Document:

exv10w1

 

EXHIBIT 10.1

ARKANSAS BEST CORPORATION

SUPPLEMENTAL BENEFIT PLAN

Amended and Restated Effective as of January 1, 2005

 

ARKANSAS BEST CORPORATION

SUPPLEMENTAL BENEFIT PLAN

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Page
	Article I. Establishment and Purpose	 	 	1	 
	 	 	 	1.1	 	 	Establishment	 	 	1	 
	 	 	 	1.2	 	 	Purpose	 	 	1	 
	Article II. Definitions and Construction	 	 	1	 
	 	 	 	2.1	 	 	Definitions.	 	 	1	 
	 

	 	 	 	 	 	(a)
	 	“Act”
	 	 	1	 
	 

	 	 	 	 	 	(b)
	 	“Administrator”
	 	 	1	 
	 

	 	 	 	 	 	(c)
	 	“Alternative Earnings Rate”
	 	 	1	 
	 

	 	 	 	 	 	(d)
	 	“Basic Benefit”
	 	 	2	 
	 

	 	 	 	 	 	(e)
	 	“Benefit”
	 	 	2	 
	 

	 	 	 	 	 	(f)
	 	“Beneficiary”
	 	 	2	 
	 

	 	 	 	 	 	(g)
	 	“Board of Directors”
	 	 	2	 
	 

	 	 	 	 	 	(h)
	 	“Business Day”
	 	 	2	 
	 

	 	 	 	 	 	(i)

(j)
	 	“Category I Participant”

“Category II Participant”
	 	 	2

2	 
	 

	 	 	 	 	 	(k)
	 	“Change in Control”
	 	 	2	 
	 

	 	 	 	 	 	(l)
	 	“Code”
	 	 	3	 
	 

	 	 	 	 	 	(m)
	 	“Company”
	 	 	4	 
	 

	 	 	 	 	 	(n)
	 	“Current Qualified Plan”
	 	 	4	 
	 

	 	 	 	 	 	(o)
	 	“Deferral Account”
	 	 	4	 
	 

	 	 	 	 	 	(p)
	 	“Deferral Election”
	 	 	4	 
	 

	 	 	 	 	 	(q)
	 	“Deferred Benefit”
	 	 	4	 
	 

	 	 	 	 	 	(r)
	 	“Deferred Participant”
	 	 	4	 
	 

	 	 	 	 	 	(s)
	 	“Deferred Payment(s)”
	 	 	4	 
	 

	 	 	 	 	 	(t)
	 	“Deferred Payment Date”
	 	 	4	 
	 

	 	 	 	 	 	(u)
	 	“Disability”
	 	 	4	 
	 

	 	 	 	 	 	(v)
	 	“Earnings”
	 	 	4	 
	 

	 	 	 	 	 	(w)
	 	“Election Form”
	 	 	4	 
	 

	 	 	 	 	 	(x)
	 	“Eligible Deferral Participant”
	 	 	5	 
	 

	 	 	 	 	 	(y)
	 	“Final Election Date”
	 	 	5	 
	 

	 	 	 	 	 	(z)
	 	“Installment Payment”
	 	 	5	 
	 

	 	 	 	 	 	(aa)
	 	“Investment Election”
	 	 	5	 
	 

	 	 	 	 	 	(bb)
	 	“Lump Sum”
	 	 	5	 
	 

	 	 	 	 	 	(cc)
	 	“Money Market Fund”
	 	 	5	 
	 

	 	 	 	 	 	(dd)
	 	“Participant”
	 	 	5	 
	 

	 	 	 	 	 	(ee)
	 	“Plan”
	 	 	5	 
	 

	 	 	 	 	 	(ff)
	 	“Plan Year”
	 	 	5	 
	 

	 	 	 	 	 	(gg)
	 	“Post-2004 Deferrals”
	 	 	5	 
	 

	 	 	 	 	 	(hh)
	 	“Pre-2005 Deferrals”
	 	 	6	 
	 

	 	 	 	 	 	(ii)
	 	“Qualified Plan”
	 	 	6	 

i

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Page
	 

	 	 	 	 	 	(jj)
	 	“Rules of General Application”
	 	 	6	 
	 

	 	 	 	 	 	(kk)
	 	“Separates” or “Separation”
	 	 	6	 
	 

	 	 	 	 	 	(ll)
	 	“Special Restored Compensation”
	 	 	6	 
	 

	 	 	 	 	 	(mm)
	 	“Specified Employee”
	 	 	6	 
	 

	 	 	 	 	 	(nn)
	 	“Statutory Limitations”
	 	 	6	 
	 

	 	 	 	 	 	(oo)
	 	“Third-Party Recordkeeper”
	 	 	6	 
	 

	 	 	 	 	 	(pp)
	 	“VSP”
	 	 	6	 
	 	 	 	2.2	 	 	Gender and Number	 	 	6	 
	 	 	 	2.3	 	 	Severability	 	 	7	 
	 	 	 	2.4	 	 	Applicable Law	 	 	7	 
	 	 	 	2.5	 	 	Plan Not an Employment Contract	 	 	7	 
	Article III. Participation	 	 	7	 
	 	 	 	3.1	 	 	Participation	 	 	7	 
	Article IV. Benefit and Payment	 	 	7	 
	 	 	 	4.1	 	 	Benefit	 	 	7	 
	 	 	 	4.2	 	 	Payment	 	 	9	 
	 	 	 	4.3	 	 	Funding	 	 	9	 
	 	 	 	4.4	 	 	Tax Withholding	 	 	9	 
	 	 	 	4.5	 	 	Benefits are Not Compensation	 	 	9	 
	 	 	 	4.6	 	 	Nontransferability	 	 	10	 
	Article V. Deferrals And Investments	 	 	10	 
	 	 	 	5.1	 	 	Elections	 	 	10	 
	 	 	 	5.2	 	 	Establishment of Deferral Account	 	 	10	 
	 	 	 	5.3	 	 	Earnings Added to Deferral Accounts	 	 	10	 
	 	 	 	5.4	 	 	Investment Direction	 	 	10	 
	 	 	 	5.5	 	 	No Guaranty of Deferral	 	 	11	 
	 	 	 	5.6	 	 	Statements	 	 	11	 
	Article VI. Distributions to Deferred Participants	 	 	11	 
	 	 	 	6.1	 	 	Form of Deferred Payments	 	 	11	 
	 	 	 	6.2	 	 	Installment Payments	 	 	12	 
	 	 	 	6.3	 	 	Change in Control	 	 	12	 
	 	 	 	6.4	 	 	Hardship Distribution	 	 	12	 
	 	 	 	6.5	 	 	Accelerated Withdrawal	 	 	13	 
	Article VII. Administration	 	 	13	 
	 	 	 	7.1	 	 	Administration	 	 	13	 
	 	 	 	7.2	 	 	Finality of Determination	 	 	13	 
	 	 	 	7.3	 	 	Expenses	 	 	13	 
	 	 	 	7.4	 	 	Indemnification and Exculpation	 	 	13	 
	Article VIII. Merger, Amendment, and Termination	 	 	14	 
	 	 	 	8.1	 	 	Merger, Consolidation	 	 	14	 
	 	 	 	8.2	 	 	Claims Procedure	 	 	14	 
	 	 	 	8.3	 	 	Securities Laws	 	 	15	 
	 	 	 	8.4	 	 	Amendment and Termination	 	 	15	 

ii

 

ARKANSAS BEST CORPORATION

SUPPLEMENTAL BENEFIT PLAN

AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2005

Article I.  Establishment and Purpose

     1.1 Establishment. Arkansas Best Corporation established the Arkansas Best
Corporation Supplemental Benefit Plan (the “Plan”) effective as of January 1, 1988 (the “Effective
Date”), and hereby amends and restates it (except as otherwise herein provided) as of January 1,
2005.

     1.2 Purpose. The purpose of this Plan is to provide (i) a restoration of benefits of
Category I Participants which were lost under the Qualified Plan (x) because of amendments which
were adopted, and Statutory Limitations imposed, subsequent to 1985, and (y) by reason of voluntary
contributions to the VSP; and (ii) a restoration of benefits of Category II Participants which were
lost under the Current Qualified Plan solely by reason of voluntary contributions to the VSP.

          The purpose of this amendment and restatement of the Plan is to comply with the provisions of
the American Jobs Creation Act of 2004 (the “Act”) in order to avoid immediate taxation of amounts
deferred hereunder, and the Plan will be interpreted accordingly. With respect to Pre-2005
Deferrals, the Plan shall be interpreted so as to avoid having such Pre-2005 Deferrals subject to
the Act.

          Notwithstanding anything herein to the contrary, (i) the Plan shall be closed to new
Participants from and after December 16, 2005; (ii) benefits payable to existing Category II
Participants shall only take into account amounts deferred under the VSP (as defined below) on or
before December 31, 2006; and (iii) the Benefits payable hereunder shall be subject to the maximum
caps set forth in Exhibit B hereto.

Article II. Definitions and Construction

     2.1 Definitions. Whenever used in the Plan, the following terms shall have the
meanings set forth below unless the context otherwise requires, and when the defined meaning is
intended, the term is capitalized.

     (a) “Act” shall mean the American Jobs Creation Act of 2004, as it may be amended, and
any guidance issued thereunder by the Internal Revenue Service and the Department of the
Treasury.

     (b) “Administrator” shall mean the Company, or a person(s) appointed by the Company,
and without limitation the Administrator shall be primarily responsible for the
administration of the Deferral Accounts and matters relating thereto.

     (c) “Alternative Earnings Rate” shall mean the Earnings of the Money Market Fund for
the period of reference.

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     (d) “Basic Benefit” shall mean the amount determined under Section 4.1 at the time of
reference.

     (e) “Benefit” shall mean the Basic Benefit and the Deferred Benefit, collectively;
provided, further, that where it is necessary or appropriate to distinguish between those
two classes of Benefits, reference shall be made to the specific class. However,
notwithstanding anything to the contrary herein, a Participant’s combined Basic Benefit and
Deferred Benefit shall in no event ever exceed the maximum Benefit for such Participant’s
employment classification as specified in Exhibit B hereto.

     (f) “Beneficiary” means the person or persons designated by the Participant pursuant to
Section 4.2 hereof; provided, further, and without limitation, that references herein to
Participant shall be deemed to be references to Beneficiary after the death of the
Participant and before all Benefits are paid to the Beneficiary, except that the Beneficiary
shall have no right to deferral, and instead will receive a lump sum distribution of all
Benefits hereunder within a reasonable time subsequent to the death of the Participant.

     (g) “Board of Directors” means the board of directors of the Company.

     (h) “Business Day” shall mean a day on which the New York Stock Exchange is operating.

     (i) “Category I Participant” shall mean each employee of the Company who is listed on
Exhibit A. Notwithstanding anything herein to the contrary, only those individuals who were
Category I Participants as of December 16, 2005 shall be eligible to participate in the Plan
as a Category I Participant.

     (j) “Category II Participant” shall mean each employee of the Company who is eligible
to participate in the VSP, but who is not a Category I Participant; provided, further, that
if a Category II Participant becomes a Category I Participant on or before December 16,
2005, his Benefits hereunder shall be calculated as though he had been a Category I
Participant from his most recent date of hire by the Company. However, any benefits earned
by a Category II Participant prior to such Category II Participant’s conversion to a
Category I Participant shall remain 100% vested and will not be subject to the vesting
schedule described in Section 4.1(c) of the Plan. Notwithstanding anything herein to the
contrary, only those individuals who were Category II Participants as of December 16, 2005
shall be eligible to participate in this Plan as a Category II Participant.

