Document:

Executive Severance Agreement

 Exhibit 10.8 
  
 EXECUTIVE SEVERANCE AGREEMENT 
  

THIS EXECUTIVE SEVERANCE AGREEMENT (this “Agreement”) between Yellow Roadway Corporation, a Delaware corporation
(“Yellow”) and [name] (the “Executive”), 
  
 W I T N E S S E T H: 
  
 WHEREAS, the duly authorized Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of
Yellow or the Board, has approved Yellow entering into revised severance agreements with key executives of Yellow and its Subsidiaries (collectively, the “Corporation”); 
  
 WHEREAS, the duly authorized Committee or the Board has selected the Executive as a key executive of the Corporation;
and 
  
 WHEREAS, should Yellow receive any proposal from a
third person concerning a possible Business Combination (defined below) with, or acquisition of equity securities of, Yellow, the Board believes it important that the Corporation and the Board be able to rely upon the Executive to continue in his
position, and that Yellow have the benefit of the Executive performing his duties without his being distracted by the personal uncertainties and risks created by such a proposal; 
  
 NOW, THEREFORE, the parties agree as follows: 
  
 1. Definitions. As used in this Agreement, the following capitalized terms shall have the meanings given the terms in
this Section 1. 
  

	(a)	“Business Combination” means any transaction that is referred to as such in the Certificate of Incorporation of Yellow, as amended. 

 

	(b)	“Cause” means 

  

	 	(1)	a conviction of a felony involving moral turpitude by a court of competent jurisdiction that is no longer subject to direct appeal, 

  

	 	(2)	conduct that is materially and demonstrably injurious to Yellow, or 

  

	 	(3)	the Executive’s willful engagement in one or more acts of dishonesty resulting in material personal gain to the Executive at the expense of Yellow. 

  

	(c)	“Change of Control,” for the purposes of this Agreement, shall be deemed to have taken place if: 

  

	 	(1)	a third person, including a “group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, purchases or otherwise acquires shares of the
Corporation after the date of this Agreement and as a result of the purchase or acquisition becomes the beneficial owner of shares of the Corporation having 20% or more of the total number of votes that may be cast in any election of directors of
Yellow; or 

  

	 	(ii)	as the result of, or in connection with any cash tender or exchange offer, merger or other Business Combination, or contested election, or any combination of the those transactions,
the Continuing Directors shall cease to constitute a majority of the Board of Yellow or any successor to Yellow. 

	(d)	“Continuing Director” means a director of Yellow who meets the definition of Continuing Director contained in the Certificate of Incorporation of Yellow, as
amended. 

  

	(e)	“Normal Retirement Age” means the last day of the calendar month in which the Executive’s 65th birthday occurs. 

  

	(f)	“Permanent Disability” means, as determined in the reasonable discretion of the Board or the duly authorized Committee, a physical or mental condition that
permanently renders the Executive incapable of exercising the duties and responsibilities of the position the Executive held immediately prior to any Change of Control. 

  

	(g)	“Subsidiary” means any domestic or foreign entity, of which Yellow or its Subsidiaries directly or indirectly owns a majority of the entity’s shares or
other equity interests normally entitled to vote in electing directors or selecting management. 

  

	(h)	“Target Bonus” means the incentive compensation that the Board or the duly authorized Committee set or approved, that the Corporation has targeted to pay the
Executive if the Executive, the Corporation or a Subsidiary achieves certain specified objectives that the Board or the duly authorized Committee has outlined or approved. The term “Target Bonus” for the year of a Termination means
the Target Bonus of the Executive calculated as if the Executive were entitled to receive 100% of the Target Bonus for the relevant period without regard to whether the specified objectives are actually achieved. 

  

	(i)	Construction & Interpretation. As used in this Agreement, unless the context expressly requires the contrary, references to Sections shall mean the sections and
subsections of this Agreement; references to “including” shall mean “including (without limitation)”; references to a “person” shall mean both legal entities and natural persons; references to the singular shall include
the plural and vice versa; and references to the masculine shall include the feminine and neutral, and vice versa. 

  
 2. Services During Certain Events. If a third person begins a tender or exchange offer for the shares of the Corporation, circulates a proxy to
shareholders of the Corporation, or takes other steps seeking to effect a Change of Control, the Executive agrees that the Executive will not voluntarily leave the employ of the Corporation without the consent of the Corporation and will render the
services contemplated in the recitals to this Agreement, until the third person has abandoned or terminated the third person’s efforts to effect a Change of Control or until 90 days after a Change of Control has occurred. If the Executive fails
to comply with the provisions of this Section 2, the Corporation will suffer damages that are difficult, if not impossible, to ascertain. Accordingly, should the Executive fail to comply with the provisions of this Section 2, the Corporation shall
retain the amounts that would otherwise be payable to the Executive (other than accrued salary under Section 4(a) and normal health, welfare and retirement benefits until the date of the Executive’s termination) under this Agreement as fixed,
agreed and liquidated damages but shall have no other recourse against the Executive. 
  
