Document:

exv10w46

 

Exhibit 10.46

CSK AUTO, INC.

March 31, 2008

Brian Woods

[Address]

Dear Brian:

     In connection with your employment by CSK Auto, Inc. (the “Company”), the Company currently
reimburses the costs incurred by you in connection with (i) your relocation to the Phoenix, Arizona
area and (ii) temporary living arrangements in Phoenix, Arizona area.

     The Company agrees that if, prior to the sale of your home in Dallas, Texas and the completion
of your permanent relocation to the Phoenix, Arizona area (including purchase of a home in
Phoenix), the Company enters into an agreement that, if consummated, would result in a Change in
Control (as defined in the CSK Auto Corporation 2004 Stock and Incentive Plan), then from and after
the consummation of the Change in Control and until the earlier of (A) the date that is eight
months after the consummation of the Change of Control transaction and (B) the date that is six
months following the date of your termination of employment for any reason, the Company (and any
successor thereto) will continue to reimburse you for relocation, home sale and purchase, and
temporary living expenses on terms no less favorable than those provided to you prior to the
consummation of the Change in Control, which items shall include, but shall not be limited to, the
terms set forth in Appendices A & B hereto and, to the extent not inconsistent with
Appendices A & B, the CSK Auto, Inc. Relocation Policy as in effect and applicable to you
prior to the Change in Control.

signature page follows

 

 

Brian Woods

March 31, 2008

Page 2

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

	 	 	 	 	 
	 
	 	CSK AUTO, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ LAWRENCE N. MONDRY
	 

	 	 	 	 
	 

	 	 	 	Name: Lawrence N. Mondry
Title: President and Chief Executive Officer
	 
	 	 	 	 
	 
	 	CSK AUTO CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ LAWRENCE N. MONDRY
	 

	 	 	 	 
	 

	 	 	 	Name: Lawrence N. Mondry
Title: President and Chief Executive Officer
	 
	 	 	 	 
	 
	 	BRIAN WOODS
	 
	 	 	 	 
	 
	 	/s/ BRIAN K. WOODS
	 
	 	 

 

 

Brian Woods

March 31, 2008

Page 3

Appendix A — Approved Relocation Expenses

Effective as of March 31, 2008, the following relocation and temporary living expense
reimbursements have been approved by the Compensation Committee of the Board of Directors of the
Company and CSK Auto Corporation:

	•	 	Temporary housing consistent with the Executive’s existing accommodations in and around the
Phoenix, Arizona metropolitan area or comparable housing in the Executive’s sole discretion.
	 
	•	 	The actual cost incurred by you of each of the expenses detailed on the relocation estimate
attached hereto as Appendix B, whether you move to the Phoenix, Arizona metropolitan
area or another city, and whether or not the actual amount of a particular expense equals or
exceeds the amount shown on Appendix B; provided, however, that the reimbursement
obligation for moving costs shall not exceed the estimated expense shown on Appendix
B.
	 
	•	 	Reimbursement of the cost to transport you and your family and any and all of your personal
goods back to Dallas, Texas following termination of your employment for any reason other than
Cause.exv10w47

 

Exhibit 10.47

M E M O R A N D U M

	 	 	 
	TO:

	 	All G & A Incentive Plan Participants
	 
	 	 
	FROM:

	 	Larry Mondry
	 
	 	 
	DATE:

	 	March                     , 2008
	 
	 	 
	SUBJECT:

	 	2008 GENERAL AND ADMINISTRATIVE STAFF INCENTIVE PLAN

The 2008 General and Administrative Staff Incentive Plan is a vital part of CSK Auto,
Inc.’s total compensation program. The purpose of the Plan is to reward eligible
associates for assisting the Company in achieving its operational and strategic goals
through exemplary performance. Under the Plan, cash bonuses, if any, will be paid to
eligible associates in Spring 2009 (or as soon thereafter as is reasonably feasible) based
on the level of achievement of individual and Company performance goals, contingent upon
adherence to the Company’s codes of ethics and subject to obtaining appropriate management
and Board of Director approvals.

