Document:

Form of Share Unit Agreement

 Exhibit 10.18 
 

 
 YRC WORLDWIDE INC. 
 SHARE UNIT AGREEMENT 
 [NAME OF
GRANTEE] 
 GRANTEE 
  

											
	DATE OF GRANT:	 		 		 		 		 	
						
	TOTAL NUMBER OF UNITS GRANTED:	 		 		 		 		 	
		
	VESTING SCHEDULE:	 	[Long-Term Incentive Program and Executive Share Program: 100% of the Units vest on the third anniversary of the date of grant]

 GRANT OF SHARE UNITS 

Pursuant to action taken by the Compensation Committee (the “Committee”) of the Board of Directors of YRC WORLDWIDE
INC., a Delaware corporation (the “Company”), for the purposes of administration of the Yellow Roadway Corporation 2004 Long-Term Incentive and Equity Award Plan or any successor thereto (the “Plan”), the
above-named Grantee is hereby granted rights to receive the above number of shares of the Company’s $1 par value per share common stock in accordance with the Vesting Schedule described above on a one share per one unit basis and subject to the
other terms and conditions described in this Share Unit Agreement (this “Agreement”). 
 By your acceptance of the Share Units (the
“Units”) represented by this Agreement, you agree that the Units are granted under and governed by the terms of the Plan, this Agreement and the Terms and Conditions of Share Agreements (February 20, 2008) attached to this Agreement; you
acknowledge that you have received, reviewed and understand the Plan, including the provisions that the Committee’s decision on any matter arising under the Plan is conclusive and binding; and you agree that this Agreement amends and supercedes
any other agreement or statement, oral or written, in its entirety regarding the vesting or holding period of these Units. 
  

			
	YRC WORLDWIDE INC.
	
	  

	Name:
	Title:

  

			
	Agreement agreed and accepted by:
	
	  

	Grantee Name:	 	  

 YRC WORLDWIDE INC. 
 TERMS AND CONDITIONS 
 OF 
 SHARE UNIT AGREEMENTS

 February 20, 2008 
 These Terms and Conditions are applicable to Share Units (the “Units”) granted pursuant to the Yellow Roadway Corporation 2004 Long-Term Incentive and Equity Award Plan or any successor thereto (the “Plan”).

  

	1.	Acceleration of Vesting. Notwithstanding the provisions of the vesting schedule provided in the Share Unit Agreement, the vesting of the underlying shares for each Unit shall
be accelerated and all units shall vest upon the following circumstances: 

  

	 	1.1	Death or Permanent and Total Disability. If the Grantee dies or is deemed to be “permanently and totally disabled” (as defined herein) while in the employ of the
Company or a subsidiary of the Company (a “Subsidiary”) and prior to the time the Units vest, the Units shall become fully vested and convert to shares of YRC Worldwide Inc. common stock. For purposes of this Section, a Grantee shall be
considered “permanently and totally disabled” if the Grantee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months or is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Grantee’s employer. The existence of a permanent and total disability shall
be evidenced by such medical certification as the Secretary of the Company shall require and as the Committee approves. 

  

	 	1.2	Change of Control of the Company. If a “Change of Control” of the Company occurs while the Grantee is in the employ of the Company or a Subsidiary prior to the time
the Units vest, the Units shall become fully vested and convert to shares of YRC Worldwide Inc. common stock. For the purposes of this Section, a “Change of Control” shall be deemed to have taken place if: 

  

	 	1.2.1	a third person, including a “group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), purchases or
otherwise acquires shares of the Company after the date of grant that, together with stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock of the Company;

  

	 	1.2.2	a third person, including a “group” as defined in Section 13(d)(3) of the Exchange Act purchases or otherwise acquires (or has acquired during the 12-month period
ending on the date of the most recent acquisition by such person or group) shares of the Company after the date of grant and as a result thereof becomes the beneficial owner of shares of the Company having 35% or more of the total number of votes
that may be cast for election of directors of the Company; or 

  

	 	1.2.3	 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

  

					
	 YRC Worldwide Inc.
 Terms and Conditions of
 Share Units
 February 20, 2008
	  	2	  	

	 	 
foregoing transactions, the Continuing Directors shall cease to constitute a majority of the Board of Directors of the Company or any successor to the
Company during any 12-month period. 

