Document:

exv10w2

 

EXHIBIT 10.2

ARKANSAS BEST CORPORATION

2005 OWNERSHIP INCENTIVE PLAN

1. Purpose

The purpose of the Arkansas Best Corporation 2005 Ownership Incentive Plan (the “Plan”) is
to advance the interests of the Arkansas Best Corporation (the “Company”) by stimulating
the efforts of employees, officers and directors, in each case who are selected to be participants,
by heightening the desire of such persons to continue in working toward and contributing to the
success and progress of the Company. The Plan supersedes the Company’s 2002 Stock Option Plan and
Nonqualified Stock Option Plan with respect to future awards, and provides for the grant of
Incentive and Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock and
Restricted Stock Units, any of which may be performance-based, and for Performance Award Units,
which may be paid in cash or stock or a combination thereof, as determined by the Committee.

2. Definitions

As used in the Plan, the following terms will have the meanings set forth below:

     (a) “Award” means an Incentive Stock Option, Nonqualified Stock Option, Stock
Appreciation Right, Restricted Stock, Restricted Stock Unit or Performance Award Unit granted to a
Participant pursuant to the provisions of the Plan, any of which the Committee may structure to
qualify in whole or in part as “performance-based compensation” under Section 162(m) of the Code.

     (b) “Award Agreement” means a written agreement or other instrument as approved from
time to time by the Committee implementing the grant of each Award. An Agreement may be in the form
of an agreement to be executed by both the Participant and the Company (or an authorized
representative of the Company) or certificates, notices or similar instruments as approved by the
Committee.

     (c) “Board” means the Board of Directors of the Company.

     (d) “Change in Control” means, unless the Committee or the Board provides otherwise,
the occurrence of any of the following events:

          (i) The acquisition by any individual, entity or group (within the meaning of Section 13(d) or
14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a
“Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 35% or more of either (i) the then outstanding Shares (the “Outstanding
Company Common Stock”) or (ii) the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of directors (the
“Outstanding Company Voting Securities”); provided, however, that for purposes of this
subsection (i), the following acquisitions will not constitute a Change in Control: (A) any
acquisition directly from the Company, (B) any acquisition by the Company, (C) any acquisition by
any employee benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company or (D) any acquisition by any corporation pursuant to a
transaction that constitutes a Merger of Equals as defined in subsection (iii) of this Section
2(d).

          (ii) In any 12-month period, the individuals who, as of the beginning of the 12-month period,
constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a
majority of the Board of Directors; provided, however, that any individual becoming a director
subsequent to the Effective Date whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least a majority of the directors then comprising the
Incumbent Board will be considered as though such individual were a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election or removal of
directors or other actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board of Directors.

          (iii) Consummation of a reorganization, merger, statutory share exchange or consolidation or
similar corporate transaction involving the Company or any of its subsidiaries (each, a “Business
Combination”), in each case, unless such Business Combination constitutes a Merger of Equals. A
Business Combination will constitute a “Merger of Equals” if, following such Business Combination,
(A) all or substantially all of the individuals and

 

 

entities that were the beneficial owners,
respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities
immediately prior to such Business Combination beneficially own, directly or indirectly, more than
50% of, respectively, the then outstanding shares of common stock and the combined voting power of
the then outstanding voting securities entitled to vote generally in the election of directors, as
the case may be, of the corporation resulting from such Business Combination (including, without
limitation, a corporation which as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or through one or more subsidiaries) (the
“Resulting Corporation”) in substantially the same proportions as their ownership, immediately
prior to such Business Combination of the Outstanding Company Common Stock and Outstanding Company
Voting Securities, as the case may be, (B) no Person (excluding the Resulting Corporation and its
affiliates or any employee benefit plan (or related trust) of the Resulting Corporation and its
affiliates) beneficially owns, directly or indirectly, 35% or more of, respectively, the
then-outstanding shares of common stock of the Resulting Corporation or the combined voting power
of the then outstanding voting securities of the Resulting Corporation except to the extent that
such ownership existed with respect to the Company prior to the Business Combination, and (C) at
least a majority of the members of the board of directors of the Resulting Corporation (the
“Resulting Board”) were members of the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Board of Directors, providing for such Business Combination; or

          (iv) The sale or other disposition of all or substantially all of the assets of the Company to
any Person, other than a transfer to (A) any corporation or other Person of which a majority of its
voting power or its voting equity securities or equity interest is owned, directly or indirectly,
by the Company or (B) any corporation pursuant to a transaction that constitutes a Merger of Equals
as defined in subsection (iii) of this Section 2(d).

          (v) A complete liquidation or dissolution of the Company.

Notwithstanding anything herein to the contrary, in no event shall amounts in respect of Awards
that, as determined by the Committee in its sole discretion, provide for the deferral of
compensation, be distributed upon a Change in Control prior to the occurrence of either a “change
in the ownership or effective control” of the Company or in the “ownership of a substantial portion
of the assets” of the Company within the meanings ascribed to such terms in Treasury Department
regulations or other guidance issued under Section 409A of the Code.”

     (e) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
the rulings and regulations issued thereunder.

     (f) “Committee” has the meaning set forth in Section 3.

     (g) “Company” means Arkansas Best Corporation, a Delaware corporation.

     (h) “Director” means each member of the Board who is not an officer or employee of the
Company or any Subsidiary.

     (i) “Fair Market Value” on a date means the closing price per Share on such date as
quoted on the National Association of Securities Dealers Automated Quotation System or such other
market in which such prices are regularly quoted, unless the Committee provides otherwise.

     (j) “Incentive Stock Option” means a stock option that is intended to qualify as an
“incentive stock option” within the meaning of Section 422 of the Code.

     (k) “Nonqualified Stock Option” means a stock option that does not qualify as an
“incentive stock option” within the meaning of Section 422 of the Code.

     (l) “Option” means an Incentive Stock Option and/or a Nonqualified Stock Option
granted pursuant to Section 7.

     (m) “Participant” means any individual described in Section 4 to whom the Committee
grants or has granted Awards and any authorized transferee of such individual.

     (n) “Performance Award Unit” means a bonus opportunity awarded under Section 10
pursuant to which a Participant may become entitled to receive an amount based on satisfaction of
performance criteria specified in the Award Agreement.

     (o) “Plan” means Arkansas Best Corporation 2005 Ownership Incentive Plan as set forth
herein and as amended from time to time.

 

 

     (p) “Prior Plans” mean the 2002 Arkansas Best Corporation Stock Option Plan, the Arkansas
Best Corporation Nonqualified Stock Option Plan and the 1992 Arkansas Best Corporation Stock Option
Plan.

     (q) “Qualifying Performance Criteria” has the meaning set forth in Section 14(b).

     (r) “Restricted Stock” means Shares granted pursuant to Section 9.

     (s) “Restricted Stock Unit” means an Award granted to a Participant pursuant to
Section 9 pursuant to which Shares or cash in lieu thereof may be issued in the future.

     (t) “Retirement” means, unless the Committee specifies otherwise in an Award
Agreement, (i) with respect to Participants other than Directors, retirement from active employment
with the Company and its Subsidiaries (A) at or after age 55 and with at least ten (10) years of
service with the Company and its Subsidiaries or (B) at or after age 65, or (ii) with respect to
Directors, retirement from service on the Board at or after age 65 with at least 5 years of Board
service.

     (u) “Shares” means shares of the Company’s common stock, par value $.01, subject to
adjustment as provided in Section 13.

     (v) “Stock Appreciation Right” means a right granted pursuant to Section 8 that
entitles the Participant to receive, in cash, Shares or a combination thereof, an amount equal to
or otherwise based on the excess of (i) the Fair Market Value of a specified number of Shares when
exercised, over (ii) the exercise price of the right, as established by the Committee when granted.

