Document:

exv10w1

Exhibit 10.1

UNITED BANCORPORATION OF ALABAMA, INC.

CPP RESTRICTION AGREEMENT

     This CPP RESTRICTION AGREEMENT (this “Agreement”) is made and entered into as of
                    , by and between UNITED BANCORPORATION OF ALABAMA, INC., a Delaware corporation
having its principal place of business in Atmore, Alabama, UNITED BANK, an Alabama banking
corporation (collectively, the “Company”), and                      (the “Executive”).

RECITALS

     WHEREAS, Executive is currently employed as                     of the Company;

     WHEREAS, on December 23, 2008, the Company issued and sold to the U.S. Treasury Department
(“Treasury”) under the Capital Purchase Program (the “CPP”) established under the Emergency
Economic Stabilization Act of 2008, as amended by the American Recovery and Reinvestment Act of
2009 and subsequent Treasury guidance (the “TARP Interim Final Rules”), 10,300 shares of the
Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A, and a Warrant to purchase up
to 104,040 shares of the Company’s common stock, for an aggregate purchase price of $10,300,000 in
cash;

     WHEREAS, to participate in the CPP, the Company must adopt the Treasury standards for
executive compensation and corporate governance (the “Compensation Restrictions,” which shall
include but not be limited to the matters discussed in Attachment A hereto) for the period during
which Treasury holds equity or debt securities of the Company issued under the CPP (the period
during which such standards are applicable being referred to herein as the “CPP Compliance
Period”); and

     WHEREAS, under the CPP, Treasury’s standards apply to the senior executive officers (the
“SEOs”) of the Company and other “most highly compensated employees” (as such terms are defined
under the TARP Interim Final Rules).

     NOW, THEREFORE, as required to participate in the CPP, and in consideration of the mutual
promises contained herein, and each intending to be legally bound, Executive and the Company agree
as follows:

     1. Background. The matters set forth in the “Recitals” are incorporated by reference
herein.

     2. Suspension of Noncompliant Compensation; Clawback. Executive agrees that during
the CPP Compliance Period, the Company’s obligation to make any payment not permitted under the
Compensation Restrictions shall be suspended and held in abeyance. Executive also

 

 

agrees to repayment of any compensation described in the clawback provision of the
Compensation Restrictions.

     3. Suspension of Noncompete. For so long as Executive is subject to the provisions of
Section 2 above, any “noncompete agreement” between the Company and the Executive shall be
suspended and held in abeyance. For purposes of this Agreement, “noncompete agreement” means any
agreement that prohibits the Executive from entering into competition with the Company after the
Executive’s employment terminates.

     4. Termination of this Agreement. During the CPP Compliance Period, the terms and
conditions of this Agreement shall supersede the terms and conditions of Executive’s employment or
other agreement, to the extent inconsistent therewith. This Agreement shall terminate automatically
and become null and void upon the expiration of the CPP Compliance Period and any suspended
employment or other agreement provision will reinstate, nunc pro tunc. The Company will give
prompt notice to the Executive of the expiration of the CPP Compliance Period.

     5. Governing Law. This Agreement shall be governed by and construed in accordance
with the internal law of the State of Alabama.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.

	 	 	 	 	 	 	 	 	 

	 	 	UNITED BANCORPORATION OF ALABAMA, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 	 	UNITED BANK	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 

2

 

ATTACHMENT A

     1. Golden Parachute Payments. For any employee classified by the Company as (i) an
SEO or (ii) one of the next 5 “most highly compensated employees,” as defined in the TARP Interim
Final Rules, all “Golden Parachute” payments are prohibited. “Golden Parachute” payments are
defined as payments resulting from such employee’s departure from the Company for any reason
(except for services performed or benefits already accrued), and payments made on account of the
Company’s “change in control” (as defined in 26 CFR 1.280G-1, Q&A-27 through Q&A-29 or as a change
in control event as defined in 26 CFR 1.409A-3(i)(5)(i)). Such payments shall be determined in a
manner that is consistent with the TARP Interim Final Rules.

