Document:

ex_10d3.htm

EXHIBIT 10.3

PROMISSORY NOTE

	
Principal

$5,500,000.00

	
Loan Date

08-24-2012

	
Maturity

09-01-2022

	
Loan No

2066

	
Call/Coll

0080

	
Account

	
Officer

DMD

	
Initials

	
References in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item. Any item above containing “***” has been omitted due to text length limitations.

Borrower:             YUMA HOSPITALITY PROPERTIES
LIMITED                                                                                                       Lender:  1ST Bank
Yuma

PARTNERSHIP, AN ARIZONA
LIMITED                                                                                                                                 2799 S.
4th Avenue

PARTNERSHIP A.K.A. YUMA
HOSPITALITY                                                                                                                         Yuma, AZ  85364

PROPERTIES,
LTD                                                                                                                                                                                            
(928) 783-3334

1625 E. NORTHERN AVENUE, STE #105

PHOENIX, AZ  85020

 

 

Principal
Amount:  $5,500,000.00                                                                                                                          Date of Note:  August 24, 2012

PROMISE TO PAY. YUMA HOSPITALITY PROPERTIES LIMITED PARTNERSHIP, AN ARIZONA LIMITED PARTNERSHIP A.K.A. YUMA HOSPITALITY PROPERTIES, LTD (“Borrower”) promises to pay to 1st Bank Yuma (“Lender”), or order, in lawful money of the United States of America, the principal amount of Five Million Five Hundred Thousand & 00/100 Dollars ($5,500,000.00), together with interest on the unpaid principal balance from August 24, 2012, until paid in full.

PAYMENT. Borrower will pay this loan in full immediately upon Lender’s demand. If no demand is made, subject to any payment changes resulting from changes in the Index, Borrower will pay this loan in 119 regular payments of $32,418.72 each and one irregular last payment estimated at $4,112,497.66. Borrower’s first payment is due October 1, 2012, and all subsequent payments are due on the same day of each month after that. Borrower’s final payment will be due on September 1, 2022, and will be for all principal and all accrued interest not yet paid. Payments include principal and interest. Unless otherwise agreed or required by applicable law, payments will be applied first to any
accrued unpaid interest; then to principal; then to any unpaid collection costs; and then to any late charges. Borrower will pay Lender at Lender’s address shown above or at such other place as Lender may designate in writing.

 

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent index which is the Wall Street Journal Prime Rate (the “Index”). The Index is not necessarily the lowest rate charged by the Lender on its loans. If the Index becomes unavailable during the term of this loan, Lender may designate a substitute index after notifying Borrower. Lender will tell Borrower the current Index rate upon Borrower’s request .The interest rate change will not occur more often than each Day. Borrower understands that Lender may make loans based on other rates as well.
The Index currently is 3.250% per annum. Interest on the unpaid principal balance of this Note will be calculated as described in the “INTEREST CALCULATION METHOD” paragraph using a rate of 1.000 percentage point over the Index, adjusted if necessary for any minimum and maximum rate limitations described below, resulting in an initial rate of 5.000% per annum based on a year of 360 days. NOTICE: Under no circumstances will the interest rate on this Note be less than 5.000% per annum or more than the maximum rate allowed by applicable law. Whenever increases occur in the interest rate, Lender, at its option, may do one or more of the following: (A) increase Borrower’s payments to ensure Borrower’s loan will pay off by its original final maturity date, (B) increase Borrower’s payments to cover accruing
interest, (C) increase the number of the Borrower’s payments, and (D) continue Borrower’s payments at the same amount and increase Borrower’s final payment.

 

INTEREST CALCULATION METHOD. Interest on this Note is computed on a 365/360 basis; that is, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. All interest payable under this Note is computed using this method.

 

EFFECTIVE RATE. Borrower agrees to an effective rate of interest that is the rate specified in this Note plus any additional rate resulting from any other charges in the nature of interest paid or to be paid in connection with this Note.

 

PREPAYMENT PENALTY. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Upon prepayment of this Note, Lender is entitled to the following prepayment penalty: In the event of prepayment, in whole or in part, a prepayment penalty rate shall be assessed as follows:

	
1)  

	
If the prepayment occurs on or before the first anniversary date of this Promissory Note, the prepayment penalty will be two percent (2%) of the principal amount prepaid.

