Document:

Exhibit 10.8.6

 

EXECUTION VERSION

 

INTERCOMPANY SUBORDINATION AGREEMENT

 

THIS INTERCOMPANY SUBORDINATION AGREEMENT (this “Agreement”), dated as of April 2, 2015, is delivered by and among JACK COOPER HOLDINGS CORP., a Delaware corporation (“Parent”) and each of Parent’s undersigned Subsidiaries (Parent and such Subsidiaries, each, an “Obligor”, and individually and collectively, jointly and severally, the “Obligors”), in favor of MSDC JC Investments, LLC, as agent for the Lender Group (in such capacity, together with its successors and assigns, if any, in such capacity, “Agent”), in light of the following:

 

WHEREAS, Parent the Lenders and Agent are, contemporaneously herewith, entering into that certain Credit Agreement dated as of March 31, 2015 (as amended, restated, supplemented, modified, renewed, refinanced or extended from time to time, the “Credit Agreement”);

 

WHEREAS, each Obligor has made or may make certain loans or advances from time to time to one or more other Obligors; and

 

WHEREAS, in order to induce the Lender Group to enter into the Credit Agreement, each Obligor has agreed to the subordination of the indebtedness of each other Obligor to such Obligor, upon the terms and subject to the conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises, covenants, conditions, representations, and warranties set forth herein and for other good and valuable consideration, the parties hereto agree as follows:

 

SECTION 1.                 Definitions; Interpretation.

 

(a)           Terms Defined in Credit Agreement. All capitalized terms used in this Agreement and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement.

 

(b)           Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings:

 

“Agent” has the meaning set forth in the preamble to this Agreement.

 

“Agreement” has the meaning set forth in the preamble to this Agreement.

 

“Credit Agreement” has the meaning set forth in the recitals to this Agreement.

 

“Discharge of Senior Debt” means the indefeasible payment in full (or cash collateralization in accordance with the terms of the Credit Agreement) of all Senior Debt other than contingent indemnification Senior Debt.

 

“Insolvency Event” has the meaning set forth in Section 3.

 

 

“Obligor” and “Obligors” have the respective meanings set forth in the preamble to this Agreement.

 

“Parent” has the meaning set forth in the preamble to this Agreement.

 

“Senior Debt” means the Obligations and other indebtedness and liabilities of the Obligors to the Lender Group under or in connection with the Credit Agreement and the other Loan Documents.

 

“Subordinated Debt” means, with respect to each Obligor, all indebtedness, liabilities, and other monetary obligations (including any payments or redemptions with respect to any Preferred Stock) of any other Obligor owing to such Obligor in respect of any and all loans, advances, or Preferred Stock made by such Obligor to such other Obligor whether now existing or hereafter arising, and whether due or to become due, absolute or contingent, liquidated or unliquidated, determined or undetermined, including all fees and all other amounts payable by any other Obligor to such Obligor under or in connection with any documents or instruments related thereto.

 

“Subordinated Debt Payment” means any payment or distribution by or on behalf of the Obligors, directly or indirectly, of assets of the Obligors of any kind or character, whether in cash, property, or securities, including on account of the purchase, redemption, or other acquisition of Subordinated Debt, as a result of any collection, sale, or other disposition of Collateral, or by setoff, exchange, or in any other manner, in each case, for or on account of the Subordinated Debt.

 

(c)           Interpretation. Unless the context of this Agreement clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the term “including” is not limiting, and the term “or” is not exclusive. The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement. Section, subsection, clause, schedule, and exhibit references are to this Agreement unless otherwise specified. References to agreements and other contractual instruments shall be deemed to include all subsequent amendments, restatements and other modifications thereto. References to statutes or regulations are to be construed as including all statutory and regulatory provisions consolidating, amending, or replacing the statute or regulation referred to. Any reference herein to the satisfaction or payment in full of the Senior Debt shall mean the Discharge of Senior Debt. The captions and headings are for convenience of reference only and shall not affect the construction of this Agreement.

 

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SECTION 2.                 Subordination To Payment Of Senior Debt.  As to each Obligor, all payments on account of the Subordinated Debt shall be subject, subordinate, and junior, in right of payment and exercise of remedies, to the extent and in the manner set, forth herein, to the Senior Debt.

 

SECTION 3.                 Subordination Upon Any Distribution Of Assets Of The Obligors. As to each Obligor, in the event of any payment or distribution of assets of any other Obligor of any kind or character, whether in cash, property, or securities, upon the dissolution, winding up, or total or partial liquidation or reorganization, readjustment, arrangement, or similar proceeding relating to such other Obligor or its property, whether voluntary or involuntary, or in bankruptcy, insolvency, receivership, arrangement, or similar proceedings or upon an assignment for the benefit of creditors, or upon any other marshaling or composition of the assets and liabilities of such other Obligor, or otherwise (such events, collectively, the “Insolvency Events”): (a) the Discharge of Senior Debt must have occurred before any Subordinated Debt Payment is made; and (b) to the extent permitted by applicable law, any Subordinated Debt Payment to which such Obligor would be entitled except for the provisions hereof, shall be paid or delivered by the trustee in bankruptcy, receiver, assignee for the benefit of creditors, or other liquidating lender making such payment or distribution directly to Agent for application to the payment of the Senior Debt in accordance with clause (a), after giving effect to any concurrent payment or distribution or provision therefor to Agent or any member of the Lender Group in respect of such Senior Debt until the Discharge of Senior Debt.

 

SECTION 4.                 Payments On Subordinated Debt.

 

(a)           Permitted Payments. So long as no Event of Default has occurred and is continuing, each Obligor may make, and each other Obligor shall be entitled to accept and receive, Subordinated Debt Payments allowed to be made, if any, under the Credit Agreement.

 

(b)           No Payment Upon Senior Debt Defaults. Upon the occurrence and during the continuance of any Event of Default, and until such Event of Default is cured or waived, no Obligor shall make, and no other Obligor shall accept or receive, any Subordinated Debt Payment.

 

SECTION 5.                 Subordination Of Remedies. Until Discharge of Senior Debt, following the occurrence and during the continuance of any Event of Default and until such Event of Default is cured or waived, no Obligor shall, without the prior written consent of Agent:

 

(a)           accelerate, make demand, or otherwise make due and payable prior to the original due date thereof any Subordinated Debt or bring suit or institute any other actions or proceedings to enforce its rights or interests in respect of the obligations of any other Obligor owing to such Obligor;

 

(b)           exercise any rights under or with respect to guaranties of the Subordinated Debt, if any;

 

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(c)           exercise any rights to set-offs and counterclaims in respect of any indebtedness, liabilities, or obligations of such Obligor to any other Obligor against any of the Subordinated Debt; or

 

(d)           commence, or cause to be commenced, or join with any creditor other than Agent or any Lender in commencing, any bankruptcy, insolvency, or receivership proceeding against the other Obligor.

 

SECTION 6.                 Payment Over To Agent. In the event that, notwithstanding the provisions of Sections 2, 3, 4, and 5, any Subordinated Debt Payments shall be received in contravention of such Sections 2, 3, 4, and 5 by any Obligor before the Discharge of Senior Debt shall have occurred, such Subordinated Debt Payments shall be held in trust for the benefit of the Lender Group, and shall be paid over or delivered to Agent for application to the payment, in full, of all Senior Debt (other than contingent indemnifications not yet due and payable) remaining unpaid to the extent necessary to give effect to such Sections 2, 3, 4, and 5, after giving effect to any concurrent payments or distributions to Agent or any member of the Lender Group in respect of the Senior Debt.

 

SECTION 7.                 Authorization To Agent.  If, while any Subordinated Debt is outstanding, any Event of Default shall occur and be continuing: (a) Agent hereby is irrevocably authorized and empowered (in the name of each other Obligor or otherwise), but shall have no obligation, to demand, sue for, collect, and receive every payment or distribution in respect of the Subordinated Debt and give acquittance therefor and to file claims and proofs of claim and take such other action (including voting the Subordinated Debt) as it may deem necessary or advisable for the exercise or enforcement of any of the rights or interests of Agent; and (b) each other Obligor shall, to the extent permitted by law, promptly take such action as Agent reasonably may request (i) to collect the Subordinated Debt for the account of the Lender Group and to file appropriate claims or proofs of claim in respect of the Subordinated Debt, (ii) to execute and deliver to Agent such powers of attorney, assignments, and other instruments as it may request to enable it to enforce any and all claims with respect to the Subordinated Debt, and (iii) to collect and receive any and all Subordinated Debt Payments.

