Document:

Exhibit 10.1

 

NitroMed,
Inc.

 

Restricted
Stock Agreement

 

	
  Name of Recipient:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Number of shares of restricted common stock awarded:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Grant Date:

  	
   

  	
   

  

 

NitroMed, Inc.
(the “Company”) has selected you to receive the restricted stock award
described above, which is subject to the provisions of the Company’s Amended
and Restated 2003 Stock Incentive Plan (the “Plan”) and the terms and
conditions contained in this Restricted Stock Agreement.  Please confirm your acceptance of this
restricted stock award and of the terms and conditions of this Agreement by
signing a copy of this Agreement where indicated below.

 

	
  

  	
   

  	
  NitroMed, Inc.

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  [insert name and title]

  	 

	
  Accepted and Agreed:

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  [insert name of recipient]

  	
   

  	
   

  	 

								

 

 

 

NitroMed, Inc.

 

Restricted Stock
Agreement

The terms and conditions of the award of shares of
restricted common stock of the Company (the “Restricted Shares”) made to the
Recipient, as set forth on the cover page of this Agreement, are as follows:

1.             Issuance of Restricted Shares.

(a)           The Restricted
Shares are issued to the Recipient, effective as of the Grant Date (as set
forth on the cover page of this Agreement), in consideration of employment
services rendered and to be rendered by the Recipient to the Company.

(b)           As promptly as
practicable following the Grant Date, the Company shall issue one or more
certificates in the name of the Recipient for the Restricted Shares.  Such certificate(s) shall initially be held
on behalf of the Recipient by the Secretary  of the Company. 
Following the vesting of any Restricted Shares pursuant to Section 2
below, the Secretary shall, if requested by the Recipient, deliver to the
Recipient a certificate representing the vested Restricted Shares.  The Recipient agrees that the Restricted
Shares shall be subject to the forfeiture provisions set forth in
Section 3 of this Agreement and the restrictions on transfer set forth in
Section 4 of this Agreement.

2.             Vesting.

(a)           Vesting Schedule.  Unless otherwise provided in this Agreement
or the Plan, the Restricted Shares shall vest in accordance with the following
vesting schedule:  [_______________]. 
Any fractional number of Restricted Shares resulting from the
application of the foregoing percentages shall be rounded down to the nearest
whole number of Restricted Shares.

(b)           Acceleration of
Vesting.  Notwithstanding the
foregoing vesting schedule, all unvested Restricted Shares  shall vest effective immediately prior to (i) a Change in
Control Event (as defined below) or (ii) upon termination of employment without
Cause (as defined below) of the Recipient.

(c)           Definitions.

(i)            A
“Change in Control” shall mean:

(A)                              the
acquisition by an individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”))
(a “Person”) of beneficial ownership of any capital stock of the Company if,
after such acquisition, such Person beneficially owns (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) 50% or more of

 

either
(x) the then-outstanding shares of common stock of the Company (the “Outstanding
Company Common Stock”) or (y) the combined voting power of the then-outstanding
securities of the Company entitled to vote generally in the election of
directors (the “Outstanding Company Voting Securities”); provided, however,
that for purposes of this subsection (i), the following acquisitions shall not
constitute a Change in Control: (A) any acquisition directly from the Company
(excluding an acquisition pursuant to the exercise, conversion or exchange of
any security exercisable for, convertible into or exchangeable for common stock
or voting securities of the Company, unless the Person exercising, converting
or exchanging such security acquired such security directly from the Company or
an underwriter or agent of the Company), or (B) any acquisition by any
corporation pursuant to a Business Combination (as defined below) which complies
with clauses (x) and (y) of subsection (C) of this definition; or

 

(B)                                such
time as the Continuing Directors (as defined below) do not constitute a
majority of the Board (or, if applicable, the Board of Directors of a successor
corporation to the Company), where the term “Continuing Director” means at any
date a member of the Board (x) who was a member of the Board on the effective
date of this Agreement by the Board or (y) who was nominated or elected
subsequent to such date by at least a majority of the directors who were
Continuing Directors at the time of such nomination or election or whose
election to the Board was recommended or endorsed by at least a majority of the
directors who were Continuing Directors at the time of such nomination or election;
provided, however, that there shall be excluded from this clause (y) any
individual whose initial assumption of office occurred as a result of an actual
or threatened election contest with respect to the election or removal of
directors or other actual or threatened solicitation of proxies or consents, by
or on behalf of a person other than the Board; or

(C)                                the
consummation of a merger, consolidation, reorganization, recapitalization or
share exchange involving the Company or a sale or other disposition of all or
substantially all of the assets of the Company (a “Business Combination”),
unless, immediately following such Business Combination, each of the following
two conditions is satisfied: (x) all or substantially all of the

