**Exhibit 10.13****SEVERANCE AGREEMENT AND FULL RELEASE**     This Severance Agreement and Full Release (“Agreement”) is made and entered into this 30th dayof April 2007 (“Execution Date”) by and between Hugh E. Sawyer (“Executive”) and Allied Holdings,Inc., a Georgia corporation (“Company”).     WHEREAS, Executive has been employed by Company as its President and Chief Executive Officerunder the terms of a written employment agreement dated June 4, 2001, as amended (“Executive’sEmployment Agreement”), and     WHEREAS, Company and certain of its affiliates (collectively “Allied”) are presently inbankruptcy proceedings in the United States Bankruptcy Court for the Northern District of Georgia,and     WHEREAS, A Plan of Reorganization (the “Plan”) proposed by Allied, Yucaipa American AllianceFund I, LP and Yucaipa American Alliance (Parallel) Fund I, LP, and by Teamsters NationalAutomobile Transportation Industry Negotiating Committee is proceeding to confirmation, and     WHEREAS, the Plan is conditioned upon Company’s terminating Executive’s employment on orbefore the date when the Plan of Reorganization becomes effective (“Emergence Date”), and     WHEREAS, consistent with the Plan’s requirements, the Company has decided as of the ExecutionDate to terminate Executive’s employment without good cause and without executive’s consent, butdesires to retain the services of Executive for some period of time thereafter, but in no eventafter the Emergence Date, and     WHEREAS, Executive has agreed to accept the severance benefit provided for in the AlliedHoldings, Inc. Amended Severance Pay and Retention and Emergence Bonus Plan for Key Employees datedas of August 1, 2005 (the “KERP”), in lieu of any other severance benefits to which he mightotherwise be entitled under the Executive’s Employment Agreement or otherwise;     NOW, THEREFORE, for and in consideration of the mutual promises and agreements hereinafter setforth, and other good and valuable consideration, the receipt and sufficiency of which are herebyacknowledged, the parties mutually agree as follows:**1.****Termination of Employment**     The Company hereby terminates Executive’s employment without Cause (as defined in the KERP)and without Executive’s consent. Such termination shall become effective (“Effective Date”) as ofthe Emergence Date or on such earlier date after June 1, 2007 as Company determines, in its solediscretion, is in the best interests of Company. The parties
 

 
agree that Executive’s Employment Agreement is hereby cancelled and of no further effect as ofthe Execution Date. Following the Execution Date, Executive shall be employed at will and nothingcontained herein shall create any contract of employment for a definite term.**2.****No Admission by Company**     Company and Executive agree that the entry of the parties into this Agreement is not and shallnot be construed to be an admission of liability or wrongdoing on the part of Company.**3.****Continuation of Compensation and Benefits**     Company agrees to compensate Executive for services rendered after the Execution Date untilthe Effective Date (“Transitional Period”) at the semi-monthly rate of $29,166.67, subject toordinary and lawful deductions. During the Transitional Period, Company further agrees to provideExecutive with insurance coverage, other benefits of employment, and business expense reimbursementto the same extent as Executive enjoyed prior to the Execution Date.**4.****Future Cooperation**     Executive agrees that Executive will make himself reasonably available after the EffectiveDate upon reasonable notice by Company or its designated representatives for the purposes of: (1)Providing information regarding the projects, files and/or customers with whom Executive worked forthe purpose of transitioning such projects, files and/or customers to other Company executives asthe result of Executive’s termination; (2) Providing information and/or testimony regarding anyother matter, file, project and or customers with whom Executive was involved while employed byCompany; provided however that Company shall advance to Executive all costs and expenses that areassociated with Executive making himself available pursuant to this Section 4. Executive agrees toprovide future cooperation pursuant to this Section 4 without compensation so long as Executive isnot called upon by the Company to spend more than two hours during the first week following theEffective Date. If the Company desires to call upon Executive to spend time in excess of these twohours for services other than testimony, Executive agrees to make himself reasonably available uponreasonable notice in return for compensation to Executive at the rate of $347.00 per hour for anadditional period, not to exceed eight additional hours. If the Company desires to call uponExecutive to spend time in excess of these limits for services other than testimony, the Companyagrees that the Executive will not be required to spend such excess time unless the Executive andthe Company are able to reach a further agreement concerning such services (including thescheduling of such services and the compensation to be paid to Executive for such services) uponterms that are mutually agreeable to Executive and the Company.     Executive agrees that notwithstanding Executive’s termination on the Effective Date, Executivewill thereafter make himself reasonably available upon reasonable notice by Company or itsdesignated representatives without compensation for the purpose of testimony.