     2. Gross-Up Payments. For any employee classified by the Company as (i) an SEO or (ii)
one of the next 20 “most highly compensated employees,” all “Gross-up” payments, or legally
enforceable rights to such payments, are prohibited. “Gross-Up” payments are defined as any
reimbursement by the Company of taxes owed to such employee with respect to any compensation,
provided that such payment does not include a payment under an agreement or other arrangement that
provides payments intended to compensate such employee for some or all of the excess of the taxes
actually imposed by a foreign jurisdiction.

     3. Incentive Compensation Recovery; Clawback Provision. For any employee classified by
the Company as (i) an SEO or (ii) one of the next 20 “most highly compensated employees,” any bonus
and incentive compensation paid to such employee shall be subject to a provision for recovery or
“clawback” if the payment was based on materially inaccurate financial statements or any other
materially inaccurate performance metric criteria. This repayment shall not be limited to a
specific recovery period, material inaccuracies in financial reporting statements, or inaccuracies
that result in account restatements. The recovery encompasses all incentive compensation paid to
such employee as a result of any determination of achievement of a performance metric that is later
determined to have been based on material inaccuracies related to financial reporting. For
purposes of this paragraph and without limiting the foregoing, financial statements or performance
metric criteria are treated as being materially inaccurate with respect to such employee if such
employee either knowingly engages in providing inaccurate information or knowingly fails to timely
correct inaccurate information relating to those financial statements or performance metrics.

     4. Bonus Payments to Most Highly Compensated Employee. For any employee classified by
the Company as the “most highly compensated employee” of the Company, all bonus payments are
prohibited, except for (i) bonus payments required to be paid under a valid employment contract if
such employee had a legally binding right under the contract to a bonus payment as of February 11,
2009 and (ii) restricted stock, which vests no earlier than in 25% vesting tranches conditioned on
25% of total senior preferred stock being repurchased from Treasury, and has a value of no more
than one-third of such employee’s total “annual compensation” (as defined under the TARP Interim
Final Rules) for that fiscal year (as valued using grant-date fair market value).

3exv10w1

Exhibit 10.1

MEMORANDUM OF UNDERSTANDING ON THE

ABF FREIGHT SYSTEM, INC.

WAGE REDUCTION — JOB SECURITY PLAN

April 14, 2010

ABF Freight System, Inc. (“ABF” or “the Company” or “the Employer”) and the Teamsters National
Freight Industry Negotiating Committee (“TNFINC”) of the International Brotherhood of Teamsters
(the “IBT” or the “Union”) hereby establishes The Wage Reduction — Job Security Plan (hereinafter
the “Plan”) for the benefit of all of ABF’s employees. This Plan has been developed for the express
purpose of allowing the Employer the ability to compete and provide job security for IBT bargaining
unit employees. This Plan is not, and is not intended to be, a plan governed by the Employee
Retirement Income Security Act of 1974, as amended; rather, this Plan is an amendment to the
2008-13 National Master Freight Agreement and its applicable supplemental agreements (collectively
“the NMFA”) per Section 4 below that has been referred to as a Plan by the parties.

     1. Employee Eligibility. During the period in which the Plan is effective (as set forth in
Section 4 below), each IBT bargaining unit employee of the Employer shall participate in the Plan.
For purposes of the Plan, unless expressly stated to the contrary, the term “employee” means an
IBT bargaining unit employee who is on the seniority list and is scheduled to perform work for the
Employer when called, including regular full-time employees, a probationary employee, a regular
employee on lay off status and casuals, and including employees who work on a percentage basis
less than 40 hours per week.

     2. Wage Reduction. (a) Effective on the first payroll period following the date of
ratification of this Plan, the Employer shall reduce by 15% the employees’ gross wages or earnings
paid, including the increases to wages described below in this Section 2 and the reduced wages in
Section 9 below. Such wage reduction and/or reduced earnings shall include overtime and any
premium pay, vacation, sick pay, holiday pay, funeral leave, jury duty, other pay for time not
worked, and any other monies paid after the effective date of this Plan. Wage and mileage rate
increases outlined in Article 33 of the NMFA, including increases effective April 1, 2011, and

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April 1, 2012 shall also be reduced by 15%. On March 31, 2013, the wage reduction contained
in this Plan shall be eliminated, and the wages under the NMFA shall revert to the full rate which
would be in effect under the NMFA on March 31, 2013 without the wage reduction.