     (k) “Change in Control” shall mean the earliest date on which any of the following
events shall occur:

     (i) there shall be consummated any consolidation or merger of the Company in
which the Company is not the continuing or surviving corporation or pursuant to
which the Company’s common stock would be converted into cash, securities, or other
property, or any lease, exchange or other transfer (excluding transfer by way of
pledge or hypothecation), in one transaction or a series of related transactions, of
all, or substantially all, of the assets of the Company, other

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than any such consolidation, merger, lease, exchange or transfer in which the
Company, or any of its affiliates, or the holders of the Company’s common stock
immediately prior to any such actions have at least a fifty-one percent (51%)
ownership of the surviving corporation after the consolidation or merger of the
entity to which such assets are transferred, leased, exchanged or otherwise
transferred.

     (ii) the shareholders of the Company approve any plan or proposal for the
liquidation or dissolution of the Company.

     (iii) any “person” (as such is defined in Section 3(a)(9) or Section 13(d)(3)
under the Securities Exchange Act of 1934 [the “1934 Act”]) or any “group” (as such
term is used in Rule 13d-5 promulgated under the 1934 Act) other than the Company or
any successor of the Company or any subsidiary of the Company or any employee
benefit plan of the Company or any subsidiary (including such plan’s trustee),
becomes a beneficial owner for purposes of Rule 13d-3 promulgated under the 1934
Act, directly or indirectly, of securities of the Company represented thirty-five
percent (35%) or more of the Company’s then outstanding securities having the right
to vote in the election of directors.

     (iv) if at any time the Continuing Directors then serving on the Board of
Directors cease for any reason to constitute at least a majority thereof.

“Continuing Director” shall mean a Director of the Company who either (A) is a
Director of the Company on the date hereof, or (B) whose initial appointment or
initial nomination for election or election by the Company’s shareholders was
approved by a majority of the Continuing Directors (including any successors elected
pursuant to this Subsection (iv)) then on the Company Board of Directors.

     (v) any person or group (as defined in Subsection (iii) above) commences a
tender offer or exchange offer for all or less than all of the share of the
Company’s issued and outstanding common stock that would result in, upon the
consummation of such offer, the person or group, together with all of its or their
affiliates, beneficially owning 25% or more of the Company’s common stock, and which
offer does not include a binding written commitment by the offeror to purchase any
            shares that are not tendered or exchanged for the same cash consideration (or in the
event of any exchange offer, the cash equivalent of the fair market value of the
securities or their property offered in the exchange, as determined by the Company’s
Board of Directors in its sole discretion) within 90 days following the consummation
of the tender or exchange offer; provided, however, that if the tender offer or
exchange offer that would have otherwise resulted in a Change in Control is
canceled, terminated withdrawn or otherwise not consummated, such offer shall be
deemed never to have been made and no Change in Control shall be deemed to have
occurred.

     (l) “Code” shall mean the Internal Revenue Code of 1986, as amended.

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     (m) “Company” means Arkansas Best Corporation

     (n) “Current Qualified Plan” shall mean the Qualified Plan as amended and/or restated,
and in effect, at each date of reference.

     (o) “Deferral Account” shall mean the account to which each Eligible Deferral
Participant’s Basic Benefit is added as a result of such Eligible Deferral Participant’s
Deferral Election.

     (p) “Deferral Election” shall mean the Election Form filed by an Eligible Deferral
Participant to defer the payment of some or all of his Basic Benefit to a specified Deferred
Payment Date(s).

     (q) “Deferred Benefit” shall mean the amount added to a Deferred Participant’s Deferral
Account at each time of reference.

     (r) “Deferred Participant” shall mean an Eligible Deferral Participant who has filed a
timely Deferral Election form, and has not been paid all of his Deferred Benefit at the time
of reference; provided, further, without limitation, that a Deferred Participant shall also
be either a Category I Participant or a Category II Participant.

     (s) “Deferred Payment(s)” shall mean payment(s) of a Deferred Participant’s Deferred
Benefit in the form selected by the Deferred Participant.

     (t) “Deferred Payment Date” shall mean, with respect to each Deferred Participant, the
date as of which his Deferred Payment of reference is made.

     (u) “Disability” shall, with respect to Post-2004 Deferrals, be deemed to occur if (a)
the Administrator determines that the Participant is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which
can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months, or (b) the Participant is, by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be expected to
last for a continuous period of not less than 12 months, receiving income replacement
benefits for a period of not less than 3 months under an accident and health plan covering
the employees of the Company.

     (v) “Earnings” shall mean the amounts notationally added or deducted from a Deferred
Participant’s Deferral Account (including, without limitation, unrealized appreciation or
depreciation) based on his Measurement Preferences as determined by the Administrator under
Rules of General Application.

     (w) “Election Form” shall mean, collectively, a Deferral Election form, and an
Investment Election form; provided, further, that where it is necessary or appropriate to
distinguish between those two types of forms, reference shall be made to the specific form.

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     (x) “Eligible Deferral Participant” shall mean each Participant (i) who Separates after
age 55 and who, at such date of Separation, has completed 10 or more “Years of Vesting
Service” as defined in the Qualified Plan, (ii) whose Separation is not by reason of death,
and (iii) whose Basic Benefit exceeds $5,000.

     (y) “Final Election Date” shall mean, subject to Section 5.1, (i) in the case of the
deferral of an Eligible Deferral Participant’s Basic Benefit, the later of (x) January 15,
2000, and (y) the 365th day prior to such Eligible Deferral Participant’s date of
Separation; provided, further, that where a Participant suffers an involuntary Separation,
as determined by the Administrator in its sole discretion, the final filing date shall be
the date described in (y) above if a Deferral Election form is filed on that date, and
otherwise shall be the first date thereafter (but prior to Separation) on which a Deferral
Election form is filed, and (ii) in the case of a Deferred Participant with respect to any
Deferred Payment(s), the 365th day prior to the Deferred Payment Date of such
Deferred Payment(s), in either case, provided that payments do not commence prior to 12
months after the date the Deferral Election form is filed.

     (z) “Installment Payment” shall mean an annual distribution, in cash, of a Deferred
Participant’s Deferred Benefit over a period of years as provided for in Sections 6.1 and
6.2.

     (aa) “Investment Election” shall mean the Election Form filed by a Deferred Participant
on which he selects his or her Measurement Preferences, as described in Section 5.4.

     (bb) “Lump Sum” shall mean a single distribution, in cash, of a Participant’s Basic
Benefit, or Deferred Benefit, or both.

     (cc) “Money Market Fund” shall mean the fund which is a Measurement Preference, which
is composed primarily of debt instruments, and which the Administrator determines to have
the least risk to principal of all of the Measurement Preferences.

     (dd) “Participant” means, individually and collectively, a Category I Participant and a
Category II Participant; provided, further, that where it is necessary or appropriate to
distinguish between those two classes of Participant, reference shall be made to the
specific class.

     (ee) “Plan” means this Arkansas Best Corporation Supplemental Benefit Plan, as amended
from time to time.

     (ff) “Plan Year” means the 12-month period beginning January 1 and ending December 31.

     (gg) “Post-2004 Deferrals” shall mean that portion of each Participant’s Basic Benefit
that is not Pre-2005 Deferrals, including any such amounts that are deferred under Article V
of the Plan and any Earnings thereon.

5

 

     (hh) “Pre-2005 Deferrals” shall mean that portion of each Participant’s Basic Benefit
that was both “earned and vested” (within the meaning of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”)) as of December 31, 2004 (calculated in
accordance with Section 409A of the Code and any Treasury Regulations promulgated
thereunder), including any such amounts that are deferred under Article V of the Plan and
any Earnings thereon.

     (ii) “Qualified Plan” means the Arkansas Best Corporation Retirement Plan (a/k/a
Arkansas Best Corporation Pension Plan) as amended and restated effective January 1, 1985,
and as amended from time to time to the extent such amendments increase benefits.

     (jj) “Rules of General Application” shall mean those rules promulgated by the
Administrator, in its sole discretion, from time to time with respect to the matter of
reference, but which will be applied in a similar manner to Participants similarly situated.

     (kk) “Separates” or “Separation” or similar shall mean a Participant’s termination of
employment with the Company or any affiliate of the Company for any reason (including death
or disability); provided that, with respect to Post-2004 Deferrals, such terms shall have
such meaning as provided under the Act.

     (ll) “Special Restored Compensation” shall mean, the amount, if any, of the
compensation of a Category II Participant (i) which is deferred in accordance with the terms
of the VSP on or before December 31, 2006, and (ii) which, if not for such deferral, would
have increased such Category II Participant’s Average Monthly Compensation as defined in the
Current Qualified Plan at the time of reference. Compensation deferred in accordance with
the VSP on or after January 1, 2007 shall not be taken into account in determining a
Category II Participant’s Benefit.

     (mm) “Specified Employee” shall mean a “specified employee” of the Company as defined
in the Act.

     (nn) “Statutory Limitations” shall mean (i) the coverage and benefit requirements the
Qualified Plan must satisfy in order to comply with the nondiscrimination requirements of
the Code, and (ii) the compensation and benefits limitations which are imposed on the
Qualified Plan under Section 401(a)(17) and Section 415 of the Code, and the regulations
promulgated thereunder.

     (oo) “Third-Party Recordkeeper” shall mean the person or entity selected by the
Administrator to maintain the records necessary to the administration of the Investment
Elections.

     (pp) “VSP” shall mean the Arkansas Best Corporation Voluntary Savings Plan, as now or
hereafter in effect.

     2.2 Gender and Number. Except when otherwise indicated by the context, any masculine
terminology when used in the Plan shall also include the feminine gender and the neuter gender, and
the definition of any term in the singular shall also include the plural.

6

 

     2.3 Severability. In the event any provision of the Plan shall be held invalid or
illegal for any reason, any illegality or invalidity shall not affect the remaining parts of the
Plan, but the Plan shall be construed and enforced as if the illegal or invalid provision had never
been inserted, and the Company shall have the privilege and opportunity to correct and remedy such
questions of illegality or invalidity by amendment as provided in the Plan.

     2.4 Applicable Law. This Plan shall be governed and construed in accordance with the
laws of the State of Arkansas.

     2.5 Plan Not an Employment Contract. This Plan is not an employment contract. It
does not give to any person the right to be continued in employment, and all employees remain
subject to change of salary, transfer, change of job, discipline, layoff, discharge, or any other
change of employment status.

Article III. Participation

     3.1 Participation. Participation in this Plan shall be limited to those persons (i)
who are Participants on December 16, 2005.

