Document:

Exhibit
10.4

 

 

 

MIRANT CORPORATION

CHANGE IN CONTROL SEVERANCE PLAN

 

 

 

MIRANT CORPORATION

CHANGE IN
CONTROL SEVERANCE PLAN

 

 

ARTICLE 1

PURPOSE AND TERM

 

1.1           Purpose.  The Board of Directors of the Company has
determined that it is in the best interests of the Company and its stockholders
to assure that the Company will have the continued dedication of certain key
employees, notwithstanding the possibility, threat or occurrence of a Change in
Control of the Company.  The Board
believes it is imperative to diminish the inevitable distraction of such key
employees by virtue of the personal uncertainties and risks created by a
threatened or pending Change in Control, and to encourage the key employees’
full attention and dedication to the Company currently and in the event of any
threatened or pending Change in Control, and to provide the key employees with
compensation and benefits arrangements upon a Change in Control.  Therefore, in order to accomplish these
objectives, the Board has caused the Company to adopt this Plan.

 

The Plan is intended to
qualify under Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA as an unfunded
plan maintained primarily for the purpose of providing deferred compensation
for a select group of management or highly compensated employees.

 

1.2           Term.  The Plan shall generally be effective as of
the Effective Date, subject to amendment from time to time in accordance with
Section 7.2.  The Plan shall continue
until terminated pursuant to Article 7 of the Plan.

 

ARTICLE 2

DEFINITIONS

 

                As used herein, the following words and
phrases shall have the following meanings:

 

2.1           “Affiliate”
means any corporation or other entity (including, but not limited to, a
partnership or a limited liability company) that is affiliated with the Company
through stock or equity ownership or otherwise, and is designated as an
Affiliate for purposes of this Plan by the Committee.

 

2.2           “Base Salary” means the amount a
Participant is entitled to receive as wages or salary on an annualized basis as
in effect immediately prior to a Change in Control or, if greater, at any time
thereafter, in each case without reduction for any pre-tax contributions to
benefit plans.  Base Salary does not
include bonuses, commissions, overtime pay or income from stock options, stock
grants or other incentive compensation.

 

2.3           “Board” means the Board of Directors
of the Company.

 

 

2.4           “Cause” as a reason for a Participant’s
termination of employment means any of the following acts by the Participant,
as determined by the Chief Executive Officer of the Company in the case of Tier
II and III Employees and by the Board in the case of Tier I Employees: gross
neglect of duty, prolonged absence from duty without the consent of the
Company, intentionally engaging in any activity that is in conflict with or
adverse to the business or other interests of the Company, or illegal conduct
or willful misconduct, misfeasance or malfeasance of duty which is reasonably
determined to be detrimental to the Company.

 

2.5           “Change in Control” means the occurrence
of any of the following events:

 

(a)           Any “person” (as that term is used in
Sections 13 and 14(d)(2) of the Securities Exchange Act) becomes the
beneficial owner (as that term is used in Section 13(d) of the
Securities Exchange Act), directly or indirectly, of fifty percent (50%) or
more of the Company’s capital stock entitled to vote in the election of
directors;

 

(b)           Persons who, immediately prior to the
Effective Date, constitute the Board (the “Incumbent Directors”) cease for any
reason, including, without limitation, as a result of a tender offer, proxy
contest, merger or similar transaction, to constitute at least a majority
thereof, provided that any person who becomes a director of the Company
subsequent to the Effective Date shall be considered an Incumbent Director if
such person’s election or nomination for election was approved by a vote of at
least two-thirds (2/3) of the Incumbent Directors; but provided further that
any such person whose initial assumption of office is in connection with an
actual or threatened election contest relating to the election of members of
the Board or other actual or threatened solicitation of proxies or consents by
or on behalf of a person other than the Board, including by reason of agreement
intended to avoid or settle any such actual or threatened contest or
solicitation, shall not be considered an Incumbent Director;

 

(c)           Consummation of a reorganization,
merger, consolidation, sale or other disposition of all or substantially all of
the assets of the Company (a “Business Combination”), in each case, unless,
following such Business Combination, all or substantially all of the
individuals and entities who were the beneficial owners of outstanding voting
securities of the Company immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of 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 company resulting from
such Business Combination (including, without limitation, a company 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, of the outstanding voting

 

2

 

securities of the Company;
and

 

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

 

2.6           “Code” means the Internal Revenue
Code of 1986, as amended from time to time, and includes a reference to the
underlying proposed or final regulations.

 

2.7           “Committee” means the Compensation
Committee of the Board.

 

2.8           “Company” means Mirant Corporation,
or its successor as provided in Section 8.7.

 

2.9           “Disability” has the same meaning
assigned such term in the Company’s long-term disability plan, as in effect
from time to time, or if no such plan is in effect, “Disability” means Permanent and Total Disability as defined
in Section 22(e)(3) of the Code.

 

2.10         “Effective Date” means May 8, 2006.

 

2.11         “Employee” means any regular, full-time
or part-time employee of the Company or any Affiliate.  Where the context requires in connection with
a Participant who is employed directly by an Affiliate, the term “Company” as
used herein includes such Affiliate.

 

2.12         “ERISA” means the Employee Retirement
Income Security Act of 1974, as amended.

 

2.13         “Good Reason” means, as a reason for a
Participant’s resignation from employment, the occurrence of any of the
following after a Change in Control:

(a)           a material reduction by the
Company in the Participant’s Base Salary or
Target Annual Bonus, as in effect immediately prior to the Change in
Control, as the same may be increased from time to time (it being understood that a Participant shall not have a basis to resign
for Good Reason if (i) such reduction is part of a less than 5%
across-the-board reduction in base salary rate or target annual bonus
opportunity similarly affecting at least 95% of all Employees of the Company, or (ii) no bonus is paid, or the amount of the bonus
is reduced, as a result of the failure of the Participant or the Company to
achieve applicable performance targets for such bonus);

(b)           Failure by the Company (a)
to continue in effect any compensation plan in which the executive participates
that is material to total compensation, unless an equitable arrangement has
been made with respect to such plan, or (b) to continue the Participant’s
participation therein on a basis not materially less favorable, both in terms
of the amount of benefits provided and the level of the

 

3

 

Participant’s participation
relative to other participants

(c)           the assignment to the
Participant of duties materially inconsistent with his or her position, duties
or responsibilities as in effect immediately prior to Change in Control, or any
other action by the Company which results in a material diminution in such
position, duties or responsibilities, excluding for this purpose (i) a change
in title or reporting relationship alone, and (ii) an isolated, insubstantial
and inadvertent action not taken in bad faith and which is remedied by the Company
promptly after receipt of notice thereof given by the Participant;

(d)           the failure of the Company to comply
with and satisfy its obligations under Section 8.7 of this Plan

(e)           a requirement that the Participant
move his or her principal place of business to a location that is (i) more than
50 miles from the location at which the Participant was stationed immediately
prior to a Change in Control, and (ii) farther from the Participant’s primary
residence than was the location at which the Participant was stationed
immediately prior to the Change in Control.

