Document:

Yellow Raodway Corporation Directors Compensation Plan

 Exhibit 10.1 
  
 YELLOW ROADWAY CORPORATION 
 DIRECTOR COMPENSATION PLAN 
  
 This Director Compensation Plan (this “Plan”) of Yellow Roadway Corporation, a Delaware corporation (the “Company”),
amends, restates and replaces the Directors Compensation Plan approved on October 19, 2004, in its entirety, and summarizes the director compensation of the Company. 
  

	1.	DEFINITIONS, ADMINISTRATION AND CONSTRUCTION 

  

	 	(a)	The following capitalized terms used in this Plan shall have the following meanings given to each of them in this Section 1(a): 

  
 “Annual Governance Cycle” means the period from
the Board meeting immediately following the Company’s Annual Meeting of Stockholders until the next such meeting the following year; 
  
 “Board” means the Board of Directors of the Company; 
  

“Committee” means a committee of the Board; 
  
 “Common Stock” means Company Common Stock, $1.00 par value per share; 
  
 “Compensation Committee” means the Compensation Committee of the Board; 
  
 “Equity Plan” means the Company’s 2004
Long-Term Incentive and Equity Award Plan or any other equity plan of the Company that permits the award of Common Stock or Common Stock derivatives to Participants pursuant to this Plan; and 
  
 “Participant” means a director of the Company
who is not an employee of the Company. 
  
 “Secretary”
means the Secretary of the Company. 
  

	 	(b)	The Compensation Committee shall administer this Plan. The Compensation Committee may adopt rules for the administration of this Plan as it may deem necessary or advisable. The
Compensation Committee shall administer this Plan in accordance with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), for deferrals made after December 31, 2004. The Compensation Committee has full and absolute
discretion in the exercise of each and every aspect of the rights, power, authority and duties retained or granted it under this Plan, including the authority to determine all facts, to interpret this Plan, to apply the terms of this Plan to the
facts determined, to make decisions based upon those facts and to make any and all other decisions required of it by this Plan, such as the right to benefits, the correct amount and form of benefits, 

 the determination of any appeal, the review and correction of the actions of any prior administrative
committee, and the other rights, powers, authority and duties specified in this paragraph and elsewhere in this Plan. Notwithstanding any provision of law, or any explicit or implicit provision of this document, any action taken, or finding,
interpretation, ruling or decision made by the Compensation Committee in the exercise of any of its rights, powers, authority or duties under this Plan shall be final and conclusive as to all parties, including without limitation all Participants,
former Participants and beneficiaries, regardless of whether the Compensation Committee or one or more of its members may have an actual or potential conflict of interest with respect to the subject matter of the action, finding, interpretation,
ruling or decision. No final action, finding, interpretation, ruling or decision of the Compensation Committee shall be subject to de novo review in any judicial proceeding. No final action, finding, interpretation, ruling or decision of the
Compensation Committee may be set aside unless it is held to have been arbitrary and capricious by a final judgment of a court having jurisdiction with respect to the issue. 
  

	 	(c)	Except as expressly stated to the contrary, references in this plan to “including” mean “including, without limitation” and to “persons” mean natural
persons and legal entities. 

  

	2.	RETAINERS. 

  

	 	(a)	From time to time, the Board (or at its direction, the Compensation Committee) may set retainers for Participants for their service as a member of the Board or one or more of its
Committees. Retainers for a Participant, including those for Committee chairs, may vary from those of other Participants. The current retainers for Participants are listed on Exhibit A. 

  

	 	(b)	Pursuant to this Plan and the Equity plan, at the beginning of each Annual Governance Cycle, each Participant shall be granted an award of shares of Common Stock equal in value to
50% of the then applicable level of annual Board and Committee retainers. For each Annual Governance Cycle, a Participant may elect to receive more than 50% and up to 100% of the then applicable level of annual Board and Board Committee retainers in
Common Stock. If the Participant so elects, the elected additional percentage of annual Board and Committee retainers shall be issued pursuant to this Plan and the Equity Plan to the Participant at the beginning of the Annual Governance Cycle for
which the election is made. A form of the annual election is included in Exhibit B. 