     (w) “Subsidiary” means any corporation (other than the Company) in an unbroken chain
of corporations beginning with the Company where each of the corporations in the unbroken chain
other than the last corporation owns stock possessing at least 50 percent or more of the total
combined voting power of all classes of stock in one of the other corporations in the chain, and if
specifically determined by the Committee in the context other than with respect to Incentive Stock
Options, may include an entity in which the Company has a significant ownership interest or that
the Company directly or indirectly controls.

3. Administration

     (a) Administration of the Plan. The Compensation Committee of the Board or another committee
of two or more directors as established by the Board will administer the Plan (the
“Committee”). Any power of the Committee may also be exercised by the Board of Directors,
except to the extent that the grant or exercise of such authority would cause any Award or
transaction to become subject to (or lose an exemption under) the short-swing profit recovery
provisions of Section 16 of the Exchange Act or disqualify an Award intended to qualify for
treatment as performance-based compensation under Section 162(m) of the Code. To the extent that
any permitted action taken by the Board conflicts with action taken by the Committee, the Board
action will control.

     (b) Delegation of Authority by the Committee. The Committee may delegate to a subcommittee (a
“Subcommittee”) composed of one or more officers of the Company (who may but need not be
members of the Board) the ability to grant Awards and take the same actions as the Committee
described in Section 3(c) or elsewhere in the Plan with respect to Participants who are not
executive officers; provided, however, that the resolution authorizing the Subcommittee must
specify the total number of Shares that may be subject to Awards granted by the Subcommittee
pursuant to the delegated authority. Any Award granted by the Subcommittee will be subject to the
form of Award Agreement approved in advance by the Committee. No officer who is a member of the
Subcommittee may be granted Awards under the authority delegated to the Subcommittee. Any action by
any Subcommittee within the scope of such delegation will be treated for all purposes as if taken
by the Committee and references in this Plan to the Committee will include any such Subcommittee.
The Committee may also delegate the administration of the Plan to one or more officers of the
Company (each a “Plan Administrator”), and the Plan Administrator(s) may have the authority
to execute and distribute Award Agreements or other documents evidencing or relating to Awards,
maintain records relating to the grant, vesting, exercise, forfeiture or expiration of Awards,
process or oversee the issuance of Shares upon the exercise, vesting and/or settlement of an Award,
interpret and administer the terms of Award Agreements and to take such other actions as may be
necessary or appropriate for the administration of the Plan and of Awards under the Plan, subject
to the Committee’s ultimate authority to administer and interpret the Plan.

 

 

     (c) Powers of Committee. Subject to the express provisions of this Plan, the Committee will be
authorized and empowered to do all things that it determines to be necessary or appropriate in
connection with the administration of this Plan, including, without limitation: (i) to prescribe,
amend and rescind rules and regulations relating to this Plan and to define terms not otherwise
defined herein; (ii) to determine which persons are eligible under Section 4 to be granted Awards
and the timing of Awards, if any, to be granted to such eligible persons; (iii) to grant Awards to
Participants and determine the terms and conditions of Awards, including the number of Shares
subject to Awards and the exercise or purchase price of such Shares and the circumstances under
which Awards become exercisable or vested or are forfeited or expire, which terms may but need not
be conditioned upon the passage of time, continued employment, the satisfaction of performance
criteria, the occurrence of certain events (including events which the Board or the Committee
determine constitute a Change in Control), or other factors; (iv) to establish and certify the
extent of satisfaction of any performance goals or other conditions applicable to the grant,
issuance, exercisability, vesting and/or ability to retain any Award; (v) to prescribe and amend
the terms of Award Agreements or other documents relating to Awards made under this Plan (which may
be different) and the terms of or form of any document or notice the Participants are required to
deliver to the Company; (vi) to determine whether, and the extent to which, adjustments are
required pursuant to Section 13; (vii) to interpret and construe this Plan, any rules and
regulations under this Plan and the terms and conditions of any Award granted hereunder, and to
make exceptions to any such provisions in good faith and for the benefit of the Company; and (viii)
to make all other determinations deemed necessary or advisable for the administration of this Plan.

     (d) Determinations by the Committee. All decisions, determinations and interpretations by the
Committee related to the Plan, any rules and regulations under the Plan and the terms and
conditions of or operation of any Award granted hereunder, will be final and binding on all
Participants, beneficiaries, heirs, assigns or other persons holding or claiming rights under the
Plan or any Award. The Committee will consider those factors as it deems relevant, in its sole and
absolute discretion, to making any decisions, determinations and interpretations including, without
limitation, the recommendations or advice of any officer or other employee of the Company and such
attorneys, consultants and accountants as it may select.

     (e) Subsidiary Awards. In the case of a grant of an Award to any Participant employed by a
Subsidiary, the Company may implement such a grant, if the Committee so directs, by issuing any
subject shares to the Subsidiary, for such lawful consideration as the Committee may determine,
upon the condition or understanding that the Subsidiary will transfer the shares to the Participant
in accordance with the terms of the Award specified by the Committee pursuant to the provisions of
the Plan. Notwithstanding any other provision hereof, the Subsidiary may issue the Award by and in
its name and the Award will be deemed granted on the date determined by the Committee.

4. Eligibility

The Committee may select any Director or person who is a current or prospective officer or employee
of the Company or of any Subsidiary for the grant of Awards. Options intending to qualify as
Incentive Stock Options may only be granted to employees of the Company or any Subsidiary within
the meaning of the Code. For purposes of this Plan, the Committee will determine the Chairman of
the Board’s status as an employee.

5. Effective Date and Termination of Plan

The Company’s Board adopted this Plan as of February 24, 2005. The Plan will become effective (the
“Effective Date”) when the Company’s stockholders approve it. The Plan will remain
available for the grant of Awards until the tenth (10th) anniversary of the Effective Date.
Notwithstanding the foregoing, the Board may terminate the Plan at any time. Termination of the
Plan will not affect the rights and obligations of the Participants and the Company arising under
Awards previously granted and then in effect.

6. Shares Subject to the Plan and to Awards

     (a) Aggregate Limits. The maximum aggregate number of Shares issuable pursuant to all Awards
is 1,500,000, plus any shares subject to outstanding awards under the Prior Plans as of the
Effective Date that become available pursuant to Section 6(b). The aggregate number of Shares
available for grant under this Plan and the number of Shares subject to outstanding Awards will be
subject to adjustment as provided in Section 13. The
Shares issued pursuant to Awards granted under this Plan may be authorized and unissued shares
or shares that the Company reacquired, including shares purchased in the open market.

 

 

     (b) Issuance of Shares. For purposes of Section 6(a), the aggregate number of Shares issued
under this Plan at any time equals only the number of Shares actually issued upon exercise or
settlement of an Award. Shares (i) subject to Awards that are canceled, expired, forfeited or
settled in cash and (ii) that are delivered or deemed delivered to the Company in payment or
satisfaction of the exercise price or tax withholding obligation of an Award will again be
available for issuance pursuant to Awards granted under the Plan. In addition, shares subject to
awards made under any of the Prior Plans (i) that do not result in the issuance of Shares as a
result of the awards having been canceled, expired, forfeited or settled in cash or (ii) that are
delivered or deemed delivered to the Company in payment or satisfaction of the exercise price or
tax withholding obligations of an award under a Prior Plan will be available for issuance pursuant
to Awards granted under this Plan.

     (c) Tax Code Limits. The maximum aggregate number of Shares issuable under all Awards granted
under this Plan during any calendar year to any one Participant is 100,000, which number will be
calculated and adjusted pursuant to Section 13 only to the extent that such calculation or
adjustment will not affect the status of any Award intended to qualify as “performance based
compensation” under Section 162(m) of the Code. The maximum aggregate number of Shares that may be
issued pursuant to the exercise of Incentive Stock Options granted under this Plan is 1,500,000,
which number will be calculated and adjusted pursuant to Section 13 only to the extent that such
calculation or adjustment will not affect the status of any option intended to qualify as an
Incentive Stock Option under Section 422 of the Code. For that portion of a Performance Award Unit
granted under this Plan in any calendar year to any Participant that is denominated in dollars (as
opposed to Shares) and is intended to satisfy the requirements for “performance based compensation”
under Section 162(m) of the Code, the maximum amount payable for the performance period is $2
million times the number of years in the performance period.

