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<SEC-DOCUMENT>0001206774-06-001322.txt : 20060615
<SEC-HEADER>0001206774-06-001322.hdr.sgml : 20060615
<ACCEPTANCE-DATETIME>20060615110016
ACCESSION NUMBER:		0001206774-06-001322
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060612
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060615
DATE AS OF CHANGE:		20060615

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SHOE CARNIVAL INC
		CENTRAL INDEX KEY:			0000895447
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-SHOE STORES [5661]
		IRS NUMBER:				351736614
		STATE OF INCORPORATION:			IN
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21360
		FILM NUMBER:		06906413

	BUSINESS ADDRESS:	
		STREET 1:		8233 BAUMGART ROAD
		CITY:			EVANSVILLE
		STATE:			IN
		ZIP:			47725
		BUSINESS PHONE:		8128674661

	MAIL ADDRESS:	
		STREET 1:		8233 BAUMGART RD
		CITY:			EVANSVILLE
		STATE:			IN
		ZIP:			47725
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>sc101266.htm
<DESCRIPTION>FORM 8-K
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<p  align="center"><font size="5" face="Times New Roman"><b>UNITED STATES<br> SECURITIES AND EXCHANGE COMMISSION<br> </b></font>
<font size="3"><b>Washington, D.C. 20549</b></font></p>
<p  align="center">
<font size="5" face="Times New Roman"><b>FORM 8-K</b></font></p>
<p  align="center">
<font size="3" face="Times New Roman"><b>CURRENT REPORT</b></font></p>
<p  align="center">
<font size="3" face="Times New Roman"><b>PURSUANT TO SECTION 13 OR 15(d) OF THE<br> SECURITIES EXCHANGE ACT OF 1934</b></font></p>
<p  align="center">
<font size="2" face="Times New Roman"><b>Date of Report (Date of earliest event reported)&nbsp;&nbsp;&nbsp;June 12, 2006</b></font></p>
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<font size="6" face="Times New Roman"><b>SHOE   CARNIVAL, INC.</b></font></p>  </td>
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<font size="1" face="Times New Roman"><b>(Exact   name of registrant as specified in its charter)</b></font></p>  </td>
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<font size="2" face="Times New Roman"><b>Indiana</b></font></p>  </td>
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  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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<font size="2" face="Times New Roman"><b>0-21360</b></font></p>  </td>
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  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
  <td width="32%" valign="top">
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<font size="2" face="Times New Roman"><b>35-1736614</b></font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman"><b>(State or   other jurisdiction&#160; <br>   of incorporation)</b></font></p>  </td>
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  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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<font size="1" face="Times New Roman"><b>(Commission   File&#160; <br>   Number)</b></font></p>  </td>
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<font size="1" face="Times New Roman"><b>(IRS   Employer <br>   Identification No.)</b></font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman"><b>8233 Baumgart Road, Evansville, IN</b></font></p>  </td>
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  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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<font size="2" face="Times New Roman"><b>47725</b></font></p>  </td>
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<font size="1" face="Times New Roman"><b>(Address   of principal executive offices)</b></font></p>  </td>
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  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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<font size="1" face="Times New Roman"><b>(Zip Code)</b></font></p>  </td>
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  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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  <p style="margin-left:1em; text-indent:-1em"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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  <p align="center" style="margin-left:1em; text-indent:-1em">
<font size="2" face="Times New Roman"><b>Registrant&#146;s telephone number,   including area code&nbsp;&nbsp;&nbsp;(812) 867-6471</b></font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman"><b>Not Applicable</b></font></p>  </td>
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<font size="1" face="Times New Roman"><b>(Former   name or former address if changed since last report)</b></font></p>  </td>
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<p>
<font size="2" face="Times New Roman">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (<i>see </i>General Instruction A.2. below):</font></p>

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<font size="2" face="Wingdings">o</font></p>  </td>
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<font size="2" face="Times New Roman">Written communications pursuant to Rule 425 under   the Securities Act (17 CFR 230.425)</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Wingdings">o</font></p>  </td>
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<font size="2" face="Times New Roman">Soliciting material pursuant to Rule 14a-12 under   the Exchange Act (17 CFR 240.14a-12)</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Wingdings">o</font></p>  </td>
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<font size="2" face="Times New Roman">Pre-commencement communications pursuant to Rule   14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Wingdings">o</font></p>  </td>
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<font size="2" face="Times New Roman">Pre-commencement communications pursuant to Rule   13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  </td>
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<div style="page-break-before:always"></div>
<PAGE>
<br>

