Document:

exv10wa

 

Exhibit 10.A

VIAD CORP

MANAGEMENT INCENTIVE PLAN

Pursuant to the 1997 Viad Corp Omnibus Incentive Plan

As Amended March 29, 2005

	I.  	PURPOSE:
	 
	   	The purpose of the Viad Corp Management Incentive Plan (Plan) is to provide key executives
of Viad Corp (Viad) and its subsidiaries with an incentive to achieve goals as set forth
under this Plan for each calendar year (Plan Year) for their respective companies and to
provide effective management and leadership to that end.
	 
	II.  	PHILOSOPHY:
	 
	   	The Plan will provide key executives incentive bonuses based upon appropriately weighted
pre-defined income and other performance measurements.
	 
	III.  	SUBSIDIARIES, SUBSIDIARY GROUPS AND DIVISIONS:

	 	A.  	Each subsidiary, subsidiary group, line of business or division listed below is
a “Company” for the purposes of this Plan:

	   	Name of Company
	 
	   	Brewster Transport Company Limited/Brewster Tours group

Exhibitgroup/Giltspur group

GES Exposition Services, Inc. group

Glacier Park, Inc.
	 
	   	Viad may, by action of its Board of Directors or its Human Resources Committee, add or
remove business units on the list of participant companies from time to time.

	 	B.  	FUNDING LIMIT:
	 
	 	   	A “funding limit” shall be established annually for each Company participant who has
been designated an Executive Officer as defined under Section 16(b) of the Securities
Exchange Act. The funding limit shall be an amount not to exceed $750,000 in the
case of a President of any Operating Company. The executive cannot be paid a larger
bonus than the funding limit provided by this clause, but may be paid less in the
discretion of the Committee based on the Performance Goals set forth below and other
such factors which the Committee may consider.
	 
	 	C.  	PERFORMANCE GOALS:

	 	1.  	OPERATING OR PRE-TAX INCOME (as calculated for external
reporting purposes):
	 
	 	   	An appropriate “operating income” or “pre-tax income” target for the plan year
for each Company may be recommended by the Chief Executive Officer of Viad to the
Committee for approval taking into account overall corporate objectives,
historical income and Plan Year financial plan income (on the same basis as
determined below) and, if appropriate, other circumstances.

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	 	   	Operating or pre-tax income to be used in calculating the bonus pool of each
Company shall mean operating income before minority interest, interest expense
and taxes, after deduction of corporate overhead, or pre-tax income after
minority interest, in each case adjusted to appropriately exclude the effects of
gains and losses from the sale or other disposition of capital assets other than
vehicles. In addition, an adjustment to actual operating or pre-tax income will
be made for any increase or decrease in cost to a subsidiary in connection with a
change in the actual formula allocation of corporate overhead over amounts
included in the Plan for the year.
	 
	 	   	Special treatment of any other significant unusual or non-recurring items (for
purposes of determining actual or target operating or pre-tax income) arising
after a Company’s targets are set may be recommended by the Chief Executive
Officer of Viad to the Committee for approval, including, for example,
appropriate adjustment of operating or pre-tax income target or actuals to
reflect planned effects of an acquisition approved after target has been set.
Other examples include unusual items or effects of a change in accounting
principle.
	 
	 	   	Incentives to be paid under this Plan must be deducted from the subsidiary
corporation’s earnings by the end of the year. Goals must be achieved after
deducting from actual results all incentive compensation applicable to the year,
including those incentives earned under this Plan.
	 
	 	2.  	VALUE ADDED MEASUREMENT:
	 
	 	   	An appropriate “Value Added” target for the plan year for certain companies may
be recommended by the Chief Executive Officer of Viad Corp to the Committee for
approval. This measurement is intended to place increased emphasis on securing
an adequate return to Viad on all capital employed in the business. Viad Value
Added (VVA) compares net operating income to the return required on capital
invested in the business.
	 
	 	   	In calculating the bonus pool of each applicable Company, VVA shall mean Net
Operating Profit After Taxes (NOPAT is defined as sales minus operating expenses
minus taxes) minus a Capital Charge calculated by multiplying a Cost of Capital
times the actual Capital (Capital is defined as total assets less current and
other liabilities exclusive of debt). Certain adjustments are necessary to
determine NOPAT and Capital.
	 
	 	3.  	CASH FLOW:
	 
	 	   	An appropriate “Cash Flow” target for the plan year for certain companies may be
recommended by the Chief Executive Officer of Viad Corp to the Committee for
approval. This measurement is intended to place increased emphasis on delivering
available cash to Viad.
	 
	 	   	Operating Cash Flow is defined as the net change in cash resulting from the
operations of the Company. Cash flows from operations exclude the impact of
investing activities (acquiring and disposing of investments and productive
long-lived assets) and financing activities (borrowing and repaying debt, payment
of dividends, and treasury stock repurchases).
	 
	 	4.  	OTHER PERFORMANCE MEASUREMENTS:
	 
	 	   	An appropriate number of performance measurements other than operating or pre-tax
income, VVA, and cash flow may be established for each Company, to place
increased emphasis on areas of importance to achieving overall corporate
objectives, with the Chief Executive Officer of Viad to recommend to the
Committee the measures to be used and, at the end of the year, the level of
achievement against each.

