Document:

arcb_EX_101

		

			Exhibit 10.1

		

		
			Third Amendment to the
		

		
			ArcBest Corporation
		

		
			Executive Officer Incentive Compensation Plan
		

		
			 
		

		
			 
		

		
			THIS THIRD AMENDMENT (the “Third Amendment”) to the ArcBest Corporation Executive Officer Annual Incentive Compensation Plan, as amended from time to time and renamed the ArcBest Corporation Executive Officer Incentive Compensation Plan pursuant to this Third Amendment (the “Plan”), is effective April 26, 2016 (the “Effective Date”), and is made by ArcBest Corporation (the “Company”).
		

		
			 
		

		
			W I T N E S S E T H:  
		

		
			 
		

		
			WHEREAS, the Company previously adopted the Plan, under which the Company is authorized to grant annual cash awards to executive officers of the Company and its subsidiaries, based on the achievement of pre-established performance goals;
		

		
			 
		

		
			WHEREAS, the Plan allows for certain items to be excluded from the calculation of the performance goals thereunder if such exclusions are established at the time the performance goals are established;
		

		
			 
		

		
			WHEREAS, one of the items that may be excluded from the performance goal calculation is an extraordinary, unusual or nonrecurring expense, which is currently defined by reference to a section of the accounting literature that is no longer applicable;
		

		
			 
		

		
			WHEREAS, the compensation committee (the “Committee”) of the board of directors (the “Board”) of the Company and the Board wish to retain the flexibility to exclude extraordinary, unusual or nonrecurring expense from the calculation of the performance goals under the Plan and, as such, have determined that it is desirable to amend the Plan, effective as of the Effective Date and subject to the approval of the Company’s stockholders, to modify the method of identifying an extraordinary, unusual or nonrecurring item under the Plan;
		

		
			 
		

		
			WHEREAS the Committee and the Board wish to have the flexibility to grant cash incentive awards under the Plan with multi-year performance periods;
		

		
			 
		

		
			WHEREAS, the Committee has determined that it is desirable to submit for approval to the stockholders of the Company, at the Company’s 2016 Annual Meeting of Stockholders, the material terms of the Plan, including the employees eligible to participate therein, the maximum compensation payable under the Plan and the business criteria that may be used for setting performance goals under the Plan, for purposes of satisfying the “performance-based compensation” exemption under section 162(m) of the IRC of 1986, as amended (the “Code”), which requires the material terms of the Plan to be disclosed to and approved by the Company’s stockholders in connection with a material amendment to the Plan; and
		

		
			 
		

		
			WHEREAS, Section 11 of the Plan provides that the Board or the Committee may amend the Plan from time to time under certain circumstances, subject to approval by the Company’s stockholders in the case of certain material amendments pursuant to section 162(m) of the Code.
		

		
			 
		

		
			               NOW, THEREFORE, the Plan shall be amended as of the Effective Date, subject to approval by the Company’s stockholders, as set forth below:
		

		
			 
		

		
			1.Section 2.15 of the Plan shall be deleted in its entirety and replaced with the following:
		

		
			 
		

		
			2.15  “PERFORMANCE PERIOD” a performance period of up to ten years, as specified by the Committee. 
		

		
			 
		

		
			2.All references to “Plan Year” in the Plan shall be deleted and replaced with references to “Performance Period.”
		

		
			 
		

		
			3.The second paragraph of Section 5.1 of the Plan shall be deleted in its entirety and replaced with the following: 
		

		
			 
		

		
			

		 

 

		

			 

		

