Document:

EX-10.1 EMPLOYMENT AGREEMENT WITH JOHN HORAN

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

          THIS EMPLOYMENT AGREEMENT is entered into as of April 17, 2006 between Ablest Inc., a Delaware
corporation (the “Company”), and John Horan (“Executive”).

W I T N E S S E T H :

          WHEREAS, the Company and Executive desire to enter into this Agreement to insure the Company
of the services of Executive, to provide for compensation and other benefits to be paid and
provided by the Company to Executive in connection therewith, and to set forth the rights and
duties of the parties in connection therewith;

          NOW, THEREFORE, in consideration of the mutual promises herein contained, the parties hereby
agree as follows:

     1. Employment.

          (a) Title. The Company hereby employs Executive as Vice President and Chief Financial
Officer, and Executive hereby accepts such employment, on the terms and conditions set forth
herein.

          (b) Duties. During the term of this Agreement, Executive shall be and have the title,
duties and authority of Vice President and Chief Financial Officer of the Company and shall devote
his entire business time and all reasonable efforts to his employment and shall perform diligently
such duties as are customarily performed by the Vice President and Chief Financial Officer of
companies the size and structure of the Company, together with such other duties as may be
reasonably required from time to time by the Board of Directors of the Company.

          (c) Outside Interests. Executive shall not, without the prior written consent of the
Company, directly or indirectly, during the term of this Agreement, other than in the performance
of duties naturally inherent to the business of the Company and in furtherance thereof, render
services of a business, professional or commercial nature to any other person or firm, whether for
compensation or otherwise; provided, however, that Executive may attend to outside investments, and
serve as a director,

 

 

trustee or officer of, or otherwise participate in, educational, welfare, social, religious
and civic organizations so long as such activities do not materially interfere with his full-time
employment hereunder.

     2. Term. Subject to the provisions for termination hereinafter provided, the term of
this Agreement shall begin on May 15, 2006 and shall end at 11:59 p.m., local time, on the second
anniversary of the date hereof (the “Term”). In the event of a Change in Control, the Term shall
end as of the second anniversary of the date of the Change in Control.

     3. Compensation.

          (a) Salary. For all services he may render to the Company during the term of this
Agreement, the Company shall pay to Executive the following salary in those installments
customarily used in payment of salaries to the Company’s senior executives (but in no event less
frequently than monthly):

               (i) for calendar year 2006, an annual salary of one hundred sixty thousand Dollars ($160,000)
prorated to reflect the start date of April XX, 2006;

               (ii) for the calendar year beginning on January 1, 2007, and for each calendar year thereafter
during the Term of this Agreement, a salary determined by the Compensation Committee, which in no
event shall be less than the annual salary that was payable by the Company to Executive under this
Paragraph 3(a) for the immediately preceding calendar year.

          (b) Bonus. Executive shall be entitled to participate in any bonus program
implemented by the Compensation Committee of the Board of Directors for the Company’s senior
executives generally, with pertinent terms and goals to be established annually or otherwise by the
Compensation Committee in its sole discretion. The target incentive award for 2006 shall be 30% of
the annual base salary and paid out on a prorated basis. The target incentive may rise based on
achieving the company performance measures approved by the Compensation Committee, but in no event
shall the incentive award for 2006 be less than 30% of the Executive’s annual base salary paid on a
prorated basis.

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          (c) Benefits. Executive shall be entitled, subject to the terms and conditions of the
appropriate plans, to benefits provided by the Company to senior executives generally from time to
time during the term of this Agreement.

          (d) Business Expenses. Upon delivery of proper documentation therefore Executive
shall be reimbursed for all travel, hotel and business expenses when incurred on Company business
during the term of the Agreement.

          (e) Perquisites. Executive shall be entitled to such perquisites, including use of an
automobile, as are provided by the Company to senior executives generally from time to time during
the term hereof.

     4. Payment in the Event of Death or Disability.

          (a) In the event of Executive’s death or Disability during the term of this Agreement, for a
period equal to the lesser of (i) twelve (12) months following the date of such death or Disability
or (ii) the balance of the term remaining hereunder at such date (but in no event less than six (6)
months), the Company shall continue to pay to Executive (or his estate) Executive’s then effective
per annum rate of salary, as determined under Paragraph 3(a), and provide to Executive (or to his
family members covered under his family medical coverage) the same family medical coverage as
provided to Executive on the date of such death or Disability.

          (b) Except as otherwise provided in Paragraph 4(a), in the event of Executive’s death or
Disability Executive’s employment hereunder shall terminate and Executive shall be entitled to no
further compensation or other payments or benefits under this Agreement, except as to any unpaid
salary, bonus, or benefits accrued and earned by him up to and including the date of such death or
Disability.

          (c) For purposes of this Agreement, Executive’s Disability shall be deemed to have occurred
after one hundred eighty (180) consecutive days during which Executive, by reason of his

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physical or mental disability or illness, shall have been unable to discharge his duties
hereunder. The date of Disability shall be such one hundred eightieth (180th) day. If
the Company or Executive, after receipt of notice of Executive’s Disability from the other, dispute
that Executive’s Disability shall have occurred, Executive shall promptly submit to a physical
examination by a qualified physician in the Tampa or Clearwater, Florida, metropolitan area
selected by the Company and, unless such physician shall issue his written statement to the effect
that in his or her opinion, based on his or her diagnosis, Executive is capable of resuming his
employment and devoting his full time and energy to discharging his duties within thirty (30) days
after the date of such statement, such Disability shall be deemed to have occurred.

