Document:

EX-10.5

Exhibit 10.5

FORM
OF
AUTONATION, INC.

RESTRICTED STOCK AGREEMENT

     THIS RESTRICTED STOCK AGREEMENT (this “Agreement”) is entered into as of                           (the “Date
of Grant”), by and between AUTONATION, INC., a Delaware corporation (together with its subsidiaries
and affiliates, the “Company”), and the designated Company associate (“Grantee”) who accepts the
award of Restricted Stock (as defined in Section 2 below) made hereby, and agrees to be bound by
this Agreement, through Merrill Lynch’s Benefits OnLine System (the “BOL System”). If Grantee does
not accept this award on the BOL System by                           (the “Acceptance Deadline”), the Restricted
Stock shall be immediately forfeited and surrendered to the Company, and such Restricted Stock
shall cease to remain outstanding.

RECITALS

     A. The Company has established the AutoNation, Inc. 2008 Employee Equity and Incentive Plan
(the “Plan”) in order to provide incentive to valued employees of the Company; and

     B. The Executive Compensation Subcommittee of the Board of Directors (the “Board”) of the
Company has approved the grant to the Grantee of Restricted Stock on the terms and conditions set
forth in this Agreement.

TERMS OF AGREEMENT

     NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, and intending to be legally bound hereby, the parties hereby agree as follows:

     1. Definitions. Schedule 1 sets forth a Glossary of terms that are used
herein. All capitalized terms used but not defined in this Agreement shall have the meanings given
to them in the Glossary or the Plan.

     2. Award of Restricted Stock Pursuant to Plan. Subject to the terms and conditions,
including the restrictions and risk of forfeiture, set forth herein and in the Plan, Grantee is
hereby granted under the Plan an award (“Award”) of the number of shares of common stock, $0.01 par
value, of the Company (the “Shares” or “Restricted Stock”) set forth for Grantee on the BOL System
under the Grant Information tab (for the Date of Grant).

     3. Certificate. Reasonably promptly after Grantee accepts the Award, the Company, in
its sole discretion, shall either (i) issue a stock certificate, registered in the name of the
Grantee evidencing the Shares and bearing an appropriate legend specifying that such Shares are not
transferable and are subject to the provisions of the Plan and this Agreement, or (ii) establish
and maintain, or cause a representative to establish and maintain, an account to record the Shares
until such Shares become vested or are forfeited.

 

 

     4. Withholding of Shares for Taxes. The Company shall withhold an amount equal to the
federal, state and/or local taxes due at the time the Grantee has taxable income in respect of the
Shares (or, if the Grantee makes an election under Section 83(b) of the Internal Revenue Code of
1986, as amended (the “Code”) in connection with the Award, on or about the Date of Grant). Unless
otherwise determined by the Company, such withholding shall be satisfied by the Company withholding
Shares having a fair market value (as determined by the Company) equal to the amount of tax
required to be withheld. The Grantee understands that the Grantee (and not the Company) shall be
responsible for any tax liability of the Grantee that may arise as a result of the transactions
contemplated by this Agreement.

     5. Rights of Ownership and Restrictions on Transfer. Unless and until the Shares are
forfeited, notwithstanding the restrictions and risk of forfeiture set forth herein and in the
Plan, the Grantee shall have the right to vote the Shares and, provided Grantee has accepted the
Award by the Acceptance Deadline, to receive dividends on the Shares. The Shares granted hereby
shall not be transferable until vesting as set forth in Paragraph 6 below, except by will or the
laws of descent and distribution.

     6. Vesting. Except as otherwise provided herein or in the Plan, the Shares shall
become nonforfeitable and fully transferable (shall “vest”) in four equal annual installments, 25%
on June 1,                     , 25% on June 1,                     , 25% on June 1,                     , and 25% on June 1,        
              (the “Vesting
Dates”), subject to the Grantee remaining continuously employed with the Company on such dates.

