SENIOR MANAGEMENT AGREEMENT
Exhibit 10.9.3
THIS SENIOR MANAGEMENT AGREEMENT (this “Agreement”) is made as of September 12, 2007,
between IDLEAIRE TECHNOLOGIES CORPORATION, a Delaware corporation (the “Company”), and XXX
XXXXXXX (“Executive”).
The parties hereto agree as follows:
budgetary and other objectives set by the Board and agreed upon by Executive and the Company in
good faith. Executive’s Annual Base Salary and any annual bonus for any partial year will be
prorated based upon the number of days elapsed in such year. In addition, during the Employment
Period, Executive will be entitled to such other benefits as are from time to time made available
to all of the Company’s senior executives, including paid vacation, holidays, and sick leave,
tuition reimbursement, reimbursement of business expenses and healthcare, disability and life
insurance benefits as well as profit sharing and other benefit plans in accordance with the
Company’s policies. However, nothing herein shall be construed as limiting the Company’s right to
alter, amend or terminate any employee benefit plan it currently has in effect.
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Executive died and shall be payable to the Executive’s designated beneficiary or his estate if no
individual(s) has been so designated. If the Employment Period is terminated due to Disability,
then the Annual Base Salary, medical insurance and disability insurance will be continued until the
last day of the one (1) year period following the onset of such Disability; provided, however, that
such Annual Base Salary shall be reduced by the amount of any disability income payments made to
the Executive during such one (1) year period from any insurance or other policies paid for by the
Company.
(a) If there is a “change in control” of the Company, Executive will be deemed terminated and
will receive the following lump sum cash payment and a lien of the Severance Payment:
(i) If immediately before the “change in control” new stock of the Company was not readily
tradeable on an established securities market or otherwise, and the shareholder approval required
under IRC § 280(G) was obtained with respect to such payment, then Executive shall receive One
Million Dollars ($1,000,000.00).
(ii) If the requirements of 2(a)(i) above are not met, Executive shall receive two hundred
ninety-nine percent (299%) of his “base amount” as defined in IRC § 280(G)(d)(1)(2).
The payment to be made pursuant to Section 2(a) above shall be made within ninety (90) days of
the change in control.
(b) For purposes of this Agreement, the term “change in control” is defined to include:
(i) A tender offer or exchange offer made and consummated for ownership of Company stock
representing fifty percent (50%) or more of the combined voting power of the Company’s outstanding
securities;
(ii) Sale or transfer of substantially all of the Company’s assets to another corporation
which is not a wholly owned subsidiary of the Company;
(iii) Any transaction relating to the Company which must be described in accordance with item
5(f) of Schedule 14(A) of Regulation 14(A) of the Securities and Exchange Commission;
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(iv) Any merger or consolidation of the Company with another corporation where less than fifty
percent (50%) of the outstanding voting shares of the surviving resulting corporation are owned in
the aggregate by the Company’s former stockholders; or
(v) Any tender offer, exchange offer, merger, sale of assets and/or contested election which
results in a total change in the composition of the Board.
(c) The amounts paid to Executive pursuant to this paragraph will be deemed severance pay in
consideration of Executive’s past services to the Company and his continued services from the date
of this Agreement.
(a) Executive acknowledges that the Company is engaged in the business of providing heating,
cooling and ventilation services for vehicles and providing related convenience services (the
“Business”). Executive further acknowledges that the Business and its continued success
depend upon the use and protection of a large body of confidential and proprietary information, and
that he holds a position of trust and confidence by virtue of which he necessarily possesses, has
access to and, as a consequence of his signing this Agreement, will continue to possess and have
access to, highly valuable, confidential and proprietary information of the Company and its
subsidiaries not known to the public in general, and that it would be improper for him to make use
of this information for the benefit of himself and others. All of such confidential and
proprietary information now existing or to be developed in the future will be referred to in this
Agreement as “Confidential Information.” This includes, without specific limitation,
information relating to the Company’s marketing, products, internal management, the nature and
operation of the Business, the persons, firms and corporations which are customers or active
prospects of the Company during Executive’s employment by the Company, the Company’s methodology
and methods of doing business, strategic, acquisition, marketing and expansion plans, including
plans regarding planned and potential acquisitions and sales, financial and business plans,
employee lists, numbers and location of sales representatives, new and existing programs and
services (and those under development), prices and terms, fee structures, customer service, costs
of providing service, support and equipment and equipment maintenance costs. Confidential
Information shall not include any information that has become generally known to and available for
use by the public other than as a result of Executive’s acts or omissions.
(b) Disclosure of any Confidential Information of the Company shall not be prohibited if such
disclosure is required in the course of his employment or is
directly pursuant to a valid and existing order of a court or other governmental
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body or agency
within the United States; provided, however, that (i) Executive shall first have given prompt
written notice to the Company of any such possible or prospective order (or proceeding pursuant to
which any such order may result) and (ii) Executive shall afford the Company a reasonable
opportunity to prevent or limit any such disclosure, all at Company’s expense.