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	 	5.  	REVENUE:
	 
	 	   	The bonus pool earned will be subject to a further calculation whereby the total
bonus pool otherwise accruable will be adjusted by 95% (threshold) up to 105%
(maximum), depending on the achievement against the revenue target.
	 
	 	6.  	ESTABLISHING TARGETS:
	 
	 	   	The targets for revenue, operating or pre-tax income, VVA, cash flow and for the
categories of discretionary performance measurements to be employed will be
established by the Committee no later than 90 days after the beginning of the
Plan Year after receiving the recommendations of the Chief Executive Officer of
Viad Corp.

	 	D.  	PARTICIPANT ELIGIBILITY:
	 
	 	   	The Committee will select the Executive Officers as defined under Section 16(b) of
the Securities Exchange Act eligible for participation no later than 90 days after
the beginning of the Plan Year. Other personnel will be eligible for participation
as designated by each Company President or Chief Executive Officer and recommended to
the Chief Executive Officer of Viad Corp for approval, limited only to those
executives who occupy a position in which they can significantly affect operating
results as pre-defined by appropriate and consistent criteria, i.e., base salary not
less than $49,000 per year, or base salary not less than 50% of the Company’s Chief
Executive Officer, or position not more than the third organizational level below the
Company Chief Executive Officer or another applicable criteria.
	 
	 	   	NOTE: Individuals not qualifying under the criteria established for the Plan
Year who were included in the previous year will be grandfathered (continue as
qualified participants until retirement, reassignment, or termination of employment)
if designated by the Company President or Chief Executive Officer, and approved by
the Chief Executive Officer of Viad Corp.
	 
	 	E.  	TARGET BONUSES:
	 
	 	   	Target bonuses will be approved by the Committee for each Executive Officer in
writing within the following parameters no later than 90 days after the beginning of
the Plan Year and will be expressed as a percentage of salary paid during the year.
Target bonuses for other eligible personnel will be established in writing within the
following parameters subject to approval by the Chief Executive Officer of Viad Corp.
	 
	 	   	Actual bonus awards will be dependent on Company performance versus the targets
established. A threshold performance will be required before any bonus award is
earned under the net income goal. Awards will also be capped when stretch
performance levels are achieved.

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	 	 	As a Percentage of Salary	 
	Subsidiary Positions*	 	Threshold**	 	 	Target	 	 	Cap	 
	Chief Executive Officer/President
	 	 	27.5	%	 	 	55.0	%	 	 	96.25	%
	 
	 	 	25.0	%	 	 	50.0	%	 	 	87.50	%
	Executive Vice President-Senior
	 	 	22.5	%	 	 	45.0	%	 	 	78.75	%
	Vice President, and Other Operating
Executives
	 	 	20.0	%	 	 	40.0	%	 	 	70.00	%
	Vice Presidents
	 	 	17.5	%	 	 	35.0	%	 	 	52.50	%
	 
	 	 	15.0	%	 	 	30.0	%	 	 	45.00	%
	Key Management Reporting to Officers
	 	 	12.5	%	 	 	25.0	%	 	 	31.25	%
	 
	 	 	10.0	%	 	 	20.0	%	 	 	25.00	%
	Staff Professionals
	 	 	7.5	%	 	 	15.0	%	 	 	18.75	%
	 
	 	 	5.0	%	 	 	10.0	%	 	 	12.50	%

	*	 	Target Bonus, as determined by the Committee, is dependent upon organization reporting
relationships.
	 
	**	 	Reflects minimum achievement of all performance targets. Threshold could be lower if minimum
achievement of only one performance target is met.

	 	F.  	BONUS POOL TARGET:

	 	1.  	The “Bonus Pool Target” will be initially established no later
than 90 days after the beginning of the Plan Year and will be adjusted to equal
the sum of the target bonuses of all designated participants in each Company
based upon actual Plan Year salaries, as outlined in paragraph D above, plus 15%
for Special Achievement Awards.
	 
	 	2.  	The bonus pool will accrue in accordance with the Bonus Pool
Accrual Formula recommended by the Chief Executive Officer of Viad Corp and
approved by the Committee.
	 
	 	3.  	Bonus pool accruals not paid out shall not be carried forward to
any succeeding year.

	 	G.  	INDIVIDUAL BONUS AWARDS:

	 	1.  	Indicated bonus awards will be equal to the product of the target
bonus percentage times the weighted average percentage of bonus pool accrued as
determined in paragraph F above times the individual’s actual base salary
earnings during the Plan Year, subject to adjustments as follows:

	 	a)  	discretionary upwards or downward adjustment of formula
bonus awards by the Committee after considering the recommendation of the
Company President or Chief Executive Officer with the approval of the Chief
Executive Officer of Viad Corp for those executives not affected by Section
162(m) of the Internal Revenue Code, and
	 
	 	b)  	discretionary downward adjustment of awards by the
Committee for those Executive Officers affected by Section 162(m) of the
Internal Revenue Code, and
	 
	 	c)  	no individual award may exceed the individual’s capped
target award or the funding limit with respect to Executive Officers, and
the aggregate recommended bonuses may not exceed the bonus pool accrued for
other than Special Achievement Awards.