     7. Forfeiture of Unvested Stock on Termination of Employment. Except as otherwise
provided herein or in the Plan, upon the termination of employment of the Grantee with the Company
for any reason, all outstanding unvested Shares held by the Grantee at the time of such termination
shall be immediately forfeited and surrendered to the Company, and any stock certificates issued
with respect to such unvested Shares shall be cancelled and such unvested Shares shall cease to
remain outstanding.

     8. Vesting on Death or Disability. Notwithstanding anything in Paragraph 7 to the
contrary, if a Grantee’s termination of employment is by reason of the death or “permanent and
total disability” (within the meaning of Section 22(e)(3) of the Code) of the Grantee, all Shares
held by the Grantee at the time of such termination shall become immediately vested as provided in
Section 13 of the Plan.

     9. Vesting on Change in Control. In the event of a Change in Control (as defined in
Section 10(e) of the Plan), all Shares held by the Grantee at the time of such Change in Control
shall become immediately vested as provided in Section 10(e) of the Plan, except as otherwise
provided in this Paragraph 9. The Grantee agrees that, notwithstanding anything herein to the
contrary or the terms of the Plan or any other Company plan and so long as the terms and conditions
set forth in the Consents are applicable (or such terms and conditions have been waived, modified
or eliminated with the approval of the Board), neither (A) the acquisition by ESL of either (x)
direct or indirect beneficial ownership of 50% or more of the Common Stock or (y) direct or
indirect beneficial ownership of more than 50% of the total combined voting power with respect to
the election of directors of the issued and outstanding stock of the Company nor (B) ESL having the
power (whether as a result of stock ownership, revocable or irrevocable proxies, contract or
otherwise) or ability to elect or cause the election of directors

2

 

consisting at the time of such election of a majority of the Board, shall constitute a Change
in Control with respect to the Shares granted pursuant to this Agreement or constitute a “change in
control” with respect to any other restricted shares of common stock or stock options of the
Company held by Grantee as of the date hereof or granted to Grantee in the future under the Plan or
any other Company plan; provided, however, that the following events shall
constitute a Change in Control for purposes of this Agreement and constitute a “change in control”
with respect to any other restricted shares of common stock or stock options of the Company held by
Grantee as of the date hereof or granted to Grantee in the future under the Plan or any other
Company plan: (i) a transaction in which the Company is acquired by or merges, consolidates or
combines with, or is merged, consolidated or combined with, ESL or any entity controlled by ESL; or
(ii) a “Rule 13e-3 transaction” with ESL, as such term is defined in Rule 13e-3 of the Securities
Exchange Act of 1934.

     10. Termination of Restricted Stock if Employment is Terminated Due to a Change in
Ownership of Subsidiary or Affiliate or Spin-Off. For the purpose of clarification, if Grantee
ceases to be an employee of the Company or any Subsidiary or Affiliate of the Company following a
Change in Ownership or Spin-Off of the Subsidiary, Affiliate or business unit by which Grantee is
employed (whether because of the termination of employment of Grantee or because the corporation or
other entity by which Grantee was employed ceases to be a Subsidiary or Affiliate of the Company or
otherwise), then all outstanding unvested Shares held by the Grantee at the time of such
termination shall be immediately forfeited and surrendered to the Company, and any stock
certificates issued with respect to such unvested Shares shall be cancelled and such unvested
Shares shall cease to remain outstanding.