Article IV. Benefit and Payment

     4.1 Benefit.

     (a) Benefits of Category I Participants. The Basic Benefits payable to a
Category I Participant under this Plan shall be equal to the actuarial equivalent of the
excess, if any, of (i) the benefits which would be payable to the Category I Participant
under the Qualified Plan if the provisions of the Qualified Plan were administered (x)
without regard to the maximum benefit limitations of Section 415 of the Code, and (y)
without regard to the limitation imposed by Section 401(a)(17)of the Code, over (ii) the
benefits which are actually payable to such person under the Current Qualified Plan, with
the benefits in both (i) and (ii) being computed as of the date the Category I Participant
Separates, but in no event, when combined with the Participant’s Deferred Benefit, more than
the maximum amount specified in Exhibit B hereto for such Participant’s employment
classification. Without limitation, the amount described in “(i)” shall be determined as if
the Qualified Plan’s definition of Compensation were amended by (iii) deleting all direct or
indirect references to the provisions of Section 401(a)(17) of the Code, (iv) adding thereto
a provision which would cause the Qualified Plan’s definition of Compensation to include all
amounts which a Category I Participant shall contribute to the VSP as a Compensation
Deferral Contribution (as defined in the VSP); and (v) applying the Qualified Plan’s
definition of Compensation so as to reflect the historical intent and practice of excluding
all income which the Company considered as not subject to FICA tax, including without
limitation, the exclusion of all income from the exercise of stock options and vesting of
restricted stock. Basic Benefits payable under this Plan shall be computed in accordance
with the foregoing and with the objective that, subject to the maximum Benefit caps
specified in Exhibit B hereto, the Category I Participant should receive under this Plan and
the Current Qualified Plan that total amount which would have been payable to the Category I
Participant solely under

7

 

the Qualified Plan had Section 415 and Section 401(a)(17) of the Code not been
applicable thereto, and had he not elected to make Compensation Deferral Contribution(s) as
defined in the VSP; provided, however, that it is not intended that there be any service or
compensation credited under more than one supplemental benefit plan and no Category I
Participant shall receive Basic Benefits from this Plan with respect to service and
compensation to the extent, as determined by the Administrator in its sole discretion, he
receives benefits with respect thereto under the ABF Freight System, Inc. Supplemental
Benefit Plan or the Data-Tronics Supplemental Benefit Plan.

     (b) Benefit of Category II Participants. The Basic Benefits payable to a
Category II Participant under this Plan shall be equal to the actuarial equivalent of the
excess, if any, of the benefits which would be payable to the Category II Participant (i)
under the Current Qualified Plan, if the Current Qualified Plan’s definition of Compensation
(without limitation, determined by the application described in Section 4.1 (a)(v)) included
the Special Restored Compensation, if any, of such Category II Participant, over (ii) the
benefits which are actually payable to such Category II Participant under the Current
Qualified Plan, with both benefits being computed as of the date the Category II Participant
Separates, but in no event, when combined with the Participant’s Deferred Benefit, more than
the maximum amount specified in Exhibit B hereto for such Participant’s employment
classification. Basic Benefits of each Category II Participant payable under this Plan
shall be computed in accordance with the foregoing, and with the objective that, subject to
the maximum Benefit caps specified in Exhibit B hereto, the Category II Participant should
receive under this Plan and the Current Qualified Plan that total amount which would have
been payable to the Category II Participant solely under the Current Qualified Plan
(calculated, without limitation, by recognizing and applying the limitations of Section 415
and Section 401(a)(17) of the Code) if he had not incurred a Compensation Deferral
Contribution as defined in the VSP on or before December 31, 2006; provided, however, that
it is not intended that there be any Special Restored Compensation credited under more than
one supplemental benefit plan and no Category II Participant shall receive Basic Benefits
from this Plan to the extent he receives benefits under the ABF Freight System, Inc.
Supplemental Benefit Plan or the Data-Tronics Supplemental Benefit Plan. In addition,
amounts contributed to the VSP on or after January 1, 2007, shall not be taken into account
in determining a Category II Participant’s Basic Benefit.

     (c) Vesting Schedule. Subject to the following provisions of this subsection,
the benefits payable to any Participant who becomes a Category I Participant after January
22, 2003, shall be subject to the following vesting schedule:

1.67% vesting for each month of participation as a

Category I Participant in the Plan

The determination of a Participant’s vested benefits shall be calculated on a monthly basis
for a period up to sixty (60) months (with the last month equal to 1.47%), provided such
Participant continues to be a Category I Participant in the Plan. The vesting schedule
shall not apply to Category I Participants who became Category I Participants on or prior to
January 22, 2003, such Participants shall be 100% vested.

8

 

This vesting schedule shall not apply to benefits earned by a Category II Participant;
provided however, that in the event a Category I Participant becomes a Category II
Participant, no further vesting in his or her Category I benefits shall occur. In the event
a Category II Participant becomes a Category I Participant, all benefits earned while a
Category II Participant shall remain 100% vested; however, any benefits earned as a Category
I Participant shall be subject to the vesting schedule described above.

     4.2 Payment. Except as provided with respect to Deferred Participants (see Sections
6.1 and 6.2), any Basic Benefit payable hereunder shall be paid to a Participant in the form of a
single Lump Sum cash payment within a reasonable time after his date of Separation; provided,
however, that if a Participant is a Specified Employee and Participant’s Separation did not result
from Participant’s death or Disability, Participant’s Post-2004 Deferrals may not be distributed
until at least 6 months following his date of Separation. Any Participant shall have the right
under this Plan, at any time prior to his death, to designate a Beneficiary, which may be different
than the Beneficiary named under the Current Qualified Plan, for purposes of receiving Benefits
under this Plan payable after his death, or to revoke or change such Beneficiary designation. In
the event that a Participant wishes to exercise such right, he shall make his Beneficiary
designation, revocation or change in such manner as the Administrator shall prescribe. Such
designation, revocation or change is only for purposes of the payment of death benefits that may be
payable under this Plan. The designation of a different beneficiary for purposes of this Plan
shall only affect the identity of the person or persons entitled to receive death benefits under
this Plan; it shall not affect the amount of Benefits payable under this Plan, nor shall it affect
the time or the form in which Benefits are payable hereunder. Moreover, if the Participant does
not exercise his right to designate a different Beneficiary for purposes of this Plan, the
Participant’s Beneficiary under the Qualified Plan shall also be his Beneficiary under this Plan.
Without limiting the generality of the foregoing, upon the death of a Deferred Participant, his or
her Deferred Benefits shall be paid in accordance with the provisions of this paragraph.

     4.3 Funding. All amounts paid under this Plan shall be paid in cash from the general
assets of the Company or from such funding vehicle, if any, as the Company shall establish for this
purpose; provided, further, that all assets paid into any such funding vehicle shall be subject to
the terms, conditions, and limitations set forth in the document(s) establishing such funding
vehicle but which, in any event, shall at all times, prior to payment to a Participant, remain
subject to the general creditors of the Company. The benefits restored hereunder, including any
Deferred Benefits, shall be reflected on the accounting records of the Company. Nothing contained
in this Plan, and no action taken pursuant to its provisions, shall create or be construed to
create a trust or a fiduciary relationship of any kind between the Company and a Participant or
other person. Notwithstanding anything herein or in any trust agreement to the contrary, in no
even shall (i) assets of the Company or any affiliate be set aside or reserved (directly or
indirectly) in a trust or transferred to such a trust for purposes of paying deferred amounts and
earnings thereon for an “applicable covered employee” (as defined in Section 409A(b)(3)(D)(1) of
the Code) under the plan during any “restricted period” (as defined in Section 409A(b)(3)(B) of the
Code), or (ii) any assets of the Company, any affiliate or any trust described in this paragraph
become restricted to the provision of benefits under the Plan in connection with a “restricted
period” (as defined in Section 409A(b)(3)(B) of the Code); in each case, unless otherwise permitted
under Section 409A(b)(3) of the Code without the imposition of the additional tax set forth in
Section 409A(a)(1)(B) of the Code.

9

 

     4.4 Tax Withholding. The Company may withhold or cause to be withheld from any
Benefit payment any federal, state, or local taxes required by law to be withheld with respect to
such payment and such sum as the Company may reasonably estimate as necessary to cover any taxes
for which the Company may be liable and which may be assessed with regard to such payment.

     4.5 Benefits are Not Compensation. No Benefit accrued or payable hereunder shall be
deemed compensation to the Participant for the purposes of computing benefits to which such
Participant may be entitled under the Qualified Plan, the Current Qualified Plan, or any other
retirement plan or arrangement of the Company for the benefit of its employees; provided, further,
that in the event of a conflict with this Plan, the terms of each retirement plan or arrangement
shall control.

     4.6 Nontransferability. A Participant shall have no rights by way of anticipation or
otherwise to assign or otherwise dispose of any interest under this Plan, nor shall rights be
assigned or transferred by operation of law other than by will or the laws of distribution or
between spouses or incident to a divorce within the meaning of Section 1041 of the Code or any
successor provision (provided any such permitted transfer shall remain subject to all other
provisions of this Plan).

Article V.
 Deferrals And Investments

     5.1 Elections. Each Eligible Deferral Participant may file a Deferral Election form
with the Administrator and become a Deferred Participant, provided such filing is made prior to his
Final Election Date under Section 2(y)(i). Notwithstanding anything herein to the contrary, with
respect to Post-2004 Deferrals, each Participant who desires to defer all or a portion of the
Participant’s Basic Benefit must file an initial Deferral Election form with the Administrator by
December 31, 2007, or, if later, 30 days following the date the individual first becomes a
Participant in the Plan; provided, however, that (i) an initial Deferral Election filed in the
calendar year 2006 may not (A) defer the distribution of payments that would otherwise be payable
in 2006, or (B) accelerate any payments into calendar year 2006 that would not have otherwise been
made in 2006 and (ii) an initial Deferral Election filed in the calendar year 2007 may not (A)
defer the distribution of payments that would otherwise be payable in 2007, or (B) accelerate any
payments into calendar year 2007 that would not have otherwise been made in 2007. In addition, a
Participant may file subsequent Deferral Election forms prior to the Final Election Date; provided,
however, that with respect to Post-2004 Deferrals, any subsequent Deferral Election, including any
Deferral Election made by a Deferred Participant with respect to Post-2004 Deferrals, (a) will not
be effective until 12 months following the date the new Deferral Election form is filed, (b) must
provide for the delay of the Deferral Payment Date for at least 5 additional years and (c) must not
provide for the accelerated payment of any portion of such Post-2004 Deferrals.

     5.2 Establishment of Deferral Account. The Administrator shall establish a Deferral
Account for each Deferred Participant, (i) to which shall be added the deferred portion of such
Deferred Participant’s Basic Benefit effective not less than thirty (30) days after his Separation,
(ii) to which shall be added (or deducted) Earnings, and (iii) from which shall be deducted
Deferred Payments.

10

 

     5.3 Earnings Added to Deferral Accounts. Earnings shall be added to each Deferral
Account based on the Deferred Participant’s Measurement Preference as shall be determined by the
Administrator in accordance with Rules of General Application.

     5.4 Investment Direction. Effective as of each Business Day, in accordance with Rules
of General Application, each Deferred Participant may select investments (“Measurement
Preferences”) from among the different investment alternatives which are made available by the
Administrator. No actual investments shall be made by Deferred Participants. The Measurement
Preferences are only for the purpose of determining the Company’s payment obligation under Article
VI and such Measurement Preferences do not control any actual investments made by the Company.

     A Deferred Participant may change his Measurement Preferences as of each Business Day by
filing an Investment Election form with the Administrator who will review and determine whether
such direction shall be forwarded, and if the Administrator elects to follow such direction, he
shall notify the Third Party Recordkeeper. If a Deferred Participant has not filed an Investment
Election form with respect to some or all of the amount in his Deferral Account, he will be deemed
to have elected for such amount to be invested in the Money Market Fund until the first Business
Day with respect to which he has designated an investment of such amount by filing an Investment
Election form.

     Notwithstanding the forgoing, the Administrator shall have the power to reject some or all of
the selections of Measurement Preferences selected by any one or more Deferred Participants by
advising the affected Deferred Participant(s) in writing of such rejection within five (5) days of
receiving an Investment Election form selecting or changing a Deferred Participant’s Measurement
Preferences. If the Administrator rejects as election, notwithstanding any provision hereof to the
contrary, the portion of such Deferral Account(s) subject to such rejection shall be credited with
the Alternative Earnings Rate until a Measurement Preference is approved.

