ARKANSAS BEST CORPORATION RESTRICTED STOCK UNIT AWARD AGREEMENT (Non-Employee Directors — with deferral feature)
EXHIBIT 10.1
ARKANSAS BEST CORPORATION
RESTRICTED STOCK UNIT AWARD AGREEMENT
(Non-Employee Directors — with deferral feature)
RESTRICTED STOCK UNIT AWARD AGREEMENT
(Non-Employee Directors — with deferral feature)
This Restricted Stock Unit Award Agreement (this “Agreement”) is dated as of this ___
day of , 20 ___ (the “Grant Date”), and is between Arkansas
Best Corporation (the “Company”) and ___ (“Participant”).
WHEREAS, the Company, by action of the Board and approval of its shareholders established the
Arkansas Best Corporation 2005 Ownership Incentive Plan (the “Plan”);
WHEREAS, Participant is a member of the Board and is not employed by the Company or a
Subsidiary;
WHEREAS, the Company desires to encourage Participant to own Common Stock for the purposes
stated in Section 1 of the Plan; and
WHEREAS, Participant and the Company have entered into this Agreement to govern the terms of
the Restricted Stock Unit Award (as defined below) granted to Participant by the Company.
NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree as follows:
1. Definitions
Defined terms in the Plan shall have the same meaning in this Agreement, except where the
context otherwise requires.
2. Grant of Restricted Stock Units
On the Grant Date, the Company hereby grants to Participant an Award of ___
Restricted Stock Units (the “Award”) in accordance with Section 9 of the Plan and subject
to the conditions set forth in this Agreement and the Plan (as amended from time to time). Each
Restricted Stock Unit subject to the Award represents the right to receive one Share (as adjusted
from time to time pursuant to Paragraph 14 hereof and/or Section 13 of the Plan) upon the terms and
subject to the conditions (including the vesting conditions) set forth in this Agreement and the
Plan. By accepting the Award, Participant irrevocably agrees on behalf of Participant and
Participant’s successors and permitted assigns to all of the terms and conditions of the Award as
set forth in or pursuant to this Agreement and the Plan (as such Plan may be amended from time to
time).
3. Vesting; Payment
(a) The Award shall not be vested as of the Grant Date and shall be forfeitable unless and
until otherwise vested pursuant to the terms of this Agreement. After the Grant Date, provided
that Participant remains a member of the Board continuously through the third anniversary of the
Grant Date (the “Normal Vesting Date”), the Award shall become vested with respect to 100%
of the Restricted Stock Units on such Normal Vesting Date. In addition, prior to the Normal
Vesting Date:
(i) the Award shall become vested with respect to 100% of the Restricted Stock Units on the
first date on or after the Grant Date that the Participant satisfies the requirements for Normal
Retirement, as defined below, whether or not actual retirement or separation from service has
occurred on that date.
(ii) on the first date on or after the Grant Date which Participant satisfies the requirements
for Early Retirement, as defined below, whether or not actual retirement or separation from service
has occurred on that date, the Award shall become vested with respect to the number of the
Restricted Stock Units subject to the Award multiplied by a fraction, (A) the numerator of which is
equal to the number of full months between such date and the Grant Date, and (B) the denominator of
which is 36, and the Award shall continue to vest on the fifteenth day of each subsequent month
until the first day of the month in which Normal Vesting Date occurs, with respect to an additional
one-thirty sixth of the number of Restricted Stock Units subject to the Award. In the month that
the Normal Vesting Date occurs, all Units not previously vested shall become vested on the date of
the month that corresponds to the Grant Date.
For purposes of this Agreement, the term “Normal Retirement” shall mean Participant’s
retirement from service as a member of the Board on or after age 65 so long as Participant has, as
of the date of such retirement, at least 5 years of service with the Company.
For purposes of this Agreement, the term “Early Retirement” shall mean Participant’s
retirement from service as a member of the Board with at least 3 years of Board member service with
the Company.
Restricted Stock Units that have vested and are no longer subject to a substantial risk of
forfeiture are referred to herein as “Vested Units.” Restricted Stock Units that are not vested
and generally remain subject to forfeiture are referred to herein as “Unvested Units.”
