Blue Bird Corp

For fiscal 2025, the Compensation Committee has approved the MIP (the “fiscal 2025 MIP”) with the performance formula tied to Adjusted EBITDA only, including a 50% payout if the minimum EBITDA amount is achieved, 150% payout for achievement of the target EBITDA amount, and a cap of 200% for achievement of the aspirational target; provided, that the incoming CEO will receive 100% payout for achievement of the target EBITDA. The fiscal 2025 LTI award program is similar in design to the fiscal 2024 program; provided that the award for achievement of the target EBITDA will be 150% of target LTI for participating employees. The incremental 50% (i.e., the increase from 100% to 150%) will be in performance units; therefore, the minimum retention percentage (i.e., the time-vested award) decreases from 50% to 33.3% of the total awards. All new equity awards will be granted in RSUs and no stock options will be issued. The incoming CEO’s LTI participation is outlined in the section below titled “Executive Employment Agreements and Other Arrangements with Named Executive Officers.”