Document:

Exhibit 10.35

    Exhibit
      10.35

    

    

    

    

    

    

    

    

    

    June
      1, 2003

    

    

    

    ADVANCE
      AUTO PARTS, INC.

    

    DEFERRED
      COMPENSATION PLAN

    

    PLAN
      DOCUMENT 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              TABLE
                OF CONTENTS 

            
	 	 	 	 
	Article I 	PURPOSE
              OF PLAN 	
              1 

            
	 	 	 	 
	Article II 	DEFINITIONS 	
              1 

            
	 	 	 	 
	 	Section 2.01 	Administrative Committee 	
              1 

            
	 	Section 2.02 	Base Salary 	
              1 

            
	 	Section 2.03 	Base Salary Deferral 	
              1 

            
	 	Section 2.04 	Beneficiary 	
              1 

            
	 	Section 2.05 	Board 	
              2 

            
	 	Section 2.06 	Bonus 	
              2 

            
	 	Section 2.07 	Bonus Deferral 	
              2 

            
	 	Section 2.08 	Change of Control 	
              2 

            
	 	Section 2.09 	Code 	
              3 

            
	 	Section 2.10 	Company  	
              3 

            
	 	Section 2.11 	Deferral Account 	
              3 

            
	 	Section 2.12 	Deferral Period 	
              3 

            
	 	Section 2.13 	Deferral Amount 	
              4 

            
	 	Section 2.14 	Designee 	
              4 

            
	 	Section 2.15 	Disability 	
              4 

            
	 	Section 2.16 	Eligible Compensation 	
              4 

            
	 	Section 2.17 	ERISA 	
              4 

            
	 	Section 2.18 	Form of Payment 	
              4 

            
	 	Section 2.19 	Hardship Withdrawal 	
              4 

            
	 	Section 2.20 	Hypothetical Investment
              Benchmark 	
              4 

            
	 	Section 2.21 	Matching Contribution 	
              4 

            
	 	Section 2.22 	Participant 	
              5 

            
	 	Section 2.23 	Participation Agreement 	
              5 

            
	 	Section 2.24 	Plan Year  	
              5 

            
	 	Section 2.25 	Retirement 	
              5 

            
	 	Section 2.26 	Retirement Plan Committee 	
              5 

            
	 	Section 2.27 	Team Member 	
              5 

            
	 	Section 2.28 	Termination of Employment 	
              5 

            
	 	Section 2.29 	Unforeseeable Emergency 	
              5 

            
	 	Section 2.30 	Valuation Date 	
              6 

            
	 	 	 	 
	Article III. 	ADMINISTRATION 	
              6 

            
	 	 	 	 
	 	Section 3.01 	Retirement Plan Committee and Administrative
              Committee Duties 	
              6 

            
	 	Section 3.02 	Claim Procedure 	
              7 

            
	 	 	 	 
	Article IV. 	PARTICIPATION 	
              8 

            
	 	 	 	 
	 	Section 4.01 	Participation 	
              8 

            
	 	Section 4.02 	Contents of Participation
              Agreement 	
              8 

            
	 	Section 4.03 	Modification or Revocation of Election
              by
              Participant 	
              9 

            
	 	 	 	 
	Article V. 	DEFERRED
              COMPENSATION 	
              9 

            
	 	 	 	 
	 	Section 5.01 	Elective Deferred
              Compensation 	
              9 

            
	 	Section 5.02 	Vesting of Deferral 	
              9 

            
	 	 	 	 
	Article VI. 	MAINTENANCE AND INVESTMENT
              OF
              ACCOUNTS 	
              10 

            
	 	 	 	 
	 	Section 6.01 	Maintenance of Accounts 	
              10 

            
	 	Section 6.02 	Hypothetical Investment
              Benchmarks 	
              10 

            
	 	Section 6.03 	Statement of Accounts 	
              10 

            

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    
      	Article VII. 	BENEFITS 	
              11 

            
	 	 	 	 
	 	Section 7.01 	Time and Form of Payment 	
              11 

            
	 	Section 7.02 	Company Contribution 	
              11 

            
	 	Section 7.03 	Retirement 	
              11 

            
	 	Section 7.04 	In-Service Distributions 	
              12 

            
	 	Section 7.05 	Other Than Retirement 	
              12 

            
	 	Section 7.06 	Hardship Withdrawals 	
              12 

            
	 	Section 7.07 	Voluntary Early Withdrawals 	
              12 

            
	 	Section 7.08 	Change of Control 	
              13 

            
	 	Section 7.09 	Payments in Connection with Change of
              Control 	
              13 

            
	 	Section 7.10 	Withholding of Taxes 	
              13 

            
	 	 	 	 
	Article VIII. 	BENEFICIARY
              DESIGNATION 	
              14 

            
	 	 	 	 
	 	Section 8.01 	Beneficiary Designation 	
              14 

            
	 	Section 8.02 	No Beneficiary Designation 	
              14 

            
	 	 	 	 
	Article IX. 	AMENDMENT AND TERMINATION
              OF
              PLAN 	
              14 

            
	 	 	 	 
	 	Section 9.01 	Amendment 	
              14 

            
	 	Section 9.02 	Company’s Right to Terminate 	
              14 

            
	 	 	 	 
	Article X. 	MISCELLANEOUS 	
              15 

            
	 	 	 	 
	 	Section 10.01 	Unfunded Plan 	
              15 

            
	 	Section 10.02 	Nonassignability 	
              15 

            
	 	Section 10.03 	Validity and Severability 	
              15 

            
	 	Section 10.04 	Governing Law 	
              15 

            
	 	Section 10.05 	Employment Status 	
              16 

            
	 	Section 10.06 	Underlying Incentive Plans and
              Programs 	
              16 

            
	 	Section 10.07 	Severance 	
              16 

            
	 	 	 	 
	 	 	 	 
	Appendices 	 	 	 
	 	DEFERRED COMPENSATION PLAN
              INVESTMENT FUNDS 	
              17 

            
	 	MERGER WITH DISCOUNT
              AUTO PARTS PLAN 	
              18 

            
	 	 	 	 
	 	 	 	 

    

     

    
       

    

     

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    ARTICLE
      I

    PURPOSE
      AND EFFECTIVE DATE

    

    The
      purpose of the Advance Auto Parts, Inc. Deferred Compensation Plan (“Plan”) is
      to aid Advance Auto Parts, Inc. and its subsidiaries in retaining and attracting
      executive Team Members by providing them with tax deferred savings
      opportunities. The Plan provides a select group of management and highly
      compensated Team Members, within the meaning of Sections 201(2), 301(a)(3)
      and
      401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended
      (ERISA), of Advance Auto Parts, Inc. with the opportunity to elect to defer
      receipt of specified portions of compensation, and to have these deferred
      amounts treated as if invested in specified Hypothetical Investment Benchmarks.
      The Plan shall be effective for deferral elections made hereunder on or after
      June 1, 2003.

