Document:

Exhibit 10.24 (Form of Award Notice - Stephen Russell)

    
      

    

    Exhibit
      10.24

    

    CELADON
      GROUP, INC.

    2006
      OMNIBUS INCENTIVE PLAN

    

    

    AWARD
      NOTICE

    

    

    
      	
               

              GRANTEE:

            	 	
              Stephen
                Russell

            
	
               

              TYPE
                OF AWARD:

            	 	 
	
               

              NUMBER
                OF SHARES:

            	 	 
	
               

              DATE
                OF GRANT:

            	 	 

    

    

    

        1.     Grant
      of Restricted Stock.
      This
      Award Notice serves to notify you that Celadon Group, Inc., a Delaware
      corporation (the “Company”),
      hereby grants to you, under the Company’s 2006 Omnibus Incentive Plan (the
“Plan”),
      a
      Restricted Stock Award (the “Award”),
      on
      the terms and conditions set forth in this Award Notice and the Plan, of the
      number of shares set forth above (“Restricted
      Shares”)
      of the
      Company’s common stock, par value $0.033 per share (the “Common
      Stock”),
      set
      forth above. The Plan is incorporated herein by reference and made a part of
      this Award Notice. A copy of the Plan is available from the Company’s Chief
      Financial Officer upon request. You should review the terms of this Award Notice
      and the Plan carefully. The capitalized terms used in this Award Notice and
      not
      otherwise defined herein are defined in the Plan.

    

        2.     Restrictions
      and
      Vesting.
      Subject
      to the terms and conditions set forth in this Award Notice and the Plan,
      provided you are still in the employment or service of the Company or any
      Subsidiary at that time, one or more portions of the Restricted Shares shall
      vest, and the restrictions thereon shall lapse, as of the dates specified in
      the
      table below (the “Performance Period”) if (and only if) the Company achieves at
      least the Adjusted Earnings Per Share (as defined below) indicated on the table
      below for the performance period applicable to each such Performance Period.
      Any
      fractional share resulting from proration shall vest on the last Vesting Date.
      To the extent the Company achieves Adjusted Earnings Per Share equal to or
      greater than the target for any subsequent Vesting Date, then all shares
      eligible for vesting at such higher target level shall immediately vest;
      provided, however, with the exception of a Permitted Tax Sale (as hereinafter
      defined) any Restricted Shares that vest prior to the applicable regularly
      scheduled Vesting Date set forth below must be held by you (you cannot sell,
      transfer, or otherwise dispose such Restricted Shares) until after such
      regularly scheduled Vesting Date. A “Permitted Tax Sale” shall mean a sale of
      that number of Restricted Shares sufficient to pay taxes on the Restricted
      Shares that vested at an assumed 45% tax rate. Any Restricted Shares that do
      not
      vest as of a particular Vesting Date nevertheless shall be eligible for vesting,
      and shall vest, if the Company achieves the applicable Adjusted Earnings Per
      Share target for a subsequent Vesting Date.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Adjusted
                EPS 

              Performance

              Target

            	
               

               

               

              Vesting
                Date and Performance Period

            	
              Percentage
                of Shares 

              Subject
                to Vesting and Release from 

              Restrictions
                for the Performance 

              Period
                Ended on the Vesting Date

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

    

        For
      purposes
      of this Award Notice, “Adjusted
      Earnings Per Share”
means
      the Company’s consolidated diluted earnings per share for the just completed
      fiscal year as set forth in the final audit for the Company’s consolidated group
      and adjusted up or down by the amount compensation expense is increased or
      decreased in such audit by changes in the Common Stock price reported by NASDAQ
      and the effect of any accelerated vesting of restricted stock
      awards.

    

        3.     Determination
      of Vesting.
      Between
      the end of fiscal___ and ___ and the Vesting Date, the Company’s Compensation
      Committee (the “Committee”)
      shall
      review the Company’s financial statements to determine the Adjusted Earnings Per
      Share. Based upon that review and determination, the Committee shall then
      instruct the Company as to whether any of the Restricted Shares shall vest
      and
      be released from the restrictions thereon.

    

        4.     Adjustment
      for Certain Events.
      The
      Adjusted Earnings Per Share and number of Restricted Shares will be adjusted
      ratably in accordance with Section 6.2 of the Plan.

