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      BONUS

         RESTRICTED STOCK AGREEMENT

          

          

         This Bonus Restricted Stock Agreement is dated as of the 17th day of February, 2010, between FBL Financial Group, Inc., an Iowa corporation (the “Company”), and James E. Hohmann (“Employee”).

          

         1.    Award.

          

         (a)    Shares. Pursuant to the FBL Financial Group, Inc. 2006 Class A Common Stock Compensation Plan (the “Plan”), 102,092 shares (the “Restricted Shares”) of the Company's common stock, without par value (“Stock”), shall be issued as hereinafter provided in Employee's name subject to certain restrictions thereon.

          

         (b)    Issuance of Restricted Shares. The Restricted Shares shall be issued upon acceptance hereof by Employee, subject to satisfaction of the conditions of this Agreement. 

          

         (c)    Plan Incorporated. Employee acknowledges receipt of a copy of the Plan, and agrees that this award of Restricted Shares shall be subject to all of the terms and conditions set forth in the Plan (except as limited by provisions of this Agreement), including future amendments thereto, if any, pursuant to the terms thereof, which Plan is incorporated herein by reference as a part of this Agreement.

          

         (d)    Policy Incorporated. Employee acknowledges receipt of a copy of Exhibit A, the Impact of Restatement of Financial Statements Upon Awards Policy (“Clawback Policy”) adopted by the Management Development and Compensation Committee of the Board of Directors and agrees that this award of Restricted Shares shall be subject to all of the terms and conditions set forth in the Clawback Policy, including future amendments thereto, if any, which Clawback Policy is incorporated herein by reference as part of this Agreement.

          

         (e)    Additional Definitions

         -.

          

         (i) Good Reason.     “Good Reason” means one or more of the following conditions arising without the consent of the Employee:

          

         (1)    A material diminution in the Employee's authority, duties, or responsibilities of the Employee;

          

         (2)    A material diminution in the Employee's base compensation;

          

         (3)    A material diminution in the authority, duties, or responsibilities of the corporate officer or employee to whom the Employee is required to report, including a requirement that the Employee report to a corporate officer or employee instead of reporting directly to the Board; 

          

         (4)    A material diminution in the budget over which the Employee retains authority; 

          

         (5)    A material change in the geographic location at which the Employee must perform the services Employee provides to the Company; or

         
             

            

             
 
         

         (6)    Any other action or inaction that constitutes a material breach by the Company of any agreement under which the Employee provides services.

          

         (ii) Cause. “Cause” means:

          

         (1)    the Employee's willful and continued failure to substantially perform the Employee's duties with the Company or its Affiliates (other than any such failure resulting from the Employee's incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the Employee by the Company which specifically identifies the manner in which the Company believes that the Employee has not substantially performed his or her duties; 

          

         (2)    the final conviction of the Employee of, or an entering of a guilty plea or a plea of no contest by the Employee to, a felony; or 

          

         (3)    the willful engaging by the Employee in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company. 

          

         For purposes of this definition, no act or failure to act on the part of the Employee shall be considered “willful” unless it is done, or omitted to be done, by the Employee in bad faith or without a reasonable belief that the action or omission was in the best interests of the Company or its Affiliates. Any act, or failure to act, based on authority given pursuant to a resolution duly adopted by the Board, the instructions of a more senior officer of the Company or the advice of counsel to the Company or its Affiliates will be conclusively presumed to be done, or omitted to be done, by the Employee in good faith and in the best interests of the Company and its Affiliates.

          

         2.    Restricted Shares. Employee hereby accepts the Restricted Shares when issued and agrees with respect thereto as follows:

          

         (a)    Forfeiture Restrictions. The Restricted Shares may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of to the extent then subject to the Forfeiture Restrictions (as hereinafter defined), and in the event of termination of Employee's employment with the Company or employing subsidiary for any reason other than those listed in paragraph 2(b)(vi), Employee shall, for no consideration, forfeit to the Company all Restricted Shares to the extent then subject to the Forfeiture Restrictions. The prohibition against transfer and the obligation to forfeit and surrender Restricted Shares to the Company upon termination of employment are herein referred to as “Forfeiture Restrictions.” The Forfeiture Restrictions shall be binding upon and enforceable against any transferee of Restricted Shares.

          

         (b)    Lapse of Forfeiture Restrictions. The Forfeiture Restrictions shall lapse as to the Restricted Shares on the Lapse Date in accordance with the following schedule:

          

         (i)    Lapse Date:

          

         The Forfeiture Restrictions shall lapse on the date the Management Development and Compensation Committee (hereinafter “Committee”) certifies the extent to which the performance goals after five years performance have been attained, which certification shall be made no later than March 1, 2015 (hereinafter “Lapse Period”).