 

SECTION 8.                 Certain Agreements Of Each Obligor.

 

(a)           No Benefits. Each Obligor understands that there may be various agreements between the Lender Group and any other Obligor evidencing and governing the Senior Debt, and each Obligor acknowledges and agrees that such agreements are not intended to confer any benefits on such Obligor unless such Obligor is also a party thereto (in which case, the rights of such Obligor are as set forth therein) and that Agent and the Lenders shall have no obligation to such Obligor or any other Person to exercise any rights, enforce any remedies, or take any actions which may be available to them under such agreements unless such Obligor is also a party thereto (in which case, the rights of such Obligor or such Person are as set forth therein).

 

(b)           No Interference. Each Obligor acknowledges that certain other Obligors have granted to Agent for the benefit of the Lender Group, security interests in substantially all of such other Obligor’s assets, and agrees not to interfere with or in any manner oppose a

 

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disposition of any Collateral of such other Obligor by Agent in accordance with the applicable Loan Documents and applicable law.

 

(c)           Reliance by Agent and Lenders. Each Obligor acknowledges and agrees that Agent and the Lenders will have relied upon and will continue to rely upon the subordination provisions provided for herein and the other provisions hereof in entering into the Loan Documents.

 

(d)           Waivers. Except as provided under the Credit Agreement or any other Loan Document, each Obligor hereby waives any and all notice of the incurrence of the Senior Debt or any part thereof and any right to require marshaling of assets.

 

(e)           Obligations of Each Obligor Not Affected. Each Obligor hereby agrees that at any time and from time to time, without notice to or the consent of such Obligor, without incurring responsibility to such Obligor, and without impairing or releasing the subordination provided for herein or otherwise impairing the rights of Agent hereunder: (i) the time for any other Obligor’s performance of or compliance with any of its agreements contained in the Loan Documents may be extended or such performance or compliance may be waived by Agent or the Lenders; (ii) the agreements of any other Obligor with respect to the Loan Documents may from time to time be modified by such other Obligor, Agent, and the Lenders for the purpose of adding any requirements thereto or changing in any manner the rights and obligations of such other Obligor, Agent, or the Lenders thereunder; (iii) the manner, place, or terms for payment by any other Obligor of Senior Debt or any portion thereof may be altered or the terms for payment extended, or the Senior Debt of any other Obligor may be renewed in whole or in part; (iv) the maturity of the Senior Debt of any other Obligor may be accelerated in accordance with the terms of any present or future agreement by any other Obligor, Agent, and the Lenders; (v) any Collateral may be sold, exchanged, released, or substituted and any Lien in favor of Agent may be terminated, subordinated, or fail to be perfected or become unperfected; (vi) any Person liable in any manner for Senior Debt may be discharged, released, or substituted; and (vii) all other rights against the other Obligors, any other Person, or with respect to any Collateral may be exercised (or Agent may waive or refrain from exercising such rights as provided in the Loan Documents or under applicable law) in each case, in accordance with the applicable Loan Documents and applicable law.

 

(f)            Rights of Agent Not to Be Impaired. No right of Agent or the Lenders to enforce the subordination provided for herein or to exercise its other rights hereunder shall at any time in any way be prejudiced or impaired by any act or failure to act by any Obligor, Agent, or the Lenders hereunder or under or in connection with the other Loan Documents or by any noncompliance by the other Obligors with the terms and provisions and covenants herein or in any other Loan Document, regardless of any knowledge thereof Agent or the Lenders may have or otherwise be charged with.

 

(g)           Financial Condition of the Obligors. Except as otherwise permitted under the Credit Agreement, the other Loan Documents or by applicable law, no Obligor shall have any right to require Agent or any Lender to obtain or disclose any information with respect to: (i) the financial condition or character of any other Obligor or the ability of any other Obligor to pay and perform any or all of Senior Debt; (ii) the Senior Debt; (iii) the Collateral or other security

 

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for any or all of the Senior Debt; (iv) the existence or nonexistence of any guarantees of, or any other subordination agreements with respect to, all or any part of the Senior Debt; or (v) any action or inaction on the part of Agent, any Lender or any other Person.

 

(h)           Acquisition of Liens or Guaranties. No Obligor shall, without the prior consent of Agent and except as permitted under the Credit Agreement, acquire any right or interest in or to any Collateral not owned by such Obligor or accept any guaranties from any other Obligor or from any other Subsidiary of any Loan Party for the Subordinated Debt.

 

SECTION 9.                 Subrogation.

 

(a)           Subrogation. Until such time as the Discharge of the Senior Debt has occurred, no Obligor shall directly or indirectly exercise any rights that it may acquire by way of subrogation under or in connection with this Agreement against any other Obligor, whether by any payment or distribution to the Agent, the Lender Group or otherwise; provided that anything to the contrary contained in the foregoing notwithstanding, no Obligor shall exercise any such rights against any other Obligor (including after Discharge of the Senior Debt) if all or any portion of the Senior Debt shall have been satisfied in connection with an exercise of remedies by Agent in respect of the Stock of such other Obligor whether pursuant to the Security Agreement or otherwise. For the purposes of the foregoing subrogation, no payments or distributions to Agent of any cash, property, or securities to which any Obligor would be entitled except for the provisions of Section 2, 3, 4, or 5 shall, as among such Obligor, its creditors (other than Agent and the Lenders), and the other Obligors, be deemed to be a payment by the other Obligors to or on account of the Senior Debt.

 

(b)           Payments Over to the Obligors. If any payment or distribution to which any Obligor would otherwise have been entitled but for the provisions of Section 2, 3, 4, or 5  shall have been applied pursuant to the provisions of Section 2, 3, 4, or 5 to the payment of all amounts payable under the Senior Debt, such Obligor shall be entitled to receive from Agent or the Lenders any payments or distributions received by Agent or the Lenders in excess of the amount sufficient to pay in full in cash all amounts payable under or in respect of the Senior Debt. If any such excess payment is made to Agent or the Lenders, Agent or the Lenders shall promptly remit such excess to such Obligor and until so remitted shall hold such excess payment for the benefit of such Obligor.

 

SECTION 10.               Continuing Agreement; Reinstatement.

 

(a)           Continuing Agreement.  This Agreement is a continuing agreement of subordination and shall continue in effect and be binding upon each Obligor until the Discharge of Senior Debt has occurred. The subordinations, agreements, and priorities set forth herein shall remain in full force and effect regardless of whether any party hereto in the future seeks to rescind, amend, terminate, or reform, by litigation or otherwise, its respective agreements with the other Obligor.

 

(b)           Reinstatement.  This Agreement shall continue to be effective or shall be reinstated, as the case may be, if, for any reason, any payment of the Senior Debt by or on behalf

 

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of any other Obligor shall be rescinded or must otherwise be restored by Agent or the Lenders, whether as a result of an Insolvency Event or otherwise.

 

SECTION 11.               Transfer Of Subordinated Debt.  No Obligor may assign or transfer its rights and obligations in respect of the Subordinated Debt except to another Obligor or as expressly permitted by the Credit Agreement without the prior written consent of Agent, and any such transferee or assignee, as a condition to acquiring an interest in the Subordinated Debt shall agree to be bound hereby, in form satisfactory to Agent.

 

SECTION 12.               Obligations Of The Obligors Not Affected.  The provisions of this Agreement are intended solely for the purpose of defining the relative rights of each Obligor against the other Obligors, on the one hand, and of Agent and the Lenders against the Obligors, on the other hand. Nothing contained in this Agreement shall (i) impair, as between each Obligor and the other Obligors, the obligation of the other Obligors to pay their respective obligations with respect to the Subordinated Debt as and when the same shall become due and payable, or (ii) otherwise affect the relative rights of each Obligor against the other Obligors, on the one hand, and of the creditors (other than Agent or the Lenders) of the other Obligors against the other Obligors, on the other hand.

 

SECTION 13.               Endorsement Of Obligor Documents; Further Assurances And Additional Acts.