    

        5.     Effect
      of Death or Other Termination of Employment.
      Anything to the contrary notwithstanding, if you are an employee for any portion
      of a fiscal year, and you die or become Disabled (as hereinafter defined) (an
      "Extraordinary
      Event")
      prior
      to the vesting date for such fiscal year, you (or if deceased or incapacitated
      your estate or representative or guardian) shall receive (i) all shares of
      restricted stock that have vested prior to the Extraordinary Event but have
      not
      yet been delivered; (ii) all shares of restricted stock that have not vested
      prior to the Extraordinary Event, but for which the related Performance Period
      has ended and the Committee subsequently determines the Adjusted Earnings Per
      Share target for such Performance Period is met; (iii) all shares of restricted
      stock that are eligible for regularly scheduled vesting for the Performance
      Period in which the Extraordinary Event takes place; and (iv) to the extent
      accelerated as a result of performance for the Performance Period in which
      year
      of Extraordinary Event takes place, all shares that became 

    
      
        
        

      

      
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    accelerated.
      “Disabled” shall mean the Committee’s good faith determination that you are
      unable to perform your assigned duties due to physical or mental illness or
      disease for 120 substantially consecutive days, or 180 days in any twelve month
      period. The shares under items (i) and (iii) shall be delivered promptly
      following the Extraordinary Event and the shares under items (ii) and (iv)
      shall
      be delivered promptly following determination that such acceleration was earned.
      Any shares received as a result of an Extraordinary Event shall be immediately
      transferable.

    

        6.     Effect
      of
      Change In Control.

    

            (a)     In
      General.
      Upon
      the occurrence of a Change In Control (as defined below), any unvested portion
      of the Restricted Shares shall immediately vest as of the date of the occurrence
      of such event. 

    

            (b)    “Change
      In Control” Defined.
      The
      term “Change
      In Control”
means
      a
      change in control of the Company of a nature that would be required to be
      reported in response to Item 5.01 of a Current Report on Form 8-K, as
      in effect on December 31, 2004, pursuant to Section 13 or 15(d) of the
      Exchange Act; provided that, without limitation, a Change In Control shall
      be
      deemed to have occurred at such time as: 

    

        (i)     Any
      “person” within the meaning of Section 14(d)(2) of the Exchange Act and
      Section 13(d)(3) of the Exchange Act, other than a Permitted Holder becomes
      the “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act,
      directly or indirectly, of fifty percent (50%) or more of the combined voting
      power of the outstanding securities of the Company ordinarily having the right
      to vote in the election of directors; provided, however, that the following
      will
      not constitute a Change In Control: any acquisition by any corporation if,
      immediately following such acquisition, more than seventy-five percent (75%)
      of
      the outstanding securities of the acquiring corporation (or the parent thereof)
      ordinarily having the right to vote in the election of directors is beneficially
      owned by all or substantially all of those persons who, immediately prior to
      such acquisition, were the beneficial owners of the outstanding securities
      of
      the Company ordinarily having the right to vote in the election of directors;
      

    

        (ii)     Individuals
      who constitute the Board on January 12, 2006, (the “Incumbent
      Board”)
      have
      ceased for any reason to constitute at least a majority thereof, provided that
      any person becoming a director after January 12, 2006, whose election, or
      nomination for election by the Company’s stockholders, was approved by a vote of
      at least three-fourths (3/4) of the directors comprising the Incumbent Board,
      either by a specific vote or by approval of the proxy statement of the Company
      in which such person is named as a nominee for director without objection to
      such nomination (other than an election or nomination of an individual whose
      initial assumption of office is in connection with an actual or threatened
      “election contest” relating to the election of directors of the Company, as such
      terms are used in Rule 14a-11 under the Exchange Act as in effect on
      January 23, 2000, or “tender offer,” as such term is used in
      Section 14(d) of the Exchange Act), shall be, for purposes of the Plan,
      considered as though such person were a member of the Incumbent Board;

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

        (iii)     Upon
      the
      consummation by the Company of a reorganization, merger, or consolidation,
      other
      than one with respect to which all or substantially all of those persons who
      were the beneficial owners, immediately prior to such reorganization, merger
      or
      consolidation, of outstanding securities of the Company ordinarily having the
      right to vote in the election of directors own, immediately after such
      transaction, more than seventy-five percent (75%) of the outstanding securities
      of the resulting corporation ordinarily having the right to vote in the election
      of directors; or 

    

        (iv)     Upon
      the
      approval by the Company’s stockholders of a complete liquidation and dissolution
      of the Company or the sale or other disposition of all or substantially all
      of
      the assets of the Company other than to a Subsidiary.