     5.5 No Guaranty of Deferral. While the Company intends that the Deferral Election(s)
will result in the deferral of the imposition of a federal income tax on the funds added to a
Deferred Participant’s Deferral Account until such time as they actually shall be paid to such
Deferred Participant, nothing herein shall be construed as a promise, guarantee or other
representation by the Company of such tax effect nor, without limitation, shall the Company be
liable for any taxes, penalties or other amounts incurred by any Eligible Deferral Participant(s)
or Deferred Participant(s) in the event it is determined by applicable authorities that such
deferral was not accomplished, and each Participant who files an Election Form should consult his
or her own tax advisor(s) to determine the tax consequences in his or her specific case, and their
suitability for the filing of such Election Form.

     5.6 Statements. As soon as reasonably possible following each Plan Year, and at such
other times as determined by the Administrator under Rules of General Application, the
Administrator shall furnish each Deferred Participant with a statement setting forth (i) the amount
in his Deferral Account, (ii) the Earnings added or deducted from his Deferral Account for such
period, and (iii) any deducted charges to, or distributions from, his Deferral Account during such
period.

11

 

Article VI.
 Distributions to Deferred Participants

     6.1 Form of Deferred Payments. A Deferred Participant’s Deferred Payments may be made
or commenced at any time following the date on which they are first added to his Deferral Account,
and may be paid on the date(s) designated and either in a Lump Sum or in up to fifteen (15)
Installment Payments, in each case, as a Deferred Participant shall select on the Deferral Election
in effect on the Final Election Date preceding the Deferred Payment Date of reference. Subject to
Section 5.1, only the last Deferral Election form on or before such Final Election Date of
reference shall be effective.

     6.2 Installment Payments. If a Deferred Participant elects a Deferred Payment in the
form of Installment Payments, each installment shall be equal to either (i) a fixed amount each
year (not in excess of the balance of his Account at the time of the distribution), with the
remaining balance of his Deferral Account distributed as the final installment; (ii) the product of
(w) the balance of his Deferral Account on the payment date elected by the Participant in which
such payment is made, multiplied by (x) a fraction, the numerator of which is one (1), and the
denominator of which is the total number of installments originally elected less the number of
installments previously paid plus, in the case of the last Installment Payment, the remaining
amount in his Deferral Account, or (iii) such other method as shall be (y) requested by the
Deferred Participant on the Election Form of reference, and (z) approved by the Administrator in
his sole discretion. Installment Payments shall be paid at such time during the Plan Year as shall
be determined by the Administrator.

     6.3 Change in Control. Notwithstanding any other provision to the contrary, upon a
Change in Control, all Deferred Benefits hereunder (including, without limitation, Deferred
Benefits otherwise payable on a later Deferred Payment Date, including, again without limitation,
any remaining Installment Payments), shall be distributed to Deferred Participants in a Lump Sum as
soon as reasonably possible, but not more than thirty (30) days, after such Change in Control.
Notwithstanding the foregoing, at any time prior to the date of a Change in Control, a Deferred
Participant may elect to waive, with respect to Pre-2005 Deferrals (but not Post-2004 Deferrals),
the provisions of this Section 6.3 with respect to a designated Change in Control and continue to
retain his Benefits under the Plan as if such Change in Control had not occurred. In addition,
notwithstanding anything herein to the contrary, with respect to Post-2004 Deferrals, distributions
under this Section 6.3 shall only be made upon the occurrence of Change in Control that qualifies
as either a “change in the ownership” of the Company, a “change in effective control” of the
Company or a “change in the ownership of a substantial portion of the assets” of the Company, in
each case, as defined under the Act or Internal Revenue Service guidance issued thereunder.

     6.4 Hardship Distribution. Upon the Administrator’s determination (following petition
by a Deferred Participant) that a Deferred Participant has suffered a “severe financial hardship, “
the Administrator shall distribute to such Deferred Participant that portion of such Deferred
Participant’s Deferred Benefit as requested by such Deferred Participant and approved by the
Administrator, but in no event shall the Administrator approve a distribution which is greater than
is necessary to relieve the financial hardship. A “severe financial hardship” means an
unforeseeable event resulting from a sudden and unexplained illness or accident experienced by
either a Deferred Participant or his dependents, the loss of property due to casualty, or other

12

 

similar extraordinary and unforeseeable circumstances arising as a result of events beyond a
Deferred Participant’s control, which such Deferred Participant can not satisfy through available
or attainable assets. Without limitation, the definition of severe financial hardship does not
include the need to send a child to college or the desire to purchase a home. The amount of the
distribution will be limited to an amount necessary to satisfy the severe financial hardship plus
amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking
into account the extent to which the hardship is or may be relieved through reimbursement or
compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent
the liquidation would not itself cause severe financial hardship). The Administrator shall
evaluate the facts and circumstances of each hardship request. A Deferred Participant shall
receive a single lump-sum cash payment of the amount approved by the Administrator as soon as
possible following the Administrator’s approval.

     6.5 Accelerated Withdrawal. A Deferred Participant may request distribution of a
portion (not less than $1,000) of that portion of his Deferred Benefit that relates to Pre-2005
Deferrals before its Deferred Payment Date. If such request is approved by the Administrator,
which approval may be granted or withheld at the sole discretion of the Administrator, an amount
equal to ten percent (10%)of the amount withdrawn shall be deducted from such Deferred
Participant’s Deferral Account and irrevocably forfeited. The amount forfeited shall inure to the
benefit of the Company in the manner determined by the Administrator. Notwithstanding anything
herein to the contrary, this Section 6.5 shall not apply to Post-2004 Deferrals.

Article VII.
 Administration

     7.1 Administration. The Plan shall be administered by the Company, who may delegate
that responsibility to any one or more persons or committees. If more than one person is acting as
Administrator, a majority of the members shall constitute a quorum and the acts of a majority of
the members present, or acts approved in writing by a majority of the members without a meeting,
shall be the acts of the Administrator. The Administrator shall have the authority which is
expressly stated in this Plan as vested in the Administrator, and authority to make rules to
administer and interpret the Plan, to decide questions arising under the Plan, and to take such
other action as may be appropriate to carry out the purposes of the Plan.

     7.2 Finality of Determination. The determination of the Administrator as to any
disputed questions arising under this Plan, including questions of construction and interpretation
shall be final, binding, and conclusive upon all persons. Without limitation, the Board of
Directors’ determinations as to which persons are Category I Participants and Category II
Participants, the specific benefits which shall be restored to each such Participant, and the
vehicle, if any, to be used to fund such restorations of benefits shall be final, binding and
conclusive upon all persons.

     7.3 Expenses. The expenses of administering the Plan shall be borne by the Company.

     7.4 Indemnification and Exculpation. The members of the Board of Directors, the
Administrator, and officers, directors, and employees of the Company shall be indemnified and

13

 

held harmless by the Company against and from any and all loss, cost, liability, or expense
that may be imposed upon or reasonably incurred by them in connection with or resulting from any
claim, action, suit, or proceeding to which they may be a party or in which they may be involved by
reason of any action taken or failure to act under this Plan and against and from any and all
amounts paid by them in settlement (with the Company’s written approval) or paid by them in
satisfaction of a judgment in any such action, suit, or proceeding. The foregoing provision shall
not be applicable to any person if the loss, cost, liability, or expense is due to such person’s
gross negligence or willful misconduct.

Article VIII.
Merger, Amendment, and Termination

     8.1 Merger, Consolidation. In the event of a merger, consolidation, or acquisition
where the Company is not the surviving corporation, this Plan will terminate unless the successor
or acquiring corporation shall elect to continue and carry on the Plan; provided, however, that if
the transaction does not qualify as either a “change in the ownership” of the Company, a “change in
effective control” of the Company or a “change in the ownership of a substantial portion of the
assets” of the Company, in each case, as defined under the Act or Internal Revenue Service guidance
issued thereunder, such Plan termination shall not result in the acceleration of payment of any
Post-2004 Deferral unless otherwise permitted under the Act.

     8.2 Claims Procedure. The Administrator will make all determinations as to the rights
of any employee, Participant, Beneficiary or other person under the terms of this Plan. Any
employee, Participant, Beneficiary, or person claiming under them, may make a claim for benefits
under this Plan by filing written notice with the Administrator setting forth the substance of the
claim. If a claim is wholly or partially denied, the claimant will have the opportunity to appeal
the denial upon filing with the Administrator a written request for review within 60 days after
receipt of notice of denial. Denial of a claim or a decision on review will be made in writing the
Administrator and delivered to the claimant within 60 days after receipt of the claim or request
for review, unless special circumstances require an extension of time for processing the claim or
review, in which event the such person’s decision must be made as soon as possible thereafter but
not beyond an additional 60 days. If no action on an initial claim is taken within 120 days, the
claims will be deemed denied for purposes of permitting the claimant to proceed to the review
stage. The denial of a claim or the decision on review will specify the reasons for the denial or
decision , the pertinent Plan provisions upon which the denial or decision is based, a description
of any additional material or information necessary to perfect the claim and an explanation of,
\why such information is necessary, if applicable, and a description of the Plan’s review
procedures and the time limits applicable thereto, including a statement of the claimant’s rights
under Section 502(a) of ERISA following an adverse benefits determination on review. The denial of
a claim will also include a description of any additional material or information necessary for the
claimant to perfect the claim and an explanation of the claim review procedure herein described.
Within 60 days after receiving a denial, the claimant or his authorized representative may appeal
the decision by requesting a review by writing the Administrator.

     On appeal, the claimant may submit in writing any comments or issues with respect to the claim
and/or any additional documents or information not considered during the initial review and, upon
request and free of charge, the claimant will be provided access to and copies of all documents,
records and other information relevant to the claim. On appeal, the Administrator

14

 

will not give deference to the initial adverse benefit determination. A decision on appeal
will normally be given within 60 days after the receipt of the appeal. If special circumstances
warrant an extension as determined by the Administrator in its sole discretion, then the decision
will be made no later than 120 days after receipt of the appeal. If an extension is required, the
claimant will be provided a written notice of the extension that shall indicate the special
circumstances requiring the extension and the date by which the Administrator expects to render its
final decision. The Administrator’s decision on appeal shall be final and binding on all parties.
If a claimant’s appeal is denied in whole or in part, the notice of the decision on appeal shall
include the specific reasons for the denial and reference to the relevant Plan provisions on which
the denial was based, a statement that, upon request and free of charge, the claimant may review
and copy all documents, records and other information relevant to the claim for benefits and the
claimant’s rights under Section 502(a) of ERISA.

     The Administrator will serve as an agent for service of legal process with respect to the Plan
unless the Company, through written resolution, appoints another agent.

     8.3 Securities Laws. The Plan intends to comply with and be exempt under the
Securities Act of 1933, as amended. The Deferred Participants under the Plan are final purchasers
and not underwriters or conduits to other beneficial owners or subsequent purchasers.

     8.4 Amendment and Termination. The Company, through its Board of Directors, may in
its discretion amend the Plan from time-to-time. Specifically, termination of the Plan shall
require the approval of the Board of Directors of the Company. Notwithstanding anything herein to
the contrary, the Company hereby delegates to its executive officers the authority to make any
amendment (i) that does not increase the benefit costs of the Plan to the Company by more than 1%
of the Plan’s prior calendar year financial statement expense or (ii) that is necessary or
desirable in order to have it conform to the provisions and requirements of the Code, AJCA or any
other applicable law.

