Document:

exv10w16

 

Exhibit 10.16

 

2007 Schedule — ABC Annual Incentive Compensation Plan

Pursuant to the Annual Incentive Compensation Plan (the “Plan”), the Board Compensation
Committee has adopted the following Individual Award Opportunities, Performance Goals, Performance
Measures, and Participants for Arkansas Best Corporation/Data-Tronics Corp. in 2007.

I. Individual Award Opportunities

The Individual Award Opportunities provided by this plan are based on (a) reaching set
performance goals for ABC’s Return on Capital Employed (“ROCE”) and (b) your Target Incentive
Award. (ABC uses consolidated ROCE). The formula below illustrates how your benefit is computed:

Your Benefit = [Percent of Target x Your Target Incentive Award x Your Base Salary]

“Percent of Target” is shown in Table 1 of Appendix A and depends on the ROCE achieved by ABC for
the year.

     A. Performance Goals The performance goals are listed in Appendix A, Table 1.

     B. Target Incentive Award. Target Incentive Award is a percentage of your Base Salary. The
percentage varies for each level of management within the company. The Target Incentive Awards are
listed in Appendix A, Table 2.

     C. Base Salary. Base Salary means as to any specific Plan Year, a participant’s base salary
paid in the fiscal year for which the annual incentive is earned. Base Salary is not reduced by any
voluntary salary reductions or any salary reduction contribution made to any salary reduction plan,
defined contribution plan or other deferred compensation plans of the Company, but does not include
any payments under the Plan, any stock option, restricted stock or other type of equity plan, or
any other bonuses, incentive pay or special awards.

II. Performance Measure 

ROCE for ABC is calculated as the following ratio:

Net Income + After-tax Effect of Interest Expense

+ After-tax Effect of Imputed Interest Expense 

Average Equity + Average Debt + Average Imputed Debt

“Net Income” for the ROCE calculation is net income determined in accordance with Generally
Accepted Accounting Principles after taking into account the Section IV Required Adjustments,
except that: (i) 1/10th of the 2006 after-tax settlement accounting charge will be
deducted from net income, and (ii) the after-tax annual incentive compensation earned by ABC and
Data-Tronics employees under this Plan and the after-tax annual incentive compensation earned by
ABF employees under the ABF Annual Incentive Compensation Plan will be added back.

“Interest Expense” for the ROCE calculation is (i) interest on all long and short-term indebtedness
and other interest bearing obligations, and (ii) deferred financing cost amortization and other
financing costs including letters of credit fees.

“Imputed Interest Expense” consists of the interest attributable to Average Imputed Debt assuming
an interest rate of 7.5%.

 

 

 

“Average Debt” is the average of the beginning of the year and the end of the year current and
long-term debt.

“Average Imputed Debt” consists of the average of the beginning of the year and the end of the year
present value of all payments determined using an interest rate of 7.5% on operating leases of
revenue equipment with an initial term of more than two years.

III. Participants

Participants in the Annual Incentive Compensation Plan are the following job positions and
other job positions or key employees as may be specifically approved by the Board of Directors:

	 	 	 
	Arkansas Best Corporation

	 	President-CEO, Senior Vice Presidents, Vice Presidents, Department Directors
	 
	 	 
	Data-Tronics Corp.

	 	President, Department Directors

IV. Required Adjustments

The following adjustments shall be made:

Net Income for the Performance Measure shall be adjusted to exclude any of the following events:
(i) losses due to changes in the tax law or other such laws or regulations affecting reported
results, (iii) accruals for reorganization and restructuring programs, (iv) an extraordinary,
unusual or non-recurring items as described in Accounting Principles Board Opinion (ABP”) No.
30, (v) any change in accounting principle as defined in APB No. 20, and (vi) any loss from a
discontinued operation as described in Financial Accounting Standards No. 144.

V. Discretionary Adjustments

Prior to a Change In Control, the Compensation Committee may reduce any Participant’s Final
Award if the Compensation Committee determines, in its sole discretion, that events have occurred
or facts have become known which would make a reduction appropriate and equitable.