    

    

    ARTICLE
      II

    DEFINITIONS

    

    For
      the
      purposes of this Plan, the following words and phrases shall have the meanings
      indicated, unless the context clearly indicates otherwise:

    

    Section
      2.01

    

    Administrative
      Committee.“Administrative
      Committee” means the committee appointed by the Retirement Plan Committee of the
      Board.

    

    Section
      2.02

    

    Base
      Salary.“Base
      Salary” means the base rate of cash compensation paid by the Company to or for
      the benefit of a Participant for services rendered or labor performed while
      a
      Participant, including base pay a Participant could have received in cash in
      lieu of (A) deferrals pursuant to Section 4.02 and (B) contributions made on
      his
      behalf to any qualified plan maintained by the Company or to any cafeteria
      plan
      under Section 125 of the Internal Revenue Code maintained by the
      Company.

    

    Section
      2.03

    

    Base
      Salary Deferral.“Base
      Salary Deferral” means the amount of a Participant’s Base Salary which the
      Participant elects to have withheld on a pre-tax basis from his Base Salary
      and
      credited to his Deferral Account pursuant to Section 4.02.

    

    Section
      2.04

    

    Beneficiary.“Beneficiary”
      means the person, persons or entity designated by the Participant to receive
      any
      benefits payable under the Plan pursuant to Article VIII. 

    

     

    
      
        
        

      

      
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    Section
      2.05

    

    Board.“Board”
      means the Board of Directors of Advance Auto Parts, Inc.

    

    Section
      2.06

    

    Bonus.“Bonus”
      means the amount awarded to a Participant for a Plan Year under any approved
      incentive plan maintained by the Company.

    

    Section
      2.07

    

    Bonus
      Deferral.“Bonus
      Deferral” means the amount of a Participant’s Bonus, which the Participant
      elects to have withheld on a pre-tax basis from his Bonus and credited to his
      account pursuant to Section 4.02.

    

    Section
      2.08

    

    Change
      of Control.
      For
      purposes of this Plan, a “Change of Control” shall be deemed to have occurred
      if: (i) there is an acquisition, in any one transaction or a series of
      transactions, other than from Advance Auto Parts, Inc., by any individual,
      entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
      Securities Exchange Act of 1934, as amended (the “Exchange Act”)), of beneficial
      ownership (within the meaning of Rule 13(d)(3) promulgated under the Exchange
      Act) of 20% or more of either the then outstanding shares of Common Stock or
      the
      combined voting power of the then outstanding voting securities of Advance
      Auto
      Parts, Inc. entitled to vote generally in the election of directors, but
      excluding, for this purpose, any such acquisition by Advance Auto Parts, Inc.
      or
      any of its subsidiaries, or any team member benefit plan (or related trust)
      of
      Advance Auto Parts, Inc. or its subsidiaries, or any corporation with respect
      to
      which, following such acquisition, more than 50% of the then outstanding shares
      of Common Stock of such corporation and the combined voting power of the then
      outstanding voting securities of such corporation entitled to vote generally
      in
      the election of directors is then beneficially owned, directly or indirectly,
      by
      the individuals and entities who were the beneficial owners, respectively,
      of
      the Common Stock and voting securities of Advance Auto Parts, Inc. immediately
      prior to such acquisition in substantially the same proportion as their
      ownership, immediately prior to such acquisition, of the then outstanding shares
      of Common Stock or the combined voting power of the then outstanding voting
      securities of Advance Auto Parts, Inc. entitled to vote generally in the
      election of directors, as the case may be; or (ii)
      individuals who, as of January 1, 2003, constitute the Board (as of such date,
      the “Incumbent Board”) cease for any reason to constitute at least a majority of
      the Board, provided that any individual becoming a director subsequent to
      January 1, 2003, whose election, or nomination for election by Advance Auto
      Parts, Inc.’s shareholders, was approved by a vote of at least a majority of the
      directors then comprising the Incumbent Board shall be considered as though
      such
      individual were a member of the Incumbent Board, but excluding, for this
      purpose, any such individual whose initial assumption of office is in connection
      with an actual or threatened election contest relating to the

     

    
      
        
        

      

      
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    election
      of the directors of Advance Auto Parts, Inc. (as such terms are used in Rule
      14(a)(11) or Regulation 14A promulgated under the Exchange Act); or (iii)
      there occurs either (A) the consummation of a reorganization, merger or
      consolidation, in each case, with respect to which the individuals and entities
      who were the respective beneficial owners of the Common Stock and voting
      securities of Advance Auto Parts, Inc. immediately prior to such reorganization,
      merger or consolidation do not, following such reorganization, merger or
      consolidation, beneficially own, directly or indirectly, more than 50% of,
      respectively, the then outstanding shares of Common Stock and the combined
      voting power of the then outstanding voting securities entitled to vote
      generally in the election of directors, as the case may be, of the corporation
      resulting from such reorganization, merger or consolidation, or (B) an approval
      by the shareholders of Advance Auto Parts, Inc. of a complete liquidation of
      dissolution of Advance Auto Parts, Inc. or of the sale or other disposition
      of
      all of the assets of Advance Auto Parts, Inc. or

    (iv)
      there occurs a Change of Control determined to be “hostile” which is defined as
      a Change of Control of the Company, which is not recommended for approval to
      the
      shareholders by the Board. In this event, the Company shall immediately pay
      to
      each Participant in a lump sum in cash the balance in his/her Deferral
      Account(s) (determined as of the most recent Valuation Date preceding the Change
      of Control). 

    

    Section
      2.09

    

    Code.
“Code”
      shall mean the Internal Revenue Code of 1986, as amended. References to any
      provision of the Code or regulation (including a proposed regulation) thereunder
      shall include any successor provisions or regulations.

    

    Section
      2.10

    

    Company.“Company”
      means Advance Auto Parts, Inc., its successors, any subsidiary or affiliated
      organizations authorized by the Board or the Retirement Plan Committee to
      participate in the Plan and any organization into which or with which Advance
      Auto Parts, Inc. may merge or consolidate or to which all or substantially
      all
      of its assets may be transferred.

    

    Section
      2.11

    

    Deferral
      Account.“Deferral
      Account” means the account maintained on the books of the Administrative
      Committee for each Participant pursuant to Article VI. 

    

    Section
      2.12

    

    Deferral
      Period.“Deferral
      Period” is defined in Section 4.02.

    

    
      
         

        
        

      

      
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    Section
      2.13

    

    Deferred
      Amount.“Deferred
      Amount” is defined in Section 4.02.