2.14         “Participant” means any Employee
designated by the Committee as a participant in the Plan.

 

2.15         “Plan” means this Mirant Corporation
Change in Control Severance Plan.

 

2.16         “Severance Benefits” mean the benefits
payable in accordance with Article 4 of the Plan.

 

2.17         “Target Annual Bonus” means, with
respect to any Participant, the higher of (x) the Participant’s target
bonus opportunity under the annual bonus plan applicable to the Participant
immediately prior to the Change in Control, provided
that if no target bonus opportunity has been established for such year under
such plan, the year immediately preceding the year in which the Change in
Control occurs, or (y) the Participant’s target bonus opportunity under
the annual bonus plan applicable to the Participant in effect at any time after
the Change in Control.

 

2.18         “Termination Date” means the date of
the termination of a Participant’s employment with the Company as determined in
accordance with Article 6.

 

2.19         “Tier Level” means a Participant’s
designation as a Tier I, Tier II or Tier III Employee, as described in Section
3.1.

 

ARTICLE 3

ELIGIBILITY

 

3.1           Participation.  The Committee or the Board shall designate
from time to time those Employees or classes of Employees who are Participants
in the Plan.  In the

 

4

 

event
the Committee or the Board designates certain Participants by job title,
position, function or responsibilities, an Employee who is appointed to such a
position after the Effective Date of this Plan shall be a Participant upon the
date he or she begins his or her duties in such position, unless otherwise
determined by the Committee or the Board. 
The Committee or the Board shall designate each Participant in the Plan
as a Tier I, Tier II or Tier III Employee. 
Exhibit A, attached hereto and made a part hereof, sets forth the
initial Participants and their respective Tier Levels, which may be amended by
the Committee or the Board at any time prior to a Change in Control to add or
remove individual Participants or classes of Participants or to change Tier
Level classifications; provided, however, that the removal of individual
Participants or classes of Participants from the Plan, or any change in Tier
Level classification to a lower Tier
Level with respect to any individual Participant or class of Participants shall
not be effective for at least 12 months after the date of the Committee or
Board action.  If a Change in Control
occurs during such 12-month period, any such action to remove individual
Participants or classes of Participants or to place individual Participants or
classes of Participants in a lower Tier Level shall be null and void.

 

3.2           Duration of Participation.  Subject to Article 4 and
Article 7, an Employee shall cease to be a Participant in the Plan if (i) his
or her employment is terminated under circumstances in which he or she is not
entitled to Severance Benefits under the terms of this Plan, or (ii) prior
to a Change in Control, he or she ceases to be among the class of employees
designated by the Committee or the Board as Participants. Notwithstanding the
foregoing, a Participant who has terminated employment and is entitled to
Severance Benefits under Section 4.1 shall remain a Participant in the Plan
until the full amount of the Severance Benefits and any other amounts payable
under the Plan have been paid to the Participant.

 

ARTICLE 4

SEVERANCE BENEFITS

 

4.1           Right to Severance Benefits.

 

(a)           A
Participant shall be entitled to receive from the Company Severance Benefits in
the amount provided in Section 4.2 if, within the two-year period
following a Change in Control, (i) the Participant’s employment with the
Company or any Affiliate is terminated by the Company without Cause (other than
by reason of the Participant’s death or Disability) or (ii) the Participant’s
employment is terminated by the Participant for Good Reason within a period of 90 days after the
occurrence of the event giving rise to Good Reason.

 

(b)           If
a Change in Control occurs and (i) a Participant’s employment with the Company
or any Affiliate was terminated by the Company without Cause (other than by
reason of the Participant’s death or Disability) prior to the date of the
Change in Control or (ii) an action was taken with respect to the Participant
prior to the date of the Change in Control that would have constituted Good

 

5

 

Reason
if taken after a Change in Control, and the Participant can reasonably
demonstrate that such termination or action, as applicable, occurred at the
request of a third party who had taken steps reasonably calculated to effect
the Change in Control, then the termination or action, as applicable, will be
treated for all purposes of this Plan as having occurred immediately following
the Change in Control and such former Participant shall be entitled to the
benefits of the Plan accordingly.

 

(c)           Notwithstanding
anything to the contrary, no Severance Benefits shall be provided to a
Participant unless the Participant has executed and not revoked a release in
substantially the form attached hereto as Exhibit B (the “Release”).

 

4.2           Amount of Severance Benefits.  If a Participant’s employment is terminated
in circumstances entitling him or her to Severance Benefits as provided in
Section 4.1, then:

 

(a) the Company shall pay to the Participant in a
single lump sum cash payment within 30 days after the Termination Date or such
later date as may be required by Section 4.5 of the Plan, the aggregate of the
following amounts:

 

(i)            the
sum of (x) the Participant’s Base Salary through the Termination Date to the
extent not theretofore paid, (y) the product of (A) the Participant’s Target
Annual Bonus for the year in which the Termination Date occurs, and (B) a
fraction, the numerator of which is the number of days in the current fiscal
year through the Termination Date, and the denominator of which is 365, and (z)
any accrued vacation pay to the extent not theretofore paid; and

 

(ii)           a
severance payment equal to three times, in the case of a Tier I Employee, or
two times, in the case of a Tier II Employee, or one times, in the case of a
Tier III Employee, the sum of (x) the Participant’s Base Salary and (y) the Target Annual Bonus for the year in
which the Termination Date occurs; and

 

(iii)          a payment equal to the cost to the
Company to provide certain group health benefits sponsored by Company and
maintained by the Participant on the Termination Date.  The amount payable under this Section
4.2(a)(iii) shall be calculated based on the monthly cost to the Company
(exclusive of any portion of the cost paid by the employee) to provide the same
level of coverage of such group health benefits maintained by the Participant
as of the Termination Date for 36 months, in the case of a Tier I
Employee, or 24 months, in the case of a Tier II Employee, or 12 months, in the
case of a Tier III Employee.  For purposes of this Section
4.2(a)(iii), group health benefits means any of the following: group medical,
dental, vision, and/or prescription drug benefits.