          (d) The payments to be made by the Company to Executive hereunder shall be offset and reduced
by the amount of any insurance proceeds (on a tax-effected basis) paid to Executive (or his estate)
from insurance policies obtained by the Company other than insurance policies provided under
Company-wide employee benefit and welfare plans.

     5. Termination

          (a) The employment of Executive under this Agreement:

               (i) shall be terminated automatically upon the death or Disability of Executive;

               (ii) may be terminated for Cause at any time by the Company, with any such termination not
being in limitation of any other right or remedy the Company may have under this Agreement or
otherwise;

               (iii) may be terminated at any time by the Company without Cause with 30 days’ advance notice
to Executive;

               (iv) may be terminated at any time by Executive with thirty (30) days’ advance notice to the
Company;

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               (v) may be terminated at any time by Executive if the Company materially breaches this
Agreement and fails to cure such breach within thirty (30) days of written notice of such breach
from Executive, provided that Executive has given notice of such breach within ninety (90) days
after he has knowledge thereof and the Company did not have Cause to terminate Executive at the
time such breach occurred; or

               (vi) shall be terminated automatically at 11:59 p.m., local time, on the second anniversary of
the date hereof, or in the event of a Change in Control prior to such date, at 11:59 p.m. local
time on the second anniversary of the date of the Change in Control, if later.

          (b) Upon any termination hereunder, Executive shall be deemed automatically to have resigned
from all offices and any directorship held by him in the Company, unless the Company informs
Executive otherwise.

          (c) Executive’s employment with the Company for all purposes shall be deemed to have
terminated as of the effective date of such termination hereunder (the “Date of Termination”),
irrespective of whether the Company has a continuing obligation under this Agreement to make
payments or provide benefits to Executive after such date. In addition, the Executive’s
termination of employment must meet the requirements for a “separation from service” within the
meaning of Code Section 409A in order for the termination payments described in Section 6 and
Section 7 to be paid.

     6. Certain Termination Payments.

          (a) If Executive’s employment with the Company is terminated by the Company without Cause
other than within two years following a Change in Control, or is terminated by Executive pursuant
to Paragraph 5(a)(v), the Company shall (i) continue to pay to Executive the per annum rate of
salary under Paragraph 3(a) and provide him and his family with the benefits described in Paragraph
3(c) then in effect (unless the terms of the applicable plans expressly prohibit the continuation
of such benefits after such termination and cannot be amended, with applicability of such amendment
limited to Executive, to provide for such continuation, in which case the Company shall procure and
pay for

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substantially similar substitute benefits except for any pension or 401(k) Plan benefit, or
unless continued coverage would cause an excise tax to be due under Code Section 409A, in which
event the period of continued coverage shall be reduced to such period as would not result in an
excise tax) for a period equal to the lesser of (A) twelve (12) months and (B) the remainder of the
term of this Agreement, and (ii) pay Executive on or before the thirtieth day after the Date of
Termination an amount equal to the target bonus opportunity for the year in which such termination
occurs. Notwithstanding the foregoing, if Executive is a specified employee within the meaning of
Code Section 409A, the continuing salary payments described in clause (i) and the bonus payment
described in clause (ii) shall not be paid until the first day of the seventh month following the
month in which the Executive’s termination from employment occurs. In such event, the salary
payments that would have been made but for the delay shall be accumulated and paid in a lump sum on
the first date that payment may be made.

          (b) If Executive’s employment is terminated by the Company with Cause or by Executive pursuant
to Paragraph 5(a)(iv), Executive shall be entitled to no further compensation or other payments or
benefits under this Agreement, except as to that portion of any unpaid salary and benefits accrued
and earned by him under Paragraphs 3(a) and 3(c) hereof up to and including the Date of
Termination.

     7. Change in Control Termination Payments.

          (a) Executive will be entitled to the compensation set forth in Paragraph 7(b) hereof (the
“CIC Compensation”) if his employment is terminated within two years after a Change in Control by
the Company without Cause (the “CIC Trigger”). Notwithstanding the foregoing, Executive will not
be entitled to CIC Compensation in the event of a termination of his employment following a Change
in Control on account of his Death, Disability, or termination by him pursuant to Paragraph
5(a)(iv).

          (b) In the event of a CIC Trigger, Executive shall be entitled to the CIC Compensation
provided below:

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               (i) In lieu of any further salary, bonus or other payments to Executive for periods subsequent
to the Date of Termination, the Company shall pay to Executive not later than the tenth day
following the Date of Termination a cash amount equal to two times Executive’s annual base salary
in effect on the Date of Termination. Notwithstanding the foregoing, if Executive is a specified
employee within the meaning of Code Section 409A, the payment described herein shall not be paid
until the first day of the seventh month following the month in which the Executive’s termination
from employment occurs.