     In the event of an amendment or termination of the Plan pursuant to this Section or Section
8.1, the Benefits accrued hereunder, prior to the later of the date of adoption, or the effective
date, of the amendment shall continue to be an obligation of the Company, and shall be paid not
later than the date(s) provided hereunder immediately prior to the later of the date of adoption,
or the effective date, of the amendment; and provided further, without limitation, that, with
respect to Pre-2005 Deferrals and with respect to Post-2004 Deferrals to the extent permitted by
the Act without the imposition of any additional taxes or penalties under the Act, such amounts may
be paid earlier, with actuarial reductions based on the actuarial assumptions in the Qualified
Plan, in the sole discretion of the Administrator.

15

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be executed by its duly
authorized officers on this                      day of                                         , 2006.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	ARKANSAS BEST CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	ATTEST:

	 	 	 	Printed Name:	 	 	 	 
	 

	 	 	 	 
	 	 

	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

16exv10w2

 

EXHIBIT 10.2

ABF FREIGHT SYSTEM, INC.

SUPPLEMENTAL BENEFIT PLAN

Amended and Restated Effective as of January 1, 2005

 

 

ABF FREIGHT SYSTEM, INC.

SUPPLEMENTAL BENEFIT PLAN

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	Article I. Establishment and Purpose	 	 	1	 
	1.1	 	Establishment	 	 	1	 
	1.2	 	Purpose	 	 	1	 
	Article II. Definitions and Construction	 	 	1	 
	2.1	 	Definitions.	 	 	1	 
	 
	 	(a)	 	“Act”	 	 	1	 
	 
	 	(b)	 	“Administrator”	 	 	1	 
	 
	 	(c)	 	“Alternative Earnings Rate”	 	 	1	 
	 
	 	(d)	 	“Basic Benefit”	 	 	2	 
	 
	 	(e)	 	“Benefit”	 	 	2	 
	 
	 	(f)	 	“Beneficiary”	 	 	2	 
	 
	 	(g)	 	“Board of Directors”	 	 	2	 
	 
	 	(h)	 	“Business Day”	 	 	2	 
	 
	 	(i)	 	“Category I Participant”	 	 	2	 
	 
	 	(j)	 	“Category II Participant”	 	 	2	 
	 
	 	(k)	 	“Change in Control”	 	 	2	 
	 
	 	(l)	 	“Code”	 	 	3	 
	 
	 	(m)	 	“Company”	 	 	4	 
	 
	 	(n)	 	“Current Qualified Plan”	 	 	4	 
	 
	 	(o)	 	“Deferral Account”	 	 	4	 
	 
	 	(p)	 	“Deferral Election”	 	 	4	 
	 
	 	(q)	 	“Deferred Benefit”	 	 	4	 
	 
	 	(r)	 	“Deferred Participant”	 	 	4	 
	 
	 	(s)	 	“Deferred Payment(s)”	 	 	4	 
	 
	 	(t)	 	“Deferred Payment Date”	 	 	4	 
	 
	 	(u)	 	“Disability”	 	 	4	 
	 
	 	(v)	 	“Earnings”	 	 	4	 
	 
	 	(w)	 	“Election Form”	 	 	4	 
	 
	 	(x)	 	“Eligible Deferral Participant”	 	 	5	 
	 
	 	(y)	 	“Final Election Date”	 	 	5	 
	 
	 	(z)	 	“Installment Payment”	 	 	5	 
	 
	 	(aa)	 	“Investment Election”	 	 	5	 
	 
	 	(bb)	 	“Lump Sum”	 	 	5	 
	 
	 	(cc)	 	“Money Market Fund”	 	 	5	 
	 
	 	(dd)	 	“Participant”	 	 	5	 
	 
	 	(ee)	 	“Plan”	 	 	5	 
	 
	 	(ff)	 	“Plan Year”	 	 	5	 
	 
	 	(gg)	 	“Post-2004 Deferrals”	 	 	5	 
	 
	 	(hh)	 	“Pre-2005 Deferrals”	 	 	6	 
	 
	 	(ii)	 	“Qualified Plan”	 	 	6	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	(jj)	 	“Rules of General Application”	 	 	6	 
	 
	 	(kk)	 	“Separates" or "Separation”	 	 	6	 
	 
	 	(ll)	 	“Special Restored Compensation”	 	 	6	 
	 
	 	(mm)	 	“Specified Employee”	 	 	6	 
	 
	 	(nn)	 	“Statutory Limitations”	 	 	6	 
	 
	 	(oo)	 	“Third-Party Recordkeeper”	 	 	6	 
	 
	 	(pp)	 	“VSP”	 	 	6	 
	2.2	 	Gender and Number	 	 	6	 
	2.3	 	Severability	 	 	7	 
	2.4	 	Applicable Law	 	 	7	 
	2.5	 	Plan Not an Employment Contract	 	 	7	 
	Article III. Participation	 	 	7	 
	3.1	 	Participation	 	 	7	 
	Article IV. Benefit and Payment	 	 	7	 
	4.1	 	Benefit.	 	 	7	 
	4.2	 	Payment	 	 	9	 
	4.3	 	Funding	 	 	9	 
	4.4	 	Tax Withholding	 	 	9	 
	4.5	 	Benefits are Not Compensation	 	 	9	 
	4.6	 	Nontransferability	 	 	10	 
	Article V. Deferrals And Investments	 	 	10	 
	5.1	 	Elections	 	 	10	 
	5.2	 	Establishment of Deferral Account	 	 	10	 
	5.3	 	Earnings Added to Deferral Accounts	 	 	10	 
	5.4	 	Investment Direction	 	 	10	 
	5.5	 	No Guaranty of Deferral	 	 	11	 
	5.6	 	Statements	 	 	11	 
	Article VI. Distributions to Deferred Participants	 	 	11	 
	6.1	 	Form of Deferred Payments	 	 	11	 
	6.2	 	Installment Payments	 	 	12	 
	6.3	 	Change in Control	 	 	12	 
	6.4	 	Hardship Distribution	 	 	12	 
	6.5	 	Accelerated Withdrawal	 	 	13	 
	Article VII. Administration	 	 	13	 
	7.1	 	Administration	 	 	13	 
	7.2	 	Finality of Determination	 	 	13	 
	7.3	 	Expenses	 	 	13	 
	7.4	 	Indemnification and Exculpation	 	 	13	 
	Article VIII. Merger, Amendment, and Termination	 	 	14	 
	8.1	 	Merger, Consolidation	 	 	14	 
	8.2	 	Claims Procedure	 	 	14	 
	8.3	 	Securities Laws	 	 	15	 
	8.4	 	Amendment and Termination	 	 	15	 

 

 

ABF FREIGHT SYSTEM, INC.

SUPPLEMENTAL BENEFIT PLAN

AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2005

Article I. Establishment and Purpose

     1.1 Establishment. ABF Freight System, Inc. established the ABF Freight System, Inc.
Supplemental Benefit Plan (the “Plan”) effective as of January 1, 1992 (the “Effective Date”), and
hereby amends and restates it (except as otherwise herein provided) as of January 1, 2005.

     1.2 Purpose. The purpose of this Plan is to provide (i) a restoration of benefits of
Category I Participants which were lost under the Qualified Plan (x) because of amendments which
were adopted, and Statutory Limitations imposed, subsequent to 1985, and (y) by reason of voluntary
contributions to the VSP; and (ii) a restoration of benefits of Category II Participants which were
lost under the Current Qualified Plan solely by reason of voluntary contributions to the VSP.

          The purpose of this amendment and restatement of the Plan is to comply with the provisions of
the American Jobs Creation Act of 2004 (the “Act”) in order to avoid immediate taxation of amounts
deferred hereunder, and the Plan will be interpreted accordingly. With respect to Pre-2005
Deferrals, the Plan shall be interpreted so as to avoid having such Pre-2005 Deferrals subject to
the Act.

          Notwithstanding anything herein to the contrary, (i) the Plan shall be closed to new
Participants from and after December 16, 2005; (ii) benefits payable to existing Category II
Participants shall only take into account amounts deferred under the VSP (as defined below) on or
before December 31, 2006; and (iii) the Benefits payable hereunder shall be subject to the maximum
caps set forth in Exhibit B hereto.

Article II. Definitions and Construction

     2.1 Definitions. Whenever used in the Plan, the following terms shall have the
meanings set forth below unless the context otherwise requires, and when the defined meaning is
intended, the term is capitalized.

     (a) “Act” shall mean the American Jobs Creation Act of 2004, as it may be amended, and
any guidance issued thereunder by the Internal Revenue Service and the Department of the
Treasury.

     (b) “Administrator” shall mean the Company, or a person(s) appointed by the Company,
and without limitation the Administrator shall be primarily responsible for the
administration of the Deferral Accounts and matters relating thereto.

     (c) “Alternative Earnings Rate” shall mean the Earnings of the Money Market Fund for
the period of reference.

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     (d) “Basic Benefit” shall mean the amount determined under Section 4.1 at the time of
reference.

     (e) “Benefit” shall mean the Basic Benefit and the Deferred Benefit, collectively;
provided, further, that where it is necessary or appropriate to distinguish between those
two classes of Benefits, reference shall be made to the specific class. However,
notwithstanding anything to the contrary herein, a Participant’s combined Basic Benefit and
Deferred Benefit shall in no event ever exceed the maximum Benefit for such Participant’s
employment classification as specified in Exhibit B hereto.

     (f) “Beneficiary” means the person or persons designated by the Participant pursuant to
Section 4.2 hereof; provided, further, and without limitation, that references herein to
Participant shall be deemed to be references to Beneficiary after the death of the
Participant and before all Benefits are paid to the Beneficiary, except that the Beneficiary
shall have no right to deferral, and instead will receive a lump sum distribution of all
Benefits hereunder within a reasonable time subsequent to the death of the Participant.

     (g) “Board of Directors” means the board of directors of the Company.

     (h) “Business Day” shall mean a day on which the New York Stock Exchange is operating.

     (i) “Category I Participant” shall mean each employee of the Company who is listed on
Exhibit A. Notwithstanding anything herein to the contrary, only those individuals who were
Category I Participants as of December 16, 2005 shall be eligible to participate in the Plan
as a Category I Participant.

     (j) “Category II Participant” shall mean each employee of the Company who is eligible
to participate in the VSP, but who is not a Category I Participant; provided, further, that
if a Category II Participant becomes a Category I Participant on or before December 16,
2005, his Benefits hereunder shall be calculated as though he had been a Category I
Participant from his most recent date of hire by the Company. However, any benefits earned
by a Category II Participant prior to such Category II Participant’s conversion to a
Category I Participant shall remain 100% vested and will not be subject to the vesting
schedule described in Section 4.1(c) of the Plan. Notwithstanding anything herein to the
contrary, only those individuals who were Category II Participants as of December 16, 2005
shall be eligible to participate in this Plan as a Category II Participant.

     (k) “Change in Control” shall mean the earliest date on which any of the following
events shall occur:

     (i) there shall be consummated any consolidation or merger of the Arkansas Best
Corporation in which the Arkansas Best Corporation is not the continuing or
surviving corporation or pursuant to which the Arkansas Best Corporation’s common
stock would be converted into cash, securities, or other property, or any lease,
exchange or other transfer (excluding transfer by way of pledge or hypothecation),
in one transaction or a series of related transactions, of

2

 

all, or substantially all, of the assets of the Arkansas Best Corporation,
other than any such consolidation, merger, lease, exchange or transfer in which the
Arkansas Best Corporation, or any of its affiliates, or the holders of the Arkansas
Best Corporation’s common stock immediately prior to any such actions have at least
a fifty-one percent (51%) ownership of the surviving corporation after the
consolidation or merger of the entity to which such assets are transferred, leased,
exchanged or otherwise transferred.

     (ii) the shareholders of the Arkansas Best Corporation approve any plan or
proposal for the liquidation or dissolution of the Arkansas Best Corporation.