 

6

 

The cost of such group
health coverage is based on the monthly premium charged to the Company for such
coverage on the Termination Date by an insurance carrier if such benefit is
provided pursuant to an insurance contract issued by an insurance carrier to
the Company.  If the coverage is
self-insured by the Company, the cost will be the monthly cost as determined by
the Company in accordance with reasonably acceptable means (for self-insured
group health, the cost shall equal the “applicable premium” under COBRA for
such benefits for the year in which the Termination Date occurs).  The Participant will be entitled to make an
election to continue group health benefits in accordance with the terms of the
various group health plans.

 

(b)  all of the Participants stock options and
other equity awards in the nature of rights that may be exercised shall become
fully vested and exercisable and the post-termination exercise period shall be
governed by the agreements evidencing such awards, and all restrictions on any
other outstanding equity awards shall lapse;
and

 

(c)  to the extent not theretofore paid or
provided, the Company shall timely pay or provide to the Participant any other
amounts or benefits required to be paid or provided or which the Participant is
eligible to receive under any plan, program, policy or practice or contract or
agreement of the Company and its affiliated companies.

 

4.3           Non-Duplication of Benefits.  This Plan is not intended to supersede any
other plan, program, arrangement or agreement providing a Participant with
severance or related benefits in the case of termination of employment
following a Change in Control.  In the
event that a Participant becomes entitled to receive benefits under this Plan
and any such benefit duplicates a benefit that would otherwise be provided
under any other plan, program, arrangement or agreement as a result of the
Participant’s termination of employment, then the Participant shall be entitled
to receive the greater of the benefit available under the Plan, on the one
hand, and the benefit available under such other plan, program, arrangement or
agreement, on the other.

 

4.4           Full Settlement; No Mitigation. 
The Company’s obligation to make the payments provided for under this
Plan and otherwise to perform its obligations hereunder shall not be affected
by any set-off, counterclaim, recoupment, defense or other claim, right or
action which the Company may have against the Participant or others.  In no event shall the Participant be
obligated to seek other employment or take any other action by way of
mitigation of the amounts payable to the Participant under any of the
provisions of this Agreement and such amounts shall not be reduced whether or
not the Participant obtains other employment.

 

4.5           Code Section 409A.  Notwithstanding the foregoing provisions of this
Article 4, to the extent required to comply with Section 409A of the Code,
amounts and

 

7

 

benefits
to be paid under this Article 4 shall be delayed to the six month anniversary
of the date of the Participant’s separation from service, within the meaning of
Code Section 409A.

 

ARTICLE 5

EFFECT OF SECTIONS 280G AND 4999 OF THE CODE

 

5.1           Certain Additional Payments by the
Company.  This Section 6.1 shall be applicable to all
Tiers of Employee Participants.

 

(a)           Anything
in this Plan to the contrary notwithstanding and except as set forth below, in
the event it shall be determined that any benefit, payment or distribution by
the Company to or for the benefit of a Tier I and Tier II Employee Participant
(whether paid or payable or distributed or distributable pursuant to the terms
of this Plan or otherwise, but determined without regard to any additional
payments required under this Section 5.1) (such benefits, payments or
distributions are hereinafter collectively referred to as “Payments”) would be
subject to the excise tax imposed by Section 4999 of the Code or any interest
or penalties are incurred by the Participant with respect to such excise tax
(such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise Tax”), then the Participant
shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an
amount such that after payment by the Participant of all taxes (including any
interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with
respect thereto) and Excise Tax imposed upon the Gross-Up Payment, the
Participant retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments with a maximum benefit of $2 million.

 

Notwithstanding the foregoing provisions of this
Section 5.1(a), if the Parachute Value (as defined below) of all Payments does
not exceed 110% of the Participant’s Safe Harbor Amount (as defined below),
then the Company shall not pay the Participant a Gross-Up Payment, and the
Payments due under this Plan shall be reduced so that the Parachute Value of
all Payments, in the aggregate, equals the Safe Harbor Amount; provided, that
if even after all Payments due under this Plan are reduced to zero, the
Parachute Value of all Payments would still exceed the Safe Harbor Amount, then
no reduction of any Payments shall be made and the Gross-Up Payment shall be made.  The reduction of the Payments due hereunder,
if applicable, shall be made in such a manner as to maximize the economic
present value of all Payments actually made to the Participant, determined by
an independent, nationally recognized accounting firm or compensation
consulting firm (the “Determination Firm”) for purposes of Section 280G of the
Code using the discount rate required by Section 280G(d)(4) of the Code.  For purposes of this Section 5.1, the “Parachute
Value” of a Payment means the present value as of the date of the change of
control for purposes of

 

8

 

Section
280G of the Code of the portion of such Payment that constitutes a “parachute
payment” under Section 280G(b)(2) of the Code, as determined by the
Determination Firm for purposes of determining whether and to what extent the
Excise Tax will apply to such Payment. 
For purposes of this Section 5.1, the Participant’s “Safe Harbor Amount”
means one dollar less than three times the Participant’s “base amount” within
the meaning of Section 280G(b)(3) of the Code.

 