               (ii) Until the earlier of Executive’s death or the end of the twelve (12) month period
following the Date of Termination, the Company shall arrange to provide Executive life, health,
disability and accident insurance benefits and the package of “Executive benefits” substantially
similar to those which Executive was receiving immediately prior to the Date of Termination, or
immediately prior to a Change in Control, if greater, provided that Executive shall be obliged to
continue to pay that proportion of premiums paid by him immediately prior to the Change in Control.

               (iii) The Company shall vest and accelerate the exercise date of all stock options, if any,
granted to Executive (the “Options”) that are unvested or not exercisable on the Date of
Termination, to the end that the Options shall be immediately exercisable for the duration of their
respective original terms.

          (c) If the CIC Compensation hereunder, either alone or together with other payments to
Executive from the Company, would constitute an “excess parachute payment” (as defined in Section
280G of the Internal Revenue Code of 1986, as amended from time to time (the “Code”)), such CIC
Compensation shall be reduced to the largest amount that will result in no portion of the payments
hereunder being subject to the excise tax imposed by Section 4999 of the Code or being disallowed
as deductions to the Company under Section 280G of the Code.

     8. Definitions.

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          (a) “Beneficial Owner” shall have the meaning provided in Rule 13d-3 promulgated under the
Exchange Act.

          (b) “Cause” means:

               (i) Executive’s conviction of, plea of “no contest” to, or entry into a pretrial intervention
program associated with, a felony or a first degree misdemeanor;

               (ii) Executive’s engaging in an act or series of acts of misconduct or negligent behavior that
result in demonstrable injury to the Company, including without limitation, injury to the Company’s
business, financial condition or reputation. or

               (iii) Executive’s material breach of any provision of this Agreement, which breach has not
been cured in all material respects within twenty (20) days after the Company gives notice thereof
to Executive; provided, however, that the cure provision of this clause (iii) shall
not apply if Executive has previously been provided with notice of a material breach pursuant to
this provision arising out of substantially similar conduct and cured such breach, and thereafter
is committing another material breach of any provision of this Agreement.

          (c) “Change in Control” occurs when:

               (i) any “Person”, other than the C. H. Heist Intervivos Trust, the lineal descendants of
Charles H. and Clydis D. Heist, and any trusts for the benefit of their lineal descendants
(collectively, the “Heist Family”), and other than any trustee or fiduciary on behalf of any
Company benefit plan, becomes the “Beneficial Owner” of securities of the Company having at least
30% of the voting power of the Company’s then outstanding securities (unless the event causing the
30% threshold to be crossed is an acquisition of securities directly from the Company) but only if
at the time of such person’s becoming the beneficial owner of the requisite voting power, the Heist
Family (or any trust or Person included therein) no longer holds a majority of the outstanding
shares; or

               (ii) the stockholders of the Company approve any merger or other business combination of the
Company, or any going private transaction subject to Rule 13e-3 of the rules and

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regulations promulgated under the Securities Exchange Act of 1934, or any sale of all or
substantially all of the Company’s assets in one or a series of related transactions, or any
combination of the foregoing transactions (the “Transactions”), other than a Transaction in
which the Heist Family or any trust or Person included within the Heist Family is the Beneficial
Owner of 40% or more of the voting securities of the surviving company (or its parent) (and, in a
sale of assets, of the purchaser of the assets) immediately following the Transaction;; or

               (iii) within any 24 month period, the persons who were directors immediately before the
beginning of such period (the “Disinterested Directors”) cease (for any reason other than
death) to constitute at least a majority of the Board or the board of directors of a successor to
the Company, with, for this purpose, any director who was not a director at the beginning of such
period being deemed to be a Disinterested Director if such director was elected to the Board by, or
on the recommendation of or with the approval of, at least two-thirds of the directors who then
qualified as Disinterested Directors, so long as such director was not nominated by a person who
has entered into an agreement to effect, or threatened to effect, a Change of Control.

          (d) “Person” shall have the meaning provided in Section 3(a)(9) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”) and as used in Sections 13(d) and 14(d) thereof, and shall
include a “group” (as defined in Section 13(d) of the Exchange Act).

	 	9.	 	Certain Covenants 

          (a) Noncompete and Nonsolicitation. Executive acknowledges the Company’s reliance on
and expectation of Executive’s continued commitment to performance of his duties and
responsibilities during the term of this Agreement. In light of such reliance and expectation,
during the term hereof and for two years after termination of Executive’s employment and this
Agreement under Paragraph 5 hereof, other than termination by the Company without Cause or
termination by Executive pursuant to Paragraph 5(a)(v), Executive shall not, directly or
indirectly, do or suffer any of the following:

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               (i) Own, manage, control or participate in the ownership, management, or control of, or be
employed or engaged by or otherwise affiliated or associated as a consultant, independent
contractor or otherwise with, any corporation, partnership, proprietorship, firm, association or
other business entity, or otherwise engage in any business, which is in competition with the
business of the Company as and where conducted by it at the time of such termination; provided,
however, that the ownership of not more than five percent (5%) of any class of publicly traded
securities of any entity shall not be deemed a violation of this covenant;

               (ii) Solicit the employment of, assist in the soliciting the employment of, or otherwise
solicit the association in business with any person or entity of, any employee, consultant or agent
of the Company; or

               (iii) Induce any person who is a customer of the Company to terminate said relationship.