 3. Termination After or in Connection With a Change of Control. For purposes of this Agreement, the term “Termination” shall include the following in this Section 3: 
  

	(a)	the Corporation’s termination of the Executive’s employment with the Corporation within two years after a Change of Control for any reason other than death, Permanent
Disability, retirement at or after his Normal Retirement Age or Cause; 

  

	(b)	the Corporation’s termination of the employment of the Executive with the Corporation, for any reason other than death, Permanent Disability, retirement at or after his Normal
Retirement Age or Cause, if the termination occurs at any time between: 

  

	 	(1)	the date the Corporation enters into a definitive agreement or files a proxy statement, or the date a third person begins a tender or exchange offer, in each case, in connection
with a transaction that would constitute a Change of Control, or the date the Corporation takes other steps seeking to effect a Change of Control, and 

  

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	 	(2)	the date the Change of Control transaction is either consummated, abandoned or terminated (for this purpose, the Board shall have the sole and absolute discretion to determine that
a proposed transaction has been abandoned), or 

  

	(c)	the resignation of the Executive after the occurrence of any of the following events within two years after a Change of Control: 

  

	 	(1)	an adverse change of the Executive’s title or a reduction or adverse change in the nature or scope of the Executive’s authority or duties from those the Executive
exercised and performed immediately prior to the Change of Control; 

  

	 	(2)	a transfer of the Executive to a location that is more than 35 miles away from the location where the Executive was employed immediately prior to the Change of Control;

  

	 	(3)	a substantial increase occurs in the amount of time the Executive is required to spend traveling (for this purpose, a “substantial increase” will be deemed to occur if the
Executive is required to travel in an amount greater than 30% more in any calendar year, measured in number of days, as compared to the average number of days the Executive was required to travel during the three preceding calendar years).

  

	 	(4)	any reduction in the rate of the Executive’s annual salary below his rate of annual salary immediately prior to the Change of Control; or 

  

	 	(5)	any reduction in the level of the Executive’s fringe benefits or bonus below a level consistent with the Corporation’s practice prior to the Change of Control, other than
changes applicable to all similarly situated executives of the Corporation. 

  
 4. Termination Payments. In the event of a Termination, Yellow shall provide to the Executive the following benefits: 
  

	(a)	Yellow shall pay to the Executive, in accordance with its normal payroll policies, the compensation and benefits that the Executive accrued through the date of Termination. This
amount shall include the pro rata amount of the Executive’s Target Bonus for the year that includes the date of Termination. 

  

	(b)	Yellow shall pay to the Executive, on or before the Executive’s last day of employment with the Corporation, as additional compensation for services rendered to the
Corporation, a lump sum cash amount (subject to the minimum applicable federal, state or local lump sum withholding requirements, if any, unless the Executive requests that a greater amount be withheld) equal to two times the sum of:

  

	 	(1)	the Executive’s current base salary, and 

  

	 	(2)	the Executive’s Target Bonus in effect for the year that includes the date of the Executive’s Termination (or if no such Target Bonus has been set, the Target Bonus for
the prior year). 

  
 If there are fewer than 120
whole or partial months remaining from the date of the Executive’s Termination to his Normal Retirement Age, in lieu of the amount described above in this Section 4(b), Yellow shall pay to the Executive, on or before the Executive’s last
day of employment with the Corporation, as additional compensation for services rendered to the Corporation, a lump sum cash amount (subject to the minimum applicable federal, state or local lump sum withholding requirements, if any, unless the
Executive requests that a greater amount be withheld) equal to three times the sum of: 
  

	 	(3)	the Executive’s current base salary, and 

  

	 	(4)	the Executive’s Target Bonus in effect for the year that includes the date of the Executive’s Termination. 

  

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	(c)	During the “Applicable Period” (defined below), following the Executive’s Termination, the Corporation shall arrange to provide the Executive with
substantially similar benefits to the benefits the Executive would have received if the Executive had remained an employee of the Corporation, including the applicable medical, dental, life insurance, short-term disability, long-term disability and
perquisite plans and programs covering key executives of the Corporation; provided that the Executive shall not be entitled to accrue any benefits after Termination under any 401(k) plan or defined benefit or contribution pension plan of the
Corporation. “Applicable Period” means: 

  

	 	(1)	if there are fewer than 120 whole or partial months remaining from the date of the Executive’s Termination to his Normal Retirement Date, three years, or

  

	 	(2)	if Section 4(c)(1) above is not applicable, two years, 

  
 in each case, from the date of the Executive’s termination. 
  

	(d)	The Executive shall be entitled to the Gross-Up Payment, if any, described in Section 6. 

  
 5. Equity Grants and Awards. In the event of a Change of Control, all options to acquire shares of Yellow, all shares
of restricted Yellow stock, all performance or share units and all other equity or phantom equity incentives that the Corporation granted the Executive under any plan of the Corporation, including Yellow’s 1992, 1996, 1997 and 1999 Stock Option
Plans, Yellow’s 2002 Stock Option and Share Award Plan, Yellow’s Executive Performance Plan, as amended, Yellow’s 2004 Long-Term Incentive and Equity Award Plan, and the 2004 Long-Term Incentive Plan, as amended from time to time,
shall become immediately vested, exercisable and non-forfeitable and all conditions of any grant or award (including any required holding periods) shall be deemed to have been satisfied. If the Executive is a participant in Yellow’s 2004
Long-Term Incentive Plan or any similar or successor plan, 
  

	(a)	for any incomplete performance period under the plan, the Corporation shall pay the Executive any cash or equity component upon the Change of Control that the plan provides only if
the plan so provides, assuming that the Corporation would meet a Target performance for each period; 