(b)           Subject
to the provisions of Section 5.1(c), all determinations required to be made
under this Section 5.1, including whether and when a Gross-Up Payment is
required and the amount of such Gross-Up Payment and the assumptions to be used
in arriving at such determination, shall be made the Determination Firm which
shall provide detailed supporting calculations both to the Company and the
Participant within 15 business days of the receipt of notice from the
Participant that there has been a Payment, or such earlier time as is requested
by the Company.  All fees and expenses of
the Determination Firm shall be borne solely by the Company.  Any Gross-Up Payment, as determined pursuant
to this Section 5.1, shall be paid by the Company to the Participant within
five days of the receipt of the Determination Firm’s determination.  Any determination by the Determination Firm
shall be binding upon the Company and the Participant; provided that if, the Determination Firm’s
initial determination to the contrary notwithstanding, the Internal Revenue
Service (or other applicable taxing authority) determines that an additional
Excise Tax is due with respect to the Payments, the Determination Firm shall
recalculate the amount of the Gross-Up Payment based upon the determinations
made by the Internal Revenue Service (or other applicable taxing authority)
after taking into account any additional interest and penalties (the “Recalculated
Amount”) and the Company shall pay to the Participant, within 5 days of the
receipt of the Determination Firm’s recalculation the Gross-Up Payment, the
excess of the Recalculated Amount over the Gross-Up Payment initially paid to
the Participant.  As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Determination Firm hereunder, it is possible that
Gross-Up Payments which will not have been made by the Company should have been
made (“Underpayment”), consistent with the calculations required to be made
hereunder.  In the event that the Company
exhausts its remedies pursuant to Section 5.1(c) and the Participant thereafter
is required to make a payment of any Excise Tax, subject to the maximum, the
Determination Firm shall determine the amount of the Underpayment that has
occurred and any such Underpayment shall be promptly paid by the Company to or
for the benefit of the Participant, together with interest, from the time of
payment by the Participant of such Excise Tax, at the applicable Federal rate
provided for in Section 7872(f)(2) of the Code.

 

(c)           The
Participant shall notify the Company in writing of any claim by the Internal
Revenue Service that, if successful, would require the payment by the Company
of the Gross-Up Payment.  Such
notification shall be given as soon

 

9

 

as
practicable but no later than ten business days after the Participant is
informed in writing of such claim and shall apprise the Company of the nature
of such claim and the date on which such claim is requested to be paid.  The Participant shall not pay such claim
prior to the expiration of the 30-day period following the date on which it
gives such notice to the Company (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due).  If the Company notifies the Participant in
writing prior to the expiration of such period that it desires to contest such
claim, the Participant shall:

 

(i)  give the
Company any information reasonably requested by the Company relating to such
claim,

 

(ii)  take
such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such claim by an attorney
reasonably selected by the Company, and designating such attorney as authorized
to act on the Participant’s behalf with respect to such examination, if
necessary, through a power of attorney,

 

(iii) 
cooperate with the Company in good faith in order effectively to contest
such claim, and

 

(iv)  permit
the Company to participate in any proceedings relating to such claim;

 

provided,
however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold the Participant harmless, on an after-tax
basis, for any Excise Tax or income tax (including interest and penalties with
respect thereto) imposed as a result of such representation and payment of
costs and expenses.  Without limitation
of the foregoing provisions of this Section 5.1(c), the Company shall control
all proceedings taken in connection with such contest and, at its sole option,
may pursue or forgo any and all administrative appeals, proceedings, hearings
and conferences with the taxing authority in respect of such claim and may, at
its sole option, either direct the Participant to pay the tax claimed and sue
for a refund or contest the claim in any permissible manner, and the
Participant agrees to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more
appellate courts, as the Company shall determine; provided, however, that if
the Company directs the Participant to pay such claim and sue for a refund, the
Company shall advance the amount of such payment to the Participant, on an
interest-free basis and shall indemnify and hold the Participant harmless, on
an after-tax basis, from any Excise Tax or income tax (including interest or
penalties with respect thereto) imposed with respect to such advance or with
respect to any imputed income with respect to such advance; and further
provided that any

 

10

 

extension
of the statute of limitations relating to payment of taxes for the taxable year
of the Participant with respect to which such contested amount is claimed to be
due is limited solely to such contested amount. 
Furthermore, the Company’s control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Participant shall be entitled to settle or contest, as the case may be, any
other issue raised by the Internal Revenue Service or any other taxing
authority.

 

(d)           If,
after the receipt by the Participant of an amount advanced by the Company
pursuant to Section 5.1(c), the Participant becomes entitled to receive any
refund with respect to such claim, the Participant shall (subject to the
Company’s complying with the requirements of Section 5.1(c)) promptly pay to
the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto).  If, after the receipt by the Participant of
an amount advanced by the Company pursuant to Section 5.1(c), a determination
is made that the Participant shall not be entitled to any refund with respect
to such claim and the Company does not notify the Participant in writing of its
intent to contest such denial of refund prior to the expiration of 30 days
after such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-Up Payment required to be paid.

 
ARTICLE 6
TERMINATION OF EMPLOYMENT
 

6.1           Written Notice Required.  Any purported termination of employment,
whether by the Company or by the Participant, shall be communicated by written
notice to the other (a “Notice of Termination”).

 
6.2           Termination Date.  In the case of the Participant’s death, the Participant’s Termination Date shall be his or her date of death.  In all other cases, the Participant’s Termination Date shall be the date specified in the Notice of Termination subject to the following:
 
(a)           If the Participant’s employment is terminated by the Company for Cause or due to Disability, the date specified in the Notice of Termination shall be at least 30 days from the date the Notice of Termination is given to the Participant, provided that in the case of Disability, the Participant shall not have returned to the full-time performance of his or her duties during such period of at least 30 days; and
 
(b)           If the Participant terminates his or her employment for Good Reason, the date specified in the Notice of Termination shall not be more than 60 days from the date the Notice of Termination is given to the Company.
 

ARTICLE 7

 

 

11

DURATION,
AMENDMENT AND TERMINATION, CLAIMS

 

7.1           Duration.  The Plan shall become effective as of the
Effective Date.  The Board may terminate
the Plan as of any date that is at least 12 months after the date of the Board’s
action.  If a Change in Control occurs
during such 12-month period, this Plan shall continue in full force and effect
and shall not terminate or expire until after all Participants who become
entitled to any payments hereunder shall have received such payments in full.

 

7.2           Amendment and Termination.  Subject to the following sentence, the Plan
may be amended from time to time in any respect by the Board; provided,
however, in the event that a Change in Control occurs within one year following
an amendment to the Plan that would adversely affect the rights or potential
rights of Participants, the amendment will not be effective.  In anticipation of or on or following a
Change in Control, the Plan shall no longer be subject to amendment, change,
substitution, deletion, revocation or termination in any respect which
adversely affects the rights of Participants without the consent of each
Participant so affected.  For the
avoidance of doubt, removal of a Participant as a Participant (other than as a
result of the Participant ceasing to be an Employee) or a decrease in the
Participant’s Tier Level shall be deemed to be an amendment of the Plan which
adversely affects the rights of the Participant.