 

individuals
and entities who were the beneficial owners of the Outstanding Company Common
Stock and Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 50% of
the then-outstanding shares of common stock and the combined voting power of
the then-outstanding securities entitled to vote generally in the election of
directors, respectively, of the resulting or acquiring corporation in such
Business Combination (which shall include, without limitation, a corporation
which as a result of such transaction owns the Company or substantially all of
the Company’s assets either directly or through one or more subsidiaries) (such
resulting or acquiring corporation is referred to herein as the “Acquiring
Corporation”) in substantially the same proportions as their ownership of the
Outstanding Company Common Stock and Outstanding Company Voting Securities,
respectively, immediately prior to such Business Combination and (y) no Person
(excluding any employee benefit plan (or related trust) maintained or sponsored
by the Company or by the Acquiring Corporation) beneficially owns, directly or
indirectly, 50% or more of the then-outstanding shares of common stock of the
Acquiring Corporation, or of the combined voting power of the then-outstanding
securities of such corporation entitled to vote generally in the election of
directors (except to the extent that such ownership existed prior to the
Business Combination); or

 

(D)                               the
liquidation or dissolution of the Company.

(ii)           “Cause” is determined by the Company
in its sole discretion, and can include, but is not limited to, (i) any act or
omission by the employee that may have an adverse effect on the Company’s
business or on the employee’s ability to perform services for the Company,
including, without limitation, the commission of any crime (other than ordinary
traffic violations); or (ii) any misconduct or neglect of duties by the
employee in connection with the business or affairs of the Company, including,
but not limited to, misappropriation of Company assets, or failure to perform
reasonable assigned duties.

3.             Forfeiture of Unvested Restricted Shares Upon
Employment Termination.

In the event that the Recipient ceases to be employed
by the Company for any reason or no reason, except as provided in Section 2(b)
above, all of the Restricted Shares that are unvested as of the time of such
employment termination shall be forfeited immediately and automatically to the
Company, without the payment of any consideration to the Recipient, effective
as of such

 

termination of employment.  The
Recipient hereby authorizes the Company to take any actions necessary or
appropriate to cancel any certificate(s) representing forfeited Restricted
Shares and transfer ownership of such forfeited Restricted Shares to the
Company; and if the Company or its transfer agent requires an executed stock
power or similar confirmatory instrument in connection with such cancellation
and transfer, the Recipient shall promptly execute and deliver the same to the
Company.   The Recipient shall have no further rights
with respect to any Restricted Shares that are so forfeited.  If the Recipient is employed by a subsidiary
of the Company, any references in this Agreement to employment with the Company
shall instead be deemed to refer to employment with such subsidiary.

 

4.             Restrictions on Transfer.

The Recipient shall not sell, assign, transfer,
pledge, hypothecate or otherwise dispose of, by operation of law or otherwise
(collectively “transfer”) any Restricted Shares, or any interest therein, until
such Restricted Shares have vested, except that the Recipient may transfer such
Restricted Shares: (a) to or for the benefit of any spouse, children, parents,
uncles, aunts, siblings, grandchildren and any other relatives approved by the
Board of Directors of the Company (collectively, “Approved Relatives”) or to a
trust established solely for the benefit of the Recipient and/or Approved
Relatives, provided that such Restricted Shares shall remain subject to
this Agreement (including without limitation the forfeiture provisions set
forth in Section 3 and the restrictions on transfer set forth in this Section
4) and such permitted transferee shall, as a condition to such transfer,
deliver to the Company a written instrument confirming that such transferee
shall be bound by all of the terms and conditions of this Agreement; or (b) as
part of the sale of all or substantially all of the shares of capital stock of
the Company (including pursuant to a merger or consolidation).  The Company shall not be required (i) to
transfer on its books any of the Restricted Shares which have been transferred
in violation of any of the provisions of this Agreement or (ii) to treat as
owner of such Restricted Shares or to pay dividends to any transferee to whom
such Restricted Shares have been transferred in violation of any of the
provisions of this Agreement.

5.             Restrictive Legends.

All certificates representing Restricted Shares shall
have affixed thereto a legend in substantially the following form, in addition
to any other legends that may be required under applicable law:

“These shares of stock are subject to forfeiture
provisions and restrictions on transfer set forth in a certain Restricted Stock
Agreement between the corporation and the registered owner of these shares (or
his or her predecessor in interest), and such Agreement is available for
inspection without charge at the office of the Secretary of the corporation.”

6.             Rights as a Shareholder.

Except as otherwise provided in this Agreement, for so
long as the Recipient is the registered owner of the Restricted Shares, the
Recipient shall have all rights as a shareholder with respect to the Restricted
Shares, whether vested or unvested, including, without limitation,

 

any rights to receive dividends and distributions with respect to the
Restricted Shares and to vote the Restricted Shares and act in respect of the
Restricted Shares at any meeting of shareholders.