         
             

            

             
 
         

         (ii)    Restricted Stock Agreement Book Value (RSABV)

         RSABV means the percentage increase in book value per common share excluding accumulated other comprehensive income (loss) (AOCI) from January 1, 2010 to December 31, 2014. Dividends paid during the five years will be added back to the December 31, 2014 book value to determine the percentage increase. 

          

         (iii)    Performance Goals

          

         Lapse of Forfeiture Restrictions on the Restricted Stock Award is governed entirely by the RSABV goals which follow.

          

         Threshold RSABV goal:         60 % growth from January 1, 2010 to December 31, 2014

         Maximum RSABV goal:        65 % growth from January 1, 2010 to December 31, 2014

          

         (iv)    Percentage of Number of Restricted Shares Awarded Pursuant to RSABV Goals to Which Forfeiture Restrictions Lapse:

          

         If RSABV equals or exceeds the maximum RSABV goal:         100%

         If RSABV equals the threshold goal:                      50%

         If RSABV is less than the threshold RSABV goal:              0%

          

         If the RSABV percentage for the five years ended December 31, 2014 is higher than the threshold RSABV goal of 60 % (“X”) but lower than the maximum RSABV goal of 65 % (“Y”), the percentage of the Restricted Shares to which the Forfeiture Restrictions lapse will be calculated according to the following formula:

          

         (RSABV - X)/(Y - X)/2 + 50%

          

          

         (v)    RSABV Computation:

          

         The parties agree that based on the book value of the company at December 31, 2009, of $32.38, the 60% threshold growth and 65% maximum growth in book value per share over the measuring period would result in the following book value per share at the indicated dates:

          

         
            	
                     Date

                  	
                     60% growth

                  	
                     65% growth

                  
	
                     December 31, 2010

                  	
                     $

                  	
                     35.57

                  	
                      

                  	
                     $

                  	
                     35.79

                  	
                      

                  
	
                     December 31, 2011

                  	
                     $

                  	
                     39.08

                  	
                      

                  	
                     $

                  	
                     39.56

                  	
                      

                  
	
                     December 31, 2012

                  	
                     $

                  	
                     42.93

                  	
                      

                  	
                     $

                  	
                     43.73

                  	
                      

                  
	
                     December 31, 2013

                  	
                     $

                  	
                     47.16

                  	
                      

                  	
                     $

                  	
                     48.34

                  	
                      

                  
	
                     December 31, 2014

                  	
                     $

                  	
                     51.81

                  	
                      

                  	
                     $

                  	
                     53.43

                  	
                      

                  

         

          

         For purposes of determining book value of the company's Class A Common Shares during the Lapse Period, the following shall apply:

          

         (a)    AOCI shall be excluded;

          

         (b)    Any dividends paid during the calendar years included in the Lapse Period shall be added to the actual book value.

          

         (c)    Book value shall be calculated using generally accepted accounting principles (“GAAP”) 

          

         

          

         materially consistent with those used to determine book value as of December 31, 2009.

          

         (vi)    Effect of Termination of Employment:

          

         Notwithstanding the foregoing: 

          

         (A) On the occurrence of both a Change in Control (as such term is defined in the Plan) and termination of Employee's employment before the Lapse Date by the Company other than for Cause or by the Employee for Good Reason, the Forfeiture Restriction shall immediately lapse as to a prorata portion of the Restricted Shares, where the prorata portion shall be measured by months elapsed from the date of this Agreement to the date of the Change in Control and termination of Employee's employment other than for Cause or by the Employee for Good Reason, as compared to 60 (sixty) months. The prorata lapse provision of this subparagraph (A) shall only apply if the book value of the Company's Class A Common Shares had increased to an amount equal to the value noted in subparagraph 2(b)(v) for 60% growth on the December 31st immediately preceding the Change in Control, or the transaction resulting in the Change in Control resulted in a valuation by merger, sale, or exchange, of the Company's Class A Common Shares in an amount equal or greater to the value noted in subparagraph 2(b)(v) for 60% growth at the time of the transaction.

          

         (B) If Employee's employment with the Company is terminated before the Lapse Date by reason of death, the Forfeiture Restrictions shall immediately lapse as to a prorata portion of the Restricted Shares, where the prorata portion shall be measured by months elapsed from the date of this Agreement to the date of death, as compared to 60 months. The prorata lapse provisions of this subparagraph B shall only apply if the book value of the Company's Class A Common shares had increased to an amount equal to the value noted in subparagraph 2(b)(v) for 60% growth on the December 31st immediately preceding employee's death.