     (iii) any “person” (as such is defined in Section 3(a)(9) or Section 13(d)(3)
under the Securities Exchange Act of 1934 [the “1934 Act”]) or any “group” (as such
term is used in Rule 13d-5 promulgated under the 1934 Act) other than the Arkansas
Best Corporation or any successor of the Arkansas Best Corporation or any subsidiary
of the Arkansas Best Corporation or any employee benefit plan of the Arkansas Best
Corporation or any subsidiary (including such plan’s trustee), becomes a beneficial
owner for purposes of Rule 13d-3 promulgated under the 1934 Act, directly or
indirectly, of securities of the Arkansas Best Corporation represented thirty-five
percent (35%) or more of the Arkansas Best Corporation’s then outstanding securities
having the right to vote in the election of directors.

     (iv) if at any time the Continuing Directors then serving on the Board of
Directors cease for any reason to constitute at least a majority thereof.

“Continuing Director” shall mean a Director of the Arkansas Best Corporation who
either (A) is a Director of the Arkansas Best Corporation on the date hereof, or (B)
whose initial appointment or initial nomination for election or election by the
Arkansas Best Corporation’s shareholders was approved by a majority of the Continuing
Directors (including any successors elected pursuant to this Subsection (iv)) then on
the Arkansas Best Corporation Board of Directors.

     (v) any person or group (as defined in Subsection (iii) above) commences a
tender offer or exchange offer for all or less than all of the share of the Arkansas
Best Corporation’s issued and outstanding common stock that would result in, upon
the consummation of such offer, the person or group, together with all of its or
their affiliates, beneficially owning 25% or more of the Arkansas Best Corporation’s
common stock, and which offer does not include a binding written commitment by the
offeror to purchase any shares that are not tendered or exchanged for the same cash
consideration (or in the event of any exchange offer, the cash equivalent of the
fair market value of the securities or their property offered in the exchange, as
determined by the Arkansas Best Corporation’s Board of Directors in its sole
discretion) within 90 days following the consummation of the tender or exchange
offer; provided, however, that if the tender offer or exchange offer that would have
otherwise resulted in a Change in Control is

3

 

canceled, terminated withdrawn or otherwise not consummated, such offer shall
be deemed never to have been made and no Change in Control shall be deemed to have
occurred.

     (l) “Code” shall mean the Internal Revenue Code of 1986, as amended.

     (m) “Company” means ABF Freight System, Inc.

     (n) “Current Qualified Plan” shall mean the Qualified Plan as amended and/or restated,
and in effect, at each date of reference.

     (o) “Deferral Account” shall mean the account to which each Eligible Deferral
Participant’s Basic Benefit is added as a result of such Eligible Deferral Participant’s
Deferral Election.

     (p) “Deferral Election” shall mean the Election Form filed by an Eligible Deferral
Participant to defer the payment of some or all of his Basic Benefit to a specified Deferred
Payment Date(s).

     (q) “Deferred Benefit” shall mean the amount added to a Deferred Participant’s Deferral
Account at each time of reference.

     (r) “Deferred Participant” shall mean an Eligible Deferral Participant who has filed a
timely Deferral Election form, and has not been paid all of his Deferred Benefit at the time
of reference; provided, further, without limitation, that a Deferred Participant shall also
be either a Category I Participant or a Category II Participant.

     (s) “Deferred Payment(s)” shall mean payment(s) of a Deferred Participant’s Deferred
Benefit in the form selected by the Deferred Participant.

     (t) “Deferred Payment Date” shall mean, with respect to each Deferred Participant, the
date as of which his Deferred Payment of reference is made.

     (u) “Disability” shall, with respect to Post-2004 Deferrals, be deemed to occur if (a)
the Administrator determines that the Participant is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which
can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months, or (b) the Participant is, by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be expected to
last for a continuous period of not less than 12 months, receiving income replacement
benefits for a period of not less than 3 months under an accident and health plan covering
the employees of the Company.

     (v) “Earnings” shall mean the amounts notationally added or deducted from a Deferred
Participant’s Deferral Account (including, without limitation, unrealized appreciation or
depreciation) based on his Measurement Preferences as determined by the Administrator under
Rules of General Application.

4

 

     (w) “Election Form” shall mean, collectively, a Deferral Election form, and an
Investment Election form; provided, further, that where it is necessary or appropriate to
distinguish between those two types of forms, reference shall be made to the specific form.

     (x) “Eligible Deferral Participant” shall mean each Participant (i) who Separates after
age 55 and who, at such date of Separation, has completed 10 or more “Years of Vesting
Service” as defined in the Qualified Plan, (ii) whose Separation is not by reason of death,
and (iii) whose Basic Benefit exceeds $5,000.

     (y) “Final Election Date” shall mean, subject to Section 5.1, (i) in the case of the
deferral of an Eligible Deferral Participant’s Basic Benefit, the later of (x) January 15,
2000, and (y) the 365th day prior to such Eligible Deferral Participant’s date of
Separation; provided, further, that where a Participant suffers an involuntary Separation,
as determined by the Administrator in its sole discretion, the final filing date shall be
the date described in (y) above if a Deferral Election form is filed on that date, and
otherwise shall be the first date thereafter (but prior to Separation) on which a Deferral
Election form is filed, and (ii) in the case of a Deferred Participant with respect to any
Deferred Payment(s), the 365th day prior to the Deferred Payment Date of such
Deferred Payment(s), in either case, provided that payments do not commence prior to 12
months after the date the Deferral Election form is filed.

     (z) “Installment Payment” shall mean an annual distribution, in cash, of a Deferred
Participant’s Deferred Benefit over a period of years as provided for in Sections 6.1 and
6.2.

     (aa) “Investment Election” shall mean the Election Form filed by a Deferred Participant
on which he selects his or her Measurement Preferences, as described in Section 5.4.

     (bb) “Lump Sum” shall mean a single distribution, in cash, of a Participant’s Basic
Benefit, or Deferred Benefit, or both.

     (cc) “Money Market Fund” shall mean the fund which is a Measurement Preference, which
is composed primarily of debt instruments, and which the Administrator determines to have
the least risk to principal of all of the Measurement Preferences.

     (dd) “Participant” means, individually and collectively, a Category I Participant and a
Category II Participant; provided, further, that where it is necessary or appropriate to
distinguish between those two classes of Participant, reference shall be made to the
specific class.

     (ee) “Plan” means this ABF Freight System, Inc. Supplemental Benefit Plan, as amended
from time to time.

     (ff) “Plan Year” means the 12-month period beginning January 1 and ending December 31.

5

 

     (gg) “Post-2004 Deferrals” shall mean that portion of each Participant’s Basic Benefit
that is not Pre-2005 Deferrals, including any such amounts that are deferred under Article V
of the Plan and any Earnings thereon.

     (hh) “Pre-2005 Deferrals” shall mean that portion of each Participant’s Basic Benefit
that was both “earned and vested” (within the meaning of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”)) as of December 31, 2004 (calculated in
accordance with Section 409A of the Code and any Treasury Regulations promulgated
thereunder), including any such amounts that are deferred under Article V of the Plan and
any Earnings thereon.

     (ii) “Qualified Plan” means the ABF Freight System, Inc. Retirement Plan (a/k/a ABF
Freight System, Inc. Pension Plan) as amended and restated effective January 1, 1985, and as
amended from time to time to the extent such amendments increase benefits.

     (jj) “Rules of General Application” shall mean those rules promulgated by the
Administrator, in its sole discretion, from time to time with respect to the matter of
reference, but which will be applied in a similar manner to Participants similarly situated.

     (kk) “Separates” or “Separation” or similar shall mean a Participant’s termination of
employment with the Company or any affiliate of the Company for any reason (including death
or disability); provided that, with respect to Post-2004 Deferrals, such terms shall have
such meaning as provided under the Act.

     (ll) “Special Restored Compensation” shall mean, the amount, if any, of the
compensation of a Category II Participant (i) which is deferred in accordance with the terms
of the VSP on or before December 31, 2006, and (ii) which, if not for such deferral, would
have increased such Category II Participant’s Average Monthly Compensation as defined in the
Current Qualified Plan at the time of reference. Compensation deferred in accordance with
the VSP on or after January 1, 2007 shall not be taken into account in determining a
Category II Participant’s Benefit.

     (mm) “Specified Employee” shall mean a “specified employee” of the Arkansas Best
Corporation as defined in the Act.

     (nn) “Statutory Limitations” shall mean (i) the coverage and benefit requirements the
Qualified Plan must satisfy in order to comply with the nondiscrimination requirements of
the Code, and (ii) the compensation and benefits limitations which are imposed on the
Qualified Plan under Section 401(a)(17) and Section 415 of the Code, and the regulations
promulgated thereunder.

     (oo) “Third-Party Recordkeeper” shall mean the person or entity selected by the
Administrator to maintain the records necessary to the administration of the Investment
Elections.

     (pp) “VSP” shall mean the Arkansas Best Corporation Voluntary Savings Plan, as now or
hereafter in effect.

6

 

     2.2 Gender and Number. Except when otherwise indicated by the context, any masculine
terminology when used in the Plan shall also include the feminine gender and the neuter gender, and
the definition of any term in the singular shall also include the plural.

     2.3 Severability. In the event any provision of the Plan shall be held invalid or
illegal for any reason, any illegality or invalidity shall not affect the remaining parts of the
Plan, but the Plan shall be construed and enforced as if the illegal or invalid provision had never
been inserted, and the Company shall have the privilege and opportunity to correct and remedy such
questions of illegality or invalidity by amendment as provided in the Plan.

     2.4 Applicable Law. This Plan shall be governed and construed in accordance with the
laws of the State of Arkansas.

     2.5 Plan Not an Employment Contract. This Plan is not an employment contract. It
does not give to any person the right to be continued in employment, and all employees remain
subject to change of salary, transfer, change of job, discipline, layoff, discharge, or any other
change of employment status.

Article III.  Participation

     3.1 Participation. Participation in this Plan shall be limited to those persons who
are Participants on December 16, 2005.

Article IV. Benefit and Payment

     4.1 Benefit.

     (a) Benefits of Category I Participants. The Basic Benefits payable to a
Category I Participant under this Plan shall be equal to the actuarial equivalent of the
excess, if any, of (i) the benefits which would be payable to the Category I Participant
under the Qualified Plan if the provisions of the Qualified Plan were administered (x)
without regard to the maximum benefit limitations of Section 415 of the Code, and (y)
without regard to the limitation imposed by Section 401(a)(17)of the Code, over (ii) the
benefits which are actually payable to such person under the Current Qualified Plan, with
the benefits in both (i) and (ii) being computed as of the date the Category I Participant
Separates, but in no event, when combined with the Participant’s Deferred Benefit, more than
the maximum amount specified in Exhibit B hereto for such Participant’s employment
classification. Without limitation, the amount described in “(i)” shall be determined as if
the Qualified Plan’s definition of Compensation were amended by (iii) deleting all direct or
indirect references to the provisions of Section 401(a)(17) of the Code, (iv) adding thereto
a provision which would cause the Qualified Plan’s definition of Compensation to include all
amounts which a Category I Participant shall contribute to the VSP as a Compensation
Deferral Contribution (as defined in the VSP); and (v) applying the Qualified Plan’s
definition of Compensation so as to reflect the historical intent and practice of excluding
all income which the Company considered as not subject to FICA tax, including without
limitation, the exclusion of all income from the exercise of stock options and vesting of
restricted stock. Basic Benefits payable under this Plan shall be computed in accordance
with the foregoing and with the

7

 

objective that, subject to the maximum Benefit caps specified in Exhibit B hereto, the Category I Participant
should receive under this Plan and the Current Qualified Plan that total amount which would
have been payable to the Category I Participant solely under the Qualified Plan had Section
415 and Section 401(a)(17) of the Code not been applicable thereto, and had he not elected
to make Compensation Deferral Contribution(s) as defined in the VSP; provided, however, that
it is not intended that there be any service or compensation credited under more than one
supplemental benefit plan and no Category I Participant shall receive Basic Benefits from
this Plan with respect to service and compensation to the extent, as determined by the
Administrator in its sole discretion, he receives benefits with respect thereto under the
Data-Tronics Supplemental Benefit Plan or the Arkansas Best Corporation Supplemental Benefit
Plan.