    

    Section
      2.14

    

    Designee.“Designee”
      shall mean the Company’s senior human resources officers or other individuals to
      whom the Committee has delegated the authority to take action under the Plan.
      Wherever Committee is referenced in the plan, it shall be deemed to also refer
      to Designee.

    

    Section
      2.15

    

    Disability.“Disability”
      means eligibility for disability benefits under the terms of the Company’s
      Long-Term Disability Plan maintained by the Company.

    

    Section
      2.16

    

    Eligible
      Compensation.“Eligible
      Compensation” means any Base Salary and Bonus otherwise payable with respect to
      a Plan Year.

    

    Section
      2.17

    

    ERISA.“ERISA”
      means the Employee Retirement Income Security Act of 1974, as
      amended.

    

    Section
      2.18

    

    Form
      of Payment.“Form
      of
      Payment” means payment in one lump sum or in substantially equal annual
      installments over a period of up to 10 years.

    

    Section
      2.19

    

    Hardship
      Withdrawal.“Hardship
      Withdrawal” means the early payment of all or part of the balance in a Deferral
      Account(s) in the event of an Unforeseeable Emergency.

    

    Section
      2.20

    

    Hypothetical
      Investment Benchmark.“Hypothetical
      Investment Benchmark” shall mean the phantom investment benchmarks, which are
      used to measure the return, credited to a Participant’s Deferral
      Account.

    

    Section
      2.21

    

    Matching
      Contribution.“Matching
      Contribution” means the amount of annual matching contribution that the Company
      may make to the Plan. 

     

     

    
      
        
        

      

      
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    Section
      2.22

    

    Participant.“Participant”
      means any individual who is eligible or makes an election to participate in
      this
      Plan and who elects to participate by filing a Participation Agreement as
      provided in Article IV.

    

    Section
      2.23

    

    Participation
      Agreement.
      “Participation Agreement” means an agreement filed by a Participant in
      accordance with Article IV.

    

    Section
      2.24

    

    Plan
      Year.“Plan
      Year” means a twelve-month period beginning January 1 and ending the following
      December 31.

    

    Section
      2.25

    

    Retirement.“Retirement”
      means retirement of a Participant from the Company after attaining age 55 with
      at least ten continuous years of service.

    

    Section
      2.26

    

    Retirement
      Plan Committee.
      “Retirement Plan Committee” means the compensation committee of the
      Board.

    

    Section
      2.27

    

    Team
      Member.“Team
      member” means an employee of the Company.

    

    Section
      2.28

    

    Termination
      of Employment.“Termination
      of Employment” means the cessation of a Participant’s  services
      as a full-time team member of the Company for any reason other than
      Retirement.

    

    Section
      2.29

    

    Unforeseeable
      Emergency.“Unforeseeable
      Emergency” means severe financial hardship to the Participant resulting from a
      sudden and unexpected illness or accident of the Participant or a dependent
      of
      the Participant, loss of the Participant’s property due to casualty, or other
      similar extraordinary and unforeseeable circumstances arising as a result of
      events beyond the control of the Participant.

    
      
         

        
        

      

      
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    Section
      2.30

    

    Valuation
      Date.“Valuation
      Date” means the last day of each calendar month or such other date as the
      Administrative Committee in its sole discretion may determine.

    

    

    ARTICLE
      III

    ADMINISTRATION

    

    Section
      3.01

    

    Retirement
      Plan Committee and Administrative Committee Duties.
      This
      Plan shall be administered by the Retirement Plan Committee. A majority of
      the
      members of the Retirement Plan Committee shall  constitute
      a quorum for the transaction of business. All resolutions or other action taken
      by the Retirement Plan Committee shall be by a vote of a majority of its members
      present at any meeting or, without a meeting, by an instrument in writing signed
      by all its members. Members of the Retirement Plan Committee may participate
      in
      a meeting of such committee by means of a conference telephone or similar
      communications equipment that enables all persons participating in the meeting
      to hear each other, and such participation in a meeting shall constitute
      presence in person at the meeting and waiver of notice of such
      meeting.

    

    The
      Retirement Plan Committee shall be responsible for the administration of this
      Plan and shall have all powers necessary to administer this Plan, including
      discretionary authority to determine eligibility for benefits and to decide
      claims under the terms of this Plan, except to the extent that any such powers
      are vested in any other person administering this Plan by the Retirement Plan
      Committee. The Retirement Plan Committee may from time to time establish rules
      for the administration of this Plan, and it shall have the exclusive right
      to
      interpret this Plan and to decide any matters arising in connection with the
      administration and operation of this Plan. All rules, interpretations and
      decisions of the Retirement Plan Committee shall be conclusive and binding
      on
      the Company, Participants and Beneficiaries.

    

    The
      Retirement Plan Committee has delegated to the Administrative Committee
      responsibility for performing certain administrative and ministerial functions
      under this Plan. The Administrative Committee shall be responsible for
      determining in the first instance issues related to eligibility, Hypothetical
      Investment Benchmarks, distribution of Deferred Amounts, determination of
      account balances, crediting of hypothetical earnings and debiting of
      hypothetical losses and of distributions, in-service withdrawals, deferral
      elections and any other duties concerning the day-to-day operation of this
      Plan.
      The Retirement Plan Committee shall have discretion to delegate to the
      Administrative Committee such additional duties as it may determine. The
      Administrative Committee may designate one of its members as a chairperson
      and
      may retain and supervise outside providers, third party administrators, record
      keepers and professionals (including in-house professionals) to perform any
      or
      all of the duties delegated to it hereunder.

     

     

    
      
        
        

      

      
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    Neither
      the Retirement Plan Committee nor a member of the Board nor any member of the
      Administrative Committee shall be liable for any act or action hereunder,
      whether of omission or commission, by any other member or team member or by
      any
      agent to whom duties in connection with the administration of this Plan have
      been delegated or for anything done or omitted to be done in connection with
      this Plan. The Retirement Plan Committee and the Administrative Committee shall
      keep records of all of their respective proceedings and the Administrative
      Committee shall keep records of all payments made to Participants or
      Beneficiaries and payments made for expenses or otherwise.

    

    The
      Company shall, to the fullest extent permitted by law, indemnify each director,
      officer or team member of the Company (including the heirs, executors,
      administrators and other personal representatives of such person), each member
      of the Retirement Plan Committee and Administrative Committee against expenses
      (including attorneys’ fees), judgments, fines, amounts paid in settlement,
      actually and reasonably incurred by such person in connection with any
      threatened, pending or actual suit, action or proceeding (whether civil,
      criminal, administrative or investigative in nature or otherwise) in which
      such
      person may be involved by reason of the fact that he or she is or was serving
      this Plan in any capacity at the request of the Company, the Retirement Plan
      Committee or Administrative Committee.

    

    Any
      expense incurred by the Company, the Retirement Plan Committee or the
      Administrative Committee relative to the administration of this Plan shall
      be
      paid by the Company and/or may be deducted from the Deferral Accounts of the
      Participants as determined by the Retirement Plan Committee.