(b) Notwithstanding anything to the contrary in this Paragraph 3, the Award shall be subject
to earlier acceleration of vesting and/or forfeiture and transfer as provided in this Agreement and
the Plan.
(c) Subject to Paragraph 3(d) below, on the Normal Vesting Date, or, if earlier, the date
Participant’s service as a member of the Board terminates on or after he satisfied the requirements
for accelerated vesting by virtue of qualifying for Normal Retirement or Early Retirement,
Participant shall be entitled to receive one Share (subject to adjustment under Section 13 of the
Plan) for each Vested Unit in accordance with the terms and provisions of this Agreement and the
Plan. The Company will transfer such Shares to Participant or Participant’s
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designee subject to (i) Participant’s satisfaction of any required tax withholding obligations
as set forth in Paragraph 7 and (ii) the restrictions, if any, imposed by the Company under
Paragraph 15(f) or otherwise pursuant to the terms and conditions of the Plan and this Agreement.
(d) Subject to the satisfaction of all of the tax withholding obligations described in Section
7 below, Participant may irrevocably elect to defer the receipt of any Shares issuable pursuant to
Vested Units, other than Units distributable by reason of Sections 6(b) or (c), by submitting to
the Company an election to defer receipt in the form attached hereto as Exhibit A (the
“Deferral Election Form”). In the event Participant intends to defer the receipt of any
Shares, Participant must submit a proposed Deferral Election Form to the Company by December 31 of
the year preceding the year of the Grant Date of the Award. Notwithstanding anything herein to the
contrary, any Shares subject to Vested Units with respect to which a deferred payment date has been
elected shall be immediately distributed to Participant or Participant’s estate, as applicable,
upon Participant’s death or Disability (as defined below) or upon a “change in the ownership or
effective control” of the Company or in the “ownership of a substantial portion of the assets” of
the Company within the meanings ascribed to such terms in Treasury Department regulations or other
guidance issued under Section 409A of the Code. Participant hereby represents that he or she
understands the effect of any such deferral of the receipt of shares under relevant federal, state
and local tax laws.
(e) The date upon which Shares are to be issued under either Paragraph 3(c) or 3(d) is
referred to as the “Settlement Date.” The issuance of the Shares hereunder may be effected
by the issuance of a stock certificate, recording shares on the stock records of the Company or by
crediting shares in an account established on the Participant’s behalf with a brokerage firm or
other custodian, in each case as determined by the Company. Fractional shares will not be issued
pursuant to the Award.
Notwithstanding the above, prior to a Change in Control, (i) for administrative or other reasons,
the Company may from time to time temporarily suspend the issuance of Shares in respect of earned
Vested Units (whether or not deferred), (ii) the Company shall not be obligated to deliver any
Shares during any period when the Company determines that the delivery of Shares hereunder would
violate any federal, state or other applicable laws, and (iii) the date on which shares are issued
hereunder may include a delay in order to provide the Company such time as it determines
appropriate to address tax withholding and other administrative matters. Any delay pursuant to
3(e)(ii) shall only be until such time that the Company determines that the delivery of shares
would no longer violate any Federal, state or other applicable law. Notwithstanding the delay for
administrative or other reasons provided for in clauses (i) and (iii) above, in no event will such
issuance of shares be delayed beyond the later of the end of the calendar year in which the
Settlement Date occurs, or the 15th day of the third month after the end of such year,
or such other time as permitted under Section 409A of the Code and the regulations thereunder
without the imposition of any additional taxes under Section 409A of the Code.
Notwithstanding any other provision of the Plan, this Agreement or the Deferral Election Form
to the contrary, the Plan, this Agreement and the Deferral Election Form shall be construed or
deemed to be amended as necessary to comply with the requirements of Section 409A of the Code to
avoid the imposition of any additional or accelerated taxes or other penalties under Section 409A
of the Code. The Committee, in its sole discretion, shall determine the
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requirements of Section 409A of the Code applicable to the Plan, this Agreement and the
Deferral Election Form and shall interpret the terms of the Plan, this Agreement and the Deferral
Election Form consistently therewith. Under no circumstances, however, shall the Company have any
liability under the Plan, this Agreement or the Deferral Election Form for any taxes, penalties or
interest due on amounts paid or payable pursuant to the Plan, this Agreement or the Deferral
Election Form, including any taxes, penalties or interest imposed under Section 409A of the Code.