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**5.****Severance Payment to Executive**     So long as Executive does not elect to revoke this Agreement within the seven-day periodfollowing the Execution Date as provided in Section 19, Company shall, as required by the KERP, payExecutive a lump sum of one million fifty thousand dollars ($1,050,000), subject to ordinary andlawful deductions by wire transfer on the eighth day after the Execution Date. Executiveacknowledges that this is consideration to which Executive would not otherwise be entitled absentexecution of this Agreement.**6.****Retirement and COBRA Rights**     Nothing in this Agreement shall: a. alter or reduce any vested, accrued benefits (if any) to which Executive may beentitled under any retirement or 401(k) plan established by Company.  b. affect Executive’s right to elect and pay for continuation of Executive’shealth insurance coverage under the Company’s health benefit plan after the EffectiveDate pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”).**7.****Executive’s Full Release of All Claims Against Company**     In consideration for the undertakings and promises of Company set forth in this Agreement andexcept for the obligations of the Company hereunder, Executive unconditionally releases,discharges, and holds harmless Company, its corporate affiliates, successors and assigns, and theirrespective officers, directors, shareholders, employees, agents, insurers and attorneys asindividuals (collectively referred to as “Releasees”), from each and every claim, cause of action,right, liability or demand of any kind and nature, and from any claims which may be derivedtherefrom (collectively referred to as “Released Claims”), that Executive had, has, or might claimto have against Releasees on or before the date that Executive executes this Agreement, includingbut not limited to any and all claims:     a. related to or arising out of Executive’s Employment Agreement, pay, bonuses, vacation orany other employee benefits, and other terms and conditions of employment or employment practicesof Company;     b. related to or arising out of the termination of Executive’s employment with Company or thesurrounding circumstances thereof;     c. based on discrimination or harassment on the basis of race, color, religion, sex, nationalorigin, handicap, disability, age or any other category protected by law under Title VII of theCivil Rights Act of 1964, the Civil Rights Act of 1991, Executive Order 11246, the AgeDiscrimination in Employment Act, the Older Workers Benefits Protection Act, the Equal Pay Act, theAmericans With Disabilities Act, the Equal Pay Act, the Americans With Disabilities Act, theRehabilitation Act of 1973, the Consolidated Omnibus Budget Reconciliation Act of
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1985, (as any of these laws may have been amended) or any other similar labor, employment oranti-discrimination law under state, federal or local law;     d. based on any contract, tort, whistleblower, personal injury wrongful discharge theory orother common law theory.**8.****Executive’s Covenant Not to Sue or Accept Recovery**     Executive covenants not to sue Company or any Releasee on account of any Released Claims, orto incite, assist or encourage others to bring claims of any sort against Company. Executivefurther covenants not to accept, recover or receive any monetary damages or any other form ofrelief which may arise out of or in connection with any administrative remedies which may be filedwith or pursued independently by any governmental agency or agencies, whether federal, state orlocal.**9.****No Reinstatement**     Executive hereby acknowledges and agrees that Executive will not seek reinstatement,reemployment or employment with Company following the Effective Date.**10.****Confidentiality of Agreement**     Except as otherwise expressly provided in this paragraph, and except to the extent thatCompany has been required by law to publicly disclose the terms of this Agreement, Executive agreesthat the terms, amount of consideration and conditions of this Agreement are and shall be deemed tobe confidential and hereafter shall not be disclosed by Executive to any other person or entity.The only exceptions are: (a) as may be required by law or in any action for breach of thisAgreement by Company; (b) Executive may disclose the terms and conditions of this Agreement toExecutive’s attorneys and tax advisers; and (c) Executive may disclose the terms and conditions ofthis Agreement to Executive’s spouse (if any); provided, however, that Executive makes theforegoing persons aware of the confidentiality provisions of this paragraph and Executive will beresponsible for any breaches of this confidentiality agreement by his spouse, attorneys or taxadvisers to the same extent as if Executive had directly breached this agreement.**11.****No Harassing Conduct**     Executive further agrees and promises that Executive will not induce or incite claims ofdiscrimination, wrongful discharge, breach of contract, tortious acts, or any other claims againstCompany or Releasees by any other person or entity, that Executive shall not undertake anyharassing or disparaging conduct directed at any of the parties, and that Executive shall refrainfrom making any negative or derogatory statements concerning Company at any time in the future.Provided, however, this provision may not be used to restrict the exercise of Executive’s rightsunder local, state or federal law or in connection with any claim for breach of this Agreement byCompany.
