Document:

Exhibit 4.5

 

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
AS TO SUCH SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

FAVRILLE, INC.

 

WARRANT TO PURCHASE COMMON STOCK

 

March 7, 2006

 

Void After March 7, 2011

 

THIS CERTIFIES THAT, for value
received, [       ], or assigns (the “Holder”), is entitled to subscribe
for and purchase at the Exercise Price (defined below) from Favrille, Inc.,
a Delaware corporation, with its principal office at 10421 Pacific Center
Court, Suite 150, San Diego, California 92121 (the
“Company”) up to [       ]
shares of the common stock of the Company, par value $0.001 per share (the “Common Stock”).  This Warrant is being issued pursuant to that
certain Securities Purchase Agreement dated March 6, 2006 by and among the
Company and the individuals and entities (including the Holder) listed on the Schedule of
Purchasers attached thereto as Exhibit A (the “Purchase
Agreement”).

 

1.                                      DEFINITIONS.  As used herein, the following terms shall
have the following respective meanings:

 

(a)           “Exercise Period”
shall mean the period commencing the date hereof and ending five years from the
date hereof, unless sooner terminated as provided below.

 

(b)           “Exercise Price”
shall mean $5.26 per share, subject to adjustment pursuant to Section 5
below.

 

(c)           “Exercise
Shares” shall mean the shares of Common Stock issuable upon exercise of this
Warrant.

 

2.                                      EXERCISE
OF WARRANT.

 

2.1          Exercise Procedures.  The rights represented by
this Warrant may be exercised in whole or in part at any time during the
Exercise Period, or as otherwise required pursuant to Section 2.3 hereof,
by delivery of the following to the Company at its address set forth above (or
at such other address as it may designate by notice in writing to the Holder):

 

(a)           An executed Notice of Exercise in the
form attached hereto;

 

(b)           Payment of the Exercise Price either (i) in
cash or by check, (ii) by cancellation of indebtedness, or (iii) pursuant
to Section 2.2 below; and

 

1

 

(c)           This Warrant.

 

Upon the exercise of the rights represented by this Warrant, Exercise
Shares shall be delivered by the transfer agent of the Company to the Holder or
its designee by crediting the account of the Holder’s or such designee’s prime
broker with the Depository Trust Company through its Deposit Withdrawal Agent
Commission (“DWAC”) system if the Company
is a participant in such system, and otherwise by physical delivery to the
address specified by the Holder in the Notice of Exercise, within a reasonable
time after the rights represented by this Warrant shall have been so exercised.

 

The person in whose name any certificate or
certificates for Exercise Shares are to be issued upon exercise of this Warrant
shall be deemed to have become the holder of record of such shares on the date
on which this Warrant was surrendered and payment of the Exercise Price was
made, irrespective of the date of delivery of such certificate or certificates,
except that, if the date of such surrender and payment is a date when the stock
transfer books of the Company are closed, such person shall be deemed to have
become the holder of such shares at the close of business on the next
succeeding date on which the stock transfer books are open.

 

2.2          Net Exercise.  Notwithstanding any provisions herein to the
contrary, if the fair market value of one share of the Common Stock is greater
than the Exercise Price (at the date of calculation as set forth below), in
lieu of exercising this Warrant by payment of cash or by check, or by cancellation
of indebtedness, the Holder may elect to receive shares equal to the value (as
determined below) of this Warrant (or the portion thereof being canceled) by
surrender of this Warrant at the principal office of the Company together with
the properly endorsed Notice of Exercise in which event the Company shall issue
to the Holder a number of shares of Common Stock computed using the following
formula:

 

X = Y (A-B)

A

 

Where    X =          the
number of shares of Common Stock to be issued to the Holder

 

Y =                              the
number of shares of Common Stock purchasable under the Warrant or, if only a
portion of the Warrant is being exercised, the portion of the Warrant being
canceled (at the date of such calculation)

 

A =                            the
fair market value of one share of the Company’s Common Stock (at the date of
such calculation)

 

B =                              Exercise
Price (as adjusted to the date of such calculation)