    

            (c)     “Permitted
      Holder” Defined.
      The
      term “Permitted
      Holder”
means:
      (i) the Company or a Subsidiary or (ii) any employee benefit plan
      sponsored by the Company or any Subsidiary.

    

        7.     Book-Entry
      Registration.
      The
      Restricted Shares initially will be evidenced by book-entry registration only,
      without the issuance of a certificate representing the Restricted
      Shares.

    

        8.     Issuance
      of Shares.
      Subject
      to Sections 9 and 13 of this Award Notice, upon the vesting of any
      Restricted Shares pursuant to this Award Notice, the Company shall issue a
      certificate representing such vested Restricted Shares as promptly as
      practicable following the date of vesting. The Restricted Shares may be issued
      during your lifetime only to you, or after your death to your designated
      beneficiary, or, in the absence of such beneficiary, to your duly qualified
      personal representative.

    

        9.     Withholding.
      You
      shall pay to the Company, or make other arrangements satisfactory to the Company
      regarding the payment of, any federal, state, or local taxes of any kind
      required by applicable law to be withheld with respect to the Restricted Shares
      awarded under this Award Notice. Your right to receive the Restricted Shares
      under this Award Notice is subject to, and conditioned on, your payment of
      such
      withholding amounts.

    

        10.     Nonassignability.
      The
      Restricted Shares and the right to vote such shares and to receive dividends
      thereon, may not, except as otherwise provided in the Plan, be sold, assigned,
      transferred, pledged, or encumbered in any way prior to the vesting of such
      shares, whether by operation of law or otherwise, except by will or the laws
      of
      descent and distribution. After vesting, the sale or other transfer of the
      shares of Common Stock shall be subject to applicable laws, regulations, and
      stock exchange or quotation system rules.

    

        11.     Rights
      as a Stockholder; Limitation on Rights.
      Unless
      the Award is cancelled as provided in Section 5 or 6 of this Award Notice,
      prior
      to the vesting of the Restricted Shares, you will have all of the other rights
      of a stockholder with respect to the Restricted Shares so awarded, including,
      but not limited to, the right to receive such cash dividends, if any, as may
      be
      declared on such shares from time to time and the right to vote (in person
      or by
      proxy) such shares at any meeting of stockholders of the Company. Neither the
      Plan, the granting of the Award, nor this Award Notice gives you any right
      to
      remain in the employment or service of the Company or any
      Subsidiary.

    
      
        
        

      

      
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        12.    Rights
      of the Company and Subsidiaries.
      This
      Award Notice does not affect the right of the Company or any Subsidiary to
      take
      any corporate action whatsoever, including without limitation its right to
      recapitalize, reorganize, or make other changes in its capital structure or
      business, merge or consolidate, issue bonds, notes, shares of Common Stock
      or
      other securities, including preferred stock, or options therefor, dissolve
      or
      liquidate, or sell or transfer any part of its assets or business.

    

        13.     Restrictions
      on
      Issuance of Shares.
      If at
      any time the Company determines that the listing, registration, or qualification
      of the Restricted Shares upon any securities exchange or quotation system,
      or
      under any state or federal law, or the approval of any governmental agency,
      is
      necessary or advisable as a condition to the issuance of a certificate
      representing any vested Restricted Shares, such issuance may not be made in
      whole or in part unless and until such listing, registration, qualification
      or
      approval shall have been effected or obtained free of any conditions not
      acceptable to the Company. 

    

        14.     Plan
      Controls.
      This
      Award is subject to all of the provisions of the Plan, which is hereby
      incorporated by reference, and is further subject to all the interpretations,
      amendments, rules, and regulations that may from time to time be promulgated
      and
      adopted by the Committee pursuant to the Plan. In the event of any conflict
      among the provisions of the Plan and this Award Notice, the provisions of the
      Plan will be controlling and determinative. 

    

        15.     Amendment.
      Except
      as otherwise provided by the Plan, the Company may only alter, amend, or
      terminate this Award with your consent. 

    

        16.     Governing
      Law.
      This
      Award Notice shall be governed by and construed in accordance with the laws
      of
      the State of Delaware, except as superseded by applicable federal law, without
      giving effect to its conflicts of law provisions. 