 

 

 

Appendix A

2007 Schedule

Table 1

	 	 	 	 	 	 	 
	Return on Capital Employed Earned	 	Percent of Target Incentive Award Earned
	(“ROCE”)	 	(“Percent of Target”)
	 	7%
	 	 	 	40%	 
	 	 
	 	 	 	 	 
	 	8%
	 	 	 	60%	 
	 	 
	 	 	 	 	 
	 	9%
	 	 	 	80%	 
	 	 
	 	 	 	 	 
	 	10%
	 	 	 	100%	 
	 	 
	 	 	 	 	 
	 	11%
	 	 	 	120%	 
	 	 
	 	 	 	 	 
	 	12%
	 	 	 	140%	 
	 	 
	 	 	 	 	 
	 	13%
	 	 	 	160%	 
	 	 
	 	 	 	 	 
	 	14%
	 	 	 	190%	 
	 	 
	 	 	 	 	 
	 	15%
	 	 	 	220%	 
	 	 
	 	 	 	 	 
	Above 15%
	 	Increase Percent of Target by 30% for each percentage point above 15% ROCE

Table 2

	 	 	 
	Job Title 	 	Target Incentive Award
	ABC – President-CEO
	 	_____;%
	 
	 	 
	ABC – SVP
	 	_____;%
	 
	 	 
	ABC Vice President
DTC President
	 	_____;%
	 
	 	 
	ABC/DTC Department Director
	 	_____;%exv10w17

 

Exhibit 10.17

ABC/DTC/ABF

Long-Term (3-Year) Incentive Compensation Plan — Total

Pursuant to this “Long-Term Incentive Compensation Plan – Total”, the Arkansas Best
Corporation Board of Directors Compensation Committee has determined that the Long-Term Incentive
Compensation Plan – Total will include the following pro rated portions for the three-year period
beginning 1/1/2007 and ending 12/31/2009 (“Measurement Period”):

Long-Term Incentive Compensation Plan – ROCE Portion (“ROCE Portion”, attached): 60%
weighting

Long-Term Incentive Compensation Plan – Growth Portion (“Growth Portion”, attached): 40%
weighting

The Committee has set the maximum award that any individual may earn under this “Long-Term
Incentive Compensation Plan – Total” for the Measurement Period at $2 million.

The terms of the Long-Term Incentive Compensation Plan – ROCE Portion and the Long-Term
Incentive Compensation Plan – Growth Portion are incorporated into the Long-Term Incentive
Compensation Plan.

 

 

ABC/DTC/ABF

Long-Term (3-Year) Incentive Compensation Plan — ROCE Portion

Pursuant to the Arkansas Best Corporation (“ABC” or “Company”) 2005 Ownership Incentive Plan,
the Company’s Board of Directors Compensation Committee has adopted the Long-Term Incentive
Compensation Plan — Total (“Total Plan”) and this is the ROCE Portion of the Total Plan (“ROCE
Portion”), including the following Individual Award Opportunities, Performance Goals, Performance
Measures, and Participants for Arkansas Best Corporation, Data-Tronics Corp. and ABF Freight
System, Inc. (“ABF”) for the three-year period beginning 1/1/2007 and ending 12/31/2009
(“Measurement Period”).

I. Individual Award Opportunities

The Individual Award Opportunities provided by this ROCE Portion are based on (a) reaching set
performance goals for ABC’s consolidated Return on Capital Employed (“ROCE”) and (b) your Target
Incentive Award. The formula below illustrates how your benefit is computed:

Your Benefit = [Percent of Target x Your Target Incentive Award x Your Base Salary x ROCE Portion
Weighting]. If your job position changes during the Measurement Period, your Benefit will be
prorated based on the period you are an eligible participant in the Plan, the applicable Percentage
of Target, Your Target Incentive Award and Your Base Salary assigned to each of the eligible Job
Positions listed in Section III below, which you held during the Measurement Period. If you die,
are Disabled or Retire as provided for under Section IV (b) below, your Benefit will be prorated by
the number of months of the Measurement Period you participated in the 3-Year ROCE Plan.

“Base Salary” is defined as total base salary paid, while an eligible participant in the Plan, for
the Measurement Period divided by the number of months in the Measurement Period multiplied by
twelve. Base salary shall not be reduced by any voluntary salary reductions or any salary reduction
contributions made to any salary reduction plan, defined contribution plan or other deferred
compensation plans of the Company but does not include any payments under the Plan, any stock
option or other type of equity plan, or any other bonuses, incentive pay or special awards.

“Percent of Target” is determined by the table below and depends on the three-year average ROCE
achieved by ABC for the Measurement Period.

“ROCE Portion Weighting” is determined by Compensation Committee for each Measurement Period and is
stated in Appendix A.