Associate bonus level and eligibility are based on the position held at the beginning of
each quarter. In summary, to be eligible to receive a bonus for a quarter, an associate
must:

	 	•	 	hold a bonus eligible position on the 1st day of the quarter;
and
	 
	 	•	 	not change to a non-bonus eligible position at any time during the quarter;
and
	 
	 	•	 	be continuously employed by the Company until at least the day the bonus is
paid; provided, however, that a pro rata bonus will be paid if you are
involuntarily terminated not for Cause, prior thereto.

Depending upon hire date and/or changes in position, an associate may be bonus eligible for
some, but not all, quarters during the year. Bonus eligible associates on leave during a
quarter will receive a pro-rated bonus for that quarter.

Bonus eligibility is calculated separately for each quarter by multiplying 25% of the
associate’s salary by the bonus percent assigned to that Position Level based on achieving
individual and Company performance goals. The sum of the bonus payable (if any) for each of
these two categories represents the quarterly bonus amount.

Your position level and the bonus percent of your salary based upon the established goals
are attached to this memo. This memo is only a summary of certain provisions of the Plan.
A copy of the Plan document is attached. In the event of any inconsistency between this
memo and the Plan document, the Plan document shall prevail.

 

 

2008 GENERAL AND ADMINISTRATIVE

STAFF INCENTIVE PLAN

1.0 PURPOSE

The 2008 General and Administrative Staff Incentive Compensation Plan (the “Plan”) is a
vital part of CSK Auto, Inc.’s (the “Company”) total compensation program. The purpose of
the Plan is to reward eligible associates for assisting the Company in achieving its
operational and strategic goals through exemplary performance.

2.0 OVERVIEW AND ELIGIBILITY

Under the Plan, cash bonuses (“Bonus”), if any, will be paid to eligible associates in
Spring 2009 (or as soon thereafter as is reasonably feasible) based on the level of
achievement of individual and Company performance goals, contingent upon adherence to the
Company’s codes of ethics and subject to obtaining appropriate management and Board of
Director approvals. For senior officers, the Plan is subject to the terms and provisions
concerning the fiscal 2008 bonus as set forth in the senior officer Severance and Retention
Agreements and the relevant provisions of such Severance and Retention Agreements are
hereby incorporated by reference, as if set out in full. In the event of any conflict
between this Plan and the Severance and Retention Agreements, the Severance and Retention
Agreements shall control.

Associate bonus level and eligibility are based on the position held by Bonus eligible
associates (as hereafter defined) during each fiscal quarter. Except as provided in the
Severance and Retention Agreements, to be eligible to receive a bonus, an associate (“Bonus
Eligible Associate”) must:

	 	•	 	be actively employed in a position identified in Appendix A (“Bonus Eligible
Positions”) on the 1st day of the quarter (“Eligibility Date”)
during fiscal 2008; and
	 
	 	•	 	not change to a non-bonus Eligible Position at any time during the quarter
except for certain transfers to and from positions eligible for the Store
Operations or similar Bonus Programs; and
	 
	 	•	 	be continuously employed by the Company in any position until at least the
day the bonus is paid; provided, however, that if an associate is involuntarily
terminated without Cause (as defined below) prior to such payout date, he will
be eligible for a pro rata bonus (on the date bonuses are otherwise paid) equal
to the normal quarterly (or other applicable period) bonus multiplied by a
fraction, the numerator of which is the number of days the associate was
employed during the quarter (or other applicable period), and the denominator
of which is the total number of days in such calendar quarter (or other
applicable period). The pro rata bonuses will be based on the actual Company
Performance for such bonus period and a deemed Individual Performance at Level
II. This pro rata provision does not apply to Senior Officers following a
Change in Control; instead, the terms of the Severance and Retention Agreements
shall apply.