          

         (C) If Employee's employment with the Company is terminated before the Lapse Date by reason of disability (as determined by the Company), the Forfeiture Restrictions shall lapse on the Lapse Date as to a prorata portion of the Restricted Shares which would be available to Employee on the Lapse Date (according to the schedule above) had Employee not terminated employment. The prorata portion shall be measured by months elapsed from the date of this Agreement to termination of employment, as compared to 60 months. The prorata lapse provisions of this subparagraph C shall only apply if the book value of the Company's Class A Common shares had increased to an amount equal to the value noted in subparagraph 2(b)(v) for 60% growth on the December 31st immediately preceding employee's disability.

          

         (D) In the event Employee's employment is terminated for any other reason, the Committee or its delegate, as appropriate, may, in the Committee's or such delegate's sole discretion, approve the lapse of Forfeiture Restrictions as to any or all Restricted Shares still subject to such restrictions, such lapse to be effective on the Lapse Date.

          

         (E) If Employee is a “covered employee” as defined in Internal Revenue Code Section 162(m), the provisions of paragraph (D), above, shall not apply to this Agreement.

          

         (c)    Dividend Restriction. Payment of any dividends on the Restricted Shares is contingent upon meeting the performance and service requirements contained in this Agreement, and such dividends shall be retained by the Company and not paid to Employee until the Lapse Date, and then only in respect to shares which have not been forfeited.

          

         (d)    Certificates. A certificate evidencing the Restricted Shares shall be issued by the Company in Employee's name, or at the option of the Company, in the name of a nominee of the Company, pursuant to which Employee shall have voting rights and such rights to dividends 

          

         

          

         as are described in paragraph 2(c), above. As required by the Plan, the certificate shall bear a legend reading as follows: “The sale or other transfer of the Shares of Stock represented by this certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer as set forth in the FBL Financial Group, Inc. 2006 Class A Common Stock Compensation Plan and in a Bonus Restricted Stock Agreement dated February 17, 2010. A copy of the Plan and such Restricted Stock Agreement may be obtained from the Secretary of FBL Financial Group, Inc.” The Company may cause the certificate to be delivered upon issuance to the Secretary of the Company or to such other depository as may be designated by the Company as a depository for safekeeping until the forfeiture occurs or the Forfeiture Restrictions lapse pursuant to the terms of the Plan and this award. Alternatively, the Company may maintain the shares in an uncertificated record at the offices of its stock transfer agent. Upon request of the Committee or its delegate, Employee shall deliver to the Company a stock power, endorsed in blank, relating to the Restricted Shares then subject to the Forfeiture Restrictions. Upon the lapse of the Forfeiture Restrictions without forfeiture, the Company shall cause a new certificate or certificates to be issued without legend in the name of Employee for the shares upon which Forfeiture Restrictions lapsed, or at the election of Employee, cause uncertificated shares to be transferred to an account for the benefit of Employee at such bank or brokerage firm as Employee directs. Notwithstanding any other provisions of this Agreement, the issuance or delivery of any shares of Stock (whether subject to restrictions or unrestricted) may be postponed for such period as may be required to comply with applicable requirements of any national securities exchange or any requirements under any law or regulation applicable to the issuance or delivery of such shares. The Company shall not be obligated to issue or deliver any shares of Stock if the issuance or delivery thereof shall constitute a violation of any provision of any law or of any regulation of any governmental authority or any national securities exchange.

          

         3.    Withholding of Tax. To the extent that the receipt of the Restricted Shares, dividends paid upon the Restricted Shares or the lapse of any Forfeiture Restrictions results in compensation income to Employee for federal or state income tax purposes, Employee shall deliver to the Company at the time of such receipt or lapse, as the case may be, such amount of money or shares of unrestricted Stock as the Company may require to meet its withholding obligation under applicable tax laws or regulations, and, if Employee fails to do so, the Company is authorized to withhold from any cash or Stock remuneration then or thereafter payable to Employee any tax required to be withheld by reason of such resulting compensation income.

          

         4.    Status of Stock. Employee agrees that the Restricted Shares will not be sold or otherwise disposed of in any manner which would constitute a violation of any applicable federal or state securities laws. Employee also agrees (i) that the certificates representing the Restricted Shares may bear such legend or legends as the Company deems appropriate in order to assure compliance with applicable securities laws, (ii) that the Company may refuse to register the transfer of the Restricted Shares on the stock transfer records of the Company if such proposed transfer would be in the opinion of counsel satisfactory to the Company constitute a violation of any applicable securities law and (iii) that the Company may give related instructions to its transfer agent, if any, to stop registration of the transfer of the Restricted Shares.

