Document:

exv10w2

Exhibit 10.2

ARKANSAS BEST CORPORATION

RESTRICTED STOCK UNIT AWARD AGREEMENT

(Employees)

     This Restricted Stock Unit Award Agreement (this “Agreement”) is dated as of this           
day of                     , 20__ (the “Grant Date”), and is between Arkansas Best
Corporation (the “Company”) and                      (“Participant”).

     WHEREAS, the Company, by action of the Board and approval of its shareholders established the
Arkansas Best Corporation 2005 Ownership Incentive Plan (the “Plan”);

     WHEREAS, Participant is employed by the Company or a Subsidiary and the Company desires to
encourage Participant to own Common Stock for the purposes stated in Section 1 of the Plan;

     WHEREAS, Participant and the Company have entered into this Agreement to govern the terms of
the Restricted Stock Unit Award (as defined below) granted to Participant by the Company.

     NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree as follows:

1. Definitions

     Defined terms in the Plan shall have the same meaning in this Agreement, except where the
context otherwise requires.

2. Grant of Restricted Stock Units

     On the Grant Date, the Company hereby grants to
Participant an Award of ___ Restricted Stock
Units (the “Award”) in accordance with Section 9 of the Plan and subject to the conditions
set forth in this Agreement and the Plan (as amended from time to time). Each Restricted Stock
Unit subject to the Award represents the right to receive one Share (as adjusted from time to time
pursuant to Paragraph 14 hereof and/or Section 13 of the Plan) upon the terms and subject to the
conditions (including the vesting conditions) set forth in this Agreement and the Plan. By
accepting the Award, Participant irrevocably agrees on behalf of Participant and Participant’s
successors and permitted assigns to all of the terms and conditions of the Award as set forth in or
pursuant to this Agreement and the Plan (as such Plan may be amended from time to time).

3. Vesting; Payment

     (a) The Award shall not be vested as of the Grant Date and shall be forfeitable unless and
until otherwise vested pursuant to the terms of this Agreement. After the Grant Date, provided
that Participant remains continuously employed by the Company through the fifth anniversary of the
Grant Date (the “Normal Vesting Date”), the Award shall become vested with respect to 100%
of the Restricted Stock Units on such Normal Vesting Date. In addition, prior to the Normal
Vesting Date:

 

 

          (i) the Award shall become vested with respect to 100% of the Restricted Stock Units on the
date Participant first satisfies the requirements for Normal Retirement, as defined below, whether
or not his actual retirement or separation from service has occurred on that date, and

          (ii) on the first date on or after the first anniversary of the Grant Date on which
Participant satisfies the requirements for Early Retirement, as defined below, whether or not
actual retirement or separation from service has occurred on that date, the Award shall become
vested with respect to the number of the Restricted Stock Units subject to the Award multiplied by
a fraction, (A) the numerator of which is equal to the number of full months between such date and
the Grant Date, and (B) the denominator of which is 60, and the Award shall continue to vest on the
fifteenth day of each subsequent month with respect to an additional one-sixtieth of the number of
the Restricted Stock Units subject to the Award until the first day of the month in which the
Normal Vesting Date occurs. In the month that the Normal Vesting Date occurs, all Units not
previously vested shall become vested on the date of the month that corresponds to the Grant Date.

For purposes of this Agreement, the term “Normal Retirement” shall mean Participant’s
retirement from active employment by or service with the Company or any Subsidiary on or after age
65.

For purposes of this Agreement, the term “Early Retirement” shall mean Participant’s
retirement from active employment by or service with the Company or any Subsidiary on or after age
55 or greater, so long as Participant has, as of the date of such retirement, at least 10 years of
service with the Company or any Subsidiary.

Restricted Stock Units that have vested and are no longer subject to a substantial risk of
forfeiture are referred to herein as “Vested Units.” Restricted Stock Units that are not
vested and generally remain subject to forfeiture are referred to herein as “Unvested
Units.”

     (b) The vesting period of the Award set forth in Paragraph 3(a) may be adjusted by the
Committee to reflect the decreased level of employment during any period in which Participant is on
an approved leave of absence or is employed on a less than full time basis. Notwithstanding
anything to the contrary in this Paragraph 3, the Award shall be subject to earlier acceleration of
vesting and/or forfeiture and transfer as provided in this Agreement and the Plan. In no event may
any adjustment under this paragraph delay the Settlement Date for any Award beyond the Normal
Vesting Date or Separation of Service if earlier.

     (c) Subject to Paragraph 3(d) below, on the Normal Vesting Date, or, if earlier, the date
Participant’s employment with the Company terminates on or after he satisfied the requirements for
accelerated vesting by virtue of qualifying for Normal Retirement or Early Retirement, other than
any termination for Cause (as defined below), Participant shall be entitled to received one Share
(subject to adjustment under Paragraph 14 hereof and/or Section 13 of the Plan) for each Vested
Unit in accordance with the terms and provisions of this Agreement and the Plan. The Company will
transfer such Shares to Participant or Participant’s designee subject to (i) Participant’s
satisfaction of any required tax withholding obligations as set forth in

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Paragraph 7 and (ii) the restrictions, if any, imposed by the Company pursuant to Paragraph
15(f) or otherwise pursuant to the terms and conditions of the Plan and this Agreement.