(b) In the event the Employer’s publicly disclosed operating ratio is below 97.00 for any calendar
year during the life of this Plan, or, alternatively, in the event the Employer’s EBITDA exceeds
$99.5 million for any calendar year during the life of this Plan, the wage reduction in effect on
April 1 of the following year will be reduced by 5% on that date.

     3. Equal Sacrifice of Non-Bargaining Unit Employees and Their Participation.

(a) All non-bargaining unit employees (including management) will participate equally in the Plan,
and the Employer will share the burden of sacrifices among all IBT bargaining unit and
non-bargaining unit employees (including management), in each case, as described in this Section
3(a). The Employer must reduce the total compensation (defined as wages plus health and welfare
and pension or retirement benefits) of all non-bargaining unit employees (including management) by
the same percentage reduction (an “Equal Reduction”) in total compensation as is being applied to
IBT bargaining unit employees. Non-bargaining unit employees (including management) shall not be
provided any discretionary bonus payments during the life of this Plan (these are distinct from
the pre-existing incentive and performance based pay plans that are expressly allowed to continue,
as noted in the final paragraph of Section 10 below). In determining the Equal Reduction for
non-bargaining unit employees under this Plan, the Employer may include the monetary value of the
following concessions imposed on non-bargaining unit employees starting on January 1, 2008:

	(1)	 	Deferral of 2008 wage increases from January to April and associated reductions in 401(k)
company match and reduction in pension benefit due to lower base pay;
	 
	(2)	 	Changes in health care plan premium, office visit co-pay, medical co-insurance and
prescription drug generic co-pay effective January 1, 2008;
	 
	(3)	 	No wage increases in 2009 and associated reductions in 401(k) company match and pension
benefit due to lower base pay;

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	(4)	 	Changes in health care plan premium, tobacco-use surcharge and deductible
effective January 1, 2009;
	 
	(5)	 	No defined contribution pension plan payments in 2009;
	 
	(6)	 	No wage increases in 2010 and associated reductions in defined benefit pension plan benefits
due to lower base pay;
	 
	(7)	 	No 401 (k) company match in 2010;
	 
	(8)	 	No defined contribution pension plan payments in 2010; and,
	 
	(9)	 	Increase in health care plan premium, tobacco-use surcharge increase and prescription drug
deductible increase effective January 1, 2010.

Effective the first pay period following the date of ratification of this Plan, additional wage and
benefit concessions must be imposed on non-bargaining unit employees to the extent needed to create
an Equal Reduction. The Employer agrees not to increase wages (including bonuses) and benefits of
current non-bargaining unit employees (including management) as an overall percentage beyond the
effective overall total compensation percentage increases to be received by the bargaining unit
employees. This shall not prevent the Employer from providing targeted increases to individual
employees if necessary, in the Employer’s judgment to operate the business, or in the event of
promotions, so long as the overall total compensation increases are within the effective overall
total compensation percentage increases to be received by the bargaining unit employees (consistent
with Equal Reduction). This shall not prevent the Employer from paying variable, performance based
compensation as the Employer has paid in past practice. If it becomes necessary to exceed this
overall percentage increase limit in order to retain employees for the efficient continued
operation of the business, the Employer will request approval from the Subcommittee established in
Section 6 below. The Employer will be permitted to reinstate merit increases in 2011, provided that
Employer’s financial condition can support any increase to base wages.

(b) The Employer and TNFINC agree to use their reasonable best efforts to achieve equal sacrifice
in the total compensation of employees covered by non-Teamster and non-NMFA collective bargaining
agreements.