     11. Retirement. Upon the Grantee attaining age 55 and completion of 6 years of
service with the Company or a Subsidiary or an Affiliate as set forth in Section 13 of the Plan
(“Retirement Eligibility”) or if the Grantee has attained Retirement Eligibility as of the Date of
Grant, all Shares granted hereunder to the Grantee shall become immediately vested (and,
accordingly, shall become subject to share withholding under Paragraph 4 of this Agreement),
although such Shares (except for Shares to be withheld in accordance with Paragraph 4) shall remain
nontransferable until the earliest of (a) the Grantee’s termination of employment, (b) the Vesting
Date on which such Shares would otherwise have become vested, or (c) the occurrence of any event
that would have caused acceleration of vesting under the terms of the Plan or this Agreement. For
the purpose of clarification, in the event the Grantee has attained Retirement Eligibility, the
vesting schedule set forth in Paragraph 6 shall apply to the number of Shares remaining after
Company withholding in accordance with Paragraph 4. Notwithstanding the foregoing, for the purpose
of clarification, upon a termination of the Grantee’s employment by the Company for Cause after
Retirement Eligibility and prior to the earlier of the Vesting Date on which such Shares would
otherwise have become vested or the occurrence of any event that would have caused acceleration of
vesting under the terms of the Plan or this Agreement, the Shares that have not yet become
transferable pursuant to this Paragraph shall be forfeited and surrendered to the Company, and any
stock certificates issued with respect to such Shares shall be cancelled and such Shares shall
cease to remain outstanding.

     12. Grantee Bound by Terms of Plan. Grantee hereby acknowledges receipt of a copy of
the Plan and agrees to be bound by all of the terms, conditions and provisions thereof.

3

 

     13. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Florida, without regard to its principles of conflict of laws. The
parties agree that any action, suit or proceeding arising out of or relative to this Agreement or
the relationship of the Grantee and the Company shall be instituted only in the State or federal
courts located in Broward County in the State of Florida, and each party waives any objection that
such party may now or hereafter have to such venue or jurisdiction in any action, suit or
proceeding brought in any State or federal court located in Broward County, Florida. The Grantee
affirms that he or she has sufficient contact with Florida such that Grantee would reasonably
anticipate being hailed into said courts in Florida regarding this Agreement or any other contract
or issues arising between the parties hereto. Any and all service of process and any other notice
in any such action, suit or proceeding shall be effective against the Grantee if given by mail
(registered or certified where possible, return receipt requested), postage prepaid, mailed to
Grantee at the address set forth in the Company’s records, or shall be effective against the
Company if given in accordance with Paragraph 16 hereof.

     14. No Right to Continued Employment. Nothing contained in this Agreement shall
confer on Grantee the right to continue in the employment of the Company or otherwise shall impede
the Company’s ability to terminate Grantee’s employment.

     15. Severability. The invalidity or enforceability of any one or more provisions of
this Agreement shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect.

     16. Notices. All notices, requests, demands, claims and other communications by
Grantee with respect to this award of Restricted Stock shall be in writing and shall be deemed
given if delivered by certified or registered mail (first class postage prepaid), guaranteed
overnight delivery or facsimile transmission if such transmission is confirmed by delivery by
certified or registered mail (first class postage prepaid) or guaranteed overnight delivery, to the
following address (or to such other addresses or telecopy numbers which the Company shall designate
in writing to the Grantee from time to time):

	 	 	 
	 

	 	AutoNation, Inc.

110 S.E. 6th Street

Fort Lauderdale, Florida 33301

Attention: Compensation and Equity Analyst

Telecopy: (954) 769-3852
	 
	 	 
	with a copy to:

	 	AutoNation, Inc.

110 S.E. 6th Street

Fort Lauderdale, Florida 33301

Attention: General Counsel

Telecopy: (954) 769-6340

     17. Binding Effect. This Agreement shall not constitute a binding obligation of the
Company or the Grantee unless it is accepted by the Grantee on the
BOL System by
                    . Subject
to the limitations stated above and in the Plan, this Agreement shall be binding upon and inure to
the benefit of the successors and assigns of the Company and to Grantee’s heirs,

4

 

legatees, distributees and personal representatives. No handmarked or interlineated
modifications shall constitute a part of this Agreement.

     18. Conflict with Terms of the Plan. In the event that any provision of this
Agreement conflicts with any provision of the Plan and cannot reasonably be interpreted to be a
clarification of such provision of the Plan or an exercise of the authority granted to the Plan’s
administrator pursuant to the Plan, the provision of the Plan shall govern and be controlling. For
the purpose of clarification, Paragraphs 9, 10 and 11 hereof shall govern notwithstanding any
contrary provisions of the Plan.