7. Options

     (a) Option Awards. The Committee may grant Options to Participants at any time prior to the
termination of the Plan. No Participant will have any rights as a stockholder with respect to any
Shares subject to Options until said Shares have been issued. Each Option will be evidenced by an
Award Agreement. Options granted pursuant to the Plan may be different but each Option must contain
and be subject to the terms and conditions set forth below.

     (b) Price. The Committee will establish the exercise price per Share of each Option, which, in
no event will the purchase price be less than the Fair Market Value of a Share on the date of
grant; provided, however, that the exercise price per Share with respect to an Option that is
granted in connection with a merger or other acquisition as a substitute or replacement award for
options held by optionees of the acquired entity may be less than 100% of the Fair Market Value on
the date such Option is granted if based on a formula set forth in the terms of the options held by
such optionees or in the terms of the agreement providing for such merger or other acquisition. The
exercise price of any Option may be paid in cash or, to the extent allowed by the Committee, an
irrevocable commitment by a broker to pay over such amount from a sale of the Shares issuable under
an Option, the delivery of previously owned Shares, withholding of Shares deliverable upon exercise
or a combination thereof.

     (c) No Repricing. Other than in connection with a change in the Company’s capitalization (as
described in Section 13) the exercise price of an Option may not be reduced without shareholder
approval (including canceling previously awarded Options and regranting them with a lower exercise
price).

     (d) Provisions Applicable to Options. In no event may any Option become exercisable sooner
than one (1) year after the date of grant except to the extent provided by the Committee in the
event of the Participant’s death, disability or Retirement or a Change in Control. Unless provided
otherwise in the applicable Award Agreement, the vesting period and/or exercisability of an Option
will be adjusted by the Committee during or to reflect the effects of any period during which the
Participant is on an approved leave of absence or is employed on a less than full-time basis. Each
Option will expire within a period of not more than ten (10) years from the date of grant.

     (e) Incentive Stock Options. Notwithstanding anything to the contrary in this Section 7, in
the case of the grant of an Option intending to qualify as an Incentive Stock Option: (i) if the
Participant owns stock possessing more than 10 percent of the combined voting power of all classes
of stock of the Company (a “10% Shareholder”),
the purchase price of the Option must be at least 110 percent of the Fair Market Value of a
Share on the date of grant and the Option must expire within a period of not more than five (5)
years from the date of grant, and

(ii) termination of employment will occur when the person to whom an Award was granted ceases
to be an employee

 

 

(as determined in accordance with Section 3401(c) of the Code and the regulations
promulgated thereunder) of the Company and its Subsidiaries. Notwithstanding anything in this
Section 7 to the contrary, options designated as Incentive Stock Options will be ineligible for
treatment under the Code as Incentive Stock Options (and will be deemed to be Nonqualified Stock
Options) to the extent that (i) the aggregate Fair Market Value of Shares (determined as of the
time of grant) with respect to which such Options are exercisable for the first time by the
Participant during any calendar year (under all plans of the Company and any Subsidiary) exceeds
$100,000, taking Options into account in the order in which they were granted, or (ii) such Options
otherwise remain exercisable but are not exercised within three (3) months after termination of
employment (or such other period of time provided in Section 422 of the Code).

8. Stock Appreciation Rights

Stock Appreciation Rights may be granted to Participants either in tandem with or as a component of
other Awards granted under the Plan (“tandem SARs”) or not in conjunction with other Awards
(“freestanding SARs”) and may, but need not, relate to a specific Option granted under
Section 7. The provisions of Stock Appreciation Rights do not need to be the same with respect to
each grant or each recipient. Any Stock Appreciation Right granted in tandem with an Option may be
granted at the same time such Option is granted or at any time thereafter before exercise or
expiration of such Option. All Stock Appreciation Rights under the Plan will be granted subject to
the same terms and conditions applicable to Options as set forth in Section 7; provided, however,
that Stock Appreciation Rights granted in tandem with a previously granted Option will have the
terms and conditions of such Option. Subject to the provisions of Section 7, the Committee may
impose such other conditions or restrictions on any Stock Appreciation Right as it deems
appropriate. Stock Appreciation Rights may be settled in Shares, cash or a combination of both.
Other than in connection with a change in the Company’s capitalization (as described in Section
13), the exercise price of a Stock Appreciation Right may not be reduced without stockholder
approval (including canceling previously awarded Stock Appreciation Rights and regranting them with
a lower exercise price). Each Stock Appreciation Right will be evidenced by an Award Agreement.

9. Restricted Stock and Restricted Stock Units

     (a) Restricted Stock and Restricted Stock Unit Awards. Restricted Stock and Restricted Stock
Units may be granted at any time before the termination of the Plan to Participants selected by the
Committee. Restricted Stock is an award or issuance of Shares the grant, issuance, retention,
vesting and/or transferability of which is subject during specified periods of time to such
conditions (including continued employment or performance conditions) and terms as the Committee
deems appropriate. Restricted Stock Units are Awards denominated in units of Shares under which the
issuance of Shares is subject to such conditions (including continued employment or performance
conditions) and terms, as the Committee deems appropriate. Each grant of Restricted Stock and
Restricted Stock Units will be evidenced by an Award Agreement. Unless the Committee determines
otherwise, each Restricted Stock Unit will be equal to one Share. To the extent determined by the
Committee, Restricted Stock and Restricted Stock Units may be satisfied or settled in Shares, cash
or a combination thereof. Restricted Stock and Restricted Stock Units granted pursuant to the Plan
do not need to be identical, but each grant of Restricted Stock and Restricted Stock Units must
contain and be subject to the terms and conditions set forth herein.

     (b) Contents of Award Agreement. Each Award Agreement will contain provisions regarding (i)
the number of Shares or Restricted Stock Units subject to such Award or a formula for determining
such number, (ii) the purchase price of the Shares, if any, and the means of payment, (iii) the
performance criteria, if any, and level of achievement versus these criteria that will determine
the number of Restricted Stock or Restricted Stock Units granted, issued, retainable and/or vested,
(iv) such terms and conditions on the grant, issuance, vesting and/or forfeiture of the Restricted
Stock or Restricted Stock Units as may be determined by the Committee, (v) the term of the
performance period, if any, as to which performance will be measured for determining the number of
such Restricted Stock or Restricted Stock Units, (vi) restrictions on the transferability of the
Restricted Stock or Restricted Stock Units, and (vii) such further terms and conditions in each
case not inconsistent with this Plan as may be determined by the Committee. Shares issued under a
Restricted Stock or Restricted Stock Unit Award may
be issued in the name of the Participant and held by the Participant or held by the Company,
in each case as the Committee may provide.

 

 

     (c) Vesting and Performance Criteria. The grant, issuance, retention, vesting and/or settlement of
shares of Restricted Stock and Restricted Stock Units will occur when and in such installments as
the Committee determines or under criteria the Committee establishes, which may include Qualifying
Performance Criteria. The grant, issuance, retention, vesting and/or settlement of Shares under any
such Award that is based on performance criteria and level of achievement versus such criteria will
be subject to a performance period of not less than one (1) year, and the grant, issuance,
retention, vesting and/or settlement of Shares under any Restricted Stock or Restricted Stock Unit
Award that is based upon continued employment or the passage of time may not vest or be settled in
full over a period of less than three (3) years, except that the Committee may provide for the
satisfaction and/or lapse of all conditions under any such Award in the event of the Participant’s
death, disability, Retirement or in connection with a Change in Control, and the Committee may
provide that any such restriction or limitation will not apply in the case of a Restricted Stock or
Restricted Stock Unit Award that is issued in payment or settlement of compensation that has been
earned by the Participant. Notwithstanding anything in this Plan to the contrary, the performance
criteria for any Restricted Stock or Restricted Stock Unit that is intended to satisfy the
requirements for “performance-based compensation” under Section 162(m) of the Code will be a
measure based on one or more Qualifying Performance Criteria selected by the Committee and
specified when the Restricted Stock or Restricted Stock Unit is granted.

