Document:

Exhibit 10.1

 

FIFTH AMENDMENT TO WAREHOUSING CREDIT

AND SECURITY AGREEMENT

 

THIS FIFTH AMENDMENT TO WAREHOUSING CREDIT AND SECURITY AGREEMENT (this “Fifth Amendment”) is made effective as of the 25th day of January, 2013, by and between (i) WALKER & DUNLOP, LLC, a Delaware limited liability company (“Borrower”) and (ii) PNC BANK, NATIONAL ASSOCIATION (“Lender”).

 

R E C I T A L S

 

WHEREAS, the Lender and the Borrower are parties to that certain Warehousing Credit and Security Agreement, dated as of June 30, 2010 (the “Original Credit Facility Agreement”), as amended by that certain First Amendment to Warehousing Credit and Security Agreement, dated as of May 12, 2011 (the “First Amendment”), that certain Second Amendment to Warehousing Credit and Security Agreement, dated as of June 30, 2011 (the “Second Amendment”), that certain Third Amendment to Warehousing Credit and Security Agreement, dated as of March 8, 2012 (the “Third Amendment”), and that certain Fourth Amendment to Warehousing Credit and Security Agreement, dated as of September 4, 2012 (the “Fourth Amendment”) (the Original Credit Facility Agreement, as amended by the First Amendment, the Second Amendment, the Third Amendment and the Fourth Amendment, is herein the “Credit Facility Agreement”), whereby upon the satisfaction of certain terms and conditions set forth therein, the Lender agreed to make Warehousing Advances from time to time, up to the Warehousing Credit Limit (as defined in the Credit Facility Agreement).

 

WHEREAS, Walker & Dunlop, Inc., a Delaware corporation (“Guarantor”) has guaranteed Borrower’s obligations under the Credit Facility Agreement pursuant to that certain Guaranty and Suretyship Agreement dated as of June 30, 2011 (the “Guaranty”).

 

WHEREAS, the Warehousing Credit Limit is currently Three Hundred Fifty Million Dollars ($350,000,000), and the Borrower has requested, and the Lender has agreed, pursuant to the terms hereof, to increase the Warehousing Credit Limit to Four Hundred Fifty Million Dollars ($450,000,000).

 

NOW, THEREFORE, for and in consideration of the premises, the mutual entry of this Fifth Amendment by the parties hereto and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

 

Section 1.              Recitals.  The Recitals are hereby incorporated into this Fifth Amendment as a substantive part hereof.

 

Section 2.              Definitions.  Terms used herein and not otherwise defined shall have the meanings set forth in the Credit Facility Agreement.

 

Section 3.              Amendments to Credit Facility Agreement.  The Credit Facility Agreement is hereby amended as follows:

 

 

(a)           The Warehousing Note referenced in Section 1.3 and attached to the Credit Facility Agreement as Exhibit A, is hereby replaced with the Second Amended and Restated Warehousing Note attached to this Fifth Amendment as Exhibit A.

 

(b)           The term “Warehousing Credit Limit” set forth in Section 12.1 of the Credit Facility Agreement is hereby deleted and replaced with the following:

 

“Warehousing Credit Limit” means Four Hundred Fifty Million Dollars ($450,000,000); provided, however upon Borrower’s written request, Lender may, in its sole discretion, increase the Warehousing Commitment.

 

Section 4.              Ratification, No Novation, Effect of Modifications.  Except as may be amended or modified hereby, the terms of the Credit Facility Agreement are hereby ratified, affirmed and confirmed and shall otherwise remain in full force and effect.  Nothing in this Fifth Amendment shall be construed to extinguish, release, or discharge or constitute, create or effect a novation of, or an agreement to extinguish, release or discharge, any of the obligations, indebtedness and liabilities of the Borrower or any other party under the provisions of the Credit Facility Agreement or any of the other Loan Documents, unless specifically herein provided.

 

Section 5.              Amendments.  This Fifth Amendment may be amended or supplemented by and only by an instrument executed and delivered by each party hereto.