(c) Subject to Section 3(b), during the Employment Period and at all times thereafter,
Executive will not disclose to any unauthorized person or use for his own account any Confidential
Information without the Board’s written consent. Executive agrees to deliver to the Company at a
Separation as described in Section 1(e), or at any other time the Company may request in
writing, all memoranda, notes, plans, records, emails, reports and other documents (and copies
thereof) containing or otherwise relating to any of the Confidential Information (including,
without limitation, all acquisition prospects, lists and contact information) which he may then
possess or have under his control. Executive acknowledges that all such memoranda, notes, plans,
records, reports and other documents are and at all times will be and remain the property of the
Company.
(d) Executive agrees that all files, papers, records, documents, equipment and similar items
relating to the Business and all Confidential Information, whether prepared, compiled by, or
furnished to Executive in connection with Executive’s duties is the Company’s exclusive property
and shall not be copied or removed from the Company’s premises except in furtherance of the
Company’s business and all copies thereof shall be returned to the Company at its request or upon
termination of Executive’s employment. Executive further agrees that at the termination of his
employment, regardless of the reason for such termination, he shall promptly deliver to the Company
all computers, laptops, credit cards, telephones, PDAs, office equipment, software, discs, computer
tapes and documents regarding or relating to Executive’s employment with the Company.
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provides
services, which are competitive with the products or services, or planned products or services, of
the Company.
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unreasonably impose limitations on
Executive’s ability to earn a living. In addition, Executive agrees and acknowledges that the
potential harm to the Company of its non-enforcement outweighs any harm to the Executive of its
enforcement by injunction or otherwise. Executive acknowledges that he has carefully read this
Agreement and has given careful consideration to the restraints imposed upon the Executive by this
Agreement, and is in full accord as to their necessity for the reasonable and proper protection of
the Confidential Information. Executive expressly acknowledges and agrees that each and every
restraint imposed by this Agreement is reasonable with respect to subject matter, time period and
geographical area.
“Cause” means (i) the conviction of, or plea of nolo contendere to, a felony or a
crime involving moral turpitude or the intentional commission of any other act or omission
involving dishonesty or fraud with respect to the Company or any of their customers or suppliers,
(ii) substantial and repeated failure to perform duties of the office as agreed upon by the Company
and Executive held by Executive as reasonably directed by the Board not cured within ten (10)
business days after written notice thereof, (iii) gross negligence or willful misconduct with
respect to the Company which inaction or conduct has a material adverse effect on the Business,
operations or condition (financial or otherwise) of the Company; or (iv) any intentional material
breach of Section 3 or 4 of this Agreement by Executive not cured within ten (10) business days
after written notice thereof from the Company. Any election by the Company not to renew the
Employment Period on the third anniversary of the date hereof or any renewal thereof shall be
deemed to be a termination by the Board without Cause. The failure of the Company or the Executive
to achieve budgetary or other operational objectives established by the Board shall not in any way
constitute Cause.
“Disability” means a physical or mental condition such that the Executive is or will
be unable to perform the essential functions of his previously assigned duties for a continuous
period of at least six (6) where such incapacity has been determined to exist by either: (i) the
Company’s disability insurance carrier or (ii) by the Board in good faith based upon competent
medical advice.
“Good Reason” means (i) the assignment to the Executive of any duties inconsistent in
any material respect with the Executive’s position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated by this Agreement; (ii) any
change in the location of the performance of the duties such that the Executive is required to
travel or commute a
substantially greater distance than he does prior to the change; (iii) establishment of an Annual
Base Salary for the Executive which is less than provided for in this Agreement, or failure to pay
same other than an isolated, inadvertent or
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insubstantial failure, not occurring in bad faith; and
(iv) any purported termination of Executive’s employment by the Company, other than as specifically
set forth herein.
“Person” means an individual, a partnership, a limited liability company, a
corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization and a governmental entity or any department, agency or political subdivision thereof.
If to the Company:
IdleAire Technologies Corporation
000 X. Xxxxx Xxxxx Xx., Xxxxx 000
Xxxxxxxxx, XX 00000
Attention: Xxxxx X. Xxxxx, General Counsel
000 X. Xxxxx Xxxxx Xx., Xxxxx 000
Xxxxxxxxx, XX 00000
Attention: Xxxxx X. Xxxxx, General Counsel
If to the Executive:
Xxx Xxxxxxx
0000 Xxxxx Xxxxxx Xxxx
Xxxxxx Xxxx, XX 00000
0000 Xxxxx Xxxxxx Xxxx
Xxxxxx Xxxx, XX 00000
or such other address or to the attention of such other person as the recipient party shall have
specified by prior written notice to the sending party. Any notice under this Agreement will be
deemed to have been given when so delivered or sent or, if mailed, five days after deposit in the
U.S. mail.
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(e) Choice of Law. All questions concerning the construction, validity and
interpretation of this Agreement and the exhibits hereto will be governed by and construed in
accordance with the internal laws of the State of Tennessee, without giving effect to any choice of
law or conflict of law provision or rule that would cause the application of the laws of any
jurisdiction other than the State of Tennessee.
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* * * * *
IN WITNESS WHEREOF, the parties hereto have executed this Senior Management Agreement on the
date first written above.
IDLEAIRE TECHNOLOGIES CORPORATION | ||||
By: | /s/ Xxxxxxx X. Xxxxxxxx | |||
Name: | Xxxxxxx X. Xxxxxxxx | |||
Title: | Chief Executive Officer | |||
/s/ Xxx Xxxxxxx | ||||
Xxx Xxxxxxx |
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