 

For purposes of the above calculation, the “fair
market value” of one share of Common Stock shall mean (i) the average of
the closing sales prices for the shares of Common Stock on the Nasdaq National
Market or other trading market where such security is listed or traded as
reported by Bloomberg Financial Markets (or a comparable reporting service of
national reputation selected by the Company and reasonably acceptable to the
Holder if Bloomberg

 

2

 

Financial Markets is not then reporting sales prices of such security)
(collectively, “Bloomberg”) for the 10
consecutive trading days immediately preceding such date, or (ii) if the
Nasdaq National Market is not the principal trading market for the shares of
Common Stock, the average of the reported sales prices reported by Bloomberg on
the principal trading market for the Common Stock during the same period, or,
if there is no sales price for such period, the last sales price reported by
Bloomberg for such period, or (iii) if neither of the foregoing applies,
the last sales price of such security in the over-the-counter market on the
pink sheets or bulletin board for such security as reported by Bloomberg, or if
no sales price is so reported for such security, the last bid price of such
security as reported by Bloomberg or (iv) if fair market value cannot be
calculated as of such date on any of the foregoing bases, the fair market value
shall be as determined by the Board of Directors of the Company in the exercise
of its good faith judgment.

 

2.3          Required
Exercise.  Notwithstanding
anything herein to the contrary, if after the second (2nd)
anniversary of the date of this Warrant, the fair market value (as defined in Section 2.2)
of a share of Common Stock for any 30 consecutive trading days (a “Measurement Period”) exceeds 200%
of the then-effective Exercise Price, the Company may, within five (5) trading
days after any such period, deliver written notice to all (and not less than
all) of the holders of the then-outstanding Warrants (as such term is defined
in the Purchase Agreement), including the Holder (a “Required
Exercise Notice” and the date such notice is received by the
Holder, the “Required Exercise Notice Date”)
to cause all holders of the Warrants to exercise such Warrants for all (and not
less than all) Exercise Shares represented by such Warrants.  In the event the Company delivers a Required
Exercise Notice in accordance with this Section 2.3, the Holder shall exercise
this Warrant in accordance with Section 2.1 in full within five (5) trading
days after the Required Exercise Notice Date.  If the Holder has not exercised this Warrant
in accordance with the preceding sentence by the end of such five (5) trading
day period, then this Warrant shall be deemed to have been exercised in full pursuant
to Section 2.2 as of the fifth (5th) trading day after the
Required Exercise Notice Date.  The
Company may only effect a Required Exercise Notice if the Common Stock is then listed
for trading on the Nasdaq Global Select
Market, the Nasdaq Global Market, the Nasdaq National Market, the Nasdaq
Capital Market, the New York Stock Exchange and/or the American Stock Exchange (or
their respective successors) and, to the extent required by the Purchase
Agreement, a Registration Statement (as such term is defined in the Purchase
Agreement) is effective at all times during the applicable Measurement Period
through and including the fifth trading day after the Required Exercise Notice
Date.

 

2.4          Issuance of New Warrants.  Upon any partial exercise of this Warrant,
the Company, at its expense, will forthwith and, in any event within five
business days, issue and deliver to the Holder a new warrant or warrants of
like tenor, registered in the name of the Holder, exercisable, in the
aggregate, for the balance of the number of shares of Common Stock remaining
available for purchase under the Warrant.

 

2.5          Automatic Exercise Prior to Expiration.  If and to the extent that
this Warrant has not been exercised in full prior to the expiration of the
Exercise Period, then, provided that the fair market value of one share of the
Common Stock is greater than the Exercise Price on the last trading day
immediately preceding expiration of the Exercise Period, this Warrant shall be

 

3

 

deemed to have been exercised pursuant to Section 2.2 as of the
last trading day immediately preceding expiration of the Exercise Period.  To the extent required by the Purchase
Agreement, the Company shall ensure that the Exercise Shares are covered by an
effective Registration Statement (as such term is defined in the Purchase Agreement).