     (d) The date upon which Shares are to be issued under Paragraph 3(c) is referred to as the
“Settlement Date.” The issuance of the Shares hereunder may be effected by the issuance of
a stock certificate, recording shares on the stock records of the Company or by crediting shares in
an account established on the Participant’s behalf with a brokerage firm or other custodian, in
each case as determined by the Company. Fractional shares will not be issued pursuant to the
Award.

     Notwithstanding the above, prior to a Change in Control (i) for administrative or other
reasons, the Company may from time to time temporarily suspend the issuance of Shares in respect of
earned Vested Units, (ii) the Company shall not be obligated to deliver any Shares during any
period when the Company determines that the delivery of Shares hereunder would violate any federal,
state or other applicable laws, and (iii) the date on which shares are issued hereunder may include
a delay in order to provide the Company such time as it determines appropriate to address tax
withholding and other administrative matters. Any delay pursuant to 3(d)(ii) shall only be until
such time that the Company determines that the delivery of shares would no longer violate any
federal, state or other applicable law. Notwithstanding the delay for administrative or other
reasons provided for in clauses (i) and (iii) above, in no event will such issuance of shares be
delayed beyond the later of the end of the calendar year or the 15th day of the third
month after the month in which the Settlement Date occurs, or such other time as permitted under
Section 409A of the Code and the regulations thereunder without the imposition of any additional
taxes under Section 409A of the Code.

     Notwithstanding any other provision of the Plan or this Agreement, the Plan and this Agreement
shall be construed or deemed to be amended as necessary to comply with the requirements of Section
409A of the Code to avoid the imposition of any additional or accelerated taxes or other penalties
under Section 409A of the Code. The Committee, in its sole discretion, shall determine the
requirements of Section 409A of the Code applicable to the Plan, and this Agreement and shall
interpret the terms of the Plan and this Agreement consistently therewith. Under no circumstances,
however, shall the Company have any liability under the Plan or this Agreement for any taxes,
penalties or interest due on amounts paid or payable pursuant to the Plan or this Agreement,
including any taxes, penalties or interest imposed under Section 409A of the Code.

4. Status of Participant

     Except as set forth in Paragraph 5, Participant shall have no rights as a stockholder
(including, without limitation, any voting rights with respect to the Shares subject to the Award)
with respect to either the Restricted Stock Units granted hereunder or the Shares underlying the
Restricted Stock Units, unless and until such Shares are issued in respect of Vested Units, and
then only to the extent of such issued Shares.

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5. Dividend Equivalents

     From and after the Grant Date and unless and until the Restricted Stock Units are forfeited or
otherwise transferred back to the Company, Participant will be entitled to receive cash payments
(subject to applicable withholding taxes) equal to all dividends and other distributions paid with
respect to the Shares subject to this Award, which dividend equivalent payments shall be paid on or
about the date such dividends or other distributions are payable to public stockholders, subject to
any applicable tax withholding requirements. Notwithstanding the foregoing, no such dividend
equivalents will be paid with respect to any dividend or other distribution declared by the Company
in connection with which the Award is adjusted pursuant to Paragraph 14 hereof and/or Section 13 of
the Plan. For avoidance of doubt, this ineligibility for a dividend equivalent will apply only to
the actual stock dividend in question (in the year of such distribution), and shall not adversely
affect the ability to receive subsequent regular cash dividends on the Award as so adjusted.

6. Effect of Termination of Employment; Change in Control

     (a) General. Except as provided in Paragraphs 6(c) or (d), upon a termination of
Participant’s employment with the Company or any Subsidiary for any reason, the Unvested Units
shall be forfeited by Participant and cancelled and surrendered to the Company without payment of
any consideration to Participant.

     (b) Cause. Upon a termination of Participant’s employment with the Company or any
Subsidiary for Cause (as defined below), all Vested Units and Unvested Units shall be forfeited by
Participant and cancelled and surrendered to the Company without payment of any consideration to
Participant.

     (c) Death; Disability. Upon a termination of Participant’s employment with the
Company or any Subsidiary by reason of Participant’s death or Disability all Unvested Units shall
vest as of the date of such termination of service and be issued as soon as administratively
possible. For the purposes of this Agreement, the term “Disability” shall mean a condition
under which Participant either (i) is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment that can be expected to result
in death or can be expected to last for a continuous period of not less than twelve months, or (ii)
is, by reason of any medically determinable physical or mental impairment that can be expected to
result in death or can be expected to last for a continuous period of not less than twelve months,
receiving income replacement benefits for a period of not less than three months under an accident
and health plan covering employees of the Company.

     (d) Change in Control. Upon a termination of Participant’s employment with the
Company or any Subsidiary by the Company or any Subsidiary without Cause (as defined below) or by
Participant for Good Reason (as defined below), in either case, within the 24-month period
immediately following a Change in Control, all Unvested Units shall vest as of the date of such
termination of employment and be issued as soon as administratively possible. For purposes of this
Agreement, the term “Cause” shall mean (i) Participant’s gross misconduct or fraud in the
performance of Participant’s duties to the Company or any Subsidiary; (ii) Participant’s conviction
or guilty plea or plea of nolo contendere with respect to any felony

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or act
of moral turpitude; (iii) Participant’s engaging in any material act of theft or material
misappropriation of Company property or (iv) Participant’s breach of the Company’s Code of Conduct
as such code may be revised from time to time. For purposes of this Agreement, the term “Good
Reason” shall mean (i) any material and adverse diminution in Participant’s title, duties, or
responsibilities; (ii) a reduction in Participant’s base salary or employee benefits (including
reducing Participant’s level of participation or target bonus award opportunity in the Company’s
incentive compensation plans) or (iii) a relocation of Participant’s principal place of employment
of more than 50 miles without the prior consent of Participant.