  

	(b)	for any completed performance period under the plan, to the extent the Executive has not received the grant for the period: 

  

	 	(i)	if 75% or more of the data of the comparative companies necessary for completing the calculation is available, then the Executive shall receive the remaining portion of the grant
upon the Change of Control based on the data available seven days prior to the Change of Control; otherwise 

  

	 	(ii)	if less than 75% of the data of the comparative companies necessary for completing data is available, then the Executive shall receive the remaining portion of the grant upon the
Change of Control, assuming that the Corporation would meet the Target performance for the period; provided that if the Executive had previously received a partial grant and that grant exceeded a grant for Target performance, the Executive
shall not be required to return the prior grant; 

  
 and, in each
case, any equity component shall be treated in accordance with the first sentence of this Section 5. 
  
 6. Additional Payments by Yellow. 
  

	(a)	Gross-Up Payment. If it shall be determined that the Corporation’s payment or provision of any payment or benefit of any type to or for the benefit of the Executive,
whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (determined without regard to any additional payments required under this Section 6) (the “Total Payments”) would be
subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) (or any similar tax that may hereafter be imposed) or any interest or penalties with respect to the excise tax (the
excise tax, together with any interest and penalties, are collectively referred to as the “Excise Tax”), then 

  

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 Yellow shall pay the Executive an additional payment (a “Gross-Up Payment”) in an amount
such that after the Executive’s payment of all taxes (including all federal, state or local taxes and any interest or penalties imposed with respect to those taxes), including any Excise Tax, imposed upon the Gross-Up Payment, the Executive
retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Total Payments. Yellow shall pay the Gross-Up Payment promptly following the Accounting Firm’s (defined below) determination described in Section 6(b) or in
accordance with Section 6(c). 
  

	(b)	Accounting Firm Determination. An independent accounting firm that Yellow retains (the “Accounting Firm”) shall make all determinations that this Section 6
requires, including whether a Gross-Up Payment is required and the amount of the Gross-Up Payment. Yellow shall cause the Accounting Firm provide detailed supporting calculations both to Yellow and the Executive within 15 business days of the date
of Termination, if applicable, or such earlier time that Yellow requests. If the Accounting Firm determines that the Executive is not required to pay an Excise Tax, the Accounting Firm shall furnish the Executive with an opinion that the Executive
has substantial authority not to report any Excise Tax on his federal income tax return. The Accounting Firm’s determination shall be binding upon Yellow and the Executive. As a result of the uncertainty in the application of Section 4999 of
the Code at the time of the Accounting Firm’s initial determination, it is possible that Gross-Up Payments that Yellow will not have been made should have been made (“Underpayment”) consistent with the calculations that this
Agreement requires. If Yellow exhausts its remedies pursuant to Section 6(c) and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and
Yellow shall pay the Underpayment promptly to or for the benefit of the Executive. Yellow shall promptly pay all expenses of the Accounting Firm. 

  

	(c)	Notification Required. The Executive shall notify Yellow in writing of any Internal Revenue Service claim that, if successful, would require Yellow’s payment of the
Gross-Up Payment. The Executive shall give Yellow the notification as soon as practicable but no later than ten business days after the Executive knows of the claim and shall apprise Yellow of the nature of such claim and the date on which such
claim is requested to be paid; provided that the Executive’s failure to give the notice within the 10-day period shall only prejudice the Executive’s rights pursuant to Section 6 to the extent that Yellow’s ability to reduce
the amount of the Gross-Up Payment have been prejudiced. The Executive shall not pay the claim prior to the expiration of the 30-day period following the date on which the Executive gives notice to Yellow (or such shorter period ending on the date
that any payment of taxes with respect to the claim is due). If Yellow notifies the Executive in writing prior to the expiration of the period that it desires to contest the claim, the Executive shall: 

  

	 	(1)	give Yellow any information that Yellow reasonably requests relating to the claim, 

  

	 	(2)	take such action in connection with contesting the claim as Yellow shall reasonably request in writing from time to time, including, accepting legal representation with respect to
the claim by an attorney that Yellow reasonably selects, 

  

	 	(3)	cooperate with Yellow in good faith to effectively contest the claim, 

  

	 	(4)	permit Yellow to participate in any proceedings relating to the claim; provided, that Yellow shall bear and pay directly all costs and expenses (including additional interest
and penalties) incurred in connection with the contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax, including interest and penalties, imposed as a result of the representation and
payment of costs and expenses. 

  
 Without
limitation on the foregoing provisions of this Section 6(c), Yellow shall control all proceedings taken in connection with the contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of a claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund, or contest the claim in any permissible manner. The Executive agrees to prosecute the
contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as Yellow shall determine; provided, that if Yellow directs the Executive to pay the claim and sue for a
refund, Yellow 
  

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 shall advance the amount of the payment to the Executive, on an interest-free basis and shall indemnify
and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax, including interest or penalties, imposed with respect to the advance or with respect to any imputed income with respect to the advance; and further
provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of the Executive with respect to which the contested amount is claimed to be due is limited solely to the contested amount. Yellow’s
control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable under this Agreement and the Executive shall be entitled to settle or contest, as the case may be, any other issue that the Internal Revenue
Service or any other taxing authority raises. 
  