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	 	2.  	Bonuses awarded to the participating management staff of
subsidiary groups may be paid from funds accrued based upon the target bonus for
such participant(s) times the weighted average performance of the Companies in
the subsidiary group, subject to adjustments as above.

	IV.  	VIAD CORP CORPORATE STAFF:

	 	A.  	FUNDING LIMIT:
	 
	 	   	A “funding limit” shall be established annually for each Corporate participant who
has been designated an Executive Officer as defined under Section 16(b) of the
Securities Exchange Act. The funding limit will be an amount not to exceed in the
case of (i) the Company’s Chief Executive Officer, $1.5 million; and (ii) all other
Executive Officers of the Company individually, $500,000. The executive cannot be
paid a larger bonus than the funding limit provided by this clause, but may be paid
less in the discretion of the Committee based on the Performance Goals set forth
below and such other factors which the Committee may consider.
	 
	 	B.  	PERFORMANCE GOALS:

	 	1.  	INCOME PER SHARE:
	 
	 	   	An appropriate “income per share” from continuing operations target for Viad Corp
may be recommended by the Chief Executive Officer of Viad Corp to the Committee
for approval after considering historical income per share from continuing
operations, Plan Year financial plan income, overall corporate objectives, and,
if appropriate, other circumstances.
	 
	 	   	Income per share from continuing operations is determined before unusual or
extraordinary items, effects of changes in accounting principles, new accounting
pronouncements, restructuring, goodwill and impairment charges, or a change in
federal income tax rates after the target has been set. Reclassification of a
major business unit to discontinued operations status after targets have been set
would also require adjustment because of the effect on Viad Corp continuing
operations results. While gains on disposition of a business would normally not
be included in determining actual Plan Year net income or income per share, in
the event of the sale of a subsidiary or major business unit, a portion of gain
would be included equal to the difference between the sold unit’s planned net
income for the year and actual results to date of sale plus calculated interest
savings on proceeds for the balance of the year, so that actual results are not
penalized for selling a business.
	 
	 	   	Incentives to be paid under this Plan must be deducted from Viad’s earnings by
the end of the year. Goals must be achieved after deducting from actual results
all incentive compensation applicable to the year, including those incentives
earned under this Plan.
	 
	 	2.  	OPERATING INCOME:
	 
	 	   	An appropriate “operating income” may be recommended by the Chief Executive
Officer of Viad Corp to the Committee for approval.
	 
	 	   	Operating income is defined as operating income before minority interest,
interest expense, interest income, and taxes, excluding unallocated corporate
overhead expenses, unusual, non-cash charges (such as goodwill impairments and
restructuring charges), and spin-off related costs.
	 
	 	3.  	VALUE ADDED MEASUREMENT:
	 
	 	   	An appropriate “Value Added” target for the plan year for Corporate may be
recommended by the Chief Executive Officer of Viad for approval by the Human
Resources Committee. This measurement is intended to place increased emphasis on
securing an adequate return to Viad on all capital employed in the business.
Viad Value Added (VVA) compares operating income to the return required on
capital invested in the business.

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	 	   	In calculating the bonus pool for Corporate, VVA shall mean Net Operating Profit
After Taxes (NOPAT is defined as sales minus operating expenses minus taxes)
minus a Capital Charge calculated by multiplying a Cost of Capital times the
actual Capital (Capital is defined as total assets less current and other
liabilities exclusive of debt). Certain adjustments are necessary to determine
NOPAT and Capital.
	 
	 	4.  	CASH FLOW:
	 
	 	   	An appropriate “Cash Flow” target for the plan year for certain companies may be
recommended by the Chief Executive Officer of Viad Corp to the Committee for
approval. This measurement is intended to place increased emphasis on delivering
available cash to Viad.
	 
	 	   	Operating Cash Flow is defined as the net change in cash resulting from the
operations of the Company. Cash flows from operations exclude the impact of
investing activities (acquiring and disposing of investments and productive
long-lived assets) and financing activities (borrowing and repaying debt, payment
of dividends, and treasury stock repurchases).
	 
	 	5.  	OTHER PERFORMANCE MEASUREMENTS:
	 
	 	   	An appropriate number of performance measurements other than income per share
will be established for Corporate, with the Chief Executive Officer of Viad to
recommend to the Committee the level of achievement against each of the measures.
	 
	 	6.  	REVENUE:
	 
	 	   	The bonus pool earned will be subject to a further calculation whereby the total
bonus pool otherwise accruable will be adjusted by 95% (threshold) up to 105%
(maximum) depending on the achievement against the revenue target.
	 
	 	7.  	ESTABLISHING TARGETS:
	 
	 	   	The actual targets for revenue, income per share, cash flow, operating income,
VVA and for the performance measurements to be used will be established by the
Committee no later than 90 days after the beginning of the Plan Year after
receiving the recommendations of the Chief Executive Officer of Viad Corp.

	 	C.  	PARTICIPANT ELIGIBILITY:
	 
	 	   	The Committee will select the Executive Officers as defined under Section 16(b) of
the Securities Exchange Act eligible for participation no later than 90 days after
the beginning of the Plan Year. Other personnel will be eligible for participation
as recommended by the appropriate staff Vice President and as approved by the Chief
Executive Officer of Viad Corp, limited only to those executives who occupy a
position in which they can significantly affect operating results as defined by the
following criteria:

	 	a)  	Salary grade 25 and above; and
	 
	 	b)  	Not more than Organizational Level Four below the Chief
Executive Officer.

