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Exhibit (e)(14)
EMPLOYMENT AND NON-COMPETE AGREEMENT
BY AND BETWEEN
XXXXXXX TRUCK LEASING CORP.
AND
I. XXXXX XXXXX
THIS AGREEMENT, is by and between Xxxxxxx Truck Leasing Corp. (the
"Company") and I. Xxxxx Xxxxx (the "Executive") and is effective as of this 31st
day of December, 2000 (the "Effective Date").
W I T N E S S E T H:
WHEREAS, the Executive is currently employed by the Company or an affiliate
thereof in a managerial position; and
WHEREAS, the Executive has, in the course of his employment, developed
relationships with employees and customers of the Company, and learned valuable
and sensitive information concerning the Company's policies and procedures; and
WHEREAS, the Executive has, in the course of his employment, been exposed
to valuable and sensitive Company reports, files, memoranda, records, software,
and other property; and
WHEREAS, the Company recognizes that the solicitation of its employees and
customers, and the use or disclosure of the policies, procedures, information,
documents, and property of the Company would be damaging to the Company's
interests; and
WHEREAS, the Company's board of directors has determined that it is in the
best interests of the Company to protect its interests through the use of
Employment and Non-Compete Agreements; and
WHEREAS, the Company's board of directors has determined that it is in the
best interests of the Company and its shareholders for the Company to agree to
provide benefits under the circumstances described below to the Executive and
other executives who agree to such an agreement.
NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, the parties hereto agree as follows:
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SECTION 1
DEFINITIONS
"Announcement" shall mean a press release issued by the Company announcing
the signing of an agreement whereby the Company will merge with any other entity
or a tender offer for the shares of the Company stock will be initiated.
"Board" shall mean the Board of Directors of the Company or the ultimate
corporate parent entity which owns the Company if the Company is not public.
"Cause" shall mean a unanimous determination by the Board that the
Executive has been convicted of a felony, has embezzled from, or committed fraud
against, the Company, which embezzlement or fraud has a material adverse
financial impact on the Company, or has been grossly insubordinate, which gross
insubordination has continued after written notice of such from the Board, in
any such case which determination, if challenged by the Executive within 90 days
in accordance with Section 7, is upheld by a final, non-appealable arbitration
award.
"Change in Control" shall mean the earlier to occur of the effective day of
(a) the closing of a tender offer for the Company's stock following the
Announcement or (b) the closing of a merger or similar transaction
("Transaction") of the Company and any other entity; provided, however, a
Transaction the result of which is the shareholders of the Company's voting
securities immediately prior to the Transaction own, directly or indirectly in
substantially the same proportion, at least 60% of the voting securities of the
survivor of such Transaction immediately following such Transaction shall not be
a Change in Control.
"Change in Control Fee" shall mean $750,000.
"Code" shall mean the Internal Revenue Code of 1986, as amended.
"Company Information" shall mean (i) confidential information including,
without limitation, information received from third parties under confidential
conditions, (ii) information subject to the Company's and its affiliates'
attorney-client or work-product privilege; and (iii) other technical, business,
legal or financial information (including, without limitation, customer lists),
the use or disclosure of which might reasonably be construed to be contrary to
the Company's and its affiliates' interests.
"Date of Termination" shall mean the date on which the Executive's
employment is terminated.
"Employment Period" shall mean the period of time during the Extension
Period the Executive is an employee of the Company.
"Extension Period" shall mean the 60 month period following the Change in
Control, provided that if the Employment Period is less than twenty-four (24)
months and if the Company terminates Executive's employment for Cause or if
Executive terminates his employment without Good Reason, the Extension Period
shall be reduced by the difference between twenty-four (24) months and the
Employment Period.
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"Good Reason" shall mean a (i) reduction in title, responsibilities or
support services, (ii) relocation outside of the city where the Executive
currently has his main office, (iii) travel at a level that exceeds the travel
requirements before the Change in Control, (iv) any breach by the Company of its
obligations hereunder, (v) any breach by the purchaser under a merger or
acquisition agreement pursuant to which the Change in Control takes place
relating to employee benefits or directors' and officers' insurance or
indemnification provisions, or (vi) any reason whatsoever two years after the
Change in Control.
"Monthly Amount" shall mean (a) $60,500 for the shorter of (i) the first 24
months of the Extension Period or (ii) the Employment Period if less than 24
months because the Company terminates Executive's employment for Cause or
Executive terminates his employment without Good Reason; and (b) $51,333 for the
remainder of the Extension Period.