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     4. Effective Date; Relation to Collective Bargaining Agreement. This Plan will be
effective on the first pay period following the date of its ratification and will be mandatory for
all employees, since job security is the number one asset the Employer, the Union and the employees
all hope to share equally. This Plan will be submitted for secret ballot vote of all bargaining
unit employees, and shall be put into effect if 50% plus one (1) of the bargaining unit employees
voting, vote to adopt the Plan. The Plan will be effective on the first pay period following the
date of ratification and the wages will be reduced beginning on that date (the “Effective Date”).
This Plan terminates on March 31, 2013. This Plan is incorporated by reference into and shall be a
part of the 2008-2013 National Master Freight Agreement and its Supplements (collectively referred
to as “the NMFA”).

     5. Health, Welfare and Pension Contributions. The Employer agrees to continue to pay the full
Health, Welfare and Pension contributions and increases in said contributions set forth in the
NMFA and other Teamster bargaining agreements that accept the terms of this Plan and will continue
for the life of this Plan to be signatory to such bargaining agreements. This Plan shall not be
used by the Employer or the Union in future negotiations as a basis for arguing in favor of
continuing or discontinuing the Employer’s participation in the various Teamsters Pension Trusts
which cover NMFA employees.

     6. Subcommittee to Monitor and Maintain Compliance. For
purposes of monitoring and maintaining compliance with the terms of this Plan, the parties will
establish a four person Subcommittee consisting of the Chairman of TNFINC or his designee, the
Co-Chairman of TNFINC or his designee, the Employer’s President or his designee and another
officer of Employer or his designee. The Subcommittee shall meet quarterly or more frequently, if
necessary, to exchange and discuss pertinent data, including but not limited to relevant payroll
and related information, the reinvestment of capital into the Employer, and any and all subjects
related to the financial operations of the Employer. The Subcommittee’s decision regarding the
interpretation of this Plan shall be final and binding.

     7. Dispute Settlement. Disputes pertaining to the Plan are
subject to the grievance procedure contained in the NMFA. However, any
grievance filed hereunder, by either party, shall be referred initially to the
Subcommittee established in Section 6 for disposition. If the Subcommittee
fails to reach agreement, the matter will be referred to the Chairman of
TNFINC and the President of the Employer in accordance with Article 8,
Section 2(b)(2) of the NMFA. If the Chairman of TNFINC and the

Page 4 of 15

 

President of the Employer are unable to resolve the matter, the 30 additional days provided
in Article 8, Section 2(b)(2) of the NMFA shall be considered as exhausted and the remaining
provisions of Article 8, Section 2 shall govern.

     8. Participation. An employee begins or continues participation in the Plan on the date of
Plan implementation or the first day of the pay period following his/her first day of casual,
regular and/or probationary employment.

     9. New Hire.

A. Non-CDL Qualified Employees

Non-CDL qualified employees (excluding mechanics) hired after, or already in progression, on the
effective date of the Plan begin participation in the Plan on their first day of employment at the
following wage progression:

	 	 	 
	 	 	Maximum Wage Reduction
	Time of Service	 	from New Hire Rate
	Above	 	After Reduction in Section 2
	Effective First Day of Employment

	 	Receive 70% of NMFA Wages
	 
	Effective First Day plus One (1) Year

	 	Receive 75% of NMFA Wages
	 
	Effective First Day plus Two (2) Years

	 	Receive 80% of NMFA Wages
	 
	Effective First Day plus Three (3) Years

	 	Receive 100% of NMFA Wages

“NMFA Wages” means the NMFA rate for the applicable job classification after the agreed upon
wage reduction.

B. CDL Qualified or Mechanics

CDL qualified employees and mechanics hired after, or already in progression, on the
effective date of the Plan begin participation in the Plan

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on their first day of employment at the following wage progression:

	 	 	 
	 	 	Maximum Wage Reduction
	Time of Service	 	from New Hire Rate
	Above	 	After Reduction in Section 2
	Effective First Day of Employment

	 	Receive 85% of NMFA Wages 
	 
	Effective First Day plus One (1) Year

	 	Receive 90% of NMFA Wages 
	 
	Effective First Day plus Two (2) Years

	 	Receive 95% of NMFA Wages
	 
	Effective First Day plus Three (3) Years

	 	Receive 100% of NMFA Wages

“NMFA Wages” means the NMFA rate for the applicable job classification after the agreed upon wage
reduction.