     (d) Discretionary Adjustments and Limits. Subject to the limits imposed under Section 162(m)
of the Code for Awards that are intended to qualify as “performance based compensation,”
notwithstanding the satisfaction of any performance goals, the Committee, to the extent specified
in the Award Agreement, may reduce the number of Shares granted, issued, retainable and/or vested
under an Award of Restricted Stock or Restricted Stock Units on account of either financial
performance or personal performance evaluations on the basis of such further considerations as the
Committee will determine.

     (e) Voting Rights. Unless otherwise determined by the Committee, Participants holding shares
of Restricted Stock granted under this Plan may exercise full voting rights with respect to those
shares during the period of restriction. Participants will have no voting rights with respect to
Shares underlying Restricted Stock Units unless and until such shares are reflected as issued and
outstanding shares on the Company’s stock ledger.

     (f) Dividends and Distributions. Participants in whose name Restricted Stock is granted will
be entitled to receive all dividends and other distributions paid with respect to those shares,
unless determined otherwise by the Committee. The Committee will determine whether any such
dividends or distributions will be automatically reinvested in additional Shares of Restricted
Stock and subject to the same restrictions on transferability as the Restricted Stock with respect
to which they were distributed or whether such dividends or distributions will be paid in cash.
Shares underlying Restricted Stock Units will be entitled to dividends or dividend equivalents only
to the extent provided by the Committee.

10. Performance Award Units

     (a) General. Each Performance Award Unit Award will confer upon the Participant the
opportunity to earn a future payment tied to the level of achievement with respect to the
performance criteria established for a performance period established by the Committee. Unless
otherwise stated in an Award Agreement, the performance period shall be a period of at least one
(1) year.

     (b) Award Agreement. The terms of any Performance Award Unit will be set forth in an Award
Agreement. Each Award Agreement evidencing a Performance Award Unit will contain provisions about
(i) the target and maximum amount payable to the Participant as a Performance Award Unit, (ii) the
performance criteria and level of achievement versus these criteria that will determine the amount
of such payment, (iii) the term of the performance period as to which performance will be measured
for determining the amount of any payment, (iv) the timing of any payment earned by virtue of
performance, (v) restrictions on the alienation or transfer of the Performance Award Unit before
actual payment, (vi) forfeiture provisions and (vii) such further terms and conditions, in each
case consistent with this Plan as the Committee may periodically determine.

     (c) Performance Criteria. The Committee will establish the performance criteria and level of
achievement versus these criteria that will determine the target and maximum amount payable under a
Performance Award Unit, which criteria may be based on financial performance and/or personal
performance evaluations. The Committee may specify the percentage of the target Performance Award
Unit that is intended to satisfy the requirements for “performance-based compensation” under
Section 162(m) of the Code. Notwithstanding anything to the contrary herein, the performance
criteria for any portion of a Performance Award Unit that is intended by
the Committee to satisfy the requirements for “performance-based compensation” under Section
162(m) of the Code will be a measure

 

 

based on the Qualifying Performance Criteria the Committee
selects and specifies when the Performance Award Unit is granted.

     (d) Timing and Form of Payment. The Committee will determine the timing of payment of any
Performance Award Unit. Payment of the amount due under a Performance Award Unit may be made in
cash or in Shares, as determined by the Committee.

     (e) Discretionary Adjustments. Notwithstanding satisfaction of any performance goals, the
Committee may, to the extent specified in the Award Agreement, reduce the amount paid under a
Performance Award Unit on account of either financial performance or personal performance
evaluations on the basis of such further considerations as the Committee will determine.

11. Deferral of Gains

The Committee may, in an Award Agreement or otherwise, provide for the deferred delivery of Shares
upon settlement, vesting or other events with respect to Restricted Stock or Restricted Stock
Units, or in payment or satisfaction of a Performance Award Unit. Notwithstanding anything herein
to the contrary, in no event will any deferral of the delivery of Shares or any other payment with
respect to any Award be allowed if the Committee determines, in its sole discretion, that the
deferral would result in the imposition of the additional tax under Section 409A(1)(B) of the Code.

12. Conditions and Restrictions Upon Securities Subject to Awards

The Committee may provide that the Shares issued upon exercise of an Option or Stock Appreciation
Right or otherwise subject to or issued under an Award will be subject to such further agreements,
restrictions, conditions or limitations as the Committee in its discretion may specify before the
exercise of such Option or Stock Appreciation Right or the grant, vesting or settlement of such
Award, including, without limitation, conditions on vesting or transferability, forfeiture or
repurchase provisions and method of payment for the shares issued upon exercise, vesting or
settlement of such Award (including the actual or constructive surrender of Shares already owned by
the Participant) or payment of taxes arising in connection with an Award. Without limiting the
foregoing, such restrictions may address the timing and manner of any resales by the Participant or
other subsequent transfers by the Participant of any Shares issued under an Award, including,
without limitation, (i) restrictions under an insider trading policy or pursuant to applicable law,
(ii) restrictions designed to delay and/or coordinate the timing and manner of sales by Participant
and holders of other Company equity compensation arrangements, and (iii) restrictions as to the use
of a specified brokerage firm for such resales or other transfers.

13. Adjustment of and Changes in the Stock

     (a) In the event that the number of Shares increases or decreases through a reorganization,
reclassification, combination of shares, stock split, reverse stock split, spin-off, dividend
(other than regular, quarterly cash dividends), or otherwise, then the Committee may appropriately
adjust each Share that has been authorized for issuance under the Plan, whether such Share is then
currently subject to or may become subject to an Award under the Plan, as well as the per share
limits set forth in Section 6 to reflect such increase or decrease, unless the Company provides
otherwise under the terms of such transaction. The Committee may also adjust the terms of any
outstanding Award as to price, number of Shares subject to such Award and other terms to reflect
the foregoing events.

     (b) In the event of any other change in the number or kind of outstanding Shares, or any stock
or other securities into which such Shares have been changed, or for which Shares have been
exchanged, whether by reason of a Change in Control, other merger, consolidation or otherwise, then
the Committee will, in its sole discretion, determine the appropriate adjustment, if any, to be
effected. In addition, in the event of a change described in this paragraph, the Committee may
accelerate the time or times at which any Award may be exercised and may provide for cancellation
of such accelerated Awards that are not exercised within a time prescribed by the Committee in its
sole discretion. Notwithstanding anything to the contrary herein, any adjustment to Options granted
pursuant to
this Plan intended to qualify as Incentive Stock Options must comply with the requirements,
provisions and restrictions of the Code.

 

 

     (c) No right to purchase fractional shares will result from any adjustment in Awards pursuant
to this Section 13. In case of any such adjustment, the shares subject to the Award will be rounded
down to the nearest whole share. The Company will give notice of any adjustment made to each
Participant, and such adjustment (whether or not notice is given) will be effective and binding for
all purposes of the Plan.

14. Qualifying Performance-Based Compensation

     (a) General. The Committee may specify a percentage of an Award that is intended to satisfy
the requirements for “performance-based compensation” under Section 162(m) of the Code, provided
that the performance criteria for any portion of an Award that is intended by the Committee to
satisfy the requirements for “performance-based compensation” under Section 162(m) of the Code will
be a measure based on one or more Qualifying Performance Criteria selected by the Committee and
specified at the time the Award is granted. The Committee will certify the extent to which any
Qualifying Performance Criteria has been satisfied, and the amount payable as a result thereof,
prior to payment, settlement or vesting of any Award that is intended to satisfy the requirements
for “performance-based compensation” under Section 162(m) of the Code. Notwithstanding satisfaction
of any performance goals, the number of Shares issued or the amount paid under an Award intended by
the Committee to satisfy the requirements for “performance-based compensation” under Section 162(m)
of the Code may, to the extent specified in the Award Agreement, be reduced by the Committee on the
basis of such further considerations as the Committee in its sole discretion determines.