  

	 	(c)	For the purposes of determining the number of shares to issue pursuant to this Section 2 and any election pursuant to Section 3, the value of the Company’s Common Stock shall
be determined in accordance with the Equity Plan. If the Equity Plan does not specify a method to determine the value, the number of shares to be issued pursuant to this Section 2 shall be determined by reference to the closing price of the Common
Stock on the date of issuance. 

  

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	 	(d)	Annual retainers are intended to compensate Participants for each Annual Governance Cycle. A Participant who joins the Board during an Annual Governance Cycle shall receive annual
retainers that are pro-rated based on the number of whole or partial months of an Annual Governance Cycle in which the Participant first serves. The Company shall pay the joining Participant these retainers in cash in quarterly installments until
the beginning of the next Annual Governance Cycle in accordance with Section 2(d). 

  

	 	(d)	The Company shall pay to each Participant in cash any amount of retainers that are not paid to the Participant in Common Stock pursuant to this Section 2. The Company shall pay the
cash portion of the retainers to each Participant in four quarterly installments. The Company shall pay each installment to the Participant on the date of the first regular meeting of the Board for that quarter. If no such regular meeting is held
during a quarter, the Company shall pay the Participant the installment on the last day of the calendar quarter. 

  

	3.	MEETING FEES. 

  

	 	(a)	From time to time, the Board (or at its direction, the Compensation Committee) may set meeting fees for Participants for their attendance at meetings of the Board or one or more of
its Committees. The amount of the meeting fees for a Participant, including those for Committee chairs, may vary from those of other Participants. The current meeting fees for Participants are listed on Exhibit A. 

  

	 	(b)	Unless a valid deferral election is made pursuant to Section 4, meetings fees shall be due and payable to each Participant upon the Participant’s attendance at the applicable
meeting. 

  

	 	(c)	Meeting fees shall be paid in cash. 

  

	3.	EQUITY GRANTS. 

  
 From time to time, the Board (or at its direction, the Compensation Committee) may make grants of Common Stock or Common Stock derivatives (such as stock
options or restricted unit awards) to Participants as compensation for their service on the Board with such terms and conditions as are stated in the grant. The grant shall be made pursuant to this Plan and the terms of the Equity Plan. The current
equity grants are summarized on Exhibit A. 
  

	4.	COMPENSATION DEFERRAL. 

  

	 	(a)	Pursuant to a written election, a Participant may defer receipt of all of the Participant’s retainer fees that the Participant elects to receive in stock (under

  

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 Section 2) or all of the meeting fees (under Section 3), in each case, with respect to a year, until the
Participant’s termination of service on the Board (whether by death, disability, resignation, removal, failure to be reelected or otherwise) or until the earlier of January 1 in a year that the Participant specifies or the Participant’s
termination of service with the Board. The Company shall maintain an account for each Participant to record the amount of compensation so deferred and shall provide the Participant with an account statement at least annually. 
  

	 	(b)	A Participant must make a written deferral election for the following year prior to the beginning of each calendar year. Participants who have become a director during a calendar
year must make an election for the remaining portion of that year within 30 days of their election or appointment as a director. Initial elections with respect to this Plan must be made within 30 days of its adoption. A form of the annual election
is included in Exhibit 4B. This election should be delivered to the Secretary. 

  

	 	(c)	Upon the termination of the deferral, the Company shall issue and pay to the Participant the deferred shares, deferred dividends and additions on dividends and deferred cash meeting
fees in the Participant’s deferred account within a reasonable time and in accordance with the Code and regulations promulgated thereunder. 

  

	 	(d)	If the Company declares a dividend on its stock, the Company shall create an account on the books of the Company reflecting the cash value of the dividend based upon the number of
shares reflected in Participant’s stock account. On December 31 of each year, an annual addition shall be made to the Participant’s dividend account (for the purpose of simulating an investment return) in accordance with the formula as
follows: 

  
 X = A x B 
  
 Where 
  
 X is the amount of the annual addition 
  
 A is the discount interest rate on the first new 12 month U.S. Treasury Bills auctioned in such year. 
  