     10. Earnings Plus Plan. Effective at the beginning of the next payroll period following
ratification by Employer’s bargaining unit employees and continuing until March 31, 2013, all
regular employees (including bargaining unit, non-bargaining unit, and management employees) will
participate in the Earnings Plus Plan. Under the Earnings Plus Plan, employees paid on a weekly
basis will be paid a percentage of their pay earned during the weeks ending in the quarter
consistent with the table below. Salaried employees will be paid a percentage of their pay earned
for the three months of the quarter. Payments will be made during the month following the end of
the fiscal quarter when Employer’s publicly disclosed operating ratio is below 99.00 for the
quarter.

Earnings Plus Plan

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Payment
	Public OR	 	% of Pay *	 	Example**
	99.00
	 	 	0.00	%	 	$	0	 
	98.00
	 	 	1.00	%	 	$	131	 
	97.00
	 	 	2.00	%	 	$	263	 
	96.00
	 	 	3.00	%	 	$	394	 
	95.00
	 	 	3.00	%	 	$	394	 
	94.00
	 	 	6.00	%	 	$	789	 
	93.00
	 	 	9.00	%	 	$	1,183	 

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	 	 	 	 	 	 	Payment
	Public OR	 	% of Pay *	 	Example**
	92.00
	 	 	12.00	%	 	$	1,578	 
	91.00
	 	 	15.00	%	 	$	1,972	 
	90.00
	 	 	18.00	%	 	$	2,367	 
	89.00
	 	 	21.00	%	 	$	2,761	 
	88.00
	 	 	24.00	%	 	$	3,156	 
	87.00
	 	 	27.00	%	 	$	3,550	 
	86.00
	 	 	30.00	%	 	$	3,944	 
	85.00
	 	 	33.00	%	 	$	4,339	 
	84.00
	 	 	36.00	%	 	$	4,734	 

and so forth for each additional point.

 

			
	*	 	Formula:

	 	 	 
	OR	 	Formula
	96.00 to 98.99

	 	(99.00 — Actual OR) x 1.00 = % of Pay 
	95.00 to 95.99

	 	3.00% of Pay 
	Below 95.00

	 	(96.00 — Actual OR) x 3.00 = % of Pay 

For example, at an OR of 97.3 the % of pay would be 1.7%; at an OR of 94.1 the % of pay
would be 5.7%

 

			
	**	 	Payment example is based on (i) Regular Time of 40 hrs per week at $20.03/hr; plus, (ii)
Over Time of 7 hrs per week at $30.04/hr.

Example calculation:

Payout
at 91.0 O.R.= ((40 x $20.03) + (7 x $30.04)) x 13 wks x 15% = $1,972.

     To save payment processing costs, any quarterly payment amount under the Earnings Plus Plan
of less than $50.00 will be deferred until the total deferred amount is $50.00 or more or until 1
year has elapsed.

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     Should the Earnings Plus Plan be ratified during a fiscal quarter, payments for that quarter
will be pro-rated accordingly based on the number of weeks in the quarter.

     If for any reason wages revert to NMFA rates before March 31, 2013, then this Earnings Plus
Plan shall be immediately terminated, but employees will be fully vested in the prorated share of
the profits for the period of the wage reduction.

     In order to maintain the high performance levels of the past, Employer’s current incentive
plans for non-bargaining unit employees will remain in place and co-exist with the Earnings Plus
Plan.