	(d)	Repayment. If, after the Executive’s receipt of an amount that Yellow paid or advanced pursuant to this Section 6, the Executive becomes entitled to receive a refund
with respect to the claim, the Executive shall (subject to Yellow’s complying with the requirements of this Section 6), promptly pay to Yellow the amount of the refund (together with any interest paid or credited thereon after taxes applicable
thereto). If, after the Executive’s receipt of an amount that Yellow paid or advanced pursuant to this Section 6, a determination is made that the Executive shall not be entitled to any refund with respect to the claim and Yellow does not
notify the Executive in writing of its intent to contest the denial of refund prior to the expiration of 30 days after the determination, then the payment or advance shall be forgiven and shall not be required to be repaid and the amount of the
payment or advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid. 

  
 7. General. 
  

	(a)	Confidentiality. The Executive shall hold in a fiduciary capacity for the benefit of the Corporation all data, reports and other information relating to the business of the
Corporation that comes into the possession of the Executive during the Executive’s employment with the Corporation (collectively, “Confidential Information”). During the Executive’s employment with the Corporation and
after termination of the Executive’s employment, the Executive agrees: 

  

	 	(i)	to take all such precautions as may be reasonably necessary to prevent the disclosure to any third person of any of the Confidential Information; 

  

	 	(ii)	not to use for the Executive’s own benefit any of the Confidential Information; and 

  

	 	(iii)	not to aid any other person in the use of the Confidential Information in competition with the Corporation; provided that nothing in this Agreement shall prohibit the
Executive from disclosing or using any Confidential Information: 

  

	 	(A)	in the performance of the Executive’s duties as an employee of the Corporation, 

  

	 	(B)	as required by applicable law, 

  

	 	(C)	in connection with the enforcement of the Executive’s rights under this Agreement or any other agreement with the Corporation, 

  

	 	(D)	in connection with the defense or settlement of any claim, suit or action brought or threatened against the Executive by or in the right of the Corporation, or

  

	 	(E)	with the prior written consent of the Board. 

  
 Notwithstanding any provision contained herein to the contrary, the term “Confidential Information” shall not be deemed to include any
general knowledge, skills or experience acquired by the Executive or any knowledge or information known or available to the public in general. The Executive further agrees that, within 90 days after termination of the Executive’s employment for
any reason, the Executive will surrender to the Corporation all Confidential Information, and any copies of Confidential Information, in 
  

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 his possession and agrees that all the materials and copies, are at all times the property of the
Corporation. Notwithstanding the foregoing, the Executive shall be permitted to retain copies of, or have access to, all Confidential Information relating to any disagreement, dispute or litigation (pending or threatened) involving the Executive.

  

	(b)	Remedies. In the event of a breach or threatened breach by the Executive of the provisions of Section 7(a), the Corporation shall be entitled to an injunction restraining the
Executive from violating Section 7(a) without the necessity of posting a bond. Nothing herein shall be construed as prohibiting the Corporation from pursuing any other remedies available to it at law or in equity. The parties agree that the
provisions of this Section 7(a) shall survive the termination of the Executive’s employment with the Corporation, as the continuation of this covenant is necessary for the protection of the Corporation. 

  

	(c)	Payment Obligations Absolute. Yellow’s obligation to pay the Executive the compensation and to make the arrangements provided herein shall be absolute and unconditional
and shall not be affected by any circumstance, including any setoff, counterclaim, recoupment, defense or other right that the Corporation may have against the Executive or anyone else, except as provided in Section 2 and except for any setoff,
counterclaim, recoupment, defense or other right that the Corporation may have against the Executive for actions that the Executive may have taken that fall within the definition of Cause (in Section 1(b)) irrespective of whether the Corporation
terminated the Executive for Cause or not. All amounts that Yellow owes under this Agreement shall be paid without notice or demand. Each and every payment that Yellow makes under this Agreement shall be final, and Yellow will not seek to recover
all or any part of the payment from the Executive or from whosoever may be entitled to the payment, for any reason whatsoever. The Executive shall not be obligated to seek other employment in mitigation of the amounts payable or arrangements made
under any provision of this Agreement, and the obtaining of any such other employment shall in no event affect any reduction of Yellow’s obligations to make the payments that this Agreement requires. 

  

	(d)	Obligations to Pay Costs. If the Corporation terminates the Executive, and if the Executive successfully asserts a claim, action or proceeding against the Corporation for
benefits under this Agreement or any other agreement between the Executive and the Corporation, the Corporation shall promptly pay or reimburse the Executive for all costs and expenses, including court costs and attorneys’ fees, that the
Executive incurs in connection with the claim, action or proceeding. For purposes of this Section 7(e), the Executive will be deemed to have successfully asserted a claim, action or proceeding against the Corporation if, as a result of the claim,
action or proceeding, the Corporation pays to the Executive, under this Agreement or any other agreement between the Executive and the Corporation, any amounts in addition to the amounts the Executive would be entitled to receive upon a termination
for Cause. 

  

	(e)	Successors. This Agreement shall be binding upon and insure to the benefit of the Executive and his estate and the Corporation and any successor of the Corporation, but the
Executive may neither assign nor pledge this Agreement or any rights arising under this Agreement. 

  

	(f)	Severability. Any provision in this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to the jurisdiction, be ineffective only to the extent of the
prohibition or unenforceability without invalidating or affecting the remaining provisions of this Agreement, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable the provision in any other
jurisdiction. 