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<font size="2" face="Times New Roman"><b>Item   1.01</b></font></p>  </td>
  <td width="90%" valign="top">
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<font size="2" face="Times New Roman"><b>Entry   into a Material Definitive Agreement.</b></font></p>  </td>
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<p>
<font size="2" face="Times New Roman">At the 2006 Annual Meeting of Shareholders of Shoe Carnival, Inc. (the &#147;Company&#148;) held on June 12, 2006, the Company&#146;s shareholders approved the Shoe Carnival, Inc. 2006 Executive Incentive Compensation Plan (the &#147;2006 Incentive Plan&#148;).&#160; The 2006 Incentive Plan was approved by the Company&#146;s Board of Directors as of March 13, 2006, subject to shareholder approval, and became effective with such shareholder approval on June 12, 2006.</font></p>
<p>
<font size="2" face="Times New Roman">The purpose of the 2006 Incentive Plan is to promote the success of the Company by providing to participating executives of the Company bonus incentives that qualify as performance-based compensation within the meaning of Section 162(m) of the Internal Revenue Code.&#160; The 2006 Incentive Plan will be administered by the Compensation Committee of the Board of Directors of the Company.&#160; The Compensation Committee will determine the executives of the Company eligible for bonus awards and, subject to the terms of the 2006 Incentive Plan, the amount of such bonuses.&#160; Under the 2006 Incentive Plan, the Compensation Committee will establish and administer performance targets for performance periods pursuant to which eligible executives may receive designated bonus compensation.&#160; Performance targets may be based on one or more of the business criteria set forth in the 2006 Incentive Plan.&#160; </font></p>
<p>
<font size="2" face="Times New Roman">The foregoing description of the 2006 Incentive Plan does not purport to be complete and is qualified in its entirety by reference to the 2006 Incentive Plan, which is filed as Exhibit 10-B hereto and is incorporated herein by reference and constitutes a part of this report.</font></p>

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<font size="2" face="Times New Roman"><b>Item   9.01</b></font></p>  </td>
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<font size="2" face="Times New Roman"><b>Financial   Statements and Exhibits.</b></font></p>  </td>
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<p>
<font size="2" face="Times New Roman"><b>(d)&#160; Exhibits</b></font></p>
<p>
<font size="2" face="Times New Roman">The following exhibits are being filed herewith:</font></p>
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<font size="1" face="Times New Roman"><b>Exhibit No.</b></font></p>  </td>
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  <p  align="center"><font size=1 face="Times New Roman">&nbsp;</font></p> </td>
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<font size="1" face="Times New Roman"><b>Exhibit</b></font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman">10-B</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman">Shoe Carnival, Inc. 2006 Executive Incentive   Compensation Plan</font></p>  </td>
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<p  align="center">
<font size="2" face="Times New Roman">2</font></p>

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<p  align="center">
<font size="2" face="Times New Roman"><b>SIGNATURES</b></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman"><b>SHOE   CARNIVAL, INC.</b></font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant)</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="4%" valign="bottom">
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman">Dated:&nbsp;&nbsp;June 15, 2006</font></p>  </td>
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<font size="2" face="Times New Roman">By:</font></p>  </td>
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<font size="2" face="Times New Roman"><b>/s/ W.   Kerry Jackson</b></font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <hr size="1" width="100%" noshade color=black>

  </td>
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  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p><font size="2" face="Times New Roman">W. Kerry Jackson</font></p>  </td>
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  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p><font size="2" face="Times New Roman">Executive Vice President and</font></p>  </td>
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  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p><font size="2" face="Times New Roman">Chief Financial Officer</font></p>  </td>
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<p  align="center"><font size="2" face="Times New Roman">3</font></p>