4. Status of Participant
Except as set forth in Paragraph 5, Participant shall have no rights as a stockholder
(including, without limitation, any voting rights with respect to the Shares subject to the Award)
with respect to either the Restricted Stock Units granted hereunder or the Shares underlying the
Restricted Stock Units, unless and until such Shares are issued in respect of Vested Units, and
then only to the extent of such issued Shares.
5. Dividend Equivalents
From and after the Grant Date and unless and until the Restricted Stock Units are forfeited or
otherwise transferred back to the Company, Participant will be entitled to receive cash payments
(subject to applicable withholding taxes) equal to all dividends and other distributions paid with
respect to the Shares subject to this Award, which dividend equivalent payments shall be paid on or
about the date such dividends or other distributions are payable to public stockholders, subject to
any applicable tax withholding requirements. Notwithstanding the foregoing, no such dividend
equivalents will be paid with respect to any dividend or other distribution declared by the Company
in connection with which the Award is adjusted pursuant to Paragraph 14 hereof and/or Section 13 of
the Plan. For avoidance of doubt, this ineligibility for a dividend equivalent will apply only to
the actual stock distribution in question (in the year of such distribution), and shall not
adversely affect the ability to receive subsequent regular cash dividends on the Award as so
adjusted.
6. Effect of Termination of Board Service; Change in Control
(a) General. Except as provided in Paragraphs 6(b) or (c), upon a termination of
Participant’s service as a member of the Board for any reason, the Unvested Units shall be
forfeited by Participant and cancelled and surrendered to the Company without payment of any
consideration to Participant.
(b) Death; Disability. Upon a termination of Participant’s service as a member of the
Board by reason of Participant’s death or Disability, all Unvested Units shall vest as of the date
of such termination of service and be issued as soon as administratively possible. For the
purposes of this Agreement, the term “Disability” shall mean a condition under which
Participant either (i) is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can be expected to result in death or can
be expected to last for a continuous period of not less than twelve months, or (ii) is, by reason
of any medically determinable physical or mental impairment that can be expected to result in death
or can be expected to last for a continuous period of not less than twelve months, receiving
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income replacement benefits for a period of not less than three months under an accident and
health plan.
(c) Change in Control. All Unvested Units shall vest as of the date a Change in
Control occurs and be issued as soon as administratively possible so long as with respect to any
amounts that the Company determines to be deferred compensation within the meaning of Section 409A
of the Code, such Change in Control qualifies as a “change in the ownership or effective control”
of the Company or in the “ownership of a substantial portion of the assets” of the Company within
the meanings ascribed to such terms in Treasury Department regulations or other guidance issued
under Section 409A of the Code.
7. Withholding and Disposition of Shares
Participant is liable and responsible for all taxes owed in connection with the Award,
regardless of any action the Company takes with respect to any tax reporting or withholding
obligations that arise in connection with the Award. The Company does not make any representation
or undertaking regarding the tax treatment of the grant or vesting of the Award or the subsequent
sale of Shares issuable pursuant to the Award. The Company does not commit and is under no
obligation to structure the Award to reduce or eliminate Participant’s tax liability.
8. Excess Parachute Payments
Notwithstanding anything in this Agreement to the contrary, if any of the payments in respect
of this Award, together with any other payments to which Participant has the right to receive from
the Company or any purchaser, successor, or assign, would constitute an “excess parachute payment”
(as defined in Code Section 280G), the payments pursuant to the Award and/or such other plans or
agreements shall be reduced to the largest amount as will result in no portion of such payments
being subject to the excise tax imposed by Code Section 4999.
