INDEMNIFICATION AGREEMENT
EXHIBIT (d)(xiii)
INDEMNIFICATION AGREEMENT dated effective as of August 9, 2007 between U.S. XPRESS
ENTERPRISES, INC., a Nevada corporation (the “Corporation”) and Xxx X. Xxxxxx (the “Director”).
WHEREAS, in accordance with Section 78.752 of the Nevada Revised Statutes, the Corporation
desires to establish an escrow account as an “other financial arrangement” to provide additional
collateral security to the Director against any Liability (as defined below) and Expense (as
defined below) arising out of his status as a director or member of a committee of the Board of
Directors of the Corporation;
(a) in connection with investigating, defending, being a witness or participating in,
or preparing to defend, be a witness or participate in, any Action (other than an Action
commenced by the Director against another party, except as provided in Section 2(b) below)
or any appeal of an Action; or
(b) in connection with any claim asserted or action brought by the Director for (i)
payment or indemnification of Liabilities or Expenses or advance payment of Expenses by the
Corporation under this Agreement, or pursuant to any other agreement, any resolution of the
Corporation’s Board of Directors, any resolution of the Corporation’s shareholders, any
provision of the Corporation’s Restated Articles of Incorporation or Restated Bylaws, or any
statute or rule of law providing for indemnification, now or hereafter in effect, relating
to any Action, or for specific performance pursuant to Section 14 hereof, and/or (ii)
recovery under any directors’ and officers’ liability insurance policy or policies
maintained by the Corporation, regardless of whether the Director is ultimately determined
to be entitled to such payment, indemnification, advance, or insurance recovery, as the case
may be.
3. Exception for Certain Conduct. The Corporation shall not be liable under this
Agreement for payment of any Liability or Expense incurred by the Director if the Director has not
met the standard of conduct for indemnification set forth in Section 78.7502 (or any statutes
cross-referenced therein) of the Nevada Revised Statutes.
Corporation shall have the burden of proof to overcome that presumption in reaching any
contrary determination. For purposes of this Agreement, “Interest” shall mean a rate per annum
equal to the “prime rate” published from time to time by SunTrust Bank in the Wall Street Journal.
9. Effect of Changes in Law or Corporate Documents. No change in the Corporation’s
Restated Articles of Incorporation or Nevada corporate law subsequent to the date first above
written shall have the effect of limiting or eliminating the indemnification available under this
Agreement as to any act omission or capacity for which this Agreement provides indemnification at
the time of such act, omission or capacity. If any change after the date of this Agreement in any
applicable law, statute or rule expands the power of the Corporation to indemnify the Director,
such change shall be within the purview of the Director’s rights and the Corporation’s obligations
under this Agreement. If any change in applicable law, statute or rule narrows the right of the
Corporation to indemnify the Director, such change, except to the extent otherwise required by law,
statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the
parties’ rights or obligations hereunder.
of the foregoing insurance a directors’ and officers’ liability insurance “tail” or “runoff”
insurance program to be in effect until the end of such six (6) year period with respect to
wrongful acts and/or omissions committed or allegedly committed at or prior to the Expiration Date
(such coverage shall have an aggregate coverage limit over the term of such policy in an amount not
less than the annual aggregate coverage limit under the Corporation’s existing directors and
officers liability policies, the retention amount provided under such policy or policies shall not
exceed the retention amount under the Corporation’s existing directors’ and officers’ liability
policies and such coverage shall, in all other respects, be comparable to such existing coverage).