 For the purposes of this Section, “Business Combination” means any
transaction that is referred to in any one or more of clauses (a) through (e) of Section 1 of Subparagraph A of Article Seventh of the Certificate of Incorporation of the Company; and “Continuing Director” means a director
of the Company who meets the definition of Continuing Director contained in Section 7 of Subparagraph C of Article Seventh of the Certificate of Incorporation of the Company. 
  

	 	1.3	Retirement. If the Grantee terminates employment with the Company and its Subsidiaries and is at least 65 years of age upon that termination, the Units shall become fully
vested and convert to shares of YRC Worldwide Inc. common stock; provided however, if the Company, in its sole discretion, determines that the Grantee is a “specified employee” of the Company (as that phrase is defined for purposes
of Section 409A) on the date of the Grantee’s termination of employment following the attainment of age 65, the now vested Units shall convert to shares of YRC Worldwide Inc. common stock on the first business day following the six-month
anniversary of such termination, or, if earlier, the Grantee’s death following such termination. If the Grantee terminates employment with the Company and its Subsidiaries prior to age 65 and the Grantee is at least 55 years of age with the
Grantee’s age plus years of service equal to at least 75, the Units shall continue to vest on the same schedule as if the Grantee remained employed with the Company and its Subsidiaries until age 65, and upon age 65 after such retirement
all remaining Units shall become fully vested and convert to shares of YRC Worldwide Inc. common stock; provided, that the Grantee does not breach the following covenant in Section 1.4. 

  

	 	1.4	Prohibited Activities. Notwithstanding any other provision of these Terms and Conditions and the Share Unit Agreement, if the Grantee engages in a “Prohibited
Activity” (defined below) while in the employment of the Company or any of its subsidiaries or during the period from the date of retirement under Section 1.3 until all units vest pursuant to that section, then Grantee shall forfeit the
right to any further vesting of the Grantee’s units and shall not receive any undelivered shares of the Company’s common stock pursuant to the Share Unit Agreement, and the Share Unit Agreement shall immediately thereupon wholly and
completely terminate. If the Company receives an allegation of a Prohibited Activity, the Company, in its discretion, may suspend delivery of shares with respect to Units for up to three months to permit the investigation of the allegation. If the
Company determines that the Grantee did not engage in any Prohibited Activities, the Company shall deliver shares with respect to any Units that have vested for which all restrictions have lapsed. A “Prohibited Activity” shall be deemed to
have occurred, if the Grantee: 

  

	 	1.4.1	divulges any non-public, confidential or proprietary information of the Company or of its past or present subsidiaries (collectively, the “Company Group”), but excluding
information that 

  

	 	1.4.1.1	becomes generally available to the public other than as a result of the Grantee’s public use, disclosure, or fault, or 

  

	 	1.4.1.2	becomes available to the Grantee on a non-confidential basis after the Grantee’s employment termination date from a source other than a member of the Company Group prior to the
public use or disclosure by the Grantee; provided that the source is not bound by a confidentiality agreement or otherwise prohibited from transmitting the information by a contractual, legal or fiduciary obligation; or

  

					
	 YRC Worldwide Inc.
 Terms and Conditions of
 Share Units
 February 20, 2008
	  	3	  	

	 	1.4.2	directly or indirectly, consults or becomes affiliated with, conducts, participates or engages in, or becomes employed by, any business that is competitive with the business of any
current member of the Company Group, wherever from time to time conducted throughout the world, including situations where the Grantee solicits or participates in or assists in any way in the solicitation or recruitment, directly or indirectly, of
any employees of any current member of the Company Group. 

  

	2.	Lapse of Rights upon Termination of Employment. 

 Upon termination of the Grantee’s employment with the Company or any Subsidiary, all vested Units are converted to stock and delivered to the Grantee upon termination and, except as provided in Section 1 above and this
Section 2, the Grantee shall forfeit any unvested Unit. The Company may, in its sole discretion, which need not be reasonably exercised, determine to vest non-vested Units of the terminating Grantee and convert such Units to shares of YRC
Worldwide Inc. common stock on the date of termination or may determine that the terminating Grantee may continue to vest in any non-vested Units following the Grantee’s termination and convert the non-vested Units to shares of YRC Worldwide
Inc. common stock on such date as the Company determines. 
  