 

3.                                      COVENANTS
OF THE COMPANY.

 

3.1          Covenants as to Exercise Shares.  The Company covenants and agrees that all
Exercise Shares that may be issued upon the exercise of the rights represented
by this Warrant will, upon issuance, be validly issued and outstanding, fully
paid and nonassessable, and free from all taxes, liens and charges with respect
to the issuance thereof.  The Company
further covenants and agrees that the Company will at all times during the
Exercise Period, have authorized and reserved, free from preemptive rights, a
sufficient number of shares of Common Stock to provide for the exercise of the
rights represented by this Warrant.  If
at any time during the Exercise Period the number of authorized but unissued
shares of Common Stock shall not be sufficient to permit exercise of this
Warrant, the Company will take such corporate action as may, in the opinion of
its counsel, be necessary to increase its authorized but unissued shares of
Common Stock to such number of shares as shall be sufficient for such purposes.

 

3.2          No Impairment.  Except and to the extent as waived or
consented to by the Holder, the Company will not, by amendment of its
Certificate of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any
of the terms to be observed or performed hereunder by the Company, but will at
all times in good faith assist in the carrying out of all the provisions of
this Warrant and in the taking of all such action as may be necessary or
appropriate in order to protect the exercise rights of the Holder against
impairment.

 

3.3          Notices of Record Date.  In the event of any taking by the Company of
a record of the holders of any class of securities for the purpose of
determining the holders thereof who are entitled to receive any dividend (other
than a cash dividend which is the same as cash dividends paid in previous
quarters) or other distribution, the Company shall mail to the Holder, at least
10 days prior to the date specified herein, a notice specifying the date on
which any such record is to be taken for the purpose of such dividend or
distribution.

 

4.                                      REPRESENTATIONS
OF HOLDER.

 

4.1          Acquisition of Warrant for Personal Account.  The Holder represents and warrants that it is
acquiring the Warrant solely for its account for investment and not with a view
to or for sale or distribution of said Warrant or any part thereof.  The Holder also represents that the entire legal
and beneficial interests of the Warrant and Exercise Shares the Holder is
acquiring is being acquired for, and will be held for, its account only.

 

4.2          Securities Are Not Registered.

 

(a)           The Holder
understands that, as of the date of issuance of this Warrant, the Warrant and
the Exercise Shares have not been registered under the Act on the basis that no

 

4

 

distribution or public offering of the stock of the Company is to be
effected.  The Holder realizes that the
basis for the exemption may not be present if, notwithstanding its
representations, the Holder has a present intention of acquiring the securities
for a fixed or determinable period in the future, selling (in connection with a
distribution or otherwise), granting any participation in, or otherwise
distributing the securities.  The Holder
has no such present intention except as set forth in Article 7 of the
Purchase Agreement.  Notwithstanding the
foregoing, by making the representations above, Holder is not prohibited from
selling or otherwise disposing of any Exercise Shares in compliance with
applicable federal and state securities laws and as otherwise contemplated by
this Agreement.

 

(b)           The Holder
recognizes that the Warrant and the Exercise Shares must be held indefinitely
unless the transfer thereof is subsequently registered under the Act or an
exemption from such registration is available.

 

(c)           The Holder is aware
that neither the Warrant nor the Exercise Shares may be sold pursuant to Rule 144
adopted under the Act unless certain conditions are met, including, among other
things, the existence of a public market for the shares, the availability of
certain current public information about the Company, the resale following the
required holding period under Rule 144 and the number of shares being sold
during any three-month period not exceeding specified limitations.

 

4.3          Legends.

 

The Holder understands
and agrees that all certificates evidencing the shares to be issued to the
Holder may bear the following legend:

 

“THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”).  THEY MAY NOT
BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE ACT OR AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
REQUIRED.”