	 	   	NOTE: Individuals not qualifying under the criteria established for the Plan
Year who were included in the previous year will be grandfathered (continue as
qualified participants until retirement, reassignment, or termination of employment)
if designated by the appropriate Vice President and approved by the Chief Executive
Officer of Viad Corp.

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	 	D.  	TARGET BONUSES:
	 
	 	   	Target bonuses will be approved by the Committee for each Executive Officer in
writing within the following parameters no later than 90 days after the beginning of
the Plan Year and will be expressed as a percentage of salary. Target bonuses for
other eligible personnel will be established in writing within the following
parameters subject to approval by the Chief Executive Officer of Viad Corp.
	 
	 	   	Actual bonus awards will be dependent on Company performance versus the targets
established. A threshold performance will be required before any bonus award is
earned under the income per share goal. Awards also will be capped when stretch
performance levels are achieved.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	As a Percentage of Salary	 
	Corporate Positions	 	Threshold**	 	 	Target	 	 	Cap	 
	Chairman, President & Chief
Executive Officer
	 	 	45.0	%	 	 	90.0	%	 	 	157.50	%
	Senior Advisory Group
	 	 	27.5	%	 	 	55.0	%	 	 	96.25	%
	 
	 	 	25.0	%	 	 	50.0	%	 	 	87.50	%
	 
	 	 	22.5	%	 	 	45.0	%	 	 	78.75	%
	Corporate Staff Officers
	 	 	20.0	%	 	 	40.0	%	 	 	70.00	%
	Staff Directors*
	 	 	17.5	%	 	 	35.0	%	 	 	52.50	%
	 
	 	 	15.0	%	 	 	30.0	%	 	 	45.00	%
	 
	 	 	12.5	%	 	 	25.0	%	 	 	31.25	%
	Staff Professionals*
	 	 	10.0	%	 	 	20.0	%	 	 	25.00	%
	 
	 	 	7.5	%	 	 	15.0	%	 	 	18.75	%

	*	 	Target Bonus, as determined by the Committee, is dependent upon organization reporting
relationships.
	 
	**	 	Reflects minimum of achievement of all performance targets. Threshold could be lower if
minimum achievement of only one performance target is met.

	 	E.  	BONUS POOL TARGET:

	 	1.  	The “Bonus Pool Target” will be established no later than 90 days
after the beginning of the Plan Year and will be adjusted to equal the sum of
the target bonuses of all qualified participants based upon actual Plan Year
base salaries, as outlined in paragraph C above, plus 15% for Special
Achievement Awards.
	 
	 	2.  	The bonus pool will accrue in accordance with the Bonus Pool
Accrual Formula recommended by the Chief Executive Officer of Viad Corp and
approved by the Committee.
	 
	 	3.  	Bonus pool accruals not paid out shall not be carried forward to
any succeeding year.

	 	F.  	INDIVIDUAL BONUS AWARDS:
	 
	 	   	Indicated bonus awards will be equal to the product of the target bonus percentage
times the weighted average percentage of bonus pool accrued as determined in
paragraph D above times the individual’s actual Plan Year base salary earnings,
subject to adjustments as follows:

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	 	a)  	discretionary upward or downward adjustment of formula
awards by the Committee after considering the recommendations of the Chief
Executive Officer of Viad Corp for those executives not affected by Section
162(m) of the Internal Revenue Code,
	 
	 	b)  	discretionary downward adjustment of awards by the
Committee for those Executive Officers affected by Section 162(m) of the
Internal Revenue Code, and
	 
	 	c)  	no individual award may exceed the individual’s capped
target award or the funding limit with respect to Executive Officers and the
aggregate recommended bonuses may not exceed the bonus pool for other than
Special Achievement Awards.

	V.  	REPAYMENT PROVISIONS:

	 	A.  	NON-COMPETE:
	 
	 	   	Unless a Change of Control (as defined in the Viad Corp Omnibus Incentive Plan, as
amended) shall have occurred after the date hereof:

	 	1.  	In order to better protect the goodwill of Viad and its
Affiliates (as defined in the Plan) and to prevent the disclosure of Viad’s or
its Affiliates’ trade secrets and confidential information and thereby help
insure the long-term success of the business, each participant in this Plan,
without prior written consent of Viad, will not engage in any activity or
provide any services, whether as a director, manager, supervisor, employee,
adviser, agent, consultant, owner of more than five (5) percent of any
enterprise or otherwise, for a period of two (2) years following the date of
such participant’s termination of employment with Viad or any of its Affiliates,
in connection with the manufacture, development, advertising, promotion, design,
or sale of any service or product which is the same as or similar to or
competitive with any services or products of Viad or its Affiliates (including
both existing services or products as well as services or products known to such
participant, as a consequence of such participant’s employment with Viad or one
of its Affiliates, to be in development):

	 	a)  	with respect to which such participant’s work has been
directly concerned at any time during the two (2) years preceding
termination of employment with Viad or one of its Affiliates, or
	 
	 	b)  	with respect to which during that period of time such
participant, as a consequence of participant’s job performance and duties,
acquired knowledge of trade secrets or other confidential information of
Viad or its Affiliates.