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**12.****Post-Employment Restrictions**     a. **Definitions**. For purposes of this Agreement, the following terms shall have thefollowing respective meanings: i. “Business of the Company” means “ transportingfinished automobiles and light trucks in North America and related logistics,brokerage and distribution services to the new and used vehicle distributionmarket and other segments of the automotive industry in North America.  ii. “Confidential Information” means information aboutCompany and its employees, customers and/or vendors which is not generallyknown outside of Company nor publicly available, which Executive learns of inconnection with Executive’s employment with Company, and which would be usefulto competitors of Company or otherwise damaging to the Company if disclosed.Confidential Information may include, but is not necessarily limited to,business and employment policies, employee compensation, marketing methods andthe targets of those methods, finances, business plans, promotional materialsand pricing information. Confidential Information does not include anyinformation (i) which was in the public domain at the time of disclosure byCompany to Executive; (ii) which was publicized or otherwise became part of thepublic domain after the time of disclosure by Company to Executive other thanby reason of the fault of Executive; (iii) which was in Executive’s possessionat the time of disclosure by Company and was not acquired, directly orindirectly, from Company or from any third party under any obligation ofconfidence to Company; or (iv) which Executive received after the time ofdisclosure by Company from a third party who did not require Executive to holdit in confidence and who did not acquire it, directly or indirectly, fromCompany under any obligation of confidence.  iii. “Material Contact” means contact in person, by writtenor electronic correspondence or by telephone in furtherance of the Business ofCompany, or imputed contact through employees supervised by Executive who havecontact in person, by written or electronic correspondence, or by telephone infurtherance of the Business of Company.  iv. “Restricted Period” means the one-year period followingthe Effective Date.  v. “Trade Secrets” means Confidential Information whichmeets the additional requirements of the Georgia Trade Secrets Act.     b. **Confidentiality****.**Executive agrees that for a period of three (3) years followingthe Effective Date, he will not, directly or indirectly, use, copy, disclose, distribute orotherwise make use of any Confidential Information of Company other than in the furtherance ofExecutive’s duties for Company. Executive further agrees that if Executive is questioned about
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information subject to this agreement by anyone not authorized to receive such information,Executive will promptly notify Executive supervisor(s) or an officer of Company. Nothing containedherein shall limit Company’s rights under statutory or common law, which may provide for longerrestrictions on use or disclosure.     c. **Non-Solicitation of Customers and Vendors****.**Executive agrees that during theRestricted Period, he will not directly or indirectly solicit or attempt to solicit any business incompetition with the Business of Company from any of Company’s customers (including any activelysought prospective customers) with whom Executive had Material Contact during Executive’semployment with Company. Executive further agrees that during the Restricted Period, he will notdirectly or indirectly solicit or attempt to solicit the purchase of any products or services insupport of any business in competition with the Business of Company from any of Company’s vendors(including any actively sought prospective vendors) with whom Executive had Material Contact duringExecutive’s employment with Company.     d. **Non-Recruitment of Employees****.**Executive agrees that during the Restricted Period,Executive will not directly or indirectly solicit or attempt to solicit any employee of Companywith whom Executive had Material Contact during Executive’s employment with Company, to terminateor resign such employee’s employment with Company.     e. **Return of Property and Information****.**Executive agrees not to remove any Companyproperty or information from the Company’s premises, except when authorized by the Company.Executive agrees to return all of the Company’s property and information (irrespective of itsconfidential nature) within seven (7) days following the Effective Date. Such property includes,but is not limited to, the original and any copy (regardless of the manner in which it is recorded)of all information provided by the Company to Executive or which Executive has developed orcollected in the scope of Executive’s employment, as well as all Company-issued equipment,supplies, accessories, vehicles, keys, instruments, tools, devices, computers, cell phones, pagers,materials, documents, plans, records, notebooks, drawings, or papers. Upon request by Company,Executive shall certify in writing that all copies of information subject to this agreement locatedon Executive’s computers or other electronic storage devices have been permanently deleted.Provided, however, Executive may retain copies of documents relating to the Company’s employeebenefit plans applicable to Executive and income records to the extent necessary for Executive toprepare Executive’s individual tax returns.     f. **Acknowledgments****.**Executive hereby acknowledges and agrees that the covenantscontained in subsections 12(b),(c),(d)&(e) (the “Protective Covenants”) are reasonable as to time,scope and territory given Company’s need to protect its business, personnel, Trade Secrets andConfidential Information and given Executive’s position as CEO of Company. Executive acknowledgesand represents that Executive has substantial experience and knowledge such that Executive canobtain subsequent employment which does not violate this Agreement.     g. **Specific Performance****.**Executive acknowledges and agrees that any breach of any ofthe Protective Covenants by him will cause irreparable damage to Company, the exact