Changes in position/status during a quarter other than as set forth above shall not be
taken into consideration in determining Bonus Eligibility for that quarter, except that
associates on leave during any part of the quarter (including the first day of the quarter)
will receive a pro-rated portion of the Bonus otherwise payable for that quarter.
Depending upon hire date and/or changes in position, an associate may be Bonus Eligible for
some, but not all quarters during the year.

For purposes of this Plan, the term “Cause” means, with respect to any associate, (a) any
definition of “for cause” or similar concept contained in any employment agreement,
personal services agreement, retention agreement, severance agreement or similar agreement
applicable

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to such associate, or, in the absence of any such definition or any such agreement, (b)
fraud or embezzlement, gross negligence in the performance or nonperformance of duties for
the Company or any subsidiary or parent of the Company, or material failure or refusal to
perform duties at any time as an employee of the Company or any subsidiary or parent of the
Company.

3.0 POSITION LEVEL

Bonus Eligible Associates shall be notified by their department head of their position
level and of any subsequent changes in their Position Level.

4.0 BONUS CALCULATION 

The Bonus of an Eligible Associate on an Eligibility Date shall be calculated for that
quarter by multiplying 25% of the associate’s Salary (as defined below) by the Bonus
Percent of Salary assigned to the applicable position level for the level of each goal
achieved (as defined below). The sum of the bonus payable (if any) for each of the two
goal categories (Individual and Company) represents the quarterly bonus amount.

4.01 PERFORMANCE GOALS 

I. Individual Performance Goals: “Individual Performance” as used in this Plan
means overall performance relative to goals, responsibilities, and competencies of an
individual plan participant as assessed and documented on the CSK annual Performance
Evaluation completed for the 2008 fiscal year. Achievement of the Individual Performance
goal for the purposes of this Plan correlates to the annual Performance Evaluation ratings
as follows:

	 	 	 
	Performance Assessment	 	Incentive Award Individual Performance
	Level	 	Achievement Level
	• Distinguished - Consistently exceeds
job requirements. Performance is
recognized as clearly exceptional.

	 	Level III
	 
	 	 
	Rating of 9 or 10 out of 10
	 	 
	 
	 	 
	• Superior - Above average performance
with minimal supervision or guidance.

	 	Level II
	 
	 	 
	Rating of 7 or 8 out of 10
	 	 
	 
	 	 
	• Meets Requirements - Satisfactory
performance with some supervision and
guidance needed.

	 	Level I
	 
	 	 
	Rating of 5 or 6 out of 10
	 	 

For Vice Presidents, Senior Vice Presidents and Executive Vice Presidents, subject to the
terms and provisions concerning the fiscal 2008 bonus as set forth in the senior officer
Severance and Retention Agreements (applicable to senior officers only), 75% of the bonus
eligibility is based on Company Performance and 25% of the bonus eligibility is based on
Individual Performance. For positions below the Vice President level, Individual
Performance and Company Performance are

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weighted equally (each equal to 50% of the Bonus opportunity). The Appendix lists the
incentive award associated with each Individual Performance level.

The documentation of Individual Performance levels achieved shall be completed through the
annual Performance Evaluation process by the direct supervisor of the individual plan
participant and reviewed by the Department Vice President and approved by the Chief
Executive Officer or other Senior Officer (as applicable, depending upon reporting
relationships).

II. Company Performance Goal: The “Company Performance” as used in this Plan refers
specifically to the Company’s performance relative to achievement of an earnings-related
goal (EBITDA, as defined below) established for 2008 fiscal year.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) as used in this
Plan means consolidated earnings before interest, income taxes, depreciation, and
amortization.  EBITDA will be calculated before (1) costs related to the ongoing regulatory
investigations and securities class action relative to the Company’s historical accounting
practices, including any settlement costs, defense costs, fines or penalties, (2) costs
including professional fees incurred in connection with the Board of Director’s evaluation
of strategic alternatives, (3) equity related compensation whether or not the amount is
paid in cash, (4) cash-in-lieu of equity bonus, (5) non-recurring gains or losses including
any impairment charges or asset write-offs, (6) purchase accounting adjustments, and, (7)
any other adjustments to EBITDA made in good faith by the Compensation Committee of the
Board of Directors.