          

         5.    Employment Relationship. For purposes of this Agreement, Employee shall be considered to be in the employment of the Company as long as Employee remains an employee of either the Company, any successor corporation or a parent or subsidiary corporation (as defined in section 424 of the Code) of the Company or any successor corporation. Any question as to whether and when there has been a termination of such employment, and the cause of such termination, shall be determined by the Committee, or its delegate, as appropriate, and its determination shall be final.

          

         6.    Committee's Powers. No provision contained in this Agreement shall in any way terminate, modify or alter, or be construed or interpreted as terminating, modifying or altering any of the powers, rights or authority vested in the Committee or, to the extent delegated, in its delegate pursuant 

          

         

          

         to the terms of the Plan or resolutions adopted in furtherance of the Plan, including, without limitation, the right to make certain determinations and elections with respect to the Restricted Shares. By execution of this Agreement, Company affirms that the Committee has waived the provisions of Section 9(i) of the Plan which would otherwise require automatic forfeiture of all shares of Restricted Stock still subject to restrictions upon termination of Employee's employment, and has substituted therefore the provisions stated in Paragraphs 2(a) and 2(b), above.

          

         7.    Binding Effect. This Agreement shall be binding upon and inure to the benefit of any successors to the Company and all persons lawfully claiming under Employee.

          

         8.    Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Iowa

          

         IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer thereunto duly authorized, and Employee has executed this Agreement, with an effective date of February 17, 2010.

          

          

                                 

         FBL FINANCIAL GROUP, INC.

          

          

         /s/ CRAIG LANG

         By:____________________________

          

         Craig Lang, Chairman

         (name and title)        

          

          

         /s/ JAMES E. HOHMANN

         _______________________________

         James E. Hohmann, “Employee”

          

         Please Initial Appropriate Item (One of the lines must be initialed):

          

          X     I do not desire the alternative tax treatment provided for in the Internal Revenue Code 

         Section 83(b).

              I do desire the alternative tax treatment provided for in Internal Revenue Code Section 83(b) and desire that forms for such purpose be forwarded to me.

          

         ·    I acknowledge that the Company has suggested that before this line is initialed that I check with a tax consultant of my choice.

          

          

         

          

         Exhibit A

          

         Policy: Impact of Restatement of Financial Statements Upon Awards. (Adopted by Management Development and Compensation Committee December 2006.)

          

         If any of the Company's financial statements are restated because of errors, omissions or fraud, the Committee may (in its sole discretion, but acting in good faith) direct that the Company recover all or a portion of awards of bonuses, and grants of options and restricted stock options (together, “awards”) with respect to any fiscal year of the Company the financial results of which are negatively affected by such restatement. Recoveries may be made from all officers in the Section 16 reporting group regardless of fault, and from any other persons whom the Committee believes were involved in misconduct causing the required restatement (together, “Participants”). Misconduct involves more than mere negligent job performance. The amount to be recovered from the Participant shall be the amount by which awards exceeded the amount that would have been payable to the Participant had the financial statements been initially filed as restated, or any greater or lesser amount (including, but not limited to, the entire award) that the Committee shall determine. The Committee shall determine whether the Company shall effect any such recovery (i) by seeking repayment from the Participant, (ii) by reducing (subject to applicable law and the terms and conditions of the applicable plan, program or arrangement) the amount that would otherwise be payable to the Participant under any compensatory plan, program or arrangement maintained by the Company or any of its affiliates, (iii) by withholding payment of future increases in compensation (including the payment of any discretionary bonus amount) or grants of compensatory awards that would otherwise have been made in accordance with the Company's otherwise applicable compensation practices, or (iv) by any combination of the foregoing. Provisions reflecting this policy shall be placed in all award grant instruments delivered to Participants.ex101.htm

Exhibit 10.1

Con-way Inc.

Executive Incentive Plan

(As AmendedJanuary 1, 2010)

  

  

  

  

Con-way Inc.

Executive Incentive Plan

(Effective January 1, 2010)

Table of Contents

Page

	
1.
	
Purpose; EIP; Administration; Claims
	1

	
2.
	
Definitions
	1

	
3.
	
Eligibility
	4

	
4.
	
Establishment of Awards
	4

	
5.
	
Vesting
	6

	
6.
	
Amount of Award Payout
	7

	
7.
	
Payment of Award
	7

	
8.
	
Amendment; Termination
	9

	
9.
	
Code Section 409A Compliance
	9

	
8.
	
Amendment; Termination
	9

  

  

  

  

1)           Purpose; EIP; Administration; Claims.

	
  
	
(a)
	
Purpose.  This purpose of this Con-way Inc. Executive Incentive Plan (the “XIP”) is to advance the interests of the Company and its shareholders by providing certain of its Executives with annual incentive compensation which is tied to the achievement of pre-established and objective performance goals.