     19. Integration. Except for the provisions relating to restricted stock contained in that
certain Restrictive Covenants and Confidentiality Agreement of even date herewith by and between
the Company and Grantee, this Agreement supersedes all prior agreements and understandings between
the Company and the Grantee relating to the grant of the Restricted Stock, whether oral or
otherwise.

5

 

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

	 	 	 	 	 
	By:
	 	AUTONATION, INC.
	 	GRANTEE:

	 	 	 	 	 

	 	 	

 

Name:

Title:
	 	By accepting the Award on the BOL System,
Grantee agrees to be bound by the terms of
this Restricted Stock Agreement and agrees
that the Shares are subject to the terms
and conditions set forth herein.

 

 

RESTRICTED STOCK AGREEMENT

SCHEDULE 1

GLOSSARY

The terms below shall have the following meanings when used throughout the Agreement. Capitalized
terms that are used but not defined in the Agreement or this Glossary shall have the meanings given
to them in the Plan.

     “Affiliate” shall mean a Subsidiary or any other entity of which on the relevant date
at least a majority of the Voting Securities are at the time owned directly or indirectly by
the Company or any Subsidiary.

     “Cause” shall have the meaning given to it in the Plan.

     “Change in Ownership” A Change in Ownership shall be deemed to have occurred with
respect to a Grantee if (i) as a result of a merger, consolidation, reorganization, business
combination, sale, exchange or other disposition of Voting Securities or other transaction,
the corporation or other entity by which Grantee is employed ceases to be a Subsidiary or
Affiliate of the Company and, immediately after such transaction, the persons who were
stockholders of the Company immediately before such transaction do not own at least a
majority of the Voting Securities of such corporation or other entity, or (ii) there is a
sale or other disposition of all or substantially all of the assets of the trade, business,
corporation or other entity by which Grantee is employed and, immediately after such
transaction, the Company or the persons who were stockholders of the Company immediately
before such transaction do not own at least a majority of the Voting Securities of a
corporation or other entity that acquires such assets or engages in such trade or business.
Notwithstanding the foregoing, a Change in Ownership shall not include a Change in Control
(as defined in the Plan) of the Company.

     “Consents” shall mean the Honda Consent and the Toyota Consent, collectively.

     “ESL” shall mean ESL Investments, Inc. and any person, entity or group that directly,
or indirectly through one or more intermediaries, controls, or is controlled by, or is under
common control with, ESL Investments, Inc. (for the avoidance of doubt, other than the
Company and its subsidiaries).

     “Honda Consent” shall mean that certain letter agreement, dated as of January 28, 2009,
among American Honda Motor Co., Inc., the Company and the ESL Parties (as defined in the
Honda Consent).

     “Spin-Off” A Spin-Off shall be deemed to have occurred with respect to a Grantee if
the corporation or other entity by which Grantee was employed, or the entity that succeeds
to the business unit or trade by which Grantee was employed, is not a Subsidiary or
Affiliate of the Company following a pro rata distribution or dividend of

 

 

its capital stock to the persons who were stockholders of the Company immediately
before such transaction and, immediately after such transaction, such corporation or other
entity has a class of Voting Securities that is traded publicly on a national securities
exchange.

     “Subsidiary” shall have the meaning given to it in Section 424(f) of the Internal
Revenue Code of 1986, as amended.

     “Toyota Consent” shall mean that certain letter agreement, dated as of January 28,
2009, among Toyota Motor Sales, U.S.A., Inc., the Company and ESL.

     “Voting Securities” shall mean securities or other ownership interest having ordinary
voting power (absolutely or contingently) for the election of directors or other persons
performing similar functions.EX-10.1

Exhibit 10.1

LANCE, INC.