    

        17.     Notices.
      All
      notices and other communications to the Company required or permitted under
      this
      Award Notice shall be written, and shall be either delivered personally or
      sent
      by registered or certified first-class mail, postage prepaid and return receipt
      requested, or by telex or telecopier, addressed to the Company’s office at
      9503 East 33rd
      Street,
      One Celadon Drive, Indianapolis, Indiana 46235, Attn: Chief Financial
      Officer. Each such notice and other communication delivered personally shall
      be
      deemed to have been given when delivered. Each such notice and other
      communication delivered by mail shall be deemed to have been given when it
      is
      deposited in the United States mail in the manner specified herein, and each
      such notice and other communication delivered by telex or telecopier shall
      be
      deemed to have been given when it is so transmitted and the appropriate answer
      back is received.

    

    
      
        
        

      

      
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    ACKNOWLEDGEMENT

    

    The
      undersigned acknowledges receipt of, and understands and agrees to be bound
      by,
      this Award Notice and the Plan. The undersigned further acknowledges that this
      Award Notice and the Plan set forth the entire understanding between him or
      her
      and the Company regarding the Restricted Stock granted by this Award Notice
      and
      that this Award Notice and the Plan supersede all prior oral and written
      agreements on that subject.

    

    

    
      	
              Dated:
                _______________, 20___

            	 
	 	 
	 	
              Grantee:

            
	 	 
	 	 
	 	 
	 	 
	 	
              Celadon
                Group, Inc.

            
	 	 
	 	 
	 	
              By:

            	 
	 	
              Name:

            	 
	 	
              Title:

            	 

    

    

    Back
      to Form 10-Q

    
      
        
        

      

      
        6Exhibit 10.25 (Form of Award Notice - Incentive Stock Option)

    
      

    

    Exhibit
      10.25

    

    CELADON
      GROUP, INC.

    2006
      OMNIBUS INCENTIVE PLAN

    

    

    AWARD
      NOTICE

    

    

      
        	
                 

                GRANTEE:

              	 	 
	
                 

                TYPE
                  OF AWARD:

              	 	
                 

                Incentive
                  Stock Option (See below and refer to the Plan and your Section 10(a)
                  prospectus for limitations)

              
	
                 

                NUMBER
                  OF SHARES:

              	 	 
	
                 

                EXERCISE
                  PRICE PER SHARE:

              	 	 
	
                 

                DATE
                  OF GRANT:

              	 	 
	
                 

                EXPIRATION
                  DATE:

              	 	 

      

    

     

        1.     Grant
      of Option.
      This
      Award Notice serves to notify you that Celadon Group, Inc., a Delaware
      corporation (the “Company”),
      hereby grants to you, under the Company’s 2006 Omnibus Incentive Plan (the
“Plan”),
      an
      option (the “Option”)
      to
      purchase, on the terms and conditions set forth in this Award Notice and the
      Plan, up to the number of shares set forth above (the “Option
      Shares”)
      of the
      Company’s Common Stock, par value $0.033 per share (the “Common
      Stock”),
      at
      the price per Share set forth above. It is the Company's intention that the
      Option qualify as an incentive stock option, as defined in Section 422A of
      the Code to the extent possible. To the extent the entire Option will not so
      qualify (for example because the value of the portion of the Option first
      vesting in any year exceeds the dollar limitation for incentive stock options)
      then the maximum portion of the Option (each year) shall be deemed an incentive
      stock option and the remainder shall be deemed a non-qualified stock option.
      The
      Plan is incorporated herein by reference and made a part of this Award Notice.
      A
      copy of the Plan is available from the Company’s Accounting Department upon
      request. You should review the terms of this Award Notice and the Plan
      carefully. The capitalized terms used in this Award Notice are defined in the
      Plan. 

    

        2.     Term.
      Unless
      the Option is previously terminated pursuant to the terms of the Plan, the
      Option will expire at the close of business on the expiration date set forth
      above (the “Expiration
      Date”).
      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

        3.     Vesting.
      Subject
      to the terms and conditions set forth in this Award Notice and the Plan, the
      Option will vest and become exercisable commencing on ___________, in accordance
      with the following schedule:

    

    
      	
               

              Vesting
                Date

            	 	
              Cumulative
                Percentage of 

              Option
                Shares Vested

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

    

        4.     Exercise.
      

    

            (a)     Method
      of Exercise.
      To the
      extent exercisable under Section 3, the Option may be exercised in whole or
      in part, provided that the Option may not be exercised for less than
      one (1) share of Common Stock in any single transaction. The Option shall
      be exercised by your giving written notice of such exercise to the Company
      specifying the number of Option Shares that you elect to purchase and the
      Exercise Price to be paid. Upon determining that compliance with this Award
      Notice has occurred, including compliance with such reasonable requirements
      as
      the Company may impose pursuant to the Plan and payment of the Exercise Price,
      the Company shall issue to you a certificate for the Option Shares purchased
      on
      the earliest practicable date (as determined by the Company) thereafter.