 

7.             Provisions of the Plan.

This Agreement is subject to the provisions of the
Plan, a copy of which is furnished to the Recipient with this Agreement.  As provided in the Plan, upon the occurrence
of a Reorganization Event (as defined in the Plan), the rights of the Company
hereunder (including the right to receive forfeited Restricted Shares) shall
inure to the benefit of the Company’s successor and, unless the Board
determines otherwise, shall apply to the cash, securities or other property
which the Restricted Shares were converted into or exchanged for pursuant to such
Reorganization Event in the same manner and to the same extent as they applied
to the Restricted Shares under this Agreement.

8.             Tax Matters.

(a)           Acknowledgments;
Section 83(b) Election.  The
Recipient acknowledges that he or she is responsible obtaining the advice of
the Recipient’s own tax advisors with respect to the acquisition of the
Restricted Shares and the Recipient is relying solely on such advisors and not
on any statements or representations of the Company or any of its agents with
respect to the tax consequences relating to the Restricted Shares.  The Recipient understands that the Recipient
(and not the Company) shall be responsible for the Recipient’s tax liability
that may arise in connection with the acquisition, vesting and/or disposition
of the Restricted Shares.  The Recipient
acknowledges that he or she has been informed of the availability of making an
election under Section 83(b) of the Internal Revenue Code, as amended, with
respect to the issuance of the Restricted Shares and that the Recipient has
decided not to file a Section 83(b) election.

(b)           Withholding.  The Recipient acknowledges and agrees that
the Company has the right to deduct from payments of any kind otherwise due to
the Recipient any federal, state, local or other taxes of any kind required by
law to be withheld with respect to the vesting of the Restricted Shares.  On each date on which Restricted Shares vest,
the Company shall deliver written notice to the Recipient of the amount of
withholding taxes due with respect to the vesting of the Restricted Shares that
vest on such date; provided, however, that the total tax withholding cannot
exceed the Company’s minimum statutory withholding obligations (based on
minimum statutory withholding rates for federal and state tax purposes,
including payroll taxes, that are applicable to such supplemental taxable
income).  The Recipient shall  satisfy such tax withholding obligations by transferring to
the Company, on each date on which Restricted Shares vest under this Agreement,
such number of Restricted Shares that vest on such date as have a fair market
value (calculated using the last reported sale price of the common stock of the
Company on the NASDAQ Global Market on the trading date immediately prior to
such vesting date) equal to the amount of the Company’s tax withholding
obligation in connection with the vesting of such Restricted Shares.  To effect such delivery of Restricted Shares,
the Recipient hereby authorizes the Company to take any actions necessary or
appropriate to cancel any certificate(s) representing such Restricted Shares
and transfer ownership of such Restricted Shares to the Company; and if the
Company or its transfer agent requires an executed stock power or similar

 

confirmatory
instrument in connection with such cancellation and transfer, the Recipient
shall promptly execute and deliver the same to the Company.

 

9.             Miscellaneous.

(a)           No Right to
Continued Employment.  The Recipient
acknowledges and agrees that, notwithstanding the fact that the vesting of the
Restricted Shares is contingent upon his or her continued employment by the
Company (i) this Agreement does not constitute an express or implied promise or
guarantee of continued employment or confer upon the Recipient any rights with
respect to continued or guaranteed employment by the Company and (ii) this
Agreement does not supersede the Company’s policy of at will employment.

(b)           Governing Law.  This Agreement shall be construed,
interpreted and enforced in accordance with the internal laws of the State of
Delaware without regard to any applicable conflicts of laws provisions.

(c)           Recipient’s
Acknowledgments.  The Recipient
acknowledges that he or she has read this Agreement, has received and read the
Plan, and understands the terms and conditions of this Agreement and the Plan.

 

NitroMed,
Inc.

 

Schedule of Executive Officers Party to a Form of Restricted Stock
Agreement

The executive officers of NitroMed, Inc.
named below have entered into the attached form of Restricted Stock
Agreement.  The following chart
illustrates the material differences in the terms of the form of the Restricted
Stock Agreement entered into by each such executive officer:

 

	
  Name of Executive

  	
   

  	
  Restricted Shares

  
	
  Gerald W. Bruce

  	
   

  	
  61,429

  
	
  James G. Ham, III

  	
   

  	
  54,129

  
	
  William “B.J.” Jones

  	
   

  	
  55,714

  
	
  Jane A. Kramer

  	
   

  	
  49,400

  

 

The vesting schedule with respect to the
Restricted Shares for each of the above-named executive officers is as
follows:  25% of the Restricted Shares
will vest on the date that is six months after the Grant Date; 25% of the
Restricted Shares will vest on the first anniversary of the Grant Date; and 50%
of the Restricted Shares will vest on the second anniversary of the Grant Date.Exhibit 10.1

 

DISPUTES RELATING TO
THIS AGREEMENT ARE REQUIRED TO BE SETTLED

PURSUANT TO CERTAIN DISPUTE RESOLUTION PROCEDURES AS PROVIDED

IN ARTICLE 7 AND APPENDIX A OF THIS AGREEMENT.