In establishing a performance goal, the Committee may exclude the impact of any of the following events or occurrences which the Committee determines should appropriately be excluded: (i) any amounts accrued by the Company or its Subsidiaries pursuant to management bonus plans or cash profit sharing plans and related employer payroll taxes for the fiscal year; (ii) any discretionary or matching contributions made to the savings and deferred profit-sharing plan or deferred compensation plan for the fiscal year; (iii) asset write-downs; (iv) litigation, claims, judgments or settlements; (v) the effect of changes in tax law or other such laws or regulations affecting reported results; (vi) accruals for reorganization and restructuring programs; (vii) any extraordinary, unusual or nonrecurring items as determined by the Committee in its discretion, provided such item is described, at the time the performance goal is established, in a manner that is objectively determinable; (viii) any changes in accounting principle as defined in the Accounting Standards Codification topic(s) that replaced or were formerly known as Financial Accounting Standards Board (“FASB”) Statement 154, as amended or superseded; (ix) any loss from a discontinued operation as described in the Accounting Standards Codification topic(s) that replaced or were formerly known as FASB Statement 144, as amended or superseded; (x) goodwill impairment charges; (xi) operating results for any business acquired during the Performance Period; (xii) third party expenses associated with any acquisition by the Company or any Subsidiary; and (xiii) settlement accounting charges incurred that relate to qualified defined benefit pension plans.
		

		
			 
		

		
			4.Section 5.4 of the Plan shall be deleted in its entirety and replaced with the following:
		

		
			 
		

		
			5.4FINAL AWARD LIMIT. The Committee may establish guidelines governing the maximum Final Award that may be earned by Executive Officers (either in the aggregate, by Employee class, or among individual Executive Officers) in each Performance Period. The guidelines may be expressed as a percentage of companywide goals of financial measures, or such other measures as the Committee shall from time to time determine; provided, however, that the maximum payout with respect to a Final Award payable to any one Executive Officer in connection with performance in any one Performance Period shall not exceed $3,000,000 times the number of years in the Performance Period.
		

		
			 
		

		
			5.Section 10 of the Plan and all references thereto shall be deleted entirety from the Plan and the section numbering of all subsequent sections and all references to those sections, shall be adjusted accordingly, such that (i) Section 11 of the Plan shall now be Section 10 of the Plan and all prior references to Section 11 of the Plan shall be changed to references to Section 10 of the Plan and (ii) Section 12 of the Plan shall now be Section 11 of the Plan and all prior references to Section 12 of the Plan shall be changed to references to Section 11 of the Plan.
		

		
			 
		

		
			6.The name of the Plan shall be changed from the “ArcBest Corporation Executive Officer Annual Incentive Compensation Plan” to the “ArcBest Corporation Executive Officer Incentive Compensation Plan” and any references in the Plan to the “ArcBest Corporation Executive Officer Annual Incentive Compensation Plan” shall be deleted and replaced with references to the “ArcBest Corporation Executive Officer Incentive Compensation Plan.”arcb_EX_102

		

			Exhibit 10.2

		

		

			[         ] Schedule – ArcBest 16b Annual Incentive Compensation Plan 

		

		

			Page 1 of 1

		

		

			 

		

		
			[         ] Schedule 
		

		
			ArcBest 16b Annual Incentive Compensation Plan
		

		
			 
		

		
			Pursuant to the Executive Officer Incentive Compensation Plan (the “Governing Plan”), the Compensation Committee of the ArcBest Corporation Board of Directors (the “Compensation Committee”) has adopted the following Individual Award Opportunities, Performance Measures, and Participants for ArcBest Corporation and its subsidiaries for the [        ] – ArcBest 16b Annual Incentive Compensation Plan (the “[        ] Plan”). The Compensation Committee has determined that the [        ] Plan incentive will include the following components:
		

		
			 
		

			
					
						[         ] Operating Income Improvement over  Operating Income Baseline for [         ]  (“Operating Income Component”)

					
					
						50% weighting

				
	
					
						ROCE Component

					
					
						50% weighting

				

		
			 
		

		
			 
		

		
			The weighting of the components is determined by the Compensation Committee for each Measurement Period.
		