     A. Performance Goals The performance goals are listed in Appendix A, Table 1.

     B. Target Incentive Award. Target Incentive Award is a percentage of your Base Salary. The
percentage varies for each level of management within the company. The Target Incentive Awards are
listed in Appendix A, Table 2.

II. Performance Measure 

ROCE for ABC is calculated as the following ratio for the Measurement Period:

Net Income + After-tax Effect of Interest Expense + After-tax Effect of Imputed Interest Expense 

Average Equity + Average Debt + Average Imputed Debt

Divided by 3

“Net Income” for the ROCE calculation is net income for the Measurement Period determined in
accordance with Generally Accepted Accounting Principles after taking into account the Section IV
Required Adjustments, except that : (i) 3/10ths of the

 

 

2006 after-tax settlement accounting charge will be deducted from net income, and (ii) the
after-tax long-term incentive compensation earned under the Total Plan will be added back.

“Interest Expense” for the ROCE calculation is (i) interest on all long and short-term indebtedness
and other interest bearing obligations and (ii) deferred financing cost amortization and other
financing costs, including letters of credit fees for the Measurement Period.

“Imputed Interest Expense” consists of the interest attributable to Average Imputed Debt assuming
an interest rate of 7.5% for the Measurement Period.

“Average Equity” is the average of the beginning of the Measurement Period and the end of the
Measurement Period stockholder’s equity.

“Average Debt” is the average of the beginning of the Measurement Period and the end of the
Measurement Period current and long-term debt.

“Average Imputed Debt” consists of the average of the beginning of the Measurement Period and the
end of the Measurement Period present value of all payments determined using an interest rate of
7.5% on operating leases of revenue equipment with an initial term of more than two years.

III. Participants

Participants in the ROCE Portion are the following job positions (who are not active
participants in the Company’s Supplemental Benefit Plan or its Deferred Salary Agreement program)
and other job positions or key employees as may be specifically approved by the ABC Board of
Directors from time-to-time:

	 	 	 
	Company	 	Job Positions
	Arkansas Best Corporation

	 	President — CEO, Senior Vice Presidents and Vice Presidents
	 
	 	 
	ABF Freight System, Inc.

	 	Senior Vice Presidents, Vice Presidents
	 
	 	 
	Data-Tronics Corp.

	 	President

An employee may not become a Participant after the 12th month of the Measurement Period.

IV. Required Adjustments

The following adjustments shall be made:

Net Income for the Performance Measure shall be adjusted to exclude any of the following events:
(i) losses due to changes in the tax law or other such laws or regulations affecting reported
results, (iii) accruals for reorganization and restructuring programs, (iv) any extraordinary,
unusual or non-recurring items as described in Accounting Principles Board Opinion (ABP”) No.
30, (v) any change in accounting principle as defined in APB No. 20, and (vi) any loss from a
discontinued operation as described in Financial Accounting Standards No. 144.

V. Discretionary Adjustments

Prior to a Change In Control, the Compensation Committee may reduce any Participant’s Final
Award if the Compensation Committee determines, in its sole discretion, that events have occurred
or facts have become known which would make a reduction appropriate and equitable.

 

 

VI. Effect of Termination of Employment; Change in Control

	 	(a)	 	General. Except as provided in subparts (b) or (c), upon a termination of
Participant’s employment with the Company or any Subsidiary for any reason prior to the
completion of the Measurement Period, the Participant shall not be entitled to any Benefit
under this ROCE Portion.
	 
	 	(b)	 	Death; Disability; Retirement. Upon termination of Participant’s employment
with the Company or any Subsidiary by reason of Participant’s death, Disability or
Retirement (as defined below), Participant’s Benefit shall be prorated as provided for
under Section I above, provided that Participant’s Benefit shall be computed and paid in
the normal course of business after the end of the Measurement Period. Provided, however,
an employee must have completed at least 12 months of the Measurement Period to be entitled
to a Benefit under this Section IV (b).
	 
	 	 	 	For the purposes of this ROCE Portion, the term “Disability” shall mean a condition under
which the Participant either (A) is unable to engage in any substantial gainful activity by
reason of 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 three
months under an accident or health plan covering employees of the Company. For purposes of this
ROCE Portion, the term “Retirement” shall mean Participant’s retirement from active employment
by or service with the Company at or after age 55 or greater, so long as the Participant has, as
of the date of such retirement, at least 10 years of service with the Company or any Subsidiary.
	 