     11. Employee Option to Purchase Stock. In lieu of the receipt of wages due under the Earnings
Plus Plan in Section 10 above, employees may voluntarily elect to use their wages earned under the
Plan to purchase Arkansas Best Corporation (“ABC”) stock utilizing the existing employee stock
purchase plan. In the event the Earnings Plus Plan triggers payouts, and in the event bargaining
unit recipients elect to take the payout in stock instead of cash, the Company will allow employees
to use either the existing employee stock purchase plan or put the stock into their 401(k) plan
subject to IRS limitations on (a) overall annual contributions that are allowed and (b) IRS
limitations on the amount of ABC stock that can be put into individual 401(k) accounts. If at the
time this occurs there are any legal obstacles to implementing this 401(k) option, the Subcommittee
shall meet to work out an agreeable alternative to effectuate this objective as close as possible.

     12. Resignation, Retirement or Other Termination of Employment. Any employee who resigns,
retires or otherwise incurs a termination of employment, whether voluntary or involuntary, during
the term of the Plan shall receive a pro rata distribution in accordance with Section 10 of this
Plan based upon the date of his/her resignation, retirement or other termination of employment. In
the event of death, any pro rata distribution shall be paid to the employee’s estate.

     13. Extension
of Recall for Laid off Teamsters. The NMFA (Article 5, Section l(b)) is amended to increase the recall rights of bargaining unit employees on
layoff as of the effective date of this Plan or who become laid off during the term of the Plan,
from five (5) years to ten (10) years.

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     14. Access to Employer Financial Records. The Employer shall submit quarterly and annual
financial statements in the format of the appropriate DOT report (formerly the BTS report) to the
Subcommittee established by Section 6, and TNFINC reserves the right on an annual basis to examine
records of the Employer which are reasonably required to monitor Employer compliance with this Plan
or utilize an independent auditor of its choice to do the same. In consideration of the fact
that TNFINC was permitted to review the Employer’s financial records in connection with the
negotiation of this Plan, the periodic quarterly financial review shall commence with the first
full quarter after the effective date of this Plan and the first annual review of financial
statements shall commence with a review of 2010 statements, as the 2009 statements were reviewed by
a financial advisor selected by TNFINC as part of the negotiation of this Plan. Notwithstanding any
request to the contrary, given applicable privacy laws and policies and for the protection of its
bargaining and non-bargaining unit employees alike, the Employer will not share
employee specific compensation information with the Subcommittee, TNFINC, or the Union other than
the compensation information that Employer is required to publicly provide pursuant to
Securities and Exchange Commission regulation. The Union, however, retains the right to
obtain compensation data on classes or groupings of non-bargaining unit employees to ensure
compliance with the “Equal Reduction” requirement in Section 3 of this Plan. In the event an
independent auditing firm is utilized by TNFINC, the Employer shall pay such independent auditor
for such annual audit up to a maximum of ten thousand dollars ($10,000). As a condition of being
provided such statements, books and audit, TNFINC and the Subcommittee (and any accountant or
auditor engaged on its behalf) must agree to maintain the confidentiality of any Employer financial
statements and reports for the protection of the Employer, and to execute a reasonable
confidentiality agreement if requested by the Employer in such form as the Employer may reasonably
require.

There shall be no inter-company charges initiated under the Plan for the purpose of defeating the
Plan. The Employer will not change accounting assumptions or practices, except as required to
conform to governmental regulations, generally accepted accounting principles or for legitimate
business reasons; and in no event will such assumptions or practices be changed to evade or
defeat the purposes of this Plan.

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     15. Work Preservation. The Employer agrees not to establish or
buy any new non-union regular route common carrier entity without the
prior approval of the Union. The Employer agrees that it will not use any of
the savings and other economic benefits derived from this Plan to provide
capital to its parent corporation for the acquisition or expansion of any
operations not covered by the NMFA that will not benefit ABF. The
Employer also agrees that it will not transfer bargaining unit work to any
location outside of the United States. This Section 15 does not apply to the
maintenance of existing operations or any existing contractual commitments.
The Subcommittee created in Section 6 of this Plan will review the
Employer’s compliance with this Section.