		
			 
		

		
			I. Defined Terms
		

		
			
		

		
			A.  Base Salary for Executive Officers.    Base Salary for Executive Officers (Executive Officer for this purpose is defined as an employee who, as of the last day of the applicable Plan Year, is covered by the compensation limitations of Code Section 162(m) or the regulations issued thereunder) is defined as an Executive Officer’s total base salary earned, while an eligible Participant in the [        ]  Plan, for the designated Measurement Period, but in no event shall the Base Salary for an Executive Officer exceed the monthly base salary for the Executive Officer as most recently approved by the Compensation Committee as of the end of the day on which the Plan is approved for the Measurement Period or, if later, the day on which the Participant becomes an Executive Officer with a salary approved by the Compensation Committee, multiplied by twelve, multiplied by 150%.  Base Salary is not reduced by any voluntary salary reductions or any salary reduction contributions made to any salary reduction plan, defined contribution plan or other deferred compensation plans of the Company, but does not include any payments under the Governing Plan, any stock option or other type of equity plan, or any other bonuses, incentive pay or special awards.
		

		
			 
		

		
			B.  Base Salary. Base Salary for Participants other than Executive Officers is defined as a Participant’s total base salary earned, while an eligible Participant in the [        ]  Plan, for the designated Measurement Period.  Base Salary is not reduced by any voluntary salary reductions or any salary reduction contribution made to any salary reduction plan, defined contribution plan or other deferred compensation plans of the Company, but does not include any payments under the Governing Plan, any stock option or other type of equity plan, or any other bonuses, incentive pay or special awards.
		

		
			 
		

		
			C.  Cause.  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 pleas of nolo contendere with respect to any felony or act of moral turpitude; (iii) Participant’s engaging in any material act of theft or material misappropriation of Company or any Subsidiary’s property, or (iv) Participant’s material breach of the Company’s Code of Conduct, as such Code may be revised from time to time.  
		

		
			 
		

		
			D.  Good Reason. Good Reason shall mean (i) any material adverse diminution in Participant’s title, duties, or responsibilities; (ii) any reduction in Participant’s base salary or employee benefits (including reducing Participant’s level of participation or bonus award opportunity in the Company’s or a Subsidiary’s incentive compensation plans) or (iii) a relocation of Participant’s principal place of employment by more than 50 miles without the prior consent of Participant. 
		

		
			 
		

		
			E.  Measurement Period.  The Measurement Period is 1/1/[        ]  to 12/31/[        ]. 
		

		
			 
		

		
			

		 

 

		

			[         ] Schedule – ArcBest 16b Annual Incentive Compensation Plan

		

		

			Page 2 of 4

		

F.  Qualified Termination. Qualified Termination shall mean, within 24 full calendar months after a Change in Control, as defined in the Executive Officer Incentive Compensation Plan, a participant’s separation from service by the Company (or an Affiliate of the Company) without Cause (and not as a result of the Participant’s death or Disability), or by the Participant for Good Reason. 
		

		
			 
		

		
			G.  Retirement. Retirement shall mean Participant’s retirement from active employment at or after age 65 or retirement from the Company or Subsidiary at or after age 55, so long as the Participant has, as of the date of such retirement, at least 10 years of service with the Company or any Subsidiary. Officers and/or Executive Officers must be a Participant in the Plan during the Plan Year for not less than ninety (90) days prior to his or her Retirement to be eligible for an incentive under the [        ]  Plan. 
		

		
			 
		

		
			 
		

		
			II. Participants
		

		
			 
		

		
			Eligible Participants in the [        ] Plan are listed in Appendix C and certain employees or positions may be specifically included or excluded by the Compensation Committee.
		

		
			 
		

		
			If you are promoted to an eligible position after November 30, [        ], you will not be eligible to participate in the [        ] Plan.
		

		
			 
		

		
			If an Eligible Participant in the [        ]  Plan also participates in the ArcBest Corporation 2012 Change in Control Plan, the terms of the ArcBest Corporation 2012 Change in Control Plan shall govern.
		