	 	(c)	 	Change in Control. Upon termination of Participant’s employment with the
Company or any Subsidiary without Cause (as defined below) or by Participant for Good
Reason (as defined below), in either case, within the 24-month period following a Change in
Control, Participant shall be entitled to immediate payment of the greater of the
following:

(y) 100% of the “Percentage Target Incentive Award Earned” under Appendix A, Table 1 , or

(z) The actual percentage of “Percentage Target Incentive Award Earned” under Appendix A,
Table 1

calculated as if the Measurement Period ended on Participant’s employment termination date.

For purposes of this ROCE Portion, the term “Cause” shall mean (i) Participant’s gross
misconduct or fraud in the performance of Participant’s duties to the Company or any Subsidiary;
(ii) Participant’s conviction or guilty plea or pleas of nolo contendere with respect to any
felony or act of moral turpitude; (iii) Participant’s engaging in any material act of theft or
material misappropriation of Company or any Subsidiary’s property, or (iv) Participant’s
material breach of the Company’s Code of Conduct, as such Code may be revised from time to time.
For purposes of this ROCE Portion the term “Good Reason” shall mean (i) any material adverse
diminution in Participant’s title, duties, or responsibilities; (ii) a reduction in
Participant’s base salary or employee benefits (including reducing Participant’s level of
participation or target bonus award opportunity in the Company’s or a Subsidiary’s incentive
compensation plans) or (iii) a relocation of Participant’s principal place of employment of more
than 50 miles without the prior consent of Participant.

V. 2005 Incentive Ownership Plan

Defined terms in the 2005 Incentive Ownership Plan shall have the same meaning in this
3-Year ROCE Plan, except where the context otherwise requires.

No term or provision in this ROCE Portion may conflict with any term or provision of the 2005
Incentive Ownership Plan or the Total Plan. It is specifically intended that the Total Plan and
this ROCE Portion be an “Award Agreement” and the benefits paid hereunder be an “Award” under
the terms of the 2005 Incentive Ownership Plan.

 

 

Appendix A

2007-2009 LTIP — ROCE Portion

Table 1

	 	 	 	 	 	 	 
	Three-Year Average Return on Capital Employed	 	Percent of Target Incentive Award Earned
	(“ROCE”)	 	(“Percent of Target”)
	 	7%
	 	 	 	40%	 
	 	 
	 	 	 	 	 
	 	8%
	 	 	 	60%	 
	 	 
	 	 	 	 	 
	 	9%
	 	 	 	80%	 
	 	 
	 	 	 	 	 
	 	10%
	 	 	 	100%	 
	 	 
	 	 	 	 	 
	 	11%
	 	 	 	120%	 
	 	 
	 	 	 	 	 
	 	12%
	 	 	 	140%	 
	 	 
	 	 	 	 	 
	 	13%
	 	 	 	160%	 
	 	 
	 	 	 	 	 
	 	14%
	 	 	 	190%	 
	 	 
	 	 	 	 	 
	 	15%
	 	 	 	220%	 
	 	 
	 	 	 	 	 
	Above 15%
	 	Increase Percent of Target by 30% for each percentage point above 15% ROCE

Table 2

	 	 	 
	Job Title	 	Target Incentive Award
	ABC – President & CEO
	 	_____%
	 
	 	 
	ABC & ABF – SVPs
	 	_____%
	 
	 	 
	ABC & ABF – VPs, DTC President
	 	_____%

ROCE Portion Weighting: 60%

 

 

ABC/DTC/ABF

Long-Term (3-Year) Incentive Compensation Plan — Growth Portion

Pursuant to the Arkansas Best Corporation (“ABC” or “Company”) 2005 Ownership Incentive Plan,
the Company’s Board of Directors Compensation Committee has adopted the Long-Term Incentive
Compensation Plan – Total (“Total Plan”) and this is the Growth Portion of the Total Plan (“Growth
Portion”), including the following Individual Award Opportunities, Performance Goals, Performance
Measures, and Participants for Arkansas Best Corporation, Data-Tronics Corp. and ABF Freight
System, Inc. (“ABF”) for the three-year period beginning 1/1/2007 and ending 12/31/2009
(“Measurement Period”).