EMPLOYMENT AGREEMENT

This Employment
Agreement (this “Agreement”) is entered into effective as of the 20th day of March, 2007, between Steven L. Keller (“Employee”),
and Rush Administrative Services, Inc., a Delaware corporation (the “Company”),
whose principal executive offices are located in New Braunfels, Texas.

WHEREAS, the Company
desires to employ Employee, and Employee desires to be employed by the Company,
on terms hereinafter set forth;

NOW, THEREFORE, in
consideration for the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

ARTICLE 1

DUTIES

1.1           Employment.  During the term of this Agreement, the
Company agrees to employ Employee, and Employee accepts such employment, on the
terms and conditions set forth in this Agreement.

1.2           Extent of Service.  During the term of this Agreement, Employee
shall devote his or her full-time business time, energy and skill to the
affairs of the Company and its affiliated companies, and Employee shall not be
engaged in any other business or consulting activities pursued for gain, profit
or other pecuniary advantage.  The foregoing shall not prevent Employee from
making monetary investments in businesses, provided that such investments do
not involve any services on the part of Employee in the operation or affairs of
such businesses.

1.3           Duties.  Employee’s duties hereunder shall include
such duties as may be prescribed from time to time by Employee’s supervisors or
the Board of Directors of the Company (the “Board”).  Employee shall also perform, without
additional compensation, such duties for the Company’s affiliated companies.

1.4           Access
to and Use of Proprietary Information. 
Employee recognizes and the Company agrees that, to assist Employee in
the performance of his or her duties hereunder, Employee will be provided
access to and limited use of proprietary and confidential information of the
Company.  Employee further recognizes
that, as a part of his or her employment with the Company, Employee will
benefit from and Employee’s qualifications will be enhanced by additional
training, education and experience which will be provided to Employee by the
Company directly and/or as a result of work projects assigned by the Company in
which proprietary and confidential information of the Company is utilized by
Employee.

ARTICLE 2

TERM OF EMPLOYMENT

The term of this Agreement shall commence
on the date hereof and continue until terminated pursuant to Article 4 hereof.

ARTICLE 3

COMPENSATION

3.1           Monthly
Base Salary.  As compensation for
services rendered under this Agreement, Employee shall be entitled to receive
from the Company a monthly base salary (before standard deductions) equal to $150,000,
subject to periodic review and upward adjustment by the Board in its sole discretion
(downward adjustment shall not be permitted). 
Employee’s monthly base salary shall be payable at regular intervals (at
least semi-monthly) in accordance with the prevailing practice and policy of
the Company.

3.2           Discretionary
Performance Bonus.  As additional
compensation for services rendered under this Agreement, Employee shall also be
eligible to receive a discretionary performance bonus if, as and when declared
by the Board in its sole discretion.

3.3           Benefits.  Employee shall, in addition to the
compensation provided for herein, be entitled to the following additional
benefits:

(a)           Medical,
Health and Disability Benefits. 
Employee shall be entitled to receive all medical, health and disability
benefits that may, from time to time, be provided by the Company to all
employees of the Company as a group.

(b)           Other
Benefits.  Employee shall also be
entitled to receive any other benefits that may, from time to time, be provided
by the Company to all employees of Company as a group.

(c)           Vacation.  Employee shall be entitled to an annual
vacation as determined in accordance with the prevailing practice and policy of
the Company.

(d)           Holidays.  Employee shall be entitled to holidays in
accordance with the prevailing practice and policy of the Company.

(e)           Reimbursement
of Expenses.  The Company shall
reimburse Employee for all expenses reasonably incurred by Employee in
conjunction with the rendering of services at the Company’s request, provided
that such expenses are incurred in accordance with the prevailing practice and
policy of the Company and are properly deductible by the Company for federal
income tax purposes.  As a condition to
such reimbursement, Employee shall submit an itemized accounting of such
expenses in reasonable detail, including receipts where required under federal
income tax laws.

(f)            Annual
Physical.  Employee shall be entitled
to receive an annual physical, which shall be paid for by the Company on
Employee’s behalf.