9. Plan Controls
The terms of this Agreement are governed by the terms of the Plan, as it exists on the Grant
Date and as the Plan is amended from time to time. In the event of any conflict between the
provisions of this Agreement and the provisions of the Plan, the terms of the Plan shall control,
except as expressly stated otherwise in this Agreement. The term “Section” generally refers to
provisions within the Plan; provided, however, the term “Paragraph” shall refer to a provision of
this Agreement.
10. Limitation on Rights; No Right to Future Grants; Extraordinary Item
By entering into this Agreement and accepting the Award, Participant acknowledges that: (a)
Participant’s participation in the Plan is voluntary and (b) the grant of the Award will not be
interpreted to form an employment or Board member relationship with the Company or any Subsidiary.
The Company shall be under no obligation whatsoever to advise Participant of the existence,
maturity or termination of any of Participant’s rights hereunder and Participant shall be
responsible for familiarizing himself or herself with all matters contained herein and in the Plan
which may affect any of Participant’s rights or privileges hereunder.
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11. Committee Authority
Any question concerning the interpretation of this Agreement or the Plan, any adjustments
required to be made under the Plan, and any controversy that may arise under the Plan or this
Agreement shall be determined by the Committee in its sole and absolute discretion. Such decision
by the Committee shall be final and binding.
12. Transfer Restrictions
Any sale, transfer, assignment, encumbrance, pledge, hypothecation, conveyance in trust, gift,
transfer by bequest, devise or descent, or other transfer or disposition of any kind, whether
voluntary or by operation of law, directly or indirectly, of (i) Unvested Units, (ii) Vested Units
prior to the Settlement Date, or (iii) Shares subject to such Unvested Units or Vested Units shall
be strictly prohibited and void; provided, however, Participant may assign or transfer the Award to
the extent permitted under the Plan, provided that the Award shall be subject to all the terms and
condition of the Plan, this Agreement and any other terms required by the Committee as a condition
to such transfer.
13. Suspension or Termination of Award
Pursuant to Section 16 of the Plan, if at any time prior to Participant’s receipt of Shares
pursuant to the Award an Authorized Officer reasonably believes that Participant may have committed
an Act of Misconduct (as defined below), the Authorized Officer, the Committee or the Board may
suspend Participant’s rights to vest in any Restricted Stock Units, and/or to receive payment for
or receive Shares in settlement of Vested Units pending a determination of whether an Act of
Misconduct has been committed. In addition, pursuant to Section 16 of the Plan, if the Committee
or an Authorized Officer determines Participant has committed an act of embezzlement, fraud,
dishonesty, nonpayment of any obligation owed to the Company or any Subsidiary, breach of fiduciary
duty, violation of Company ethics policy or code of conduct, deliberate disregard of Company or
Subsidiary rules, or if Participant makes an unauthorized disclosure of any Company or Subsidiary
trade secret or confidential information, solicits any employee or service provider to leave the
employ or cease providing services to the Company or any Subsidiary, breaches any intellectual
property or assignment of inventions covenant, engages in any conduct constituting unfair
competition, breaches any non-competition agreement, induces any Company or Subsidiary customer to
breach a contract with the Company or any Subsidiary or to cease doing business with the Company or
any Subsidiary, or induces any principal for whom the Company or any Subsidiary acts as agent to
terminate such agency relationship (any of the foregoing acts, an “Act of Misconduct”),
then except as otherwise provided by the Committee, (i) neither Participant nor Participant’s
estate nor transferee will be entitled to vest in or have the restrictions on Unvested Units lapse,
or otherwise receive payment or Shares in respect of Vested Units and (ii) Participant will forfeit
all undelivered (including deferred) Vested and Unvested Units. In making such determination, the
Committee or an Authorized Officer shall give Participant an opportunity to appear and present
evidence on his or her behalf at a hearing before the Committee or an opportunity to submit written
comments, documents, information and arguments to be considered by the Committee. Any dispute by
Participant or other person as to the determination of the Committee must be resolved pursuant to
Paragraph 15(j).
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14. Adjustment of and Changes in the Stock
In the event that the number of Shares increases or decreases through a reorganization,
reclassification, combination of shares, stock split, reverse stock split, spin-off, dividend
(other than regular, quarterly cash dividends), or otherwise, the Committee shall equitably adjust
the number of Shares subject to this Award to reflect such increase or decrease.