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<DOCUMENT>
<TYPE>EX-10.B
<SEQUENCE>2
<FILENAME>sc101266ex10b.htm
<DESCRIPTION>EXHIBIT 10-B
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<p  align=right><font size="2" face="Times New Roman"><b>Exhibit 10-B</b></font></p>
<p  align="center">
<font size="2" face="Times New Roman"><b>SHOE CARNIVAL, INC. 2006 EXECUTIVE<br> INCENTIVE COMPENSATION PLAN</b></font></p>
<p>
<font size="2" face="Times New Roman"><b>Section 1.&nbsp;&nbsp;&nbsp;&nbsp;Purpose of Plan </b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of the Plan is to promote the success of the Company by providing to participating executives of the Company bonus incentives that qualify as performance-based compensation within the meaning of Section 162(m) of the Code. </font></p>
<p>
<font size="2" face="Times New Roman"><b>Section 2.&nbsp;&nbsp;&nbsp;&nbsp;Definitions and Terms </b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1<i>&nbsp;&nbsp;&nbsp;&nbsp;Accounting Terms.</i>&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise expressly provided or the context otherwise requires, financial and accounting terms are used as defined for purposes of, and shall be determined in accordance with, generally accepted accounting principles, as from time to time in effect in the United States of America, as applied and reflected in the consolidated financial statements of the Company, prepared in the ordinary course of business. </font></p>
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<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2<i>&nbsp;&nbsp;&nbsp;&nbsp;Specific   Terms.</i>&nbsp;&nbsp;&nbsp;&nbsp;The following words and phrases as   used herein shall have the following meanings unless a different meaning is   plainly required by the context:</font></p>  </td>
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<BR>
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<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Annual   Return To Shareholders&#148;</i> means the Company&#146;s return to   shareholders as represented by share price appreciation plus dividends paid   on one share of Common Stock during any Year during a Performance Period.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Base   Salary&#148;</i> in respect of any Performance Period means the   aggregate base annualized salary of a Participant from the Company and all   affiliates of the Company at the time the Participant is selected to   participate for that Performance Period, exclusive of any commissions or   other actual or imputed income from any Company provided benefits or   perquisites, but prior to any reductions for salary deferred pursuant to any   deferred compensation plan or for contributions to a plan qualifying under   Section 401(k) of the Code or contributions to a cafeteria plan under Section   125 of the Code.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Bonus&#148;</i>   means a cash payment or payment opportunity as the context requires.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Business   Criteria&#148;</i> means any one or any combination of Annual Return   to Shareholders, Net Sales, Net Income, Net Income before Nonrecurring Items,   Operating Income, Return on Equity, Return on Assets, EPS, EBITDA or EBITDA   before Nonrecurring Items, in each case during any Year during a Performance   Period.&#160; In addition, Business   Criteria includes any of the foregoing criteria calculated before any Bonus   expense for that Year.</font></p>  </td>
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<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Code&#148;</i>   means the Internal Revenue Code of 1986, as amended from time to time.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Committee&#148;</i>   means the Compensation Committee of the Board of Directors or any successor   committee which will administer the Plan in accordance with Section 3 of the   Plan and Section 162(m) of the Code.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Common   Stock&#148;</i> means the Common Stock, par value $0.01 per share,   of the Company.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Company&#148;</i>   means Shoe Carnival, Inc. and its consolidated subsidiaries, and any   successor, whether by merger, ownership of all or substantially all of its   assets or otherwise.</font></p>  </td>
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  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p>
<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;EBITDA&#148;</i>   for any Year means the consolidated net income before interest, income taxes,   depreciation and amortization of the Company as reflected in the Company&#146;s   audited consolidated financial statements for the Year.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;EBITDA   before Nonrecurring Items&#148;</i> for any Year means EBITDA of the   Company before any extraordinary or unusual one-time nonrecurring expenses or   other charges as reflected in the Company&#146;s audited consolidated financial   statements for the Year.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;EPS&#148;</i>   for any Year means diluted Net Income per share of the Company, as reported   in the Company&#146;s audited consolidated financial statements for the Year.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Executive&#148;</i>   means a key employee (including any officer) of the Company.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Net   Income&#148;</i> for any Year means the consolidated net income of   the Company, as reported in the Company&#146;s audited consolidated financial   statements for the Year.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Net   Income before Nonrecurring Items&#148;</i> for any Year means the   Net Income of the Company before any extraordinary or unusual one-time   nonrecurring expenses or other charges as reflected in the Company&#146;s audited   consolidated financial statements for the Year.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Net   Sales&#148;</i> for any Year means the Company&#146;s total net sales as   reported in the Company&#146;s audited consolidated financial statements for the   Year.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Operating   Income&#148;</i> for any Year means the operating income of the   Company as reflected in the Company&#146;s audited consolidated financial   statements for the Year.</font></p>  </td>
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<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Participant&#148;</i>   means an Executive selected to participate in the Plan by the Committee.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Performance   Period&#148;</i> means the Year or Years with respect to which the   Performance Targets are set by the Committee.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Performance   Target(s)&#148;</i> means the specific objective goal or goals   (which may be cumulative and/or alternative) that are timely set in writing   by the Committee for each Executive for the Performance Period in respect of   any one or more of the Business Criteria.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Plan&#148;</i>   means this Shoe Carnival, Inc. 2006 Executive Incentive Compensation Plan, as   amended from time to time.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Return   on Assets&#148;</i> for any Year means Net Income divided by the   average of the total assets of the Company at the end of the fiscal quarters   of the Year, as reflected in the Company&#146;s audited consolidated financial   statements for the Year.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Return   on Equity&#148;</i> for any Year means the Net Income divided by the   average of the shareholders equity of the Company at the end of each of the   fiscal quarters of the Year, as reflected in the Company audited consolidated   financial statements for any Year.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Section   162(m)&#148;</i> means Section 162(m) of the Code, and the   regulations promulgated thereunder, all as amended from time to time.</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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<font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
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  <p>
<font size="2" face="Times New Roman"><i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Year&#148;</i>   means any one or more fiscal years of the Company commencing on or after   January 28, 2006 that represent(s) the applicable Performance Period and   end(s) no later than January 29, 2011.</font></p>  </td>
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<p><font size="2" face="Times New Roman"><b>Section 3.&nbsp;&nbsp;&nbsp;&nbsp;Administration of the Plan </b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1<i>&nbsp;&nbsp;&nbsp;&nbsp;The Committee.</i>&nbsp;&nbsp;&nbsp;&nbsp;The Plan shall be administered by the Committee, which shall consist of at least three members of the Board of Directors of the Company, duly authorized by the Board of Directors of the Company to administer the Plan, who (i) are not eligible to participate in the Plan and (ii) are &#147;outside directors&#148; within the meaning of Section 162(m). </font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2<i>&nbsp;&nbsp;&nbsp;&nbsp;Powers of the Committee.</i>&nbsp;&nbsp;&nbsp;&nbsp;The Committee shall have the sole authority to establish and administer the Performance Target(s) and the responsibility of determining from among the Executives those persons who will participate in and receive Bonuses under the Plan and, subject to Sections 4 and 5 of the Plan, the amount of such Bonuses and shall otherwise be responsible for the administration of the Plan, in accordance with its terms. The Committee shall have the authority to construe and interpret the Plan (except as otherwise provided herein) and any agreement or other document relating to any Bonus under the Plan, may adopt rules and regulations governing the administration </font></p>

