Document:

Exhibit 10.2

 

SUMMARY
OF COMPENSATION ARRANGEMENTS WITH NAMED EXECUTIVE OFFICERS

 

On October 21, 2004, the Compensation Committee (the “Committee”)
of the Board of Directors of J.B. Hunt Transport Services, Inc. “(the “Company”)
approved the following base salaries (effective as of October 17, 2004)
and the following other compensation amounts (effective January 1, 2005)
as indicated:

 

	
  Named Executive Officer

  	
   

  	
  Base

  Salary ($)

  	
   

  	
  Bonus

  ($)

  	
   

  	
  Other Annual

  Compensation

  ($)

  	
   

  	
  All Other

  Compensation

  ($)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wayne Garrison

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chairman of the Board

  	
   

  	
  400,000

  	
   

  	
  (1)

  	
   

  	
  (2)

  	
   

  	
  (3)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kirk Thompson

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  President and CEO

  	
   

  	
  560,000

  	
   

  	
  (1)

  	
   

  	
  (2)

  	
   

  	
  (3)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jerry Walton

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EVP, Finance/ Administration and CFO

  	
   

  	
  345,000

  	
   

  	
  (1)

  	
   

  	
  (2)

  	
   

  	
  (3)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Paul Bergant

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EVP,
  Marketing, CMO, President of Intermodal

  	
   

  	
  305,000

  	
   

  	
  (1)

  	
   

  	
  (2)

  	
   

  	
  (3)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Craig Harper

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EVP, Operations and COO

  	
   

  	
  290,000

  	
   

  	
  (1)

  	
   

  	
  (2)

  	
   

  	
  (3)

  	
   

  

 

(1)          The Company has a performance-based bonus
program that is related to the Company’s earnings per share (EPS) for calendar
year 2005.  According to the 2005 EPS
bonus plan, each of the company’s named executive officers may earn a bonus
ranging from 5% to 175% of his annual base salary.  Based on the company’s current expectations
for 2005 EPS, each named executive officer can be projected to earn a bonus
equal to between 50% and 100% of his base salary.

 

(2)          The Company will reimburse each named
executive officer up to $10,000 for actual expenses incurred for tax and estate
plan preparation services.

 

(3)          The Company has a 401(k) retirement plan that
includes matching contributions on behalf of each of the named executive
officers.  The plan is expected to pay
each named executive officer approximately $6,000 during 2005.EXHIBIT 10.101

 

FORM OF CHANGE IN CONTROL
SEVERANCE AGREEMENT

 

THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (this “Agreement”) is made effective as of April 25,
2005 by and between Tipperary Corporation,
a Texas corporation (the “Company”)
and                                       (“Executive”).

 

Explanatory Statements

 

WHEREAS, the Executive and Company are parties to that
certain Employment and Confidentiality Agreement dated                      (the
“Employment Agreement”) (capitalized
terms not defined herein shall have the definition set forth in the Employment
Agreement); and

 

WHEREAS, the Board of Directors of the Company (the “Board”) recognizes that the
possibility of a Change in Control (as hereinafter defined) exists or may exist
in the future and that the threat or the occurrence of a Change in Control can
result in significant distractions of its key management personnel and
employees because of the uncertainties inherent in such a situation; and

 

WHEREAS, the Board has determined that it is essential
and in the best interest of the Company and its shareholders to retain the
services of the Executive in the event of a threat or occurrence of a Change in
Control and to ensure his continued dedication and efforts in such event
without undue concern for his personal financial and employment security; and

 

WHEREAS, in order to induce the Executive to remain in
the employ of the Company particularly in the event of a threat or the
occurrence of a Change in Control, the Employer desires to enter into this
Agreement with the Executive to provide the Executive with certain benefits in
the event his employment is terminated as a result of, or in connection with, a
Change in Control.

 

Agreement

 

NOW THEREFORE, in consideration of the mutual promises
and agreements set forth herein, the Company and Executive agree as follows:

 

1.  Term.  This Agreement shall
commence as of the date hereof and shall continue in effect until the date the
Executive's employment by the Company is terminated; provided, however, that if
the Executive’s employment is terminated following, or in anticipation of, a
Change in Control, the term shall continue in effect until all payments and
benefits have been made or provided to the Executive hereunder.

 

2.  Definitions.

 

2.1  “Bonus” shall
mean a sum equal to the average of the Executive's annual bonuses paid by the
Company in 2003, 2004 and 2005 by March 31, 2005.

 

2.2  “Change in Control”
shall mean:

 

(a)  The acquisition by any “Person” (within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 30% or more of either (i) the then outstanding shares of
common stock of the Company (the “Outstanding Company Common
Stock”) or (ii) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company
Voting Securities”); provided,
however, that for purposes of this subsection (a), the following
acquisitions shall not constitute a Change in Control: (i) any acquisition
directly from the Company, (ii) any acquisition by the Company, (iii) any
acquisition by an employee benefit plan (or related trust) sponsored or
maintained by the

 

1

 

Company or any corporation controlled by the Company; or

 

(b)  Individuals who, as of the date hereof,
constitute the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board; provided,
however, that any individual becoming a director subsequent to the date hereof
whose election was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board; or

 

(c)  Consummation of a reorganization,
merger, consolidation or sale or other disposition of all or substantially all
of the assets of the Company or the acquisition of assets of another
corporation (a “Business Combination”), in
each case, unless, following such Business Combination,

 