 

(a)           Endorsement of Obligor Documents. At the request of Agent, all documents and instruments evidencing any of the Subordinated Debt, if any, shall be endorsed with a legend noting that such documents and instruments are subject to this Agreement, and each Obligor shall promptly deliver to Agent evidence of the same.

 

(b)           Further Assurances and Additional Acts.  Each Obligor shall execute, acknowledge, deliver, file, notarize, and register at its own expense all such further agreements, instruments, certificates, financing statements, documents, and assurances, and perform such acts as Agent reasonably shall deem necessary or appropriate to effectuate the purposes of this Agreement, and promptly provide Agent with evidence of the foregoing reasonably satisfactory in form and substance to Agent.

 

SECTION 14.               Notices.  All notices and other communications hereunder to Agent shall be in writing and shall be mailed, sent or delivered in accordance with notice provisions contained in the Credit Agreement and all notices and other communications hereunder to an Obligor shall be in writing and shall be mailed, sent or delivered in care of Parent in accordance with the Credit Agreement.

 

SECTION 15.               No Waiver; Cumulative Remedies.  No failure on the part of Agent or the Lenders to exercise, and no delay in exercising, any right, remedy, power, or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, remedy, power, or privilege preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege. The rights and remedies under this Agreement are cumulative and not exclusive of any rights, remedies, powers, and privileges that may otherwise be available to Agent and the Lenders.

 

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SECTION 16.               Costs And Expenses.  Each of the Obligors, jointly and severally, agrees to pay to Agent on written demand (a) all reasonable out-of-pocket costs and expenses incurred by Agent to the extent Agent reasonably deems necessary or appropriate for the performance and fulfillment of its functions, powers, and obligations pursuant to this Agreement, and the reasonable fees and disbursements of counsel to Agent, in connection with the negotiation, preparation, execution, delivery, and administration of this Agreement, and any amendments, modifications, or waivers of the terms thereof; and (b) all reasonable out-of-pocket costs and expenses of Agent, and the reasonable fees and disbursements of counsel, in connection with the enforcement or attempted enforcement of, and preservation of rights or interests under, this Agreement (including any amendments, modifications, or waiver of the terms hereof), including any losses, out-of-pocket costs and expenses sustained by Agent as a result of any failure by any Obligor to perform or observe its obligations contained in this Agreement.

 

SECTION 17.               Survival.  All covenants, agreements, representations and warranties made in this Agreement shall, except to the extent otherwise provided herein, survive the execution and delivery of this Agreement, and shall continue in full force and effect until the Discharge of Senior Debt has occurred. Without limiting the generality of the foregoing, the obligations of each Obligor under Sections 9(a) and 16 shall survive the Discharge of Senior Debt.

 

SECTION 18.               Benefits of Agreement.  This Agreement is entered into for the sole protection and benefit of the parties hereto, the Lenders and their permitted successors and assigns, and no other Person shall be a direct or indirect beneficiary of, or shall have any direct or indirect cause of action or claim in connection with, this Agreement.

 

SECTION 19.               Binding Effect.  This Agreement shall be binding upon, inure to the benefit of and be enforceable by each Obligor, Agent, and the Lenders and their respective permitted successors and permitted assigns.

 

SECTION 20.               Governing Law. THE VALIDITY OF THIS AGREEMENT, THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF, THE RIGHTS OF THE PARTIES HERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER  OR RELATED HERETO, AND ANY CLAIMS, CONTROVERSIES OR DISPUTES ARISING HEREUNDER OR RELATED HERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 21.               Submission to Jurisdiction.

 

(a)           EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR FOR THE RECOGNITION OR

 

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ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING SHALL BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR, TO THE EXTENT PERMITTED BY LAW, SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTWITHSTANDING THE FOREGOING,  ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. PARENT AND EACH MEMBER OF THE LENDER GROUP WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 21.

 

(b)           TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HERETO HEREBY WAIVE THEIR RESPECTIVE RIGHTS, IF ANY, TO A JURY TRIAL OF ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION DIRECTLY OR INDIRECTLY BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS (EACH A “CLAIM”). EACH OF THE PARTIES HERETO REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

NO CLAIM MAY BE MADE BY OBLIGORS AGAINST AGENT, ANY LENDER, OR ANY AFFILIATE, DIRECTOR, OFFICER, EMPLOYEE, COUNSEL, REPRESENTATIVE, AGENT, OR ATTORNEY-IN-FACT OF ANY OF THEM FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES OR LOSSES IN RESPECT OF ANY CLAIM FOR BREACH OF CONTRACT OR ANY OTHER THEORY OF LIABILITY ARISING OUT OF OR RELATED TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY ACT, OMISSION, OR EVENT OCCURRING IN CONNECTION THEREWITH, AND EACH OBLIGOR HEREBY WAIVES, RELEASES, AND AGREES NOT TO SUE UPON ANY CLAIM FOR SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR.

 

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SECTION 22.               Entire Agreement; Amendments And Waivers.

 

(a)           Entire Agreement.  This Agreement constitutes the entire agreement of each of the Obligors and Agent with respect to the matters set forth herein and supersedes any prior agreements, commitments, drafts, communications, discussions, and understandings, oral or written, with respect thereto. None of the terms or conditions of this Agreement imposes on the Obligors any obligation or liability under any Loan Document (other than this Agreement). The foregoing notwithstanding, the terms and conditions of this Agreement shall not in any way limit or affect the obligations or liabilities of any Obligor under the Loan Documents to which such Obligor is a party.

 

(b)           Amendments and Waivers.  No amendment to or waiver of any provision of this Agreement shall in any event be effective unless the same shall be in writing and signed by each of the Obligors and Agent; and no waiver of any provision of this Agreement or consent to any departure by any Obligor from any provision hereof, shall in any event be effective unless the same shall be in writing and signed by Agent. Any such amendment, waiver, or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

SECTION 23.               Conflicts.

 

(a)           Conflicts with Subordinated Debt Documents. In case of any conflict or inconsistency between any terms of this Agreement, on the one hand, and any documents or instruments in respect of the Subordinated Debt, on the other hand, then the terms of this Agreement shall control.

 

(b)           Conflicts with Credit Agreement. In case of any conflict or inconsistency between any terms of this Agreement, on the one hand, and any of the terms and provisions of the Credit Agreement, on the other hand, then the terms and provisions of the Credit Agreement shall control.

 

SECTION 24.               Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under all applicable laws and regulations. If, however, any provision of this Agreement shall be prohibited by or invalid under any such law or regulation in any jurisdiction, it shall, as to such jurisdiction, be deemed modified to conform to the minimum requirements of such law or regulation, or, if for any reason it is not deemed so modified, it shall be ineffective and invalid only to the extent of such prohibition or invalidity without affecting the remaining provisions of this Agreement or the validity or effectiveness of such provision in any other jurisdiction.

 

SECTION 25.               Interpretation.  This Agreement is the result of negotiations between, and have been reviewed by the respective counsel to, the Obligors and Agent and is the product of all parties hereto. Accordingly, this Agreement shall not be construed against Agent merely because of Agent’s involvement in the preparation hereof.

 

SECTION 26.               Counterparts; Telefacsimile Execution.  This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery of an executed

 

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counterpart of this Agreement by telefacsimile or electronic mail shall be equally effective as delivery of an original executed counterpart of this Agreement. Any party delivering an executed counterpart of this Agreement by telefacsimile also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Agreement.

 

SECTION 27.               New Obligors.  In the event that Agent requires one or more new direct or indirect Subsidiaries of Parent to enter into this Agreement pursuant to the Credit Agreement, they may do so by executing and delivering in favor of Agent a supplement to this Agreement in the form of Annex 1 attached hereto. Upon the execution and delivery of such supplement by such new Subsidiary, such Subsidiary shall become an Obligor hereunder with the same force and effect as if originally named as an Obligor herein. The execution and delivery of any instrument adding an additional Obligor as a party to this Agreement shall not require the consent of any Obligor hereunder. The rights and obligations of each Obligor hereunder shall remain in full force and effect notwithstanding the addition of any new Obligor hereunder.