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<font size="2" face="Times New Roman">of the Plan, and shall exercise all other duties and powers conferred on it by the Plan, or which are incidental or ancillary thereto. For each Performance Period, the Committee
shall determine, at the time the Business Criteria and the Performance Target(s) are set, those Executives who are selected as Participants in the Plan.</font></p>

<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3<i>&nbsp;&nbsp;&nbsp;&nbsp;Requisite Action.</i>&nbsp;&nbsp;&nbsp;&nbsp;A majority (but not fewer than two) of the members of the Committee shall constitute a quorum. The vote of a majority of those present at a meeting at which a quorum is present or the unanimous written consent of the Committee shall constitute action by the Committee. </font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4<i>&nbsp;&nbsp;&nbsp;&nbsp;Express Authority (and Limitations on Authority) to Change Terms and Conditions of Bonus.</i>&nbsp;&nbsp;&nbsp;&nbsp;Without limiting the Committee&#146;s authority under other provisions of the Plan, but subject to any express limitations of the Plan and Section 5.8, the Committee shall have the authority to accelerate a Bonus (after the attainment of the applicable Performance Target(s)) and to waive restrictive conditions for a Bonus (including any forfeiture conditions, but not Performance Target(s)), in such circumstances as the Committee deems appropriate. In the case of any acceleration of a Bonus after the attainment of the applicable Performance Target(s), the amount payable shall be discounted to its present value using an interest rate equal to Moody&#146;s Average Corporate Bond Yield for the month preceding the month in which such acceleration occurs. </font></p>