          (b) Nondisclosure; Return of Materials. During the term of his employment by the
Company and following termination of such employment, Executive will not disclose (except as
required by his duties to the Company), any concept, design, process, technology, trade secret,
customer list, plan, embodiment or invention, any other intellectual property (“Intellectual
Property”) or any other confidential information, whether patentable or not, of Company of
which Executive becomes informed or aware during his employment, whether or not developed by
Executive. In the event of the termination of his employment with the Company or the expiration of
this Agreement, Executive will return to the Company all documents, data and other materials of
whatever nature, including, without limitation, drawings, specifications, research, reports,
embodiments, software and manuals that pertain to his employment with the Company or to any
Intellectual Property and shall not retain or cause or allow any third party to retain photocopies
or other reproductions of the foregoing.

          (c) Executive expressly agrees and understands that the remedy at law for any breach by him of
this Paragraph 9 may be inadequate and that the damages flowing from such breach are not

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easily measured in monetary terms. Accordingly, it is acknowledged that, upon adequate proof
of Executive’s violation of any provision of this Paragraph 9, the Company shall be entitled to
immediate injunctive relief and may obtain a temporary order restraining any threatened or further
breach and may withhold any amounts owed to Executive pursuant to this Agreement. Nothing in this
Paragraph 9 shall be deemed to limit the Company’s remedies at law or in equity for any breach by
Executive of any of the provisions of this Paragraph 9 that may be pursued by the Company.

          (d) If Executive shall violate any legally enforceable provision of this Paragraph 9 as to
which there is a specific time period during which he is prohibited from taking certain actions or
from engaging in certain activities, as set forth in such provision, then, in such event, such
violation shall toll the running of such time period from the date of such violation until such
violation shall cease.

          (e) Executive has carefully considered the nature and extent of the restrictions upon him and
the rights and remedies conferred upon the Company under this Paragraph 9, and hereby acknowledges
and agrees that the same are reasonable in time and territory, are designed to eliminate
competition that otherwise would be unfair to the Company, do not stifle the inherent skill and
experience of Executive, would not operate as a bar to Executive’s sole means of support, are fully
required to protect the legitimate interests of the Company and do not confer a benefit upon the
Company disproportionate to the detriment to Executive.

	 	10.	 	Withholding Taxes. All payments to Executive hereunder shall be
subject to withholding on account of federal, state and local taxes as required by
law.
	 
	 	11.	 	No Conflicting Agreements. Executive represents and warrants that he
is not a party to any agreement, contract or understanding, whether an employment
contract or otherwise, that would restrict or prohibit him from undertaking or
performing employment in accordance with the terms and conditions of this Agreement.
	 
	 	12.	 	Severable Provisions. The provisions of this Agreement are severable
and if any one or more of its provisions is determined to be illegal or otherwise
unenforceable, in whole or in

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	 	 	 	part, the remaining provisions and any partially unenforceable provision to the extent
enforceable in any jurisdiction nevertheless shall be binding and enforceable.
	 
	 	13.	 	Binding Agreement. The rights and obligations of the Company under
this Agreement shall inure to the benefit of, and shall be binding on, the Company and
its successors and assigns, and the rights and obligations (other than obligations to
perform services) of Executive under this Agreement shall inure to the benefit of, and
shall be binding upon, Executive and his heirs, personal and legal representatives,
executors, successors and administrators. The Company may assign this Agreement to a
purchaser (or an affiliate of a purchaser) of all or substantially all of the assets
of the Company; provided, however, that this provision shall not have
any effect for purposes of determining whether a Change of Control has occurred
hereunder. As used in this Agreement, the “Company” shall mean the Company as
hereinbefore defined and any successor or assign to its assets as aforesaid that
becomes bound by all the terms and provisions of this Agreement. If the Executive
should die while any amounts are still payable to him, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the Executive’s devisee, legatee, or other designee of, if there be no
such designee, to the Executive’s estate.
	 
	 	14.	 	Notices. Notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given when sent by certified mail,
postage prepaid, addressed to the intended recipient at the address set forth at the
end of this Agreement, or at such other address as such intended recipient hereafter
may have designated most recently to the other party hereto with specific reference to
this Paragraph 14.
	 
	 	15.	 	Consent to Jurisdiction. Executive and the Company each irrevocably:
(i) submits to the exclusive jurisdiction of the Florida courts and the United States
district court(s) in Florida for the purpose of any proceedings arising out of this
Agreement or any transaction

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	 	 	 	contemplated by this Agreement; (ii) agrees not to commence such proceeding except in
these courts; (iii) agrees that service of any process, summons, notice or document by
U.S. registered mail to a party’s address as provided herein shall be effective service
of process for any such proceeding; and (iv) waives any objection to the laying of
venue of any such proceeding in these courts.
	 
	 	16.	 	Waiver of Jury Trial. Each party waives, to the fullest extent
permitted by law, any right he or it may have to a trial by jury in respect of any
suit, action or proceeding arising out of this Agreement or any transaction
contemplated by this Agreement. Each party certifies that no representative, agent or
attorney of any other party has represented, expressly or otherwise, that such other
party would not, in the event of litigation, seek to enforce this waiver; and
acknowledges that he or it and the other party have been induced to enter into this
Agreement by, among other things, the mutual waivers and certifications in this
Paragraph 16.
	 