     (e) Specified Employees. Notwithstanding anything in this Agreement to the contrary,
with respect to any amounts that the Company determines to be deferred compensation within the
meaning of Section 409A of the Code, if the Company determines that as of the Settlement Date
Participant is a “specified employee” (as such term is defined under Section 409A of the Code), any
such Shares to be issued to Participant on a Settlement Date that occurs by reason of Participant’s
termination of employment with the Company other by reason of Participant’s death or Disability
will not be issued to Participant until the date that is six months following the Settlement Date
(or such earlier time permitted under Section 409A of the Code without the imposition of any
accelerated or additional taxes under Section 409A of the Code).

7. Withholding and Disposition of Shares

     (a) Generally. Participant is liable and responsible for all taxes owed in connection
with the Award, regardless of any action the Company takes with respect to any tax withholding
obligations that arise in connection with the Award. The Company does not make any representation
or undertaking regarding the treatment of any tax withholding in connection with the grant or
vesting of the Award or the subsequent sale of Shares issuable pursuant to the Award. The Company
does not commit and is under no obligation to structure the Award to reduce or eliminate
Participant’s tax liability.

     (b) Payment of Withholding Taxes. Prior to any event in connection with the Award
that the Company determines may result in any domestic or foreign minimum statutory tax withholding
obligation (i.e. federal, state, OASDI and HI and/or local) (the “Tax Withholding
Obligation”), Participant is required to arrange for the satisfaction of the amount of such Tax
Withholding Obligation in a manner acceptable to the Company. Participant and the Company agree
that tax withholding required as a result of cash dividend equivalents and/or periodic vesting will
be handled at the Company’s option by payroll deduction.

          (i) By Withholding Shares. Unless Participant elects to satisfy the Tax Withholding
Obligation by an alternative means in accordance with Paragraph 7(b)(ii), that occurs at the
Settlement Date, Participant’s acceptance of this Award constitutes Participant’s instruction and
authorization to the Company to withhold on Participant’s behalf the number of Shares from those
Shares issuable to Participant as a result of the occurrence of a Settlement Date as the Company
determines to be sufficient to satisfy the Tax Withholding Obligation.

          (ii) By Other Payment. At any time not less than five (5) business days before any
Tax Withholding Obligation arising as a result of the Settlement Date, Participant may notify the
Company of Participant’s election to pay Participant’s Tax Withholding Obligation by wire

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transfer, cashier’s check or other means permitted by the Company. In such case, Participant
shall satisfy his or her tax withholding obligation by paying to the Company on such date as it
shall specify an amount that the Company determines is sufficient to satisfy the expected Tax
Withholding Obligation by (i) wire transfer to such account as the Company may direct, (ii)
delivery of a cashier’s check payable to the Company, Attn: Executive Benefits, at the address set
forth in Paragraph 15(a), or such other address as the Company may from time to time direct, or
(iii) such other means as the Company may establish or permit. Participant agrees and acknowledges
that prior to the date the Tax Withholding Obligation arises, the Company will be required to
estimate the amount of the Tax Withholding Obligation and accordingly may require the amount paid
to the Company under this Paragraph 7(b)(ii) to be more than the minimum amount that may actually
be due and that, if Participant has not delivered payment of a sufficient amount to the Company to
satisfy the Tax Withholding Obligation (regardless of whether as a result of the Company
underestimating the required payment or Participant failing to timely make the required payment),
the additional Tax Withholding Obligation amounts shall be satisfied in the manner specified in
Paragraph 7(b)(i). Notwithstanding anything herein to the contrary, any Tax Withholding Obligation
that arises on a date other than a Settlement Date may only be satisfied pursuant to this Paragraph
7(b)(ii).

8. Excess Parachute Payments

     Notwithstanding anything in this Agreement to the contrary, if any of the payments in respect
of this Award, together with any other payments to which Participant has the right to receive from
the Company or any purchaser, successor, or assign, would constitute an “excess parachute payment”
(as defined in Code Section 280G), the payments pursuant to the Award and/or such other plans or
agreements shall be reduced to the largest amount as will result in no portion of such payments
being subject to the excise tax imposed by Code Section 4999, with any such reduction first applied
to payments pursuant to any Deferred Salary Agreement to which Participant is a party and then to
payments pursuant to Awards of Restricted Stock Units under the Plan.

9. Plan Controls

     The terms of this Agreement are governed by the terms of the Plan, as it exists on the Grant
Date and as the Plan is amended from time to time. In the event of any conflict between the
provisions of this Agreement and the provisions of the Plan, the terms of the Plan shall control,
except as expressly stated otherwise in this Agreement. The term “Section” generally refers to
provisions within the Plan; provided, however, the term “Paragraph” shall refer to a provision of
this Agreement.