    

    Section
      3.02

    

    Claim
      Procedure.
      If a
      Participant or Beneficiary makes a written request alleging a right to receive
      payments under this Plan or alleging a right to receive an adjustment in
      benefits being paid under this Plan, such actions shall be treated as a claim
      for benefits. All claims for benefits under this Plan shall be sent to the
      Administrative Committee. If the Administrative Committee determines that any
      individual who has claimed a right to receive benefits, or different benefits,
      under this Plan is not entitled to receive all or any part of the benefits
      claimed, the Administrative Committee shall inform the claimant in writing
      of
      such determination and the reasons thereof in terms calculated to be understood
      by the claimant. The notice shall be sent within 90 days of the claim unless
      the
      Administrative Committee determines that additional time, not exceeding 90
      days,
      is needed and so notifies the Participant. The notice shall make specific
      reference to the pertinent Plan provisions on which the denial is based, and
      shall describe any additional material or information that is necessary. Such
      notice shall, in addition, inform the claimant of the procedure that the
      claimant should follow to take advantage of the review procedures set forth
      below in the event the claimant desires to contest the denial of the claim.
      The
      claimant may within 90 days thereafter submit in writing to the Administrative
      Committee a notice that the claimant contests the denial of his or
      her

     

     

    
      
        
        

      

      
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     claim
      and desires a further review by the Retirement Plan Committee. The Retirement
      Plan Committee shall within 60 days thereafter review the claim and authorize
      the claimant to review pertinent documents and submit issues and comments
      relating to the claim to the Retirement Plan Committee. The Retirement Plan
      Committee will render a final decision on behalf of the Company with specific
      reasons thereof in writing and will transmit it to the claimant within 60 days
      of the written request for review, unless the Chairperson of the Retirement
      Plan
      Committee determines that additional time, not exceeding 60 days, is needed,
      and
      so notifies the Participant. If the Committee fails to respond to a claim filed
      in accordance with the foregoing within 60 days or any such extended period,
      the
      Company shall be deemed to have denied the claim.

    

    ARTICLE
      IV

    PARTICIPATION

    

    Section
      4.01

    

    Participation.
      Participation in the Plan shall be limited to executives who (i) meet such
      eligibility criteria as the Retirement Plan Committee shall establish from
      time
      to time, (ii) be selected by the Retirement Plan Committee for participation
      (iii) be at least 21 years of age and have at least one year of continuous
      service (1,000 hours) with the Company, and (iv) elect to participate in this
      Plan by filing a Participation Agreement with the Administrative Committee.
      A
      Participation Agreement must be filed prior to the December 1st immediately
      preceding the Plan Year for which it is effective. The Administrative Committee
      shall have the discretion to establish special deadlines regarding the filing
      of
      Participation Agreements for Participants. Once a participation agreement is
      executed, it will remain in effect for all future Plan years unless a new
      Participation Agreement is executed during the enrollment period for a
      subsequent Plan year.

    

    Section
      4.02

    

    Contents
      of Participation Agreement.
      Subject
      to Article VIII, each Participation Agreement shall set forth: (i) the amount
      of
      Eligible Compensation for the Plan Year or performance period to which the
      Participation Agreement relates that is to be deferred under the Plan (the
      “Deferred Amount”), expressed as a percentage of the Base Salary and/or a
      percentage of the Bonus for such Plan Year or performance period; provided,
      that
      minimum and maximum Deferred Amounts for any Plan Year or performance period
      shall be set by the Retirement Plan Committee (ii) the period after which
      payment of the Deferred Amount is to be made or begin to be made (the “Deferral
      Period”), which shall be the earlier of (A) a number of full years, not less
      than three, and (B) the period ending upon the Retirement or prior termination
      of employment of the Participant, and (iii) the form in which payments are
      to be
      made, which may be a lump sum or in substantially equal annual installments
      over
      a period of up to 10 years.

    

    

    
      
        
        

      

      
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    Section
      4.03

    

    Modification
      or Revocation of Election by Participant.
      A
      Participant may not change the amount of his Base Salary or Bonus Deferrals
      during a Plan Year. However, a Participant may discontinue a Base Salary or
      Bonus Deferral election at any time by filing, on such forms and subject to
      such
      limitations and restrictions as the Administrative Committee may prescribe
      in
      its discretion, a revised Participation Agreement with the Administrative
      Committee. If approved by the Administrative Committee, revocation shall take
      effect as of the first payroll period next following its approval. If a
      Participant discontinues a Base Salary or Bonus Deferral election during a
      Plan
      Year, he will not be permitted to elect to make Base Salary or Bonus Deferrals
      again until the later of the next Plan Year or six months from the date of
      discontinuance. In addition, the Deferral Period may be extended if an amended
      Participation Agreement is filed with the Administrative Committee at least
      one
      full calendar year before the Deferral Period (as in effect before such
      amendment) ends; provided, that only one such amendment may be filed with
      respect to each Participation Agreement. Under no circumstances may a
      Participant’s Participation Agreement be made, modified or revoked
      retroactively, nor may a deferral period be shortened or reduced.

    

    

    

    ARTICLE
      V

    DEFERRED
      COMPENSATION

    

    Section
      5.01

    

    Elective
      Deferred Compensation.
      The
      Deferred Amount of a Participant with respect to each Plan Year of participation
      in the Plan shall be credited by the Administrative Committee to the
      Participant’s Deferral Account as and when such Deferred Amount would otherwise
      have been paid to the Participant. To the extent that the Company is required
      to
      withhold any taxes or other amounts from the Deferred Amount pursuant to any
      state, Federal or local law, such amounts shall be taken out of other
      compensation eligible to be paid to the Participant that is not deferred under
      this Plan.

    

    Section
      5.02

    

    Vesting
      of Deferral Account.
      Except
      as provided in Section 7.02, a Participant shall be 100% vested in his/her
      Deferral Account at all times.

    

    
      
         

        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      VI

    MAINTENANCE
      AND INVESTMENT OF ACCOUNTS

    

    Section
      6.01

    

    Maintenance
      of Accounts.
      Separate
      Deferral Accounts shall be maintained for each Participant. More than one
      Deferral Account may be maintained for a Participant as necessary to reflect
      (a)
      various Hypothetical Investment Benchmarks and/or (b) separate Participation
      Agreements specifying different Deferral Periods and/or forms of payment. A
      Participant’s Deferral Account(s) shall be utilized solely as a device for the
      measurement and determination of the amounts to be paid to the Participant
      pursuant to this Plan, and shall not constitute or be treated as a trust fund
      of
      any kind. The Administrative Committee shall determine the balance of each
      Deferral Account, as of each Valuation Date, by adjusting the balance of such
      Deferral Account as of the immediately preceding Valuation Date to reflect
      changes in the value of the deemed investments thereof, credits and debits
      pursuant to Section 5.01 and Section 6.02 and distributions pursuant to Article
      VII with respect to such Deferral Account since the preceding Valuation
      Date.

