Document:

exhibit10-2.htm

USA Truck, Inc.  ̈ 2013 Management Bonus Plan

2013 Management Bonus Plan – Executive Group

PURPOSE

On January 30, 2013, the Executive Compensation Committee (the “Committee”) of the Board of Directors of USA Truck, Inc. (the “Company”) approved the USA Truck, Inc. Management Bonus Plan (the “Plan”).  The Plan’s objectives are to attract, retain and motivate key management employees (“Participants”), to reward those management employees for meeting or exceeding their performance targets and to align the incentive rewards with the Company’s long-term objective of creating and growing economic value for its stockholders.  The Plan consists of cash and equity incentive awards.

PLAN PROVISIONS

Plan participants will be paid a cash percentage and an equity percentage of their December 31, 2013 base salaries corresponding with the achievement of certain levels of consolidated 2013 pretax income (“PTI”).

	
A.  

	
CASH BONUS.  Each applicable level of consolidated 2013 PTI corresponds to a percentage bonus opportunity for the Participant that is multiplied by the Participant’s base salary to determine the Participant’s cash bonus.  Pursuant to the Plan, designated members of the Executive Group may receive between 20% and 100% of their respective base salaries in cash (with a targeted payout of 60%) depending on the applicable level of consolidated 2013 PTI achieved (inclusive of bonus expense).  In order for the cash bonus to be paid, the Company must achieve a minimum of $3,000,000 of PTI, based on the audited consolidated results of operations of the Company for the year ending December 31, 2013.  To the extent PTI exceeds $3,000,000, the percentage of cash bonus to be paid will increase up to the maximum percentage for each group when PTI equals or exceeds $30,000,000.

	  	
PTI

	
Payout

	
Notes

	
Minimum

	
$3,000,000

	
20.0%

	
All PTI above $3 million will be used to fund the Plan until all participant’s minimum payout levels have been funded, thus the Plan could payout less than 20.0%.  For example, if $500,000 is required to fund all participants’ minimum payouts, but only $3,250,000 of PTI is generated BEFORE bonus expense, then only 50% of the minimum payout can be funded: (($250,000 ÷ $500,000) x 20%) = 10% payout.

	
Target

	
$20,000,000

	
60.0%

	
The payout % grows proportionately between $3 million and $20 million of PTI.  For example, PTI of $7,250,000 would result in the following % payout: ($7,250,000  - $3,000,000) ÷ ($20,000,000 - $3,000,000) = 25% x (60% - 20%) = 10% + 20% = 30% payout

	
Maximum

	
$30,000,000

	
100.0%

	
The payout % grows proportionately between $20 million and $30 million of PTI.  For example, PTI of $24,000,000 would result in the following % payout: ($24,000,000  - $20,000,000) ÷ ($30,000,000 - $20,000,000) = 40% x (100% - 60%) = 16% + 60% = 76% payout

 

  

  

  

 

	
B.  

	
EQUITY BONUS.  Equity awards, if any, will consist of restricted stock (“RSAs”).  Each applicable level of consolidated 2013 PTI corresponds to a percentage bonus opportunity for the Participant.  The percentage is multiplied by the Participant’s base salary and that amount is divided by the closing price of the Company’s common stock on the day following the release of its 2013 earnings, or any other date as determined by the Committee, to determine the number of shares to be awarded.  Pursuant to the Plan, designated members of the Executive Group may receive between 10% and 30% of their respective base salaries in equity (with a targeted payout of 20%) depending on the applicable level of consolidated 2013 PTI achieved (inclusive of cash bonus expense).  In order for the equity bonus to be issued, the Company must achieve a minimum of $3,000,000 of PTI, based on the audited consolidated results of operations of the Company for the year ending December 31, 2013.  To the extent PTI exceeds $3,000,000, the percentage of equity bonus to be issued will increase up to the maximum percentage for each group when PTI equals or exceeds $30,000,000.

	  	
PTI

	
Payout

	
Notes

	
Minimum

	
$3,000,000

	
10.0%

	
All PTI above $3 million will be used to fund the Plan until all participant’s minimum payout levels have been funded, thus the Plan could payout less than 10.0%.  For example, if $500,000 is required to fund all participants’ minimum payouts, but only $3,250,000 of PTI is generated BEFORE bonus expense, then only 50% of the minimum payout can be funded: (($250,000 ÷ $500,000) x 10%) = 5% payout.