    

            (b)     Payment
      of Exercise Price.
      To the
      extent permissible under the Plan, the Exercise Price may be paid as follows:
      

    

        (i)      In
      United States dollars in cash or by check, bank draft, or money order
      payable to the Company;

    

        (ii)     At
      the sole
      discretion of the Company’s Compensation Committee (the “Committee”),
      through the delivery of shares of Common Stock with an aggregate Fair Market
      Value at the date of such delivery equal to the Purchase Price;

     

      
      (iii)    At
      the sole
      discretion of the Committee, through a surrender of part of the Option or other
      exercisable options having a difference between (A) the exercise price of such
      surrendered Options and (B) the Fair market Value of the Common Stock equal
      to
      the Exercise Price; or

     

        (iv)     At
      the sole
      discretion of the Committee, in any combination of Sections 4(b)(i), 4(b)(ii),
      and 4(b)(iii) above. 

    

    The
      Committee in its sole discretion shall determine acceptable methods for
      surrendering Common Stock or options as payment upon exercise of the Option
      and
      may impose such limitations and conditions on the use of Common Stock or options
      to exercise the Option as it deems appropriate. Among other factors, the
      Committee will consider the restrictions of Rule 16b-3 of the Exchange Act
      and Section 402 of the Sarbanes-Oxley Act, and any successor laws, rules,
      or regulations.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

            (c)     Withholding.
      The
      exercise of the Option is conditioned upon your making arrangements satisfactory
      to the Company for the payment to the Company of the amount of all taxes
      required by any governmental authority to be withheld and paid over by the
      Company to the governmental authority on account of the exercise. The payment
      of
      such withholding taxes to the Company may be made by one or any combination
      of
      the following methods: (a) in cash or by check, or (b) by the Company
      withholding such taxes from any other compensation owed to you by the Company
      or
      any Subsidiary.

    

        5.     Effect
      of Death.
      In the
      event of your death prior to the complete exercise of the Option, the remaining
      portion of the Option may be exercised in whole or in part, subject to all
      of
      the conditions on exercise imposed by the Plan and this Award Notice, within
      one (1) year after the date of your death, but only: (a) by the
      beneficiary designated on your beneficiary designation form filed with the
      Company, or in the absence of same, by your estate or by or on behalf of the
      person or persons to whom the Option passes under your will or the laws of
      descent and distribution, (b) to the extent that the Option was vested and
      exercisable on the date of your death, and (c) prior to the close of
      business on the Expiration Date of the Option. 

    

        6.     Effect
      of Disability.
      In the
      event of your Disability (as defined below) prior to the complete exercise
      of
      the Option, the remaining portion of the Option may be exercised in whole or
      in
      part, subject to all of the conditions on exercise imposed by the Plan and
      this
      Award Notice, within one (1) year after the date of your Disability, but
      only: (a) to the extent that the Option was vested and exercisable on the
      date of your Disability, and (b) prior to the close of business on the
      Expiration Date of the Option. The term “Disability”
means
      you are permanently and totally disabled within the meaning of
      Section 22(e)(3) of the Code. 

    

        7.     Effect
      of
      Other Termination.
      

    

            (a)     With
      Cause.
      Upon
      your termination by the Company for Cause (as defined below) prior to the
      complete exercise of the Option, the remaining portion of the Option, whether
      or
      not then exercisable, shall be forfeited as of the date of such termination
      and
      shall no longer be exercisable on or after such date of termination.

    

            (b)    Without
      Cause.
      Upon
      your termination for a reason other than death, Disability, or Cause (as defined
      below) prior to the complete exercise of the Option, the remaining portion
      of
      the Option may be exercised in whole or in part, subject to all of the
      conditions on exercise imposed by the Plan and this Award Notice, within
      three (3) months after the date of such termination, but only: (i) to
      the extent that the Option was vested and exercisable on the date such
      termination, and (ii) prior to the Expiration Date of the
      Option.