"Non-Compete Monthly Amount" shall mean the portion of the Monthly Amount
in clause (b) of the definition of Monthly Amount which is paid in consideration
of the Executive's agreement to the restrictions and other provisions of Section
8, with the remainder of the Monthly Amount and other benefits under this
Agreement paid after the Employment Period to be treated as severance.
Executive's Non-Compete Monthly Amount shall be calculated by multiplying the
Monthly Amount in clause (b) of the definition of Monthly Amount by 100 percent.
"Pro Rated Bonus" shall mean $316,257 multiplied by a fraction, the
numerator of which is the number of days in the current fiscal year through the
Change in Control, and the denominator of which is 365.
"Retirement Plan" shall mean the Company's qualified defined benefit
retirement plan(s) in which the Executive participates.
"SERP" shall mean any and all supplemental retirement plans in which the
Executive participates (including, but not limited to, any benefit restoration
plan(s) maintained by the Company from time to time).
SECTION 2
TERM OF AGREEMENT
This Agreement shall be effective as of the Effective Date but shall
terminate on the first annual anniversary of the Effective Date if no Change in
Control occurs prior to such date.
SECTION 3
BENEFITS
(a) On the date of a Change in Control, the Company shall pay to the
Executive in cash the Change in Control Fee and the Pro Rated Bonus.
(b) During the Extension Period, the Company shall pay to the Executive the
Monthly Amount, payable on the first day of each month, prorated for partial
months.
(c) If the Executive's employment is terminated during the Extension
Period, then,
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(i) within five business days after the Date of Termination, the
Company shall pay to the Executive (or if the Executive dies after his Date of
Termination, but before receiving all payments to which he has become entitled
hereunder, to the estate of the Executive) in cash all accrued but unpaid
salary, earned but unpaid bonuses, and accrued but unused vacation;
(ii) the Company shall pay to the Executive (or if the Executive dies
after his Date of Termination, but before receiving all payments to which he has
become entitled hereunder, to the estate of the Executive) the Monthly Amount on
the first day of each month during the remainder of the Extension Period;
(iii) the Company shall pay to the Executive (or if the Executive dies
after his Date of Termination, but before receiving all payments to which he has
become entitled hereunder, to his beneficiary, if any, under the Retirement
Plan) a monthly amount equal to the excess of (1) the monthly benefit under (x)
the Retirement Plan and (y) the SERP, that the Executive or his beneficiary, if
any, under the Retirement Plan would have received if his employment had
continued for the Extension Period (giving credit for all purposes, including,
but not limited to, accrual of benefits, vesting, age and years of service),
assuming that, for purposes of determining benefits under the Retirement Plan
and SERP, the Executive's covered annual compensation ("Covered Compensation")
during the Extension Period would have been equal to the Executive's annual rate
of Covered Compensation at the Date of Termination or, if greater, at the time
of the Change in Control (determined without regard to compensation or benefit
limitations prescribed by federal law or regulation), over (2) the Executive's
actual monthly benefit (paid or payable), if any, under the Retirement Plan and
the SERP, with such excess being paid in the same manner and at the same time as
the benefit under the Retirement Plan or the SERP, the present value of such
payments amount to be placed in a Rabbi trust pro rata over the Extension
Period;
(iv) on the Date of Termination the Company shall transfer title and
ownership to the Executive of his laptop computer, if any, without any payment
by the Executive to the Company.
(d) During the Extension Period (whether or not during the Employment
Period) the Executive shall be entitled to the following additional benefits:
(i) The Executive and, as applicable, the Executive's covered
dependants shall be entitled to all health, welfare, and fringe benefits
provided by the Company to its key employees generally or to the Executive on an
individual or group basis (including, but not limited to, any life, accident,
health, hospitalization or long-term disability insurance, maintained from time
to time by the Company), whether maintained pursuant to a plan, policy or other
arrangement (written or unwritten), as if the Executive were still employed
during such period, at the same level of benefits and at the same dollar cost to
the Executive as is available generally to comparable employees of the Company
(but in no instances shall such benefits be at a level less than as in effect on
the date of the Change in Control). If the Company reasonably determines that
the coverage required under this Section would cause a welfare plan sponsored by
the Company to violate any provision of the Code prohibiting discrimination in
favor of highly compensated employees or key employees, or if any benefits
described in this Section cannot be
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provided (or the Company determines that it does not wish to provide such
benefits) pursuant to the appropriate plan or program maintained for employees
of the Company, the Company shall provide such benefits outside such plan or
program at no additional cost (including, without limitation, tax costs) to the
Executive or, as determined by the Company in its sole discretion, the Company
will pay to the Executive the cash equivalent thereof. The benefits provided in
accordance with this Section shall be secondary to any comparable benefits
provided by another employer if and only if the Executive chooses to be covered
by such other employee plan.