	
  
	
(b)
	
The EIP.  Section 12 of the EIP (defined below) authorizes the Committee to grant Awards pursuant to the Annual Incentive Compensation Program in the form of Other Cash-Based Awards, as deemed by the Committee to be consistent with the purposes of the EIP. The XIP applies to Executives selected as Participants and, for those Executives, the XIP implements
Section 12 of the EIP. The XIP is subject to the applicable terms and provisions of the EIP, as amended from time to time, including without limitation (i) Section 3 (Administration), (ii) Section 4 (Eligibility), (iii) Section 12 (Annual Incentive Compensation Program), (iv) Section 13 (Other Stock-Based or Cash-Based Awards), (v) Section 15 (Claims Procedures), and (vi) Section 16 (General Provisions), but excluding Section 14 (Change in Control Provisions).  Terms used herein without definition shall
have the meanings given to them in the EIP.

	
  
	
(c)
	
Administration.  The XIP is administered by the Committee, pursuant to authority specified in Section 3 of the EIP.  The Committee has delegated certain administrative authority to the CEO, as described in this XIP.

	
  
	
(d)
	
Claims.  In the event that any person believes that she or he is not receiving the full benefits to which she or he is entitled under the XIP, such person may file a claim pursuant to the claims procedures set forth in Section 15 of the EIP.

	
2)

	
Definitions.

For purposes of the XIP, the following terms shall be defined as set forth below:

 

“Active Regular Employee” means an employee who (i) is actively employed as an Employee by the Company, a Business Unit or an Affiliate or (ii) is on an authorized medical, disability or other leave from the Company, a Business Unit or an Affiliate.

 

“Affiliate” is defined in Section 2 of the EIP and, for purposes of this XIP, includes a Subsidiary as defined in Section 2 of the EIP.

 

“Annual Compensation” means, for any Participant in any calendar year, the base salary paid during the calendar year (or portion thereof) in which the Participant was a participant in this XIP (as included in the employee’s W-2 for that calendar year or,
in the case of international employees, the required tax year reporting documentation). Annual Compensation does not include (i) any

 

  

  

  

  

base salary paid during any portion of the calendar year (if any) in which Participant was not a participant in this XIP or (ii) any other form of compensation, including, for example, special bonus payments or any other special compensation, payments under short and long term disability plans, in-service withdrawals of deferred compensation,
or any other compensation.  To the extent that a Participant elects to defer any portion of annual base salary, Annual Compensation is computed without regard to such deferral.

 

“Award” is defined in Section 2 of the EIP but for purposes of this XIP shall be limited to an Other Cash-Based Award granted hereunder.

 

“Award Payout” means the amount, if any, that is paid to a Participant as determined pursuant to Section 6 of this XIP.

 

“Board” is defined in Section 2 of the EIP.

 

“Business Unit” means (i) the Company, (ii) an Affiliate, and (iii) a division of the Company or an Affiliate. The term “Business Unit” is also defined in Section 2 of the EIP, but that definition does not apply to the XIP.

 

“CEO” means the Company’s Chief Executive Officer.

 

“Committee” is defined in Section 2 of the EIP.

 

“Company” means Con-way Inc., a corporation organized under the laws of the State of Delaware, or any successor corporation.

 

“Covered Employee” is defined in Section 2 of the EIP.

 

“Designated Executives” means the following Executives: the CEO, the Section 16 Officers and each non-Section 16 Officer who reports directly to the CEO.

 

“Effective Date” is defined in Section 10 of this XIP.

 

“EIP” means the shareholder-approved Con-way Inc. 2006 Equity and Incentive Plan, as amended from time to time, or any successor plan.

 

“Employee” means any employee of the Company, a Business Unit or an Affiliate. Under no circumstances shall an individual who performs services for the Company, a Business Unit or an Affiliate, but who is not classified on the payroll of such entity as an employee
(for example, an individual performing services for the Company, a Business Unit or an Affiliate pursuant to a leasing or consulting agreement), be treated as an Employee even if such individual qualifies as an “employee” of such entity by virtue of common law principles or the leased employee rules under Code section 414(n).  Further, if an individual performing services for the Company, a Business Unit or an Affiliate is retroactively classified as an employee of such entity for any reason
(whether pursuant to a court order, settlement negotiation, arbitration, mediation, government agency reclassification or otherwise), such reclassified individual

 

  

  

  

  

shall not be treated as an Employee for purposes of the XIP for any period prior to the actual date (and not the effective date) of such reclassification.

 

“Employer” means, as to any Participant, the Company or Affiliate of the Company that employs the Participant.

 

“Executive” means an Employee who occupies a position that has been classified within the Company’s executive-level salary grade structure.