    

            (c)    “Cause”
      Defined.
      The
      term “Cause”
means
      (i) your willful and continued failure to substantially perform your duties
      with the Company or a Subsidiary after written warnings identifying the lack
      of
      substantial performance are delivered to you to specifically identify the manner
      in which the Company or a Subsidiary believes that you have not substantially
      performed

    
      
        
        

      

      
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    your
      duties, (ii) your willful engaging in illegal conduct which is materially
      and demonstrably injurious to the Company or any Subsidiary, (iii) your
      commission of a felony, (iv) your material breach of a fiduciary duty owed
      by you to the Company or any Subsidiary, (v) your intentional, unauthorized
      disclosure to any person of confidential information or trade secrets of a
      material nature relating to the business of the Company or any Subsidiary,
      or
      (vi) your engaging in any conduct that the Company’s or a Subsidiary’s written
      rules, regulations, or policies specify as constituting grounds for discharge.
      

    

        8.      Effect
      of Change In Control. 

    

            (a)      In
      General.
      Upon
      the occurrence of a Change In Control (as defined below), the unvested portion
      of the Option shall immediately vest and become exercisable as of the date
      of
      the occurrence of such event. 

    

            (b)      “Change
      In Control” Defined.
      The
      term “Change
      In Control”
means
      a
      change in control of the Company of a nature that would be required to be
      reported in response to Item 5.01 of a Current Report on Form 8-K, as in effect
      on December 31, 2004, pursuant to Section 13 or 15(d) of the Exchange Act;
      provided that, without limitation, a Change In Control shall be deemed to have
      occurred at such time as: 

    

        (i)    Any
      “person” within the meaning of Section 14(d)(2) of the Exchange Act and Section
      13(d)(3) of the Exchange Act, other than a Permitted Holder becomes the
“beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, directly or
      indirectly, of fifty percent (50%) or more of the combined voting power of
      the
      outstanding securities of the Company ordinarily having the right to vote in
      the
      election of directors; provided, however, that the following will not constitute
      a Change In Control: any acquisition by any corporation if, immediately
      following such acquisition, more than seventy-five percent (75%) of the
      outstanding securities of the acquiring corporation (or the parent thereof)
      ordinarily having the right to vote in the election of directors is beneficially
      owned by all or substantially all of those persons who, immediately prior to
      such acquisition, were the beneficial owners of the outstanding securities
      of
      the Company ordinarily having the right to vote in the election of directors;
      

    

        (ii)    Individuals
      who constitute the Board on January 12, 2006, (the “Incumbent
      Board”)
      have
      ceased for any reason to constitute at least a majority thereof, provided that
      any person becoming a director subsequent to January 12, 2006 whose election,
      or
      nomination for election by the Company’s stockholders, was approved by a vote of
      at least three-fourths (3/4) of the directors comprising the Incumbent Board,
      either by a specific vote or by approval of the proxy statement of the Company
      in which such person is named as a nominee for director without objection to
      such nomination (other than an election or nomination of an individual whose
      initial assumption of office is in connection with an actual or threatened
      “election contest” relating to the election of directors of the Company, as such
      terms are used in Rule 14a-11 under the Exchange Act as in effect on January
      23,
      2000, or “tender offer,” as such term is used in Section 14(d) of the Exchange
      Act), shall be, for purposes of the Plan, considered as though such person
      were
      a member of the Incumbent Board; 

    
      
        
        

      

      
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        (iii)    Upon
      the
      consummation by the Company of a reorganization, merger, or consolidation,
      other
      than one with respect to which all or substantially all of those persons who
      were the beneficial owners, immediately prior to such reorganization, merger
      or
      consolidation, of outstanding securities of the Company ordinarily having the
      right to vote in the election of directors own, immediately after such
      transaction, more than seventy-five percent (75%) of the outstanding securities
      of the resulting corporation ordinarily having the right to vote in the election
      of directors; or 

    

        (iv)    Upon
      the
      approval by the Company’s stockholders of a complete liquidation and dissolution
      of the Company or the sale or other disposition of all or substantially all
      of
      the assets of the Company other than to a Subsidiary. 

    

            (c)      “Permitted
      Holder” Defined.
      The
      term “Permitted
      Holder”
means:
      (i) the Company or a Subsidiary or (ii) any employee benefit plan sponsored
      by
      the Company or any Subsidiary. 