(ii) The continued use of the Executive's Company car, if any,
consistent with past practices as in effect immediately prior to the Change in
Control (including but not limited to replacement with a new comparable
automobile when the automobile is three years old); provided that the Company
may at any time following the Date of Termination, in its discretion, discharge
its obligation under this Section by transferring title to such car to the
Executive.
(e) (i) If all, or any portion, of the payments and benefits provided under
this Agreement, if any, either alone or together with other payments and
benefits which the Executive receives or is entitled to receive from the
Company, would constitute an excess "parachute payment" within the meaning of
Section 280G of the Code (whether or not under an existing plan, arrangement, or
other agreement) (each such parachute payment, a "Parachute Payment"), and would
result in the imposition on the Executive of an excise tax under Section 4999 of
the Code, then, in addition to any other benefits to which the Executive is
entitled under this Agreement or otherwise, the Executive shall be paid an
amount in cash equal to the sum of the excise taxes payable by the Executive by
reason of receiving Parachute Payments plus the amount necessary to place the
Executive in the same after-tax position (taking into account any and all
applicable federal, state and local excise, income or other taxes at the highest
possible applicable rates on such Parachute Payments (including, without
limitation, any payments under this Section) as if no excise taxes had been
imposed with respect to Parachute Payments (the "Parachute Gross-Up"). Any
Parachute Gross-Up otherwise required by this Section shall not be made later
than the time of the corresponding payment or benefit hereunder giving rise to
the underlying Section 4999 excise tax, even if the payment of the excise tax is
not required under the Code until a later time.
(ii) Subject to the provisions of Section 3(e)(iii) and except as may
otherwise be agreed to by the Company and the Executive, the amount or amounts
(if any) payable under this Section 3 shall be as conclusively determined by the
Ernst & Young, L.L.P., or such other firm as mutually agreed to by the Company
and the Executive ("Independent Tax Counsel"), whose determination or
determinations shall be final and binding on all parties. The Executive shall
agree to utilize such determination or determinations, as applicable, in filing
all of the Executive's tax returns with respect to the excise tax imposed by
Section 4999 of the Code, if any. If such Independent Tax Counsel fails or
refuses to make the required determinations for any reason, then such
determinations shall be made by a comparable firm or group of national
reputation to which the parties reasonably mutually agreed. All fees and
expenses of the Independent Tax Counsel or its replacement shall be paid by the
Company.
(iii) As a result of the uncertainty in the application of Section 4999
of the Code at the time of the initial determination by the Independent Tax
Counsel hereunder, it is possible that Parachute Gross-Up payments, if any,
which will not have been made by the
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Company, should have been made, together with any interest, penalties or taxes
of any kind thereon, consistent with the calculations required to be made
hereunder (a "Underpayment"). The Company shall pay all such Underpayment to or
for the benefit of the Executive. The Executive 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 within ten (10)
business days after the Executive is informed in writing of such claim. The
Company shall notify the Executive within ten (10) business days of receipt of
the Executive notice that the Company (x) will pay the Underpayment and do so on
or before the date due, or (y) that it desires to contest such claim. The
Executive will cooperate with the Company in any such contest; 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 Executive 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. 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 Executive shall be entitled, at Executive's expense, to settle
or contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.
(iv) References herein to Code sections shall apply to comparable Code
sections in the event of any amendment to the Code.
(f) In the event of the Executive's termination of employment under this
Agreement, the Executive shall be under no obligation to seek other employment,
and there shall be no offset against amounts due the Executive under this
Agreement on account of any remuneration attributable to any subsequent
employment.
SECTION 4
EMPLOYMENT
Following a Change in Control, the Executive will, except as provided
below, continue as an employee during the Extension Period. During the
Employment Period:
(i) The Executive shall perform services consistent with his past
practices,
(ii) The Executive shall not be required to relocate outside of the
city where the Executive currently has his main office or travel in excess of
past practices,
(iii) The Executive shall enjoy the same or comparable office and
support services as he enjoyed prior to the Change in Control.