     (b) Benefit of Category II Participants. The Basic Benefits payable to a
Category II Participant under this Plan shall be equal to the actuarial equivalent of the
excess, if any, of the benefits which would be payable to the Category II Participant (i)
under the Current Qualified Plan, if the Current Qualified Plan’s definition of Compensation
(without limitation, determined by the application described in Section 4.1 (a)(v)) included
the Special Restored Compensation, if any, of such Category II Participant, over (ii) the
benefits which are actually payable to such Category II Participant under the Current
Qualified Plan, with both benefits being computed as of the date the Category II Participant
Separates, but in no event, when combined with the Participant’s Deferred Benefit, more than
the maximum amount specified in Exhibit B hereto for such Participant’s employment
classification. Basic Benefits of each Category II Participant payable under this Plan
shall be computed in accordance with the foregoing, and with the objective that, subject to
the maximum Benefit caps specified in Exhibit B hereto, the Category II Participant should
receive under this Plan and the Current Qualified Plan that total amount which would have
been payable to the Category II Participant solely under the Current Qualified Plan
(calculated, without limitation, by recognizing and applying the limitations of Section 415
and Section 401(a)(17) of the Code) if he had not incurred a Compensation Deferral
Contribution as defined in the VSP on or before December 31, 2006; provided, however, that
it is not intended that there be any Special Restored Compensation credited under more than
one supplemental benefit plan and no Category II Participant shall receive Basic Benefits
from this Plan to the extent he receives benefits under the Data-Tronics Supplemental
Benefit Plan or the Arkansas Best Corporation Supplemental Benefit Plan. In addition,
amounts contributed to the VSP on or after January 1, 2007, shall not be taken into account
in determining a Category II Participant’s Basic Benefit.

     (c) Vesting Schedule. Subject to the following provisions of this subsection,
the benefits payable to any Participant who becomes a Category I Participant after January
22, 2003, shall be subject to the following vesting schedule:

1.67% vesting for each month of participation as a 

Category I Participant in the Plan

The determination of a Participant’s vested benefits shall be calculated on a monthly basis
for a period up to sixty (60) months (with the last month equal to 1.47%), provided

8

 

such Participant continues to be a Category I Participant in the Plan. The vesting schedule
shall not apply to Category I Participants who became Category I Participants on or prior to
January 22, 2003, such Participants shall be 100% vested.

This vesting schedule shall not apply to benefits earned by a Category II Participant;
provided however, that in the event a Category I Participant becomes a Category II
Participant, no further vesting in his or her Category I benefits shall occur. In the event
a Category II Participant becomes a Category I Participant, all benefits earned while a
Category II Participant shall remain 100% vested; however, any benefits earned as a Category
I Participant shall be subject to the vesting schedule described above.

     4.2 Payment. Except as provided with respect to Deferred Participants (see Sections
6.1 and 6.2), any Basic Benefit payable hereunder shall be paid to a Participant in the form of a
single Lump Sum cash payment within a reasonable time after his date of Separation; provided,
however, that if a Participant is a Specified Employee and Participant’s Separation did not result
from Participant’s death or Disability, Participant’s Post-2004 Deferrals may not be distributed
until at least 6 months following his date of Separation. Any Participant shall have the right
under this Plan, at any time prior to his death, to designate a Beneficiary, which may be different
than the Beneficiary named under the Current Qualified Plan, for purposes of receiving Benefits
under this Plan payable after his death, or to revoke or change such Beneficiary designation. In
the event that a Participant wishes to exercise such right, he shall make his Beneficiary
designation, revocation or change in such manner as the Administrator shall prescribe. Such
designation, revocation or change is only for purposes of the payment of death benefits that may be
payable under this Plan. The designation of a different beneficiary for purposes of this Plan
shall only affect the identity of the person or persons entitled to receive death benefits under
this Plan; it shall not affect the amount of Benefits payable under this Plan, nor shall it affect
the time or the form in which Benefits are payable hereunder. Moreover, if the Participant does
not exercise his right to designate a different Beneficiary for purposes of this Plan, the
Participant’s Beneficiary under the Qualified Plan shall also be his Beneficiary under this Plan.
Without limiting the generality of the foregoing, upon the death of a Deferred Participant, his or
her Deferred Benefits shall be paid in accordance with the provisions of this paragraph.

     4.3 Funding. All amounts paid under this Plan shall be paid in cash from the general
assets of the Company or from such funding vehicle, if any, as the Company shall establish for this
purpose; provided, further, that all assets paid into any such funding vehicle shall be subject to
the terms, conditions, and limitations set forth in the document(s) establishing such funding
vehicle but which, in any event, shall at all times, prior to payment to a Participant, remain
subject to the general creditors of the Company. The benefits restored hereunder, including any
Deferred Benefits, shall be reflected on the accounting records of the Company. Nothing contained
in this Plan, and no action taken pursuant to its provisions, shall create or be construed to
create a trust or a fiduciary relationship of any kind between the Company and a Participant or
other person. Notwithstanding anything herein or in any trust agreement to the contrary, in no
event shall (i) assets of the Company or any affiliate be set aside or reserved (directly or
indirectly) in a trust or transferred to such a trust for purposes of paying deferred amounts and
earnings thereon for an “applicable covered employee” (as defined in Section 409A(b)(3)(D)(1) of
the Code) under the Plan during any “restricted period” (as defined in Section 409A(b)(3)(B) of the
Code), or (ii) any assets of the Company, any affiliate or any trust described in this

9

 

paragraph become restricted to the provision of benefits under the Plan in connection with a
“restricted period” (as defined in Section 409A(b)(3)(B) of the Code); in each case, unless
otherwise permitted under Section 409A(b)(3) of the Code without the imposition of the additional
tax set forth in Section 409A(a)(1)(B) of the Code.

     4.4 Tax Withholding. The Company may withhold or cause to be withheld from any
Benefit payment any federal, state, or local taxes required by law to be withheld with respect to
such payment and such sum as the Company may reasonably estimate as necessary to cover any taxes
for which the Company may be liable and which may be assessed with regard to such payment.

     4.5 Benefits are Not Compensation. No Benefit accrued or payable hereunder shall be
deemed compensation to the Participant for the purposes of computing benefits to which such
Participant may be entitled under the Qualified Plan, the Current Qualified Plan, or any other
retirement plan or arrangement of the Company for the benefit of its employees; provided, further,
that in the event of a conflict with this Plan, the terms of each retirement plan or arrangement
shall control.

     4.6 Nontransferability. A Participant shall have no rights by way of anticipation or
otherwise to assign or otherwise dispose of any interest under this Plan, nor shall rights be
assigned or transferred by operation of law other than by will or the laws of distribution or
between spouses or incident to a divorce within the meaning of Section 1041 of the Code or any
successor provision (provided any such permitted transfer shall remain subject to all other
provisions of this Plan).

Article V.  Deferrals And Investments

     5.1 Elections. Each Eligible Deferral Participant may file a Deferral Election form
with the Administrator and become a Deferred Participant, provided such filing is made prior to his
Final Election Date under Section 2(y)(i). Notwithstanding anything herein to the contrary, with
respect to Post-2004 Deferrals, each Participant who desires to defer all or a portion of the
Participant’s Basic Benefit must file an initial Deferral Election form with the Administrator by
December 31, 2007, or, if later, 30 days following the date the individual first becomes a
Participant in the Plan; provided, however, that (i) an initial Deferral Election filed in the
calendar year 2006 may not (A) defer the distribution of payments that would otherwise be payable
in 2006, or (B) accelerate any payments into calendar year 2006 that would not have otherwise been
made in 2006, and (ii) an initial Deferral Election filed in the calendar year 2007 may not (A)
defer the distribution of payments that would otherwise be payable in 2007, or (B) accelerate any
payments into calendar year 2007 that would not have otherwise been made in 2007. In addition, a
Participant may file subsequent Deferral Election forms prior to the Final Election Date; provided,
however, that with respect to Post-2004 Deferrals, any subsequent Deferral Election, including any
Deferral Election made by a Deferred Participant with respect to Post-2004 Deferrals, (a) will not
be effective until 12 months following the date the new Deferral Election form is filed, (b) must
provide for the delay of the Deferral Payment Date for at least 5 additional years and (c) must not
provide for the accelerated payment of any portion of such Post-2004 Deferrals.

10

 

     5.2 Establishment of Deferral Account. The Administrator shall establish a Deferral
Account for each Deferred Participant, (i) to which shall be added the deferred portion of such
Deferred Participant’s Basic Benefit effective not less than thirty (30) days after his Separation,
(ii) to which shall be added (or deducted) Earnings, and (iii) from which shall be deducted
Deferred Payments.

     5.3 Earnings Added to Deferral Accounts. Earnings shall be added to each Deferral
Account based on the Deferred Participant’s Measurement Preference as shall be determined by the
Administrator in accordance with Rules of General Application.

     5.4 Investment Direction. Effective as of each Business Day, in accordance with Rules
of General Application, each Deferred Participant may select investments (“Measurement
Preferences”) from among the different investment alternatives which are made available by the
Administrator. No actual investments shall be made by Deferred Participants. The Measurement
Preferences are only for the purpose of determining the Company’s payment obligation under Article
VI and such Measurement Preferences do not control any actual investments made by the Company.

     A Deferred Participant may change his Measurement Preferences as of each Business Day by
filing an Investment Election form with the Administrator who will review and determine whether
such direction shall be forwarded, and if the Administrator elects to follow such direction, he
shall notify the Third Party Recordkeeper. If a Deferred Participant has not filed an Investment
Election form with respect to some or all of the amount in his Deferral Account, he will be deemed
to have elected for such amount to be invested in the Money Market Fund until the first Business
Day with respect to which he has designated an investment of such amount by filing an Investment
Election form.

     Notwithstanding the forgoing, the Administrator shall have the power to reject some or all of
the selections of Measurement Preferences selected by any one or more Deferred Participants by
advising the affected Deferred Participant(s) in writing of such rejection within five (5) days of
receiving an Investment Election form selecting or changing a Deferred Participant’s Measurement
Preferences. If the Administrator rejects as election, notwithstanding any provision hereof to the
contrary, the portion of such Deferral Account(s) subject to such rejection shall be credited with
the Alternative Earnings Rate until a Measurement Preference is approved.

     5.5 No Guaranty of Deferral. While the Company intends that the Deferral Election(s)
will result in the deferral of the imposition of a federal income tax on the funds added to a
Deferred Participant’s Deferral Account until such time as they actually shall be paid to such
Deferred Participant, nothing herein shall be construed as a promise, guarantee or other
representation by the Company of such tax effect nor, without limitation, shall the Company be
liable for any taxes, penalties or other amounts incurred by any Eligible Deferral Participant(s)
or Deferred Participant(s) in the event it is determined by applicable authorities that such
deferral was not accomplished, and each Participant who files an Election Form should consult his
or her own tax advisor(s) to determine the tax consequences in his or her specific case, and their
suitability for the filing of such Election Form.