		
			 
		

		
			 
		

		
			III. Corporate Performance Metrics
		

		
			 
		

		
			Operating Income Component: The Individual Award Opportunities provided by the Operating Income Component are based on (a) achieving certain levels of Operating Income in [        ] that exceed the Operating Income Baseline for [        ] and (b) Your Target Payout Factor Earned. The formula below illustrates how your incentive is computed:  
		

		
			 
		

		
			Your Incentive Payment= [Performance Factor Earned x Your Target Payout Factor x Your Base Salary x the Operating Income Component Weighting]
		

		
			 
		

		
			A. Performance Factor Earned. Performance Factor Earned is shown in Appendix A and depends on the Operating Income improvement achieved.
		

		
			       
		

		
			B. Target Payout Factor.  Your Target Payout Factor is a percentage of your Base Salary. The Target Payout Factors are listed in Appendix C.
		

		
			 
		

		
			ROCE Component: The Individual Award Opportunities provided by the ROCE Component are based on (a) achieving certain levels of performance for ArcBest’s Consolidated Return on Capital Employed (“ROCE”) and (b) your Target Payout Factor. The formula below illustrates how your incentive is computed:  
		

		
			 
		

		
			Your Incentive Payment = [Performance Factor Earned x Your Target Payout Factor x Your Base Salary x the ROCE Component Weighting]
		

		
			 
		

		
			A. Performance Factor Earned. Performance Factor Earned is shown in Appendix B and depends on the ROCE achieved by ArcBest for the year.
		

		
			     
		

		
			B. Target Payout Factor. Your Target Payout Factor is a percentage of your Base Salary. The Target Payout Factors are listed in Appendix C.
		

		
			 
		

		
			

		 

		

			2

		

		

			 

		

 

		

			[         ] Schedule – ArcBest 16b Annual Incentive Compensation Plan

		

		

			Page 3 of 4

		

If the performance result falls between two rows on Appendix A or Appendix B, interpolation is used to determine the factor used in the computation of the incentive.
		

		
			 
		

		
			The Compensation Committee has established maximum incentive amounts based on a maximum Performance Factor Earned of 200% of your Target Payout Factor for the Operating Income Component and the 300% of your Target Payout Factor for the ROCE Component subject to the applicable weighting for each component as provided in Appendix A and Appendix B.
		

		
			 
		

		
			IV. Effect of a Change in Control
		

		
			 
		

		
			Change in Control. Upon the occurrence of a Qualified Termination following a Change in Control, Participant shall be entitled to immediate payment of the greater of the following:
		

		
			 
		

		
			                    (a)   The amount computed under the Plan based on 100% of the Participant’s “Target Payout Factor” in Appendix C using the date of the Change in Control as the end of the Measurement Period, or
		

		
			            (b)   The amount computed under the Plan based on the actual percentage of Performance Factor Earned in Appendix A and Appendix B, calculated as if the Measurement Period ended on the date of the Change in Control.
		

		
			 
		

		
			 
		

		
			V. Payment of Award
		

		
			 
		

		
			Payment will be made as soon as practicable following the end of the Measurement Period,  and in any event, no later than 2 1⁄2 months after the end of the Measurement Period.
		

		
			 
		

		
			VI. Annual Incentive Compensation Plan
		

		
			 
		

		
			Defined terms in this [        ] ArcBest 16b Annual Incentive Compensation Plan Schedule shall have the same meaning as in Executive Officer Incentive Compensation Plan and the Annual Incentive Compensation Plan except where the context otherwise requires.
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Schedule A
		

		
			 
		

		
			[      ] Plan – Operating Income Component
		

		
			ArcBest 16b Annual Incentive Compensation Plan
		

		
			 
		

		
			Pursuant to the Executive Officer Incentive Compensation Plan (the “Governing Plan”), the Compensation Committee of the ArcBest Corporation Board of Directors (“Compensation Committee”) has adopted this Operating Income Component as a component of the [        ] Plan, including the following Individual Award Opportunities and Performance Measures for ArcBest Corporation and its subsidiaries. 
		