(iv) The Executive shall not be required to devote more time to Company
business than he did prior to the Change in Control and may continue director or
officer positions with other private or public entities that do not violate
Section 8.
(v) The Executive's expenses shall be reimbursed consistent with past
practices,
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(vi) The Executive shall receive not less than four weeks paid
vacation, and
(vii) The Executive shall receive continued payment of professional and
organizational dues and fees as in effect prior the Change in Control.
No breach or alleged breach of this Section 4 shall constitute grounds for,
or otherwise entitle, the Company to offset payments otherwise owing to the
Executive under this Agreement.
SECTION 5
SOURCE OF PAYMENTS
All payments provided for in Sections 3 and 8 of this agreement shall be
paid in cash from the general funds of the Company; provided, however, that such
payments shall be reduced by the amount of any payments made to the Executive or
his dependents, beneficiaries or estate from any trust or special or separate
fund established by the Company to assure such payments. Except for Rabbi
trusts for SERP, which shall be fully funded consistent with past practices, and
for the payments referred to in Section 3(c)(iii), the Company shall not be
required to establish a special or separate fund or other segregation of assets
to assure such payments. If the Company shall make any investments to aid it in
meeting its obligations hereunder, the Executive shall have no right, title or
interest in or to any such investments except as may otherwise be expressly
provided in a separate written instrument relating to such investments. Except
as provided above, nothing contained in this Agreement, and no action taken
pursuant to its provisions, shall create or be construed to create a trust of
any kind or a fiduciary relationship between the Company and the Executive or
any other person. To the extent that any person acquires a right to receive
payments from the Company such right shall be no greater than the right of an
unsecured creditor of the Company.
SECTION 6
LITIGATION EXPENSES
In addition to the Company's obligations under Section 3(c) hereof, the
Company shall pay all legal fees and expenses incurred in a legal proceeding
(including arbitration) by the Executive in seeking to obtain or enforce any
right or benefit provided by this Agreement (including, without limitation, any
rights to a Parachute Gross-Up). Such payments are to be made within five days
after the Executive's request for payment accompanied with such evidence of fees
and expenses incurred as the Company reasonably may require; provided, however,
that if the Executive institutes a proceeding and the judge or other
decision-maker presiding over the proceeding affirmatively finds that the
Executive has failed to prevail substantially, he shall pay his own costs and
expenses (and, if applicable, return any amounts theretofore paid on his behalf
under this Section 6.
SECTION 7
ARBITRATION
All disputes with respect to the subject matter of this Agreement and the
enforcement of rights hereunder shall be submitted to binding arbitration in
accordance with the rules of the American Arbitration Association (the "AAA").
Each party hereto shall designate one arbitrator (who need not be impartial)
within fifteen (15) days after notice of the dispute. The two
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arbitrators so designated shall endeavor to designate promptly a third, neutral
arbitrator. If the two arbitrators have not designated the third arbitrator by
the fifteenth (15th) day following the designation of the second arbitrator, or
if a second arbitrator has not been designated by the (15th) day following the
designation of the first, either Party may request the AAA to designate the
remaining arbitrator(s). The third arbitrator shall take an oath of neutrality.
The arbitrators shall not be bound by judicial formalities and may abstain from
following the strict rules of evidence and shall interpret this Agreement as an
honorable engagement and not merely as a legal obligation. The arbitrators
shall have the power to render equitable relief as may be available in
accordance with applicable law. Unless otherwise agreed by the parties, any
such arbitration shall take place in [insert applicable city where Executive's
office is currently located], and shall be conducted in accordance with the
Rules of the AAA. The determination reached in such arbitration shall be final
and binding on both parties without any right of appeal or further dispute. The
arbitrators' award may be confirmed in, and judgment upon the award entered by,
any federal or state court having jurisdiction over the parties.
SECTION 8
RESTRICTIVE COVENANTS
(a) Within a reasonable period of time following his termination of
employment, the Executive shall return to the Company all Company Information,
reports, files, memoranda, records, credit cards, cardkey passes, door and file
keys, computer access codes, software and other property which the Executive has
received, prepared, or helped to prepare in connection with his employment with
the Company, except as provided in Section 3. The Executive acknowledges that
in the course of employment with the Company, he has acquired Company
Information and that such Company Information has been disclosed to him in
confidence and for the Company's use only. The Executive agrees that, during
the Extension Period, he (i) will keep such Company Information confidential at
all times, (ii) will not disclose or communicate Company Information to any
third party, and (iii) will not make use of Company Information on his own
behalf or on behalf of any third party. The Executive further acknowledges and
agrees that the Company's remedy in the form of monetary damages for any breach
by him of any of the provisions of this Section 8 may be inadequate and that, in
addition to any monetary damages for such breach, the Company shall be entitled
to institute and maintain any appropriate proceeding or proceedings, including
an action for specific performance and/or injunction.