	
Target

	
$20,000,000

	
20.0%

	
The payout % grows proportionately between $3 million and $20 million of PTI.  For example, PTI of $7,250,000 would result in the following % payout: ($7,250,000  - $3,000,000) ÷ ($20,000,000 - $3,000,000) = 25% x (20% - 10%) = 2.5% + 10% = 12.5% payout

	
Maximum

	
$30,000,000

	
30.0%

	
The payout % grows proportionately between $20 million and $30 million of PTI.  For example, PTI of $24,000,000 would result in the following % payout: ($24,000,000  - $20,000,000) ÷ ($30,000,000 - $20,000,000) = 40% x (30% - 20%) = 4% + 20% = 24% payout

RSAs issued in connection with the equity bonus will vest over a four-year period at 25% per year on the anniversary of the grant date and 25% on each succeeding anniversary date, conditioned on continued employment and certain other forfeiture provisions, and will be issued from the Company’s 2004 Equity Incentive Plan.

Instead of RSAs, the Committee may, at its discretion, choose to award the shares in the form of nonqualified stock options (“NQOs”), the number of which would be determined based upon the Black-Scholes-Merton cost model and the exercise price of which would be the closing price of the Company’s common stock on the day following the release of its 2013 earnings, or any other date as determined by the Committee.  NQOs will vest over a four-year period at 25% per year on the anniversary of the grant date and 25% on each succeeding anniversary date, conditioned on continued employment and certain other forfeiture provisions, and will be issued from the Company’s 2004 Equity Incentive Plan.

SUBJECT TO CHANGE

The Plan is subject to revision at any time at the discretion of the Committee of the Board of Directors of the Company.

 

  

2

  

 

ADMINISTRATION

The Plan shall be administered by the Committee of the Company, or its designee, who shall have full and complete authority and discretion to determine eligibility and qualifications of employees to participate in the Plan; to determine the incentive percentage and incentive amount each participant is eligible to receive under the Plan; to interpret and administer the Plan and/or any agreement entered into under the Plan; to establish such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; to delegate duties and responsibilities under the Plan to Company’s officers and/or employees as deemed necessary; and, to make any other determination and take any other action the Committee, or its designee, deems necessary or desirable for the administration, interpretation and management of the Plan.  Decisions of the Committee relating to the administration, interpretation, management and / or revision of the Plan shall be final, conclusive and binding on all persons, including the Company and its employees.

 

NO CONTRACT OF EMPLOYMENT

The Plan is an incentive plan only; no employee shall be entitled to participate in any Plan unless he or she meets all of the qualifications, terms and conditions stated herein.  The Plan does not constitute a contract, expressed or implied, and does not guarantee an employee’s employment or continued employment, with the Company for any specified duration.  The Company is an “at will” employer and, therefore, either the employee or the Company may terminate the employment relationship at any time, at will, for any reason, with or without cause, and without prior notice.exhibit10-3.htm

USA TRUCK, INC.

RESTRICTED STOCK AWARD AGREEMENT

 

THIS RESTRICTED STOCK AWARD AGREEMENT (“Agreement”) is entered into effective this ___ day of ____, 20__, by USA Truck, Inc. (“Company”) and ________ (“Participant”) to evidence an award of restricted stock on this date to Participant pursuant to the Company’s 2004 Equity Incentive Plan (the “Plan”). A copy of the Plan is available from the Company’s Secretary upon request.  NOW, THEREFORE, for the purposes set forth in the Plan, and in consideration of services to be rendered by Participant, the Company hereby grants the Award Shares (as defined below) to Participant on the terms hereinafter set forth:

 

    1.  Stock Award.  The Company hereby grants to Participant an Award of _____ restricted shares of Common Stock, $0.01 par value, of the Company (“Award Shares”), subject to the vesting, forfeiture and nontransferability provisions hereof and the other terms and conditions set forth herein.