15. General Provisions
(a) Notices. Whenever any notice is required or permitted hereunder, such notice must
be in writing and delivered in person or by mail (to the address set forth below if notice is being
delivered to the Company) or electronically. Any notice delivered in person or by mail shall be
deemed to be delivered on the date on which it is personally delivered, or, whether actually
received or not, on the third business day after it is deposited in the United States mail,
certified or registered, postage prepaid, addressed to the person who is to receive it at the
address that such person has theretofore specified by written notice delivered in accordance
herewith. Any notice given by the Company to Participant directed to Participant at Participant’s
address on file with the Company shall be effective to bind Participant and any other person who
shall have acquired rights under this Agreement. The Company or Participant may change, by written
notice to the other, the address previously specified for receiving notices. Notices delivered to
the Company in person or by mail shall be addressed as follows:
| Company: | Arkansas Best Corporation | |||||
| Attn: | Executive Benefits | |||||
| X.X. Xxx 00000 | ||||||
| Xxxx Xxxxx, XX 00000-0000 | ||||||
| Fax: (000) 000-0000 | ||||||
(b) No Waiver. No waiver of any provision of this Agreement will be valid unless in
writing and signed by the person against whom such waiver is sought to be enforced, nor will
failure to enforce any right hereunder constitute a continuing waiver of the same or a waiver of
any other right hereunder.
(c) Undertaking. Participant hereby agrees to take whatever additional action and
execute whatever additional documents the Company may deem necessary or advisable in order to carry
out or effect one or more of the obligations or restrictions imposed on either Participant or the
Award pursuant to the express provisions of this Agreement.
(d) Entire Contract. This Agreement and the Plan constitute the entire contract
between the parties hereto with regard to the subject matter hereof. This Agreement is made
pursuant to the provisions of the Plan and will in all respects be construed in conformity with the
express terms and provisions of the Plan.
(e) Successors and Assigns. The provisions of this Agreement will inure to the
benefit of, and be binding on, the Company and its successors and assigns and Participant and
Participant’s legal representatives, heirs, legatees, distributees, assigns and transferees by
operation of law, whether or not any such person will have become a party to this Agreement and
agreed in writing to join herein and be bound by the terms and conditions hereof.
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(f) Securities Law Compliance. The Company may impose such restrictions, conditions
or limitations as it determines appropriate as to the timing and manner of any resales by
Participant or other subsequent transfers by Participant of any Shares issued as a result of or
under this Award, including without limitation (i) restrictions under an xxxxxxx xxxxxxx policy,
(ii) restrictions that may be necessary in the absence of an effective registration statement under
the Securities Act of 1933, as amended, covering the Award and/or the Shares underlying the Award
and (iii) restrictions as to the use of a specified brokerage firm or other agent for such resales
or other transfers. Any sale of the Shares must also comply with other applicable laws and
regulations governing the sale of such shares.
(g) Information Confidential. As partial consideration for the granting of the Award,
Participant agrees that he or she will keep confidential all information and knowledge that
Participant has relating to the manner and amount of his or her participation in the Plan;
provided, however, that such information may be disclosed as required by law and may be given in
confidence to Participant’s spouse, tax and financial advisors, or to a financial institution to
the extent that such information is necessary to secure a loan.
(h) Electronic Delivery. The Company may, in its sole discretion, decide to deliver
any documents related to any awards granted under the Plan by electronic means or to request
Participant’s consent to participate in the Plan by electronic means. Participant hereby consents
to receive such documents by electronic delivery and, if requested, to agree to participate in the
Plan through an on-line or electronic system established and maintained by the Company or another
third party designated by the Company, and such consent shall remain in effect throughout
Participant’s term of service with the Company and thereafter until withdrawn in writing by
Participant.
(i) Governing Law. Except as may otherwise be provided in the Plan, the provisions of
this Agreement shall be governed by the laws of the State of Delaware, without giving effect to
principles of conflicts of law.