	
2)  

	
If the prepayment occurs after the first anniversary date, but on or before the second anniversary date, the prepayment penalty will equal one percent (1%) of the principal amount prepaid.

Prepayment penalty shall not apply if the prepayment occurs after the second anniversary date. Except for the foregoing, Borrower may pay all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower’s obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in Borrower’s making fewer payments. Borrower agrees not to send Lender payments marked “paid in full”, “without recourse”, or similar language. If Borrower sends such a payment, Lender may accept
it without losing any of Lender’s rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes “payment in full” of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: 1st Bank Yuma, 2799 S. 4th Avenue, Yuma, AZ 85364.

LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased to 18.000% per annum based on a year of 360 days. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law.

 

  

  

  

EXHIBIT 10.3

PROMISSORY NOTE

	 Loan No: 2066              	 (Continued)  	   Page 2

 

 

DEFAULT. Each of the following shall constitute an event of default (“Event of Default”) under this Note:

Payment Default. Borrower fails to make any payment when due under this Note.

Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower.

Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower’s property or Borrower’s ability to repay this Note or perform Borrower’s obligations under this Note or any of the related documents.

Environmental Default. Failure of any party to comply with or perform when due any term, obligation, covenant or condition contained in any environmental agreement executed in connection with any loan.

False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower’s behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter.

Death or Insolvency. The dissolution or termination of Borrower’s existence as a going business or the death of any partner, the insolvency of Borrower, the appointment of a receiver for any part of Borrower’s property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and
deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.

Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note.

Events Affecting General Partner of Borrower. Any of the preceding events occurs with respect to any general partner of Borrower or any general partner dies or becomes incompetent.

Change in Ownership. The resignation or expulsion of any general partner with an ownership interest of twenty-five percent (25%) or more in Borrower.

Adverse Change. A material adverse change occurs in Borrower’s financial condition, or Lender believes the prospect of payment or performance of this Note is impaired.

Insecurity. Lender in good faith believes itself insecure.

Cure Provisions. If any default, other than a default in payment is curable and if Borrower has not been given a notice of a breach of the same provision of this Note within the preceding twelve (12) months, it may be cured if Borrower, after Lender sends written notice to Borrower demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days, immediately initiates steps which Lender deems in Lender’s sole discretion to be sufficient to cure default and thereafter continues and completes all reasonable and necessary steps sufficent to produce compliance as soon as reasonably
practical.

LENDER’S RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount.

ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender’s attorneys' fees and Lender’s legal expenses, whether or not there is a lawsuit, including attorneys' fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. However, Borrower will only pay attorneys' fees of an attorney not Lender’s salaried employee, to whom the matter is referred after Borrower’s default. If not prohibited by applicable law,
Borrower also will pay any court costs, in addition to all other sums provided by law.

JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. (Initial Here   /s/JW    )

GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Arizona without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of Arizona.

CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender’s request to submit to the jurisdiction of the courts of Yuma County, State of Arizona.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $20.00 if Borrower makes a payment on Borrower’s loan and the check or preauthorized charge with which the Borrower pays is later dishonored.

 

  

  

  

EXHIBIT 10.3

PROMISSORY NOTE

	 Loan No: 2066              	 (Continued)  	   Page 3

 

 

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower’s accounts with Lender (whether checking, savings, or some other account). This  includes  all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts,
and, at Lender’s option, to administratively freeze all such accounts to allow Lender to protect Lender’s charge and setoff rights provided in this paragraph.

COLLATERAL. Borrower acknowledges this Note is secured by the following collateral described in the security instruments listed herein:

	
(A)  

	
a  Deed of Trust dated August 24, 2012, to a trustee in favor of Lender on real property located in YUMA County, State of Arizona.

	
(B)  

	
inventory and equipment described in a Commercial Security Agreement dated August 24, 2012.