    

    Section
      6.02

    

    Hypothetical
      Investment Benchmarks.
      Each
      Participant shall be entitled to direct the manner in which his/her Deferral
      Accounts will be deemed to be invested, selecting among the Hypothetical
      Investment Benchmarks specified in Appendix A hereto, as amended by the
      Retirement Plan Committee from time to time, and in accordance with such rules,
      regulations and procedures as the Retirement Plan Committee may establish from
      time to time. Notwithstanding anything to the contrary herein, earnings and
      losses based on a Participant’s investment elections shall begin to accrue as of
      the date such Participant’s Deferral Amounts are credited to his/her Deferral
      Accounts. 

    

    Section
      6.03

    

    Statement
      of Accounts.
      The
      Administrative Committee shall submit to each Participant quarterly statements
      of his/her Deferral Account(s), in such form as the Administrative Committee
      deems desirable, setting forth the balance to the credit of such Participant
      in
      his/her Deferral Account(s) as of the end of the most recently completed
      quarter.

    
      
         

        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    ARTICLE
      VII

    BENEFITS

    

    Section
      7.01

    

    Time
      and Form of Payment.
      At the
      end of the Deferral Period for each Deferral Account, the Company shall pay
      to
      the Participant the balance of such Deferral Account at the time or times
      elected by the Participant in the applicable Participation Agreement; provided
      that if the Participant has elected to receive payments from a Deferral Account
      in a lump sum, the Company shall pay the balance in such Deferral Account
      (determined as of the most recent Valuation Date preceding the end of the
      Deferral Period) in a lump sum in cash as soon as practicable after the end
      of
      the Deferral Period. If the Participant has elected to receive payments from
      a
      Deferral Account in installments, the Company shall make annual cash payments
      from such Deferral Account, each of which shall consist of an amount equal
      to
      (i) the balance of such Deferral Account as of the most recent Valuation Date
      preceding the payment date times (ii) a fraction, the numerator of which is
      one
      and the denominator of which is the number of remaining installments (including
      the installment being paid). The first such installment shall be paid as soon
      as
      practicable after the end of the Deferral Period and each subsequent installment
      shall be paid on or about the anniversary of such first payment. Each such
      installment shall be deemed to be made on a pro rata basis from each of the
      different deemed investments of the Deferral Account (if there is more than
      one
      such deemed investment).

    

    Section
      7.02

    

    Company
      Contributions.
      The
      Company may, at any time and in its complete discretion, make Matching
      Contributions or other Contributions to any Participant’s Deferral Account.
      Matching Contributions or any other Company Contributions shall be invested
      among the same Hypothetical Investment Benchmarks as defined in 6.02 in the
      same
      proportion as the elections made by the Participant governing the deferrals
      of
      the Participant. The Matching Contributions or any other Company Contributions
      shall be distributed to the Participant according to the election made by the
      Participant governing his/her deferrals and will vest after twenty-four months
      after the plan year for which the contribution is made.

    

    Section
      7.03

    

    Retirement.
      Subject
      to Section 7.01 and Section 7.06 hereof, if a Participant has elected to have
      the balance of his/her Deferral Account distributed upon Retirement, the account
      balance of the Participant (determined as of the most recent Valuation Date
      preceding such Retirement) shall be distributed upon Retirement in installments
      or a lump sum in accordance with the Plan and as elected in the Participation
      Agreement.

    
      
         

        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    Section
      7.04

    

    In-Service
      Distributions.
      Subject
      to Section 7.01 and Section 7.06 hereof, if a Participant has elected to defer
      Eligible Compensation under the Plan for a stated number of years, the account
      balance of the Participant (determined as of the most recent Valuation Date
      preceding such Deferral Period) shall be distributed in installments or a lump
      sum in accordance with the Plan and as elected in the Participation
      Agreement.

    

    Section
      7.05

    

    Other
      Than Retirement.
      Notwithstanding the provisions of Section 7.03 and Section 7.04 hereof and
      any
      Participation Agreement, if a Participant dies, has a Termination of Employment
      or Disability prior to Retirement and prior to receiving full payment of his/her
      Deferral Account(s), the Company shall pay the remaining balance (determined
      as
      of the most recent Valuation Date preceding such event) to the Participant
      or
      the Participant’s Beneficiary or Beneficiaries (as the case may be) in a lump
      sum in cash only as soon as practicable following the occurrence of such event,
      unless the Administrative Committee in its sole discretion determines otherwise.
      Subject to Section 7.02(a) hereof, the amount distributable under the proceeding
      sentence of this Section 7.05 shall be based on the Participant’s Hypothetical
      Investment Elections.

    

    Section
      7.06

    

    Hardship
      Withdrawals.
      Notwithstanding the provisions of Section 7.01 and any Participation Agreement,
      a Participant shall be entitled to early payment of all or part of the balance
      in his/her Deferral Account(s) in the event of an Unforeseeable Emergency,
      in
      accordance with this Section 7.06. A distribution pursuant to this Section
      7.06
      may only be made to the extent reasonably needed to satisfy the Unforeseeable
      Emergency need, and may not be made if such need is or may be relieved (i)
      through reimbursement or compensation by insurance or otherwise, (ii) by
      liquidation of the Participant’s assets to the extent such liquidation would not
      itself cause severe financial hardship, or (iii) by cessation of participation
      in the Plan. An application for an early payment under this Section 7.06 shall
      be made to the Administrative Committee in such form and in accordance with
      such
      procedures as the Administrative Committee shall determine from time to time.
      The determination of whether and in what amount and form a distribution will
      be
      permitted pursuant to this Section 7.06 shall be made by the Administrative
      Committee.

    

    Section
      7.07

    

    Voluntary
      Early Withdrawal.
      Notwithstanding the provisions of Section 7.01 and any Participation Agreement,
      a Participant shall be entitled to elect to withdraw all of the balance in
      his/her Deferral Account(s) in accordance with this Section 7.07 by filing
      with
      the Administrative Committee such forms, in accordance with such procedures,
      as
      the Administrative Committee shall determine from time to time. As soon as
      practicable after receipt of such form by the Administrative Committee, the
      Company shall pay an

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    amount
      equal to ninety percent of the balance in such Participant’s Deferral Account(s)
      (determined as of the most recent Valuation Date preceding the date such
      election is filed) to the electing Participant in a lump sum in cash, and the
      Participant shall forfeit the remainder of such Deferral Account(s). All
      Participation Agreements previously filed by a Participant who elects to make
      a
      withdrawal under this Section 7.07 shall be null and void after such election
      is
      filed (including without limitation Participation Agreements with respect to
      Plan Years or performance periods that have not yet been completed), and such
      a
      Participant shall not thereafter be entitled to file any Participation
      Agreements under the Plan with respect to the first Plan Year that begins after
      such election is made.