 

    2.  Restrictions.  Participant represents that the Award Shares are being acquired by Participant for his/her own account for investment and not with a view to the distribution thereof, and no part of the Award Shares will be sold or otherwise disposed of except in compliance with the Securities Act of 1933, as amended, and the rules and regulations thereunder.  Participant shall not sell, assign, transfer, convey, donate, pledge, encumber or otherwise dispose of any of the Award Shares or any interest therein (and any such action or attempted action shall be void and of no force or effect whatsoever) before the vesting of such Award Shares in accordance with paragraph 3.

   

    3.  Vesting of Award Shares.  The Award Shares will vest in four increments if there is no Termination of Service (as defined in the Plan) prior to each vesting date.  If only a portion of the Award Shares are released from the restrictions as set forth above and such action would result in the release of a fractional share of Common Stock, the total number of Award Shares that shall vest and be released from the restrictions thereon shall be rounded down to the next lowest number of whole shares of Common Stock, as provided below.  When Award Shares have vested, the restrictions on transferability imposed under the last sentence of paragraph 2 and the forfeiture provisions imposed under paragraph 4 shall lapse with respect to such vested Award Shares.  Subject to no Termination of Service prior to each vesting date, the Award Shares shall vest as follows:

 

 

This document constitutes part of a prospectus covering securities that have been registered under the Securities Act of 1933.

The date of the prospectus is __________ ___, 20___

 

  

  

  

       (a)  One-fourth (1/4) of the total Award, or _____ Award Shares, will vest on _____ __, 20__ provided that there is no Termination of Service prior to such date.

 

       (b)  One-fourth (1/4) of the total Award, or _____ Award Shares, will vest on _____ __, 20__  provided that there is no Termination of Service prior to such date.

 

       (c)  One-fourth (1/4) of the total Award, or _____ Award Shares, will vest on _____ __, 20__  provided that there is no Termination of Service prior to such date.

 

       (d)  The remainder of the total Award, or _____ Award Shares, will vest on _____ __, 20__  provided that there is no Termination of Service prior to such date.

 

The vesting of Award Shares shall be subject to the payment by Participant of all amounts required to be paid with respect to such Award Shares under paragraph 9 hereof.

 

    4.  Forfeiture.  In the event of a Termination of Service, all of the unvested Award Shares shall be automatically forfeited.  Upon forfeiture as specified herein, the forfeited Award Shares shall forthwith be returned to the Company (to the extent held by the Participant) and any certificates, book entries, or other indicia of ownership cancelled without any payment or other consideration to Participant.

 

    5.  Deposit.  The certificates representing the Award Shares, issued in the name of Participant, and accompanied by assignments in blank separate from certificate, shall be deposited with and held by the Company.  Upon vesting pursuant to paragraph 3, the certificates representing the vested Award Shares shall be delivered to Participant.  Participant hereby designates and appoints the Corporate Treasurer and the Corporate Secretary of the Company, and each of them, with full power of substitution, as his agents and attorneys-in-fact in his name, place and stead, to transfer to the Company, on the books and records of the Company, any and all Award Shares issued in the name of Participant, upon forfeiture of the same in accordance with the Plan and this Agreement, and to take any and all actions, and to execute and deliver any and all documents, instruments and certificates as the attorney-in-fact may deem necessary or appropriate in connection therewith.

 

    6.  Legend.  Certificates representing the Award Shares shall bear a legend evidencing the restrictions and forfeiture provisions hereof.  When such restrictions and forfeiture provisions terminate, Participant shall be entitled to have such legend removed from such certificates upon presentation to the Company.

 

  

2

  

   

    7.  Dividend and Voting Rights.  Participant shall be entitled to receive any cash dividends and distributions paid on the Award Shares, and shall be entitled to vote the Award Shares, until and unless such shares are forfeited hereunder; provided, however, that any cash dividends or distributions on unvested Award Shares may, at the option of the Board of Directors, be held in escrow by the Company and delivered to Participant (with or without interest, as may be determined by the Board) or forfeited back to the Company, as the case may be, upon the vesting or forfeiture of such Award Shares.  Stock dividends, if any, on the Award Shares shall be delivered to the Company to be held and distributed or forfeited, as the case may be, in accordance with the terms hereof and of the Plan, in the same manner as the Award Shares in respect of which such stock dividends are paid.