		
			 
		

		
			 
		

		
			

		 

		

			3

		

		

			 

		

 

		

			[         ] Schedule – ArcBest 16b Annual Incentive Compensation Plan

		

		

			Page 4 of 4

		

I. Performance Measure 
		

		
			Operating Income is defined as operating income as shown by the consolidated financial statements and consistent with the historical determination of operating income in ArcBest’s consolidated financial statements after taking into account the Section II Required Adjustments.
		

		
			 
		

		
			[        ] Operating Income Improvement is defined as Operating Income for [       ] in excess of the Operating Income Baseline for [       ] as determined under the terms of the Plan. 
		

		
			 
		

		
			Operating Income Baseline for [        ]  is equal to [                         ] ([       ] operating income of [                ] before Required Adjustments listed below).
		

		
			 
		

		
			II. Required Adjustments
		

		
			 
		

		
			The following adjustments shall be made when calculating Operating Income:
		

		
			 
		

			
	
			
				 (i)
			

			
	
			
			add back any annual or long-term incentive compensation accruals for nonunion employees of ArcBest and all subsidiaries when determining Operating Income;

			
	
			
				 (ii)
			

			
	
			
			add back the direct third-party expenses associated with an acquisition by ArcBest or any Subsidiary; 

			
	
			
				 (iii)
			

			
	
			
			exclude the operating results (all revenue and expenses ) for any business acquired between the beginning of the Measurement Period and the end of the Measurement Period;

			
	
			
				 (iv)
			

			
	
			
			exclude expenses resulting directly from reorganization and restructuring programs for which amounts are publicly disclosed; 

			
	
			
				 (v)
			

			
	
			
			exclude increases or decreases in Operating Income resulting from any extraordinary, unusual or non-recurring item as determined by the Compensation Committee in its discretion provided such item is described, at the time the performance goal is established, in a manner that is objectively determinable; 

			
	
			
				 (vi)
			

			
	
			
			exclude increases or decreases in Operating Income resulting from any change in accounting principle as defined in the Accounting Standards Codification topic(s) that replaced or were formerly known as Financial Accounting Standards Board (“FASB”) Statement 154, as amended or superseded; 

			
	
			
				 (vii)
			

			
	
			
			exclude any loss from a discontinued operation as described in the Accounting Standards Codification topic(s) as they existed at December 31, 2013, that replaced or were formerly known as FASB Statement 144, as amended or superseded; 

			
	
			
				 (viii)
			

			
	
			
			exclude goodwill impairment charges; and

			
	
			
				 (ix)
			

			
	
			
			exclude settlement accounting charges incurred that relate to the qualified defined benefit pension plan.

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			III. Discretionary Adjustments
		

		
			 
		

		
			Prior to a Change in Control, the Compensation Committee may reduce any Participant’s Final Award if the Compensation Committee determines, in its sole discretion, that events have occurred or facts have become known which would make a reduction appropriate and equitable.
		

		
			 
		

		
			

		 

		

			4

		

		

			 

		

 

		

			[         ] Schedule – ArcBest 16b Annual Incentive Compensation Plan

		

		

			Page 5 of 6

		

Schedule B
		

		
			 
		

		
			[         ] Plan – ROCE Plan Component
		

		
			ArcBest 16b Annual Incentive Compensation Plan
		

		
			 
		

		
			Pursuant to the Executive Officer Incentive Compensation Plan (the “Governing Plan”), the Compensation Committee of the ArcBest Corporation Board of Directors (“Compensation Committee”) has adopted this ROCE Component as a component of the [      ] Plan, including the following Individual Award Opportunities and Performance Measures for ArcBest Corporation and its subsidiaries. 
		

		
			 
		

		
			 
		

		
			I. Performance Measure 
		

		
			 
		

		
			ROCE for ArcBest is calculated as the following ratio:
		

		
			 
		

		
			Net Income + After-tax Effect of Interest Expense 
		

		
			+ After-tax Effect of Imputed Interest Expense + After-tax Effect of Amortization of intangibles
		

		
			– After-tax Effect of Income from
		

		
			Cash and Short-term Investments Attributable to the reduction in Average Debt
		

		
			Average Equity + Average Debt + Average Imputed Debt
		

		
			 
		

		
			 
		

		
			“Net Income” for the ROCE calculation is consolidated net income determined in accordance with Generally Accepted Accounting Principles after taking into account the Section II Required Adjustments. 
		

