| | As previously reported on October 16, 2009, Frozen Food Express Industries, Inc. (the “Company”) was notified by Ronald J. Knutson of his resignation as Senior Vice President, Chief Financial Officer, effective November 6, 2009, to pursue an opportunity located near Chicago, Illinois. The Company also announced at that time its intention to appoint John R. McManama as the Company’s Vice President, and Interim Chief Financial Officer and Treasurer also effective November 6, 2009. Effective November 6, 2009, the Company appointed John R. McManama, age 57, as the Company’s Vice President, and Interim Chief Financial Officer and Treasurer. Mr. McManama will also be appointed the Company’s Principal Financial and Accounting Officer. Mr. McManama is a certified public accountant and most recently served as Vice President of Finance for FFE Transportation Services, Inc., a principal subsidiary of the Company. Mr. McManama has over 20 years of senior level financial experience in the transportation industry. The Company has agreed to pay Mr. McManama an annual base salary of $190,000 and is subject to annual increases as set from time to time by the Compensation Committee of the Company’s Board of Directors. Mr. McManama will participate in the FFE Transportation Services, Inc. 2005 Executive Incentive Bonus and Restricted Stock Plan (“Executive Plan”). Under the Executive Plan, Mr. McManama will be eligible for an annual cash bonus up to 100% of his base salary and shares of restricted stock of the Company up to 50% of the value of the cash bonus which vest in equal amounts over a period of three years. Mr. McManama is also eligible to participate in the FFE Transportation Services, Inc. Incentive Bonus Plan with a maximum payout of 3 weeks of his base salary. Mr. McManama will receive a car allowance of $6,000 per year and is eligible for a holiday bonus equivalent to one week of the base salary. Mr. McManama will participate in the Company’s broad-based programs including health, disability and life insurance programs, the Frozen Food Express Industries, Inc. 401(k) Savings Plan, the Frozen Food Express Industries, Inc. 2005 Stock Incentive Plan and the FFE Transportation Services, Inc. 401(k) Wrap Plan. He will also participate in the Key Employee Supplemental Medical Plan. On February 25, 2009, the Company awarded Mr. McManama 5,000 shares of restricted stock of the Company’s common stock which vests in equal amounts over a period of five years. |