	 	17.	 	Waiver. The failure of either party to enforce any provision of this
Agreement shall not in any way be construed as a waiver of any such provision as to
any future violation thereof, or prevent that party thereafter from enforcing each and
every other provision of this Agreement. The rights granted the parties herein are
cumulative and the waiver of any single remedy shall not constitute a waiver of such
party’s right to assert all other legal remedies available to it under the
circumstances.
	 
	 	18.	 	Governing Law. This Agreement shall be governed by and construed
according to the internal laws of the State of Florida, excluding any choice of law
rules that may direct the application of the laws of another jurisdiction.
	 
	 	19.	 	Captions and Paragraph Headings. Captions and paragraph headings
used herein are for convenience and are not a part of this Agreement and shall not be
used in construing it.

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	 	20.	 	Legal Fees. If any legal action is required to enforce Executive’s
rights under this Agreement, Executive shall be entitled to recover from the Company
any expenses for attorneys’ fees and disbursements reasonably incurred by him if he is
the prevailing party.
	 
	 	21.	 	No Obligation To Mitigate. Executive shall not be required to
mitigate the amount of any payment provided for under this Agreement upon termination
of his employment by the Company without Cause by seeking other employment or
otherwise after such termination, nor shall the amount of any such payment provided
for under this Agreement be reduced by any compensation earned by Executive after
such termination as the result of his employment by another employer.
	 
	 	22.	 	Sale of Assets. For the avoidance of doubt, if the Company sells
all or substantially all of its assets and the purchaser or an affiliate of the
purchaser assumes this Agreement or offers Executive employment on substantially the
same terms as contained herein, Executive’s not accepting such offer shall constitute
termination of employment hereunder by Executive pursuant to Section 5(a)(iv) and
shall not entitle him to any payments under Paragraphs 6(a) or 7; provided,
however, that this provision shall not have any effect for purposes of
determining whether a Change of Control has occurred hereunder.
	 
	 	23.	 	Time For Bringing an Action. Any legal action or proceeding with
respect to this Agreement must be brought within one year (365 days) after the day the
complaining party first knew or should have known, with the exercise of reasonable
diligence, of the events giving rise to the complaint.

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     IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first set
forth above.

	 	 	 	 	 	 	 
	 	 	EXECUTIVE:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name: John Horan	 	 
	 	 	Address:	 	 
	 
	 	 	 	 	 	 
	 	 	ABLEST INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:
	 	Kurt R. Moore, President & CEO	 	 

Page 15EX-10.2 2006 NON-EMPLOYEE DIRECTORS' EQUITY RIGHTS

 

EXHIBIT 10.2

ABLEST INC.

NON-EMPLOYEE DIRECTORS’ EQUITY RIGHTS PLAN

	1.	 	Title and Purpose.

          This plan shall be known as the Ablest Inc. Non-Employee Directors’ Equity Rights Plan
(“Plan”). The purpose of the Plan is to strengthen the alignment of interests between the
non-employee directors and the shareholders of Ablest Inc. (the “Company”) through the increased
ownership by the Company’s non-employee directors of the Company’s common stock.

          The Plan shall be effective from and after the Effective Date. The Plan shall replace and
supersede the Ablest Inc. Non-Employee Directors’ Stock Option Plan, effective May 16, 2000 (“Prior
Plan”). No awards shall be granted under the Prior Plan from and after the Effective Date.

	2.	 	Definitions.

          The following terms when initially capitalized shall have the following respective meanings:

          “Code” means the Internal Revenue Code of 1986, as amended.

          “Effective Date” means the date as of which the Plan is approved by the shareholders
of the Company.

          “Equity Award” means with respect to a Non-Employee Director the grant of an Initial
Award or a Re-Election Award to such director.

          “Initial Award” means the grant to a Non-Employee Director upon such director’s
initial election to the Board of Directors on or after the Effective Date of a Stock Grant of 1,000
shares of the Company’s common stock.

          “Non-Employee Director” means an individual who has been duly elected and is actively
serving as a director of the Company and who is not an officer or employee of the Company at the
time of his or her election as a director. A Non-Employee Director shall cease to be a
Non-Employee Director upon the election of such individual as an officer of the Company or upon
such individual becoming an employee of the Company.

          “Plan” means the Ablest Inc. Independent Directors’ Equity Rights Plan as set forth
herein, as it may be amended from time to time.

          “Prior Plan” means the Ablest Inc. Non-Employee Directors’ Stock Option Plan as in
effective from May 16, 2000 through the date immediately preceding the Effective Date.

          “Re-Election Award” means the grant to a Non-Employee Director upon such director’s
re-election to the Board of Directors after the Effective Date and following the completion of such
Director’s current term as a director of a Stock Grant of 250 shares of the Company’s common stock.

          “Stock Grant” means the grant to a Non-Employee Director of a specified number of
shares of the Company’s common stock subject to the restrictions, and other terms and conditions of
this Plan and otherwise in the form of Exhibit A hereto.