(j) Arbitration of Disputes. Pursuant to Section 23 of the Plan, Participant hereby
agrees as follows:
(i) If Participant or Participant’s transferee wishes to challenge any action of the Committee
or the Plan Administrator, the person may do so only by submitting to binding arbitration with
respect to such decision. The review by the arbitrator will be limited to determining whether
Participant or Participant’s transferee has proven that the Committee’s decision was arbitrary or
capricious. This arbitration will be the sole and exclusive review permitted of the Committee’s
decision. Participant explicitly waives any right to judicial review.
(ii) Notice of demand for arbitration will be made in writing to the Committee within thirty
(30) days after written notice to Participant of the applicable decision by the Committee. The
arbitrator will be selected by mutual agreement of the Committee and Participant. If the Committee
and Participant are unable to agree on an arbitrator, the arbitrator will be selected by the
American Arbitration Association. The arbitrator, no matter how selected, must be neutral within
the meaning of the Commercial Rules of Dispute Resolution of the American Arbitration Association.
The arbitrator will administer and conduct the arbitration
8
pursuant to the Commercial Rules of Dispute Resolution of the American Arbitration
Association. Each side will bear its own fees and expenses, including its own attorney’s fees, and
each side will bear one half of the arbitrator’s fees and expenses; provided, however, that the
arbitrator will have the discretion to award the prevailing party its fees and expenses. The
arbitrator will have no authority to award exemplary, punitive, special, indirect, consequential,
or other extracontractual damages. The decision of the arbitrator on the issue(s) presented for
arbitration will be final and conclusive and any court of competent jurisdiction may enforce it.
(k) Section 409A of the Code. This Award is intended to comply, to the extent
applicable, with the election, distribution and any other requirements of Section 409A of the Code
and, as such, shall be interpreted in a manner consistent therewith. Notwithstanding anything
herein or in the Plan to the contrary, the Company may, in its sole discretion, amend this Award
(which amendment shall be effective upon its adoption or at such other time designated by the
Company) as may be necessary to avoid the imposition of the additional tax under Section
409A(a)(1)(B) of the Code or otherwise comply with Section 409A and the regulations thereunder;
provided, however, that any such amendment shall be implemented in such a manner as to preserve, to
the greatest extent possible, the terms and conditions of this Award as in existence immediately
prior to any such amendment.
(l) Board Policies and Guidelines. Participant acknowledges that this Award is
subject to certain policies and guidelines as may be from time to time enacted by the Board of
Directors of the Company including guidelines for the Recoupment of Incentive Compensation adopted
by the Board of Directors of the Company effective October 18, 2007.
[signature page follows]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.
| ARKANSAS BEST CORPORATION |
||||
| By: | ||||
| Name: | ||||
| Title: | ||||
| PARTICIPANT |
||||
| [Participant] | ||||
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Exhibit A
ARKANSAS BEST CORPORATION
RESTRICTED STOCK UNIT
INITIAL DEFERRAL ELECTION FORM FOR 20___ AWARDS
RESTRICTED STOCK UNIT
INITIAL DEFERRAL ELECTION FORM FOR 20___ AWARDS
Effective as of , the undersigned hereby irrevocably elects (the
“Election”) to defer receipt of certain shares of common stock (the “Shares”) of
Arkansas Best Corporation (the “Company”) related to the Restricted Stock Units (the
“Award”) awarded under and pursuant to any Restricted Stock Unit Award Agreement dated
between and (the “Award Agreement”) and the Arkansas Best
Corporation 2005 Ownership Incentive Plan, as amended from time to time (the “Plan”). This
deferral shall be made in accordance with the terms and provisions outlined in this Election in the
manner and amount set forth below. In making this Election, you may elect to defer the settlement
of all or a portion of your Award. Your deferral must be expressed as a percentage of the
Restricted Stock Units subject to the Award. In executing this Election form you acknowledge that,
in order to be effective, either (i) if on the Grant Date set forth in your Award Agreement or
within 12 months following such Grant Date you become wholly or partially vested in your Award by
virtue of satisfying the requirements (as defined in the Award Agreement) for either Normal
Retirement or Early Retirement (other than actual separation from service), the Election must be
returned no later than December 31 of the year preceding the year in which the Grant Date set forth
in your Award Agreement occurs, or (ii) if the preceding clause (i) does not apply to you, (A) the
Election must be returned no later than 30 days following the Grant Date set forth in your Award
Agreement, and (B) the portion of your Award subject to this Election must not become vested until
more than 12 months following the date of this Election (or, if later, 12 months following the
Grant Date).