  

	(g)	Controlling Law. The laws of the State of Delaware, without reference to its law on conflicts of law, shall govern this Agreement shall in all respects.

  

	(h)	Termination. A majority of the Continuing Directors may terminate this Agreement upon notifying the Executive; except that a termination shall not be made, and if made shall
have no effect, 

  

	 	(1)	within two years after the Change of Control in question, or 

  

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	 	(2)	during any period of time when Yellow has knowledge that any third person has taken steps reasonably calculated to effect a Change of Control until, in the opinion of a majority of
the Continuing Directors the third person has abandoned or terminated his efforts to effect a Change of Control. Any decision by a majority of the Continuing Directors that the third person has abandoned or terminated his efforts to effect a Change
of Control shall be conclusive and binding on the Executive. 

  

	(i)	This Agreement amends, restates, replaces and supercedes that Executive Severance Agreement dated as of [date] between the Corporation and the Executive in its entirety.

  

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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the
     day of             , 20    . 
  

					
	EXECUTIVE:	 	YELLOW ROADWAY CORPORATION
			
	
	 	By:	 	  

	[name]	 	 	 	Daniel J. Churay
	 	 	 	 	Vice President, General Counsel
	 	 	 	 	and Secretary

  

 -9-1997 Stock Option Plan

 Exhibit 10.11 
  
 YELLOW CORPORATION 
 1997 STOCK OPTION PLAN 
  

	1.	PURPOSE- 

  
 The Yellow Corporation 1997 Stock Option Plan is designed to enable qualified executive, managerial, supervisory and professional personnel of Yellow Corporation and its Subsidiaries to acquire or increase their
ownership of common stock of the Company on reasonable terms. The opportunity so provided is intended to foster in participants a strong incentive to put forth maximum effort for the continued success and growth of the Company and its Subsidiaries,
to aid in retaining individuals who put forth such efforts, and to assist in attracting the best available individuals in the future. 
  

	2.	DEFINITIONS 

  
 When used herein, the following terms shall have the meaning set forth below: 
  
 2.1 “Award” shall mean an Option or SAR. 
  
 2.2 “Board” means the Board of Directors of Yellow Corporation. 
  
 2.3 “Committee” means the members of the Board’s Compensation Committee who are non-employee directors as
defined in Rule 16b-3 of the Securities and Exchange Commission as it exists on the effective date of the Plan or as subsequently amended or interpreted and are “outside directors” within the meaning of Section 162(m) of the Internal
Revenue Code of 1986 and the regulations thereunder. 
  
 2.4
“Company” means Yellow Corporation. 
  
 2.5 “IRC
‘86” means the Internal Revenue Code of 1986, as in effect as of the effective date of the Plan or as thereafter amended, and applicable regulations. 
  

2.6 “Fair Market Value” means with respect to the Company’s Shares the closing price of the Shares as reported by NASDAQ or if the
closing price is not reported, the bid price of the Shares as reported by NASDAQ on the date on which the value is to be determined or, if the stock did not trade on that date, the next preceding date on which such stock traded. 
  
 2.7 “Grantee” means a person to whom an Award is made. 

 
 2.8 “Non-Qualified Stock Option” or “NQSO” means an
Option awarded under the Plan which by its terms and conditions is not, and is not intended to be, an “Incentive Stock Option” as defined by IRC ’86. 
  
 2.9 “Option “ means the right to purchase, at a price, for a term, under conditions, and for cash or other
considerations fixed by the Committee in accordance with the Plan, and subject to such other limitations and restrictions as the Plan and the Committee impose, a number of shares specified by the Committee. 
  
 2.10 “Plan” means the Company’s 1997 Stock Option Plan.

  
 2.11 “SAR” means a right to surrender to the
Company all or a portion of an Option and to be paid therefor an amount, as determined by the Committee, no greater than the excess, if any, of (i) the Fair Market Value, on the date such right is exercised, of the Shares to which the Option or
portion thereof relates, over (ii) the aggregate option price of those Shares. 
  

 1 

 2.12 “Shares” means shares of the Company’s common stock or, if by reason of the
adjustment provisions hereof any rights under an Award under the Plan pertain to any other security, such other security. 
  
 2.13 “Subsidiary” means any business, whether or not incorporated, in which the Company, at the time an Award is granted to an employee thereof,
or in other cases, at the time of reference, owns directly or indirectly not less than 50% of the equity interest. 
  
 2.14 “Successor” means the legal representative of the estate of a deceased Grantee or the person or persons who shall acquire the right to
exercise an Option or an SAR, by bequest or inheritance or by reason of the death of the Grantee, as provided in accordance with Section 9 hereof. 
  
 2.15 “Term” means the period during which a particular Option or SAR may be exercised. 
  
 2.16 “QDRO” means a qualified domestic relations order as defined
by IRC ‘86 or Title I of the Employee Retirement Income Security Act, or the rules thereunder. 
  