10. Limitation on Rights; No Right to Future Grants; Extraordinary Item

     By entering into this Agreement and accepting the Award, Participant acknowledges that: (a)
Participant’s participation in the Plan is voluntary; (b) the value of the Award is an
extraordinary item which is outside the scope of any employment contract with Participant; (c) the
Award is not part of normal or expected compensation for any purpose, including without limitation
for calculating any benefits, severance, resignation, termination, redundancy, end of service
payments, bonuses, long-service awards, pension or retirement benefits or similar

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payments, and Participant will not be entitled to compensation or damages as a consequence of
Participant’s forfeiture as provided for in the Plan or this Agreement of any unvested portion of
the Award for any reason; and (d) in the event that Participant is not a direct employee of
Company, the grant of the Award will not be interpreted to form an employment relationship with the
Company or any Subsidiary and the grant of the Award will not be interpreted to form an employment
contract with Participant’s employer, the Company or any Subsidiary. The Company shall be under no
obligation whatsoever to advise Participant of the existence, maturity or termination of any of
Participant’s rights hereunder and Participant shall be responsible for familiarizing himself or
herself with all matters contained herein and in the Plan which may affect any of Participant’s
rights or privileges hereunder.

11. Committee Authority

     Any question concerning the interpretation of this Agreement or the Plan, any adjustments
required to be made under the Plan, and any controversy that may arise under the Plan or this
Agreement shall be determined by the Committee in its sole and absolute discretion. Such decision
by the Committee shall be final and binding.

12. Transfer Restrictions

     (a) General Restrictions. Any sale, transfer, assignment, encumbrance, pledge,
hypothecation, conveyance in trust, gift, transfer by bequest, devise or descent, or other transfer
or disposition of any kind, whether voluntary or by operation of law, directly or indirectly, of
(i) Unvested Units, (ii) Vested Units prior to the Settlement Date, or (iii) Shares subject to
such Unvested Units or Vested Units shall be strictly prohibited and void; provided, however,
Participant may assign or transfer the Award to the extent permitted under the Plan, provided that
the Award shall be subject to all the terms and condition of the Plan, this Agreement and any other
terms required by the Committee as a condition to such transfer.

     (b) Transfers by Covered Persons. If Participant is a “Covered Person” as defined in
the Arkansas Best Corporation Stock Ownership Policy for Directors and Executives (the “Policy”) as
amended from time to time, Participant agrees that he or she shall not sell or otherwise dispose or
transfer any shares from this Award or any other Award except to the extent permitted by the
Policy.

13. Suspension or Termination of Award

     Pursuant to Section 16 of the Plan, if at any time prior to Participant’s receipt of Shares
pursuant to the Award an Authorized Officer reasonably believes that Participant may have committed
an Act of Misconduct (as defined below), the Authorized Officer, the Committee or the Board may
suspend Participant’s rights to vest in any Restricted Stock Units, and/or to receive payment for
or receive Shares in settlement of Vested Units pending a determination of whether an Act of
Misconduct has been committed. In addition, pursuant to Section 16 of the Plan, if the Committee
or an Authorized Officer determines Participant has committed an act of embezzlement, fraud,
dishonesty, nonpayment of any obligation owed to the Company or any Subsidiary, breach of fiduciary
duty, violation of Company ethics policy or code of conduct, deliberate disregard of Company or
Subsidiary rules, or if Participant makes an unauthorized

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disclosure of any Company or Subsidiary trade secret or confidential information, solicits any
employee or service provider to leave the employ or cease providing services to the Company or any
Subsidiary, breaches any intellectual property or assignment of inventions covenant, engages in any
conduct constituting unfair competition, breaches any non-competition agreement, induces any
Company or Subsidiary customer to breach a contract with the Company or any Subsidiary or to cease
doing business with the Company or any Subsidiary, or induces any principal for whom the Company or
any Subsidiary acts as agent to terminate such agency relationship (any of the foregoing acts, an
“Act of Misconduct”), then except as otherwise provided by the Committee, (i) neither
Participant nor Participant’s estate nor transferee will be entitled to vest in or have the
restrictions on Unvested Units lapse, or otherwise receive payment or Shares in respect of Vested
Units and (ii) Participant will forfeit all undelivered Vested and Unvested Units. In making such
determination, the Committee or an Authorized Officer shall give Participant an opportunity to
appear and present evidence on his or her behalf at a hearing before the Committee or an
opportunity to submit written comments, documents, information and arguments to be considered by
the Committee. Any dispute by Participant or other person as to the determination of the Committee
must be resolved pursuant to Paragraph 15(j).

14. Adjustment of and Changes in the Stock

     In the event that the number of Shares increases or decreases through a reorganization,
reclassification, combination of shares, stock split, reverse stock split, spin-off, dividend
(other than regular, quarterly cash dividends), or otherwise, the Committee shall equitably adjust
the number of Shares subject to this Award to reflect such increase or decrease.