		
			 
		

		
			“Interest Expense” for the ROCE calculation is (i) interest on all long and short-term indebtedness, including capital leases, and other interest bearing obligations, and (ii) deferred financing cost amortization and other financing costs including letters of credit fees, reduced by the amount of interest expense on debt not included in Average Debt as defined below.
		

		
			 
		

		
			“Imputed Interest Expense” consists of the interest attributable to Average Imputed Debt assuming an interest rate of 7.5%.
		

		
			 
		

		
			“Average Debt” is the average of the beginning of the year and the end of the year current and long-term debt, with beginning of the year and end of the year current and long-term debt reduced by the respective amount of the beginning of the year and end of the year total of unrestricted cash, cash equivalents and short-term investments, and limited to a reduction of debt to zero.  
		

		
			 
		

		
			“Average Equity” is the average of the beginning of the Measurement Period and the end of the Measurement Period stockholder’s equity.  
		

		
			 
		

		
			“Average Imputed Debt” consists of the average of the beginning of the year and the end of the year present value of all payments determined using an interest rate of 7.5% on operating leases of revenue equipment with an initial term of more than two years.
		

		
			 
		

		
			“Amortization of intangibles” consists of amortization of intangibles and depreciation of software related to acquired businesses including any writedown or impairment charge related to those assets.
		

		
			 
		

		
			“Income from Cash and Short-term Investments Attributable to the reduction in Average Debt” consists of income earned on the amount by which Average Debt is reduced at the average interest rate earned in cash and short-term investments for the measurement period.
		

		
			 
		

		
			

		 

		

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			[         ] Schedule – ArcBest 16b Annual Incentive Compensation Plan

		

		

			Page 6 of 6

		

II. Required Adjustments
		

		
			 
		

		
			The following adjustments shall be made when calculating ROCE:
		

		
			 
		

			
	
			
				 (i)
			

			
	
			
			add back the after-tax incentive compensation accruals under any annual or long-term incentive compensation plan for nonunion employees of ArcBest and any of its Subsidiaries when determining Net Income; 

			
	
			
				 (ii)
			

			
	
			
			add back after-tax direct third party expenses associated with an acquisition by ArcBest or any Subsidiary;

			
	
			
				 (iii)
			

			
	
			
			exclude the net results (all revenue, expenses and taxes) for any business acquired between the beginning of the Measurement Period and the end of the Measurement Period from the numerator of the ratio and exclude any Acquisition Debt attributable to the business acquired (either directly held by the business or incurred to acquire the business) from the denominator in the ratio calculation;

			
	
			
				 (iv)
			

			
	
			
			exclude decreases in Net Income resulting directly from reorganization and restructuring programs for which amounts are publicly disclosed;

			
	
			
				 (v)
			

			
	
			
			exclude increases or decreases in Net Income resulting from any extraordinary, unusual or non-recurring item as determined by the Compensation Committee in its discretion provided such item is described, at the time the performance goal is established, in a manner that is objectively determinable; 

			
	
			
				 (vi)
			

			
	
			
			exclude increases or decreases in Net Income resulting from any change in accounting principle as defined in the Accounting Standards Codification topic(s) that replaced or were formerly known as Financial Accounting Standards Board (“FASB”) Statement 154, as amended or superseded; 

			
	
			
				 (vii)
			

			
	
			
			exclude any loss from a discontinued operation as described in the Accounting Standards Codification topic(s) as they existed as of December 31, 2013 that replaced or were formerly known as FASB Statement 144, as amended or superseded; 

			
	
			
				 (viii)
			