     16. Relationship to Banking Facilities. The Employer will not
enter into any modification, expansion or amendment of its current
arrangements with financial institutions or enter into new credit agreements
with other lenders except on ordinary, reasonable and customary terms and
conditions and at reasonable market rates of interest. The Subcommittee
will be given reports of same at its quarterly meetings, and will be provided
with contemporaneous notice of any material increases in the Company’s
credit lines or other borrowing. Any disputes on such changes to credit lines
or other borrowing must be resolved by the Subcommittee within 30 days of
the contemporaneous notice.

     In the event the Employer requires additional funds to satisfy its liquidity needs beyond
those needs which exist on the date of ratification of this Plan, the Employer must obtain such
additional funds by modifying, expanding or amending its current arrangements with financial
institutions or by entering into new credit agreements with other lenders.

     17. Termination/Amendment. The Employer agrees not to
terminate the Plan before the termination date without approval of the
Union. However, if the Plan is terminated with approval of the Union at any
time, wage levels will revert or snap back to the full NMFA on a prospective
basis and all other provisions of this Plan shall be null and void on a
prospective basis, including (without limitation) Section 3. This Plan by its
terms expires no later than March 31, 2013, including all provisions hereof.
If, during the term of this Plan, the Employer increases its fulltime, active
Teamster workforce by 20% or more from the level of fulltime, active
Teamsters employed in the NMFA bargaining unit on the effective date of
this Plan, the Union reserves the right to terminate this Plan with 30 days
written notice; provided, the Union agrees to duly consider the profitability
of the Company, or lack thereof, before terminating the Plan.

Page 10 of 15

 

 

     18. Bankruptcy Protection. The purpose of this Plan is to make a financial accommodation
for the benefit of the Employer, within the meaning of Section 365(e)(2) of the Bankruptcy Code.
Accordingly, if the Employer files a Chapter 7 or 11 bankruptcy petition or is placed in
involuntary bankruptcy proceeding, this Plan is automatically terminated and wages reverted to full
NMFA on a prospective basis, unless the Union agrees in writing to continue the Plan, and all other
provisions of this Plan shall be null and void on a prospective basis, including (without
limitation) Section 3.

     19. Type of Agreement. This Plan shall be applicable to the NMFA and its Supplements, which
have been agreed to by the Employer and TNFINC.

     20. Expedited Election Agreement. The parties to this Plan agree to the attached Appendix I
containing a Letter of Understanding for an Expedited Election Agreement to be used in the event
that any Local Union affiliated with the International Brotherhood of Teamsters obtains signed
authorization cards from a majority of the employees of any non-union carrier, which the Employer,
its parent or holding company or subsidiaries of the Employer buys or maintains consistent with
Section 15 of this Plan.

     21. Current Ownership. If a Change of Control of Employer (as defined below) occurs other than
through a confirmation of a plan of reorganization in a Chapter 11 proceeding, this Plan is
automatically terminated and wages reverted to full NMFA on a prospective basis unless the Union
agrees in writing to continue the Plan, and all other provisions of this Plan shall be null and
void on a prospective basis, including (without limitation) Section 3. For the purposes of this
Section 21, a “Change of Control,” shall be deemed to have taken place if a third person, including
a “group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended,
purchases or otherwise acquires shares of Arkansas Best Corporation (“ABC”) after the date of this
Agreement that, together with stock held by such person or group, constitutes more than 50 percent
of the total voting power of the stock of where the current directors of ABC (or directors that
they nominate or their nominees nominate) no longer continue to hold more than 50% of the voting
power of the board of directors).

     22. Severability. The invalidity or unenforceability of any provision of this Plan shall not
affect the validity or enforceability of any other provisions of this Plan, which shall remain in
full force and effect.

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     23. References.
As used in this Plan, unless the context expressly requires the contrary,
references to “Sections” means the sections and subsections of this Plan; references to a “party”
means the Employer or the Union; references to the plural mean singular, and vice versa, and
references to an “Appendix” means an appendix to this Plan, which shall become an integral part of
this Plan.