ARTICLE 4

TERMINATION

4.1           Termination
With Notice.  This Agreement may be
terminated by the Company or Employee, without cause, upon 12 months’ prior
written notice thereof given by one party to the other party.  In the event of termination pursuant to this
Section 4.1, the Company shall pay Employee his or her monthly base salary
(subject to standard deductions) earned pro
rata to the date of such termination and the Company shall have no
further obligations to Employee hereunder.  
Notwithstanding the foregoing, in lieu of continuing the employment of
Employee for a period of 12 months after notice of termination is given under
this Section 4.1, the Company may, in its sole discretion, elect to terminate
this Agreement immediately and pay Employee a lump-sum equal to (a) Employee’s
monthly base salary (subject to standard deductions) for the month of
termination earned pro rata to
the date of such notification of termination, plus
(b) 12 months of Employee’s then effective base salary (subject to standard
deductions), plus (c) an amount
equal to (subject to standard deductions) a percentage of the bonus received by
Employee in connection with services rendered during the calendar year
immediately preceding the date of termination (without regard to the year in
which actual payment of such bonus is made), with such percentage being (i) 0%
if Employee has been employed by the Company on a continuous basis for less
than three years, (ii) 16.67% if the Employee has been employed by the Company
on a continuous basis for at least three years but less than four years, (iii)
33.34% if Employee has been employed by the Company on a continuous basis for
at least four years but less than five years, and (iv) 50% if Employee has been
employed by the Company on a continuous basis for five or more years.  Continuous service as described in the
previous sentence shall include all continuous service to the Company, whether
provided before or after the date of this Agreement, as determined in the sole
discretion of the Company.  In addition,
Employee shall be entitled to continue to be covered under the Company’s group
health insurance program pursuant to benefit continuation as prescribed in the
Consolidated Omnibus Budget Reconciliation Act (“COBRA”).  Such COBRA benefits shall commence on the
date of termination and the Company shall pay, on Employee’s behalf, any and
all costs associated with extending such group health benefits under COBRA for
a period of 12 months following the termination date.  Upon payment of the foregoing, the Company
shall have no further obligations to Employee hereunder.

4.2           Termination
For Cause.  This Agreement may be
terminated by the Company for “Cause” (hereinafter defined) upon written notice
thereof given by the Company to Employee. 
In the event of termination pursuant to this Section 4.2, the Company shall
pay Employee his or her monthly base salary (subject to standard deductions)
earned pro rata to the date of
such termination and the Company shall have no further obligations to Employee
hereunder.  The term “Cause” shall
include, without limitation, the following, as determined by the Board in its
sole judgment:  (i) Employee breaches any
of the terms of this Agreement; (ii) Employee is convicted of a felony; (iii)
Employee fails, after at least one warning, to perform duties assigned under
this Agreement (other than a failure due to death or physical or mental
disability); (iv) Employee intentionally engages in conduct which is
demonstrably and materially injurious to the

Company; (v) Employee commits fraud or
theft of personal or Company property from Company premises; (vi) Employee
falsifies Company documents or records; (vii) Employee engages in acts of gross
carelessness or willful negligence to endanger life or property on Company
premises; (viii) Employee uses, distributes or is under the influence of
illegal drugs, alcohol or any other intoxicant on Company premises; (ix)
Employee possesses or stores hand guns on Company premises; or (x) Employee
intentionally violates state, federal or local laws and regulations.

4.3           Termination
Upon Death or Disability.  In the
event that Employee dies, this Agreement shall terminate upon Employee’s
death.  Likewise, if Employee becomes
unable to perform the essential functions of his or her duties hereunder, with
or without reasonable accommodation, on account of illness, disability or other
reason whatsoever for a period of more than 180 consecutive or nonconsecutive
days in any 12-month period, the Company may, upon notice to Employee,
terminate this Agreement.  In the event
of termination pursuant to this Section 4.3, Employee (or his or her legal
representatives) shall be entitled only to his or her monthly base salary
earned pro rata for services
actually rendered prior to the date of such termination; provided, however, Employee shall not be
entitled to his or her monthly base salary for any period with respect to which
Employee has received short-term or long-term disability benefits under
employee benefit plans maintained from time to time by the Company.

4.4           Survival
of Provisions.  The covenants and provisions
of Articles 5, 6 and 7 hereof shall survive any termination of this Agreement
and continue for the periods indicated, regardless of how such termination may
be brought about.

ARTICLE 5

PROPRIETARY PROPERTY; CONFIDENTIAL INFORMATION

5.1           Proprietary
Property; Confidential Information. 
Employee acknowledges that in and as a result of Employee’s employment
hereunder, Employee will be making use of, acquiring and/or adding to
confidential information and proprietary property of a special and unique nature
and value relating to such matters as the Company’s trade secrets, systems,
procedures, manuals, confidential reports and lists of customers (“Confidential
Information”). As a material inducement to the Company to enter into this
Agreement and to pay to Employee the compensation and benefits stated herein,
the Employee covenants and agrees that Employee shall not, at any time during
or following the term of Employee’s employment, directly or indirectly, divulge
or disclose for any purpose whatsoever any Confidential Information or
proprietary information of the Company. 
Upon termination of this Agreement, regardless of how such termination
may be brought about, Employee shall deliver to the Company any and all documents,
instruments, notes, papers or other expressions or embodiments of confidential
information which are in Employee’s possession or control.