<p><font size="2" face="Times New Roman"><b>Section 4.&nbsp;&nbsp;&nbsp;&nbsp;Bonus Provisions</b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1<i>&nbsp;&nbsp;&nbsp;&nbsp;Provision for Bonus.</i>&nbsp;&nbsp;&nbsp;&nbsp;Each Participant may receive a Bonus if and only if the Performance Target(s) established by the Committee, relative to the applicable Business Criteria, are attained. The applicable Performance Period and Performance Target(s) shall be determined by the Committee consistent with the terms of the Plan and Section 162(m). Notwithstanding the fact that the Performance Target(s) have been attained, the Company may pay a Bonus of less than the amount determined by the formula or standard established pursuant to Section 4.2 or may pay no Bonus at all, unless the Committee otherwise expressly provides by written contract or other written commitment. </font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2<i>&nbsp;&nbsp;&nbsp;&nbsp;Selection of Performance Target(s).</i>&nbsp;&nbsp;&nbsp;&nbsp;The specific Performance Target(s) with respect to the Business Criteria must be established by the Committee in advance of the deadlines applicable under Section 162(m) and while the performance relating to the Performance Target(s) remains substantially uncertain within the meaning of Section 162(m). At the time the Performance Target(s) are selected, the Committee shall provide, in terms of an objective formula or standard for each Participant, and for any person who may become a Participant after the Performance Target(s) are set, the method of computing the specific amount that will represent the maximum amount of Bonus payable to the Participant if the Performance Target(s) are attained, subject to Sections 4.1, 4.3, 4.7, 5.1 and 5.8.</font></p>

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<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3<i>&nbsp;&nbsp;&nbsp;&nbsp;Maximum Individual Bonus.</i>&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision hereof, no Executive shall receive a Bonus under the Plan for any Year in excess of $2 million or, if less, 200% of his or her Base Salary for the Year. No Executive shall receive aggregate bonuses under this Plan in excess of $10.0 million. </font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4<i>&nbsp;&nbsp;&nbsp;&nbsp;Selection of Participants.</i>&nbsp;&nbsp;&nbsp;&nbsp;For each Performance Period, the Committee shall determine, at the time the Business Criteria and the Performance Target(s) are set, those Executives who will participate in the Plan. </font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5<i>&nbsp;&nbsp;&nbsp;&nbsp;Effect of Mid-Year Commencement of Service</i>.&nbsp;&nbsp;&nbsp;&nbsp;To the extent compatible with Sections 4.2 and 5.8, if an Executive commences employment with the Company after the adoption of the Plan and the Performance Target(s) are established for a Performance Period, the Committee may grant to that Executive a Bonus for that Performance Period that is proportionately adjusted based on the period of actual service during such Performance Period. </font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6<i>&nbsp;&nbsp;&nbsp;&nbsp;Accounting Changes.</i>&nbsp;&nbsp;&nbsp;&nbsp;Subject to Section 5.8, if, after the Performance Target(s) are established for a Performance Period, a change occurs in the applicable accounting principles or practices, the amount of the Bonuses paid under this Plan for such Performance Period shall be determined without regard to such change. </font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7<i>&nbsp;&nbsp;&nbsp;&nbsp;Committee Discretion to Determine Bonuses.</i>&nbsp;&nbsp;&nbsp;&nbsp;The Committee has the sole discretion to determine the standard or formula pursuant to which each Participant&#146;s Bonus shall be calculated (in accordance with Section 4.2), whether all or any portion of the amount so calculated will be paid, and the specific amount (if any) to be paid to each Participant, subject in all cases to the terms, conditions and limits of the Plan and of any other written commitment authorized by the Committee. In addition to the establishment of Performance Targets as provided in Section 4.2, the Committee may at any time establish additional conditions and terms of payment of Bonuses (including but not limited to the achievement of other financial, strategic or individual goals, which may be objective or subjective) as it may deem desirable in carrying out the purposes of the
Plan and may take into account such other factors as it deems appropriate in administering any aspect of the Plan. The Committee may not, however, increase the maximum amount permitted to be paid to any individual under Section 4.2 or 4.3 of the Plan or award a Bonus under this Plan if the applicable Performance Target(s) have not been satisfied. </font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8<i>&nbsp;&nbsp;&nbsp;&nbsp;Committee Certification.</i>&nbsp;&nbsp;&nbsp;&nbsp;No Participant shall receive any payment under the Plan unless the Committee has certified, by resolution or other appropriate action in writing, that the amount thereof has been accurately determined in accordance with the terms, conditions and limits of the Plan and that the Performance Target(s) and any other material terms previously established by the Committee or set forth in the Plan were in fact satisfied. </font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9<i>&nbsp;&nbsp;&nbsp;&nbsp;Time of Payment.</i>&nbsp;&nbsp;&nbsp;&nbsp;Any Bonuses granted by the Committee under the Plan shall be paid as soon as practicable following the Committee&#146;s determinations under this Section 4 and the certification of the Committee&#146;s findings under Section 4.8, but in no </font></p>