 B is the sum of the balances in the account on the last day of each month
of such year divided by 12. 
  
 If payment is made by reason of
death and the payment is made in a month other than January, a pro rata addition to the account shall be made immediately prior to payment in accordance with the formula as follows: 
  
 Y = C x D 
  

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 Where 
  
 Y is the amount of the pro rata addition. 
  
 C is the discount interest rate on the first new 12 month U.S. Treasury Bills auctioned in such year. 
  
 D is the sum of the balances in the account on the last day of each month
preceding payment in such year divided by 12. 
  

	 	(e)	The Company shall not pay any interest or any other addition on cash meeting fees deferred under the terms of this Plan. 

  

	 	(f)	If a Participant dies, the Company shall pay any amounts deferred under this Plan to the beneficiary or beneficiaries, if any, that the Participant designates to the Secretary in
writing during the Participant’s lifetime. During his/her lifetime, the Participant may revoke or change any designation of beneficiary by delivering the revocation or designation in writing to the Secretary. If no beneficiary is designated or
survives the Participant, then the accounts shall be issued and paid to the Participant’s personal representative. 

  

	 	(g)	The Participant understands that all stock and cash deferred hereunder (i.e., the balance of his/her accounts) are unfunded, will be represented by appropriate bookkeeping
entries and will be paid from the general assets of the Company when due pursuant to the terms of this Plan. Any such amounts due the Participant shall be unsecured, general obligations of the Company. 

  

	 	(h)	Stock and cash deferred under this Plan, and any and all rights thereto, shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, charge, garnishment, execution, or levy of any kind, either voluntary or involuntary. Any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or otherwise dispose of any rights to amounts deferred or
payable hereunder shall be void. 

  

	5.	GENERAL 

  

	 	(a)	None of this Plan, the Equity Plan, the grant of any award under this Plan or the Equity Plan or any other action taken pursuant to this Plan or the Equity Plan shall constitute or
be evidence of any agreement or understanding, express or implied, that the Company will retain a Participant for any period of time or at any particular rate or amount of compensation. 

  

	 	(b)	Except by the laws of decent and distribution in the event of a Participant’s death, the rights and benefits of this Plan may not be assigned or otherwise transferred. A
Participant shall cease to be a Participant under this Plan upon the Participant’s termination of his or her directorship with the Company whether by death, disability, retirement, resignation or removal. 

  

	 	(c)	Any notice to the Company that this Plan requires shall be in writing, addressed to the Secretary and be effective when the Secretary receives the notice. 

 

	 	(d)	This Plan and any determination or action taken respecting this Plan shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to
its law of conflicts of law. 

  

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 Exhibit A 
  
 Board Retainers as of July 15, 2004 
  
 Annual retainer = $30,000 
 Annual retainer for Committee Chairs = $5,000 
 Annual retainer for Committee members = $0 
  
 Meeting fees as of July 15, 2004 
  
 $1,500 for each Board meeting attended 
 $1,500 for each Committee meeting attended 
  
 Equity grants as of July 15, 2004 
  
 1,500 Restricted stock units vesting 500 units on each of the 1st, 2nd and 3rd anniversaries of the date of grant, which grant is to be made on the first meeting of the Board following the annual meeting of stockholders of the CompanyYellow Roadway Corporation Executive Ownership Guidelines

 Yellow Roadway Corporation 
 EXECUTIVE EQUITY OWNERSHIP GUIDELINES 
  

	1.	DEFINITIONS & REFERENCES 

  

	1.1	Definitions. As used in these Executive Equity Ownership Guidelines (these “Guidelines”), the following terms shall have the meanings given to them in this Section
1, unless the context expressly requires the contrary: 

  
 “Base Salary” means the rate of annual base salary that the Company pays to a Participant in effect on December 31 of the applicable measurement period, which, for the avoidance of doubt, excludes any
benefits, incentive awards, bonuses, equity awards or any other component of compensation other than the base salary amount. 
  