     (b) Qualifying Performance Criteria. For purposes of this Plan, the term “Qualifying
Performance Criteria” will mean any of the following performance criteria, either individually,
alternatively or in any combination, applied to either the Company as a whole or to a business unit
or Subsidiary, either individually, alternatively or in any combination, and measured either
quarterly, annually or cumulatively over a period of years, on an absolute basis or relative to a
pre-established target, to previous years’ results or to a designated comparison group, in each
case as the Committee specifies: pretax income, net income, earnings per share, revenues, expenses,
return on assets, return on equity, return on capital employed, return on investment, net profit
margin, operating profit margin, operating cash flow, total shareholder return, capitalization,
liquidity, results of customer surveys and safety or productivity improvement. To the extent
consistent with Section 162(m) of the Code, the Committee may appropriately adjust any performance
evaluation under a Qualifying Performance Criteria to exclude any of the following events that
occurs during a performance period: (i) asset write-downs, (ii) litigation, claims, judgments or
settlements, (iii) the effect of changes in tax law or other such laws or regulations affecting
reported results, (iv) accruals for reorganization and restructuring programs,(v) any
extraordinary, unusual or non-recurring items as described in Accounting Principles Board Opinion
(“APB”) No. 30, (vi) any change in accounting principle as defined in APB No. 20, (vii) any loss
from a discontinued operation as described in Financial Accounting Standards No. 144 and (viii) any
amounts accrued by the Company or its Subsidiaries pursuant to management bonus plans or cash
profit sharing plans and related employer payroll taxes for the fiscal year.

15. Transferability

Unless the Committee specifies otherwise, each Award may not be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated by a Participant other than (i) by will or the
laws of descent and distribution, (ii) pursuant to a domestic relations order or (iii) to any
“family member” of the Participant (as such term is defined in Section 1(a)(5) of the General
Instructions to Form S-8 under the Securities Act), to trusts solely for the benefit of such family
members and to partnerships in which such family members and/or trusts are the only partners;
provided that following any such transfer or assignment the Award will remain subject to
substantially the same terms applicable to the Award while held by the Participant, as modified as
the Committee shall determine appropriate, and the transferee shall execute an agreement agreeing
to be bound by such terms. Notwithstanding the foregoing, Clauses (ii) and (iii) immediately above
shall not be available with respect to Incentive Stock Options. Each Option or Stock Appreciation
Right will be exercisable during the Participant’s lifetime only by the Participant, the
Participant’s guardian or legal representative or an individual or an authorized transferee of the
Option or Stock Appreciation Right.

 

 

16. Suspension or Termination of Awards

Except as otherwise provided by the Committee, if at any time (including after a notice of exercise
has been delivered or an Award has vested) the Chief Executive Officer or any other person
designated by the Committee (each such person, an “Authorized Officer”) reasonably believes
that a Participant may have committed an Act of Misconduct as described in this Section 16, the
Authorized Officer, Committee or Board of Directors may suspend the Participant’s rights to
exercise any Option, to vest in an Award, and/or to receive payment for or receive Shares in
settlement of an Award pending a determination of whether an Act of Misconduct has been committed.

If the Committee or an Authorized Officer determines a Participant has committed an act of
embezzlement, fraud, dishonesty, nonpayment of any obligation owed to the Company or any
Subsidiary, breach of fiduciary duty, violation of Company ethics policy or code of conduct,
deliberate disregard of Company or Subsidiary rules, or if a Participant makes an unauthorized
disclosure of any Company or Subsidiary trade secret or confidential information, solicits any
employee or service provider to leave the employ or cease providing services to the Company or any
Subsidiary, breaches any intellectual property or assignment of inventions covenant, engages in any
conduct constituting unfair competition, breaches any non-competition agreement, induces any
Company or Subsidiary customer to breach a contract with the Company or any Subsidiary or to cease
doing business with the Company or any Subsidiary, or induces any principal for whom the Company or
any Subsidiary acts as agent to terminate such agency relationship (any of the foregoing acts, an
“Act of Misconduct”), then except as otherwise provided by the Committee, (i) neither the
Participant nor his or her estate nor transferee will be entitled to exercise any Option or Stock
Appreciation Right whatsoever, vest in or have the restrictions on an Incentive Award lapse, or
otherwise receive payment or Shares under any Award and (ii) the Participant will forfeit all
outstanding Awards. In making such determination, the Committee or an Authorized Officer shall give
the Participant an opportunity to appear and present evidence on his or her behalf at a hearing
before the Committee or an opportunity to submit written comments, documents, information and
arguments to be considered by the Committee. Any dispute by a Participant or other person as to the
determination of the Committee must be resolved pursuant to Section 23.

17. Compliance with Laws and Regulations

The grant, issuance, vesting, exercise and settlement of Awards under this Plan, and the obligation
of the Company to sell, issue or deliver shares of such Awards, will be subject to all applicable
foreign, federal, state and local laws, rules and regulations, stock exchange rules and
regulations, and to such approvals by any governmental or regulatory agency as may be required. The
Company will not be required to register in a Participant’s name or deliver any shares before the
completion of any registration or qualification of such shares under any foreign, federal, state or
local law or any ruling or regulation of any government body, which the Committee will determine to
be necessary or advisable. To the extent the Company is unable to or the Committee deems it
infeasible to obtain authority from any regulatory body having jurisdiction, which authority is
deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any shares
hereunder, the Company and its Subsidiaries will be relieved of any liability with respect to the
failure to issue or sell such shares absent such requisite authority. No Option will be exercisable
and no shares will be issued and/or transferable under any other Award unless a registration
statement with respect to the shares underlying such Stock Option or other Award is effective and
current or the Company has determined that such registration is unnecessary. In the event that the
Committee determines that the Company is prohibited from issuing shares in respect of an Award
pursuant to the preceding sentence, the Committee may, in its sole discretion, provide for a cash
payment to the holder of the Award in settlement thereof in lieu of the issuance of shares under
the Award.

If an Award is granted to or held by a Participant employed or providing services outside the
United States, the Committee may, in its sole discretion, modify the provisions of the Plan or of
such Award as they pertain to such individual to comply with applicable foreign law or to recognize
differences in local law, currency or tax policy. The Committee may also impose conditions on the
grant, issuance, exercise, vesting, settlement or retention of Awards to comply with such foreign
law and/or to minimize the Company’s obligations with respect to tax equalization for Participants
employed outside their home country.

 

 

18. Withholding

To the extent required by applicable federal, state, local or foreign law, a Participant must
satisfy, in a manner satisfactory to the Company, any withholding tax obligations that arise by
reason of an Option exercise, disposition of shares issued under an Incentive Stock Option, the
vesting of or settlement of Shares or deferred units under an Award, an election pursuant to
Section 83(b) of the Code or otherwise with respect to an Award. The Company and its Subsidiaries
will not be required to issue Shares, make any payment or to recognize the transfer or disposition
of shares until the Participant satisfies such obligations. The Committee may permit these
obligations to be satisfied by having the Company withhold a portion of the Shares that otherwise
would be issued to the Participant upon exercise of the Option or the vesting or settlement of an
Award, or by tendering shares previously acquired.

19. Amendment of the Plan or Awards

The Board may amend, alter or discontinue this Plan and the Committee may amend, or alter any
agreement or other document evidencing an Award made under this Plan but, except as provided
pursuant to the provisions of Section 13, no such amendment will, without the approval of the
stockholders of the Company:

     (a) increase the maximum number of shares for which Awards may be granted under this Plan;

     (b) reduce the price at which Options may be granted below the price provided for in Section
7(b);

     (c) reduce the exercise price of outstanding Options;

     (d) extend the term of this Plan;

     (e) change the class of persons eligible to be Participants;

     (f) otherwise amend the Plan in any manner requiring stockholder approval by law or under the
NASDAQ National Market listing requirements; or

     (g) increase the individual maximum limits in Section 6(c).

