The Pantry, Inc. Annual Incentive Program
The Pantry, Inc. Annual Incentive Program (the “Program”) is a compensatory program under The Pantry, Inc.
2007 Omnibus Plan that was originally established on November 25, 2008 by the Compensation and
Organization Committee (the “Committee”) of the Board of Directors (the “Board”) of The Pantry, Inc. (the
“Company”). The Program provides for performance-based cash awards to certain of the Company’s
employees, including its executive officers. Executive officers are eligible for awards under the Program based on
threshold, target, and maximum performance levels set by the Committee, and the actual award amounts, if any,
will therefore vary depending on the achievement of certain performance goals by the Company. The Program’s
performance cycle is concurrent with the Company’s fiscal year.
The Board approved the following performance measures and their respective weights for the Company’s
executive officers because the Board believed these performance measures would be key indicators of the
Company’s overall financial and operating results during each fiscal year:
Under the Program, each performance measure operates independently of the other measure. That is, an award
may be paid when the threshold performance level is achieved for a single measure, without regard to results for
the other measure. The Board approved the targets for each performance measure based upon the Company’s
approved internal budget estimates.
Under the Program, the target award opportunity for the Company’s chief executive officer will be 75% of his or
her annual base salary as initially approved by the Board for the applicable fiscal year and will not include any
additional salary increases for such fiscal year; the target award opportunity for each of the Company’s other
executive officers will be 50% of his or her annual base salary as initially approved by the Board for the
applicable fiscal year and will not include any additio