    

    Section
      7.08

    

    Change
      of Control.
      In the
      event of a Change of Control that is recommended for approval to the
      shareholders by the Board, no immediate special payment shall be made to any
      Participant and the terms and conditions of the Plan shall remain in full force
      and effect. Notwithstanding anything contained in this Plan to the contrary,
      upon a hostile Change of Control, the Company shall immediately pay to each
      Participant in a lump sum in cash the balance in his/her Deferral Account(s)
      (determined as of the most recent Valuation Date preceding the Change of
      Control) including any Company Matching Contributions. Hostile Change of Control
      is defined as a Change of Control of the Company, which is not recommended
      for
      approval to the shareholders by the Board. 

    

    Section
      7.09

    

    Payments
      in Connection with Change of Control.
      Notwithstanding anything contained in this Plan to the contrary, upon a hostile
      Change of Control, the Company shall immediately pay to each Participant in
      a
      lump sum in cash the balance in his/her Deferral Account(s) (determined as
      of
      the most recent Valuation Date preceding the Change of Control). 

    

    Section
      7.10

    

    Withholding
      of Taxes.
      Notwithstanding any other provision of this Plan, the Company shall withhold
      from payments made hereunder any amounts required to be so withheld by any
      applicable law or regulation.

    

    
      
         

        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      VIII

    BENEFICIARY
      DESIGNATION

    

    Section
      8.01

    

    Beneficiary
      Designation.
      Each
      Participant shall have the right, at any time, to designate any person, persons
      or entity as his Beneficiary or Beneficiaries. A Beneficiary designation shall
      be made, and may be amended, by the Participant by filing a written designation
      with the Administrative Committee, on such form and in accordance with such
      procedures as the Administrative Committee shall establish from time to time.
      

    

    Section
      8.02

    

    No
      Beneficiary Designation.
      If a
      Participant fails to designate a Beneficiary as provided above, or if all
      designated Beneficiaries predecease the Participant, then the Participant’s
      Beneficiary shall be deemed to be the Participant’s estate.

    

    

    ARTICLE
      IX

    AMENDMENT
      AND TERMINATION OF PLAN

    

    Section
      9.01 

    

    Amendment.
      The
      Board or the Advance Auto Parts, Inc. Retirement Plan Committee may at any
      time
      amend this Plan in whole or in part, provided, however, that no amendment shall
      be effective to decrease the balance in any Deferral Account as accrued at
      the
      time of such amendment, nor shall any amendment otherwise have a retroactive
      effect.

    

    Section
      9.02 

    

    Company’s
      Right to Terminate.
      The
      Board or the Advance Auto Parts, Inc. Retirement Plan Committee may at any
      time
      terminate the Plan with respect to future Participation Agreements. The Board
      or
      the Advance Auto Parts, Inc. Retirement Plan Committee may also terminate the
      Plan in its entirety at any time for any reason, including without limitation
      if, in its judgment, the continuance of the Plan, the tax, accounting, or other
      effects thereof, or potential payments thereunder would not be in the best
      interests of the Company, and upon any such termination, the Company shall
      immediately pay to each Participant in a lump sum the accrued balance in his
      Deferral Account (determined as of the most recent Valuation Date preceding
      the
      termination date).

    

    
      
         

        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      X

    MISCELLANEOUS

    

    Section
      10.01 

    

    Unfunded
      Plan.
      This
      Plan is intended to be an unfunded plan maintained primarily for the purpose
      of
      providing deferred compensation for a select group of highly compensated Team
      Members, within the meaning of Sections 201, 301 and 401 of ERISA. All payments
      pursuant to the Plan shall be made from the general funds of the Company and
      no
      special or separate fund shall be established or other segregation of assets
      made to assure payment. No Participant or other person shall have under any
      circumstances any interest in any particular property or assets of the Company
      as a result of participating in the Plan. Notwithstanding the foregoing, the
      Company may (but shall not be obligated to) create one or more grantor trusts,
      the assets of which are subject to the claims of the Company’s creditors, to
      assist it in accumulating funds to pay its obligations under the
      Plan.

    

    Section
      10.02 

    

    Nonassignability.
      Except
      as specifically set forth in the Plan with respect to the designation of
      Beneficiaries, neither a Participant nor any other person shall have any right
      to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise
      encumber, transfer, hypothecate or convey in advance of actual receipt the
      amounts, if any, payable hereunder, or any part thereof, which are, and all
      rights to which are, expressly declared to be unassignable and non-transferable.
      No part of the amounts payable shall, prior to actual payment, be subject to
      seizure or sequestration for the payment of any debts, judgments, alimony or
      separate maintenance owed by a Participant or any other person, nor be
      transferable by operation of law in the event of a Participant’s or any other
      person’s bankruptcy or insolvency.

    

    Section
      10.03 

    

    Validity
      and Severability.
      The
      invalidity or unenforceability of any provision of this Plan shall not affect
      the validity or enforceability of any other provision of this Plan, which shall
      remain in full force and effect, and any prohibition or unenforceability in
      any
      jurisdiction shall not invalidate or render unenforceable such provision in
      any
      other jurisdiction.

    

    Section
      10.04

    

    Governing
      Law.
      The
      validity, interpretation, construction and performance of this Plan shall in
      all
      respects be governed by the laws of the State of Virginia, without reference
      to
      principles of conflict of law, except to the extent preempted by federal law.
      

    

    

    
      
         

        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    Section
      10.05 

    

    Employment
      Status.
      This
      Plan does not constitute a contract of employment or impose on the Participant
      or the Company any obligation for the Participant to remain an team member
      of
      the Company or change the status of the Participant’s employment or the policies
      of the Company and its affiliates regarding termination of
      employment.

    

    Section
      10.06 

    

    Underlying
      Incentive Plans and Programs.
      Nothing
      in this Plan shall prevent the Company from modifying, amending or terminating
      the compensation or the incentive plans and programs pursuant to which cash
      awards are earned and which are deferred under this Plan.

    

    Section
      10.07

    

    Severance.
      Notwithstanding anything to the contrary herein the Advance Auto Parts, Inc.
      Retirement Plan Committee may, in its sole and exclusive discretion, determine
      that the Deferral Account of a Participant who has incurred a Termination of
      Employment and who receives or will receive severance payments from the Company
      shall be paid in installments, at such intervals as the Advance Auto Parts,
      Inc.
      Retirement Plan Committee may decide. 