	3.	ADMINISTRATION OF THE PLAN 

  
 3.1 The Plan shall be administered by the Committee. 
  
 3.2 The Committee shall have plenary authority, subject to the provisions of the Plan, to determine when and to whom Awards shall be granted, the Term of
each Award, the number of Shares covered by it, the participation by Grantee in other plans, and any other terms or conditions of each such Award. The Committee may grant such additional benefits in connection with any Award as it deems appropriate.
The number of Shares, the Term, the other terms and conditions of a particular kind of Award and any additional benefits granted in connection with any Award need not be the same, even as to Awards made at the same time. The Committee’s actions
in making Awards and fixing their size, Term and other terms and conditions and in granting any additional benefits in connection with any Award shall be conclusive on all persons. 
  
 3.3 The Committee shall have the sole responsibility for construing and interpreting the Plan, for establishing and amending
such rules and regulations as it deems necessary or desirable for the proper administration of the Plan, and for resolving all questions arising under the Plan. Any decision or action taken by the Committee arising out of or in connection with the
construction, administration, interpretation and effect of the Plan and of its rules and regulations shall, to the extent permitted by law, be within its absolute discretion, except as otherwise specifically provided herein, and shall be conclusive
and binding upon all Grantees, all Successors, and any other persons, whether that person is claiming under or through any Grantee or otherwise. 
  
 3.4 The Committee shall regularly inform the Board as to its actions with respect to all Awards under the Plan and the Terms and conditions of such Awards
in a manner, at such times, and in such form as the Board may reasonably request. 
  

	4.	ELIGIBILITY 

  
 Awards may be made under the Plan only to employees of the Company or a Subsidiary who have executive, managerial, supervisory or professional responsibilities. Officers shall be employees for this purpose, whether or
not they are also Directors, but a Director who is not such an employee shall not be eligible to receive an Award. Awards may be made to eligible employees whether or not they have received prior Awards, under the Plan or under any previously
adopted plan, and whether or not they are participants in other benefit plans of the Company. In making a determination concerning the granting of Awards to eligible employees, the Committee may take into account the nature of the services they have
rendered or that the Committee expects they will render, their present and potential contributions to the success of the business, the number of years of effective service they are expected to have and such other factors as the Committee in its sole
discretion shall deem relevant. 
  

 2 

	5.	SHARES SUBJECT TO PLAN 

  
 Subject to adjustment as provided in Section 18 below, 1,400,000 Shares are hereby reserved for issuance in connection with Awards under the Plan. The
Shares so issued may be unreserved Shares held in the treasury however acquired or Shares which are authorized but unissued. Any Shares subject to issuance upon exercise of Options shall once again be available for issuance in satisfaction of Awards
to the extent that (i) cash is issued in satisfaction of the exercise of such Shares or (ii) the Option expires or terminates unexercised as to any Shares covered thereby. Subject to adjustment as provided in Section 18 below, the maximum number of
Shares with respect to which options or SARs may be granted during any calendar year to any employee under the Plan shall be 200,000 Shares. 
  

	6.	GRANTING OF OPTIONS 

  
 6.1 Subject to the terms of the Plan, the Committee may from time to time grant Options to eligible employees. 
  
 6.2 The purchase price of each Share subject to Option shall be fixed by the
Committee, but shall not be less than 100% of the Fair Market Value of the Share on the last business day prior to the date the Option is granted. 
  
 6.3 Each Option shall expire and all right to purchase Shares thereunder shall cease on the date fixed by the Committee, which subject to the terms of the
Plan, shall not be later than the tenth anniversary of the grant date of the Option. 
  
 6.4 Each Option shall become exercisable at the time, and for the number of Shares, fixed by the Committee. Except to the extent otherwise provided in or pursuant to Sections 9 and 10, no Option shall become
exercisable as to any Shares prior to the first anniversary of the date on which the Option was granted. 
  

	7.	STOCK APPRECIATION RIGHTS 

  
 7.1 The Committee may, in its discretion, grant an SAR to the holder of an Option, either at the time the Option is granted or by amending the instrument
evidencing the grant of the Option at any time after the Option is granted and more than six months before the end of the Term of the Option, so long as the grant is made during the period in which grants of SARs may be made under the Plan.

  
 7.2 Each SAR shall be for such Term, and shall be subject to
such other terms and conditions, as the Committee shall impose. The terms and conditions may include Committee approval of the exercise of the SAR, limitations on the time within which and the extent to which such SAR shall be exercisable,
limitations on the amount of appreciation which may be recognized with regard to such SAR, and specification of what portion, if any, of the amount payable to the Grantee upon his exercise of an SAR shall be paid in cash and what portion, if any,
shall be payable in Shares. If and to the extent that Shares are issued in satisfaction of amounts payable on exercise of an SAR, the Shares shall be valued at their Fair Market Value on the date of exercise. 
  
 7.3 Except to the extent otherwise provided in or pursuant to Sections 9 and
10, no SAR shall be exercisable during the first six months after its date of grant. 
  
 7.4 Upon exercise of an SAR the Option, or portion thereof, with respect to which such right is exercised shall be surrendered and shall not thereafter be exercisable. 
  

	8.	NON-TRANSFERABILITY OF RIGHTS 

  
 No rights under any Award shall be transferable otherwise than by will or the laws of descent and distribution or pursuant to a QDRO, and the rights, and
except to the extent otherwise provided in Section 12, the benefits, of any such Award may be exercised and received, respectively, during the lifetime of the Grantee only by him or by his guardian or legal representative or by an “alternate
payee” pursuant to a QDRO. 
  

