 17.3
of the Plan, the Company or any Subsidiary shall have the authority and the right to deduct or withhold, or require a participant to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes (including the
participant’s FICA obligation) required by law to be withheld with respect to any taxable event arising as a result of the Shareholder Value Plan. 
 8.5. Unfunded Status of Awards. The Shareholder Value Plan is intended to be an “unfunded” Plan for incentive and deferred compensation. With respect to any payments not yet made to a participant
pursuant to the Shareholder Value Plan, nothing contained in the Shareholder Value Plan shall give the participant any rights that are greater than those of a general creditor of the Company or any Subsidiary. 
 8.6. Expenses. The expenses of administering the Shareholder Value Plan shall be borne by the Company and its Subsidiaries. 
  

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 8.7. Titles and Headings. The titles and headings of the Sections in the Shareholder Value Plan
are for convenience of reference only, and in the event of any conflict, the text of the Shareholder Value Plan, rather than such titles or headings, shall control. 
 8.8. Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the
plural. 
 8.9. Governing Law. To the extent not governed by federal law, the Shareholder Value Plan, and each participant’s
rights thereunder, shall be construed in accordance with and governed by the laws of the State of Florida. 
 8.10 Severability.
If any provision of this Shareholder Value Plan is held to be illegal, invalid, or unenforceable under present or future laws effective during the term hereof, the remaining provisions hereof shall remain in full force and effect and shall not
be affected by the illegal, invalid or unenforceable provision. Furthermore, in lieu of such illegal or unenforceable provision, there shall be added automatically as a part of this Shareholder Value Plan a provision as similar in terms to such
illegal, invalid, or unenforceable provision as may be possible and still be legal, valid and enforceable. 
 8.11 Plan Controls. This
Shareholder Value Plan is adopted pursuant to and shall be governed by and construed in accordance with the Plan. In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this Shareholder Value Plan,
the provisions of the Plan shall be controlling and determinative. 
 The foregoing is hereby acknowledged as being the PSS World Medical,
Inc. Shareholder Value Plan as adopted by the Committee on July 16, 2008. 
  

			
	PSS WORLD MEDICAL, INC.
		
	By:	 	 /S/ David A. Smith

		 	David A. Smith
		 	Chairman and Chief Executive Officer


  

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 EXHIBIT A 
 TARGET AWARDS AND PERFORMANCE GOALS 
 For the 36-month Performance Period from March 29, 2008 to March 28, 2011 
 Subject to
Section 3.3 of the Shareholder Value Plan, the Target SVP Award for the Performance Period 3/29/08 – 3/28/11 is an amount calculated as three times the participant’s Beginning Base Salary multiplied by an Award factor (“Award
Factor”) derived from the participant’s officer level at the beginning of the Performance Period (or such later time as the person first becomes a participant in the Shareholder Value Plan). The Award Factors to be used under the
Shareholder Value Plan with respect to the current Performance Period are set forth on Exhibit B.  
 Participants have the
opportunity to earn from 0% to 150% of the Target SVP Award, based on the achievement of Performance Goals. The Performance Goals and Payout Matrix applicable to the current 36-month Performance Period are based on Cumulative Adjusted EPS over the
Performance Period, as set forth below: 
  

					
	 	  	Cumulative Adjusted EPS*	 	% of Target SVP Award Earned
		  	<$[***]  	 	    0%
	 Threshold Performance
	  	$[***]	 	  50%
	 Target Performance
	  	$[***]	 	100%
	 Maximum Performance
	  	$[***]	 	150%
		  	>$[***]  	 	150%

 Interpolation between points will be made on a straight line basis. Officers whose employment with
the Company begins during the last three months of the current Performance Period shall not be eligible to participate in the Shareholder Value Plan for the current Performance Period. 
  

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 EXHIBIT B 
 PAYOUT MATRIX 
 For the 36-month Performance Period from
March 29, 2008 to March 28, 2011 
  

			
	 MARST Score
	 	 Award Factor

	 35
	 	55%
	 34
	 	55%
	 33
	 	55%
	 32
	 	55%
	 31
	 	50%
	 30
	 	50%
	 29
	 	40%
	 28
	 	40%
	 27
	 	40%
	 26
	 	40%
	 25
	 	40%
	 24
	 	39%
	 23
	 	38%
	 22
	 	36%
	 21
	 	34%
	 20
	 	33%
	 19
	 	32%
	 18
	 	31%
	 17
	 	30%
	 16
	 	29%
	 15
	 	28%
	 14
	 	23%
	 13
	 	22%
	 12
	 	20%
	 11
	 	15%
	 10
	 	15%
	 9
	 	15%
	 8
	 	15%
	 7
	 	15%
	 6
	 	15%
	 5
	 	15%

  

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