15. General Provisions

     (a) Notices. Whenever any notice is required or permitted hereunder, such notice must
be in writing and delivered in person or by mail (to the address set forth below if notice is being
delivered to the Company) or electronically. Any notice delivered in person or by mail shall be
deemed to be delivered on the date on which it is personally delivered, or, whether actually
received or not, on the third business day after it is deposited in the United States mail,
certified or registered, postage prepaid, addressed to the person who is to receive it at the
address that such person has theretofore specified by written notice delivered in accordance
herewith. Any notice given by the Company to Participant directed to Participant at Participant’s
address on file with the Company shall be effective to bind Participant and any other person who
shall have acquired rights under this Agreement. The Company or Participant may change, by written
notice to the other, the address previously specified for receiving notices. Notices delivered to
the Company in person or by mail shall be addressed as follows:

	 	 	 	 	 
	Company:	 	Arkansas Best Corporation
	 

	 	Attn:
	 	Executive Benefits
	 

	 	 	 	P.O. Box 10048
	 

	 	 	 	Fort Smith, AR 72917-0048
	 

	 	 	 	Fax: (479) 494-6928

     (b) No Waiver. No waiver of any provision of this Agreement will be valid unless in
writing and signed by the person against whom such waiver is sought to be enforced, nor will

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failure to enforce any right hereunder constitute a continuing waiver of the same or a waiver
of any other right hereunder.

     (c) Undertaking. Participant hereby agrees to take whatever additional action and
execute whatever additional documents the Company may deem necessary or advisable in order to carry
out or effect one or more of the obligations or restrictions imposed on either Participant or the
Award pursuant to the express provisions of this Agreement.

     (d) Entire Contract. This Agreement and the Plan constitute the entire contract
between the parties hereto with regard to the subject matter hereof. This Agreement is made
pursuant to the provisions of the Plan and will in all respects be construed in conformity with the
express terms and provisions of the Plan.

     (e) Successors and Assigns. The provisions of this Agreement will inure to the
benefit of, and be binding on, the Company and its successors and assigns and Participant and
Participant’s legal representatives, heirs, legatees, distributees, assigns and transferees by
operation of law, whether or not any such person will have become a party to this Agreement and
agreed in writing to join herein and be bound by the terms and conditions hereof.

     (f) Securities Law Compliance. The Company may impose such restrictions, conditions
or limitations as it determines appropriate as to the timing and manner of any resales by
Participant or other subsequent transfers by Participant of any Shares issued as a result of or
under this Award, including without limitation (i) restrictions under an insider trading policy,
(ii) restrictions that may be necessary in the absence of an effective registration statement under
the Securities Act of 1933, as amended, covering the Award and/or the Shares underlying the Award
and (iii) restrictions as to the use of a specified brokerage firm or other agent for such resales
or other transfers. Any sale of the Shares must also comply with other applicable laws and
regulations governing the sale of such shares.

     (g) Information Confidential. As partial consideration for the granting of the Award,
Participant agrees that he or she will keep confidential all information and knowledge that
Participant has relating to the manner and amount of his or her participation in the Plan;
provided, however, that such information may be disclosed as required by law and may be given in
confidence to Participant’s spouse, tax and financial advisors, or to a financial institution to
the extent that such information is necessary to secure a loan.

     (h) Electronic Delivery. The Company may, in its sole discretion, decide to deliver
any documents related to any awards granted under the Plan by electronic means or to request
Participant’s consent to participate in the Plan by electronic means. Participant hereby consents
to receive such documents by electronic delivery and, if requested, to agree to participate in the
Plan through an on-line or electronic system established and maintained by the Company or another
third party designated by the Company, and such consent shall remain in effect throughout
Participant’s term of employment or service with the Company and thereafter until withdrawn in
writing by Participant.

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     (i) Governing Law. Except as may otherwise be provided in the Plan, the provisions of
this Agreement shall be governed by the laws of the State of Delaware, without giving effect to
principles of conflicts of law.

     (j) Arbitration of Disputes. Pursuant to Section 23 of the Plan, Participant hereby
agrees as follows:

          (i) If Participant or Participant’s transferee wishes to challenge any action of the Committee
or the Plan Administrator, the person may do so only by submitting to binding arbitration with
respect to such decision. The review by the arbitrator will be limited to determining whether
Participant or Participant’s transferee has proven that the Committee’s decision was arbitrary or
capricious. This arbitration will be the sole and exclusive review permitted of the Committee’s
decision. Participant explicitly waives any right to judicial review.

          (ii) Notice of demand for arbitration will be made in writing to the Committee within thirty
(30) days after written notice to Participant of the applicable decision by the Committee. The
arbitrator will be selected by mutual agreement of the Committee and Participant. If the Committee
and Participant are unable to agree on an arbitrator, the arbitrator will be selected by the
American Arbitration Association. The arbitrator, no matter how selected, must be neutral within
the meaning of the Commercial Rules of Dispute Resolution of the American Arbitration Association.
The arbitrator will administer and conduct the arbitration pursuant to the Commercial Rules of
Dispute Resolution of the American Arbitration Association. Each side will bear its own fees and
expenses, including its own attorney’s fees, and each side will bear one half of the arbitrator’s
fees and expenses; provided, however, that the arbitrator will have the discretion to award the
prevailing party its fees and expenses. The arbitrator will have no authority to award exemplary,
punitive, special, indirect, consequential, or other extracontractual damages. The decision of the
arbitrator on the issue(s) presented for arbitration will be final and conclusive and any court of
competent jurisdiction may enforce it.