In Witness of the foregoing Plan, the parties hereby acknowledge the Plan as a tentative agreement
pending Employer and ABC board approval and two-man/membership ratification:

ABF Freight System, Inc.:

	 	 	 

	By:

	 	/s/ Wesley B. Kemp

	 
	 	 
	Date:

	 	4/16/2010

Teamsters National Freight Industry Negotiating Committee:

	 	 	 

	By:

	 	/s/ Tyson Johnson

	 
	 	 
	Date:

	 	4/16/2010

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APPENDIX I

Letter of Understanding

Between

ABF Freight System, Inc. 

And

Teamsters National Freight Industry Negotiating Committee

EXPEDITED ELECTION AGREEMENT

Whenever any Local Union affiliated with the International Brotherhood of Teamsters
(hereinafter the “Union”) believes it represents a majority of the employees of any
non-union carrier, which ABF Freight System, Inc. (hereinafter “the Employer”), its
parent or holding company or subsidiaries of the Employer buys or maintains, in a
terminal unit based on authorization cards it has obtained which would constitute an
appropriate bargaining unit under normally recognized standards governing bargaining
units under the National Labor Relations Board (“NLRB”), the parties agree that the
following process will be exclusively utilized to resolve the issue of representation.
Any dispute involving this procedure discussed below shall be subject to the grievance
and arbitration procedure of this Agreement:

	(a)	 	Demand for Recognition. An authorized representative of the Union will
make a written “demand for recognition” in the unit described above where it claims
a majority status. Upon such demand, the third party neutral described in paragraph
(b) below shall verify the majority status. In the alternative, the Union may elect
to file a RC petition with the NLRB, in which case the normal rules and procedures
of the NLRB (instead of those set forth in paragraph (b)- (f) below) shall govern
the remaining conduct of the organizing and election process.

	(b)	 	Prompt Election. Employer and Union representatives will immediately
arrange for a neutral third party (FMCS mediator or other, as mutually agreed) to
conduct a secret ballot election within seven (7) working days (excluding
Saturdays, Sundays, and recognized Holidays) of the receipt of the “demand for
recognition.”

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	(c)	 	Secret Ballot Election. The election will normally be arranged to occur at the
Employer’s terminal and will be conducted by the third party utilizing postings, ballots
and election rules similar to those utilized by the NLRB. The parties will mutually agree
on postings, ballots and other forms to be used under this Letter of Understanding.

	(d)	 	Eligible Voters. The parties will apply National Labor Relations Act standards on issues of
voter eligibility.

	(e)	 	Quiet Period/No Campaigning. From the time the Employer receives the demand for recognition
until the election is held, no Employer or Union representative will campaign in any manner
(letters, calls, meetings, home visits, postings, etc.) to attempt to influence the secret
ballot votes of employees voting in the election. Communications during this quiet period
shall include only the following:

	 	(i)	 	mutually agreed postings setting forth the details of the
election; and
	 
	 	(ii)	 	each employee eligible to vote will be given a copy of this
Letter of Agreement.

	(f)	 	Honoring Results. Following the election, the neutral third party will provide a written
“certification of results” which will be final and binding on the parties. Should the Union
prevail (receive a majority of the ballots cast by eligible voters), the Employer and the
Union will commence good faith bargaining on the terms of a collective bargaining agreement.
If the Union fails to receive a majority of the votes, a one year “election bar” will apply
before another election can be conducted in that group of employees.

	(g)	 	Exclusive Process/No Strikes. The Union agrees that this Letter constitutes the exclusive
process that will apply for claimed representation of any group of employees at terminal
locations and that no recognitional strikes, picketing or job actions of any kind will be
authorized or utilized against the Employer or its parent or holding company or any subsidiary
thereof to attempt to force recognition over any such issue. The exclusive procedure set forth
in this letter shall apply and supersede any right to engage in any alternative

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	 	 	conduct to gain representation of employees that may be permitted under the labor agreement or
at law.

     Wherefore, the parties have set their hand to this Agreement this 16th day of April 2010.

	 	 	 

	/s/
Tyson Johnson
	 	/s/ Wesley B. Kemp
	Representative for

	 	Representative for
	TNFINC

	 	ABF Freight System, Inc.

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