2009 Annual Performance Incentive Plan for Officers

	 	 	 
	Purposes and
Introduction

	 	The 2009 Annual Performance Incentive Plan provides for Performance
Awards under the Lance, Inc. 2007 Key Employee Incentive Plan (the
“Incentive Plan”). Except as otherwise expressly defined herein,
capitalized terms shall be as defined in the Incentive Plan.
	 
	 	 
	 

	 	The primary purposes of the 2009 Annual Performance Incentive Plan for
Officers (the “2009 Plan”) are to:
	 
	 	 
	 

	 	•     Motivate behaviors that lead to the successful achievement of
specific sales, financial and operations goals that support Lance’s
stated business strategy and to align participants’ interests with those
of stockholders.

	 
	 	 
	 

	 	•     Emphasize link between participants’ performance and rewards for
meeting predetermined, specific goals.

	 
	 	 
	 

	 	•     Focus participant’s attention on operational effectiveness from
both an earnings and an investment perspective.

	 
	 	 
	 

	 	•     Promote the performance orientation at Lance and communicate to
employees that greater responsibility carries greater rewards.

	 
	 	 
	 

	 	For 2009, participants will be eligible to earn incentive awards based
on the performance measures listed on Exhibit A hereto and defined as
follows:
	 
	 	 
	 

	 	1.    Net Sales is defined as sales and other operating revenue, net of
returns, allowances, discounts and other sales deduction items for the
2009 fiscal year, as audited and reported in the Company’s Form 10-K for
the 2009 fiscal year.

	 
	 	 
	 

	 	2.    Corporate Earnings Per Share (“Corporate EPS”) is defined as the
fully diluted earnings per share of the Company for the 2009 fiscal
year, as audited and reported in the Company’s Form 10-K for 2009 fiscal
year.

	 
	 	 
	 

	 	3.    Sales Per Route Improvement is defined as the percentage improvement
in gross sales through the direct-store-delivery (“DSD”) system divided
by 52 and divided by the average number of routes in the DSD system for
the 2009 fiscal year over that for the 2008 fiscal year.

 

 

	 	 	 
	 

	 	4.    Supply Chain Costs Reduction is defined as the percentage reduction,
expressed in percentage points or basis points (bps), in total
manufacturing conversion costs plus total costs of shipping and
distribution, excluding DSD costs, divided by total net sales for the
2009 fiscal year over that for the 2008 fiscal year.

	 
	 	 
	 

	 	To achieve the maximum motivational impact, plan goals and the awards
that will be received for meeting those goals will be communicated to
participants as soon as practical after the 2009 Plan is approved by the
Compensation Committee of the Board of Directors.
	 
	 	 
	 

	 	Each participant will be assigned a Target Incentive, stated as a
percent of base salary. The Target Incentive Award, or a greater or
lesser amount, will be earned at the end of the Plan Year based on the
attainment of predetermined goals.
	 
	 	 
	 

	 	Base salary shall be the annual rate of base compensation for the Plan
Year which is set no later than April of such Plan Year; provided that
for any award intended to satisfy the Performance-Based Exception, base
salary shall be the annual rate of base compensation for the Plan Year
which is set no later than March 31 of such Plan Year.
	 
	 	 
	 

	 	Not later than 75 days after fiscal year-end, 100% of the awards earned
will be payable to participants in cash.
	 
	 	 
	Plan Year

	 	The period over which performance will be measured is the Company’s 2009
fiscal year (the “Plan Year”).
	 
	 	 
	Eligibility and
Participation

	 	Eligibility in the Plan is limited to Officers of Lance who are key to
Lance’s success. The Compensation Committee of the Board of Directors
will review and approve participants nominated by the President and
Chief Executive Officer. Participation in one year does not guarantee
participation in a following year, but instead will be reevaluated and
determined on an annual basis.
	 
	 	 
	 

	 	Participants in the Plan may not participate in any other annual
incentive plan (e.g., sales incentives, etc.) offered by Lance or its
affiliates. Exhibit B includes the list of 2009 participants approved
by the Compensation Committee at its February 9, 2009 meeting.
	 