 

5.                                      ADJUSTMENT
OF EXERCISE PRICE AND SHARES.

 

(a)           In the event of
changes in the outstanding Common Stock of the Company by reason of stock
dividends, split-ups, recapitalizations, reclassifications, combinations or
exchanges of shares, separations, reorganizations, liquidations, consolidation,
acquisition of the Company (whether through merger or acquisition of
substantially all the assets or stock of the Company), or the like, the number
and class of shares available under the Warrant in the aggregate and the
Exercise Price shall be correspondingly adjusted to give the Holder of the
Warrant, on exercise for the same Aggregate Exercise Price, the total number,
class, and kind of shares or other property as the Holder would have owned had
the Warrant been exercised prior to the event and had the Holder continued to
hold such shares until the event requiring adjustment; provided, however, that such adjustment
shall not be made with respect to a Cash Transaction (as defined in Section 8
below).  For purposes of this Section 5
and Section 7, the “Aggregate

 

5

 

Exercise Price” shall mean the aggregate Exercise
Price payable in connection with the exercise in full of this Warrant.  The form of this Warrant need not be changed
because of any adjustment in the number of Exercise Shares subject to this
Warrant.

 

(b)           If at any time or
from time to time the holders of Common Stock of the Company (or any shares of
stock or other securities at the time receivable upon the exercise of this
Warrant) shall have received or become entitled to receive, without payment
therefor,

 

(i)            Common Stock or
any shares of stock or other securities which are at any time directly or
indirectly convertible into or exchangeable for Common Stock, or any rights or
options to subscribe for, purchase or otherwise acquire any of the foregoing by
way of dividend or other distribution (other than a dividend or distribution
covered in Section 5(a) above),

 

(ii)           any cash paid or
payable otherwise than as a cash dividend or

 

(iii)         Common Stock or
additional stock or other securities or property (including cash) by way of
spinoff, split-up, reclassification, combination of shares or similar corporate
rearrangement (other than shares of Common Stock pursuant to Section 5(a) above),

 

then and in each such
case, the Holder hereof will, upon the exercise of this Warrant, be entitled to
receive, in addition to the number of shares of Common Stock receivable
thereupon, and without payment of any additional consideration therefor, the
amount of stock and other securities and property (including cash in the cases
referred to in clauses (ii) and (iii) above) which such Holder would
hold on the date of such exercise had such Holder been the holder of record of
such Common Stock as of the date on which holders of Common Stock received or
became entitled to receive such shares or all other additional stock and other
securities and property.

 

6.             FRACTIONAL SHARES.  No fractional shares shall
be issued upon the exercise of this Warrant as a consequence of any adjustment
pursuant hereto.  All Exercise Shares
(including fractions) issuable upon exercise of this Warrant may be aggregated
for purposes of determining whether the exercise would result in the issuance
of any fractional share.  If, after
aggregation, the exercise would result in the issuance of a fractional share,
the Company shall, in lieu of issuance of any fractional share, pay the Holder
otherwise entitled to such fraction a sum in cash equal to the product
resulting from multiplying the then current fair market value of an Exercise
Share by such fraction.

 

7.             REORGANIZATION.  For purposes of this Warrant: (a) the
term “Fundamental Transaction”
shall mean any capital reorganization of the capital stock of the Company
(other than a change in par value or from par value to no par value or no par
value to par value or as a result of a stock dividend or subdivision, split-up
or combination of shares), or an Acquisition or Asset Transfer; (b) the
term “Acquisition”
shall mean any consolidation or merger of the Company with or into any
other corporation or other entity or person, or any other corporate reorganization,
other than any such consolidation, merger or reorganization in which the
stockholders of the Company immediately prior to such consolidation, merger or
reorganization, continue to hold at least a majority of the voting power of the
surviving entity in substantially the

 