          “Tandem Award” means a conditional cash grant award made to a Non-Employee Director in
connection with the receipt of a Stock Grant and intended to reimburse such Non-Employee Director
for the

 

 

additional Taxes incurred by such Non-Employee Director as a result of such Non-Employee
Director making a timely election under Section 83(b) of the Code to be taxed immediately on the
receipt of such Stock Grant.

          “Taxes” means federal, state, and local income and self employment taxes.

	3.	 	Administration and Construction of Plan.

          The Plan shall be administered by the Board of Directors of the Company. The validity,
construction and effect of the Plan, any agreement between the Plan and any Non-Employee Director
with respect to any Equity Award, and any rules and regulations relating to the Plan shall be
determined in accordance with applicable law by the Board of Directors.

	4.	 	Number of Shares Available.

          The aggregate number of shares of common stock of the Company that may be made subject to
Equity Awards awarded under the Plan shall be 100,000 less the number of shares covered by awards
made under the Prior Plan. In the event of a forfeiture of any Equity Award made under this Plan
or any award made under the Prior Plan, the shares subject to such award shall be available for
award pursuant to another Equity Award under this Plan.

	5.	 	Limitation On Amendments To The Plan.

          The Plan may not be amended more than once every six months, other than to comport with
changes in the Internal Revenue Code of 1986, as amended (the “Code”), the Employee Retirement
Income Security Act of 1974, as amended, or the rules or regulations promulgated under either of
the foregoing acts.

	6.	 	Participation.

          Non-Employee Directors who are participants in the Prior Plan shall continue to participate in
the Plan until the Effective Date. The approval of the Plan shall have no impact on awards made to
Non-Employee Directors under the Prior Plan and such awards shall continue to be subject to the
terms and conditions of the Prior Plan and the applicable grant agreement.

          All Non-Employee Directors shall be eligible to participate in the Plan and shall become
participants in the Plan as of the later of (i) the Effective Date or (ii) the date as of which
such Non-Employee Director first commences service as a Non-Employee Director of the Company. A
Non-Employee Director’s participation in the Plan shall cease upon the termination of a
Non-Employee Director’s service as a Non-Employee Director.

	7.	 	Equity Awards.

          Each person who is first elected by the directors or the shareholders to the Board of
Directors as a Non-Employee Director on or after the Effective Date shall receive an Initial Award
on the date of his or her election. Each Non-Employee Director shall receive a Re-Election Award
each time he or she is re-elected to the Board of Directors on or after the Effective Date.

          Each Equity Award made in the form of a Stock Grant with respect to the Company’s common stock
shall be made pursuant to a Grant Agreement in the form of Exhibit A hereto and shall be
subject to the following terms and conditions.

          A. Section 83(b) Election. Should a Non-Employee Director make an election under
Section 83(b) of the Internal Revenue Code with respect to a Stock Grant to be taxed for federal
income tax purposes upon receipt of such grant, such Non-Employee Director shall so advise the
Company in writing.

 

 

          B. Tandem Award. At the time an Equity Award is made in the form of a Stock Grant,
the Board of Directors shall separately determine whether or not the Non-Employee Director shall
also receive a Tandem Award and, if so, the amount of such Tandem Award. The right of a
Non-Employee Director to receive such Tandem Award shall be conditioned upon such Non-Employee
Director making a timely election under Section 83(b) of the Code to be taxed for federal income
tax purposes upon receipt of such grant and so advising the Company in writing. The amount of any
such Tandem Award shall not exceed a reasonable estimate of the Taxes which such Non-Employee
Director will incur as a result of his or her making such Section 83(b) election and as a result of
receiving such Tandem Award, assuming such Non-Employee Director is subject to tax at the highest
marginal federal, state and local income tax rates applicable based on his residence at the time of
the grant.

          C. Vesting. Subject to Section 8 below, a Non-Employee Director’s rights with respect
to the shares of the Company’s common stock which are the subject of an Initial Award shall vest in
three equal annual installments on the first, second, and third anniversaries of the grant and with
respect to each Re-Election Award shall vest on the first anniversary of the date of grant.

          D. Shareholder Rights. Each Non-Employee Director receiving an Equity Award in the
form of a grant of Stock Grants shall be deemed to have all the rights of a stockholder with
respect to such Stock Grants as if such Non-Employee Director has received a grant of the shares of
common stock represented by such Stock Grants from and after the date of grant, subject to the
terms of this Plan and the risk of forfeiture inherent in the grant. The foregoing not
withstanding, the Stock Grant shall not be transferable by such Non-Employee Director by sale,
exchange, assignment, or encumbrance of any kind.

          E. Certificates. The stock certificate representing shares subject to a Stock Grant
shall be held by the Company until the Non-Employee Director’s rights in such shares vest. As a
condition of the grant, the Non-Employee Directors shall execute and deliver to the Company a blank
stock power to be attached to such certificate. Such certificate shall be promptly delivered to
such Non-Employee Directors following vesting. The Company may require as a condition to delivery
of such certificate that the Non-Employee Director sign such further documentation as the Company
reasonably determines to be necessary or appropriate to assure compliance with the requirements of
federal and applicable state securities laws.