 

SECTION 28.               Termination of Agreement.  Upon the Discharge of Senior Debt, this Agreement shall terminate and Agent shall promptly execute and deliver to each Obligor such documents and instruments as shall be necessary to evidence such termination; provided, however, that the obligations of each Obligor under Section 9(a), Section 16, and Section 17 shall survive such termination.

 

[Signature pages follow.]

 

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IN WITNESS WHEREOF, the undersigned has executed and delivered this Agreement as of the date first written above.

 

	
OBLIGORS:
    	
JACK   COOPER HOLDINGS CORP.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Title:   Chief Executive Officer
    
	
 
    	
Name:   T. Michael Riggs
    
	
 
    	
 
    
	
 
    	
AUTO   HANDLING CORPORATION
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Title:   Chief Executive Officer
    
	
 
    	
Name:   T. Michael Riggs
    
	
 
    	
 
    
	
 
    	
JACK   COOPER LOGISTICS, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Title:   Chief Executive Officer
    
	
 
    	
Name:   T. Michael Riggs
    
	
 
    	
 
    
	
 
    	
JACK   COOPER TRANSPORT COMPANY, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Title:   Chief Executive Officer
    
	
 
    	
Name:   T. Michael Riggs
    
	
 
    	
 
    
	
 
    	
PACIFIC   MOTOR TRUCKING COMPANY
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Title:   Chief Executive Officer
    
	
 
    	
Name:   T. Michael Riggs
    

 

[Signatures continue on the following page]

 

Intercompany Subordination Agreement

 

 

	
 
    	
JACK   COOPER SPECIALIZED TRANSPORT, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Title:   Chief Executive Officer
    
	
 
    	
Name:   T. Michael Riggs
    
	
 
    	
 
    
	
 
    	
AUTO   EXPORT SHIPPING, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Title:   Chief Executive Officer
    
	
 
    	
Name:   T. Michael Riggs
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
AXIS   LOGISTIC SERVICES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Title:   Chief Executive Officer
    
	
 
    	
Name:   T. Michael Riggs
    
	
 
    	
 
    
	
 
    	
JACK   COOPER CT SERVICES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Title:   Chief Executive Officer
    
	
 
    	
Name:   T. Michael Riggs
    
	
 
    	
 
    
	
 
    	
JACK   COOPER RAIL AND SHUTTLE, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Title:   Chief Executive Officer
    
	
 
    	
Name:   T. Michael Riggs
    

 

[Signatures continue on the following page]

 

Intercompany Subordination Agreement

 

 

	
 
    	
JCSV   DUTCH B.V.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   K. A. Wouters
    
	
 
    	
Name:
    	
K.   A. Wouters
    
	
 
    	
Title:   Director A
    
	
 
    	
Place:   Amsterdam, the Netherlands
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:   
    	
T.   Michael Riggs
    
	
 
    	
Title:   Director B
    
	
 
    	
Place:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JCSV   DUTCH COÖPERATIEF U.A.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   L.F.M. Heine
    
	
 
    	
Name:
    	
L.F.M.   Heine
    
	
 
    	
Title:   Director A
    
	
 
    	
Place:   Amsterdam, the Netherlands
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:   
    	
T.   Michael Riggs
    
	
 
    	
Title:   Director B
    
	
 
    	
Place:
    

 

[Signatures continue on the following page]

 

Intercompany Subordination Agreement

 

 

	
 
    	
JCSV   DUTCH 1 C.V.
    
	
 
    	
 
    
	
 
    	
By:   JCSV I, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JCSV   NETHERLANDS 2 C.V.
    
	
 
    	
 
    
	
 
    	
By:   JCSV II, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    

 

[Signatures continue on the following page]

 

Intercompany Subordination Agreement

 

 

	
 
    	
JCSV   I, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
JCSV   II, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
JCSV   III, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    

 

[Signatures continue on the following page]

 

Intercompany Subordination Agreement

 

 

	
 
    	
JACK   COOPER TRANSPORT CANADA, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
JACK   COOPER CANADA GP 1 INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
JACK   COOPER CANADA GP 2 INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    

 

[Signatures continue on the following page]

 

Intercompany Subordination Agreement

 

 

	
 
    	
JACK   COOPER CANADA 1 LIMITED PARTNERSHIP.
    
	
 
    	
 
    
	
 
    	
By:   Jack Cooper Canada GP 1 Inc., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
JACK   COOPER CANADA 2 LIMITED PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
By:   Jack Cooper Canada GP 2 Inc., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    

 

[Signatures continue on the following page]

 

Intercompany Subordination Agreement

 

 

	
 
    	
JCH   MEXICO, S. DE R.L. DE C.V.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chairman   and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
AXIS   OPERADORA HERMOSILLO, S.A. DE C.V
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
AXIS   OPERADORA MEXICO, S.A. DE C.V.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
AXIS   OPERADORA GUADALAJARA, S.A. DE C.V.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
AXIS   OPERADORA MONTERREY S.A. DE C.V.,
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
AXIS   LOGISTICA S. DE R.L. DE C.V.,
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
AXIS   TRASLADOS, S. DE R.L. DE C.V.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    

 

[Signatures continue on the following page]

 

Intercompany Subordination Agreement

 

 

	
 
    	
ARETA,   S. DE R.L. DE C.V.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Michael Riggs
    
	
 
    	
Name:
    	
T.   Michael Riggs
    
	
 
    	
Title:
    	
Chief   Executive Officer
    

 

Intercompany Subordination Agreement

 

 

	
Agent
    	
MSDC JC INVESTMENTS, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Marcello Liguori
    
	
 
    	
Name: Marcello Liguori
    
	
 
    	
Title: Vice President
    

 

Intercompany Subordination Agreement

 

 

ANNEX 1 TO INTERCOMPANY SUBORDINATION AGREEMENT 
 FORM OF SUPPLEMENT

 

Supplement No.      (this “Supplement”) dated as of                , to the Intercompany Subordination Agreement dated as of April 2, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Subordination Agreement”) by each of the parties listed on the signature pages thereto and those additional entities that thereafter become parties thereto (collectively, jointly and severally, “New Obligors” and each individually “New Obligor”) and MSDC JC Investments, LLC,, in its capacity as Agent for the Lender Group (in such capacity, together with the successors, “Agent”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to that certain Credit Agreement dated as of March 31, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among Jack Cooper Holdings Corp. (“Parent”), the lenders party thereto (“Lenders”) and Agent, the Lender Group is willing to make certain financial accommodations available to Parent from time to time pursuant to the terms and conditions thereof; and

 

WHEREAS, capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Subordination Agreement or the Credit Agreement; and

 

WHEREAS, pursuant to Section 5.11 of the Credit Agreement, new direct or indirect Subsidiaries of any Loan Party, must execute and deliver certain Loan Documents, including the Subordination Agreement, and the execution of the Subordination Agreement by the undersigned New Obligor or New Obligors may be accomplished by the execution of this Supplement in favor of Agent, for the benefit of the Lender Group.

 

NOW, THEREFORE, for and in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each New Obligor hereby agrees as follows:

 

1.             In accordance with Section 27 of the Subordination Agreement, each New Obligor, by its signature below, becomes an “Obligor” under the Subordination Agreement with the same force and effect as if originally named therein as an “Obligor” and each New Obligor hereby (a) agrees to all of the terms and provisions of the Subordination Agreement applicable to it as a “Obligor” thereunder and (b) represents and warrants that the representations and warranties made by it as a “Obligor” thereunder are true and correct in all material respects on and as of the date hereof (except for any such representation and warranty which specifically relates to an earlier date). Each reference to an “Obligor” in the Subordination Agreement shall be deemed to include each New Obligor. The Subordination Agreement is incorporated herein by reference.

 

2.             Each New Obligor represents and warrants to Agent and the Lender Group that this Supplement has been duly executed and delivered by such New Obligor and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, except as

 

1

 

enforceability thereof may be limited by bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium or other similar laws affecting creditors’ rights generally and general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).

 

3.             This Supplement may be executed in multiple counterparts, each of which shall be deemed to be an original, but all such separate counterparts shall together constitute but one and the same instrument. Delivery of a counterpart hereof by facsimile transmission or by e-mail transmission shall be as effective as delivery of a manually executed counterpart hereof.