(i) all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of, respectively, the
then outstanding shares of common stock and the combined voting power of the
then outstanding voting securities entitled to vote generally in the election
of directors, as the case may be, of the corporation resulting from such
Business Combination (including, without limitation, a corporation which as a
result of such transaction owns the Company or all or substantially all of the
Company’s assets either directly or through one or more subsidiaries) in
substantially the same proportions as their ownership, immediately prior to
such Business Combination,

 

(ii) no Person
(excluding any corporation resulting from such Business Combination or any
employee benefit plan (or related trust) of the Company or such corporation
resulting from such Business Combination) beneficially owns, directly or
indirectly, 20% or more of the then outstanding shares of common stock of the
corporation resulting from such Business Combination or the combined voting
power of the then outstanding voting securities of such corporation except to
the extent that such ownership existed prior to the Business Combination, and

 

(iii) at least a
majority of the members of the board of directors of the corporation resulting
from such Business Combination were members of the Incumbent Board at the time
of the execution of the initial agreement, or of the action of the Board,
providing for such Business Combination; or

 

(d)  Approval by the shareholders of the
Company of a complete liquidation or dissolution of the Company.

 

3.  Change in Control.  In the event of a Change in Control of the
Company at any time during the Term of this Agreement, and Executive’s
termination without cause under Section 9 of the Employment Agreement
within a period of           
months following the date of a Change in Control, Executive shall be entitled
to the following Benefits:

 

(a)  The Company shall pay Executive a
lump-sum severance amount within thirty (30) days following such termination
equal to            times
the Executive’s Basic Compensation and Bonus, which amount shall be in lieu of
and not in addition to Termination Compensation set forth in Section 9 of
the Employment Agreement; and

 

(b)  The Company shall provide for Executive
to receive medical, dental, life, and disability insurance coverage for           
months following such termination at levels and a net cost to Executive
comparable to that provided to Executive immediately prior to such termination;
and

 

(c)  Company shall provide Executive with
outplacement services           .

 

4.  Constructive
Termination.  If,
within a period of           
months following the date of a Change in Control, (a) Executive’s Basic
Compensation is reduced (unless such reduction is part of an across the board

 

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reduction affecting all Company executives with a comparable level of
responsibility, title or stature), or (b) Executive is removed from or
denied participation in incentive plans, benefit plans, or perquisites
generally provided by the Company to other Company executives with a comparable
level of responsibility, title or stature, or (c) Executive’s target
incentive opportunity, benefits or perquisites are reduced relative to other
Company executives with comparable responsibility, title or stature, or (d) Executive
is assigned duties or obligations inconsistent with his position with the
Company or (e) there is a material adverse change in the nature and scope
of Executive’s authority or his overall working environment, such event shall
be considered a termination without cause and Executive shall be entitled to
the benefits set forth in Section 3 above. 
For purposes of definition, an adverse change in overall working
environment would include movement of the Executive's primary office to outside
[the metro area of the current office location].

 

5.  Miscellaneous
Provisions.

 

5.1  All terms and conditions of this
Agreement are set forth herein and in the Employment Agreement, and there are
no warranties, agreements or understandings, express or implied, except those
expressly set forth herein and in the Employment Agreement.

 

5.2  Any modification to this Agreement
shall be binding only if evidenced in writing signed by all parties hereto.

 

5.3  Any notice or other communication
required or permitted to be given hereunder shall be deemed properly given if
personally delivered or deposited in the United States mail, registered or
certified and postage prepaid, addressed to the Company at its most recent
address on file with the United State Securities and Exchange Commission, or to
Executive at his or her most recent home address on file with Company, or at
other such addresses as may from time to time be designated in writing by the
respective parties.

 

5.4  The laws of the State of Colorado shall
govern the validity of this Agreement, the construction of its terms, and the interpretation
of the rights and duties of the parties involved.

 

5.5  In the event that any one or more of
the provisions contained in this Agreement shall for any reason be held to be
invalid, illegal or unenforceable, the same shall not affect any other
provision of this Agreement, but this Agreement shall be construed as if such
invalid, illegal or unenforceable provisions had never been contained herein.

 

5.6  This Agreement shall be binding upon,
and inure to the benefit of, the successors and assigns of the Company and the
personal representatives, heirs and legatees of Executive.

 

5.7  There shall be deducted from the
payment of any benefit due under this Agreement the amount of any tax required
by any governmental authority to be withheld and paid over by the Company to
such governmental authority for the account of Executive.

 

5.8  As a condition to receiving the
payments and benefits hereunder, the Executive shall execute a document in
customary form, releasing and waiving any and all claims, causes of actions and
the like against the Company and its successors, shareholders, officers,
trustees, agents and employees, regarding all matters relating to the Executive’s
service as an employee of the Company or any affiliates and the termination of
such relationship.  Such claims include,
without limitation, any claims arising under the Age Discrimination in
Employment Act of 1967, as amended; Title VII of the Civil Rights Act of 1964,
as amended; the Civil Rights Act of 1991, as amended; the Equal Pay Act of
1962; the American Disabilities Act of 1990; the Family Medical Leave Act, as
amended; the Employee Retirement Income Security Act of 1976, as amended, or
any like acts under the laws of Australia, as the case may be.

 

[Signature page follows]

 

3

 

IN WITNESS WHEREOF, the parties have executed this
Agreement effective as of the date first above written.

 

 

	
  TIPPERARY CORPORATION

  	
   

  
	
   

  	
   

  
	
  On Behalf of the
  Compensation Committee

  Of the Board of Directors

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Title

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  EXECUTIVE

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

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