In general, all deferrals pursuant to this election will be paid out in Shares. Subject to
the terms and conditions of the Award Agreement and the Plan, all of the Shares you are entitled to
receive on the Settlement Date specified in this Election will be transferred to you on the
applicable Settlement Date.
Amount of the Deferral
o
|
I hereby irrevocably elect to defer settlement of ___% of the Shares subject to the Award. |
Duration of the Deferral
Settlement of that portion of the Award specified above shall be deferred until [complete by
checking the appropriate box below and, if applicable, filling in the distribution date. CHECK
ONLY ONE BOX]:
o
|
, 20___ [Note: this date must be after the third anniversary of the ___ Grant Date]; or | |
o
|
the termination of my service as a member of the Board; or | |
o
|
the earlier of , 20___ [Note: this date must be after the third anniversary of the ___ Grant Date] or the termination of my service as a member of the Board; or | |
o
|
the later of , 20___ [Note: this date must be after the third anniversary of the ___ Grant Date]or the termination of my service as a member of the Board. | |
Terms and Conditions
By signing this form, you acknowledge your understanding and acceptance of the following:
1. Submission of Election to the Company. You understand that (i) if on the Grant Date set
forth in your Award Agreement or within 12 months following such Grant Date you satisfy or will
satisfy the vesting requirements for either Normal Retirement or Early Retirement (each as defined
in the Award Agreement), the Election must be submitted to the Company no later than December 31 of
the year preceding the year in which the Award was granted or (ii) if the preceding clause (i) does
not apply to you, the Election must be submitted to the Company no later than 30 days following the
date the Award was granted.
2. Dividend Equivalents. You will be entitled to receive cash payments (subject to applicable
withholding taxes) equal to all dividends and other distributions paid with respect to the Units
subject to this Election. Dividends payable by the Company to its public stockholders in cash
shall be paid in cash on or about the date such dividends are payable to public stockholders,
subject to any applicable tax withholding requirements. Notwithstanding the foregoing, no such
dividend equivalents will be paid with respect to any dividend or other distribution declared by
the Company in connection with which the Award is adjusted pursuant to Paragraph 14 of the Award
Agreement and/or Section 13 of the Plan. For avoidance of doubt, this ineligibility for a dividend
equivalent will apply only to the actual stock distribution in question (in the year of such
distribution), and shall not adversely affect the ability to receive subsequent regular cash
dividends on the Award as so adjusted.
3. Status of Participant. Except as set forth in Paragraph 3 above, you will have no rights as
a stockholder (including, without limitation, any voting rights with respect to the Units subject
to this Election) with respect to the Units subject to this Election, unless and until Shares with
respect to such Units are issued to you hereunder.
4. Payment Acceleration. Notwithstanding anything herein to the contrary, any Shares subject
to this Election shall be immediately distributed to you or your estate, as
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applicable, upon your death or Disability (as defined in the Award Agreement) or upon a
“change in the ownership or effective control” of the Company or in the “ownership of a substantial
portion of the assets” of the Company within the meanings ascribed to such terms in Treasury
Department regulations or other guidance issued under Section 409A of the Code.
5. Administration. This Election is administered and interpreted by the Committee (as such
term is defined in the Plan). The Committee has full and exclusive discretion to interpret and
administer this Election. All actions, interpretations and decisions of the Committee are
conclusive and binding on all persons, and will be given the maximum possible deference allowed by
law.
6. Arbitration of Disputes. All disputes under this Election form shall be subject to
arbitration pursuant to Paragraph 15(j) of the Award Agreement and Section 23 of the Plan.
| Submitted by: | Accepted by: ARKANSAS BEST CORPORATION |
||||
| By: | |||||
| [Participant] | Name: | ||||
| Title: | |||||
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