 

Section 6.              Waiver.  The Lender shall not be deemed to have waived the exercise of any right which it holds under the Credit Facility Agreement unless such waiver is made expressly and in writing (and no delay or omission by the Lender in exercising any such right shall be deemed a waiver of its future exercise).  No such waiver made as to any instance involving the exercise of any such right shall be deemed a waiver as to any other such instance, or any other such right.  Without limiting the operation and effect of the foregoing provisions hereof, no act done or omitted by the Lender pursuant to the powers and rights granted to it hereunder shall be deemed a waiver by the Lender of any of its rights and remedies under any of the provisions of the Credit Facility Agreement, and this Fifth Amendment is made and accepted without prejudice to any of such rights and remedies.

 

Section 7.              Governing Law.  This Fifth Amendment shall be given effect and construed by application of the law of the Commonwealth of Pennsylvania.

 

Section 8.              Headings.  The headings of the sections, subsections, paragraphs and subparagraphs hereof are provided herein for and only for convenience of reference, and shall not be considered in construing their contents.

 

Section 9.              Severability.  No determination by any court, governmental body or otherwise that any provision of this Fifth Amendment or any amendment hereof is invalid or unenforceable in any instance shall affect the validity or enforceability of (i) any other such provision or (ii) such provision in any circumstance not controlled by such determination.  Each such provision shall be valid and enforceable to the fullest extent allowed by, and shall be construed wherever possible as being consistent with, applicable law.

 

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Section 10.            Binding Effect.  This Fifth Amendment shall be binding upon and inure to the benefit of the Borrower, the Lender, and their respective permitted successors and assigns.

 

Section 11.            Counterparts.  This Fifth Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same instrument.

 

[REMAINDER OF PAGE INTENTIONALLY BLANK]

 

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IN WITNESS WHEREOF, each of the parties hereto have executed and delivered this Fifth Amendment under their respective seals as of the day and year first written above.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
WITNESS:
    	
WALKER &   DUNLOP, LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Daniel Groman
    	
 
    	
By:   
    	
/s/   Deborah A. Wilson
    
	
 
    	
 
    	
Name:
    	
Deborah   A. Wilson
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President, Chief
    
	
 
    	
 
    	
 
    	
Financial   Officer & Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
WITNESS:
    	
LENDER:
    
	
 
    	
 
    
	
 
    	
PNC   BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Beth Malota
    	
 
    	
By:   
    	
/s/   Terri Wyda
    
	
 
    	
 
    	
Name:
    	
Terri   Wyda
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    

 

 

JOINDER AND CONSENT OF GUARANTOR

 

Guarantor joins and consents to the provisions of the foregoing Fifth Amendment and all prior amendments and confirms and agrees that: (a) any and all guaranty, indemnification, or other obligations that Guarantor has incurred to Lender in connection with the Credit Facility Agreement, as amended by the foregoing Fifth Amendment, are and hereafter will remain in full force and effect; (b) the Guarantor’s obligations under the Guaranty shall be unimpaired by the Amendment; (c) Guarantor has no defenses, set offs, counterclaims, discounts or charges of any kind against the Lender, its officers, directors, employees, agents or attorneys with respect to the Guaranty; and (d) all of the terms, conditions and covenants in the Guaranty remain unaltered and in full force and effect and are hereby ratified and confirmed, as modified by the Fifth Amendment.  The Guarantor certifies that all representations and warranties made in the Guaranty are true and correct.

 

The Guarantor ratifies and confirms the indemnification and waiver of jury trial provisions contained in the Guaranty as amended by the Fifth Amendment.

 

WITNESS the due execution of this Joinder and Consent as a document under seal as of the date of the Fifth Amendment, intending to be legally bound hereby.

 

 

	
 
    	
 
    	
GUARANTOR:
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
WALKER &   DUNLOP, INC.,
    
	
 
    	
 
    	
a   Maryland corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Daniel Groman
    	
 
    	
By:   
    	
/s/   Deborah A. Wilson
    
	
 
    	
 
    	
Name:
    	
Deborah   A. Wilson
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President, Chief
    
	
 
    	
 
    	
 
    	
Financial   Officer & Treasurer
    

 

 

EXHIBIT A

 

FORM SECOND AMENDED AND RESTATED WAREHOUSING NOTE

 

 

SECOND AMENDED AND RESTATED WAREHOUSING NOTE

 

	
$450,000,000.00
    	
 
    	
January     , 2013
    

 