III. The Appendix lists the specific target performance levels and incentive award
applicable to each goal category.

4.03 SALARY

“Salary” as used in this Plan means base annual salary as of the end of the fiscal year.

4.04 BONUS CALCULATION — EXAMPLE

A sample bonus calculation is listed in the Appendix, showing the Bonus Percent applicable
to each goal category, based upon the performance level achieved for each goal.

5.0 ADMINISTRATION

The Plan is administered by the Chief Executive Officer and Board of Directors who will
make such rules and regulations regarding the Plan as deemed necessary to implement its
terms and who shall be the sole arbiters of all Plan-related questions, including
eligibility, extent of participation, and amount of bonuses paid hereunder.

6.0 NO EMPLOYMENT RIGHTS

The designation of an associate as a participant will not give such associate any right to
continued employment with the Company. The Company reserves its rights to suspend, demote,
transfer, or terminate any associate.

6.01 UNFUNDED PROGRAM

The Plan is an unfunded program. The Company does not have an obligation to set aside,
earmark or entrust any fund, policy or money with which to pay obligations under the plan.
The amount of money payable under the Plan with respect to participants will be paid from
general revenues.

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6.02 RIGHT TO AMEND

Prior to a Change in Control (as defined below), the Company reserves the right to change,
revise or rescind the policies or statements described in this document .

Notwithstanding anything herein to the contrary, following a Change in Control, no change,
modification, revision, amendment or termination of this Plan (as evidenced by this
document) shall be made which would impair the rights of any associate to a Bonus under
this Plan without such associate’s consent.

For purposes of this Plan, the term “Change in Control” means the occurrence of any one of
the following:

(a) any person is or becomes the beneficial owner, directly or indirectly, of securities of
the Company (or its parent corporation) representing 30% or more of the combined voting
power of the Company’s (or its parent corporation’s, as applicable) then outstanding
securities, excluding any person who becomes such a beneficial owner in connection with a
Qualifying Business Combination described in paragraph (c) below or who becomes such a
beneficial owner as a result of a change in ownership percentage resulting solely from an
acquisition of securities by the Company (or its parent corporation); or

(b) the following individuals cease for any reason to constitute a majority of the number
of directors then serving on the Board of Directors of the Company or its parent
corporation: individuals who, on February 4, 2008, constitute the Board of Directors of the
Company or its parent corporation, as applicable, and any new director (other than a
director whose initial assumption of office is in connection with an actual or threatened
election contest, including, but not limited to, a consent solicitation relating to the
election of directors of the Company or its parent corporation, as applicable,) whose
appointment or election by the Board of Directors of the Company or its parent corporation,
as applicable, or nomination for election by the Company’s (or its parent corporation’s, as
applicable) stockholders was approved or recommended by a vote of at least two-thirds (2/3)
of the directors then still in office who either were directors on February 4, 2008 or
whose appointment, election or nomination for election was previously so approved or
recommended; or

(c) there is consummated a reorganization, merger or consolidation of the Company (or its
parent corporation) with, or sale or other disposition of all or substantially all of the
assets of the Company (or its parent corporation) in one or a series of related
transactions to, any other person (a “Business Combination” ), other than a Business
Combination that would result in the voting securities of the Company (or its parent
corporation, as applicable) outstanding immediately prior to such Business Combination
continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or any parent thereof) more than 50% of the combined
voting power of the securities of the Company (or its parent corporation, as applicable) or
such surviving entity or any parent thereof outstanding immediately after such Business
Combination (a “Qualifying Business Combination” ); or

(d) the stockholders of the Company (or its parent corporation) approve a plan of complete
liquidation or dissolution of the Company (or its parent corporation, as applicable) or
there is consummated an agreement for the sale or disposition by the Company (or its parent
corporation) of all or substantially all of the Company’s assets, other than a sale or
disposition by the Company (or its parent corporation) of all or substantially all of the
Company’s assets to any other person more than 50% of the combined voting power of the
outstanding securities of which is owned by stockholders of the Company (or its parent
corporation) in substantially the same proportions as their ownership of the Company (or
its parent corporation, as applicable) immediately prior to such sale.