11. Security. Notwithstanding anything to the contrary set forth in the Corporation’s
Restated Articles of Incorporation, the Corporation’s Restated Bylaws or this Agreement, the
Corporation shall establish within ten (10) business days from the execution of this Agreement an
Escrow Account pursuant to Section 78.752 of the Nevada Revised Statutes as an “other financial
arrangement” in order to provide collateral security for its obligations hereunder (the “Escrow
Fund”) pursuant to the form of Escrow Agreement attached hereto as Exhibit A. For a period
of six (6) years after the establishment thereof, the Corporation shall maintain for the benefit of
all of the members of its Board of Directors (on a joint rather than several basis) the Escrow Fund
with an aggregate value of no less than $250,000 by depositing cash in escrow that may be drawn
down by an escrow agent in no less than such amount. Promptly following the establishment of such
Escrow Fund, the Corporation shall provide the Director with copies of all documents relating to
the establishment, maintenance and operation of such Escrow Fund, and with such additional
information as the Director may reasonably request. The Corporation and the Director acknowledge
and agree that funds held in the Escrow Fund may only be released upon the written request of the
Director or any other director of the Corporation to pay in full the amount of any retention made
pursuant to Paragraph 14 of Federal Insurance Company Policy Number 8127-8857, Policy Period
12/1/06 – 12/1/07, Federal Insurance Policy Form 14-02-7303DFED (Ed. 11/2002) or any similar
retention contained in any replacement or successor policy; provided however, that the funds held
in the Escrow Fund may not be released on behalf of the Director if the Director, prior to such
release, shall have been adjudged by a court of competent jurisdiction, after exhaustion of all
appeals therefrom, to be liable for intentional misconduct, fraud or a knowing violation of law,
except with respect to the advancement of expenses or indemnification ordered by a court of
competent jurisdiction.
has ceased to be a director, officer, employee or agent of the Corporation and shall be
binding upon and inure to the benefit of and be enforceable by the parties hereto and their
respective successors and assigns (including any direct or indirect successor by purchase, merger,
consolidation or otherwise to all or substantially all of the business and/or assets of the
Corporation) and spouses, heirs and personal and legal representatives.
If to the Corporation, to it at:
U.S. Xpress Enterprises, Inc.
Attn: Xxxx Xxxx, General Counsel
0000 Xxxxxxx Xxxx
Attn: Xxxx Xxxx, General Counsel
0000 Xxxxxxx Xxxx
Xxxxxxxxxxx, XX 00000
Telecopy No.: 000-000-0000
Telecopy No.: 000-000-0000
or
If to the Director, to him at:
Xxx X. Xxxxxx
0000 Xxxxxx Xxxxxxxx Xxxxx
Xxxxxxxxxxx, XX 00000-0000
Telecopy No.:
0000 Xxxxxx Xxxxxxxx Xxxxx
Xxxxxxxxxxx, XX 00000-0000
Telecopy No.:
or, in either case, such other address as shall have been set forth in a notice delivered in
accordance with this Section. All such communications shall, when so telecopied or delivered by
hand, be effective when telecopied with confirmation of receipt or received by the addressee,
respectively. Any party that telecopies any communication hereunder to the other party shall, on
the same date as such telecopy is transmitted, also send, by first class mail, postage prepaid and
addressed to such party as specified above, an original copy of the communication so transmitted.
21. Choice of Law. This Agreement will be governed by and construed in accordance
with the laws of the State of Nevada applicable to contracts made and to be performed in such
state, without giving effect to the principles of conflicts of laws. IN ADDITION, EACH OF THE
PARTIES HERETO (A) CONSENTS TO SUBMIT ITSELF TO THE PERSONAL JURISDICTION OF THE FEDERAL DISTRICT
COURT FOR THE EASTERN DISTRICT OF TENNESSEE IN THE EVENT ANY DISPUTE ARISES OUT OF THIS AGREEMENT,
(B) AGREES THAT IT SHALL NOT ATTEMPT TO DENY OR DEFEAT SUCH PERSONAL JURISDICTION BY MOTION OR
OTHER REQUEST FOR LEAVE FROM ANY SUCH COURT, (C) AGREES THAT IT SHALL NOT BRING ANY ACTION RELATING
TO THIS AGREEMENT IN ANY COURT OTHER THAN THE FEDERAL DISTRICT COURT FOR THE EASTERN DISTRICT OF
TENNESSEE AND (D) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY ACTION RELATED TO OR
ARISING OUT OF THIS AGREEMENT.
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U.S. XPRESS ENTERPRISES, INC. | ||||
By: | /s/ Xxx Xxxxxx | |||
Xxx Xxxxxx, Executive Vice President of Finance | ||||
DIRECTOR | ||||
/s/ Xxx X. Xxxxxx | ||||
Xxx X. Xxxxxx |
EXHIBIT A
ESCROW AGREEMENT
ESCROW AGREEMENT