WALKER & DUNLOP, LLC, a Delaware limited liability company (“Borrower”) previously delivered to PNC Bank, National Association (together with its successors and assigns, “Lender”), that certain Amended and Restated Warehousing Note, dated March 8, 2012, in the principal amount of Three Hundred Fifty Million Dollars ($350,000,000.00) (the “Original Note”).  The Original Note evidences a line of credit and is the Warehousing Note referred to in that certain Warehousing Credit and Security Agreement, dated as of June 30, 2010, by and between the Borrower and Lender (the “Original Agreement”), as amended by that certain First Amendment to Warehousing Credit and Security Agreement, dated as of May 12, 2011, by and between the Borrower and Lender (the “First Amendment”), that certain Second Amendment to Warehousing Credit and Security Agreement, dated as of June 30, 2011, by and between the Borrower and Lender (the “Second Amendment”), that certain Third Amendment to Warehousing Credit and Security Agreement, dated March 8, 2012, by and between the Borrower and Lender (the “Third Amendment”) and that certain Fourth Amendment to Warehousing Credit and Security Agreement, dated September 4, 2012, by and between the Borrower and Lender (the “Fourth Amendment”).  Contemporaneously herewith, Borrower and Lender have entered into that certain Fifth Amendment to Warehousing Credit and Security Agreement (the “Fifth Amendment”) (the Original Agreement, as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment and the Fifth Amendment and as the same may be further amended, restated, renewed or replaced, is herein the “Agreement”), whereby Lender has agreed to, among other things, increase the Warehousing Credit Limit from Three Hundred Fifty Million Dollars ($350,000,000) to Four Hundred Fifty Million Dollars ($450,000,000).  Accordingly, Borrower and Lender desire to amend and restate the Original Note in its entirety as follows:

 

FOR VALUE RECEIVED, the Borrower promises to pay to the order of the Lender, in accordance with the provisions of the Agreement, at the offices of the Lender located at One PNC Plaza, Pittsburgh, Pennsylvania 15222, or at such other place as the Lender may designate from time to time (i) the principal sum of Four Hundred Fifty Million Dollars ($450,000,000.00), or so much thereof as may be outstanding under the Agreement, (ii) interest on that amount from the date of each Warehousing Advance until repaid in full, and (iii) all other fees, charges and other Obligations due to the Lender under the Agreement, at the rates, at the times, and in the manner set forth in the Agreement.  All payments under this Note and the Agreement must be made in lawful money of the United States and in immediately available funds.

 

This Second Amended and Restated Warehousing Note (this “Note”) replaces the Original Note in its entirety, and evidences a line of credit and is the Warehousing Note referred to in the Agreement.  Reference is made to the Agreement (which is incorporated by reference as fully and with the same effect as if set forth at length in this Note) for a description of the Collateral and a statement of (a) the covenants and agreements made by the Borrower, (b) the rights and remedies granted to Lender, and (c) the other matters governed by the Agreement.

 

 

Capitalized terms not otherwise defined in this Note have the meanings set forth in the Agreement.

 

In addition to principal, interest, fees and other charges payable by Borrower under this Note and the Agreement, the Borrower must pay in accordance with the terms of Section 11.2(a) of the Agreement, all out-of-pocket costs and expenses of Lender, including reasonable fees, expenses and disbursements of counsel, in connection with the enforcement and collection of this Note.

 

The Borrower waives demand, notice, protest and presentment in connection with collection of amounts outstanding under this Note.

 

This Note is governed by the laws of the Commonwealth of Pennsylvania, without reference to its principles of conflicts of laws, as an instrument under seal.

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, the Borrower and the Lender have caused this Second Amended and Restated Warehousing Note to be duly executed as of the date set forth above as a sealed instrument.

 

	
 
    	
WALKER &   DUNLOP, LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PNC   BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:Exhibit 10.1

 

MATSON, INC.