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amount of which will be difficult to determine, and that the remedies at law for any suchbreach will be inadequate. Accordingly, Executive agrees that, in addition to any other remedythat may be available at law, in equity, or hereunder, Company shall be entitled to specificperformance and injunctive relief, without posting bond or other security to enforce or prevent anyviolation of any of the Protective Covenants by Executive.**13.****Construction of Agreement**     The Protective Covenants shall be presumed to be enforceable, and any reading causingunenforceability shall yield to a construction permitting enforcement. In the event a court shoulddetermine not to enforce a Protective Covenant or other provision of this Agreement as written dueto overbreadth, illegality, violation of public policy or any other reason, the partiesspecifically authorize such reviewing court to enforce said Protective Covenant or other provisionto the maximum extent possible, whether said revisions be in time, territory, scope of prohibitedactivities, or in other respects. If such Protective Covenant or other, provision, word, clause orphrase in this Agreement cannot be judicially modified, it shall be severed and the remainingProtective Covenants and other provisions of this Agreement shall be enforced in accordance withthe tenor of the Agreement. This Agreement shall be deemed to have been jointly drafted by theparties, and shall not be construed against any party.**14.****Remedies and Forum**     The parties agree that they will not file any action arising out of or relating to thisAgreement in any way whatsoever other than in the United States District Court for the NorthernDistrict of Georgia or the State or Superior Courts of DeKalb County, Georgia. The parties consentto personal jurisdiction and venue solely within these forums and waive all otherwise possibleobjections thereto. The prevailing party shall be entitled to recover its costs and attorney’sfees in any such proceeding. The existence of any claim or cause of action by Executive againstCompany, including any dispute relating to This agreement, shall not constitute a defense toenforcement of the Protective Covenants by injunction. Any disputes regarding the enforceability,interpretation, performance, breach and rights of the parties under this agreement shall bedetermined by the laws of the State of Georgia, without regard to its conflicts of law principles.**15.****No Reliance Upon Other Statements or Agreements**     This Agreement is entered into without reliance upon any statement or representation of anyparty hereto or parties hereby released other than the statements and representations contained inwriting in this Agreement. The parties acknowledge that this Agreement contains the entireunderstanding of the parties with respect to the termination of Executive’s employment withCompany, and that it may not be modified other than in a writing signed by Executive and anauthorized representative of Company.
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**16.****Assignment**     Executive consents to the assignment of this agreement by Company (provided that Companyguarantees to Executive the prompt performance of all obligations of Company hereunder) and agreesthat it shall inure to the benefit of Company’s successors in interest. Executive’s duties underthis Agreement shall not be delegated to others, but this Agreement shall otherwise remain bindingon Executive’s heirs and successors in interest.**17.****No Waiver**     Any failure by any party to enforce any of their rights and privileges under this Agreementshall not be deemed to constitute waiver of any rights and privileges contained herein.**18.****Full and Knowing Release**     By signing this Agreement, Executive certifies that:     a. Executive has carefully read and fully understands the provisions of this Agreement;     b. Executive was advised by Company in writing, via this Agreement, to consult with anattorney before signing this Agreement;     c. Executive understands that Company will allow him a minimum period of 21 days in which toconsider whether he wishes to sign this release, should he so desire; and     d. Executive agrees to its terms knowingly, voluntarily and without intimidation, coercion orpressure.**19.****Revocation of Agreement**     Executive may revoke this Agreement within seven (7) calendar days after signing it. To beeffective, such revocation must be transmitted in writing to Thomas M. Duffy, Executive VicePresident and General Counsel, at the offices of Allied Holdings, Inc., at 160 Clairemont Ave.,Suite 200, Decatur, Georgia 30030. Revocation can be made by hand delivery, telegram, facsimile,or postmarking before the expiration of this seven (7) days period.
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     IN WITNESS WHEREOF the undersigned hereunto set their hands to this Agreement on the dateswritten below.     Executed this                day of                                      , 2007.         **Hugh E. Sawyer**   **Allied Holdings, Inc.**                       By: Robert J. Rutland, Chairman and        Chief Executive Officer  
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