6

 

same proportions (or, if the surviving entity is a wholly owned
subsidiary, its parent) immediately after such consolidation, merger or
reorganization; and (c) the term “Asset Transfer” shall mean a
sale, lease, exclusive license or other disposition of all or substantially all
of the assets of the Company.  In the event of any Fundamental Transaction
other than a Cash Transaction (as defined in Section 8 below) at any time
during the Exercise Period, then, as a condition of such Fundamental
Transaction, lawful and adequate provisions shall be made by the Company
whereby the Holder hereof shall thereafter have the right to purchase and
receive (in lieu of the Exercise Shares of the Company immediately theretofore
purchasable and receivable upon the exercise of the rights represented hereby)
such shares of stock, securities or other assets or property as may be issued
or payable with respect to or in exchange for a number of outstanding shares of
such Exercise Shares equal to the number of shares of such stock immediately
theretofore purchasable and receivable upon the exercise of the rights
represented hereby, and the Exercise Price shall be appropriately adjusted so
that the Aggregate Exercise Price after such Fundamental Transaction shall be
equal to the Aggregate Exercise Price immediately prior to such Fundamental
Transaction.

 

8.             EARLY TERMINATION.  For purposes of this
warrant, the term “Cash Transaction” shall mean
a Fundamental Transaction in which the consideration received by the Company’s
stockholders in exchange for their Common Stock consists solely of cash.  In the event of any Cash Transaction at any
time during the Exercise Period, the Company shall provide to the Holder twenty
(20) days advance written notice of such event, and this Warrant shall be
deemed to have been net exercised pursuant to Section 2.2 unless otherwise
exercised prior to the date of such event.

 

9.             NO STOCKHOLDER RIGHTS.  Except as expressly set
forth in Sections 3.3 and 5 hereof, this Warrant in and of itself shall
not entitle the Holder to any voting rights or other rights as a stockholder of
the Company.

 

10.          TRANSFER OF WARRANT.  Subject to applicable laws
and the restriction on transfer set forth on the first page of this
Warrant and set forth in the Purchase Agreement, this Warrant and all rights
hereunder are transferable, by the Holder in person or by duly authorized
attorney, upon delivery of this Warrant and the form of assignment attached hereto
to any transferee designated by Holder. 
The transferee shall sign an investment letter in form and substance
reasonably satisfactory to the Company and its counsel.

 

11.          LOST, STOLEN, MUTILATED OR DESTROYED
WARRANT.  If this
Warrant is lost, stolen, mutilated or destroyed, the Company may, on such terms
as to indemnity or otherwise as it may reasonably impose (which shall, in the
case of a mutilated Warrant, include the surrender thereof), issue a new
Warrant of like denomination and tenor as the Warrant so lost, stolen,
mutilated or destroyed.  Any such new
Warrant shall constitute an original contractual obligation of the Company,
whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall
be at any time enforceable by anyone.

 

12.          NOTICES, ETC.  All notices required or
permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon
personal delivery to the party to be notified, (b) when sent by confirmed
telex or facsimile if sent during normal business hours of the recipient, if
not, then on the next business day, (c) five days after having been sent
by registered or certified mail,

 

7

 

return receipt requested, postage prepaid, or (d) one day after
deposit with a nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt. 
All communications shall be sent to the Company at the address listed on
the signature page hereto and to Holder at the applicable address set
forth on the Schedule of Purchasers attached as Exhibit A to the
Purchase Agreement or at such other address as the Company or Holder may
designate by 10 days advance written notice to the other parties hereto.

 

13.          ACCEPTANCE.  Receipt of this Warrant by
the Holder shall constitute acceptance of and agreement to all of the terms and
conditions contained herein.

 

14.          GOVERNING LAW.  This Warrant and all
rights, obligations and liabilities hereunder shall be governed by the laws of
the State of California.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

8

 

IN WITNESS WHEREOF, the Company
has caused this Warrant to be executed by its duly authorized officer as of March 7,
2006.

 

 

	
   

  	
  FAVRILLE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  John P. Longenecker,
  Ph.D.

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  10421 Pacific Center
  Court, Suite 150

  San Diego, California 92121

  
				

 

9

 

NOTICE OF EXERCISE

 

TO:  FAVRILLE, INC.

 

(1)           o            The undersigned hereby elects to
purchase              shares
of the Common Stock of FAVRILLE, INC.  (the “Company”)
pursuant to the terms of the attached Warrant, and tenders herewith payment of
the exercise price in full, together with all applicable transfer taxes, if
any.