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	9.	DEATH OR TERMINATION OF EMPLOYMENT 

  
 9.1 Subject to the provisions of the Plan, the Committee may make such provisions concerning exercise or lapse of Options or SARs on death or termination
of employment as it shall in its discretion determine. No such provision shall extend the Term of an Option or SAR, nor shall any such provision permit an Option or SAR to be exercised prior to six months after the date on which it was granted,
except in the event of death or termination by reason of disability. 
  
 9.2 Transfers of employment between the Company and a Subsidiary, or between Subsidiaries, shall not constitute termination of employment for purposes of any Award. The Committee may specify in the terms and conditions of an Award whether
any authorized leave of absence or absence for military or government service or for any other reason shall constitute a termination of employment for purposes of the Award and the Plan. 
  

	10.	PROVISIONS RELATING TO TERMINATION OF THE COMPANY’S SEPARATE EXISTENCE 

  

The Committee may provide that in the event that the Company is to be wholly or partly liquidated, or agrees to participate in a merger, consolidation
or reorganization in which it, or an entity controlled by it, is not the surviving entity, any or all Options and SARs granted under the Plan shall be immediately exercisable in full. 
  

	11.	WRITINGS EVIDENCING AWARDS 

  
 Each Award granted under the Plan shall be evidenced by a writing which may, but need not, be in the form of an agreement to be signed by the Grantee. The
writing shall set forth the nature and size of the Award, its Term, the other terms and conditions thereof, other than those set forth in the Plan, and such other information as the Committee directs. Acceptance of any benefits of an Award by the
Grantee shall be conclusively presumed to be an assent to the terms and conditions set forth therein, whether or not the writing is in the form of an agreement to be signed by the Grantee. 
  

	12.	EXERCISE OF RIGHTS UNDER AWARDS 

  
 12.1 A person entitled to exercise an Option or SAR may do so by delivery of a written notice to that effect specifying the number of Shares with respect
to which the Option or SAR is being exercised and any other information the Committee may prescribe. 
  
 12.2 The notice shall be accompanied by payment in full for the purchase price of any Shares to be purchased with such payment being made in cash; shares
of the Company’s common stock having a Fair Market Value equivalent to the purchase price of such Shares; a combination thereof; or cashless exercise pursuant to the Cashless Exercise Program offered by the Company. No Shares shall be issued
upon exercise of an Option until full payment has been made therefor. 
  
 12.3 The notice of exercise of an SAR shall be accompanied by the Grantee’s copy of the writing or writings evidencing the grant of the SAR and the related Option. 
  
 12.4 Upon exercise of an Option or SAR, the Grantee may request in writing that the Shares to be issued in satisfaction of
the Award be issued in the name of the Grantee and another person as joint tenants with right of survivorship or as tenants in common. 
  
 12.5 All notices or requests provided for herein shall be delivered to the Secretary of the Company. 
  

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	13.	EFFECTIVE DATE OF THE PLAN AND DURATION. 

  
 13.1 The Plan shall become effective on July 15, 1997, subject to stockholder approval at the 1998 Annual Meeting of Stockholders of the Company where
such approval is required by applicable SEC or stock market regulations. 
  
 13.2 No Awards may be granted under the Plan on or after July 16, 2007 although the terms of any Award may be amended at any time prior to the end of its Term in accordance with the Plan. 
  

	14.	DATE OF AWARD 

  
 The date of an Award shall be the date on which the Committee’s determination to grant the same is final, or such later date as shall be specified by
the Committee in connection with its determination. 
  

	15.	STOCKHOLDER STATUS 

  
 No person shall have any rights as a stockholder by virtue of the grant of an Award under the Plan except with respect to Shares actually issued to that
person. 
  

	16.	POSTPONEMENT OF EXERCISE 

  
 The Committee may postpone any exercise of an Option or SAR for such time as the Committee in its discretion may deem necessary in order to permit the
Company (i) to effect or maintain registration of the Plan or the Shares issuable upon the exercise of an Option or an SAR under the Securities Act of 1933, as amended, or the securities laws of any applicable jurisdiction, (ii) to permit any action
to be taken in order to comply with restrictions or regulations incident to the maintenance of a public market for its Shares, or (iii) to determine that such Shares and the Plan are exempt from such registration or that no action of the kind
referred to in (ii) above needs to be taken; and the Company shall not be obligated by virtue of any terms and conditions of any Award or any provision of the Plan to recognize the exercise of an Option or an SAR to sell or issue shares in violation
of the Securities Act of 1933 or the law of any government having jurisdiction thereof. Any such postponement shall not extend the Term of an Option or SAR. Neither the Company nor its directors or officers shall have any obligation or liability to
the Grantee of an Award, to the Grantee’s Successor or to any other person with respect to any Shares as to which the Option or SAR shall lapse because of such postponement. 
  

	17.	TERMINATION, SUSPENSION OR MODIFICATION OF PLAN 

  
 The Board may at any time terminate, suspend or modify the Plan. However, no termination, suspension or modification of the Plan shall adversely affect
any right acquired by any Grantee or any Successor under an Award granted before the date of such termination, suspension or modification, unless such Grantee or Successor shall consent; but it shall be conclusively presumed that any adjustment for
changes in capitalization as provided for herein does not adversely affect any such right. Any member of the Board who is an officer or employee of the Company or a Subsidiary shall be without vote on any proposed amendment to the Plan, or on any
other matter which might affect that member’s individual interest under the Plan. 
  