I. Individual Award Opportunities

The Individual Award Opportunities provided by the Growth Portion are based on (a) reaching
set performance goals for the Compounded Annual Growth Rate of Consolidated Earnings per Share and
(b) your Target Incentive Award. The formula below illustrates how this portion of your benefit is
computed:

Your Benefit = [Percent of Target x Your Target Incentive Award x Your Base Salary x Growth Portion
Weighting]. If your job position changes during the Measurement Period, your Benefit will be
prorated based on the period you are an eligible participant in the Plan, the applicable Percentage
of Target, Your Target Incentive Award and Your Base Salary assigned to each of the eligible Job
Positions listed in Section III below, which you held during the Measurement Period. If you die,
are Disabled or Retire as provided for under Section IV (b) below, your Benefit will be prorated by
the number of months of the Measurement Period you participated in the Growth Portion.

“Base Salary” is defined as total base salary paid, while an eligible participant in the Plan, for
the Measurement Period divided by the number of months in the Measurement Period multiplied by
twelve. Base salary shall not be reduced by any voluntary salary reductions or any salary reduction
contributions made to any salary reduction plan, defined contribution plan or other deferred
compensation plans of the Company but does not include any payments under the Total Plan, any stock
option or other type of equity plan, or any other bonuses, incentive pay or special awards.

“Percent of Target” is determined by the table below and depends on the Compounded Annual Growth
Rate of Consolidated Earnings per Share achieved by ABC for the Measurement Period.

“Growth Portion Weighting” is determined by the Compensation committee for each Measurement Period
and is stated in Appendix A.

     A. Performance Goals The performance goals are listed in Appendix A, Table 1.

     B. Target Incentive Award. Target Incentive Award is a percentage of your Base Salary. The
percentage varies for each level of management within the Company. The Target Incentive Awards are
listed in Appendix A, Table 2.

II. Performance Measure 

“The Compounded Annual Growth Rate of Consolidated Earnings per Share” is defined as the
increase in 2009 Consolidated Earnings per Share over 2006 Consolidated Earnings per Share
expressed as a compounded annual
growth rate for the Measurement Period. Consolidated Earnings per Share is defined as ABC’s
Consolidated Earnings per Share determined in accordance with Generally Accepted Accounting
Principles after taking into

 

 

account the Section VI Required Adjustments, except that the after-tax long-term incentive
compensation earned under the Total Plan will be added back.

The Performance Measure for the Growth Portion is based upon achieving the Compounded Annual Growth
Rate of Consolidated Earnings per Share levels outlined in the Individual Award Opportunities
section above.

III. Participants

Participants in the Growth Portion are the following job positions (who are not active
participants in the Company’s Supplemental Benefit Plan or its Deferred Salary Agreement program)
and other job positions or key employees as may be specifically approved by the ABC Board of
Directors from time-to-time:

	 	 	 
	Company	 	Job Positions
	Arkansas Best Corporation

	 	President — CEO, Senior Vice Presidents and Vice Presidents
	 
	 	 
	ABF Freight System, Inc.

	 	Senior Vice Presidents and Vice Presidents
	 
	 	 
	Data-Tronics Corp.

	 	President

An employee may not become a Participant after the 12th month of the Measurement Period.

IV. Effect of Termination of Employment; Change in Control

	 	(d)	 	General. Except as provided in subparts (b) or (c) , upon a termination of
Participant’s employment with the Company or any Subsidiary for any reason prior to the
completion of the Measurement Period, the Participant shall not be entitled to any Benefit
under this Growth Portion.
	 
	 	(e)	 	Death; Disability; Retirement. Upon termination of Participant’s employment
with the Company or any Subsidiary by reason of Participant’s death, Disability or
Retirement (as defined below), Participant’s Benefit shall be prorated as provided for
under Section I above, provided that Participant’s Benefit shall be computed and paid in
the normal course of business after the end of the Measurement Period. Provided, however,
an employee must have completed at least 12 months of the Measurement Period to be entitled
to a Benefit under this Section IV (b).
	 
	 	 	 	For the purposes of this Growth Portion, the term “Disability” shall mean a condition under
which the Participant either (A) is unable to engage in any substantial gainful activity by
reason of 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 three
months under an accident or health plan covering employees of the Company. For purposes of this
Growth Portion, the term “Retirement” shall mean Participant’s retirement from active employment
by or service with the Company on or after a 55 or greater, so long as the Participant has, as
of the date of such retirement, at least 10 years of service with the Company or any Subsidiary.
	 