EXECUTIVE NOTICE OF AWARD OF PERFORMANCE SHARES

 

The Corporation hereby awards to Participant, as of the Award Date indicated below, an award (the “Award”) of Performance Shares under the Corporation’s 2007 Incentive Compensation Plan (the “Plan”).  Each Performance Share represents the right to receive one or more shares of Common Stock on the applicable issuance date following the vesting of that Performance Share.  The number of Performance Shares subject to this Award and the applicable performance vesting requirements for those Performance Shares and the underlying shares are set forth below. The remaining terms and conditions governing the Award, including the applicable service vesting requirements and the applicable issuance date or dates for the shares of Common Stock that vest under the Award, shall be as set forth in the form Performance Share Award Agreement for Awards with combined performance and service vesting requirements.

 

AWARD SUMMARY

 

	
Participant
    	
                                        
    
	
 
    	
 
    
	
Award   Date:
    	
                                ,   20      
    
	
 
    	
 
    
	
Performance
   Shares: 
    	
The   number of shares of Common Stock issuable pursuant to the Award shall be   determined in accordance with the Vesting Schedule below. For purposes of the   percentage calculations set forth in the Performance Vesting section of such   schedule, the number of shares of Common Stock to be utilized is                          shares (the “Performance Shares”). 
    
	
 
    	
 
    
	
Vesting Schedule:
    	
The number of shares of Common Stock which may actually vest and   become issuable pursuant to the Award shall be determined pursuant to a   two-step process: (i) first there shall be calculated the maximum number   of shares of Common Stock in which Participant can vest under the Performance   Vesting section below based upon (A) the actual level at which the   Performance Goal specified on attached Schedule I is attained and   (B) any adjustment by reason of the relative TSR Modifier specified on   attached Schedule I and (ii) then the number of shares calculated under   clause (i) in which Participant may actually vest shall be determined on   the basis of his or her satisfaction of the applicable Service vesting   requirements set forth in the form Performance Share Award Agreement.
    
	
 
    	
 
    
	
 
    	
Performance Vesting:  Attached Schedule I specifies the   Performance Goal, the TSR Modifier and Performance Period established for the   Award.
    
	
 
    	
 
    
	
 
    	
Performance Goal:  For the Performance Goal, there are three   designated levels of attainment set forth in Schedule I: Threshold, Target   and Extraordinary.  Within sixty (60)   days after the completion of the Performance Period, the Plan Administrator   shall determine and certify the actual level of attainment for the   Performance Goal and shall then measure that level of attainment against the   Threshold, Target and Extraordinary
    

 

 

	
 
    	
Levels set forth for that Performance Goal in attached Schedule   I.  The maximum number of shares of   Common Stock in which Participant can vest based upon the actual level of   attainment of such Performance Goal shall initially be determined by applying   the corresponding percentage below for that level of attainment to the number   of Designated Shares set forth above:
    
	
 
    	
 
    
	
 
    	
Attainment below the Threshold Level:                     % of the Performance   Shares
    
	
 
    	
Attainment at the Threshold Level:                            % of the   Performance Shares
    
	
 
    	
Attainment at the Target Level:                                                                                                        % of the   Performance Shares
    
	
 
    	
Attainment at Extraordinary Level:                     % of the   Performance Shares
    
	
 
    	
 
    
	
 
    	
To the extent the actual level of attainment of the   Performance Goal is at a point between the Threshold and Target Levels, the   maximum number of shares of Common Stock in which Participant can vest shall   be pro-rated between the two points on a straight line basis.
    
	
 
    	
 
    
	
 
    	
To the extent the actual level of attainment of a   Performance Goal is at a point between the Target and Extraordinary Levels,   the maximum number of shares of Common Stock in which Participant can vest   shall be pro-rated between the two points on a straight line basis.
    
	
 
    	
 
    
	
 
    	
TSR Modifier:  After the number of shares of Common Stock   in which Participant can vest based on the level of attainment of the   Performance Goal is determined, the relative TSR Modifier may either increase   or decrease the number of shares from +      %   to -      %.
    
	
 
    	
 
    
	
 
    	
Performance-Qualified Shares:  The maximum number of shares of Common   Stock in which Participant can vest on the basis of the foregoing performance   measures (as adjusted by the TSR Modifier) shall be hereinafter designated   the “Performance-Qualified Shares” and shall in no event exceed in the   aggregate           % of   the number of Designated Shares set forth in the Number of Shares Subject to   Award section above.
    