     (k) Section 409A of the Code. This Award is intended to comply, to the extent
applicable, with the distribution and other requirements of Section 409A of the Code and, as such,
shall be interpreted in a manner consistent therewith. Notwithstanding anything herein or in the
Plan to the contrary, the Company may, in its sole discretion, amend this Award (which amendment
shall be effective upon its adoption or at such other time designated by the Company) as may be
necessary to avoid the imposition of the additional tax under Section 409A of the Code or otherwise
comply with Section 409A and the regulations thereunder; provided, however, that any such amendment
shall be implemented in such a manner as to preserve, to the greatest extent possible, the terms
and conditions of this Award as in existence immediately prior to any such amendment.

     (l) Board Policies and Guidelines. Participant acknowledges that this Award is
subject to certain policies and guidelines as may be from time to time enacted by the Board of
Directors of the Company including guidelines for the Recoupment of Incentive Compensation adopted
by the Board of Directors of the Company effective October 18, 2007.

[signature page follows]

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

	 	 	 	 	 
	 	ARKANSAS BEST CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	PARTICIPANT

 	 
	 	
 	 
	 	[Participant] 	 
	 	 	 
	 

11exv10w3

Exhibit 10.3

EXECUTION VERSION

FORBEARANCE AGREEMENT

               FORBEARANCE AGREEMENT, dated as of April 22, 2009 (this “Agreement”) among DHS HOLDING
COMPANY, a Delaware corporation (“Holdings”), DHS DRILLING COMPANY, a Colorado corporation
(“Borrower”) and LEHMAN COMMERCIAL PAPER INC., as administrative agent (in such capacity, the
“Administrative Agent”) and as the Lender (in such capacity, the “Lender”) under that certain
Credit Agreement (as defined below).

W I T N E S S E T H:

               WHEREAS, the Borrower, Holdings, the Lender and the Administrative Agent are parties to that
certain Amended and Restated Credit Agreement, dated as of August 15, 2008, as amended by that
certain Amendment No. 1, dated as of September 19, 2008 (as further amended, modified or
supplemented from time to time in accordance with its terms, the “Credit Agreement”; capitalized
terms used but not defined herein shall have the respective meanings ascribed to such terms in the
Credit Agreement);

               WHEREAS, the Borrower has failed in its performance of certain provisions of the Credit
Agreement as further described herein, such failure constituting a default under the Credit
Agreement;

               WHEREAS, the Lender failed to fund a borrowing request in the amount of $16,000,000 submitted
by the Borrower under the Credit Agreement on September 23, 2008 (“Lender’s Breach”); and

               WHEREAS, the Borrower and Holdings have requested that the Lender and the Administrative Agent
forbear, and the Lender and the Administrative Agent have agreed, subject to the terms and
conditions of this Agreement, to forbear, from exercising certain rights under the Credit Agreement
and the other Loan Documents during the Forbearance Period (as defined below).

               NOW, THEREFORE, in consideration of the premises and the agreements hereinafter contained, the
parties hereto agree as follows:

               1.       Forbearance.

               (a)     Acknowledgement. As of the date hereof, each of the Loan Parties acknowledge that
the failure by the Borrower to have furnished (a) financial statements pursuant to Section 5.1(a)
of the Credit Agreement for the fiscal period ended December 31, 2008, (including audit reports in
respect thereof without a “going concern” or like qualification) and (b) the related deliverables
as required by Section 5.3(a) of the Credit Agreement constitutes a default under the Credit
Agreement (the “Forbearance Default”). By acknowledging the Forbearance Default, the Loan Parties
do not waive or release any defenses available at law or equity as a result of Lender’s Breach.

               (b)     Forbearance Period. (i) During the period from the Effective Date (as defined
below) until May 15, 2009 (the “Forbearance Period”), each of the Administrative Agent and the
Lender hereby agrees to forbear (the “Forbearance”) from exercising its rights
and remedies under the Credit Agreement and the other Loan Documents arising as a result of
the Forbearance Default; provided, however, that upon the occurrence of any Event
of Default other than the Forbearance Default, including the Events of Defaults set forth in
Section 1(c) hereof,

 

 

the Forbearance Period shall automatically and immediately terminate, and the Administrative Agent
and the Lender shall be entitled to exercise any and all of their rights and remedies under the
Credit Agreement, the other Loan Documents and applicable law, without further notice other than as
required therein. Upon termination of the Forbearance Period, (A) the forbearance shall
automatically terminate and be of no further force or effect without any further action by the
Lender, (B) the Forbearance Default is, without further action, reinstated and shall have the same
force and effect as if the Forbearance had not been agreed to by the parties hereto and (C) subject
to the terms of the Credit Agreement, the Loan Documents and applicable law, the Lender may
thereafter, without limitation, sue, ask for or demand from the Loan Parties payment of the
Obligations due and payable to such Lender, in whole or in part, and otherwise enforce any of its
rights and remedies (including rights of acceleration and foreclosure) provided for under the
Credit Agreement, the Loan Documents or applicable law against any party, subject to any defenses
available at law or equity as a result of Lender’s Breach. Each of the Loan Parties agrees that,
subject to the agreement of the Lender to forbear from exercising certain of their rights and
remedies as and to the extent expressly set forth in this Agreement, all rights and remedies of the
Lender under the Credit Agreement, the Loan Documents or applicable law with respect to such Loan
Party shall continue to be available to the Lender from and after the Effective Date.

               (ii) It is understood and agreed that interest shall accrue from the Effective Date through
the remainder of the Forbearance Period on the outstanding Obligations at the applicable default
rates provided for pursuant to the Credit Agreement.