No amendment or alteration to the Plan or an Award or Award Agreement will be made which would
impair the rights of the holder of an Award, without such holder’s consent, provided that no such
consent will be required if the Committee determines in its sole discretion and before the date of
any Change in Control that such amendment or alteration either is required or advisable in order
for the Company, the Plan or the Award to satisfy any law or regulation.

20. No Liability of Company

The Company and any Subsidiary or affiliate which is in existence or hereafter comes into existence
will not be liable to a Participant or any other person as to: (i) the non-issuance or sale of
Shares as to which the Company has been unable to obtain from any regulatory body having
jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful issuance
and sale of any shares hereunder; and (ii) any tax consequence expected, but not realized, by any
Participant or other person due to the receipt, exercise or settlement of any Award granted
hereunder.

21. Non-Exclusivity of Plan

Neither the adoption of this Plan by the Board nor the submission of this Plan to the stockholders
of the Company for approval will be construed as creating any limitations on the power of the Board
or the Committee to adopt such other incentive arrangements as either may deem desirable,
including, without limitation, the granting of restricted stock or stock options otherwise than
under this Plan, and such arrangements may be either generally applicable or applicable only in
specific cases.

 

 

22. Governing Law

This Plan and any agreements or other documents hereunder will be interpreted and construed in
accordance with the laws of the State of Delaware and applicable federal law. Any reference in this
Plan or in the agreement or other document evidencing any Awards to a provision of law or to a rule
or regulation will be deemed to include any successor law, rule or regulation of similar effect or
applicability.

23. Arbitration of Disputes

If a Participant or other holder of an Award or person claiming a right under an Award or the Plan
wishes to challenge any action of the Committee, a subcommittee or the Plan Administrator, the
person may do so only by submitting to binding arbitration with respect to such decision. The
review by the arbitrator will be limited to determining whether the Participant or other Award
holder has proven that the Committee’s decision was arbitrary or capricious. This arbitration will
be the sole and exclusive review permitted of the Committee’s decision. Participants, Award holders
and persons claiming rights under an Award or the Plan explicitly waive any right to judicial
review.

Notice of demand for arbitration will be made in writing to the Committee within thirty (30) days
after the applicable decision by the Committee. The arbitrator will be selected by mutual agreement
of the Committee and the Participant. If the Committee and the Participant are unable to agree on
an arbitrator, the arbitrator will be selected by the American Arbitration Association. The
arbitrator, no matter how selected, must be neutral within the meaning of the Commercial Rules of
Dispute Resolution of the American Arbitration Association. The arbitrator will administer and
conduct the arbitration pursuant to the Commercial Rules of Dispute Resolution of the American
Arbitration Association. Each side will bear its own fees and expenses, including its own
attorney’s fees, and each side will bear one half of the arbitrator’s fees and expenses; provided,
however, that the arbitrator will have the discretion to award the prevailing party its fees and
expenses. The arbitrator will have no authority to award exemplary, punitive, special, indirect,
consequential, or other extracontractual damages. The decision of the arbitrator on the issue(s)
presented for arbitration will be final and conclusive and any court of competent jurisdiction may
enforce it.

24. No Right to Employment, Reelection or Continued Service

Nothing in this Plan or an Award Agreement will interfere with or limit in any way the right of the
Company, its Subsidiaries and/or its affiliates to terminate any Participant’s employment, service
on the Board or service for the Company at any time or for any reason not prohibited by law, nor
confer upon any Participant any right to continue his or her employment or service for any
specified period of time. Neither an Award nor any benefits arising under this Plan will constitute
an employment contract with the Company, any Subsidiary and/or its affiliates. This Plan and the
benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Board
without giving rise to any liability on the part of the Company, its Subsidiaries and/or its
affiliates.exv10w3

 

EXHIBIT 10.3

ARKANSAS BEST CORPORATION

RESTRICTED STOCK AWARD AGREEMENT

(Non-Employee Director)

     This Restricted Stock Award Agreement (this “Agreement”) is dated as of this ___day of
___, 200___(the “Grant Date”), and is between Arkansas Best Corporation (the
“Company”) and ___(“Participant”).

     WHEREAS, the Company, by action of the Board and approval of its shareholders established the
Arkansas Best Corporation 2005 Ownership Incentive Plan (the “Plan”);

     WHEREAS, Participant is a member of the Board and is not employed by the Company or a
Subsidiary;

     WHEREAS, the Company desires to encourage Participant to own Common Stock for the purposes
stated in Section 1 of the Plan;

     WHEREAS, Participant and the Company have entered into this Agreement to govern the terms of
the Restricted Stock Award (as defined below) granted to Participant by the Company.

     NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree as follows:

	1.  	Definitions

     Defined terms in the Plan shall have the same meaning in this Agreement, except where the
context otherwise requires.

	2.  	Grant of shares of Restricted Stock

     On the Grant Date, the Company hereby grants to Participant an Award of ___shares of
Restricted Stock (the “Award”) in accordance with Section 9 of the Plan and subject to the
conditions set forth in this Agreement and the Plan (as amended from time to time). The Award
represents the right to receive and retain up to the number of Shares set forth in the preceding
sentence (as adjusted from time to time pursuant to Section 13 of the Plan) subject to the
fulfillment of the vesting conditions set forth in this Agreement. By accepting the Award,
Participant irrevocably agrees on behalf of Participant and Participant’s successors and permitted
assigns to all of the terms and conditions of the Award as set forth in or pursuant to this
Agreement and the Plan (as such Plan may be amended from time to time).

	3.  	Vesting; Payment

     (a) Participant’s rights in and to the Shares subject to the Award shall not be vested as of
the Grant Date and shall be forfeitable unless and until otherwise vested pursuant to the

 

 

terms of this Agreement. Provided that Participant remains a member of the Board continuously
through the fifth anniversary of the Grant Date (the “Vesting Date”), the Award shall
become vested with respect to 100% of the Shares subject to the Award on such Vesting Date. Shares
that have vested and are no longer subject to forfeiture are referred to herein as “Vested
Shares.” shares of Restricted Stock that are not vested and remain subject to forfeiture are
referred to herein as “Unvested Shares.”

     (b) Notwithstanding anything to the contrary in this Paragraph 3, the Award shall be subject
to earlier acceleration of vesting and/or forfeiture and transfer as provided in this Agreement and
the Plan.

	4.  	Shareholder Status of Participant; Voting Rights

     From and after the Grant Date, Participant will be recorded as a shareholder of the Company
with respect to the Shares subject to the Award (whether vested or unvested) and shall have voting
rights with respect to such Shares unless and until any such Shares are forfeited or transferred
back to the Company.

	5.  	Dividends

     From and after the Grant Date and unless and until the Shares are forfeited or otherwise
transferred back to the Company, the Participant will be entitled to receive all dividends and
other distributions paid with respect to the Shares subject to this Award. Dividends payable by
the Company to its public stockholders in cash shall, with respect to any Unvested Shares, be paid
in cash on or about the date such dividends are payable to public stockholders, subject to any
applicable tax withholding requirements.

	6.  	Effect of Termination of Board Service; Change in Control

     (a) General. Except as provided in Paragraphs 6(b), (c) or (d), upon a termination of
Participant’s service as a member of the Board for any reason, the Unvested Shares shall be
forfeited by Participant and cancelled and surrendered to the Company without payment of any
consideration to Participant.

     (b) Death; Disability; Retirement. Upon a termination of Participant’s service as a
member of the Board by reason of Participant’s death, Disability or Retirement (as defined below),
all Unvested Shares shall vest as of the date of such termination of service. For the purposes of
this Agreement, the term “Disability” shall mean a condition under which Participant either
(A) is unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than twelve months, or (B) is, by reason of any medically
determinable physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than twelve months, receiving income
replacement benefits for a period of not less than three months under an accident and health plan
covering employees of the Company. For purposes of this Agreement, the term “Retirement”
shall mean Participant’s retirement from service as a member of the Board on or after age 65 so
long as Participant has, as of the date of such retirement, at least 5 years of service with the
Company.