	8.	 	Death; Disability; Cessation Of Service; Change In Control.

          a. Death or Disability. If a Non-Employee Director dies or becomes permanently and totally
disabled (as defined in Section 72(m)(7) of the Code), each of his or her unvested Stock Grant
grants shall vest upon the occurrence of such event.

          b. Retirement. If a Non-Employee Director retires from the Board of Directors of the Company
in accordance with the policies and practices thereof, each of his or her unvested Stock Grants
shall vest upon such retirement.

          c. Cessation Of Service. If a Non-Employee Director ceases to be a director of the Company as
a result of his or her voluntary resignation or as a result of his or her removal as a director the
shareholders of the Company for cause as permitted under the Delaware General Corporation Law, all
of his or her Equity Awards that are not vested prior to such cessation or removal shall be
forfeited. If a Non-Employee Director ceases to be a director of the Company as the result of his
or her removal by the shareholders of the Company without cause, each of his or her unvested Stock
Grant grants shall vest and be automatically converted into shares of the Company’s common stock
upon such cessation of service.

          d. Change In Control. If there is Change in Control of the Company, all unvested Stock Grants
shall become fully vested as of the date of the Change In Control. For this purpose, “Change in
Control” shall mean any of the following events:

                    (i) any “person” (as defined in section 3(a)(9) of the Securities Exchange Act of 1934, as
amended (the “Act”) and as used in Sections 13(d) and 14(d) thereof, including a “group” as defined
in Section 13(d) of the Act), except (A) Clydis D. Heist and her lineal descendants and any trust
for the benefit of

 

 

her lineal descendants (collectively, the “Heist Family”) and (B) any trustee or fiduciary of
any Company benefit plan, becomes the “beneficial owner” (as defined in Rule 13d-3 under the Act)
of securities of the Company having at least [25%] of the voting power of the Company’s then
outstanding securities (unless the event causing the 25% threshold to be crossed is an acquisition
of securities directly from the Company) but only if at the time of such person’s becoming the
beneficial owner of such voting power, the Heist Family no longer holds a majority of the
outstanding shares of the Company’s common stock; or

                    (ii) the shareholders of the Company shall approve any merger or other business combination of
the Company, any sale of all or substantially all of the Company’s assets in one or a series of
related transactions or any combination of the foregoing transactions (the “Transactions”),
other than a Transaction immediately following which the shareholders of the Company immediately
prior to the Transaction own greater than 50% of the voting securities of the surviving company (or
its parent) (or, in a sale of assets, of the purchaser of the assets) immediately following the
Transaction; or

                    (iii) within any 24 month period, the persons who were directors immediately before the
beginning of such period (the “Disinterested Directors”) shall cease (for any reason other
than death) to constitute at least a majority of the Board or the board of directors of a successor
to the Company. For this purpose, any director who was not a director at the beginning of such
period shall be deemed to be a Disinterested Director if such director was elected to the Board by,
or on the recommendation of or with the approval of, at least two-thirds of the directors who then
qualified as Disinterested Directors (so long as such director was not nominated by a person who
has entered into an agreement, or threatened, to effect a Change of Control).

	9.	 	Withholding Of Taxes.

          The Company may require, as a condition to any grant of an Equity Award under the Plan or to
the delivery of certificates for shares issued hereunder, that the grantee pay to the Company, in
cash, any federal, state or local taxes of any kind required by law to be withheld with respect to
any grant or any delivery of shares. The Company, in its sole discretion, may permit participants
to pay such taxes through the withholding of shares otherwise deliverable to such participant in
connection with such grant or the delivery to the Company of shares otherwise acquired by the
Non-Employee Director. The Fair Market Value of shares withheld by the Company or tendered to the
Company for the satisfaction of tax withholding obligations under this section shall be determined
on the date such shares are withheld or tendered. The Company, to the extent permitted or required
by law, shall have the right to deduct from any payment of any kind otherwise due to a grantee any
federal, state or local taxes of any kind required by law to be withheld with respect to any grant
or delivery of shares under the Plan, or to retain or sell without notice a sufficient number of
the shares to be issued to such grantee to cover any such taxes, provided that the Company shall
not sell any such shares if such sale would be considered a sale by such grantee for purposed of
Section 16 of the Securities Exchange Act of 1934 (the “Exchange Act”).

          A Non-Employee Director may elect to (i) have shares withheld from a grant or an award made
under the Plan or tender shares to the Company in order to satisfy the tax withholding consequences
of a grant or an award made under the Plan, only during the period beginning on the third business
day following the date on which the Company releases the financial information specified in 17
C.F.R. Section 240.16b-3 (e) (1) (ii) and ending on the twelfth business day following such date.

	10.	 	Written Agreement.

          Each Non-Employee Director to whom an Equity Award is made under the Plan shall enter into a
written agreement with the Company that shall contain such provisions, consistent with the
provisions of the Plan, as may be established by the Company.