               (c)     Additional Events of Default. The following events shall constitute Events of
Default under the terms of the Credit Agreement and the other Loan Documents:

               (i) any of the Borrower, Holdings or the other Loan Parties shall pledge, encumber, charge,
assign or grant a security interest in, or encumbrance of any kind on, any Collateral; or

               (ii) any of the Borrower, Holdings or the other Loan Parties shall enter into any arrangement
to provide priority or preference with respect thereto, in connection with securing or obtaining
debtor-in-possession financing; or

               (iii) any of the Loan Parties shall pay any management fees to Delta Petroleum Corporation
(“Parent”) or make any other payments, distributions or dividends in respect of stock held by
Parent in any Loan Party; or

               (iv) Holdings, the Borrower or any other Loan Party shall fail to perform or observe any term,
covenant or agreement set forth in this Agreement; or

               (v) any representation or warranty made or deemed made by any Loan Party herein or any
representation or warranty made or deemed made hereafter by any Loan Party in any Loan Document or
which is made in connection with this Agreement or any other Loan Document shall prove to have been
incorrect or misleading in any material respect on or as of the date made or deemed made.

               (d)     No Waiver. Any other provision of this Agreement notwithstanding, the Loan
Parties do not waive or release any rights or defenses available to them as a result of Lender’s
Breach.

2

 

               2.      Forbearance Requirements. The Borrower, Holdings and the other Loan Parties agree
to the following as consideration for the Forbearance (the “Forbearance Requirements”):

               (a)     Within 3 days following the Effective Date, the Loan Parties shall deliver to the Lender
updated versions of the Loan Parties’ budget, business/operating plan and cash flow forecast and
analysis, all in form and substance satisfactory to the Administrative Agent.

               (b)     Holdings and Borrower shall deliver to the Lender and the Administrative Agent, on a
weekly basis, an update as to the Loan Parties’ analysis, progress and results, regarding the Loan
Parties’ business/operating plan and cash flow, their efforts to provide the Borrower and Holdings
with additional liquidity and recover their accounts receivable.

               (c)     On any date during the Forbearance Period any Loan Party or Subsidiary of a Loan Party
shall receive any payment in respect of accounts receivable, then, on such date of receipt and
without any requirement of prior notice, the Borrower shall prepay (or cause to be prepaid) the
principal amount of the Loans in an amount equal to 75% of such payment in respect of accounts
receivable, such prepayment being applied (notwithstanding anything to the contrary set forth in
the Credit Agreement) solely to the repayment of the outstanding principal amount of Term B Loans
on such date; it being understood that any prepayment in respect of this Section 2(c) shall be made
without premium or penalty, including the Applicable Premium or Make Whole Price or any payment of
any LIBOR funding breakage costs in accordance with Section 2.12 of the Credit Agreement.

               (d)     Holdings and Borrower shall permit any third party financial consultant or advisor acting
on behalf of the Lender or Administrative Agent to inspect the property of Holdings and its
Subsidiaries and to conduct such other activity as contemplated in Section 5.7(b) of the Credit
Agreement.

               3.      Representations and Warranties. Each of the Borrower, Holdings and the other Loan
Parties represents and warrants as follows (which representations and warranties shall survive the
execution and delivery of this Agreement):

               (a)     Each of the Borrower, Holdings and the other Loan Parties has taken all necessary action
to authorize the execution, delivery and performance of this Agreement.

               (b)     This Agreement constitutes the legal, valid and binding obligation of each of the
Borrower, Holdings and the other Loan Parties, as applicable, enforceable against them in
accordance with their respective terms, subject to applicable bankruptcy, reorganization,
insolvency, moratorium and similar laws affecting the enforcement of creditors’ rights generally
and to general equity principles.

               (c)     No consent or approval of any person, firm, corporation or entity, and no consent,
license, approval or authorization of any governmental authority is or will be required in
connection with the execution, delivery, performance, validity or enforcement of this Agreement,
other than any such consent, approval, license or authorization which has been obtained and remains
in full force and effect or where the failure to obtain such consent, approval, license or
authorization would not result in a Material Adverse Effect.

               (d)     After giving effect to this Agreement, each of the Borrower, Holdings and the other Loan
Parties is in compliance with all of the various covenants and agreements set

3

 

forth in the Credit Agreement and each of the other Loan Documents, other than the Forbearance
Default.

               (e)     After giving effect to this Agreement and the agreements to be delivered in connection
herewith, no event has occurred and is continuing which constitutes a Default or an Event of
Default, other than the Forbearance Default.

               (f)     After giving effect to this Agreement and the agreements to be delivered in connection
herewith, all representations and warranties contained in the Credit Agreement and each of the
other Loan Documents are true and correct in all material respects as of the date hereof, except to
the extent that any representation or warranty relates to a specified date, in which case such are
true and correct in all material respects as of the specific date to which such representations and
warranties relate, and except to the extent of any inconsistency in such representations or
warranties arising directly out of the Forbearance Default.

               (g)     Each report delivered and any information provided pursuant to or in connection with this
Agreement has and will be prepared on a reasonable basis and in good faith, and has/will be based
on assumptions believed by the applicable Loan Party to be reasonable at the time made and upon the
best information available to such Loan Party, and such Loan Party is not aware of any facts or
information that would lead the applicable party to believe that any such information or report is
incorrect or misleading in any material respect.