    

    

     

    
      
         

        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Appendix
                A 

            
	 
	
              Advance
                Auto Parts, Inc. MONY Deferred

              Compensation
                Plan Investment
                Funds 

            

    

     

     

    
      	
              Enterprise
                Total Return

            
	
              MFS
                Total Return

            
	
              Dreyfus
                Stock Index

            
	
              MFS
                New Discovery

            
	
              Dreyfus
                Appreciation

            
	
              Janus
                Aspen Capital Appreciation

            
	
              MONY
                Money Market Fund 

            
	
              T.
                Rowe Price Int'l Stock

            

    

    

    

    

    

    
      
         

        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    APPENDIX A
      TO THE

    ADVANCE
      AUTO PARTS

    DEFERRED
      COMPENSATION PLAN

    

    Merger
      With Discount Auto Parts Plan

    

    Dated:
      November 1, 2003

    

    

    1. Overview.

    

    (a) Discount
      Auto Parts, Inc. (“Discount Auto Parts”) was acquired by, and is now a
      subsidiary of, the Company. Discount Auto Parts has maintained the Discount
      Auto
      Parts Plan, Inc. Supplemental Executive Profit Sharing Plan (the “DAP
      SEP”), a deferred compensation plan, for the benefit of its eligible
      employees.

    

    (b) The
      DAP
      SEP shall be merged with and into the Plan, effective as of November 1,
      2003, or as of such other administratively practicable date (which effective
      date is hereby referred to as the “Merger Date”).

    

    (c) The
      merger of the Plans shall be made in accordance with the following provisions
      of
      this Appendix A.

    

    

    2. DAP
      SEP Participants.
      For
      purposes of this Appendix A, a “DAP SEP Participant” means any current or
      former employee of Discount Auto Parts for whom an account was maintained under
      the DAP SEP as of the Merger Date. A DAP SEP Participant shall become a
      Participant in the Plan, but only with respect to the rights associated with
      the
      Participant’s DAP SEP Account established pursuant to Section 3 below,
      unless and to the extent the individual has become a general Participant in
      the
      Plan pursuant to Section 4.01 of the Plan.

    

    3. Separate
      DAP SEP Account.
      The
      value of each DAP SEP Participant’s accrued benefit under the DAP SEP, as
      adjusted for any accrued interest income, shall be transferred to and become
      a
      liability of the Plan as of the Merger Date. Such amount shall be allocated
      to a
      separate DAP SEP Account established and maintained on the DAP SEP Participant’s
      behalf. A DAP SEP Participant shall at all times be fully vested and have a
      nonforfeitable interest in the value of his or her DAP SEP Account.

    

    4. Deemed
      Investment of Accounts.
      The
      provisions of Section 6.02 of the Plan shall apply in regard to a DAP SEP
      Participant’s DAP SEP Account. Accordingly, a DAP SEP Participant shall be
      entitled to direct the manner in which his or her DAP SEP Account will be deemed
      to be invested by selecting

     

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    among
      the
      Hypothetical Investment Benchmarks specified from time to time in
      Appendix A of the Plan.

    

    5. Payment
      of Benefits.

    

    (a) Upon
      a
      DAP SEP Participant’s termination of employment with the Company and its
      affiliates, or, if earlier, upon such Participant’s attainment of age 65
      (the “Normal Retirement Age” under the DAP SEP), such DAP SEP Participant shall
      become entitled to receive payment of the value of the balance of his or her
      DAP
      SEP Account determined as of the date of such event. Payment of such benefit
      shall be made in a lump sum within 120 days after the occurrence of the
      event giving rise to the DAP SEP Participant’s right to receive
      payment.

    

    (b) A
      DAP SEP
      Participant shall not be entitled to elect to receive any portion of his or
      her
      DAP SEP Account prior to terminating employment or attaining age 65.
      Consequently, the in-service distribution, hardship withdrawal and voluntary
      early withdrawal provisions of the Plan (Sections 7.04, 7.06 and 7.07,
      respectfully) shall not apply to a Participant’s DAP SEP Account.

    

    (c) The
      timing of the payment of a Participant’s DAP SEP Account shall not be affected
      by the timing of any other benefits that the DAP SEP Participant may be entitled
      to receive as a general Participant in the Plan.

    

    6. Death
      Benefits.
      Any
      beneficiary designation filed under the DAP SEP by a DAP SEP Participant whose
      death has not occurred prior to the Merger Date became null and void as of
      the
      Merger date. Accordingly, a DAP SEP Participant who is not a general Participant
      in the Plan as of the Merger Date may designate a Beneficiary or Beneficiaries
      as prescribed under Section 8.01 of the Plan. In the event of the DAP SEP
      Participant’s death prior to payment of his or her DAP SEP Account, the
      Participant’s interest in that Account shall be paid to the Participant’s
      Beneficiary as designated under the Plan (or, if applicable, pursuant to the
      default rules of Section 8.02.

    

    7. Application
      of Plan.
      All of
      the terms of the Plan shall be applicable with respect to the DAP SEP Account
      of
      each DAP SEP Participant, except as otherwise specifically provided in this
      Appendix A.

    

    8. Effect
      of Merger.
      The
      merger of the DAP SEP in the Plan as prescribed under this Appendix A shall
      in no event constitute the termination of employment or separation of service
      with respect to any affected Participant. Accordingly, no Participant shall
      be
      entitled to any distribution under the Plan, or to become vested in his or
      her
      benefits, solely by reason of the merger of the Plan.

     

    
      
        
        

      

      
        19Exhibit 10.36

    Exhibit
      10.36

    
 

    Advance
      Auto Parts

    2006
      Executive Bonus Plan

    

    Purpose

    The
      purpose of the Advance Auto Parts 2006 Executive Bonus Plan (the “Plan”) is to
      tie a portion of each participant’s annual compensation to the achievement of
      established financial goals as defined in the fiscal year budget of Advance
      Auto
      Parts, Inc. (the “Company”).

    

    Eligibility

    Cash
      awards (“Awards”) may be made under this Plan to certain key employees of the
      Company or its subsidiaries who have been designated by the Compensation
      Committee of the Company’s Board of Directors (the “Committee”) to participate
      in the Plan (“Participants”).

    

    Annual
      Bonus Target

    For
      each
      fiscal year for which the Committee determines Awards may be made under the
      Plan
      (the “Performance Period”), the Committee will establish a Bonus Target for each
      Participant. Any Award payable under this Plan is calculated by comparing the
      actual results with budget goals for each respective performance measure using
      full-year, consolidated company financial measures.