	11.	 	Transferability.

          No right with respect to the shares subject to an unvested Equity Award shall be transferable
by a Non-Employee Director otherwise than as follows: (i) by will or the laws of descent, (ii) by
gift or contribution to a

 

 

Permitted Transferee, or (iii) by distribution pursuant to a qualified domestic relations
order as defined by the Code or Title I of the Employee Retirement Income Security Act of 1974, as
amended, or the rules thereunder. A “Permitted Transferee” means any one or more members of the
Non-Employee Director’s family, any one or more trusts for the benefit of one or more members of
his or her family, or any partnership of members of his or her family. Permitted Transferees and
other transferees of an Equity Award shall be subject to all restrictions, terms and conditions
applicable to such Equity Award prior to its transfer, except that the Equity Award shall not be
further transferable during the lifetime of the Permitted Transferee.

	12.	 	Adjustments.

          In the event of a reorganization, recapitalization, stock split, stock dividend, combination
of shares, merger, consolidation, distribution of assets, or any other change in the corporate
structure or shares of the Company, the Company shall make such adjustments as it deems appropriate
in the number and kind of shares reserved for issuance under the Plan, in the number and kind of
shares covered by outstanding Equity Awards granted under the Plan. In the event of any merger,
consolidation or other reorganization in which the Company is not the surviving or continuing
corporation, all Equity Awards granted hereunder and that are outstanding on the date of such event
shall be converted into Equity Awards with respect to the common stock of the surviving or
continuing corporation.

	13.	 	Listing And Registration.

          If the Company determines that the listing, registration, or qualification upon any securities
exchange or under any law of shares subject to any Equity Award granted under the Plan is necessary
or desirable as a condition of, or in connection with, the granting of same, no shares shall be
issued unless such listing, registration or qualification is effected free of any conditions not
acceptable to the Company.

	14.	 	Duration Of Plan.

          The Plan shall become effective as of the Effective Date and will terminate at 5:00 p.m.,
Eastern Time, on May 15, 2010, but no such termination shall affect the prior rights under the
Prior Plan or this Plan of the Company or of any Non-Employee Director who has received an Equity
Award hereunder.

 

 

Exhibit A

ABLEST INC.

NON-EMPLOYEE DIRECTORS’ EQUITY RIGHTS PLAN

STOCK GRANT AGREEMENT

          This Agreement is made and entered into on                     , 200___, between Ablest Inc.
(“Company”) and                                          (“Non-Employee Director”).

          In consideration of the mutual promises contained herein and for other good and valuable
consideration, the parties agree as follows:

1.      The Company hereby delivers to Non-Employee Director an award of ___
Shares of Common Stock of the Company (the “Restricted Shares”) upon and
subject to the terms and conditions hereof and of the Company’s Non-Employee
Directors’ Equity Rights Plan, including risks of forfeiture set forth in
the Plan. The Company also hereby agrees that in the event Non-Employee
Director makes a timely election under Section 83(b) of the Internal Revenue
Code of 1986, as amended, to be taxed for federal income tax purposes upon
receipt of such Restricted Shares and so notifies the Company in writing,
the Company shall pay to Non-Employee Director, in cash, a Tandem Award in
the amount of $                                         .

2.      Except as otherwise provided under the Plan, the Restricted Shares shall
vest in accordance with the following vesting schedule

	 	 	 	 	 
	 

	 	First Anniversary of Grant Date
	 	Percent Vested                                         
	 

	 	Second Anniversary of Grant Date
	 	Percent Vested                                         
	 

	 	Third Anniversary of Grant Date
	 	Percent Vested                                         

The Restricted Shares will also become fully vested upon the death,
retirement, permanent disability, or removal of the Non-Employee Director as
a director without cause, all in accordance with the terms of the Plan.

The Non-Employee Director’s rights with respect to the Restricted Shares, to
the extent not then vested, shall terminate and be forfeited upon the
voluntary resignation of Non-Employee Director as a director or his or her
removal as a director for cause, all in accordance with the terms of the
Plan.

3.      The stock certificate for the Restricted Shares shall be held by the
Company during the period of any restriction thereon. The Non-Employee
Director shall execute a blank stock power to be attached to such
certificate while held by the Company.

4.      The certificate for the Restricted Shares shall be delivered to the
Non-Employee Director immediately following the vesting date. The Company
may require, as a condition of delivery of such certificate, that the
Non-Employee Director sign such further documents as it reasonably
determines to be necessary or appropriate to assure compliance with the
requirements of federal and applicable state securities laws.

5.      The Non-Employee Director shall have all rights of a stockholder with
respect to the Restricted Shares from and after the date hereof, in
accordance herewith and subject to the risks of forfeiture set forth in the
Plan.

 

 

6.      The terms and conditions contained in the Plan, as it may be amended from
time to time hereafter, are incorporated into and made a part of this
Agreement by reference, as if the same were set forth herein in full, and
all provisions of this Agreement are made subject to the terms of the Plan,
as so amended. All initially capitalized terms used herein shall the
meaning given to such terms in the Plan.

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures as of the date noted
above.

	 	 	 	 	 	 	 	 	 
	ABLEST INC.	 	 	 	NON-EMPLOYEE DIRECTOR	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

Signature
	 	 
	 
	 	 	 	 	 	 	 	 
	Its:
	 	 	 	 	 	 	 	 
	 

	 	 

Charles H. Heist, Chairman
	 	 	 	 

Printed Name

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