 

4.             Except as expressly supplemented hereby, the Subordination Agreement shall remain in full force and effect.

 

5.             This Supplement shall be construed in accordance with and governed by the laws of the State of New York, without regard to the conflict of laws principles thereof. The provisions of Section 21 of the Subordination Agreement are hereby incorporated by reference as if fully set forth herein.

 

[Signature pages follow.]

 

2

 

IN WITNESS WHEREOF, the undersigned has executed and delivered this Agreement as of the date first written above.

 

	
New Obligor:
    	
[   ],
    
	
 
    	
a [   ]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Title:
    
	
 
    	
Name:
    

 

Supplement to Intercompany Subordination Agreement

 

 

	
Agent
    	
MSDC JC INVESTMENTS, LLC
    
	
 
    	
a [  ]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

Supplement to Intercompany Subordination AgreementExhibit 10.9

 

Jack Cooper Holdings Corp.

630 Kennesaw Due West Road

Kennesaw, Georgia 30152

 

December 1, 2014

 

T. Michael Riggs

423 Lanesborough Drive

Marietta, Georgia  30064

United States of America

 

Re:          Offer of Continued Employment

 

Dear Mike,

 

Please accept this letter agreement as an offer of continued employment with Jack Cooper Holdings Corp. (the “Company”; and, together with its parent company and its direct and indirect subsidiaries, the “JC Companies”).  If you accept this offer of continued employment by signing at the bottom of this letter agreement, your continued employment with the Company will be based upon the terms and conditions set forth herein effective as of January 1, 2015 (the “Effective Date”).

 

It is acknowledged and agreed between the parties hereto that you have been an employee of one or more JC Companies since May 8, 2009, and that this letter agreement shall amend and restate any prior agreements in their entirety between you and any JC Companies concerning your employment with such JC Companies, including, without limitation, that certain Employment Agreement between you and the Company (f/k/a IEP Carhaul LLC), dated May 8, 2009 and as amended (collectively, the “Prior Agreements”).

 

You will hold the title of Chief Executive Officer of the Company and will report directly to the Board of Directors of the Company.

 

Your compensation and benefits will be as follows:

 

1.             Your initial base salary will be $650,000 per year, subject to upward adjustment from time to time as determined by the Board of Directors of the Company (or its Compensation Committee) its sole and absolute discretion.

 

2.             You will have the opportunity to receive an annual, performance-based, discretionary bonus of up to fifty percent (50%) of your then current base salary as determined by the the Board of Directors of the Company (or its Compensation Committee) in its sole and absolute discretion.  Furthermore, you will have the opportunity to receive additional discretionary bonuses as determined by the Board of Directors of the Company (or its Compensation Committee) in its sole and absolute discretion.

 

 

3.             As of the first day of your employment with the Company, you will be entitled to participate in all benefit programs, if any, that the Company establishes and makes available to its employees to the extent you are eligible and it is permitted under the plan documents governing such programs.

 

4.             You will be entitled to four (4) weeks paid vacation per year, in addition to sick days and paid holidays, all in accordance with the Company’s policies and procedures.

 

5.             If you and the Company agree to an employment-related relocation, then you will be entitled to a reimbursement of properly documented, customary and reasonable, out-of-pocket moving expenses from your current primary residence to a new primary residence, provided the Company’s prior written approval shall be required with respect to any expenses that in the aggregate exceed $10,000.

 

6.             You will be entitled to an automobile allowance of $650 per month and reimbursement of reasonable fuel charges incurred in connection with your employment with the Company.

 

7.             (a)           Except as provided in Section 7(b) below, in the event of your Termination (as hereinafter defined), then the Company shall pay to you (i) the then current base salary through the last day of your actual employment with the Company, (ii) any bonuses earned by you and declared by the Board of Directors of the Company (or its Compensation Committee) prior to such Termination for periods prior to such Termination (if any), and (iii) any benefits otherwise payable through the last day of your actual employment with the Company, and you shall thereafter not be entitled to any other compensation, payment, benefit, or right in connection with your employment.

 

(b)           Notwithstanding anything herein to the contrary, solely in the event of your Termination by the Company without Cause (as hereinafter defined) prior to the fifth (5th) anniversary of the Effective Date, then the Company shall pay to you: (i) (x) the then current base salary through the last day of your actual employment with the Company, (y) any bonuses earned by you and declared by the Board of Directors of the Company (or its Compensation Committee) prior to such Termination for periods prior to such Termination (if any), and (z) any benefits otherwise payable through the last day of your actual employment with the Company; and (ii) the initial base salary of $650,000 until the earlier of (x) eighteen (18) months after the date of such Termination by the Company without Cause and (y) the fifth (5th) anniversary of the Effective Date.  The payment to you of the amounts payable under this Section 7(b) shall (A) be contingent upon the execution by you of an irrevocable separation agreement and general release of claims, in substantially the form attached hereto as Exhibit A, that releases the JC Companies from any and all liability in any way related to the circumstances of your employment and termination therefrom and (B) constitute the sole remedy of yours in the event of a termination of your employment hereunder.

 

(c)           For purposes of Section 7(b), “Cause” means: (i) a breach of this letter agreement, which breach is not cured by you within thirty (30) days following the date that the Company provides written notice to you of such breach and the circumstances of such breach is

 

2

 

reviewed with you by the Chairman, the General Counsel, and a human resources representative of the Company; (ii) your gross negligence, gross misconduct, fraud, or dishonesty in connection with your performance of your duties, as determined by the Board of Directors of the Company in its reasonable and good faith judgment; (iii) the conviction of you for a felony or crime involving moral turpitude; (iv) the commission of a willful act by you causing harm to the Company or any other JC Company which harm, when capable of cure, is not cured within thirty (30) days following the date the Company provides notice thereof; (v) your willful refusal to follow the lawful directives of the Board of Directors of the Company consistent with your job title; or (vi) your failure to follow any policies or procedures of the Company following the date the Company provides written notice of such failure.

 

8.             By signing this letter agreement and accepting this offer of employment, you are representing and warranting to the Company that, as of the Effective Date: (a) you have not provided to the Company any confidential information or trade secrets of any of your former employers or other parties for whom you have previously performed services (such parties collectively referred to as “Former Employer”); and (b) you are not restricted by any agreement, contract, obligation, or covenant from (i) competing with any Former Employer, (ii) soliciting business from any clients or customers of any Former Employer, (iii) offering to hire or hiring the employees of any Former Employer, or (iv) performing any of your anticipated employment duties and obligations for the Company.

 

9.             During your employment with the Company or any other JC Company (including your employment under the Prior Agreements) and for two (2) years after your Termination, you shall not, directly or indirectly, on your behalf or in the service or on behalf of others:

 

(a)           (i) Solicit, or attempt to solicit, any business from any of the JC Companies’ customers, including actively seeking prospective customers, with whom you had Material Contact (as hereinafter defined) during your employment with the Company or any other JC Company for purposes of providing products or services that are competitive with those provided by the Company or any other JC Company; or (ii) induce, or attempt to induce, any of the JC Companies’ customers with whom you had Material Contact during your employment with the Company or any other JC Company to terminate, reduce, or otherwise negatively change such customer’s relationship with such JC Company.

 

(b)           (i) Solicit, divert, or hire, or attempt to solicit, divert, or hire, any person employed by the Company or any other JC Company; or (ii) solicit, encourage, or offer any inducement to any employee of the Company or any other JC Company to leave the employ of the Company or such other JC Company.

 

(c)           Own, manage, operate, join, control, be employed by or with, or participate in any manner with a Competing Business (as hereinafter defined) anywhere in the Territory (as hereinafter defined) where doing so will require you to engage in Competitive Activities.

 

(d)           Publish, broadcast, or otherwise communicate any information, misinformation, comments, opinions, or remarks, whether written or oral, regardless of its believed truth, which is adverse to, reflects unfavorably upon, or tends to disparage the Company or any other JC

 

3

 

Company or their products, services, operations, or business, provided that communications to your attorney or spouse and/or compelled testimony under oath being expressly excepted.