    

        9.      Notice
      of Disposition of Shares.
      You
      hereby agree that you shall promptly notify the Company of the disposition
      of
      any of the Option Shares acquired upon exercise of the Option, including a
      disposition by sale, exchange, gift, or transfer of legal title, if such
      disposition occurs within two (2) years from the Date of Grant or within one
      (1)
      year from the date that you exercise the Option and acquire such Option Shares.
      

    

        10.      Nonassignability.
      The
      Option may not be alienated, transferred, assigned, or pledged (except by will
      or the laws of descent and distribution). Except as otherwise provided by
      Section 5 of this Award Notice, the Option is only exercisable by you during
      your lifetime. 

    

        11.      Limitation
      of Rights.
      You
      will not have any rights as a stockholder with respect to the Option Shares
      until you become the holder of record of such shares by exercising the Option.
      Neither the Plan, the granting of the Option, nor this Award Notice gives you
      any right to remain in the employment of the Company or any Subsidiary.

    

        12.     Rights
      of the Company and Subsidiaries.
      This
      Award Notice does not affect the right of the Company or any Subsidiary to
      take
      any corporate action whatsoever, including without limitation its right to
      recapitalize, reorganize, or make other changes in its capital structure or
      business, merge or consolidate, issue bonds, notes, shares of Common Stock,
      or
      other securities, including preferred stock, or options therefor, dissolve
      or
      liquidate, or sell or transfer any part of its assets or business. 

    

        13.     Restrictions
      on Issuance of Shares.
      If at
      any time the Company determines that the listing, registration, or qualification
      of the Option Shares upon any securities exchange or quotation system, or under
      any state or federal law, or the approval of any governmental agency, is
      necessary or advisable as a condition to the exercise of the Option, the Option
      may not be exercised in whole or in part unless and until such listing,
      registration, qualification, or approval shall have been effected or obtained
      free of any conditions not acceptable to the Company. 

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

        14.      Plan
      Controls.
      The
      Option is subject to all of the provisions of the Plan, which is hereby
      incorporated by reference, and is further subject to all the interpretations,
      amendments, rules, and regulations that may from time to time be promulgated
      and
      adopted by the Committee pursuant to the Plan. In the event of any conflict
      among the provisions of the Plan and this Award Notice, the provisions of the
      Plan will be controlling and determinative. 

    

        15.      Amendment.
      Except
      as otherwise provided by the Plan, the Company may only alter, amend, or
      terminate the Option with your consent. 

    

        16.      Governing
      Law.
      This
      Award Notice shall be governed by and construed in accordance with the laws
      of
      the State of Delaware, except as superseded by applicable federal law, without
      giving effect to its conflicts of law provisions. 

    

        17.      Notices.
      All
      notices and other communications to the Company required or permitted under
      this
      Award Notice shall be written, and shall be either delivered personally or
      sent
      by registered or certified first-class mail, postage prepaid and return receipt
      requested, or by telex or telecopier, addressed to the Company’s office at 9503
      East 33rd
      Street,
      One Celadon Drive, Indianapolis, Indiana 46235, Attention: Chief Financial
      Officer. Each such notice and other communication delivered personally shall
      be
      deemed to have been given when delivered. Each such notice and other
      communication delivered by mail shall be deemed to have been given when it
      is
      deposited in the United States mail in the manner specified herein, and each
      such notice and other communication delivered by telex or telecopier shall
      be
      deemed to have been given when it is so transmitted and the appropriate answer
      back is received. 

    

    

    

    *
      * * * * * * * * *

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    ACKNOWLEDGEMENT

    

    The
      undersigned acknowledges receipt of, and understands and agrees to be bound
      by,
      this Award Notice and the Plan. The undersigned further acknowledges that this
      Award Notice and the Plan set forth the entire understanding between him or
      her
      and the Company regarding the incentive stock options granted by this Award
      Notice and that this Award Notice and the Plan supercede all prior oral and
      written agreements on that subject. 

    

    

    
      	
              Dated:
                _______________, 20___

            	 
	 	 
	 	
              Grantee:

            
	 	 
	 	 
	 	 
	 	 
	 	
              Celadon
                Group, Inc.

            
	 	 
	 	 
	 	
              By:

            	 
	 	
              Name:

            	 
	 	
              Title:

            	 

    

    

     

    Back
      to Form 10-Q

    
      
        
        

      

      
        7

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