 

“Incentive Performance Goal” means a Performance Goal established by the Committee to apply to an Award, pursuant to Section 4 of this XIP. .

 

 “Maximum Payment Goal” means the amount or percentage of an Incentive Performance Goal that, with respect to that Incentive Performance Goal, must be achieved to produce an Award Payout equal to 200% of the Target Payment Goal.

 

“Minimum Payment Goal” means the amount or percentage of an Incentive Performance Goal that, with respect to that Incentive Performance Goal,  must be achieved in order to have the first dollar of an Award Payout become payable.

 

“Participant” means an Executive who, pursuant to Section 3 of this XIP, has been designated by the Committee or its delegate to receive an Award with respect to a given calendar year. Participants are also Grantees, as that term is defined in Section 2 of the
EIP.

 

“Participation Percentage” means the percentage of Annual Compensation assigned to a Participant for purposes of this XIP, pursuant to Section 4.

 

“Performance Goal” has the meaning given to that term in the EIP.

 

“Plan Administrator” means the Committee or any person or persons to whom the Committee delegates its authority or any portion thereof.

 

“Section 16 Officer” means a Company officer who is required to comply with Section 16 of the Securities Exchange Act of 1934, as of the relevant date specified in this XIP.

 

“Target Payment Goal” means the amount or percentage of an Incentive Performance Goal that, with respect to that Incentive Performance Goal, must be achieved to have an Award Payout equal to a Participant’s Annual Compensation times the Participant’s
Participation Percentage.

 

“Terminated for Cause” means, with respect to any Participant, that the Participant’s employment has been terminated for cause as memorialized in the Company’s human resources information system or other applicable employee recordkeeping system.

  

  

  

  

“XIP” means this Con-way Inc. Executive Incentive Plan, as amended from time to time.

 

	
3)

	
Eligibility.

	
  
	
(a)
	
Designation.  Unless the Committee determines otherwise, all Executives employed by the Company and its Business Units and Affiliates as of January 1 of a calendar year (other than Executives who receive an award under the EICP for that calendar year) shall be eligible to participate in the XIP for that calendar year. In addition, all Executive-level
Employees who first become Executives, through hire or promotion, during a calendar year, and executives who transfer between Business Units as contemplated by Section 4 of this XIP, shall be eligible to participate in the XIP unless the CEO determines otherwise. The Company shall maintain in its records a list of Participants designated by the Committee, or by the CEO, for each Business Unit for each calendar year.

 

	
  
	
(b)
	
Other Eligibility Requirements; Commencement and Cessation of Participation. Unless otherwise determined by the Plan Administrator, Participants must be Active Regular Employees.  Executives eligible to participate in the XIP as of January 1 of a calendar year shall commence participation on that date. Employees who first become Executives, through
hire or promotion, during a calendar year, and who as a result of such hire or promotion become eligible to participate in the XIP, shall commence participation on the date that they become an Executive. Except as otherwise provided in Section 5, a Participant who ceases to serve as an Executive during a calendar year shall no longer be eligible to participate in this XIP effective  on the date that he or she ceases to serve as an Executive.

 

	
4)

	
Establishment of Awards.

 

	
  
	
(a)
	
Awards.  For each calendar year during the term of this XIP, each Executive who is a Participant during that calendar year shall receive an Award hereunder, on the terms and subject to the conditions hereof.

 

	
  
	
(b)
	
Incentive Performance Goals. For each calendar year, and not later than ninety (90) days following the commencement of that calendar year, the Committee shall, for each of the Participants who are Designated Executives during that calendar year, and the CEO shall, for each of the other Participants, establish one or more Incentive Performance Goal(s) to apply
to the Participant’s Award.  In establishing the Participant’s Award, the Committee or CEO, as the case may be, shall: (A) assign one or more Incentive Performance Goals to apply to the Participant’s Award, (B) establish a percentage goal weight for each assigned Incentive Performance Goal and (C) designate whether the Participant's Award Payout is to be based in whole or in part upon the performance of the Business Unit in which the Participant is employed or one or more other Business
Units. The terms and conditions applicable to Participants for a

  

  

  

  

	
  
	
calendar year need not be identical, even within Business Units.  The percentage goal weights for the Incentive Performance Goals assigned to a Participant shall add to 100%.