	
 
    	
 
    
	
 
    	
Service Vesting.    The number of Performance-Qualified Shares in   which Participant actually vests shall be determined on the basis of his or   her satisfaction of the Service-vesting requirements set forth in Paragraph 3   of the form Performance Share Award Agreement.   
    

 

Participant understands and agrees that the Award is granted subject to and in accordance with the terms of the Plan and hereby agrees to be bound by the terms of the Plan and the terms of the Award as set forth in the form Performance Share Award Agreement attached hereto as Exhibit A.  A copy of the Plan is available upon request made to the Human Resources Department at the Corporation’s principal offices (1411 Sand Island Parkway, Honolulu, HI 96819).

 

Coverage under Recoupment Policy. By accepting this Award, Participant hereby agrees that:

 

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(a)           Participant is subject to the Matson, Inc. Policy Regarding Recoupment of Certain Compensation, effective as of January 1, 2011, the terms of which are hereby incorporated herein by reference and receipt of a copy of which Participant hereby acknowledges; and

 

(b)           any incentive compensation that is paid or granted to, or received by, Participant on or after January 1, 2011 (including any incentive compensation that is paid to, or received by, Participant on or after January 1, 2011 pursuant to an incentive compensation award made to Participant prior to January 1, 2011) and during the three-year period preceding the date on which the Corporation is required to prepare an accounting restatement due to material non-compliance with any applicable financial reporting requirements under the federal securities laws shall, accordingly, be subject to recovery and recoupment pursuant to the terms of such policy.

 

For purposes of such recoupment policy, “incentive compensation” means all cash or equity-based bonus (e.g., any stock award, restricted stock unit award or stock option grant or shares of Common Stock issued thereunder) or any profit sharing payment or distribution that is based upon the achievement of financial performance metrics.  An additional copy of the recoupment policy is available upon request made to the Corporate Secretary at the Corporation’s principal offices.

 

Continuing Consent. Participant further acknowledges and agrees that, except to the extent the Plan Administrator notifies Participant in writing to the contrary, each subsequent award of Performance Shares made to him or her under the Plan shall be subject to the same terms and conditions set forth in the form Performance Share Award Agreement attached hereto as Exhibit A, and Participant hereby accepts those terms and conditions for each such subsequent Performance Shares award that may be made to him or her under the Plan and hereby agrees to be bound by those terms and conditions for any such Performance Share awards, without any further consent or acceptance required on his or her part at the time or times when those awards may be made.  However, Participant may, at any time he or she holds an outstanding Performance Share award under the Plan, request a written copy of the form Performance Share Award Agreement from the Corporation by contacting the Corporation’s Human Resources Department at the Corporation’s principal offices.

 

Employment at Will.  Nothing in this Notice or in the form Performance Share Award Agreement or in the Plan shall confer upon Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining Participant) or of Participant, which rights are hereby expressly reserved by each, to terminate Participant’s Service at any time for any reason, with or without cause.

 

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Definitions.  All capitalized terms in this Notice shall have the meaning assigned to them in this Notice or in the form Performance Share Award Agreement.

 

DATED:                               , 20  

 

 

	
 
    	
MATSON, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PARTICIPANT
    
	
 
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

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SCHEDULE I

 

PERFORMANCE PERIOD, PERFORMANCE GOAL, LEVELS OF ATTAINMENT AND TSR MODIFIER

 

PERFORMANCE PERIOD

 

The Performance Period shall be the three (3)-year period beginning                                          and ending                                         .

 

PERFORMANCE GOAL — RETURN ON INVESTED CAPITAL

 

The performance vesting requirement for this Award shall be tied to the level of attainment of the Average ROIC for the Performance Period. The required levels of attainment of Average ROIC for the Performance Period at the Threshold, Target and Extraordinary Levels are as follows:

 

	
Threshold Level: 
    	
 
    	
%
    
	
Target Level: 
    	
 
    	
%
    
	
Extraordinary Level 
    	
 
    	
%
    

 

“Average ROIC” shall be the percentage, rounded down to the nearest whole percent, determined as follows:

 

	
Annual ROIC for        +Annual ROIC for            +Annual ROIC for           
    
	
3
    

 

“Annual ROIC” for a calendar year shall be the percentage determined as follows:

 