 

(e)           For purposes of this letter agreement:

 

(i)            “Material Contact” means the contact between you and each customer or potential customer:  (A) with whom or which you dealt on behalf of any JC Company; or (B) whose dealings with any JC Company were coordinated or supervised by you; or (C) about whom you obtained confidential information in the ordinary course of business as a result of your association with any JC Company; or (D) who received products or services authorized by any JC Company, the sale or provision of which results or resulted in compensation, commissions, or earnings for you within two (2) years prior to the date of your Termination.

 

(ii)           “Competing Business” means any individual (including, without limitation, you), corporation, limited liability company, partnership, joint venture, association, or other entity, regardless of form, that is directly engaged in whole or in relevant part in any business or enterprise that is the same as, or similar to, the business of any JC Company.  The JC Companies are engaged in the business of carhauling and/or finished vehicle logistics in the United States of America, Canada, and/or Mexico.

 

(iii)          “Competitive Activities” means engaging in activities or offering or providing products or services of the type conducted, authorized, offered, or provided by any JC Company within two (2) years prior to your Termination.

 

(iv)          “Territory” means any and all geographic areas where you were undertaking your duties and/or responsibilities for the Company or any other JC Company within two (2) years prior to your Termination.

 

(v)           “Termination” means the termination of your employment with the Company at any time and for any reason or under any circumstances, whether with or without cause, with or without good reason, initiated by you or the Company, or otherwise.

 

10.          (a)           During your employment with the Company and any other JC Company (including your employment under the Prior Agreements) and for three (3) years after your Termination, you shall: (i) hold all Confidential Information (as hereinafter defined) in the strictest confidence and you shall not, without the prior written authorization of the Company or as required by law, regulation, or legal process, disclose any Confidential Information in any manner to any person or entity, other than in the furtherance of your duties to the Company during your employment with the Company; and (ii) not use, misuse, or reproduce any Confidential Information, except as (x) may be necessary in connection with your services performed for the Company or any other JC Company hereunder or (y) required by applicable law, regulation, or legal process.

 

4

 

(b)           For purposes of this letter agreement, “Confidential Information” means information of a private, proprietary, secret, or confidential nature relating to the Company and/or the other JC Companies, including, without limitation, information concerning the Company’s and/or the other JC Companies’ customers (including names, addresses, telephone numbers, contact persons, and other identifying information with respect to the needs and requirements for customers; information dealing with the nature of customers’ accounts, including, without limitation, the dates on which agreements between any JC Company and such customers will end and/or be subject to renewal; and rate and price information and history relating to products or services provided by any JC Company to its customers), suppliers, distributors, financing sources, investors, operations, finances (including, without limitation, personnel data relating to any JC Company’s employees, such as compensation arrangements of such employees with any JC Company; any financial information relating to any JC Company’s income, budgeting, cost structures, expenses, profits, and general financial standing), businesses, equity and debt offerings and other financings, mergers and acquisitions, and other business transactions that derives value from not being generally known to other persons, including, but not limited to, technical or nontechnical data, formulas, patterns, compilations (including, without limitation, compilations of customers, suppliers, distributors, financing sources, and investors information), programs (including, without limitation, computer programs and software), devices, methods, techniques, drawings, processes, procedures, financial data (including, without limitation, financial statements, financial models, budgets, and forecasts), lists of actual or potential customers, suppliers, distributors, financing sources, and investors (including, without limitation, identifying information about such parties), business, strategy, and marketing plans and materials, negotiation strategies and positions, pricing and cost strategies, licensing strategies, advertising campaigns, training, policy, and procedure manuals, and other aspects of the businesses, without regard to form and whether or not reduced to writing.  “Confidential Information” shall not include information that: (i) was known to you at the time of receipt from the Company or another JC Company, so long as such information was not acquired directly or indirectly from the Company or any other JC Company or any person or entity who owed an obligation of confidentiality to the Company or any other JC Company whether by contract or otherwise; (ii) is or becomes publicly known through no act or fault of yours; or (iii) was received by you from a third party having the legal right to transmit the same; provided, however, that a combination of features shall not be deemed to be within the foregoing exceptions merely because individual features are in the public domain or otherwise within such exceptions, as previously described, unless the combination itself is in the public domain or otherwise entirely within any one such exception.

 

11.          Upon your Termination, or at any other time at the Company’s request, you agree to and shall promptly deliver to the Company all of its or any JC Company’s materials, documents, plans, records, notes, drawings, or papers and any copies thereof (whether electronic or hard copy) that may be in your possession or under your control, including in particular all notes or records you have relating to any Confidential Information.

 

12.          (a)           You agree that any and all Inventions (as hereinafter defined) during your employment with the Company or any other JC Company (including your employment under the Prior Agreements) shall be the sole and exclusive property of the Company.  You shall, with respect to any Invention: (i) keep current, accurate, and complete records, which shall belong to

 

5

 

the Company and be kept and stored on the Company’s premises; (ii) promptly and fully disclose the existence and describe the nature of the Invention to the Company  in writing (and without request); (iii) assign (and you hereby assign) to the Company all of your right, title, and interest in and to the Invention, any applications you make for patents or copyrights in any country, and any patents or copyrights granted to you in any country; and (iv) acknowledge and deliver promptly to the Company any written instruments, and perform any other acts necessary in the Company’s opinion to preserve property rights in the Invention against forfeiture, abandonment, or loss and to obtain and maintain letters patent and/or copyrights on the Invention and to vest the entire right and title to the Invention in the Company.  You also agree to perform promptly (without charge to the Company but at the expense of the Company) all acts as may be necessary in the Company’s opinion to preserve all patents and/or copyrights granted upon the Inventions.

 

(b)           You are hereby notified that this Section 12 does not apply to any inventions for which no equipment, supplies, facility, or trade secrets of the Company or any other JC Company is used and which is developed on your own time, and (i) which does not relate (A) directly to the business of the Company or any other JC Company or (B) to the Company’s or any other JC Company’s actual or demonstrably anticipated research or development, or (ii) which does not result from any work performed by you for the Company or any other JC Company.

 

(c)         If, in the course of your employment with the Company or any other JC Company (including your employment under the Prior Agreements), you use, provide, or incorporate into any goods, services, systems, or operations of the Company or any other JC Company any intellectual property owned by you or in which you have an interest, then you hereby grant the Company, under all of your intellectual property and proprietary rights, the following worldwide, non-exclusive, perpetual, irrevocable, royalty-free, and fully paid-up license and rights: (i) to make, use, copy, modify, and create derivative works of such intellectual property; (ii) to publicly perform or display, import, broadcast, transmit, distribute, license, offer to sell, and sell, rent, lease, or lend copies of such intellectual property (and derivative works thereof); and (iii) to sublicense to third parties the foregoing rights, including, without limitation, the right to sublicense to further third parties.

 

(d)           The terms of the assignment in this Section 12 as to any Invention may be subject to a separate assignment agreement between you and the Company.  The existence of such an assignment agreement shall have no effect on the assignment pursuant to this letter agreement of any other Invention.

 

(e)           To the extent that any Invention qualifies as “work made for hire” as defined in 17 U.S.C. § 101 (1976), as amended, such Invention will constitute “work made for hire” and, as such, will be the exclusive property of the Company.

 

(f)            In the event of any dispute, arbitration, or litigation concerning whether an invention, discovery, improvement, or idea made or conceived by you is the property of the Company, such invention, discovery, improvement, or idea shall be presumed the property of the Company and you will bear the burden of establishing otherwise.

 

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(g)           For purposes of this letter agreement, “Inventions” means any inventions, discoveries, improvements, and ideas, whether or not in writing or reduced to practice and whether or not patentable or copyrightable, made, authored, or conceived by you in connection with your employment with the Company or any other JC Company (including your employment under the Prior Agreements), whether by your individual efforts or in connection with the efforts of others.

 

(h)           You acknowledge and agree that the Company will suffer irreparable damage if you violate or threaten to violate the terms of this Section 12, and that such damage would be difficult to quantify, and it is therefore agreed that, in the event of a breach or threatened breach of this Section 12, the Company shall be entitled to injunctive relief, in addition to all other legal and equitable remedies available to it, without the necessity of posting a bond or other security.