			
	
			
			exclude the effect on ROCE of changes to net income, equity and debt as a result of any change in accounting principle as defined in the Accounting Standards Codification topic(s)  that replaced or were formerly known as  Accounting Principles Board Opinion No. 30, as amended or superseded;

			
	
			
				 (ix)
			

			
	
			
			exclude the effect of changes in federal income tax law or regulations affecting reported results during the Measurement Period including increases or decreases in tax rates or the addition or elimination of tax credits. A change for this purpose will be as compared to the laws and regulations in effect on January 1, [      ], without consideration of any retroactive changes in tax law after January 1, [      ]; and

			
	
			
				 (x)
			

			
	
			
			exclude goodwill impairment charges; and

			
	
			
				 (xi)
			

			
	
			
			exclude after-tax settlement accounting charges incurred that relate to the qualified defined benefit pension plan.

		
			 
		

		
			 
		

		
			III. Discretionary Adjustments
		

		
			 
		

		
			Prior to a Change in Control, the Compensation Committee may reduce any Participant’s Final Award if the Compensation Committee determines, in its sole discretion, that events have occurred or facts have become known which would make a reduction appropriate and equitable.
		

		
			

		 

		

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			[      ] Schedule – ArcBest 16b Annual Incentive Compensation Plan

		

		

			Page 7 of 9

		

Appendix A
		

		
			 
		

		
			Operating Income Component
		

		
			 
		

			
					
						 

					
					
						[      ] Operating Income Improvement over Operating Income Baseline for [      ]*

					
					
						Performance Factor Earned

				
	
					
						 

					
					
						Less than $ 0

					
					
						0%

				
	
					
						Threshold

					
					
						$0

					
					
						25%

				
	
					
						Target

					
					
						$14,000,000

					
					
						100%

				
	
					
						Maximum

					
					
						$58,000,000

					
					
						200%

				
	
					
						 

					
					
						Greater than $ 58,000,000

					
					
						200%

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Operating Income Component Weighting: 50%
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			* Operating income improvement goals change each plan year.
		

		
			

		 

		

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			[      ] Schedule – ArcBest 16b Annual Incentive Compensation Plan

		

		

			Page 8 of 9

		

Appendix B
		

		
			 
		

		
			[       ] ROCE Component
		

		
			 
		

		
			 
		

			
					
						 

					
					
						Return on Capital Employed 

					
						(“ROCE”)

					
					
						 

					
						Performance Factor Earned

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						  Less than 5%

					
					
						 0%

				
	
					
						Threshold

					
					
						5%

					
					
						50%

				
	
					
						Target

					
					
						10%

					
					
						100%

				
	
					
						Maximum

					
					
						15%

					
					
						300%

				
	
					
						 

					
					
						Greater than 15%

					
					
						300%

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			ROCE Component Weighting: 50%
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

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			[      ] Schedule – ArcBest 16b Annual Incentive Compensation Plan

		

		

			Page 9 of 9

		

Appendix C
		

		
			 
		

		
			Target Payout Factors
		

			
					
						Participants/Job Title

					
					
						 

					
						Target Payout Factor

				
	
					
						ArcBest President & CEO

					
					
						[   ]%

				
	
					
						ABF Freight President 

					
					
						[   ]%

				
	
					
						ABF Logistics President

					
					
						[   ]%

				
	
					
						ArcBest Senior Vice President – Risk & Chief Audit Executive

					
						AB Tech President and ArcBest SVP - CINO

					
					
						[   ]%

				
	
					
						ArcBest Vice President – CFO 

					
					
						[   ]%

				
	
					
						 

					
						ArcBest Vice President – General Counsel & Corporate Sec.

					
						ArcBest Vice President – ArcBest Enterprise Solutions

					
						ArcBest Vice President – Human Resources

					
					
						[   ]%

				
	
					
						ArcBest Vice President – Controller

					
						ArcBest Vice President – Real Estate

					
						ArcBest Vice President – Strategy

					
					
						[   ]%

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		 

		

			9

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