	 	2.  	For purposes of the provisions of paragraph V A, it shall be
conclusively presumed that a participant in this Plan has knowledge of
information he or she was directly exposed to through actual receipt or review
of memos or documents containing such information, or through actual attendance
at meetings at which such information was discussed or disclosed.
	 
	 	3.  	If, at any time within two (2) years following the date of a
participant’s termination of employment with Viad or any of its Affiliates, such
participant engages in any conduct agreed to be avoided in accordance with
paragraph V A, then all bonuses paid under this Plan to such participant during
the last 12 months of employment shall be returned or otherwise repaid by such
participant to Viad. Participants in this Plan consent to the deduction from
any amounts Viad or any of its Affiliates owes to such participants to the
extent of the amounts such participants owe Viad hereunder.

	B.  	MISCONDUCT:
	 
	   	Unless a Change of Control shall have occurred after the date hereof, all bonuses
paid for 2003 and thereafter under this Plan to any participant shall be returned or
otherwise repaid by such participant to Viad, if Viad reasonably determines that
during a participant’s employment with Viad or any of its Affiliates:

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	 	a)  	such participant knowingly participated in misconduct
that causes a misstatement of the financial statements of Viad or any of its
Affiliates or misconduct which represents a material violation of any code
of ethics of Viad applicable to such participant or of the Always Honest
compliance program or similar program of Viad; or
	 
	 	b)  	such participant was aware of and failed to report, as
required by any code of ethics of Viad applicable to such participant or by
the Always Honest compliance program or similar program of Viad, misconduct
that causes a misstatement of the financial statements of Viad or any of its
Affiliates or misconduct which represents a material knowing violation of
any code of ethics of Viad applicable to such participant or of the Always
Honest compliance program or similar program of Viad.

	 	   	Participants in this Plan consent to the deduction from any amounts Viad or any of
its Affiliates owes to such participants to the extent of the amounts such
participants owe Viad hereunder.
	 
	 	C.  	ACTS CONTRARY TO VIAD:
	 
	 	   	Unless a Change of Control shall have occurred after the date hereof, if Viad
reasonably determines that at any time within two (2) years after the award of any
bonus under this Plan to a participant that such participant has acted significantly
contrary to the best interests of Viad, including, but not limited to, any direct or
indirect intentional disparagement of Viad, then any bonus paid under this Plan to
such participant during the prior 2-year period shall be returned or otherwise repaid
by the participant to Viad. Participants in this Plan consent to the deduction from
any amounts Viad or any of its Affiliates owes to such participants to the extent of
the amounts such participants owe Viad hereunder.
	 
	 	D.  	The Corporation’s reasonable determination required under paragraphs V B and V
C shall be made by the Human Resources Committee of the Corporation’s Board of
Directors, in the case of executive officers of the Corporation, and by the Chief
Executive Officer and Corporate Compliance Officer of the Corporation, in the case of
all other officers and employees.

	VI.  	SPECIAL ACHIEVEMENT AWARDS:
	 
	   	Special bonuses of up to 15% of base salary for exceptional performance to employees
(primarily exempt employees) who are not participants in this Plan, including newly hired
employees, may be recommended at the discretion of the Chief Executive Officer to the
Committee from the separate funds for discretionary awards provided for under paragraphs III
F and IV E.
	 
	VII.  	APPROVAL AND DISTRIBUTION:
	 
	   	The individual incentive bonus amounts and the terms of payment thereof will be fixed
following the close of the Plan Year by the Committee. Any award made under this Plan is
subject to the approval of this Plan by the stockholders of Viad Corp.
	 
	VIII.  	COMPENSATION ADVISORY COMMITTEE:
	 
	   	The Compensation Advisory Committee is appointed by the Chief Executive Officer of Viad Corp
to assist the Committee in the implementation and administration of this Plan. The
Compensation Advisory Committee shall propose administrative guidelines to the Committee to
govern interpretations of this Plan and to resolve ambiguities, if any, but the Compensation
Advisory Committee will not have the power to terminate, alter, amend, or modify this Plan
or any actions hereunder in any way at any time.
	 
	IX.  	SPECIAL COMPENSATION STATUS:
	 
	   	All bonuses paid under this Plan shall be deemed to be special compensation and, therefore,
unless otherwise provided for in another plan or agreement, will not be included in
determining the earnings of the recipients for the purposes of any pension, group insurance
or other plan or agreement of a Company or of Viad Corp. Participants in this Plan shall
not be eligible for any contractual or other short-

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	   	term (sales, productivity, etc.) incentive plan except in those cases where participation is
weighted between this Plan and any such other short-term incentive plan.
	 
	X.  	DEFERRALS:
	 
	   	Participants subject to taxation of income by the United States may submit to the Committee,
prior to November 15 of the year in which the bonus is being earned a written request that
all or a portion, but not less than a specified minimum, of their bonus awards to be
determined, if any, be irrevocably deferred substantially in accordance with the terms and
conditions of a deferred compensation plan approved by the Board of Directors of Viad Corp
or, if applicable, one of its subsidiaries. Participants subject to taxation of income by
other jurisdictions may submit to the Committee a written request that all or a portion of
their bonus awards be deferred in accordance with the terms and conditions of a plan which
is adopted by the Board of Directors of a participant’s Company. Upon the receipt of any
such request, the Committee thereunder shall determine whether such request should be
honored in whole or part and shall forthwith advise each participant of its determination on
such request.
	 