 

13.          You acknowledge and agree that: (a) the Company is the holding company of several businesses (including, without limitation, the carhaul business of Jack Cooper Transport Company, Inc. and its subsidiaries and the logistics business of Jack Cooper Logistics, LLC and its subsidiaries), and its primary operations are focused on the management of such businesses; (b) in your role as an executive officer of the Company you will have executive authority and responsibility over not just the Company and its business but also over the other JC Companies and their businesses; and (c) you have had (as an employee and/or officer of one or more JC Companies) and will continue to have (as an employee and/or officer of the Company and/or other JC Companies) access to private, proprietary, secret, or confidential documents and information of the Company and the other JC Companies.  Because of these circumstances and in consideration for your continued employment hereunder, you acknowledge and agree that the restrictions contained in this letter agreement are necessary for the protection of the business and goodwill of the Company and the other JC Companies, that each of the restrictive covenants in this letter agreement is reasonable in time, scope of activities, geographic scope, and otherwise to protect the legitimate business interests and goodwill of the Company and the other JC Companies, and that any breach of the restrictive covenants in this letter agreement is likely to cause the Company and/or one or more of the other JC Companies substantial and irrevocable damage that is difficult to measure.  Therefore, in the event of any such breach or threatened breach of this letter agreement, you agree that the Company and any other JC Company, in addition to such other remedies that may be available at law or in equity, shall have the right to seek specific performance of the provisions of this letter agreement and shall have the right to seek an injunction without posting a bond from a court restraining such a breach or threatened breach, and you hereby waive the adequacy of a remedy at law as a defense to such relief.  You further agree that, if any restriction set forth in this letter agreement is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time, over too great a range of activities, or in too broad a geographic area, then it shall be interpreted to extend only over the maximum period of time, range of activities, or geographic area as to which it may be enforceable.

 

14.          This letter agreement shall be governed by and construed in accordance with the laws of the state of Georgia, without giving effect to its choice of law provisions.  Each party hereto irrevocably consents to the exclusive jurisdiction of the federal and state courts located in

 

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Fulton County, Georgia for all purposes in connection with any action or proceeding which arises out of or relates to this letter agreement.  This letter agreement amends and restates all the Prior Agreements and constitutes the entire agreement between the parties hereto and supersedes all prior understandings, whether oral or written.  This letter agreement may be executed in two or more counterparts and by facsimile or PDF, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  The invalidity or unenforceability of any provision of this letter agreement shall not render invalid or unenforceable any other provision hereof.  This letter agreement may not be modified or amended except by a writing duly executed and delivered by the parties hereto.  Neither this letter agreement nor any of the rights, interests, or obligations hereunder shall be assigned, in whole or in part, by any party hereto without the prior written consent of the other party hereto.

 

Please accept this offer of continued employment by signing below and returning a sign copy to me at your earliest convenience.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
Jack   Cooper Holdings Corp.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Sarah Amico
    
	
 
    	
 
    	
Name:   Sarah Amico
    
	
 
    	
 
    	
Title:  Chairperson
    
	
 
    	
 
    
	
ACCEPTED   AND AGREED TO AS OF
    	
 
    
	
THE   EFFECTIVE DATE:
    	
 
    
	
 
    	
 
    
	
/s/ T. Michael Riggs
    	
 
    	
 
    
	
Name:  T. Michael Riggs
    	
 
    	
 
    

 

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Exhibit A

 

Confidential Separation Agreement and General Release

 

This Confidential Separation Agreement and General Release (this “Agreement”) is made and entered into as of the       day of           , 20    to be effective (subject to Section 14 (Revocation)) as of the Effective Date (as defined in Section 14 (Revocation)), by and between: (i)                , its divisions, subdivisions, subsidiaries, parents, affiliates, benefits plans, successors, and assigns (hereinafter collectively referred to as the “Company”); and (ii)                , an individual resident of the State of                 (hereinafter referred to as “Employee”).

 

W I T N E S S E T H:

 

WHEREAS, Employee has been employed by the Company pursuant to that certain Offer of Employment Letter, dated               (the “Offer Letter”);

 

WHEREAS, Employee’s employment with the Company has been terminated as of the Effective Date; and

 

WHEREAS, this Agreement sets forth the parties’ mutual understanding concerning the terms and conditions of the termination of Employee’s employment with the Company;

 

NOW, THEREFORE, in consideration of the premises, which are incorporated and made part of this Agreement, the covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Company and Employee agree as follows:

 

1.             Confidentiality.  Employee agrees not to disclose the terms of this Agreement, to avoid direct or indirect references (whether by his actions or his words) to the terms of this Agreement, not to initiate discussions, correspondence, or other communications regarding the terms of this Agreement, and not to show this Agreement to, or discuss its contents with, any person other than his spouse, his attorneys, his accountants, the Internal Revenue Service, the taxing authority of any state to which Employee is obligated to report income information, or such other persons with whom Employee may otherwise be required by law to communicate concerning this Agreement’s contents.  Employee understands and acknowledges that the foregoing is a material term of this Agreement.

 

2.           Separation Payments.

 

(a)           Subject to and conditioned upon the terms and conditions of this Agreement, the Company shall cause to be paid to Employee the following payments (the “Section 2 Payments”): [Describe payments to which Employee would be entitled based on Offer Letter and circumstances of termination.]

 

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(b)           Employee understands and acknowledges that the payment of the Section 2 Payments shall be reported on an IRS Form W-2 and shall be subject to all deductions and withholdings required by law.

 

(c)           Notwithstanding anything herein to the contrary, the Section 2 Payments are expressly subject to and conditioned upon Employee’s full and complete performance of all the conditions, agreements, and other obligations set forth in this Agreement.  Should Employee breach or fail to adhere to any of the provisions of this Agreement, then the Company’s obligation to make any of the outstanding Section 2 Payments shall completely cease and be otherwise completely excused and the Company shall be entitled to pursue all other remedies at law or in equity.

 

(d)           Employee acknowledges and agrees that he would not have received the Section 2 Payments but for his execution of this Agreement and his full and complete performance of the provisions of this Agreement.

 

3.           Termination of Employment.

 

(a)           Employee and the Company agree that Employee’s termination of employment occurred effective as of the Effective Date.

 

(b)           Employee acknowledges and agrees that, except for the Section 2 Payments, he shall not receive any compensation, bonuses, benefits, or other consideration from the Company in connection with his employment or termination therefrom, and he waives all rights to such payments from the Company.

 

(c)           Employee agrees to waive any rights to reinstatement or to apply for reemployment with the Company (including, without limitation, any and all of its past, present, or future parent, subsidiary, or affiliated companies or divisions).  Employee acknowledges and agrees that any application for reinstatement or future employment with the Company (including, without limitation, any and all of its past, present, or future parent, subsidiary, or affiliated companies or divisions) will be considered void from its inception, and may be summarily rejected by the Company without explanation or liability.

 

(d)           For the avoidance of doubt, the parties hereto acknowledge and agree that nothing in this Agreement (including, without limitation, Section 3(b) above and Section 5 (Release and Waiver of Claims) below) shall affect: (i) the terms and conditions or enforceability of that certain Amended and Restated Indemnification Agreement, dated May 19, 2014 and with a retroactive effective date of November 29, 2010, between Employee and Jack Cooper Holdings Corp., or similar indemnification rights in favor of Employee provided under any charters, bylaws, or other corporate governance documents; or (ii) the rights of Employee as a stockholder of any Releasee (as hereinafter defined), including, without limitation, any rights under any charters, bylaws, stockholders agreements, or other corporate governance documents affecting stockholders of Releasees.

 

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4.           Protective Covenants.  Employee hereby acknowledges that: (a) Employee has had access to proprietary documents and information regarding the Company’s customers, suppliers, services, methods of operation, sales, pricing, and the specialized business needs of the Company’s customers and suppliers, which documents and information are highly confidential; and (b) the Company’s relationships with its financing sources, customers, suppliers, and employees are among the Company’s most important assets and business interests.  Because of this and in exchange for the consideration outlined herein, Employee acknowledges and agrees that Employee shall strictly observe and abide by the separate and independent restrictive covenants in the Offer Letter, including, without limitation, the covenants concerning non-compete, non-solicitation of customers, non-disclosure of Confidential Information (as defined in the Offer Letter), and assignment of inventions and ideas set forth in the Offer Letter.

