Exhibit 10.1
FORM OF FISCAL
2008
AWARD LETTER
UNDER FARMER BROS. CO.
2005 INCENTIVE COMPENSATION PLAN
Dear
:
The Compensation Committee
(“Committee”) chose you to be a participant in fiscal
2008 in the Farmer Bros. Co. 2005 Incentive Compensation
Plan. Your target award for fiscal 2008 was
$ ,
which the Committee determined by taking into consideration past
total annual compensation, current base salary, job
responsibilities and past and expected job performance.
In general, your bonus for fiscal
2008 was determined primarily by measuring the Company’s
financial performance and your achievement of individual goals
which the Committee assigned to you.
The Company’s financial
performance was gauged by the level of achievement of operating
cash flow and net sales as defined, and as determined from the
Company’s audited financial statements. A matrix is
attached which shows various percentages between 25% and 150%
depending on the combined level of achievement of these two
criteria. For fiscal 2008, based on the Company’s
fiscal 2008 audited consolidated financial statements, the
Company’s operating cash flow was approximately
$
million, as adjusted by the Committee, and net sales were
approximately
$
million. Based on the Company’s achievement of these
two criteria during fiscal 2008, the percentage derived from the
matrix for fiscal 2008 is
%.
The Committee als