	XI.  	PLAN TERMINATION:
	 
	   	This Plan shall continue in effect until such time as it may be canceled or otherwise
terminated by action of the Board of Directors of Viad Corp and will not become effective
with respect to any Company unless and until its Board of Directors adopts a specific plan
for such Company. While it is contemplated that incentive awards from the Plan will be
made, the Board of Directors of Viad Corp, or any other Company hereunder, may terminate,
amend, alter, or modify this Plan at any time and from time to time. Participation in the
Plan shall create no right to participate in any future year’s Plan.
	 
	XII.  	EMPLOYEE RIGHTS:
	 
	   	No participant in this Plan shall be deemed to have a right to any
part or share of this Plan, except as provided in Paragraph XIII.
This Plan does not create for any employee or participant any right
to be retained in service by any Company, nor affect the right of any
such Company to discharge any employee or participant from
employment. Except as provided for in administrative guidelines, a
participant who is not an employee of Viad Corp or one of its
subsidiaries on the date bonuses are paid will not receive a bonus
payment.
	 
	XIII.  	EFFECT OF CHANGE OF CONTROL:
	 
	   	Notwithstanding anything to the contrary in this Plan, in the event of a Change of Control
(as defined in the 1997 Viad Corp Omnibus Incentive Plan) each participant in the Plan shall
be entitled to a prorata bonus award calculated on the basis of achievement of performance
goals through the date of the Change of Control.
	 
	XIV.  	EFFECTIVE DATE:
	 
	   	The Plan shall be effective January 1, 1997, provided however, that any award made under
this Plan is subject to the approval of the 1997 Viad Corp Omnibus Incentive Plan by the
stockholders of Viad Corp.

10exv10wb

 

Exhibit 10.B

VIAD CORP

1997 OMNIBUS INCENTIVE PLAN

PERFORMANCE-BASED RESTRICTED STOCK AGREEMENT

AS AMENDED MARCH 29, 2005

     Shares of Performance-Based Restricted Stock are hereby awarded by Viad Corp (Corporation), a
Delaware corporation, effective                     , to                      (Employee) in accordance with the
following restrictions, terms and conditions:

     1. Share Award. The Corporation hereby awards the Employee ___ Shares (Shares) of
Common Stock, par value $1.50 per share (Common Stock) of the Corporation pursuant to the Viad Corp
1997 Omnibus Incentive Plan (Plan), and upon the terms and conditions, and subject to the
restrictions therein and hereinafter set forth.

     2. Restrictions on Transfer and Restriction Period. During the period commencing on
the date hereof (Commencement Date) and terminating as set forth below (Restriction Period), the
Shares may not be sold, assigned, transferred, pledged, or otherwise encumbered by the Employee,
except as hereinafter provided. The Restriction Period shall lapse as follows:

	 	a)  	One third of Earned Shares, effective as of January 1 of
the first year following the year of grant, subject to
final determination of achievement of Management Incentive
Plan (MIP) performance targets;
	 
	 	b)  	One third of Earned Shares on January 1 of the second year
following the year of grant; and
	 
	 	c)  	The remaining one third of Earned Shares on January 1 of
the third year following the year of grant.

Shares will be earned, subject to forfeiture pursuant to paragraph 3, based upon the level of
achievement of MIP performance targets in the year of grant (Earned Shares). No Shares will be
earned if overall achievement of MIP performance targets is below 80% of target, and 25% of Shares
will be earned if overall achievement of MIP performance targets is at 80% of target, with Shares
above that level earned ratably at the same percentage as MIP awards, up to but not exceeding 100%
of target achievement. Shares will be earned by Corporate participants based solely on Corporate
results; but, for operating company participants, 50% of the Shares will be earned based on
achievement of operating company MIP performance targets and 50% of the Shares will be earned based
on achievement of Corporate MIP performance targets, with the threshold for each such target to be
at 80% of such target (for a 25% payout).

Full ownership of Earned Shares will enure to the benefit of the Employee at the expiration of the
Restriction Period with respect thereto, subject to forfeiture pursuant to paragraph 3. The Board
of Directors (Board) shall have the authority, in its discretion, to accelerate the time at which
any or all of the restrictions shall lapse with respect to any Earned Shares, prior to the
expiration of the

1

 

Restriction Period with respect thereto, or to remove any or all of such restrictions, whenever the
Board may determine that such action is appropriate by reason of change in applicable tax or other
law, or any other change in circumstances.

     3. Forfeiture and Repayment Provisions.

          (a) Termination of Employment. Except as provided in this paragraph 3(a) and in
paragraph 8 below, if the Employee ceases to be an Employee of the Corporation or any of its
Affiliates (as defined in the Plan) for any reason, all Shares or Earned Shares which at the time
of such termination of employment are subject to the restrictions imposed by paragraph 2 above
shall upon such termination of employment be forfeited and returned to the Corporation.