	18.	ADJUSTMENT FOR CHANGES IN CAPITALIZATION 

  
 Any increase in the number of outstanding Shares of the Company occurring through stock splits or stock dividends after the adoption of the Plan shall be
reflected proportionately in an increase in the aggregate number of Shares then available for the grant of Awards under the Plan, or becoming available through the termination, surrender or lapse of Awards previously granted but unexercised, and in
the number of Shares subject to Awards then outstanding; and a proportionate reduction shall be made in the per share option price as to any outstanding Options. Any fractional shares resulting from such adjustment shall be eliminated. If changes in
capitalization other than those considered above shall occur, the Board shall make such adjustment in the number or class of shares, remaining subject to Awards then outstanding and in the per share option price as the Board in its discretion may
consider appropriate to reflect such change in capitalization, and all such adjustments shall be conclusive upon all persons. 
  

 5 

	19.	DELIVERY OR SHARES IN LIEU OF CASH INCENTIVE AWARDS 

  
 19.1 Any employee otherwise eligible for an Award under the Plan who is eligible to receive a cash incentive payment from the Company under any management
incentive plan may make application to the Committee in such manner as may be prescribed from time to time by the Committee, to receive Shares from the Plan in lieu of all or any portion of such cash payment. 
  
 19.2 The Committee may in its discretion honor such application by
delivering Shares from the Plan to such employee equal in Fair Market Value to that portion of the cash payment otherwise payable to the employee under such incentive plan for which a Share delivery is to be made in lieu of cash payment. 

 
 19.3 Any Shares delivered to employees under the Plan in lieu of cash
incentive payments shall come from the aggregate number of Shares authorized for use by the Plan and shall not be available for any other Awards under the Plan. 
  
 19.4 Such applications and such delivery of Shares shall not be permitted on or after July 16, 2007. 
  

	20.	LOANS 

  
 20.1 The Company may make loans to Grantees for the sole purpose of exercising Option Awards under the Plan and meeting the Federal tax consequences of such exercise. Such loans shall be subject to the terms and
conditions established by the Committee from time to time which shall in all cases include those specific items contained in this Section 20 as well as such other items as may be established by the Committee. 
  
 20.2 No loan shall exceed the exercise price of the option to be exercised
plus the amount of Federal income taxes reasonably estimated to be due at the exercise of the option or within the next following seven month period. 
  
 20.3 No loan shall have a term exceeding five years subject to renewal at the discretion of the Committee. Notwithstanding any other terms of the loan,
each loan shall be fully due and payable on the loan recipient’s termination of employment, except that in the case of termination due to disability, the Committee at its discretion may extend the terms of the loan beyond termination.

  
 20.4 Interest shall be charged on the loan with a rate
established by the Committee but in no case less than an amount equal to any dividends payable during the term of the loan on the Shares being purchased by the Grantee at the exercise of the Option. Such minimum interest rate shall be determined by
dividing the dividends paid on such Shares during the preceding twelve months by the Option price for such Shares. 
  
 20.5 If such a loan is made to a Grantee, the Company shall not deliver a certificate or any shares purchased with the loan proceeds, until such time as
the loan is repaid. 
  

	21.	NO-UNIFORM DETERMINATION 

  
 The Committee’s determination under the Plan including, without limitation, determination of the persons to receive Awards, the form, amount and type
of Awards (e.g., NQSOs, SARs), the terms and provisions of Awards and the written material evidencing such Awards, the grant of additional benefits in connection with any Award, and the granting or rejecting of loans or applications for delivery of
stock in lieu of cash bonus or incentive payments need not be uniform and may be made selectively among otherwise eligible employees, whether or not such employees are similarly situated. 
  

	22.	TAXES 

  
 The Company is authorized to pay or withhold the amount of any tax attributable to any amounts payable under any Awards, and the Company may defer making payment of any Award if any such tax, charge or 

  

 6 

 
assessment may be pending until indemnification to its satisfaction. This authority shall include authority to withhold or receive Shares and to make cash
payments in respect thereof in satisfaction of an individual’s tax obligations. 
  

	23.	TENURE 

  
 An employee’s right, if any, to continue in the employ of the Company or a Subsidiary shall not be affected by the fact that he is a participant under this Plan. At the sole discretion of the Committee, an
employee terminated for cause may be required to forfeit all of his rights under the Plan, except as to Options or SARs already exercised. 
  

	24.	APPLICATION OF PROCEEDS 

  
 The proceeds received by the Company from the sale of its Shares under the Plan shall be used for general corporate purposes. 
  

	25.	OTHER ACTIONS 

  
 Nothing in the Plan shall be construed to limit the authority of the Company to exercise its corporate rights and powers, including, by way of
illustration and not by way of limitation, the right to grant options for proper corporate purposes otherwise than under the Plan to any employee or any other person, firm, corporation, association or other entity, or to grant options to, or assume
options of, any person in connection with the acquisition, by purchase, lease, merger, consolidation or otherwise, of all or any part of the business and assets of any person, firm, corporation, association or other entity. 
  

	26.	GOVERNING LAW 

  
 The Plan and all determinations made and actions taken pursuant hereto shall be governed by and construed in accordance with the laws of the State of
Delaware. 
  

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