5.2           Publicity.  During the term of this Agreement and for a
period of ten years thereafter, Employee shall not, directly or indirectly,
originate or participate in the origination of any publicity, news release or
other public announcements, written or oral, whether to the public press or
otherwise, relating to this Agreement, to any amendment hereto, to Employee’s
employment hereunder or to the Company, without the prior written approval of
the Company.

ARTICLE 6

RESTRICTIVE COVENANTS

6.1           Non-Competition.  In consideration of the benefits of this
Agreement, including Employee’s access to and limited use of proprietary and
confidential information of the Company, as well as training, education and
experience provided to Employee by the Company directly and/or as a result of
work projects assigned by the Company with respect thereto, Employee hereby
covenants and agrees that during the term of this Agreement and for a period of
12 months following termination of this Agreement, regardless of how such
termination may be brought about, Employee shall not, directly or indirectly,
as proprietor, partner, stockholder, director, officer, employee, consultant, joint
venturer, investor or in any other capacity, engage in, or own, manage, operate
or control, or participate in the ownership, management, operation or control,
of any entity which engages in one of the Company’s major geographical or
commercial markets in the business of selling, servicing, renting, leasing,
insuring or financing new or used Class 3 through 8 trucks or any other
business activity in which the Company participates during Employee’s
employment with the Company; provided,
however, the foregoing shall not, in any event, prohibit Employee
from purchasing and holding as an investment not more than 1% of any class of
publicly traded securities of any entity which conducts a business in
competition with the business of the Company, so long as Employee does not
participate in any way in the management, operation or control of such
entity.  It is further recognized and
agreed that, even though an activity may not be restricted under the foregoing
provision, Employee shall not during the term of this Agreement and for a
period of 12 months following termination of this Agreement, regardless of how
such termination may be brought about, provide any services to any person or
entity which may be used against, or in conflict with the interests of, the Company
or its customers or clients.

6.2           Judicial
Reformation.  Employee acknowledges
that, given the nature of the Company’s business, the covenants contained in
Section 6.1 establish reasonable limitations as to time, geographic area and
scope of activity to be restrained and do not impose a greater restraint than
is reasonably necessary to protect and preserve the goodwill of the Company’s
business and to protect its legitimate business interests.  If, however, Section 6.1 is determined by any
court of competent jurisdiction to be unenforceable by reason of its extending
for too long a period of time or over too large a geographic area or by reason
of it being too extensive in any other respect or for any other reason, it will
be interpreted to extend only over the longest period of time for which it may
be enforceable and/or over the largest geographic area as to which it may be
enforceable and/or to the maximum extent in all other aspects as to which it
may be enforceable, all as determined by such court.

6.3           Customer
Lists; Non-Solicitation.  In
consideration of the benefits of this Agreement, including Employee’s access to
and limited use of proprietary and confidential information of the Company, as
well as training, education and experience provided to Employee by the Company
directly and/or as a result of work projects assigned by the Company with
respect thereto, Employee hereby further covenants and agrees that for a period
of 12 months following the termination of this Agreement, regardless of how such
termination may be brought about, Employee shall not, directly or indirectly,
(a) use or make known to any person or entity

the names or addresses of any clients or
customers of the Company or any other information pertaining to them, (b) call
on, solicit, take away or attempt to call on, solicit or take away any clients
or customers of the Company on whom Employee called or with whom he or she
became acquainted during his or her employment with the Company, nor (c)
recruit, hire or attempt to recruit or hire any employees of the Company.

ARTICLE 7

ARBITRATION

Except for the provisions of Articles 5
and 6 of this Agreement dealing with proprietary property, confidential
information and restrictive covenants, with respect to which the Company
expressly reserves the right to petition a court directly for injunctive and
other relief, any claim, dispute or controversy of any nature whatsoever,
including but not limited to tort claims or contract disputes between the
parties to this Agreement or their respective heirs, executors, administrators,
legal representatives, successors and assigns, as applicable, arising out of or
related to Employee’s employment or the terms and conditions of this Agreement,
including the implementation, applicability or interpretation thereof, shall be
resolved in accordance with the dispute resolution procedures set forth in Appendix
A attached hereto and made a part hereof.

ARTICLE 8

MISCELLANEOUS

8.1           Notices.  All notices and other communications
hereunder shall be in writing and shall be deemed to have been duly given if
delivered personally, mailed by certified mail (return receipt requested) or
sent by an overnight delivery service with tracking procedures or by facsimile
to the parties at the following addresses or at such other addresses as shall
be specified by the parties by like notice: 
If to Employee, at the address set forth below his or her name on the
signature page hereof; and if to the Company, at 555 I.H. 35 North, New
Braunfels, Texas 78130, Attention: Chairman of the Board and Chief Executive
Officer.