          Except as otherwise specifically determined by the Human Resources Committee in its absolute
discretion on a case by case basis, if the Employee is terminated by the Corporation or any of its
Affiliates for any reason, (other than for Cause, as defined in the Plan, or for failure to meet
performance expectations, as determined by the Chief Executive Officer of the Corporation), or if
the Employee ceases to be an employee of the Corporation or any of its Affiliates by reason of
death or total or partial disability, full ownership of the Earned Shares will occur, upon lapse of
the applicable Restriction Periods as set forth in paragraph 2.

          If the Employee ceases to be an employee of the Corporation or any of its Affiliates by reason
of normal or early retirement, full ownership of the Earned Shares will occur upon lapse of the
Restriction Period as set forth in paragraph 2 and dividends will be paid through such period, in
each case on a pro rata basis, calculated based on the percentage of time Employee was employed by
the Corporation or any of its Affiliates from the Commencement Date through the date the Employee
was employed during the year in which the award was granted, provided, however, that full ownership
of the Shares (versus pro rata ownership) will occur upon lapse of such Restriction Period if the
Employee has reached age 60 at the time of retirement and such retirement is at least 6 months
subsequent to the date of grant.

          (b) Non-Compete. Unless a Change of Control (as defined in the Plan) shall have
occurred after the date hereof:

               (i) In order to better protect the goodwill of the Corporation and its Affiliates and to
prevent the disclosure of the Corporation’s or its Affiliates’ trade secrets and confidential
information and thereby help insure the long-term success of the business, Employee, without prior
written consent of the Corporation, will not engage in any activity or provide any services,
whether as a director, manager, supervisor, employee, adviser, agent, consultant, owner of more
than five (5) percent of any enterprise or otherwise, for a period of two (2) years following the
date of Employee’s termination of employment with the Corporation or any of its Affiliates, in
connection
with the manufacture, development, advertising, promotion, design, or sale of any service or
product which is the same as or similar to or competitive with any services or products of the
Corporation or its Affiliates (including both existing services or products as well as services or
products known to the Employee, as a consequence of Employee’s employment with the Corporation or
one of its Affiliates, to be in development):

2

 

                    (1) with respect to which Employee’s work has been directly concerned at any time during the
two (2) years preceding termination of employment with the Corporation or one of its Affiliates, or

                    (2) with respect to which during that period of time Employee, as a consequence of Employee’s
job performance and duties, acquired knowledge of trade secrets or other confidential information
of the Corporation or its Affiliates.

               (ii) For purposes of the provisions of paragraph 3(b), it shall be conclusively presumed that
Employee has knowledge of information he or she was directly exposed to through actual receipt or
review of memos or documents containing such information, or through actual attendance at meetings
at which such information was discussed or disclosed.

               (iii) All Shares subject to the restrictions imposed by paragraph 2 above shall be forfeited
and returned to the Corporation, if Employee engages in any conduct agreed to be avoided pursuant
to the provisions of paragraph 3(b) at any time within two (2) years following the date of
Employee’s termination of employment with the Corporation or any of its Affiliates.

               (iv) If, at any time within two (2) years following the date of Employee’s termination of
employment with the Corporation or any of its Affiliates, Employee engages in any conduct agreed to
be avoided pursuant to the provisions of paragraph 3(b), then all consideration (without regard to
tax effects) received directly or indirectly by Employee from the sale or other disposition of all
Earned Shares earned within two (2) years prior to termination of employment shall be paid by
Employee to the Corporation, or such Earned Shares shall be returned to the Corporation. Employee
consents to the deduction from any amounts the Corporation or any of its Affiliates owes to
Employee to the extent of the amounts Employee owes the Corporation hereunder.

          (c) Misconduct. Unless a Change of Control shall have occurred after the date hereof:

               (i) All consideration (without regard to tax effects) received directly or indirectly by
Employee from the sale or other disposition of the Earned Shares shall be paid by Employee to the
Corporation, or such Earned Shares shall be returned to the Corporation, if the Corporation
reasonably determines that during Employee’s employment with the Corporation or any of its
Affiliates:

                    (1) Employee knowingly participated in misconduct that causes a misstatement of the financial
statements of Viad or any of its Affiliates or misconduct which represents a material violation of
any code of ethics of the Corporation applicable to Employee or of the Always Honest compliance
program or similar program of the Corporation; or

                    (2) Employee was aware of and failed to report, as required by any code of ethics of the
Corporation applicable to Employee or by the Always Honest compliance program or similar program of
the Corporation, misconduct that causes a misstatement of the financial statements of Viad or any
of its Affiliates or misconduct which represents a material

3

 

knowing violation of any code of ethics
of the Corporation applicable to Employee or of the Always Honest compliance program or similar
program of the Corporation.

               (ii) Employee consents to the deduction from any amounts the Corporation or any of its
Affiliates owes to Employee to the extent of the amounts Employee owes the Corporation hereunder.

          (d) Acts Contrary to Corporation. Unless a Change of Control shall have occurred
after the date hereof, if the Corporation reasonably determines that at any time within two (2)
years after the lapse of the last Restriction Period Employee has acted significantly contrary to
the best interests of the Corporation, including, but not limited to, any direct or indirect
intentional disparagement of the Corporation, then all consideration (without regard to tax
effects) received directly or indirectly by Employee from the sale or other disposition of all
Earned Shares earned during the two (2) year period prior to the Corporation’s determination shall
be paid by Employee to the Corporation, or such Earned Shares shall be returned to the Corporation.
Employee consents to the deduction from any amounts the Corporation or any of its Affiliates owes
to Employee to the extent of the amounts Employee owes the Corporation hereunder.