 

o            The undersigned hereby elects to
purchase               
shares of Common Stock of the Company pursuant to the terms of the net exercise
provisions set forth in Section 2.1 of the attached Warrant, and shall
tender payment of all applicable transfer taxes, if any.

 

(2)           Please issue a certificate or certificates representing
said shares of Common Stock of the Company in the name of the undersigned or in
such other name as is specified below:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Name)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Address)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Date)

  	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Print name)

  	
   

  
						

 

10

 

ASSIGNMENT FORM

 

	
  (To assign the
  foregoing Warrant, execute this form

  and supply required information. Do not use this

  form to purchase shares.)

  

 

FOR VALUE RECEIVED, the
foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	
  Name:

  	
   

  
	
   

  
	
  (Please Print)

  
	
   

  
	
  Address:

  	
   

  
	
   

  
	
  (Please Print)

  
	
   

  
	
  Dated:
               ,
  20  

  
	
   

  
	
  Holder’s

  
	
   

  
	
  Signature:

  	
   

  	
   

  
	
   

  
	
  Holder’s

  
	
   

  
	
  Address:

  	
   

  	
   

  
					

 

 

NOTE:  The signature to this Assignment Form must
correspond with the name as it appears on the face of the Warrant, without
alteration or enlargement or any change whatever.  Officers of corporations and those acting in
a fiduciary or other representative capacity should file proper evidence of
authority to assign the foregoing Warrant.

 

11Exhibit 10.2

 

SUMMARY OF COMPENSATION
ARRANGEMENTS WITH NAMED EXECUTIVE OFFICERS

 

On
October 27, 2005, the Board of Directors of J.B. Hunt Transport Services, Inc.
(“the Company”) approved the following base salaries (effective as of October 30,
2005) and the following other compensation amounts (effective January 1, 2006)
as indicated:

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Other
  Annual

  	
   

  	
  All
  Other

  	
   

  
	
   

  	
   

  	
  Base

  	
   

  	
  Bonus

  	
   

  	
  Compensation

  	
   

  	
  Compensation

  	
   

  
	
  Named Executive Officer

  	
   

  	
  Salary

  	
   

  	
  ($)

  	
   

  	
  ($)

  	
   

  	
  ($)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wayne Garrison

  Chairman of the Board

  	
   

  	
  $

  	
  500,000

  	
   

  	
   

  	
  (1)

  	
   

  	
  (2)

  	
   

  	
  (3)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kirk Thompson

  President and CEO

  	
   

  	
  $

  	
  600,000

  	
   

  	
   

  	
  (1)

  	
   

  	
  (2)

  	
   

  	
  (3)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jerry Walton

  EVP, Finance/Administration and CFO

  	
   

  	
  $

  	
  355,000

  	
   

  	
   

  	
  (1)

  	
   

  	
  (2)

  	
   

  	
  (3)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Paul Bergant EVP,

  Marketing, CMO, President of Intermodal

  	
   

  	
  $

  	
  315,000

  	
   

  	
   

  	
  (1)

  	
   

  	
  (2)

  	
   

  	
  (3)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Craig Harper

  EVP, Operations and COO

  	
   

  	
  $

  	
  305,000

  	
   

  	
   

  	
  (1)

  	
   

  	
  (2)

  	
   

  	
  (3)

  

 

(1)   The Company has a performance-based bonus
program that is related to the Company’s earnings per share (EPS) for calendar
year 2006.  According to the 2006 EPS
bonus plan, each of the company’s named executive officers may earn a bonus
ranging from 5% to 220% of his annual base salary.  Based on the Company’s current expectations
for 2006 EPS, each named executive officer can be projected to earn a bonus
equal to between 55% and 85% of his base salary.

 

(2)   The Company will reimburse each named
executive officer up to $10,000 for actual expenses incurred for tax and estate
plan preparation services.

 

(3)   The Company has a 401(k) retirement plan that
includes matching contributions on behalf of each of the named executive
officers.  The plan is expected to pay
each named executive officer approximately $6,000 during 2006.

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