 “Board” means the Board of Directors of the Company. 
  
 “Committee” means the Compensation Committee of the Board or any successor committee, or, if no
such committee exists, the Board. 
  
 “Common Stock” means the Company’s Common Stock, $1.00 par value per share. 
  
 “Company” means Yellow Roadway Corporation, including its subsidiaries. 
  
 “Fair Market Value” means, as of any given date,
the closing price of a share of Common Stock as reported on the composite tape for the principal securities market through which the Company’s common stock is traded as of that date, or if the Common Stock was not traded on that date, then on
the next preceding date that the Common Stock was traded, all as reported by such source as the Committee may select. Solely for the purposes of these Guidelines, the Fair Market Value of restricted shares of Common Stock (sometimes referred to as
restricted stock) and rights to receive shares of Common Stock (sometimes referred to as restricted stock units) shall be determined as if they were unrestricted, fully vested shares of Common Stock; and the Fair Market Value of options to purchase
Common Stock shall be zero. 
  
 “Fourth
Quarter Fair Market Value” means the greater of 
  

	 	(a)	the average Fair Market Value of a share of Common Stock for all Trading Days during the fourth quarter of the calendar year for which the value is calculated; and

  

	 	(b)	the Fair Market Value on the last day in the fourth quarter of that year that a Participant is able to purchase shares of Common Stock under the Company’s insider trading
“window” policy. 

 “LTIP” means the Company’s Long-Term Incentive Plan or any successor to
that plan that the Committee designates. 
  
 “own” means, with respect to shares of Common Stock, shares of which the Participant is the beneficial owner within the meaning of Rule 16a-1(a)(2) under the Securities Exchange Act of 1934, as amended. 
  
 “Trading Day” means any day on which the
principal securities market through which the Company’s common stock is traded is open and the Common Stock is traded through that market. 
  

	1.2	References. Unless the context expressly requires to the contrary, in these Guidelines; references to “Sections” mean the sections of the Guidelines; references to
the singular, include the plural, and vice versa; references to “persons” mean both natural persons and legal entities; and references to the masculine includes the feminine and neuter and vice versa.

  

	1.3	Headings. The headings included in these Guidelines are for convenience only and shall not affect its interpretation or construction. 

  

	2.	GENERAL TERMS 

  

	2.1	Purpose of these Guidelines. The purpose of these Guidelines is to promote the interests of the Company and its shareholders by increasing key executive ownership of Common
Stock to more closely align their financial rewards with the performance of the Company and to motivate these executives to manage the Company for long-term growth and profitability. 

  

	2.2	Administration of the Program. The Committee shall administer these Guidelines and shall have exclusive and absolute authority and discretion to interpret these Guidelines,
to establish and modify rules for the administration of these Guidelines, to impose such conditions and restrictions as it determines appropriate with respect to these Guidelines and to take such other actions and make such other determinations as
it may deem necessary or advisable for the implementation and administration of these Guidelines. Notwithstanding any provision in these Guidelines to the contrary, the Committee shall have the authority to waive or modify any stock ownership
requirement. All actions taken and all interpretations and determinations that the Committee makes in good faith shall be final and binding upon the Participants, the Company and all other interested persons. No member of the Committee shall be
personally liable for any action, determination or interpretation made in good faith with respect to these Guidelines. 

  

	2.3	Effective Date of the Program. These Guidelines are effective on January 1, 2005 (the “Effective Date”) and will continue in effect until the Committee terminates
or amends them. 

  

	2.4	Participation. Unless the Committee specifically excludes an executive from participation, executives who actively participate in the LTIP shall be subject to these
guidelines. 

  

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	3.	COMMON STOCK OWNERSHIP TARGETS 

  

	3.1	Final Stock Ownership Target. As of December 31 at the end of the sixth full year in which a Participant has actively participated in the LTIP, the Participant should own
(and as of each December 31 thereafter, should maintain) shares of Common Stock the Fourth Quarter Fair Market Value of which is not less than the applicable “Ownership Multiple” for the applicable “Grade” (in each case, as the
table below designates) multiplied by the Participant’s then-current Base Salary (the “Final Stock Ownership Target”). 