          (e) The Corporation’s reasonable determination required under Sections 3(c)(i) and 3(d) shall
be made by the Human Resources Committee of the Corporation’s Board of Directors, in the case of
executive officers of the Corporation, and by the Chief Executive Officer and Corporate Compliance
Officer of the Corporation, in the case of all other officers and employees.

     4. Certificates for the Shares. The Corporation shall issue a certificate in respect
of the aggregate number of Shares in the name of the Employee, which shall equal the amount of the
award specified herein. The Corporation shall hold all certificates on deposit for the account of
the Employee until expiration of the first restriction period set forth in paragraph 2 above, as
applicable, with respect to the Shares granted, at which time new certificates shall be issued
which shall be commensurate with the installment periods set forth in paragraph 2 above. Each
certificate for restricted Shares shall bear the following legend:

The transferability of this certificate and the
Shares of stock represented hereby are subject
to the terms and conditions (including
forfeiture)
contained in the Viad Corp 1997 Omnibus Incentive
Plan and an Agreement entered into between the
registered
owner and Viad Corp. Copies of such Plan and
Agreement
are on file with the Vice President-General Counsel
of Viad Corp,
1850 N. Central Ave., Suite 800, Phoenix, AZ
85004-4545.

     The Employee further agrees that simultaneously with his or her acceptance of this Agreement,
he or she shall from time to time execute a stock power covering such award endorsed in blank and
that he or she shall promptly deliver such stock power to the Corporation.

4

 

     5. Employee’s Rights. Except as otherwise provided herein, the Employee, as owner of
the Shares, shall have all rights of a shareholder, including, but not limited to, the right to
receive all dividends paid on the Shares and the right to vote the Shares.

     6. Expiration of Restriction Period. Upon the lapse or expiration of the Restriction
Period with respect to any Earned Shares, the Corporation shall deliver or redeliver to the
Employee the certificate in respect of such Shares (reduced as provided in paragraph 3(a) in the
event of early or normal retirement) and the related stock power held by the Corporation pursuant
to paragraph 4 above. The Earned Shares as to which the Restriction Period shall have lapsed or
expired and which are represented by such certificate shall be free of the restrictions referred to
in paragraph 2 above and such certificate shall not bear thereafter the legend provided for in
paragraph 4 above.

     To the extent permissible under applicable tax, securities, and other laws, the Corporation
will permit Employee to satisfy a tax withholding requirement by directing the Corporation to apply
Shares to which Employee is entitled as a result of termination of the Restricted Period with
respect to any Shares of Restricted Stock, in such manner as the Corporation shall choose in its
discretion to satisfy such requirement.

     7. Adjustments for Changes in Capitalization of Corporation. In the event of a
change in the Common Stock through stock dividends, stock splits, recapitalization or other changes
in the corporate structure of the Corporation during the Restriction Period, the number of Shares
of Common Stock subject to restrictions as set forth herein shall be appropriately adjusted and the
determination of the Board of Directors of the Corporation as to any such adjustments shall be
final, conclusive and binding upon the Employee. Any Shares of Common Stock or other securities
received, as a result of the foregoing, by the Employee with respect to Shares subject to the
restrictions contained in paragraph 2 above also shall be subject to such restrictions and the
certificate(s) or other instruments representing or evidencing such Shares or securities shall be
legended and deposited with the Corporation, along with an executed stock power, in the manner
provided in paragraph 4 above.

     8. Effect of Change in Control. In the event of a Change in Control (as defined in
the Plan), the restrictions applicable to any Shares awarded hereby shall lapse, and such Shares
shall be free of all restrictions and become fully vested and transferable to the full extent of
the original grant.

     9. Plan and Plan Interpretations as Controlling. The Shares hereby awarded and the
terms and conditions herein set forth are subject in all respects to the terms and conditions of
the Plan, which are controlling. The Plan provides that the Corporation’s Board of Directors may
from time to time make changes therein, interpret it and establish regulations for the
administration thereof. The Employee, by acceptance of this Agreement, agrees to be bound by said
Plan and such Board actions.

5

 

Shares may not be issued hereunder, or redelivered, whenever such issuance or redelivery would be
contrary to law or the regulations of any governmental authority having jurisdiction.

IN WITNESS WHEREOF, the parties have caused this Performance-Based Restricted Stock Agreement to be
duly executed.

	 	 	 	 	 	 	 	 	 
	Dated:	 	                    , 2005	 	VIAD CORP	 	 
	 

 
	 	 	 	 	 	 	 	 
	

	 	 	 	By:	 	 	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	ROBERT H. BOHANNON	 	 
	

	 	 	 	 	 	Chairman, President and
Chief Executive Officer
	 	 

ATTEST:

General Counsel or Assistant Secretary

This Performance-Based Restricted Stock Agreement shall be effective only upon execution by
Employee and delivery to and receipt by the Corporation.

	 	 	 	 	 
	

	 	ACCEPTED:	 	 
	 

 
	 	 	 	 
	

	 	 	 	 
	

	 	Employee
	 	 

6

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