 

7.3           Form of Amendment.  The form of any amendment or termination of
the Plan shall be a written instrument signed by a duly authorized officer or
officers of the Company, certifying that the amendment or termination has been
approved by the Board. An amendment of the Plan in accordance with the terms
hereof shall automatically effect a corresponding amendment to all Participants’
rights and benefits hereunder. A termination of the Plan shall in accordance
with the terms hereof automatically effect a termination of all Participants’
rights and benefits hereunder.

 

7.4           Claims Procedure.

 

(a)           A Participant may file a claim with
respect to amounts asserted to be due hereunder by filing a written claim with
the Committee specifying the nature of such claim in detail.  The Committee shall notify the claimant
within 60 days as to whether the claim is allowed or denied, unless the
claimant receives written notice from the Committee prior to the end of the 60
day period stating that special circumstances require an extension of time for
a decision on the claim, in which case the period shall be extended by an additional
60 days.  Notice of the Committee’s
decision shall be in writing, sent by mail to the Participant’s last known
address and, if the claim is denied, such notice shall (i) state the specific
reasons for denial, (ii) refer to the specific provisions of the Plan upon
which such denial is based, and (iii) if applicable, describe any additional
information or material necessary to perfect the claim, an explanation of why
such information or material is necessary, and an explanation of the review
procedure in Section 7.4(b).

 

12

 

(b)           A claimant is entitled to request a
review of any denial of his claim under Section 7.4(a).  The request for review must be submitted to
the Committee in writing within 60 days of mailing by the Committee of notice
of the denial.  Absent a request for
review within the 60 day period, the claim will be deemed conclusively
denied.  The claimant or his representative
shall be entitled to review all pertinent documents, and to submit issues and
comments orally and in writing to the Committee.  The review shall be conducted by the
Committee, which shall afford the claimant a hearing and which shall render a
decision in writing within 60 days of a request for a review, provided that, if
the Committee determines prior to the end of such 60 day review period that
special circumstances require an extension of time for the review and decision
of the denial, the period for review and decision on the denial shall be
extended by an additional 60 days.  The
claimant shall receive written notice of the Committee’s review decision,
together with specific reasons for the decision and reference to the pertinent
provisions of the Plan.

 

ARTICLE 8

MISCELLANEOUS

 

8.1           Legal Fees and Expenses.  The Company shall reimburse all legal fees
and related expenses (including the costs of experts, evidence and counsel)
reasonably and in good faith incurred by a Participant if the Participant
prevails on a material issue with respect to his or her claim for relief in an
action by the Participant to obtain or enforce any right or benefit provided by
this Plan.

 

8.2           Employment Status. This Plan
does not constitute a contract of employment or impose on the Participant or
the Company any obligation to retain the Participant as an Employee, to change
the status of the Participant’s employment, or to change the Company’s policies
regarding termination of employment.

 

8.3           Nature of Plan and Benefits.  Participants and any other person who may
have rights hereunder shall be mere unsecured general creditors of the Company
with respect to a Severance Benefits due hereunder, and all amounts (other than
fully insured benefits) shall be payable from the general assets of the
Company.

 

8.4           Withholding of Taxes. The
Company may withhold from any amount payable or benefit provided under this
Plan such Federal, state, local, foreign and other taxes as are required to be
withheld pursuant to any applicable law or regulation.

 

8.5           No Effect on Other Benefits.  Severance Benefits shall not be counted as
compensation for purposes of determining benefits under other benefit plans,
programs, policies and agreements, except to the extent expressly provided
therein or herein.

 

8.6           Validity and Severability. The
invalidity or unenforceability of any provision of the Plan shall not affect
the validity or enforceability of any other provision of the Plan, which shall
remain in full force and effect, and any prohibition or

 

13

 

unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

 

8.7           Successors.  This Plan shall bind any successor of or to
the Company, its assets or its businesses (whether direct or indirect, by
purchase, merger, consolidation or otherwise), in the same manner and to the
same extent that the Company would be obligated under this Plan if no
succession had taken place.  In the case
of any transaction in which a successor would not by the foregoing provision or
by operation of law be bound by this Plan, the Company shall require such
successor expressly and unconditionally to assume and agree to perform the
Company’s obligations under this Plan, in the same manner and to the same
extent that the Company would be required to perform if no such succession had
taken place. The term “Company,” as used in this Plan, shall mean the Company
as hereinbefore defined and any successor or assignee to the business or assets
which by reason hereof becomes bound by this Plan.

 

8.8           Assignment.  This Plan shall inure to the benefit of and
shall be enforceable by a Participant’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees.  If a Participant should die
while any amount is still payable to the Participant under this Plan had the
Participant continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Plan to the
Participant’s estate.  A Participant’s
rights under this Plan shall not otherwise be transferable or subject to lien
or attachment.

 

8.9           Enforcement.  This Plan is intended to constitute an
enforceable contract between the Company and each Participant subject to the
terms hereof.

 

8.10         Governing Law. To the extent non
preempted by ERISA, the validity, interpretation, construction and performance
of the Plan shall in all respects be governed by the laws of Delaware, without
reference to principles of conflict of law.

 

8.11         Arbitration.  Any dispute or controversy arising under or
in connection with this Plan that cannot be mutually resolved by the Company
and a Participant and their respective advisors and representatives shall be
settled exclusively by arbitration in Atlanta, Georgia in accordance with the
rules of the American Arbitration Association before one arbitrator of
exemplary qualifications and stature, who shall be selected jointly by an
individual to be designated by the Company and an individual to be selected by
the Participant, or if such two individuals cannot agree on the selection of
the arbitrator, who shall be selected by the American Arbitration Association.  The
Company shall reimburse the Participant’s reasonable legal fees if he prevails
on a material issue in arbitration.

 

8.12         Section 409A Savings Clause.  Notwithstanding anything in the Plan to the
contrary, to the extent that any amount or benefit that would constitute “deferred
compensation” for purposes of Section 409A of the Code would otherwise be
payable or distributable under the Plan by reason a Participant’s termination
of employment, such amount or benefit will not be payable or distributable to
the Participant unless (i) such

 

14

 

termination
of employment meets the description or definition of “separation from service”
in Section 409A of the Code and applicable proposed or final regulations, or
(ii) the payment or distribution of such amount or benefit would be exempt from
the application of Section 409A of the Code by reason of the short-term
deferral exemption or otherwise.