	3.	Transfers of Employment; Authorized Leave. 

  

	 	3.1	Transfers of Employment. Transfers of employment between the Company and a Subsidiary, or between Subsidiaries, shall not constitute a termination of employment for purposes
of the Unit. 

  

	 	3.2	Authorized Leave. Authorized leaves of absence from the Company shall not constitute a termination of employment for purposes of the Unit. For purposes of the Unit, an
authorized leave of absence shall be an absence while the Grantee is on military leave, sick leave, or other bona fide leave of absence so long as the Grantee’s right to employment with the Company is guaranteed by statute, a contract or
Company policy. 

  

	 	3.3	Withholding. To the extent the Grantee has taxable income in connection with the grant or vesting of the Unit or the delivery of shares of Company common stock, the Company
is authorized to withhold from any compensation payable to Grantee, including shares of common stock that the Company is to deliver to the Grantee, any taxes required to be withheld by foreign, federal, state, provincial or local law. By executing
the Share Unit Agreement, the Grantee authorizes the Company to withhold any applicable taxes. 

  

	4.	Non-transferability. No rights under the Share Unit Agreement shall be transferable otherwise than by will, the laws of descent and distribution or pursuant to a Qualified
Domestic Relations Order (“QDRO”), and, except to the extent otherwise provided herein, the rights and the benefits of the Share Unit Agreement may be exercised and received, respectively, during the lifetime of the Grantee only by the
Grantee or by the Grantee’s guardian or legal representative or by an “alternate payee” pursuant to a QDRO. 

  

	5.	Limitation of Liability. Under no circumstances will the Company be liable for any indirect, incidental, consequential or special damages (including lost profits) of any form
incurred by any person, whether or not foreseeable and regardless of the form of the act in which such a claim may be brought, with respect to the Plan or the Company’s role as Plan sponsor. 

  

	6.	 Units Subject to Plan. A copy of the Plan is included with the Share Unit Agreement. The provisions of the Plan as now in effect and as the Plan may be
amended in the future (but only to the extent such 

  

					
	 YRC Worldwide Inc.
 Terms and Conditions of
 Share Units
 February 20, 2008
	  	4	  	

	 	 
amendments are allowed by the provisions of the Plan) are hereby incorporated in the Share Unit Agreement by reference as though fully set forth herein. Upon
request to the Secretary of the Company, a Grantee may obtain a copy of the Plan and any amendments. 

  

	7.	Definitions. Unless redefined herein, all terms defined in the Plan have the same meaning when used as capitalized terms in this Agreement. 

  

	8.	Compliance with Regulatory Requirements. Notwithstanding anything else in the Plan, the shares received upon vesting of the Units may not be sold, pledged or hypothecated
until such time as the Company complies with all regulatory requirements regarding registration of the Shares to be issued under the terms of the Plan. 

  

	9.	Deferred Compensation. This Agreement is intended to meet the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”),
and may be administered in a manner that is intended to meet those requirements and shall be construed and interpreted in accordance with such intent. To the extent that an award or payment, or the settlement or deferral thereof, is subject to
Section 409A of the Code, except as the Committee otherwise determines in writing, the award shall be granted, paid, settled or deferred in a manner that will meet the requirements of Section 409A of the Code, including regulations or
other guidance issued with respect thereto, such that the grant, payment, settlement or deferral shall not be subject to the excise tax applicable under Section 409A of the Code.

  

					
	 YRC Worldwide Inc.
 Terms and Conditions of
 Share Units
 February 20, 2008
	  	5Long-term Incentive Plan

 Exhibit 10.19 
 YRC WORLDWIDE INC. 
 LONG-TERM INCENTIVE PLAN 
 (As amended with effect from February 20, 2008) 
  

			
	 	  	 Plan Provision

	 Performance Focus
	  	Consolidated YRC Worldwide Inc. (“Company”) performance
		
	 Eligibility
	  	The Compensation Committee of the Board of Directors of the Company (the “Committee”) shall determine who may participate in this Plan. Generally, grades 120-126 may be eligible for
the Committee’s determination; however, the Committee may, in its sole discretion, omit those in those grade levels or add participants from outside of those grade levels. The Committee shall determine the award target percentages by grade
level. The Committee may remove any participant from further participation in this Plan. For incomplete performance cycles upon termination of participation, the Committee may, in its sole discretion, determine to pay cash awards and issue Share
Units to a terminating participant at the end of one or more relevant performance periods on a pro rata basis based on the length of time he or she was actively participating prior to termination during the performance period.
		