8.2           Equitable
Relief.  In the event of a breach or
a threatened breach by Employee of any of the provisions contained in Article 5
or 6 of this Agreement, Employee acknowledges that the Company will suffer
irreparable injury not fully compensable by money damages and, therefore, will
not have an adequate remedy available at law. 
Accordingly, the Company shall be entitled to obtain such injunctive
relief or other equitable remedy from any court of competent jurisdiction as
may be necessary or appropriate to prevent or curtail any such breach,
threatened or actual.  The foregoing
shall be in addition to and without prejudice to any other rights that the
Company may have under this Agreement, at law or in equity, including, without
limitation, the right to sue for damages.

8.3           No
Rights in Contracts.  Employee
acknowledges and agrees that he or she shall not have any rights in or to any
contracts entered into with clients or customers of the Company in connection
with services provided by Employee hereunder (including those in which Employee
may be specifically named with the Company), unless otherwise agreed to in
writing by the Company.

 

8.4           Assignment.  The rights and obligations of the Company
under this Agreement shall inure to the benefit of and shall be binding upon
the successors and assigns of the Company. 
Employee’s rights under this Agreement are not assignable and any
attempted assignment thereof shall be null and void.

8.5           Governing
Law; Venue.  This Agreement shall be
subject to and governed by the laws of the State of Texas.  Non-exclusive venue for any action permitted
hereunder shall be proper in San Antonio, Bexar County, Texas, and Employee
hereby consents to such venue.

8.6           Entire
Agreement; Amendments.  This
Agreement constitutes the entire agreement between the parties and supersedes
all other agreements between the parties which may relate to the subject matter
contained in this Agreement.  This
Agreement may not be amended or modified except by an agreement in writing
which refers to this Agreement and is signed by both parties.

8.7           Headings.  The headings of sections and subsections of
this Agreement are for convenience only and shall not in any way affect the
interpretation of any provision of this Agreement or of the Agreement itself.

8.8           Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law.  If any provision
of this Agreement shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining
provisions of this Agreement.

8.9           Waiver.  The waiver by any party of a breach of any
provision hereof shall not be deemed to constitute the waiver of any prior or
subsequent breach of the same provision or any other provisions hereof.  Further, the failure of any party to insist
upon strict adherence to any term of this Agreement on one or more occasions
shall not be considered a waiver or deprive that party of the right thereafter
to insist upon strict adherence to that term or any other term of this
Agreement unless such party expressly waives such provision pursuant to a written
instrument which refers to this Agreement and is signed by such party.

[Signatures on Following
Page]

IN WITNESS
WHEREOF, the parties have executed this Agreement as of the day and year first
above written.

	
  

  	
  RUSH ADMINISTRATIVE SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W. Marvin
  Rush

  
	
   

  	
   

  	
  W. Marvin Rush,

  
	
   

  	
   

  	
  Chief Executive
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Steven L.
  Keller

  
	
   

  	
   

  	
  Steven L. Keller

  

 

 

APPENDIX A

DISPUTE RESOLUTION PROCEDURES

Re:      Employment Agreement dated March 20, 2007 (including any
amendments, the “Agreement”), between Rush Administrative Services,
Inc., a Delaware corporation (the “Company”), and Steven L. Keller (“Employee”).  Unless otherwise defined in this Appendix
A, terms defined in the Agreement and used herein shall have the meanings
set forth therein.

A.   Negotiations.  If any claim, dispute or controversy
described in Article 7 of the Agreement (collectively, the “Dispute”)
arises, either party may, by written notice to the party, have the Dispute
referred to the persons designated below for attempted resolution by good faith
negotiations within 45 days after such written notice is received.  Such designated persons are as follows:

1. 
Company.  The Chairman of
the Board and Chief Executive Officer or his designee; and

2. 
Employee.  Employee or his
or her designee.

Any settlement reached by the parties
under this paragraph A shall not be binding until reduced to writing and signed
by both parties.  When reduced to
writing, such settlement agreement shall supersede all other agreements,
written or oral, to the extent such agreements specifically pertain to the
matters so settled.  If the
above-designated persons are unable to resolve such dispute within such 45-day
period, either party may invoke the provisions of paragraph B below.

B.    Arbitration.  All Disputes shall be settled by negotiation
among the parties as described in paragraph A above or, if such negotiation is
unsuccessful, by binding arbitration in accordance with procedures set forth in
paragraphs C and D below.

C.    Notice.  Notice of demand for binding arbitration by
one party shall be given in writing to the other party pursuant to the
Agreement.  In no event may a notice of
demand of any kind be filed more than one (1) year after the date the Dispute is
first asserted in writing to the other party pursuant to paragraph A above, and
if such demand is not timely filed, the Dispute referenced in the notice given
pursuant to paragraph A above shall be deemed released, waived, barred and
unenforceable for all time, and barred as if by statute of limitations.