 

 

     (c) Early Retirement. Upon a termination of Participant’s service as a member of the
Board by reason of Participant’s Early Retirement (as defined below) after the first anniversary of
the Grant Date, a number of Unvested Shares equal to (i) the aggregate number of Shares subject to
the Award multiplied by (ii) a ratio, (A) the numerator of which is equal to the number of full
months between the Grant Date and the date of termination of service and (B) the denominator of
which is 60, shall vest as of the date of such termination of service. A fractional Share shall be
rounded up to the next whole Share. For purposes of this Agreement, the term “Early
Retirement” shall mean Participant’s retirement from service as a member of the Board with at
least 3 years of Board member service with the Company.

     (d) Change in Control. All Unvested Shares shall vest as of the date a Change in
Control occurs.

	7.  	Section 83(b) Election for Restricted Stock Award; Independent Tax Advice

     Under Section 83(a) of the Code, Participant will be taxed on the Shares subject to this Award
on the date such Shares vest and the forfeiture restrictions lapse as set forth in Paragraph 3 of
this Agreement, based on their fair market value on such date, at ordinary income rates subject to
payroll and withholding tax and tax reporting, as applicable. For this purpose, the term
“forfeiture restrictions” means the right of the Company to receive back any Unvested Shares upon a
termination of service as a member of the Board. Under Section 83(b) of the Code, Participant may
elect to be taxed on the Shares on the Grant Date, based upon their fair market value on such date,
at ordinary income rates subject to tax payments and tax reporting as applicable at that time,
rather than when and as the Unvested Shares cease to be subject to the forfeiture restrictions. If
Participant elects to accelerate the date on which he or she is taxed on the Shares under Section
83(b), an election (an “83(b) Election”) to such effect must be filed with the Internal
Revenue Service within 30 days from the Grant Date of the Award and applicable taxes must be
timely paid to the IRS.

     There are significant risks associated with the decision to make an 83(b) Election. If the
Participant makes an 83(b) Election and the Unvested Shares are subsequently forfeited to the
Company, the Participant will not be entitled to recover the taxes paid by claiming a deduction for
the ordinary income previously recognized as a result of the 83(b) Election. If the Participant
makes an 83(b) Election and the value of the Unvested Shares subsequently declines, the 83(b)
Election may cause the Participant to recognize more compensation income than otherwise would have
been the case. On the other hand, if the value of the Unvested Shares increases and the
Participant has not made an 83(b) Election, Participant may recognize more compensation income than
otherwise would have been the case.

     The foregoing is only a summary of the federal income tax laws that apply to the Shares under
this Agreement and does not purport to be complete. The actual tax consequences of receiving or
disposing of the Shares are complicated and depend, in part, on the Participant’s specific
situation and may also depend on the resolution of currently uncertain tax law and other variables
not within the control of the Company. THEREFORE, THE PARTICIPANT SHOULD SEEK INDEPENDENT ADVICE
REGARDING THE APPLICABLE PROVISIONS OF THE FEDERAL TAX LAW AND THE INCOME TAX LAWS OF ANY
MUNICIPALITY, STATE OR FOREIGN COUNTRY TO WHICH THE

 

 

PARTICIPANT IS SUBJECT. By accepting this Agreement, Participant acknowledges and agrees that
he or she has either consulted with a competent tax advisor independent of the Company to obtain
tax advice concerning the Shares in light of the Participant’s specific situation or has had the
opportunity to consult with such a tax advisor and has chosen not to do so.

     If the Participant determines to make an 83(b) Election, it is the Participant’s
responsibility to file such an election with the Internal Revenue Service within the 30 day period
after the Grant Date, to deliver to the Company a signed copy of the 83(b) Election, to
file an additional copy of such election form with the Participant’s federal income tax
return for the calendar year in which the Grant Date occurs, and to timely pay the applicable taxes
due in connection with such election.

	8.  	Book Entry Registration of the Shares; Delivery of Shares

     The Company may at its election either (a) after the Grant Date, issue a certificate
representing the Shares subject to the Award and place a legend on and stop transfer notice
describing the restrictions on and forfeitability of such Shares, in which case the Company may
retain such certificates unless and until the Shares represented by such certificate have vested
and may cancel such certificate if and to the extent that the Shares are forfeited or otherwise
required to be transferred back to the Company, or (b) not issue any certificate representing
Shares subject to this Agreement and instead document Participant’s interest in the Shares by
registering the Shares with the Company’s transfer agent (or another custodian selected by the
Company) in book entry form in Participant’s name with the applicable restrictions noted in the
book entry system, in which case no certificate(s) representing all or a part of the Shares will be
issued unless and until the Shares become Vested Shares. The Company may provide a reasonable
delay in the issuance or delivery of Vested Shares as it determines appropriate to address tax
withholding and other administrative matters.

	9.  	Stop Transfer Notices

     The Company will not be required to (a) transfer on its books any Shares subject to the Award
that have been sold or transferred in violation of the provisions of this Agreement or (b) treat as
the owner of the Shares subject to the Award, or otherwise accord voting, dividend or liquidation
rights to, any transferee to whom such Shares have been transferred in contravention of this
Agreement.

	10.  	Withholding and Disposition of Shares
	 
	  	Participant is liable and responsible for all taxes owed in connection with the Award,
regardless of any action the Company takes with respect to any tax reporting or withholding
obligations that arise in connection with the Award. The Company does not make any
representation or undertaking regarding the tax treatment of the grant or vesting of the
Award or the subsequent sale of Shares issuable pursuant to the Award. The Company does not
commit and is under no obligation to structure the Award to reduce or eliminate
Participant’s tax liability.

          (i)

 

 

	11.  	Excess Parachute Payments

     Notwithstanding anything in this Agreement to the contrary, if any of the payments in respect
of this Award, together with any other payments to which Participant has the right to receive from
the Company or any purchaser, successor, or assign, would constitute an “excess parachute payment”
(as defined in Code Section 280G(b)(3)), the payments pursuant to the Award and/or such other plans
or agreements shall be reduced to the largest amount as will result in no portion of such payments
being subject to the excise tax imposed by Code Section 4999.

	12.  	Plan Controls

     The terms of this Agreement are governed by the terms of the Plan, as it exists on the Grant
Date and as the Plan is amended from time to time. In the event of any conflict between the
provisions of this Agreement and the provisions of the Plan, the terms of the Plan shall control,
except as expressly stated otherwise in this Agreement. The term “Section” generally refers to
provisions within the Plan; provided, however, the term “Paragraph” shall refer to a provision of
this Agreement.

	13.  	Limitation on Rights; No Right to Future Grants; Extraordinary Item

     By entering into this Agreement and accepting the Award, Participant acknowledges that: (a)
Participant’s participation in the Plan is voluntary and (b) the grant of the Award will not be
interpreted to form an employment or Board member relationship with the Company or any Subsidiary.
The Company shall be under no obligation whatsoever to advise Participant of the existence,
maturity or termination of any of Participant’s rights hereunder and Participant shall be
responsible for familiarizing himself or herself with all matters contained herein and in the Plan
which may affect any of Participant’s rights or privileges hereunder.

	14.  	Committee Authority

     Any question concerning the interpretation of this Agreement or the Plan, any adjustments
required to be made under the Plan, and any controversy that may arise under the Plan or this
Agreement shall be determined by the Committee (including any Subcommittee or other person(s) to
whom the Committee has delegated its authority) in its sole and absolute discretion. Such decision
by the Committee shall be final and binding.

	15.  	Transfer Restrictions

     Any sale, transfer, assignment, encumbrance, pledge, hypothecation, conveyance in trust, gift,
transfer by bequest, devise or descent, or other transfer or disposition of any kind, whether
voluntary or by operation of law, directly or indirectly, of Unvested Shares shall be strictly
prohibited and void; provided, however, Participant may assign or transfer the Award to the extent
permitted under the Plan, provided that the Award shall be subject to all the terms and condition
of the Plan, this Agreement and any other terms required by the Committee as a condition to such
transfer.