 

15

 

EXHIBIT A

 

 

Mirant
Corporation  Change in Control Severance
Plan

 

Tier
I Employee Participants:

 

 

All
Corporate Executive Officers at Senior Vice President level and above

 

 

Tier
II Employee Participants:

 

All
elected Corporate Vice Presidents

 

 

Tier
III Employee Participants:

 

Corporate  Directors and above with salaries above $175,
000. This would also include positions with the following titles — which are
considered equivalent to Corporate Directors: Regional VP, Associate General
Counsel, certain executives at international business units.

 

16

 

EXHIBIT B

 

Form of Release

 

This Release is granted
effective as of the         day of        ,
20   , by                      
(“Employee”) in favor of Mirant Corporation (the “Company”).  This is the Release referred to that certain
Change in Control Severance Plan adopted by the Company effective as of             ,
2006 (the “Plan”).  Employee gives this
Release in consideration of the Company’s promises and covenants as recited in
the Severance Plan, with respect to which this Release is an integral part.

 

1.             Release of the Company.  Employee, for himself, his successors,
assigns, attorneys, and all those entitled to assert his rights, now and
forever hereby releases and discharges the Company and its respective officers,
directors, stockholders, trustees, employees, agents, parent corporations,
subsidiaries, affiliates, estates, successors, assigns and attorneys (“the
Released Parties”), from any and all claims, actions, causes of action, sums of
money due, suits, debts, liens, covenants, contracts, obligations, costs,
expenses, damages, judgments, agreements, promises, demands, claims for
attorney’s fees and costs, or liabilities whatsoever, in law or in equity,
which Employee ever had or now has against the Released Parties, including,
without limitation, any claims arising by reason of or in any way connected
with any employment relationship which existed between the Company or any of
its parents, subsidiaries, affiliates, or predecessors, and Employee.  It is understood and agreed that this Release
is intended to cover all actions, causes of action, claims or demands for any
damage, loss or injury, whether known or unknown, of any nature whatsoever,
including those which may be traced either directly or indirectly to the
aforesaid employment relationship, or the termination of that relationship,
that Employee has, had or purports to have, from the beginning of time to the
date of this Release, and including but not limited to claims for employment
discrimination under federal or state law, except as provided in Paragraph 2;
claims arising under the Age Discrimination in Employment Act, 29 U.S.C.
§ 621, et seq., Title VII of the Civil
Rights Act, 42 U.S.C. § 2000(e), et  seq. or the Americans
With Disabilities Act, 42 U.S.C. § 12101 et  seq.; claims for
statutory or common law wrongful discharge, claims arising under the Fair Labor
Standards Act, 29 U.S.C. § 201 et  seq.; claims for
attorney’s fees, expenses and costs; claims for defamation; claims for
emotional distress; claims for wages or vacation pay; claims for benefits or
that in any way relate to the design or administration of any employee benefit
program, including any claims arising under the Employee Retirement Income
Security Act, 29 U.S.C. § 1001, et seq.; and claims
under any other applicable federal, state or local laws or legal concepts;
provided, however, that nothing herein shall release the Company of any
indemnification obligations to Employee under the Company’s bylaws, certificate
of incorporation, Delaware law or otherwise.

 

2.             Release of Claims Under Age Discrimination in
Employment Act.  Without limiting the
generality of the foregoing, Employee agrees that by executing this Release, he
has released and waived any and all claims he has or may have as of the date of
this Release for age discrimination under the Age Discrimination in Employment
Act,

 

17

 

29 U.S.C. § 621, et seq. 
Employee acknowledges and agrees that he has been, and hereby is,
advised by the Company to consult with an attorney prior to executing this
Release.  Employee further acknowledges
and agrees that the Company has offered Employee the opportunity, before
executing this Release, to consider this Release for a period of twenty-one
(21) calendar days; and that the consideration he receives for this Release is
in addition to amounts to which he was already entitled.  It is further understood that this Release is
not effective until seven (7) calendar days after the execution of this Release
and that Employee may revoke this Release within seven (7) calendar days from
the date of execution hereof.

 

3.                Confidential Information.  From and after the Termination Date (as
defined in the Severance Plan), Employee agrees that he shall not, without the
prior written consent of the Company or as may otherwise be required by law or
legal process, communicate or divulge any secret or confidential information,
knowledge or data relating to the Company or any of its affiliated companies,
and their respective businesses, which shall have been obtained by Employee
during Employee’s employment by the Company or any of its affiliated companies,
to anyone other than the Company and those designated by it.  It is understood, however, that the
obligations of this Paragraph 3 shall not apply to the extent that the aforesaid
matters (i) are disclosed in circumstances where Employee is legally required
to do so or (ii) become generally known to and available for use by the public
other than by acts by Employee or representatives of Employee in violation of
the Severance Plan or this Release.

 

4.                Non-Admission. 
It is understood and agreed by Employee that the payment made to him is
not to be construed as an admission of any liability whatsoever on the part of
the Company or any of the other Releasees, by whom liability is expressly
denied.

 

5.             Acknowledgement and
Revocation Period.  Employee agrees
that he has carefully read this Release and is signing it voluntarily.  Employee acknowledges that he has had twenty
one (21) days from receipt of this Release to review it prior to signing or
that, if Employee is signing this Release prior to the expiration of such
21-day period, Employee is waiving his right to review the Release for such
full 21-day period prior to signing it. 
Employee has the right to revoke this release within seven (7) days
following the date of its execution by him. 
In order to revoke this Release, Employee must deliver notice of the
revocation in writing to Company’s General Counsel before the expiration of the
seven (7) day period.  However, if
Employee revokes this Release within such seven (7) day period, no severance
benefit will be payable to him under the Severance Plan and he shall return to
the Company any such payment received prior to that date.

 

6.             No Revocation
After Seven Days.  Employee
acknowledges and agrees that this Release may not be revoked at any time after
the expiration of the seven (7) day revocation period and that he/she will not
institute any suit, action, or proceeding, whether at law or equity,
challenging the enforceability of this Release. 
Employee further acknowledges and agrees that, with the exception of an
action to challenge the waiver of

 

18

 

claims under the ADEA, Employee shall not ever attempt to challenge the
terms of this Release, attempt to obtain an order declaring this Release to be
null and void, or institute litigation against the Company or any other
Releasee based upon a claim that is covered by the terms of the release
contained herein, without first repaying all monies paid to him/her under Article
4 of the Severance Plan.  Furthermore,
with the exception of an action to challenge his waiver of claims under the
ADEA, if Employee does not prevail in an action to challenge this Release, to
obtain an order declaring this Release to be null and void, or in any action
against the Company or any other Releasee based upon a claim that is covered by
the release set forth herein, Employee shall pay to the Company and/or the
appropriate Releasee all their costs and attorneys’ fees incurred in their
defense of Employee’s action.