               4.      Fees and Expenses. (a) The Borrower and Holdings agree to pay to the Lender a
forbearance fee in an aggregate amount equal to $250,000, such fee to be applied pro rata according
to the respective Term A Loan Percentages or Term B Loan Percentages of the Lender, and which fee
shall be due and payable on the Effective Date; and (b) The Borrower and Holdings further agree to
pay on demand all costs and expenses, including reasonable attorneys’ fees, of the Administrative
Agent and the Lender incurred in connection with this Agreement.

               5.      Effective Date. This Agreement shall not become effective unless and until (the
latest date upon which such occurs, the “Effective Date”):

               (a)     this Agreement shall have been duly executed and delivered by the Borrower, Holdings, the
other Loan Parties, the Lender and the Administrative Agent;

               (b)     the Borrower and Holdings shall have paid the fee referred to in Section 4(a) hereof;

               (c)     the Borrower shall have prepaid (or cause to be prepaid) the principal amount of the Loans
in an amount equal to $1,250,000, such prepayment being applied (notwithstanding anything to the
contrary set forth in the Credit Agreement) solely to the repayment of the outstanding principal
amount of Term B Loans on such date; it being understood that any prepayment in respect of this
Section 5(c) shall be made without premium or penalty, including the Applicable Premium or Make
Whole Price; and

               (d)     the Lender shall have received such other certificates, documents and agreements as the
Lender may reasonably request.

4

 

               6.      Reference and Continued Effectiveness of the Loan Documents.

               (a)     The term “Agreement”, “hereof”, “herein” and similar terms as used in the Credit
Agreement, and references in the other Loan Documents to the Credit Agreement, shall mean and refer
to, from and after the Effective Date, the Credit Agreement as affected by this Agreement.

               (b)     The Borrower hereby agrees that all of the covenants and agreements contained in the
Credit Agreement and the Loan Documents are hereby ratified and confirmed in all respects.

               (c)     This Agreement constitutes a Loan Document.

               7.      Counterparts. This Agreement may be executed in counterparts, each of which shall
be an original, and all of which, taken together, shall constitute a single instrument. Delivery
of an executed counterpart of a signature page to this Agreement by telecopier shall be effective
as delivery of a manually executed counterpart of this Agreement.

               8.      Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York without giving effect to the conflict of laws provisions
thereof.

               9.      Limitation. Each party hereto hereby agrees that this Agreement does not impose on
Lehman Commercial Paper Inc. affirmative obligations or indemnities not existing, as of the date of
its petition commencing its proceeding under chapter 11 of the United States Code, and that could
give rise to administrative expense claims.

               10.     Indemnity. The Borrower, Holdings and the other Loan Parties further agree,
jointly and severally, to defend, protect, indemnify and hold harmless the Administrative Agent and
the Lender, each of their respective Affiliates and their respective officers, directors,
employees, attorneys and agents (collectively the “Indemnitees”) from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs,
expenses of any kind or nature whatsoever (including, without limitation, the reasonable fees and
expenses of counsel for such Indemnitees in connection with any investigative, administrative or
judicial proceeding, whether or not such Indemnitees shall be designated as a party thereto),
imposed on, incurred by, or asserted against such Indemnitees in any manner relating to or arising
out of this Agreement or any other Loan Document (collectively the “Indemnified Matters”);
provided, however, that neither the Borrower, Holdings or any Loan Party shall have
an obligation to an Indemnitee hereunder with respect to Indemnified Matters caused or resulting
from (a) a dispute among the Lender or a dispute between the Lender and the Administrative Agent,
or (b) the willful misconduct or gross negligence of such Indemnitee, or (c) defense of claims by
the Loan Parties relating to Lender’s Breach (but only if the Loan Parties are the prevailing party
with respect to such claims). If the undertaking to indemnify, pay and hold harmless set forth in
the preceding sentence may be unenforceable because it violates any law or public policy, the
Borrower, Holdings and the other Loan Parties shall contribute the maximum portion which it is
permitted to pay and satisfy under the applicable law, to the payment and satisfaction of all
Indemnified Matters incurred by Indemnities. This Section 10 shall survive the payment of the
Obligations and the termination of this Agreement or any other Loan Document.

[Signatures Pages Follow]

5

 

               IN WITNESS WHEREOF the parties hereto have caused this Agreement to be duly executed by their
respective officers as of the date first written above.

	 	 	 	 	 
	 	DHS DRILLING COMPANY, as the Borrower

 	 
	 	By:  	/s/ Gregory D. Tubbs
 	 
	 	 	Name:  	Gregory D. Tubbs 	 
	 	 	Title:  Executive Vice President   	 
	 
	 
	 	DHS HOLDING COMPANY, as Holdings

 	 
	 	By:  	/s/ Gregory D. Tubbs
 	 
	 	 	Name:  	Gregory D. Tubbs 	 
	 	 	Title:  Executive Vice President   	 
	 

[Signature Page to Agreement]

 

 

	 	 	 	 	 
	 	LEHMAN COMMERCIAL PAPER, INC,
 as Administrative
Agent and Lender

 	 
	 	By:  	/s/ Jack McCarthy
 	 
	 	 	Name:  	Jack McCarthy 	 
	 	 	Title:  Vice President 	 
	 

[Signature Page to Agreement]

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