 

 

	16.  	Suspension or Termination of Award

     Pursuant to Section 16 of the Plan, if at any time prior to Participant’s receipt of Shares
pursuant to the Award an Authorized Officer reasonably believes that Participant may have committed
an Act of Misconduct (as defined below), the Authorized Officer, the Committee or the Board may
suspend Participant’s rights to vest in any shares of Restricted Stock, and/or to receive payment
for or receive Shares in settlement of Vested Shares pending a determination of whether an Act of
Misconduct has been committed. In addition, pursuant to Section 16 of the Plan, if the Committee
or an Authorized Officer determines Participant has committed an act of embezzlement, fraud,
dishonesty, nonpayment of any obligation owed to the Company or any Subsidiary, breach of fiduciary
duty, violation of Company ethics policy or code of conduct, deliberate disregard of Company or
Subsidiary rules, or if Participant makes an unauthorized disclosure of any Company or Subsidiary
trade secret or confidential information, solicits any employee or service provider to leave the
employ or cease providing services to the Company or any Subsidiary, breaches any intellectual
property or assignment of inventions covenant, engages in any conduct constituting unfair
competition, breaches any non-competition agreement, induces any Company or Subsidiary customer to
breach a contract with the Company or any Subsidiary or to cease doing business with the Company or
any Subsidiary, or induces any principal for whom the Company or any Subsidiary acts as agent to
terminate such agency relationship (any of the foregoing acts, an “Act of Misconduct”),
then except as otherwise provided by the Committee, (i) neither Participant nor Participant’s
estate nor transferee will be entitled to vest in or have the restrictions on Unvested Shares
lapse, or otherwise receive payment or Shares under in respect of Vested Shares and (ii)
Participant will forfeit all undelivered (including deferred) Vested and Unvested Shares. In
making such determination, the Committee or an Authorized Officer shall give Participant an
opportunity to appear and present evidence on his or her behalf at a hearing before the Committee
or an opportunity to submit written comments, documents, information and arguments to be considered
by the Committee. Any dispute by Participant or other person as to the determination of the
Committee must be resolved pursuant to Paragraph 17(j).

	17.  	General Provisions

     (a) Notices. Whenever any notice is required or permitted hereunder, such notice must
be in writing and delivered in person or by mail (to the address set forth below if notice is being
delivered to the Company) or electronically. Any notice delivered in person or by mail shall be
deemed to be delivered on the date on which it is personally delivered, or, whether actually
received or not, on the third business day after it is deposited in the United States mail,
certified or registered, postage prepaid, addressed to the person who is to receive it at the
address that such person has theretofore specified by written notice delivered in accordance
herewith. Any notice given by the Company to Participant directed to Participant at Participant’s
address on file with the Company shall be effective to bind Participant and any other person who
shall have acquired rights under this Agreement. The Company or Participant may change, by written
notice to the other, the address previously specified for receiving notices. Notices delivered to
the Company in person or by mail shall be addressed as follows:

	 	 	 	 	 
	

	 	Company:
	 	Arkansas Best Corporation
	

	 	 	 	Attn: General Counsel

 

 

	 	 	 	 	 
	

	 	 	 	P.O. Box 10048
	

	 	 	 	Fort Smith, AR 72917-0048
	

	 	 	 	Telecopier: (479) 785-6124

     (b) No Waiver. No waiver of any provision of this Agreement will be valid unless in
writing and signed by the person against whom such waiver is sought to be enforced, nor will
failure to enforce any right hereunder constitute a continuing waiver of the same or a waiver of
any other right hereunder.

     (c) Undertaking. Participant hereby agrees to take whatever additional action and
execute whatever additional documents the Company may deem necessary or advisable in order to carry
out or effect one or more of the obligations or restrictions imposed on either Participant or the
Award pursuant to the express provisions of this Agreement.

     (d) Entire Contract. This Agreement and the Plan constitute the entire contract
between the parties hereto with regard to the subject matter hereof. This Agreement is made
pursuant to the provisions of the Plan and will in all respects be construed in conformity with the
express terms and provisions of the Plan.

     (e) Successors and Assigns. The provisions of this Agreement will inure to the
benefit of, and be binding on, the Company and its successors and assigns and Participant and
Participant’s legal representatives, heirs, legatees, distributees, assigns and transferees by
operation of law, whether or not any such person will have become a party to this Agreement and
agreed in writing to join herein and be bound by the terms and conditions hereof.

     (f) Securities Law Compliance. The Company may impose such restrictions, conditions
or limitations as it determines appropriate as to the timing and manner of any resales by
Participant or other subsequent transfers by Participant of any Shares issued as a result of or
under this Award, including without limitation (i) restrictions under an insider trading policy,
(ii) restrictions that may be necessary in the absence of an effective registration statement under
the Securities Act of 1933, as amended, covering the Award and/or the Shares underlying the Award
and (iii) restrictions as to the use of a specified brokerage firm or other agent for such resales
or other transfers. Any sale of the Shares must also comply with other applicable laws and
regulations governing the sale of such shares.

     (g) Information Confidential. As partial consideration for the granting of the Award,
Participant agrees that he or she will keep confidential all information and knowledge that
Participant has relating to the manner and amount of his or her participation in the Plan;
provided, however, that such information may be disclosed as required by law and may be given in
confidence to Participant’s spouse, tax and financial advisors, or to a financial institution to
the extent that such information is necessary to secure a loan.

     (h) Electronic Delivery. The Company may, in its sole discretion, decide to deliver
any documents related to any awards granted under the Plan by electronic means or to request
Participant’s consent to participate in the Plan by electronic means. Participant hereby consents
to receive such documents by electronic delivery and, if requested, to agree to participate in the
Plan through an on-line or electronic system established and maintained by the Company or

 

 

another third party designated by the Company, and such consent shall remain in effect
throughout Participant’s term of service with the Company and thereafter until withdrawn in writing
by Participant.

     (i) Governing Law. Except as may otherwise be provided in the Plan, the provisions of
this Agreement shall be governed by the laws of the State of Delaware, without giving effect to
principles of conflicts of law.

     (j) Arbitration of Disputes. Pursuant to Section 23 of the Plan, Participant hereby
agrees as follows:

          (i) If Participant or Participant’s transferee wishes to challenge any action of the
Committee, a Subcommittee or the Plan Administrator, the person may do so only by submitting to
binding arbitration with respect to such decision. The review by the arbitrator will be limited to
determining whether Participant or Participant’s transferee has proven that the Committee’s
decision was arbitrary or capricious. This arbitration will be the sole and exclusive review
permitted of the Committee’s decision. Participant explicitly waives any right to judicial review.

          (ii) Notice of demand for arbitration will be made in writing to the Committee within thirty
(30) days after written notice to the Participant of the applicable decision by the Committee. The
arbitrator will be selected by mutual agreement of the Committee and Participant. If the Committee
and Participant are unable to agree on an arbitrator, the arbitrator will be selected by the
American Arbitration Association. The arbitrator, no matter how selected, must be neutral within
the meaning of the Commercial Rules of Dispute Resolution of the American Arbitration Association.
The arbitrator will administer and conduct the arbitration pursuant to the Commercial Rules of
Dispute Resolution of the American Arbitration Association. Each side will bear its own fees and
expenses, including its own attorney’s fees, and each side will bear one half of the arbitrator’s
fees and expenses; provided, however, that the arbitrator will have the discretion to award the
prevailing party its fees and expenses. The arbitrator will have no authority to award exemplary,
punitive, special, indirect, consequential, or other extracontractual damages. The decision of the
arbitrator on the issue(s) presented for arbitration will be final and conclusive and any court of
competent jurisdiction may enforce it.

[signature page follows]

 

 

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

	 	 	 	 	 
	 	 	ARKANSAS BEST CORPORATION
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 	 	PARTICIPANT
	 
	 	 	 	 
	 	 	 
	 	 	[Participant]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]