	 	(f)	 	Change in Control. Upon termination of Participant’s employment with the
Company or any Subsidiary without Cause (as defined below) or by Participant for Good
Reason (as defined below), in either case, within the 24-month period following a Change in
Control, Participant shall be entitled to immediate payment of the greater of the
following:

(y) 100% of the “Percentage Target Incentive Award Earned” under Appendix A, Table 1, or

(z) The actual percentage of “Percentage Target Incentive Award Earned” under Appendix A,

Table 1, calculated as if the Measurement Period ended on Participant’s employment
termination date.

 

 

For purposes of this Growth Portion, the term “Cause” shall mean (i) Participant’s gross misconduct or
fraud in the performance of Participant’s duties to the Company or any Subsidiary; (ii) Participant’s
conviction or guilty plea or pleas of nolo contendere with respect to any felony or act of
moral turpitude; (iii) Participant’s engaging in any material act of theft or material
misappropriation of Company or any Subsidiary’s property, or (iv) Participant’s material breach
of the Company’s Code of Conduct, as such Code may be revised from time to time. For purposes
of this Growth Portion the term “Good Reason”
shall mean (i) any material adverse diminution in Participant’s title, duties, or
responsibilities; (ii) a reduction in Participant’s base salary or employee benefits
(including reducing Participant’s level of participation or target bonus award opportunity
in the Company’s or a Subsidiary’s incentive compensation plans) or (iii) a relocation of
Participant’s principal place of employment of more than 50 miles without the prior consent
of Participant.

V. 2005 Incentive Ownership Plan

Defined terms in the 2005 Incentive Ownership Plan and the Total Plan shall have the same
meaning in this Growth Portion, except where the context otherwise requires.

No term or provision in this Growth Portion may conflict with any term or provision of the 2005
Incentive Ownership Plan or the Total Plan. It is specifically intended that the Total Plan and
this Growth Portion be an “Award Agreement” and the benefits paid hereunder be an “Award” under
the terms of the 2005 Incentive Ownership Plan.

VI. Required Adjustments

The following adjustments shall be made:

ABC’s Consolidated Earnings per Share for the Performance Measure shall be adjusted to exclude
any of the following events: (i) losses due to changes in the tax law or other such laws or
regulations affecting reported results, (iii) accruals for reorganization and restructuring
programs, (iv) any extraordinary, unusual or non-recurring items as described in Accounting
Principles Board Opinion (ABP”) No. 30, (v) any change in accounting principle as defined in APB
No. 20, and (vi) any loss from a discontinued operation as described in Financial Accounting
Standards No. 144.

VII. Discretionary Adjustments

Prior to a Change In Control, the Compensation Committee may reduce any Participant’s Final
Award if the Compensation Committee determines, in its sole discretion, that events have
occurred or facts have become known which would make a reduction appropriate and equitable.

VIII. Other Adjustments

In the event that there is any change in the common stock of the Company as the result of
any stock dividend on, dividend of or stock split or stock combination of, or any like change
in, stock of the same class or in the event of any change in the capital structure of the
Company all share and earnings per share amounts will be adjusted appropriately.

 

 

Appendix A

2007 — 2009 LTIP — Growth Portion

Table 1

	 	 	 	 	 	 	 
	Compounded Annual Growth Rate	 	Percent of Target Incentive Award Earned
	of Consolidated Earnings per Share	 	(“Percent of Target”)
	 	4%
	 	 	 	20%	 
	 	 
	 	 	 	 	 
	 	5%
	 	 	 	40%	 
	 	 
	 	 	 	 	 
	 	6%
	 	 	 	60%	 
	 	 
	 	 	 	 	 
	 	7%
	 	 	 	80%	 
	 	 
	 	 	 	 	 
	 	8%
	 	 	 	100%	 
	 	 
	 	 	 	 	 
	 	9%
	 	 	 	120%	 
	 	 
	 	 	 	 	 
	 	10%
	 	 	 	140%	 
	 	 
	 	 	 	 	 
	 	11%
	 	 	 	160%	 
	 	 
	 	 	 	 	 
	 	12%
	 	 	 	180%	 
	 	 
	 	 	 	 	 
	 	13%
	 	 	 	210%	 
	 	 
	 	 	 	 	 
	Above 13%
	 	Increase Percent by 30% for each 1% increase in the
Compounded Annual Growth Rate of Consolidated Earnings per Share in excess of 13%

Table 2

	 	 	 
	Job Title	 	Target Incentive Award
	ABC – President & CEO
	 	_____%
	 
	 	 
	ABC & ABF– SVPs
	 	_____%
	 
	 	 
	ABC & ABF – VPs, DTC President
	 	_____%

Growth Portion Weighting: 40%

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