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<font size="2" face="Times New Roman">event later than two and one half months following the last day of the year. Any such payment shall be in cash or cash equivalent, subject to applicable withholding requirements.</font></p>

<p>
<font size="2" face="Times New Roman"><b>Section 5.&nbsp;&nbsp;&nbsp;&nbsp;General Provisions </b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1<i>&nbsp;&nbsp;&nbsp;&nbsp;No Right to Bonus or Continued Employment.</i>&nbsp;&nbsp;&nbsp;&nbsp;Neither the establishment of the Plan nor the provision for or payment of any amounts hereunder nor any action of the Company (including, for purposes of this Section 5.1, any predecessor or subsidiary), the Board of Directors of the Company or the Committee in respect of the Plan, shall be held or construed to confer upon any person any legal right to receive, or any interest in, a Bonus or any other benefit under the Plan, or any legal right to be continued in the employ of the Company unless otherwise provided by the Committee by contract or agreement. The Company expressly reserves any and all rights to discharge an Executive in its sole discretion, without liability of any person, entity or governing body under the Plan or otherwise. Notwithstanding any other provision hereof and notwithstanding the
fact that the Performance Target(s) have been attained and/or the individual maximum amounts pursuant to Section 4.2 have been calculated, the Company shall have no obligation to pay any Bonus hereunder nor to pay the maximum amount so calculated, unless the Committee otherwise expressly provides by written contract or other written commitment. </font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2<i>&nbsp;&nbsp;&nbsp;&nbsp;Discretion of Company, Board of Directors and Committee.</i>&nbsp;&nbsp;&nbsp;&nbsp;Any decision made or action taken by the Company or by the Board of Directors of the Company or by the Committee arising out of or in connection with the creation, amendment, construction, administration, interpretation and effect of the Plan shall be within the absolute discretion of such entity and shall be conclusive and binding upon all persons. No member of the Committee shall have any personal liability for actions taken or omitted under the Plan by the member or any other person. </font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3<i>&nbsp;&nbsp;&nbsp;&nbsp;Absence of Liability</i>.&nbsp;&nbsp;&nbsp;&nbsp;A member of the Board of Directors of the Company or a member of the Committee of the Company or any officer of the Company shall not be personally liable for any act or inaction hereunder, whether of commission or omission. </font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4<i>&nbsp;&nbsp;&nbsp;&nbsp;No Funding of Plan.</i>&nbsp;&nbsp;&nbsp;&nbsp;The Company shall not be required to fund or otherwise segregate any cash or any other assets which may at any time be paid to Participants under the Plan. The Plan shall constitute an &#147;unfunded&#148; plan of the Company. The Company shall not, by any provisions of the Plan, be deemed to be a trustee of any property, and any obligations of the Company to any Participant under the Plan shall be those of a debtor and any rights of any Participant or former Participant shall be limited to those of a general unsecured creditor. </font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5<i>&nbsp;&nbsp;&nbsp;&nbsp;Non-Transferability of Benefits and Interests.</i>&nbsp;&nbsp;&nbsp;&nbsp;Except as expressly provided by the Committee, no benefit payable under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and</font></p>