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6.03 CONFIDENTIALITY

The terms of the Plan that are not otherwise publicly disclosed by the Company are to be
held strictly confidential and may not be disclosed to anyone other than immediate family
members. Any such disclosure made by any associate in violation of the terms of the Plan
may result in forfeiture of said associate’s benefits under the Plan.

6.04 TERMINATION AND RE-EMPLOYMENT DURING FISCAL YEAR

If a Bonus Eligible Associate’s employment with the Company is terminated for any reason
and the associate is subsequently rehired, unless reinstated, the associate shall not be
considered Bonus Eligible until a quarter in which the associate meets all of the
requirements for Bonus Eligibility. The prior period of Bonus Eligible employment shall not
be considered in determining the associate’s Bonus, unless the terminated Bonus Eligible
Associate was reinstated. However, notwithstanding the above, the Associate shall receive
a pro rata bonus for the bonus period in which he was terminated if he was involuntarily
terminated without Cause during such bonus period.

6.05 TRANSFERS TO AND FROM NON-BONUS ELIGIBLE POSITIONS, LEAVES OF ABSENCE, AND
RELATED MATTERS DURING A QUARTER

If a Bonus Eligible Associate transfers voluntarily or involuntarily to a non-Bonus
Eligible Position at any time during the quarter, other than after the 15th day
of the second month of the quarter to a position eligible to participate in Store
Operations Incentive Bonus plan (or similar plan) for that quarter, the associate shall not
be Bonus Eligible for any part of that quarter and shall not receive any portion of a Bonus
for that quarter. If an associate otherwise eligible to participate in the Store
Operations Incentive Bonus Plan (or any similar plan based upon quarterly performance)
transfers for any reason to a General and Administrative Staff Incentive Plan Bonus
Eligible Position after the Eligibility Date, but effective on or before the
15th day of the second month of the quarter, the associate shall be deemed to be
in a Bonus Eligible Position on the Effective Date for the quarter. In no event shall an
associate receive a bonus from both this Bonus Plan and the Store Operations Incentive
Bonus Plan (or any similar plan) for the same quarter.

If an associate is absent from work due to an approved or unapproved leave of absence (LOA)
during any portion of one or more quarters, the Bonus otherwise payable to the associate
for the quarter(s) shall be subject to proration in situations where total LOA calendar
days during the quarter(s) constitute 25% or more of the calendar days in the relevant
quarter(s). The proration shall be based on the percentage of the quarter(s) the associate
is in LOA status (LOA days/bonus period days). For example, if an associate is on a LOA
for 35 days of a 90 day quarter, any Bonus otherwise payable would be reduced by (35/90),
or 38%. When the number of days an associate is absent from work during a quarter is such
that any proration as described above would have only a nominal impact on the amount of the
Bonus payable, the Chief Executive Officer and/or Board of Directors may determine, in
his/their sole discretion, that the Bonus need not be pro-rated for that quarter.

Except as otherwise stated in this document, all determinations of Bonus Eligibility shall
be based solely upon an associate’s position on the Eligibility Date.

6.06 DISQUALIFICATION FOR VIOLATION OF COMPANY POLICY

Notwithstanding anything herein to the contrary, any associate who violates any Company
policy during the fiscal year, or attempts to alter, manipulate, or falsely present any
facts which bear upon any aspect of this Plan may, at the sole discretion of the Chief
Executive Officer, forfeit any benefits hereunder, in addition to any other disciplinary
action to which said associate may be subject.

5

 

6.07 TAX GUIDELINES

All Bonuses are considered taxable income and are subject to any and all taxes required by law to
be withheld.

6

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