2005 Annual Incentive Plan
EXHIBIT 10.19
Description of USF Corporation
2005 Annual Incentive Plan
OBJECTIVES
The objective of the USF Corporation 2005 Annual Incentive Plan (the Plan) is to incentivize certain officers and employees of USF to achieve two goals: (1) to meet corporate goals for 2005 and (2) to promote cooperation and assistance between USF operating companies.
SUMMARY OF PLAN CHARACTERISTICS
In order for any participant to earn a bonus under the plan, USF must meet a minimum threshold level of operating income.
The calculation of operating income with respect to a specific individual may be determined by (a) the operating income of USF on a consolidated basis (the year-end operating income of all of USFs business units after corporate overhead is applied but before taxes and interest), (b) the operating income of an individual business unit of USF to which such individuals services are related or (c) a combination of (a) and (b).
Each incentive goal has a minimum, target and maximum amount based on the position the individual holds.
A summary of the applicable basis for determining operating income for purposes of the bonus and the maximum bonus (as a percentage of such persons base salary) for certain officers of USF is provided on Annex A hereto.
ANNEX A
2005 Proposed Bonus Plan
Bonus Profiles and Incentive Allocations
Maximum Bonus | ||||||
(as a % of | ||||||
Basis of Operating Income | Individuals Base | |||||
Company | Position/Title | Determination (%) | Salary) | |||
USF Corporation | CEO | USF Consolidated (100%) | 150% | |||
USF Corporation | CFO | USF Consolidated (100%) | 100% | |||
USF Corporation | SVP | USF Consolidated (100%) | 80% | |||
USF Corporation | VP | USF Consolidated (100%) | 50% | |||
USF Corporation | Director | USF Consolidated (100%) | 25% | |||
USF Corporation | Manager | USF Consolidated (100%) | 12.5% | |||
USF Corporation | Individual Contributor | USF Consolidated (100%) | 5% | |||
USF Holland | Business Unit President | Business Unit (60%) | 100% | |||
USF Reddaway | USF Consolidated (40%) | |||||
USF Glen Moore | ||||||
USF Bestway | ||||||
USF Dugan | ||||||
USF Holland | VP | Business Unit (70%) | 50% to 80% | |||
USF Reddaway | USF Consolidated (30%) | |||||
USF Glen Moore | ||||||
USF Bestway | ||||||
USF Dugan | ||||||
Business Unit (80%) | 100% | |||||
USF Logistics | Business Unit President | USF Consolidated (20%) | ||||
Business Unit (80%) | 50% | |||||
USF Logistics | VP | USF Consolidated (20%) |