 

5.           Release and Waiver of Claims.

 

(a)           Full Release and Waiver of All Claims.  As a material inducement to the Company to enter into this Agreement, Employee, on behalf of himself and his affiliates and their respective shareholders, LLC members, successors, assignees, directors, officers, LLC managers, employees, agents, representatives, attorneys, beneficiaries, heirs, personal representatives, and fiduciaries (collectively, the “Releasors”), hereby knowingly, voluntarily, irrevocably, unconditionally, and absolutely releases, waives, relinquishes, remises, acquits, and forever discharge the Company and each of the Company’s past, present, or future shareholders, LLC members, employees, representatives, attorneys, divisions, subdivisions, parent companies, subsidiaries, affiliates, agents, directors, officers, LLC managers, executives, predecessors, successors and assigns, and all persons acting by, through, under or in concert with any of them (collectively, the “Releasees”) or any of them individually, from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages, losses, actions, causes of action, suits, rights, demands, debts, costs, and expenses (including attorneys’ fees and legal expenses), of any nature whatsoever, whether known or unknown, absolute, accrued, contingent, or otherwise, which Releasors now have, have had, or may hereafter claim to have had against the Releasees by reason of any matter, act, omission, cause, or event that (i) has occurred up to the time of the Effective Date and (ii) relates to or arises from Employee’s employment with the Company or his separation therefrom (hereinafter collectively referred to as “Claim” or “Claims”).

 

Employee understands that this release and waiver includes, without limitation: (i) any and all Claims related or in any manner incidental to his employment with the Company and separation therefrom; (ii) any and all Claims and rights under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, 42 U.S.C. § 1981, the Americans with Disabilities Act, the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Family and Medical Leave Act, the Worker Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. §§ 2101 et seq., and any other federal, state, or local law, rule, or regulation relating to the employment relationship, each as amended; (iii) any and all Claims arising under the common law; (iv) any and all alleged breaches of duty arising out of any statute, contract, or tort, including, but not limited to, wrongful discharge or any action otherwise based on any policy or agreement; and (v) any and all possible or alleged Claims for back pay, bonuses, fringe or employee benefits, leaves of absence, interest, compensatory or punitive damages, salary, any other compensation,

 

11

 

commissions, expenses, insurance, stock, stock options, or Claims arising out of any other terms and conditions of employment.

 

(b)           No Filed or Pending Claims.  Employee represents and warrants that he has not filed and will not file any Claims against the Company or any other Releasee with any state, federal, or local agency or court based on any matter, act, omission, cause, or event that has occurred up to the Effective Date, nor does Employee have any pending request with the Company for leave, FMLA leave, or other benefit.

 

(c)           No Assignment of Claims; Indemnification.  Employee represents and warrants that he has not assigned and will not assign to any other person, and that no other person is entitled to assert on his behalf, any above-referenced released Claims.  Employee further agrees that, if any such assignment has occurred, he shall indemnify and hold harmless the Releasees from and against any and all Claims that arise out of such assignment.

 

6.           Covenant Not To Sue.  Employee hereby covenants and agrees that he will not file or permit to be filed on his behalf any action, suit, or administrative proceeding, or take any other action that seeks, to pursue or enforce any Claim which he has released herein.

 

7.           Negotiated Agreement.  This Agreement shall not be construed against any party on the grounds that such party drafted this Agreement.  This Agreement shall be interpreted in accordance with the plain meaning of its terms, as though drafted equally by the parties, and not strictly for or against either of the parties hereto.

 

8.           Survival of Security and Confidentiality Agreements.  Notwithstanding anything herein to the contrary and in addition to any agreements that Employee has signed with the Company concerning secrecy, security, new products, ideas, inventions, and confidential data (including, without limitation, the Offer Letter), which agreements shall remain in full force and effect and shall survive this Agreement, Employee agrees to return immediately to the Company and shall not take, copy, use, or reveal to any person in any form or manner, any documents or information which the Company deems confidential or proprietary, including, but not limited to, lists of customers or potential customers, financial information, business practices, business and strategic plans, and other similar confidential materials or information.

 

9.           Non-Admission of Liability.  This Agreement shall not be deemed in any manner an admission, finding, or indication for any purpose whatsoever that the Company has acted contrary to law or violated the rights of Employee or any other person at any time.  Further, this Agreement shall not be construed in any manner as an admission by the Company that it is violating any law, policy, or procedure, or acted wrongfully with respect to Employee or any other person, or that Employee has any rights whatsoever against the Company.  Employee acknowledges that the Company specifically disclaims any liability to him arising from his employment relationship with the Company.

 

10.         Offset.  Employee authorizes the Company to offset from the Section 2 Payments any amount(s) otherwise payable to him under this Agreement or otherwise, any amount(s) of any loans or advances not repaid by him, the replacement cost (as of the date of replacement) of

 

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any Company property not returned by him, and any amount of any other debt or obligation owed by him to the Company.

 

11.         Severability.  Should any agreement provision (or subpart thereof) be declared or be determined by any court of competent jurisdiction to be wholly or partially illegal, invalid, or unenforceable, such provision (or subpart thereof) shall be severed from the remaining provisions (or subparts thereof), with any illegal or unenforceable provision (or subpart thereof) not affecting the remainder of this agreement, which shall continue at all times to be valid and enforceable.

 

12.         Governing Law.  This Agreement shall be interpreted, enforced, and governed under the laws of the State of Georgia, without giving effect to its choice of law provisions.

 

13.         Modification; Non-Waiver.  The terms of this Agreement may not be amended, modified, cancelled, terminated, or waived except by a written instrument executed by Employee and the Company, or in the case of waiver, the party to be charged with such waiver.  The failure of the Company to insist upon or enforce strict performance of any provision of this Agreement or to exercise any right or remedies will not be construed as a waiver by the Company to assert or rely upon such provision, right, or remedy in that or any other instance.

 

14.         Revocation.  Employee acknowledges and agrees that he has had twenty-one (21) calendar days from the date of receipt of this Agreement to sign and accept it.  The parties agree this Agreement shall not be effective until the expiration of seven (7) calendar days after it is executed by Employee if Employee has not revoked his acceptance hereof, and during that seven (7) day period Employee may revoke his acceptance of this Agreement.  If Employee chooses to revoke his acceptance of this Agreement, he must so notify the Company in writing, marked “Personal and Confidential,” delivered to the General Counsel at                        , no later than seven (7) calendar days after he signs this Agreement.  Employee acknowledges and agrees that, if not revoked, this Agreement shall become final and binding upon expiration of said seven (7) calendar day period and the “Effective Date” of this Agreement shall be the first day following said seven (7) day period (for example, if Employee executes this Agreement on August 1, 2015, and does not revoke his acceptance, the Effective Date will be August 8, 2015).

 

15.         Employee Assurances.

 

(a)           EMPLOYEE AFFIRMS THAT HE HAS CAREFULLY READ THIS ENTIRE AGREEMENT.  HE ATTESTS THAT HE POSSESSES SUFFICIENT EDUCATION AND/OR EXPERIENCE TO FULLY UNDERSTAND THE EXTENT AND IMPACT OF ITS PROVISIONS.

 

(b)           EMPLOYEE ATTESTS THAT HE HAS BEEN AFFORDED THE OPPORTUNITY TO CONSIDER THIS AGREEMENT FOR A PERIOD OF TWENTY-ONE (21) DAYS.  EMPLOYEE FURTHER ATTESTS THAT HE HAS BEEN ADVISED TO DISCUSS THIS AGREEMENT WITH AN ATTORNEY OF HIS CHOICE.

 

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(c)           EMPLOYEE AFFIRMS THAT HE IS FULLY COMPETENT TO EXECUTE THIS AGREEMENT, AND THAT HE DOES SO VOLUNTARILY AND WITHOUT ANY COERCION, UNDUE INFLUENCE, THREAT, OR INTIMIDATION OR ANY KIND OR TYPE.

 

16.          Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute together one and the same Agreement.  Facsimile copies and photocopies of signatures shall be accepted as originals.

 

[Signatures Follow on Next Page]

 

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[Signature Page to Confidential Separation Agreement and General Release]

 

IN WITNESS WHEREOF, the undersigned parties have executed this Agreement as a sealed instrument to be effective as of the Effective Date.

 

	
 
    	
EMPLOYEE:
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Date:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
				

 

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