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<font size="2" face="Times New Roman">any such attempted action shall be void and no such benefit shall be in any manner liable for or subject to debts, contracts, liabilities, engagements or torts of any Participant or former Participant. This Section 5.5 shall not apply to an assignment of a contingency or payment due after the death of the Executive to the deceased Executive&#146;s legal representative or beneficiary. </font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6<i>&nbsp;&nbsp;&nbsp;&nbsp;Law to Govern.</i>&nbsp;&nbsp;&nbsp;&nbsp;All questions pertaining to the construction, regulation, validity and effect of the provisions of the Plan shall be determined in accordance with the internal laws of the State of Indiana. </font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7<i>&nbsp;&nbsp;&nbsp;&nbsp;Non-Exclusivity.</i>&nbsp;&nbsp;&nbsp;&nbsp;Subject to Section 5.8, the Plan does not limit the authority of the Company, the Board of Directors of the Company or the Committee, or any subsidiary of the Company, to grant awards or authorize any other compensation under any other plan or authority, including, without limitation, awards or other compensation based on the same Performance Target(s) used under the Plan. </font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8<i>&nbsp;&nbsp;&nbsp;&nbsp;Section 162(m) Conditions; Bifurcation of Plan.</i>&nbsp;&nbsp;&nbsp;&nbsp;It is the intent of the Company that the Plan and Bonuses paid hereunder satisfy and be interpreted in a manner, that, in the case of Participants who are or may be persons whose compensation is subject to Section 162(m), satisfies any applicable requirements as performance-based compensation. Any provision, application or interpretation of the Plan inconsistent with this intent to satisfy the standards in Section 162(m) of the Code shall be disregarded. Notwithstanding anything to the contrary in the Plan, the provisions of the Plan may at any time be bifurcated by the Board of Directors of the Company or the Committee in any manner so that certain provisions of the Plan or any Bonus intended (or required in order) to satisfy the applicable requirements of Section 162(m) are only applicable to persons
whose compensation is subject to Section 162(m). </font></p>
<p>
<font size="2" face="Times New Roman"><b>Section 6.&nbsp;&nbsp;&nbsp;&nbsp;Amendments, Suspension or Termination of Plan </b></font></p>
<p>
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise expressly agreed to in writing by the Committee, the Board of Directors of the Company or the Committee may, from time to time amend, suspend or terminate, in whole or in part, the Plan, and if suspended or terminated, may reinstate any or all of the provisions of the Plan; provided no amendment, suspension or termination of the Plan shall in any manner affect any Bonus theretofore granted pursuant to the Plan (whether or not the applicable Performance Targets have been attained) without the consent of the Participant to whom the Bonus was granted. Notwithstanding the foregoing, no amendment may be effective without Board of Directors of the Company and/or shareholder approval if such approval is necessary to comply with the applicable rules under Section 162(m) of the Code. </font></p>


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  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td width="40%" valign="top">
  <p><font size="2" face="Times New Roman"><b>Approved   by the Board of</b></font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p><font size="2" face="Times New Roman"><b>Directors   of Shoe Carnival, Inc.</b></font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p><font size="2" face="Times New Roman"><b>as of   March 13, 2006</b></font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p><font size="2" face="Times New Roman"><b>Approved by the Shareholders of</b></font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p><font size="2" face="Times New Roman"><b>Shoe Carnival, Inc.</b></font></p>  </td>
 </tr>
 <tr>
  <td  valign="top">
  <p><font size="1" face="Times New Roman">&nbsp;</font></p>  </td>
  <td  valign="top">
  <p><font size="2" face="Times New Roman"><b>as of   June&nbsp;12, 2006</b></font></p>  </td>
 </tr>
</table>

<p><font size=1 face="Times New Roman">&nbsp;</font></p>



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