 

    8.  Nontransferability.  Prior to vesting, the Award Shares herein granted and the rights and privileges conferred hereby are personal to Participant and shall not be sold, assigned, transferred, conveyed, donated, pledged, encumbered or disposed of in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process.

 

    9.  Taxes.  Participant shall, at each vesting date, pay to the Company an amount equal to any taxes that the Company is required to withhold in connection with the termination of the restrictions and forfeiture provisions hereof.  The taxes (federal, FICA, and state, where applicable) will be based on the fair market value of the Award Shares eligible for vesting on the applicable vesting date, determined by reference to the market closing sale price of the Company’s Common Stock on the Nasdaq Stock Market (or other exchange or market on which the Common Stock may then be listed) on such vesting date (or if there are no sales on such date, on the last preceding date for which such closing sale price information is available), subject to such adjustments for nontransferability or other factors as the Company’s Board of Directors may determine to be appropriate.  The foregoing shall be subject, however, to (a) Participant’s right to elect to accelerate the taxability of Award Shares under Section 83(b) of the Internal Revenue Code of 1986, as amended (in which case Participant shall have the obligations under this paragraph 9 on the grant date or other date on which such tax obligations arise as a result of such acceleration), and (b) Participant’s right to satisfy the foregoing obligations, in whole or in part, by electing to have withheld by the Company or by delivering and assigning to the Company shares of Common Stock having an aggregate fair market value equal to the amount of the tax withholding obligations in accordance with Article XIII of the Plan.   

 

 

  

3

  

 

    10.  Effect of Change in Control.

       (a) Upon the occurrence of a “Change in Control” of the Company, the unvested portion of the Award shall immediately vest as of the date of the occurrence of such event.

 

       (b) The term “Change in Control” shall be deemed to have occurred when:

 

          (i) Any “person” as defined in Section 3(a)(9) of the Exchange Act, and as used in Section 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) of the Exchange Act (but excluding the Company and any employee benefit plan sponsored or maintained by the Company (including any trustee of such plan acting as trustee)), directly or indirectly, becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities (other than indirectly as a result of the Company’s redemption of its securities); or 

 

          (ii) The consummation of any merger or other business combination of the Company, a sale of  more than 50% or more of the Company’s assets, liquidation or dissolution of the Company or a combination of the foregoing transactions (the “Transactions”) other than a Transaction immediately following which either (x) the shareholders of the Company and any trustee or fiduciary of any Company employee benefit plan immediately prior to the Transaction own more than 50% of the voting power, directly or indirectly, of (A) the surviving corporation in any such merger or other business combination; (B) the purchaser of or successor to the Company’s assets; (C) both the surviving corporation and the purchaser in the event of any combination of Transactions; or (D) the parent company owning 100% of such surviving corporation, purchaser or both the surviving corporation and the purchaser, as the case may be ((A), (B), (C) or (D), as applicable, the “Surviving Entity”) or (y) the Incumbent Directors, as defined below, shall continue to serve as a majority of the board of directors of the Surviving Entity without an agreement or understanding that such Incumbent Directors will later surrender such majority; or 

 

          iii) Within any twelve-month period, the persons who were directors immediately before the beginning of such period (the “Incumbent Directors”) shall cease (for any reason other than death) to constitute at least a majority of the Board or the board of directors of any successor to the Company, including any Surviving Entity. For this purpose, any director who was not a director at the beginning of such period shall be deemed to be an Incumbent 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 Incumbent Directors (so long as such director was not nominated by a person who commenced or threatened to commence an election contest or proxy solicitation by or on behalf of a person (other than the Board) or who has entered into an agreement to effect a Change in Control or expressed an intention to cause such a Change in Control).

 

  

4

  

 

    11.  Coordination with Plan.  Capitalized terms used in this Agreement but not otherwise defined shall have the meanings given to them in the Plan.  In the event of any inconsistency between the terms and provisions of this Agreement and the terms and provisions of the Plan, the terms and provisions of the Plan shall control.

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

USA TRUCK, INC.

 

By:____________________________________

John M. Simone

President and Chief Executive Officer

 

 

PARTICIPANT:___________________________

 

 

_______________________________________

      Participant Signature

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}]]