(b) Executive agrees not to, during the Extension Period, directly or
indirectly, individually or on behalf of persons not now parties to this
Agreement, or as a director, officer, principal, agent, executive, or in any
other capacity or relationship, engage in any truck rental and leasing business
(except as a passive investor holding not more than 3% of the equity of such
business), or aid or endeavor to assist any business or legal entity, that is in
the truck rental and leasing business and that competes with the Company
anywhere in continental United States. The Company and Executive acknowledge
the reasonableness of this covenant not to compete and the reasonableness of the
geographic area and duration of time which are a part of said covenant.
(c) Unless waived in writing by the Company, Executive further agrees that
he will not, directly or indirectly, during the Extension Period, solicit the
trade or patronage of any of the
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customers of the Company, regardless of the location of such customers of the
Company with respect to any services, products, or other matters in which the
Company is active.
(d) Unless waived in writing by the Company, Executive further agrees that
he will not, directly or indirectly, during the Extension Period, solicit or
attempt to entice away from the Company any director, agent or employee of the
Company.
(e) Executive acknowledges that the Company has no adequate remedy at law
and would be irreparably harmed if Executive breaches or threatens to breach any
of the provisions of this Section 8 and, therefore, agrees that the Company
shall be entitled to injunctive relief to prevent any such breach or threatened
breach thereof and to specific performance of the terms of this Section 8 (in
addition to any other legal or equitable remedy the Company may have, including
if so determined by arbitration pursuant to Section 7 that the Company is not
obligated to pay to the Executive (or the Executive is required to repay to the
Company) a portion or all of the Non-Compete Monthly Amount; provided, however,
in all instances the Company shall continue to pay to the Executive the
Non-Compete Monthly Amount unless and until there shall have been a final,
non-appealable arbitration award determining the respective rights of the
parties. Executive further agrees that Executive shall not, in any equity
proceeding relating to the enforcement of this Section 8, raise the defense that
the Company has an adequate remedy at law. Nothing in this Agreement shall be
construed as prohibiting the Company from pursuing any other remedies at law or
in equity that it may have under and in respect of this Agreement or any other
agreement.
(f) The Executive agrees to pay to the Company any outstanding amounts owed
to the Company; provided, however, that no breach or alleged breach of this
subsection (f) or any other provision of this Section 8 shall constitute grounds
for, or otherwise entitle, the Company to offset payments otherwise owed to the
Executive under this Agreement.
SECTION 9
SEVERABILITY
If, for any reason, any one or more of the provisions or part of a
provision contained in this Agreement shall be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision or part of a provision of this Agreement
not held so invalid, illegal or unenforceable, and each other provision or part
of a provision shall to the fullest extent consistent with law continue in full
force and effect.
SECTION 10
AMENDMENT, TERMINATION, OR MODIFICATION
Except as provided below, this Agreement may not be terminated, modified or
amended (other than with respect to amendments or modifications made by the
Company solely for purposes of clarifying an ambiguous or unclear provision)
other than by an instrument in writing signed by the parties hereto. No term or
condition of this Agreement shall be deemed to have been waived, nor shall there
be any estoppel against the enforcement of any provision of this Agreement,
except by written instrument signed by the party charged with such waiver or
estoppel. No such written waiver shall be deemed a continuing waiver unless
specifically stated
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therein, and each such waiver shall operate only as to the specific term or
condition waived and shall not constitute a waiver of such term or condition for
the future or as to any act other than that specifically waived.
SECTION 11
CONSOLIDATION, MERGER, OR SALE OF ASSETS; ASSIGNABILITY
The Company shall require (a) any successor (whether direct or indirect, by
purchase, merger, consolidation, or otherwise) to all or substantially all of
the business or assets of the Company and (b) the parent entity owning or
controlling such successor expressly to assume and agree to perform under the
terms of this Agreement in the same manner and to the same extent that the
Company and its affiliates would be required to perform it if no such succession
had taken place (provided that such a requirement to perform which arises by
operation of law shall be deemed to satisfy the requirements for such an express
assumption and agreement). Except as provided herein, the Executive's rights
hereunder shall not be assignable.