Incentive Performance Goals established under this XIP may include any goal that falls within the definition of Performance Goal in the EIP. Subject to the requirement set forth in the preceding sentence, possible Incentive Performance Goals may include, but are not limited to, the following:

 

	
·  
	
earnings before interest and taxes

	
·  
	
other profit measures

	
·  
	
cash flow

	
·  
	
sales or revenues

	
·  
	
return on equity, assets, capital or investment

	
·  
	
earnings or book value per share

	
·  
	
operating or administrative expense in the absolute or as a percent of revenue

	
·  
	
working capital

	
·  
	
accounts receivable goal

	
·  
	
days sales outstanding

	
·  
	
(gross) contribution margin

	
·  
	
safety (accidents)

	
·  
	
operational efficiency factors (e.g., shipments per paid claim, dollars per paid claim, reship percentage, trailer efficiency, fuel efficiency, etc.)

Each Incentive Performance Goal may be determined with respect to the Company or a Business Unit on a consolidated or unconsolidated basis.

 

	
  
	
(c)
	
Participation Percentage.  Unless otherwise determined by the Plan Administrator, each Participant’s Participation Percentage for each calendar year shall be the Participation Percentage applicable to Executives in the executive level salary grade to which the Participant is assigned at the time the Plan Administrator establishes Incentive Performance
Goals for the calendar year. Executives who become Participants in this XIP during the year as provided in Section 3 shall have the same Participation Percentage as other Participants in the same

  

  

  

  

	
  
	
salary grade level.   For Participants who are promoted during a calendar year to a salary grade which has been assigned a higher or lower Participation Percentage, such Participant’s Award Payout shall be determined based on the respective amounts of Annual Compensation earned while each Participation Percentage was applicable to such Participant.

	
  
	
(d)
	
Percentage Achievement. For each calendar year, for each Incentive Performance Goal, the Plan Administrator shall set a Minimum Payment Goal, a Target Payment Goal, and a Maximum Payment Goal and may set intermediate levels and assign intermediate percentage factors to such levels. If the achievement of that Incentive Performance Goal is at or below the Minimum
Payment Goal, the percentage achievement shall be zero, and no Award Payout shall be earned or paid with respect to that Incentive Performance Goal. If the achievement of that Incentive Performance Goal is between levels, the percentage achievement shall be earned ratably, determined by straight line interpolation, for accomplishment between the next lower level and the next higher level. If the achievement is above the Maximum Payment Goal, the percentage achievement shall equal 200%. In no event shall any Participant’s
total Award Payout (based on all applicable Incentive Performance Goals),  exceed an amount equal to 200% of the product of the Participant’s Annual Compensation times the Participant’s Participation Percentage.

 

	
  
	
(e)
	
Transfers between Business Units Subject to XIP. If a Participant transfers from one Business Unit to another Business Unit during a calendar year, the Participant’s Award Payout shall be based in part on the performance of each Business Unit that employs the Participant during that calendar year. The Award Payout shall be determined by taking into account,
for each such Business Unit,  (i) the Annual Compensation earned while employed by that Business Unit; (ii) the achievement of the Incentive Performance Goals applicable to Awards made to Executives employed by that Business Unit, and (iii) the Participation Percentage applicable to Participant while employed by the Business Unit, and the total Award Payout shall be equal to the sum of the Award Payouts determined with respect to each Business Unit..

 

5)           Vesting.

Subject to the following exceptions, no Participant shall receive an Award Payout under the XIP unless on the date that the payment is actually made the Participant is then currently (i) employed by the Company or an Affiliate and (ii) a Participant.

 

	
  
	
(a)
	
Exception 1. A Participant who is employed by the Company or an Affiliate through December 31 of a calendar year but who subsequently leaves that employment or otherwise becomes ineligible after December 31 but before the sole or final payment is made relating to that calendar year, as provided in Section 7, shall be entitled to receive an Award Payout with
respect to such calendar year, unless the Participant is Terminated for Cause prior to the date that Award Payouts are made to Participants..

 

	
  
	
(b)
	
Exception 2. A payment based on the Annual Compensation earned while a Participant was eligible to participate in the calendar year will be made, as provided in Section 7, to (i) a Participant who terminates their employment after reaching age 55 with at least 10 years of service (which shall be considered “retirement” for purposes of this XIP),
(ii) the heirs, legatees, administrators or executors of a Participant who dies during the calendar year and who, at the time of death, was a Participant, (iii) a Participant who is placed on an approved leave during the calendar year, and (iv) a Participant who ceases to serve as an Executive during the calendar year but remains an Active Regular Employee; in each case unless the Participant is Terminated for Cause prior to the date that Award Payouts are made to Participants.

 

In case of doubt, the Plan Administrator shall determine whether or not cause exists, in its sole discretion, using whatever standard it deems appropriate.

 

6)           Amount of Award Payout.

Award Payouts.  Subject to the other provisions of this XIP, a Participant’s Award Payout for a calendar year shall be equal to the sum of the products of, for each assigned Incentive Performance Goal:

 

(a)           the Participant’s Annual Compensation, multiplied by

 

(b)           the Participant’s Participation Percentage, multiplied by

 

	
  
	
(c)
	
the percentage achievement of the Incentive Performance Goal, multiplied by

 

(d)           the percentage goal weight for the Incentive Performance Goal.

