2006 Performance Bonus Plan for Executive Officers of Western Refining, Inc.
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Summary
Western Refining, Inc. has established a 2006 Performance Bonus Plan for its executive officers. Under this plan, executives are eligible for a discretionary annual bonus if the company achieves a specified increase in adjusted EBITDA for 2006 compared to 2005. The Section 162(m) Compensation Subcommittee will determine the bonus amount, which can be up to 200% of an executive's base salary, and may be paid in cash, stock, or both. The Subcommittee has full discretion over both the amount and form of payment, with decisions made after the end of the fiscal year.
EX-10.1 2 h34694exv10w1.htm 2006 PERFORMANCE BONUS PLAN FOR EXECUTIVE OFFICERS exv10w1
Exhibit 10.1
2006 Performance Bonus Plan for Executive Officers
All of the executive officers of Western Refining, Inc. (the “Company”) are eligible for a discretionary annual performance bonus, as determined by the Section 162(m) Compensation Subcommittee (the “Subcommittee”) of the Compensation Committee, subject to the Company achieving a specified increase in adjusted EBITDA for fiscal year 2006 compared to adjusted EBITDA for fiscal year 2005. Adjusted EBITDA represents earnings before interest expense, income tax expense, amortization of loan fees, write-off of unamortized loan fees, depreciation, amortization and maintenance turnaround expense.
The amount of the bonus payment under the 2006 performance plan will be determined by the Subcommittee after December 31, 2006. Bonus amounts can range from zero up to an amount not to exceed 200% of each executive’s base salary. Payments of bonus amounts may be made in cash, stock or a combination of both, in the discretion of the Subcommittee. The determination of the amount of an individual’s bonus and the method of payment of the bonus will be made by the Subcommittee in its discretion.