	 Performance Period
	  	Overlapping three-year performance periods
		
	 Performance Criteria
	  	Company performance measured against the S&P Mid Cap Index (400 companies) with target at the 50th percentile, threshold at the 25th percentile and maximum at the 75th percentile. In addition, the Committee may reduce any potential payment or Share Unit issuance, under the Plan, based upon peer company performance relative to the Company or other performance factors that the
Committee deems relevant.
		
	 Performance Measures and Weights
	  	 60% return on committed capital
 40% net operating profit
after taxes (“NOPAT”) growth
 The first and second years of each performance cycle shall each be weighted 25%, and the third year of each
performance cycle shall be weighted 50%.

		
	 Thresholds and Maximums 
	  	 Threshold is 25% of target at the 25th
percentile.
 Target is 100% at 50th
percentile.
 Maximum is 200% of target at the 75th
percentile.

  

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		  	At and above the 75th percentile on an individual component, the return on committed
capital and NOPAT growth components may be over-weighted up to 230% of the component performance; provided that the overall payout on both components is capped at 200% of target.
		
	 Plan Formula
	  	
	 Form of Payments and Issuances
	  	 50% cash and 50% Share Units, awarded at the end of performance period through the 2004-06 performance cycle. 33- 1
/3% cash and 66- 2/3% Share Units
beginning with the 2005-07 performance cycle. For grants after April 21, 2005, Share Units are determined by dividing the cash value by the average daily closing share price for the 30-trading day period ending on the day immediately prior to the
date of grant. Share Units are converted to shares of stock and delivered to the participant upon becoming fully vested and all holding periods are fully satisfied. The Committee may, based upon an estimated calculation, pay out a percentage of any
earned cash award and issue a portion of Share Units in the first quarter of the year following the performance period with the balance to be paid and issued by the end of the 3rd quarter in that year once the final calculations can be made. The Committee, in its sole discretion, may determine the sample size of the comparison companies in the applicable S&P index.

 
 Reference is made to the Company’s Executive Ownership Guidelines (the “Ownership
Guidelines”). For any grant having a cash component, the Committee may reduce the percentage of cash and increase the percentage of Share Units as necessary to bring a participant into or move the participant towards compliance with the
Ownership Guidelines.

		
	 Vesting of Share Units
	  	For grants through the 2003-05 performance cycle, 50% of the Share Units vest after three years and the remaining 50% of the Share Units vest after six years, in each case, from the date of
grant. For grants beginning with the 2004-06 performance cycle, 100% of the Share Units vest after three years from the date of grant. Prior restrictions on previously granted Share Units that provided that the participant will not receive any stock
on the vesting of the first 50% until the holding period is satisfied on the 6th anniversary of the date of grant or termination of employment after
vesting, whichever occurs earlier, are hereby removed effective as of the first trading day in 2008.

  

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	Termination of Employment	  	Vested Share Units are converted to stock and delivered to the participant. Non-vested units are forfeited, and no payment or issuance is made for incomplete performance periods. The
Committee, at its sole discretion, may determine to deliver non-vested Share Units to the terminating participant based on the circumstances of his or her separation from the Company.
		
	Retirement and Disability	  	 If the participant is age 65 upon termination of employment or is deemed to be totally or permanently disabled, both vested and non-vested Share
Units are converted to stock and delivered to the participant.
  
 A participant shall be
considered “permanently and totally disabled” if the participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months or is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of
not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the participant’s employer The existence of a permanent and total disability
shall be evidenced by such medical certification as the Secretary of the Company shall require and as the Committee approves.
  