    

    Annual
      Bonus Performance Measures

    Each
      Participant’s Annual Bonus Target includes Annual Performance Measures (as more
      fully explained below), with a respective weighting, as follows:

     

    
      	 	Measure    	
              Weight

            
	 	· 	
              Consolidated
                Company Sales 

            	
              30%

            
	 	· 	
              Consolidated
                Operating Income 

            	
              30%

            
	 	· 	
              Consolidated
                Operating Income compared to 

              prior
                year Operating Income 

            	
              30%    

            
	 	· 	
              Inventory
                Turns 

            	
              10%  

            

    

     

    
      	Consolidated Company Sales 	30% of Annual Bonus
              Target 

    

     

    If
      the
      Company achieves its Consolidated Company Sales Goal (“CSG”) as defined by the
      Board of Directors in the Company’s annual budget for a Performance Period, the
      Participant will receive an Award equal to 30% of his or her Annual Bonus
      Target. For example, if the Participant’s Annual Bonus Target is $200,000, 30%
      of the Annual Bonus Target would equal $60,000. Performance above or below
      the
      CSG, and the related effects on Award payouts are outlined below:

    

    Performance
      Payout Range

    Participants
      are eligible to receive payouts above and below the Annual Bonus Target level
      based on actual CSG performance as compared to the goal. Actual CSG performance
      equal to 96% of goal will result in a 25% payout of the CSG target. CSG
      performance between 96% and 100% results in an equally incremental pro-rata
      Award payout. CSG performance below 96% of goal will result in no Award payout.
      

    

    Actual
      CSG performance above goal will increase a Participant’s Award. CSG performance
      of 104% of goal results in a maximum Award payout of 200% of the CSG target.
      CSG
      performance between 100% and 104% of goal will result in an equally incremental
      pro-rata Award payout.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	Consolidated Operating
                Income 	30% of Annual Bonus
                Target 

      

       

    

    If
      the
      Company achieves its Consolidated Operating Income Goal (COIG) as defined by
      the
      Board of Directors in the annual budget for a Performance Period, the
      Participant will receive an Award equal to 30% of his or her Annual Bonus
      Target. For example, if a Participant’s Annual Bonus Target is $200,000, 30% of
      the Annual Bonus Target equals $60,000. Performance above or below the COIG,
      and
      the related effects on Awards are outlined below:

    

    Performance
      Payout Range

    Participants
      are eligible to receive Award payouts above and below the Annual Bonus Target
      level based on actual COIG performance compared to the goal. Actual COIG
      performance equal to 90% of goal will result in a 25% payout of the COIG target.
      COIG performance between 90% and 100% results in an equally incremental pro-rata
      payout. COIG performance below 90% of goal will result in no Award payout.
      

    

    Actual
      consolidated sales performance above goal will increase a Participant’s Award.
      COIG performance of 110% of goal results in a maximum payout of 200% of the
      COIG
      target. COIG performance between 100% and 110% of goal results in an equally
      incremental pro-rata payout.

     

    
       

      
        	Consolidated Operating Income Compared to
                Prior
                Year 	30% of Annual Bonus
                Target 

      

       

    

    Actual
      Consolidated Operating Income results are compared with the prior fiscal year
      Consolidated Operating Income results as a basis for this measure. Consolidated
      Operating Income for the Performance Period must exceed the prior year’s
      Consolidated Operating Income by at least 15% for a Participant to receive
      an
      Award equal to 30% of his or her Annual Bonus Target. There is no Award payout
      if the Consolidated Operating Income results for the current fiscal year do
      not
      exceed the prior year results by 15%. If Consolidated Operating Income results
      are 40% or more above the prior year’s results, a maximum payout of 200% will be
      made. COIG performance between 115% and 140% of the prior year results in an
      equally incremental pro-rata payout.

    

    
       

      
        	Inventory Turns 	10% of Annual Bonus
                Target 

      

    

     

    Inventory
      Turns are compared with the Inventory Turn (IT) budget defined by the Board
      of
      Directors in the annual budget for the Performance Period in order to determine
      the Award payable for this measure. Actual IT equal to the IT budget will result
      in an Award equal to 10% of the Participant’s Annual Bonus Target. For example,
      if a Participant’s Annual Bonus Target was $200,000, 10% of his or her Annual
      Bonus Target would be $20,000. Performance above or below IT budget levels
      and
      the related effects on Awards are outlined below:

    

    Performance
      Payout Range

    Participants
      are eligible to receive payouts above and below the Annual Bonus Target based
      on
      actual IT performance compared to the budget. Actual IT performance equal to
      90%
      of budget will result in a 25% payout of the IT target. IT performance between
      90% and 100% results in an equally incremental pro-rata Award payout. IT
      performance below 90% of budget will result in no Award payout. 

    

    Actual
      IT
      performance above budget level will increase the Participant’s Award. IT
      performance of 110% of goal would result in a maximum payout of 200% of the
      IT
      target. IT performance between 100% and 110% of goal will result in an equally
      incremental pro-rata Award payout.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Plan
      Administration

    

    New
      Hires and Promotions

    Team
      Members who join the Company or its subsidiaries or who are promoted to occupy
      a
      position that is eligible to participate in this Plan as determined by the
      Committee will become eligible for a pro-rated Annual Bonus Target based on
      the
      date he or she becomes a Participant.

    

    Award
      Distributions 

    Any
      Award
      will be paid as soon as practicable after full-year results are completed,
      typically during the third accounting period of the fiscal year following the
      Performance Period. All Awards under the Plan are subject to withholding, where
      applicable, for federal, state and local taxes.

    

    Separation
      from employment

    All
      Award
      payments are subject to the terms of any employment agreement that may be in
      effect between the Company and the Participant. In the absence of such an
      agreement, the Committee, in its sole discretion, may make a pro-rata Award
      for
      the portion of the Performance Period that the Participant was employed to
      a
      Participant who has retired or whose employment terminated after the beginning
      of a Performance Period for which an Award is made. In the case of the death
      of
      a Participant during a Performance Period for which an Award is paid, payment
      of
      any full or partial Award shall be made to the beneficiary designated by the
      Participant for his or her account in the Company’s 401(k) Plan. If the
      Participant has not designated a beneficiary or does not participate in the
      Company’s 401(k) Plan, the Award shall be paid to the Participant’s
      estate.

    

    Plan
      Interpretation and Administration

    The
      Committee shall have sole discretion to administer and interpret this Plan.
      The
      Board of Directors or the Committee may terminate this Plan in whole or in
      part,
      may suspend the Plan in whole or in part from time to time, or may amend the
      Plan from time to time, with or without notice to the Participant. Nothing
      in
      this Plan or any Award granted under the Plan shall be deemed to constitute
      a
      contract of employment or a promise, assurance or representation of continued
      employment with the Company or its subsidiaries. 

    

    Miscellaneous

    

    Governing
      Law

    The
      Plan
      and any Award granted or action taken under the Plan shall be governed by and
      construed by and in accordance with the laws of the State of Delaware, without
      reference to principles of conflicts of laws thereof. 

    

    Effective
      Date

    The
      Plan
      shall be effective as of January 1, 2006.

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