 

7.            Governing Law and
Severability.  This Release and the
rights and obligations of the parties hereto shall be governed and construed in
accordance with the laws of the State of Delaware.  If any provision hereof is unenforceable or
is held to be unenforceable, such provision shall be fully severable, and this
document and its terms shall be construed and enforced as if such unenforceable
provision had never comprised a part hereof, the remaining provisions hereof
shall remain in full force and effect, and the court or tribunal construing the
provisions shall add as a part hereof a provision as similar in terms and
effect to such unenforceable provision as may be enforceable, in lieu of the
unenforceable provision.

 

This document contains all terms of the
Release and supersedes and invalidates any previous agreements or
contracts.  No representations,
inducements, promises or agreements, oral or otherwise, which are not embodied
herein shall be of any force or effect.

 

EMPLOYEE HAS CAREFULLY READ
THIS RELEASE AND ACKNOWLEDGES THAT IT CONSTITUTES A GENERAL RELEASE OF ALL
KNOWN AND UNKNOWN CLAIMS AGAINST THE COMPANY UNDER THE AGE DISCRIMINATION IN
EMPLOYMENT ACT.  EXECUTIVE ACKNOWLEDGES
THAT HE HAS HAD A FULL OPPORTUNITY TO CONSULT WITH AN ATTORNEY OR OTHER ADVISOR
OF HIS CHOOSING CONCERNING HIS EXECUTION OF THIS RELEASE AND THAT HE IS SIGNING
THIS RELEASE VOLUNTARILY AND WITH THE FULL INTENT OF RELEASING THE COMPANY FROM
ALL SUCH CLAIMS.

 

19

 

 

IN WITNESS WHEREOF, the undersigned acknowledges that he has read these
three pages and he sets his hand and seal this       
day of                     ,
20     .

 

 

	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
   

  
	
  Sworn to and subscribed before me this        
  day of                       ,
  20     .

  
	
   

  
	
   

  	
   

  
	
  Notary Public

  
	
   

  
	
  My Commission Expires:

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  
	
  Approved by Mirant Compensation Committee May 8th

  
				

 

20Exhibit 10.26

NON-EMPLOYEE DIRECTOR

NON-STATUTORY STOCK OPTION AGREEMENT

THIS AGREEMENT is entered into and effective as of
               
(the “Date of Grant”), by and between Marten Transport, Ltd. (the ”Company”)
and
               
(the “Optionee”).

A.            The
Company has adopted the Marten Transport, Ltd. 2005 Stock Incentive Plan (the “Plan”),
authorizing the Board of Directors of the Company, or a committee as provided
for in the Plan (the Board or such a committee to be referred to as the “Committee”),
to grant non-statutory stock options to non-employee directors of the Company.

B.            On
March 1, 2006, the Committee resolved to automatically grant options to
purchase up to 2,500 shares of common stock to non-employee directors; and
further resolved that such options are to be granted effective upon each
non-employee director’s annual election to the Board of Directors, and are to
be exercisable at the fair market value of the Company’s common stock on the
date of such election.

C.            On
               ,
the Optionee was elected as a non-employee director of the Company at the
Company’s annual meeting.

Accordingly, the parties agree as follows:

ARTICLE
1.  GRANT OF OPTION.

The Company hereby grants to the Optionee the option
(the “Option”) to purchase Two Thousand Five Hundred (2,500) shares (the “Option
Shares”) of the Company’s common stock, $0.01 par value (the “Common Stock”),
according to the terms and subject to the conditions hereinafter set forth and
as set forth in the Plan.  The Option is
not intended to be an “incentive stock option,” as that term is used in Section
422 of the Internal Revenue Code of 1986, as amended (the “Code”).

ARTICLE
2.  OPTION EXERCISE PRICE.

The per share price to be paid by Optionee in the
event of an exercise of the Option will be
$               .

ARTICLE
3.  DURATION OF OPTION AND TIME OF
EXERCISE.

3.1           Initial
Period of Exercisability.  The Option
will become exercisable, in its entirety, on the Date of Grant.  This Option will remain exercisable as to all
unexercised Option Shares until 5:00 p.m. (Mondovi, Wisconsin time) on the
tenth anniversary of the Date of Grant (“Time of Termination”), provided that
in the event of the death of Optionee, the rights to exercise this Option shall
remain exercisable by the Optionee’s 

 

heirs
or personal representatives through the earlier of (i) the Time of Termination,
or (ii) the date that is one year following the date of death of the Optionee.

3.2           Change
in Control. If a Change in Control (as defined in the Plan) of the Company
occurs, the Committee, in its sole discretion and without the consent of the
Optionee, may determine that the Optionee will receive, with respect to some or
all of the Option Shares, as of the effective date of any such Change in
Control of the Company, cash in an amount equal to the excess of the Fair
Market Value (as defined in the Plan) of such Option Shares immediately prior
to the effective date of such Change in Control of the Company over the option
exercise price per share of this Option (or, in the event that there is no
excess, this Option may be terminated).

ARTICLE
4.  MANNER OF OPTION EXERCISE

4.1           Notice.  This Option may be exercised by the Optionee
in whole or in part from time to time, subject to the conditions contained in
the Plan and in this Agreement, by delivery, in person, by facsimile or
electronic transmission or through the mail, to the Company at its principal
executive office in Mondovi, Wisconsin (Attention: Chief Financial Officer), of
a written notice of exercise.  Such
notice will be in a form satisfactory to the Committee, will identify the
Option, will specify the number of Option Shares with respect to which the
Option is being exercised, and will be signed by the person or persons so
exercising the Option.  Such notice will
be accompanied by payment in full of the total purchase price of the Option
Shares purchased.  In the event that the
Option is being exercised, as provided by the Plan, by any person or persons
other than the Optionee, the notice will be accompanied by appropriate proof of
right of such person or persons to exercise the Option.  As soon as practicable after the effective
exercise of the Option, the Optionee will be recorded on the stock transfer
books of the Company as the owner of the Option Shares purchased, and the
Company will deliver to the Optionee certificated or uncertificated (“book
entry”) shares.  In the event that the
Option is being exercised, as provided by resolutions of the Committee and
Section 4.2 below, by tender of a Broker Exercise Notice, the Company will
deliver such shares directly to the Optionee’s broker or dealer or their
nominee.