 If the participant terminates employment prior to age 65 and the participant is at least 55 years of age with the participant’s age plus years of service equal to at
least 75, the Share Units shall continue to vest on the same schedule as if the participant remained employed until age 65, and upon age 65 after such retirement all remaining Share Units shall become fully vested and convert to shares of
stock; provided, that the participant does not breach the non-competition covenant contained in the Performance Share Award agreement.
  
 For incomplete performance cycles, only for those participants who entered the Plan on a pro rata basis for initial performance cycles (as described below in “New
Participants”), upon such retirement or disability, the participant will be paid both cash and stock at the end of the performance period on a pro rata basis based on the length of time he or she was actively employed during the performance
period. For those participants who entered the Plan on a full target participation basis, there will be no payout or issuance for incomplete performance cycles upon retirement or disability.

  

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	Death	  	Vested and non-vested Share Units are converted to stock and delivered to the person’s estate. For incomplete performance cycles, only for those participants who entered the Plan on a
pro rata basis for initial performance cycles (as described below in “New Participants”), the participant’s estate will be paid both cash and stock at the end of the performance period on a pro rata basis based on the length of time
he or she was employed during the performance period. For those participants who entered the Plan on a full target participation basis, there will be no payout or issuance to the participant’s estate for incomplete performance
cycles.
		
	Change of Control of the Company	  	Vested and non-vested Share Units are converted to shares of stock and delivered to the participant in the event of a Change of Control (defined below). For incomplete performance cycles,
only for those participants who entered the Plan on a pro rata basis for initial performance cycles (as described below in “New Participants”), the participant will be paid both cash and stock on the date of the Change of Control on a pro
rata basis based on the length of time he or she was actively employed during the performance period, assuming that the Company would meet estimated actual performance for each period as the Committee determines (but in no event less than Target
performance). For those participants who entered the Plan on a full target participation basis, there will be no payout or issuance for incomplete performance cycles upon a Change of Control. For the purposes of this Plan, “Change of
Control” shall have the meaning that term is given in the Executive Severance Agreement between the participant and the Company, as it may be amended from time to time; or, if no such agreement exists, the meaning that term is given in the
latest Executive Severance Agreement between the Company and its Chief Executive Officer.

  

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	New Participants	  	New participants in the Plan will enter the Plan at the effective date determined by the Committee. The Committee may either determine to adjust new participant target percentages for
partially completed performance periods pro rata based upon the length of time of their service during the performance period or provide the new participant full target participation.

 Impact of Acquisitions and Implementation of Plan Amendments 
 Because of the impact of the Company’s acquisitions of Roadway Corporation and USF Corporation on the 2004 and 2005 years, the Committee may, in its sole discretion,
determine the methodology for determining NOPAT growth and average portions of the applicable performance periods to determine the different performance against NOPAT growth and return on committed capital before and after each acquisition. This
Long Term Incentive Plan (this “Plan”) amends and restates the existing Long Term Incentive Plan as previously adopted and amended in its entirety. 
 Deferred Compensation 
 This Plan is intended to meet the requirements of Section 409A of the Internal Revenue Code of 1986,
as amended (the “Code”), and may be administered in a manner that is intended to meet those requirements and shall be construed and interpreted in accordance with such intent. To the extent that an award or payment, or the settlement
or deferral thereof, is subject to Section 409A of the Code, except as the Committee otherwise determines in writing, the award shall be granted, paid, settled or deferred in a manner that will meet the requirements of Section 409A of the
Code, including regulations or other guidance issued with respect thereto, such that the grant, payment, settlement or deferral shall not be subject to the excise tax applicable under Section 409A of the Code. Notwithstanding anything in
this Plan to the contrary, if a participant is determined to be a “specified employee” (as defined in Section 409A of the Code) for the year in which the participant terminates employment, any payment due hereunder that is not
permitted to be paid on the date of such termination without the imposition of additional taxes, interest and penalties under Section 409A of the Code shall be paid on the first business day following the six-month anniversary of the
participant’s date of termination or, if earlier, the participant’s death. 
 Amendments and Modifications 
 The Committee, in its sole discretion, may terminate, amend or modify this Plan; provided, that any such termination, amendment or modification may not affect any
previous grants or any rights of a participant after the occurrence of that participant’s death, disability or retirement as this Plan provides or after the occurrence of a Change of Control of the Company. 
  

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