11

 

     5.6 Statements. As soon as reasonably possible following each Plan Year, and at such
other times as determined by the Administrator under Rules of General Application, the
Administrator shall furnish each Deferred Participant with a statement setting forth (i) the amount
in his Deferral Account, (ii) the Earnings added or deducted from his Deferral Account for such
period, and (iii) any deducted charges to, or distributions from, his Deferral Account during such
period.

Article VI.  Distributions to Deferred Participants

     6.1 Form of Deferred Payments. A Deferred Participant’s Deferred Payments may be made
or commenced at any time following the date on which they are first added to his Deferral Account,
and may be paid on the date(s) designated and either in a Lump Sum or in up to fifteen (15)
Installment Payments, in each case, as a Deferred Participant shall select on the Deferral Election
in effect on the Final Election Date preceding the Deferred Payment Date of reference. Subject to
Section 5.1, only the last Deferral Election form on or before such Final Election Date of
reference shall be effective.

     6.2 Installment Payments. If a Deferred Participant elects a Deferred Payment in the
form of Installment Payments, each installment shall be equal to either (i) a fixed amount each
year (not in excess of the balance of his Account at the time of the distribution), with the
remaining balance of his Deferral Account distributed as the final installment; (ii) the product of
(w) the balance of his Deferral Account on the payment date elected by the Participant in which
such payment is made, multiplied by (x) a fraction, the numerator of which is one (1), and the
denominator of which is the total number of installments originally elected less the number of
installments previously paid plus, in the case of the last Installment Payment, the remaining
amount in his Deferral Account, or (iii) such other method as shall be (y) requested by the
Deferred Participant on the Election Form of reference, and (z) approved by the Administrator in
his sole discretion. Installment Payments shall be paid at such time during the Plan Year as shall
be determined by the Administrator.

     6.3 Change in Control. Notwithstanding any other provision to the contrary, upon a
Change in Control, all Deferred Benefits hereunder (including, without limitation, Deferred
Benefits otherwise payable on a later Deferred Payment Date, including, again without limitation,
any remaining Installment Payments), shall be distributed to Deferred Participants in a Lump Sum as
soon as reasonably possible, but not more than thirty (30) days, after such Change in Control.
Notwithstanding the foregoing, at any time prior to the date of a Change in Control, a Deferred
Participant may elect to waive, with respect to Pre-2005 Deferrals (but not Post-2004 Deferrals),
the provisions of this Section 6.3 with respect to a designated Change in Control and continue to
retain his Benefits under the Plan as if such Change in Control had not occurred. In addition,
notwithstanding anything herein to the contrary, with respect to Post-2004 Deferrals, distributions
under this Section 6.3 shall only be made upon the occurrence of Change in Control that qualifies
as either a “change in the ownership” of the Company, a “change in effective control” of the
Company or a “change in the ownership of a substantial portion of the assets” of the Company, in
each case, as defined under the Act or Internal Revenue Service guidance issued thereunder.

12

 

     6.4 Hardship Distribution. Upon the Administrator’s determination (following petition
by a Deferred Participant) that a Deferred Participant has suffered a “severe financial hardship, “
the Administrator shall distribute to such Deferred Participant that portion of such Deferred
Participant’s Deferred Benefit as requested by such Deferred Participant and approved by the
Administrator, but in no event shall the Administrator approve a distribution which is greater than
is necessary to relieve the financial hardship. A “severe financial hardship” means an
unforeseeable event resulting from a sudden and unexplained illness or accident experienced by
either a Deferred Participant or his dependents, the loss of property due to casualty, or other
similar extraordinary and unforeseeable circumstances arising as a result of events beyond a
Deferred Participant’s control, which such Deferred Participant can not satisfy through available
or attainable assets. Without limitation, the definition of severe financial hardship does not
include the need to send a child to college or the desire to purchase a home. The amount of the
distribution will be limited to an amount necessary to satisfy the severe financial hardship plus
amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking
into account the extent to which the hardship is or may be relieved through reimbursement or
compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent
the liquidation would not itself cause severe financial hardship). The Administrator shall
evaluate the facts and circumstances of each hardship request. A Deferred Participant shall
receive a single lump-sum cash payment of the amount approved by the Administrator as soon as
possible following the Administrator’s approval.

     6.5 Accelerated Withdrawal. A Deferred Participant may request distribution of a
portion (not less than $1,000) of that portion of his Deferred Benefit that relates to Pre-2005
Deferrals before its Deferred Payment Date. If such request is approved by the Administrator,
which approval may be granted or withheld at the sole discretion of the Administrator, an amount
equal to ten percent (10%)of the amount withdrawn shall be deducted from such Deferred
Participant’s Deferral Account and irrevocably forfeited. The amount forfeited shall inure to the
benefit of the Company in the manner determined by the Administrator. Notwithstanding anything
herein to the contrary, this Section 6.5 shall not apply to Post-2004 Deferrals.

     Article VII.
 Administration

     7.1 Administration. The Plan shall be administered by the Company, who may delegate
that responsibility to any one or more persons or committees. If more than one person is acting as
Administrator, a majority of the members shall constitute a quorum and the acts of a majority of
the members present, or acts approved in writing by a majority of the members without a meeting,
shall be the acts of the Administrator. The Administrator shall have the authority which is
expressly stated in this Plan as vested in the Administrator, and authority to make rules to
administer and interpret the Plan, to decide questions arising under the Plan, and to take such
other action as may be appropriate to carry out the purposes of the Plan.

     7.2 Finality of Determination. The determination of the Administrator as to any
disputed questions arising under this Plan, including questions of construction and interpretation
shall be final, binding, and conclusive upon all persons. Without limitation, the Board of
Directors’ determinations as to which persons are Category I Participants and Category II
Participants, the specific benefits which shall be restored to each such Participant, and the

13

 

vehicle, if any, to be used to fund such restorations of benefits shall be final, binding and
conclusive upon all persons.

     7.3 Expenses. The expenses of administering the Plan shall be borne by the Company.

     7.4 Indemnification and Exculpation. The members of the Board of Directors, the
Administrator, and officers, directors, and employees of the Company shall be indemnified and held
harmless by the Company against and from any and all loss, cost, liability, or expense that may be
imposed upon or reasonably incurred by them in connection with or resulting from any claim, action,
suit, or proceeding to which they may be a party or in which they may be involved by reason of any
action taken or failure to act under this Plan and against and from any and all amounts paid by
them in settlement (with the Company’s written approval) or paid by them in satisfaction of a
judgment in any such action, suit, or proceeding. The foregoing provision shall not be applicable
to any person if the loss, cost, liability, or expense is due to such person’s gross negligence or
willful misconduct.

Article VIII. Merger, Amendment, and Termination

     8.1 Merger, Consolidation. In the event of a merger, consolidation, or acquisition
where the Company is not the surviving corporation, this Plan will terminate unless the successor
or acquiring corporation shall elect to continue and carry on the Plan; provided, however, that if
the transaction does not qualify as either a “change in the ownership” of the Company, a “change in
effective control” of the Company or a “change in the ownership of a substantial portion of the
assets” of the Company, in each case, as defined under the Act or Internal Revenue Service guidance
issued thereunder, such Plan termination shall not result in the acceleration of payment of any
Post-2004 Deferral unless otherwise permitted under the Act.

     8.2 Claims Procedure. The Administrator will make all determinations as to the rights
of any employee, Participant, Beneficiary or other person under the terms of this Plan. Any
employee, Participant, Beneficiary, or person claiming under them, may make a claim for benefits
under this Plan by filing written notice with the Administrator setting forth the substance of the
claim. If a claim is wholly or partially denied, the claimant will have the opportunity to appeal
the denial upon filing with the Administrator a written request for review within 60 days after
receipt of notice of denial. Denial of a claim or a decision on review will be made in writing the
Administrator and delivered to the claimant within 60 days after receipt of the claim or request
for review, unless special circumstances require an extension of time for processing the claim or
review, in which event the such person’s decision must be made as soon as possible thereafter but
not beyond an additional 60 days. If no action on an initial claim is taken within 120 days, the
claims will be deemed denied for purposes of permitting the claimant to proceed to the review
stage. The denial of a claim or the decision on review will specify the reasons for the denial or
decision , the pertinent Plan provisions upon which the denial or decision is based, a description
of any additional material or information necessary to perfect the claim and an explanation of,
\why such information is necessary, if applicable, and a description of the Plan’s review
procedures and the time limits applicable thereto, including a statement of the claimant’s rights
under Section 502(a) of ERISA following an adverse benefits determination on review. The denial of
a claim will also include a description of any additional material or information

14

 

necessary for the claimant to perfect the claim and an explanation of the claim review
procedure herein described. Within 60 days after receiving a denial, the claimant or his
authorized representative may appeal the decision by requesting a review by writing the
Administrator.

     On appeal, the claimant may submit in writing any comments or issues with respect to the claim
and/or any additional documents or information not considered during the initial review and, upon
request and free of charge, the claimant will be provided access to and copies of all documents,
records and other information relevant to the claim. On appeal, the Administrator will not give
deference to the initial adverse benefit determination. A decision on appeal will normally be
given within 60 days after the receipt of the appeal. If special circumstances warrant an
extension as determined by the Administrator in its sole discretion, then the decision will be made
no later than 120 days after receipt of the appeal. If an extension is required, the claimant will
be provided a written notice of the extension that shall indicate the special circumstances
requiring the extension and the date by which the Administrator expects to render its final
decision. The Administrator’s decision on appeal shall be final and binding on all parties. If a
claimant’s appeal is denied in whole or in part, the notice of the decision on appeal shall include
the specific reasons for the denial and reference to the relevant Plan provisions on which the
denial was based, a statement that, upon request and free of charge, the claimant may review and
copy all documents, records and other information relevant to the claim for benefits and the
claimant’s rights under Section 502(a) of ERISA.

     The Administrator will serve as an agent for service of legal process with respect to the Plan
unless the Company, through written resolution, appoints another agent.

     8.3 Securities Laws. The Plan intends to comply with and be exempt under the
Securities Act of 1933, as amended. The Deferred Participants under the Plan are final purchasers
and not underwriters or conduits to other beneficial owners or subsequent purchasers.

     8.4 Amendment and Termination. The Company, through its Board of Directors, may in
its discretion amend the Plan from time-to-time. Specifically, termination of the Plan shall
require the approval of the Board of Directors of the Company. Notwithstanding anything herein to
the contrary, the Company hereby delegates to its executive officers the authority to make any
amendment (i) that does not increase the benefit costs of the Plan to the Company by more than 1%
of the Plan’s prior calendar year financial statement expense or (ii) that is necessary or
desirable in order to have it conform to the provisions and requirements of the Code, AJCA or any
other applicable law.

     In the event of an amendment or termination of the Plan pursuant to this Section or Section
8.1, the Benefits accrued hereunder, prior to the later of the date of adoption, or the effective
date, of the amendment shall continue to be an obligation of the Company, and shall be paid not
later than the date(s) provided hereunder immediately prior to the later of the date of adoption,
or the effective date, of the amendment; and provided further, without limitation, that, with
respect to Pre-2005 Deferrals and with respect to Post-2004 Deferrals to the extent permitted by
the Act without the imposition of any additional taxes or penalties under the Act, such amounts may
be paid earlier, with actuarial reductions based on the actuarial assumptions in the Qualified
Plan, in the sole discretion of the Administrator.

15

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be executed by its duly
authorized officers on
                     day of                                         , 2006.

	 	 	 	 	 
	 

	 	 	 	ABF FREIGHT SYSTEM, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Printed Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

ATTEST:                                                             

16

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