	
Net Income After Tax + After Tax Interest Expense
    	
 x 100
    
	
Average Debt + Average Total Shareholders’ Equity
    

 

Annual ROIC for a calendar year shall be calculated on a consolidated basis with the Corporation’s consolidated subsidiaries for U.S. financial reporting purposes and shall be determined on the basis of the Corporation’s audited financial statements for such year prepared in accordance with United States generally accepted accounting principles, subject to any adjustments as determined by the Plan Administrator that are needed to accurately reflect the performance of the Corporation (e.g., because of changes in accounting rules, extraordinary gains from the sale of the Corporation’s assets, unforeseen extraordinary events affecting the Corporation or any of its business operations, or other similar or dissimilar circumstances occurring during the Performance Period that may or may not have been beyond the control of the Corporation).

 

“Average Debt” for a calendar year means the average of the Debt at the beginning of the year and Debt at the end of the year.

 

5

 

“Debt” means long-term debt plus notes payable and current portion of the long term debt, as determined in accordance with United States generally accepted accounting principles, and is intended to include potential convertible debt and other hybrid debt issued in the future.

 

Unless otherwise defined above or in the Notice of Award of Performance Shares to which this Schedule is attached, capitalized terms used in this Schedule shall be construed in accordance with accounting principles generally accepted in the Unites States.

 

TSR MODIFIER

 

The number of shares which are to vest based on attainment of the Performance Goal shall be modified based on the percentile level at which the total shareholder return to the Corporation’s shareholders over the Performance Period stands relative to the total shareholder return realized for that period by the companies comprising the S&P Transportation Select Industry Index and S&P MidCap 400 Index (with each index weighted 50%) as follows:

 

TSR Modifier and Payout Adjustment

 

	
Relative TSR Performance
    	
 
    	
TSR Modifier Adjustment
    
	
>         th percentile
    	
 
    	
%
    
	
      th   percentile
    	
 
    	
%
    
	
<         th percentile
    	
 
    	
%
    

 

Adjustment for TSR Modifier between performance levels will be interpolated on a straight-line basis.

 

Effect of TSR Modifier

 

	
ROIC Performance
    	
 
    	
TSR Performance
    
	
Performance
   Level
    	
 
    	
Performance as
   % of Target
    	
 
    	
Payout as % of
   Target
    	
 
    	
TSR Modifier
    	
 
    	
Total Payout as
   % of Target
    
	
Extraordinary
    	
 
    	
%
    	
 
    	
%
    	
 
    	
-    % to +     %
    	
 
    	
-    % to +     %
    
	
Target
    	
 
    	
%
    	
 
    	
%
    	
 
    	
-    % to +     %
    	
 
    	
-    % to +     %
    
	
Threshold
    	
 
    	
%
    	
 
    	
%
    	
 
    	
-    % to +     %
    	
 
    	
-    % to +     %
    

 

For such purpose, the total shareholder return (“TSR”) for the Corporation’s stockholders shall be determined pursuant to the following formula:

 

6

 

	
TSR   =
    	
(Ending Stock Price* - Beginning Stock Price**) + Reinvested   Dividends***
    	
 
    
	
 
    	
Beginning Stock Price**
    	
 
    

 

*  Ending Stock Price is the average daily closing price per share of the Common Stock calculated for the last thirty (30) days within the Performance Period.

 

**  Beginning Stock Price is the average daily closing price per share of the Common Stock calculated for the thirty (30)-day period immediately preceding the commencement date of the Performance Period.

 

*** Reinvested Dividends shall be calculated by multiplying (i) the aggregate number of shares (including fractional shares) of Common Stock that could have been purchased during the Performance Period had each cash dividend paid on a single share of Common Stock during that period been immediately reinvested in additional shares (or fractional shares) of Common Stock at the closing price per share of the Common Stock on the applicable dividend payment date by (ii) the average daily closing price per share of Common Stock calculated for the last thirty (30) days within the  Performance Period.

 

Each of the foregoing amounts shall be equitably adjusted for stock splits, stock dividends, recapitalizations and other similar events affecting the shares in question without the issuer’s receipt of consideration.

 

For each company in the S&P Transportation Index and S&P MidCap 400 Index, the TSR with respect to its common stock shall be calculated in the same manner as for the Common Stock.

 

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