  

			
	 Grade(s)
	  	Ownership Multiple
		
	 126
	  	5x
		
	 125
	  	4x
		
	 123-124
	  	3x
		
	 120-122
	  	2x

  

	3.2	Interim Ownership Targets. As of December 31 at the end of each year until the sixth full year in which a Participant has actively participated in the LTIP, the Participant
should own shares of Common Stock the Fourth Quarter Fair Market Value of which is not less than the applicable Percentage (as the table below designates) of the Participant’s then-current Final Stock Ownership Target (the “Interim Stock
Ownership Target”). 

  

					
	         December 31
	  	Percentage of Final
Stock Ownership Target
	 	 	 1st
yr
	  	  10%
	 	 	 2nd
yr
	  	  25%
	 	 	 3rd
yr
	  	  45%
	 	 	 4th
yr
	  	  65%
	 	 	 5th
yr
	  	  85%
	 	 	 6th yr & higher
	  	100%

  

	3.3	Promotions. If the Company promotes a Participant to a higher Grade with a higher Ownership Multiple, the Participant should reach the higher Final Stock Ownership Target by
the sixth anniversary of the December 31 date immediately following the date of the promotion. With respect to the calendar year in which the Company promotes the Participant, the Participant should continue to meet the otherwise applicable Interim
Stock Ownership Target or Total Stock Ownership Target based on the Participant’s relevant Grade prior to the date of promotion. With respect to the calendar years after the Company promotes the Participant, the Participant should meet the
greater of the following: 

  

	 	(a)	the otherwise applicable Interim Stock Ownership Target or Total Stock Ownership Target based on the Participant’s relevant Grade prior to the date of promotion; and

  

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	 	(b)	the Interim Stock Ownership Target for the new Grade; and, for that purpose, the Participant may restart the count of the anniversaries that are used to determine the Percentage for
the Interim Stock Ownership Target beginning with the first anniversary of the December 31 date immediately following the date of the promotion. 

  

	4.	FAILURE TO ACHIEVE STOCK OWNERSHIP TARGETS 

  
 If a Participant does not meet the relevant Interim Stock Ownership Target on December 31 at the end of the Participant’s second or third full year
of participation in the LTIP or second or third full year after a promotion, the Committee may proportionately decrease the cash amount, and increase the equity amount, of the Participant’s LTIP award for that year such that the equity portion
of the award is up to 75% of the award. 
  
 If a Participant does
not meet or maintain the relevant Final Stock Ownership Target on each December 31 at or after the end of the Participant’s sixth full year of participation in the LTIP or sixth year after a promotion, the Committee may proportionately decrease
the cash amount, and increase the equity amount, of the Participant’s LTIP award for that year such that the equity portion of the award is up to 100% of the award. 
  
 The foregoing actions set forth in this Section 4 shall be the sole consequences of a Participant’s failure to meet
these Guidelines, and the Company shall not consider a Participant’s failure to meet these Guidelines as cause for termination of the Participant’s employment with the Company. 
  

	5.	MISCELLANEOUS PROVISIONS 

  

	5.1	Termination and Amendment. The Committee may amend or terminate these Guidelines at any time. Notwithstanding any amendment or termination of these Guidelines, these
Guidelines do not amend or affect any equity that the Company has previously granted to any Participant, and a Participant may exercise the Participant’s rights with respect to any equity grant, subject to its stated terms and conditions and
restrictions that applicable law imposes. 

  

	5.2	Choice of Law. The Guidelines, their validity, interpretation and administration and the rights and obligations of all persons having an interest in these Guidelines shall be
governed by and construed in accordance with the laws of the State of Delaware, without giving effect to it law of conflicts of law. 

  

	5.3	No Employment Contract. These Guidelines shall not confer upon any Participant any right to continued employment by the Company nor shall these Guidelines in any way
interfere with the right of the Company to terminate the employment of any Participant at any time. 

  

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