4.2           Payment.  At the time of exercise of this Option, the
Optionee will pay the total purchase price of the Option Shares to be purchased
solely in cash (including a check, bank draft or money order, payable to the
order of the Company); provided, however, that the Committee, in its sole
discretion, may allow such payment to be made, in whole or in part, by tender
of a Broker Exercise Notice, by tender, or attestation as to ownership, of
Previously Acquired Shares that have been held for the period of time necessary
to avoid a charge to the Company’s earnings for financial reporting purposes
and that are otherwise acceptable to the Committee, to the extent permissible
by law, by promissory note (on terms acceptable to the Committee in its sole
discretion), by a “net exercise” as described in the Plan, or by a combination
of such methods.  In the event the
Optionee is permitted to pay the total purchase price of this Option in whole
or in part by tender or attestation as to ownership of Previously Acquired
Shares, the value of such shares will be equal to their Fair Market Value on
the date of exercise of this Option.

 2
 

 

ARTICLE
5.  NONTRANSFERABILITY.

Neither this Option nor the Option Shares acquired
upon exercise may be transferred by the Optionee, either voluntarily or
involuntarily, or subjected to any lien, directly or indirectly, by operation
of law or otherwise, except as provided in the Plan.  Any attempt to transfer or encumber this
Option or the Option Shares other than in accordance with this Agreement and
the Plan will be null and void and will void this Option.

ARTICLE
6.  SERVICE.

Nothing in this Agreement will be construed to (a)
limit in any way the right of the Company to terminate the service of the
Optionee at any time, or (b) be evidence of any agreement or understanding,
express or implied, that the Company will retain the Optionee in any particular
position, at any particular rate of compensation or for any particular period
of time.

ARTICLE
7.  WITHHOLDING TAXES.

7.1           General
Rules.  The Company is entitled to
(a) withhold and deduct from future wages of the Optionee (or from other
amounts which may be due and owing to the Optionee from the Company), or make
other arrangements for the collection of, all legally required amounts
necessary to satisfy any federal, state or local withholding and
employment-related tax requirements attributable to the grant or exercise of
this Option or otherwise incurred with respect to this Option, (b) withhold
shares of Common Stock from the shares issued or otherwise issuable to the
Optionee in connection with this Option, or (c) require the Optionee promptly
to remit the amount of such withholding to the Company before acting on the
Optionee’s notice of exercise of this Option. 
In the event that the Company is unable to withhold such amounts, for
whatever reason, the Optionee must promptly pay the Company an amount equal to
the amount the Company would otherwise be required to withhold under federal,
state or local law.

7.2           Special
Rules.  The Committee may, in its
sole discretion and upon terms and conditions established by the Committee,
permit or require the Optionee to satisfy, in whole or in part, any withholding
or tax obligation as described in Section 7.1 above by electing to tender, or
by attestation as to ownership of, Previously Acquired Shares that have been
held for the period of time necessary to avoid a charge to the Company’s
earnings for financial reporting purposes and that are otherwise acceptable to
the Committee, or by a Broker Exercise Notice, or by a combination of such
methods.  For purposes of satisfying a
Participant’s withholding or employment-related tax obligation, Previously
Acquired Shares tendered or covered by an attestation will be valued at their
Fair Market Value.

 3
 

 

ARTICLE
8.  ADJUSTMENTS.

In the event of any reorganization, merger,
consolidation, recapitalization, liquidation, reclassification, stock dividend,
stock split, combination of shares, rights offering, divestiture or
extraordinary dividend (including a spin-off), or any other change in the
corporate structure or shares of the Company, the Committee (or, if the Company
is not the surviving corporation in any such transaction, the board of
directors of the surviving corporation), in order to prevent dilution or
enlargement of the rights of the Optionee, will make appropriate adjustment
(which determination will be conclusive) as to the number, kind and exercise
price of securities subject to this Option.

ARTICLE
9.  SUBJECT TO PLAN.

9.1           Terms
of Plan Prevail.  The Option has been
and the Option Shares granted and issued pursuant to this Agreement will be
granted and issued under, and are subject to the terms of, the Plan.  The terms of the Plan are incorporated by
reference in this Agreement in their entirety, and the Optionee, by execution
of this Agreement, acknowledges having received a copy of the Plan. The
provisions of this Agreement will be interpreted as to be consistent with the
Plan, and any ambiguities in this Agreement will be interpreted by reference to
the Plan.  In the event that any
provision of this Agreement is inconsistent with the terms of the Plan, the
terms of the Plan will prevail.

9.2           Definitions.  Unless otherwise defined in this Agreement,
the terms capitalized in this Agreement have the same meanings as given to such
terms in the Plan.

ARTICLE 10.  MISCELLANEOUS.

10.1         Binding
Effect.  This Agreement will be
binding upon the heirs, executors, administrators and successors of the parties
to this Agreement.

10.2         Governing
Law.  This Agreement and all rights
and obligations under this Agreement will be construed in accordance with the
Plan and governed by the laws of the State of Wisconsin without regard to
conflicts of laws provisions.

10.3         Entire
Agreement.  This Agreement and the
Plan set forth the entire agreement and understanding of the parties to this
Agreement with respect to the grant and exercise of this Option and the
administration of the Plan and supersede all prior agreements, arrangements,
plans and understandings relating to the grant and exercise of this Option and
the administration of the Plan.

10.4         Amendment
and Waiver.  Other than as provided
in the Plan, this Agreement may be amended, waived, modified or canceled only
by a written instrument executed by the parties hereto or, in the case of a
waiver, by the party waiving compliance.

10.5         Captions.  The Article, Section and paragraph captions
in this Agreement are for convenience of reference only, do not constitute part
of this Agreement and are not to be deemed to limit or otherwise affect any of
the provisions of this Agreement.

 4
 

 

10.6         Counterparts.  For convenience of the parties hereto, this
Agreement may be executed in any number of counterparts, each such counterpart
to be deemed an original instrument, and all such counterparts together to
constitute the same agreement.

The
parties to this Agreement have executed this Non-Statutory Stock Option
Agreement effective the day and year first above written.

 

	
  

  	
  MARTEN
  TRANSPORT, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its

  	
   

  

 

	
  

  	
  OPTIONEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name]

  

 

 

 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]