D.    Binding
Arbitration.  Upon filing of a notice
of demand for binding arbitration by either party, arbitration shall be
commenced and conducted as follows:

1. 
Arbitrators.  All Disputes
and related matters in question shall be referred to and decided and settled by
a panel of three arbitrators, one selected by the Company, one selected by
Employee and the third selected by the two arbitrators so selected.  Selection of the arbitrators to be selected
the Company and Employee shall be made within ten (10) business days after the
date of giving of a notice of demand for arbitration, and the two

arbitrators so appointed shall appoint
the third within 10 business days following their appointment.

2. 
Cost of Arbitration.  The
cost of arbitration proceedings, including without limitation the arbitrators’
compensation and expenses, hearing room charges, court reporter transcript
charges etc., shall be borne by the parties equally or otherwise as the
arbitrators may determine.  The
arbitrators may award the prevailing party its reasonable attorneys’ fees and
costs incurred in connection with the arbitration.  The arbitrators are specifically instructed
to award attorneys’ fees for instances of abuse in the discovery process.

3. 
Location of Proceedings. 
The arbitration proceedings shall be held in San Antonio, Texas, unless
the parties agree otherwise.

4. 
Pre-hearing Discovery.  The
parties shall have the right to conduct and enforce pre-hearing discovery in
accordance with the then current Federal Rules of Civil Procedure, subject to
these limitations:

(a) 
Each party may serve no more than one set of interrogatories limited to
30 questions, including sub-parts;

(b) 
Each party may depose the other party’s expert witnesses who will be
called to testify at the hearing, plus two fact witnesses without regard to
whether they will be called to testify (each party will be entitled to a total
of no more than 24 hours of deposition time of the other party’s witnesses), provided
however, that the arbitrators may provide for additional depositions upon
showing of good cause; and

(c) 
Document discovery and other discovery shall be under the control of and
enforceable by the arbitrators.

5. 
Discovery disputes.  All
discovery disputes shall be decided by the arbitrators.  The arbitrators are empowered;

(a) 
to issue subpoenas to compel pre-hearing document or deposition
discovery;

(b) 
to enforce the discovery rights and obligations of the parties; and

(c) 
to otherwise to control the scheduling and conduct of the proceedings.

Notwithstanding any contrary foregoing
provisions, the arbitrators shall have the power and authority to, and to the
fullest extent practicable shall, abbreviate arbitration discovery in a manner
which is fair to all parties in order to expedite the conclusion of each
alternative dispute resolution proceeding.

 

6. 
Pre-hearing Conference. 
Within fifteen (15) days after selection of the third arbitrator, or as
soon thereafter as is mutually convenient to the arbitrators, the arbitrators
shall hold a pre-hearing conference to establish schedules for completion of
discovery, for exchange of exhibit and witness lists, for arbitration briefs
and for the hearing, and to decide procedural matters and address all other
questions that may be presented.

7. 
Hearing Procedures.  The
hearing shall be conducted to preserve its privacy and to allow reasonable
procedural due process.  Rules of
evidence need not be strictly followed, and the hearing shall be streamlined as
follows:

(a) 
Documents shall be self-authenticating, subject to valid objection by
the opposing party;

(b) 
Expert reports, witness biographies, depositions and affidavits may be
utilized, subject to the opponent’s right of a live cross-examination of the
witness in person;

(c) 
Charts, graphs and summaries shall be utilized to present voluminous
data, provided (i) that the underlying data is made available to the
opposing party thirty (30) days prior to the hearing, and (ii) that the
preparer of each chart, graph or summary is available for explanation and live
cross-examination in person;

(d) 
The hearing should be held on consecutive business days without
interruption to the maximum extent practicable; and

(e) 
The arbitrators shall establish all other procedural rules for the
conduct of the arbitration in accordance with the rules of arbitration of the
Center for Public Resources.

8. 
Governing Law.  This
arbitration provision shall be governed by, and all rights and obligations
specifically enforceable under and pursuant to, the Federal Arbitration Act (9
U.S.C. Sections 1-14.)

9. 
Consolidation.  No
arbitration shall include, by consolidation, joinder or in any other manner,
any additional person not a party to the Agreement, except by written consent
of both parties containing a specific reference to these provisions.

10. 
Award.  The arbitrators are
empowered to render an award of general compensatory damages and equitable
relief (including, without limitations, injunctive relief), but are not empowered
to award exemplary, special or punitive damages.  The award rendered by the arbitrators
(a) shall be final, (b) shall not constitute a basis for collateral
estoppel as to any issue and (c) shall not be subject to vacation or
modification.

11.  Confidentiality.  The parties hereto will maintain the
substance of any proceedings hereunder in confidence and the arbitrators, prior
to any proceedings

hereunder, will sign an agreement whereby the
arbitrators agree to keep the substance of any proceedings hereunder in
confidence.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]