SECTION 12
TAX WITHHOLDING
The Company may withhold from any payments made under this Agreement all
federal, state or other taxes as shall be required pursuant to any law or
governmental regulation or ruling.
SECTION 13
ENTIRE UNDERSTANDING
This Agreement contains the entire understanding between the Company and
the Executive with respect to the subject matter hereof and supersedes any prior
agreement between the Company and the Executive regarding non-compete
provisions, except that this Agreement shall not affect or operate to reduce any
benefit or compensation inuring to the Executive of any kind elsewhere provided
and not expressly dealt with in this Agreement.
SECTION 14
BINDING AGREEMENT
This Agreement shall be binding upon, and shall inure to the benefit of,
the Executive and the Company and their respective permitted successors and
assigns.
SECTION 15
EMPLOYMENT STATUS
Nothing herein contained shall be deemed to create an employment agreement
between the Company and the Executive providing for the employment of the
Executive by the Company for any fixed period of time prior to a Change in
Control. Subject to the terms of any other agreement between the Company and
the Executive, if any, the Executive's employment with the Company is terminable
at will by the Company or Executive and each shall have the right to terminate
Executive's employment with the Company at any time, with or without Cause,
subject to the Company's obligation to provide any benefits required hereunder.
In the event that the Company terminates the Executive's employment for Cause
and the Executive submits such
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dispute to arbitration in accordance with Section 7, the Company shall continue
to pay to the Executive the Monthly Amount and any and all other benefits
hereunder unless and until there shall have been a final, non-appealable
arbitration award determining that such termination was for Cause.
SECTION 16
NO ATTACHMENT
Except as required by law, no right to receive payments under this
Agreement shall be subject to anticipation, commutation, alienation, sale,
assignment, encumbrance, charge, pledge or hypothecation or to execution,
attachment, levy or similar process or assignment by operation of law, and any
attempt, voluntary or involuntary, to effect any such action shall be null, void
and of no effect.
SECTION 17
NOTICES
All notices, requests, demands and other communications required or
permitted hereunder shall be given in writing and shall be deemed to have been
duly given if delivered or mailed, postage prepaid, first class as follows:
(a) to the Company:
Xxxxxxx Truck Leasing Corp.
Legal Department
One Xxxxxxx Plaza
0000 Xxxxxxx Xxxx
Xxxxxxxxxx, XX 00000
(b) to the Executive:
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or to such address as either party shall have previously specified in
writing to the other.
SECTION 18
REVOCATION AND EXECUTIVE ACKNOWLEDGMENTS
The Executive acknowledges that he has read and understands the provisions
of this Agreement. The Executive further acknowledges that he has been given an
opportunity for his legal counsel to review this Agreement (or is given the
opportunity to do so prior to the end of the revocation period hereunder) and
that the provisions of this Agreement are reasonable and that he has received a
copy of this Agreement.
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SECTION 19
NOT COMPENSATION FOR OTHER PLANS
It is understood by all parties hereto that, except as expressly provided
herein, amounts paid and benefits provided hereunder are not to be considered
compensation, earnings or wages for purpose of any employee benefit plan of the
Company or its affiliates, including, but not limited to, the SERP and the
qualified retirement plans.
SECTION 20
HEADINGS OF NO EFFECT
The section headings contained in this Agreement are included solely for
convenience of reference and shall not in any way affect the meaning or
interpretation of any of the provisions of this Agreement.
SECTION 21
APPLICABLE LAW
This Agreement and its validity, interpretation, performance, and
enforcement shall be governed by the laws of the State of Delaware.
SECTION 22
COUNTERPARTS
This Agreement may be executed in two or more counterparts, each of which
shall be an original and all of which shall be deemed to constitute one and the
same instrument.
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IN WITNESS WHEREOF, the Company through its officers duly authorized, and
the Executive both intending to be legally bound have duly executed and
delivered this Agreement, to be effective as of the Effective Date.
XXXXXXX TRUCK LEASING CORP.
Date: By: /s/ Xxxx X. Xxxxxxx, Xx.
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Xxxx X. Xxxxxxx, Xx.
President and Chief Executive
Officer
EXECUTIVE
Date: /s/ I. Xxxxx Xxxxx
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I. Xxxxx Xxxxx
President and Chief Executive
Officer of Xxxxxxx Leasing
Corporation
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