	 	 
	Target Incentive
Awards

	 	Each participant will be assigned a Target Incentive expressed as a
percentage of his or her base salary. Participants may be assigned
Target Incentives by position, by salary level or based on other factors
as determined by the Compensation Committee.

2

 

	 	 	 
	 

	 	Target Incentives will be reevaluated at least every other year, if not
annually. If the job responsibility of a position changes during the
year, or base salary is increased significantly, the Target Incentive
shall be revised as appropriate.
	 
	 	 
	 

	 	Exhibit B lists the Target Incentive for each participant for the Plan
Year. Target Incentives will be communicated to each participant as
close to the beginning of the year as practicable, in writing. Final
awards will be calculated by multiplying each participant’s Target
Incentive by the appropriate percentage (based on performance for the
year, as described below).
	 
	 	 
	Performance
Measures and Award
Funding

	 	The 2009 performance measures are on Exhibit A attached hereto.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Threshold	 	Target	 	Maximum	 
	Award Level Funded  
	 	50%	 	  100%	 	200%	 

	 	 	 
	 

	 	Percent of payout will be determined on a straight line basis from
Threshold to Target and from Target to Maximum. There will be no payout
unless the Threshold for the applicable performance measure is
reached. 

The payout for the Net Sales performance measure shall not exceed Target
if the Corporate EPS performance measure does not equal or exceed its
Threshold.
	 
	 	 
	 

	 	The performance measures will be communicated to each participant as
soon as practicable after they have been established. Final Target
Incentive Awards will be calculated after the Compensation Committee has
reviewed the Company’s audited financial statements for 2009 and
determined the performance level achieved.
	 
	 	 
	 

	 	Threshold, Target and Maximum levels will be defined at the beginning of
each Plan Year for each performance measure.
	 
	 	 
	 

	 	The following definitions for the terms Maximum, Target and Threshold
should help set the goals for each year, as well as evaluate the
payouts:
	 
	 	 
	 

	 	•     Maximum: Excellent; deserves an above-market incentive

	 
	 	 
	 

	 	•     Target: Normal or expected performance; deserves market-level
incentive

	 
	 	 
	 

	 	•     Threshold: Lowest level of performance deserving payment above
base salary; deserves below-market incentive

	 
	 	 
	Individual
Performance

	 	Each participant will receive 35% of his or her Target Incentive Award
based on Net Sales, 45% of his or her Target Incentive Award based on
Corporate EPS, 10% of his or her Target Incentive Award based on Sales
Per Route Improvement and 10% of his or her Target Incentive Award based
on Supply Chain Costs Reduction.

3

 

	 	 	 
	Form and
Timing of
Payments

	 	Final award payments will be made in cash as soon as practicable after
award amounts are approved by the Compensation Committee of the Board of
Directors, but not more than 75 days after the end of the Company’s 2009
fiscal year. All awards will be rounded to the nearest $100.
	 
	 	 
	Change in Status

	 	An employee hired into an eligible position during the Plan Year may
participate in the Plan for the balance of the Plan Year on a pro rata
basis.
	 
	 	 
	Certain
Terminations of
Employment

	 	In the event a participant voluntarily terminates employment (other than
Retirement) or is terminated involuntarily during or after the end of
the Plan Year but before the payment date, any Award will be forfeited.
In the event of death, Disability or Retirement, the award will be paid
on a pro rata basis based on the actual performance determined after the
end of the Plan Year. Awards otherwise will be calculated on the same
basis as for other participants.
	 
	 	 
	 

	 	“Retirement” is defined under the Incentive Plan to mean the
participant’s termination of employment with the Company either (i)
after attainment of age 65 or (ii) after attainment of age 55 with the
prior consent of the Compensation Committee.
	 
	 	 
	Change In
Control

	 	In the event of a Change in Control, pro rata payouts will be made at
the greater of (1) Target Incentives or (2) actual results for the
year-to-date, based on the number of days in the Plan Year preceding the
Change in Control. Payouts will be made within 30 days after the
relevant transaction has been completed.
	 