 

	
7)

	
Payment of Award.

 

	
  
	
(a)
	
Payment. Subject to the other provisions of this Section 7, the Award Payout with respect to a calendar year shall be paid in cash to each Participant as soon as administratively practicable following completion of the annual audit of the Company’s financial statements for that calendar year by the Company’s outside auditors and, for Participants
who are Covered Employees, after written certification by the Committee that the Incentive Performance Goal and other material terms of the Award for the calendar year have been satisfied, and the amount of the Award Payout has been finally determined, but in no event later than March 15 of the following calendar year. Participants who retire during the calendar year and who, pursuant to Section 5 above, are entitled to receive Award Payouts for that calendar year will receive the payouts at the same time as
other Participants receive their Award Payouts.

 

With respect to the foregoing Committee certification requirement, approved written minutes of the Committee meeting in which the certification is made shall be treated as written certification.

 

	
  
	
(b)
	
Death. In the event of a Participant's death, the Award Payout payable in paragraph (a) above with respect to a Participant for a calendar year shall be paid to the Participant's Beneficiary.  "Beneficiary" means the person or persons designated by the Participant pursuant to a beneficiary designation form properly completed and delivered to the Senior
Vice President of Human Resources of the Company.  If no such beneficiary designation form is in effect, then the Beneficiary shall be the beneficiary designated by Participant under the Con-way Retirement Savings Plan.   In the event the Participant fails to designate a Beneficiary under such plan, then the Participant’s Beneficiary will be the Participant’s estate.

 

	
  
	
(c)
	
Adjustments. In the event that the Committee determines that (i) the Award Payout payable to one or more Participants for a calendar year has been or is likely to be materially affected as a result of events or circumstances that were unanticipated at the beginning of the calendar year and/or extraordinary in nature and (ii) the goals of the XIP would be frustrated
if adjustments were not made to such Award Payouts, then the Committee, in its sole discretion, may make such adjustments applicable to the Performance Goals or to such Award Payouts as it deems appropriate, which adjustments may have the effect of increasing or decreasing the amount of the Award Payouts otherwise payable pursuant to the XIP; provided, however, that if the Committee intends that the deduction for payment of an Award to a Covered
Employee not be limited or eliminated by application of Section 162(m) of the Code, then the Committee shall not make any such adjustment which would increase the payment with respect to such Award unless such adjustment is not inconsistent with Section 162(m) of the Code.

	
  
	
 (d)
	
Clawback Provision.  In the event that the financial statements of the Company or a Business Unit are restated following the payment of an Award and that restatement would have changed the Award Payout, the following repayment terms apply to those executives who were Section 16 Officers at the time the payment was made:

 

	
  
	
(i)
	
In the event a financial statement restatement is required within one year following a payment as a result of errors or omissions, the executives will be required to repay any amounts that are deemed to have been overpaid based on that restatement.

 

	
  
	
(ii)
	
In the event a financial statement restatement is required at any time as a result of fraudulent activities, the executives will be required to repay any amounts that are deemed to have been overpaid based on that restatement for an unlimited period of time.

 

8)           Amendment; Termination.

	
  
	
(a)
	
Amendment and Termination. Subject to and consistent with the requirements of Section 12 of the EIP, the Committee may amend the XIP at any time by notice to the Participants. No amendment shall reduce a Participant’s right to receive Award Payout finally awarded but unpaid to such Participant at the time of amendment or termination.  No Award
shall be granted after the XIP’s termination.

 

	
  
	
 (b)
	
Automatic Termination. The XIP will automatically terminate when the EIP expires or is terminated, and the Committee may terminate the XIP at any earlier time.  Notwithstanding the termination of the XIP, the Award Payouts for each calendar year then in progress shall be calculated, and be payable, following the completion of each such calendar year,
in accordance with the provisions of Sections 5 and 6.

 

	
9)

	
Code Section 409A Compliance. It is intended that the Awards are either exempt from the requirements of Code section 409A and regulatory guidance issued thereunder or will satisfy such requirements (in form and operation) so that Award Payouts shall not be included in income under Code section 409A and
the XIP will be interpreted and construed in a manner that is consistent with such intent.

 

	
10)
	
Effective Date. The effective date of this XIP (“Effective Date”) is January 1, 2009.

 

Con-way Inc.

By:                                                                                

Jennifer W. Pileggi

Executive Vice President, General Counsel and Secretary

2010 Con-way Inc. Executive Incentive Plan

Executed: April 26, 2010

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