	 	 
	Withholding

	 	The Company shall withhold from award payments any Federal, foreign,
state or local income or other taxes required to be withheld.
	 
	 	 
	Communications

	 	Progress reports should be made to participants quarterly showing the
year-to-date performance results and the percentage of Target Incentives
that would be earned if results remain at that level for the entire
year.
	 
	 	 
	Executive Officers

	 	Notwithstanding any provisions to the contrary above, participation,
Target Incentive Awards and prorations for executive officers, including
the President and Chief Executive Officer, shall be approved by the
Compensation Committee.
	 
	 	 
	Stockholder Approval

	 	The 2009 Plan and the awards hereunder are made pursuant to the
Incentive Plan, which was approved by the Company’s stockholders at the
Annual Meeting of Stockholders held on April 26, 2007.

4

 

	 	 	 
	Governance

	 	The Compensation Committee of the Board of Directors of Lance, Inc. is
ultimately responsible for the administration and governance of the
Plan. Actions requiring Committee approval include final determination
of plan eligibility and participation, identification of performance
measures, performance objectives and final award determination. The
Committee may adjust any award due to extraordinary events such as
acquisitions, dispositions, discontinued operations, required accounting
adjustments or similar events, all as specified in Section 11(d) of the
Incentive Plan; provided, however, that the Committee shall at all times
be required to exercise this discretionary power in a manner, and
subject to such limitations, as will permit all payments under the Plan
to “covered employees,” as defined in Section 162(m) of the Internal
Revenue Code, to continue to qualify as “performance-based compensation”
for purposes of Section 162(m) of the Code. In addition, under the
Incentive Plan, the Committee retains the discretion to reduce any award
amount from the amount otherwise determined under the applicable
formula. Subject to the foregoing, the decisions of the Committee shall
be conclusive and binding on all participants.

5

 

Exhibit A

Performance Measures

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Performance Measure	 	Weight	 	Threshold	 	Target	 	Maximum
	Net Sales*
	 	 	35	%	 	$	865 	million	 	$	915.7 	million	 	$	965 	million
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Corporate EPS*
	 	 	45	%	 	$	0.80	 	 	$	1.10	 	 	$	1.40	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sales Per Route Improvement*
	 	 	10	%	 	 	1	%	 	 	10	%	 	 	15	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Supply Chain Costs Reduction*
	 	 	10	%	 	 	1	 bps	 	 	25	 bps	 	 	125	 bps

 

			
	*	 	Excludes acquisitions and special items, which are significant one-time income or expense
items.

 

 

Exhibit B

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Award	 	Target
	Name	 	Title	 	Percentage	 	Incentive
	David V. Singer
	 	President and Chief Executive Officer	 	 	100	%	 	$	660,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	Rick D. Puckett
	 	Executive Vice President, Chief Financial Officer, Treasurer and Secretary	 	 	50	%	 	$	200,700	 
	 
	 	 	 	 	 	 	 	 	 	 
	Glenn A. Patcha
	 	Senior Vice President — Sales and Marketing	 	 	50	%	 	$	180,200	 
	 
	 	 	 	 	 	 	 	 	 	 
	Blake W. Thompson
	 	Senior Vice President — Supply Chain	 	 	50	%	 	$	150,200	 
	 
	 	 	 	 	 	 	 	 	 	 
	Earl D. Leake
	 	Senior Vice President — Human Resources	 	 	50	%	 	$	140,300	 
	 
	 	 	 	 	 	 	 	 	 	 
	M. E. Wicklund
	 	Vice President, Controller and Assistant Secretary	 	 	**	%	 	$	**	 

 

			
	**	 	Amounts are omitted for participants other than the Chief Executive Officer, the Chief
Financial Officer and the other executive officers who were named in the Summary Compensation
Table of the Company’s Proxy Statement for the 2009 Annual Meeting of Stockholders.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]