ARBITRATION. Borrower and Lender agree that all disputes, claims and controversies between them whether individual, joint, or class in nature, arising from this Note or otherwise, including without limitation contract and tort disputes, shall be arbitrated pursuant to the Rules of the American Arbitration Association in effect at the time the claim is filed, upon request of either party. No act to take or dispose of any collateral securing this Note shall constitute a waiver of this arbitration agreement or be prohibited by this arbitration agreement. This includes, without limitation, obtaining injunctive relief or a temporary restraining order; invoking a power of sale under any deed of trust or
mortgage; obtaining a writ of attachment or imposition of a receiver; or exercising any rights relating to personal property, including taking or disposing of such property with or without judicial process pursuant to Article 9 of the Uniform Commercial Code. Any disputes, claims, or controversies concerning the lawfulness or reasonableness of any act, or exercise of any right, concerning any collateral securing this Note, including any claim to rescind, reform, or otherwise modify any agreement relating to the collateral securing this Note, shall also be arbitrated, provided however that no arbitrator shall have the right or the power to enjoin or restrain any act of any party. Judgment upon any award rendered by any arbitrator may be entered in any court having jurisdiction. Nothing in this Note shall preclude any party from seeking equitable relief from a court of competent
jurisdiction. The statute of limitations, estoppel, waiver, laches, and similar doctrines which would otherwise be applicable in an action brought by a party shall be applicable in any arbitration proceeding, and the commencement of an arbitration proceeding shall be deemed the commencement of an action for these purposes. The Federal Arbitration Act shall apply to the construction, interpretation, and enforcement of this arbitration provision.

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower’s heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns.

NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Borrower may notify Lender if Lender reports any inaccurate information about Borrower’s account(s) to a consumer reporting agency. Borrower’s written notice describing the specific inaccuracy(ies) should be sent to Lender at the following address: 1st Bank Yuma, 2799 S. 4th Avenue, Yuma, AZ 85364.

GENERAL PROVISIONS. This note is payable on demand. The inclusion of specific default provisions or rights of Lender shall not preclude Lender’s right to declare payment of this Note on its demand.  If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in
writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party, partner, or guarantor or collateral; or impair, fail to realize upon or perfect Lender’s security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

BORROWER:

YUMA HOSPITALITY PROPERTIES LIMITED PARTNERSHIP, AN ARIZONA LIMITED PARTNERSHIP A.K.A. YUMA HOSPITALITY PROPERTIES, LTD

INNSUITES HOSPITALITY TRUST, General Partner of YUMA HOSPITALITY PROPERTIES LIMITED PARTNERSHIP, AN ARIZONA LIMITED PARTNERSHIP A.K.A. YUMA HOSPITALITY PROPERTIES, LTD

By: /s/ James F. Wirth                                                           

      JAMES F. WIRTH, Trust’s Chairman and Chief Executive Officer of

     INNSUITES HOSPITALITY TRUSTExhibit 10.1 - Consulting Agreement dated December 13, 2012

Exhibit 10.1

RYDER SYSTEM, INC. 
CONSULTING AGREEMENT
THIS CONSULTING SERVICES AND NON-COMPETITION AGREEMENT (this “Agreement”) is entered into as of December 13, 2012 by and between Ryder System, Inc., a Florida corporation (the “Company”), and Gregory T. Swienton (“Consultant”).  
BACKGROUND
WHEREAS, Consultant served the Company for approximately 13 years primarily as the Company’s Chief Executive Officer and Chairman of the Company’s Board of Directors (the “Board”); 
WHEREAS, Consultant has expressed his intention to retire from his position as the Company’s Chief Executive Officer effective January 1, 2013 and has agreed to assume the role of Executive Chairman from that date until May 3, 2013 (“Employment Termination Date”) at which time he will retire from the Company and the Board;
WHEREAS, in order to assure and retain the availability of Consultant’s experience and expertise pertaining to the Company and its product offerings, the industries in which it operates and the contacts and business relationships which Consultant established prior to his retirement, and to ensure that following his retirement, Consultant will not engage in certain activities that are in competition with the Company, the Company desires to engage Consultant in a post-retirement consulting relationship as more fully described in this Agreement; and 
WHEREAS, Consultant desires to accept such engagement and perform such Services for the Company, on the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth, and intending to be legally bound hereby, the Company and Consultant hereby agree as follows:
1.Term.  The term of this Agreement shall begin on May 4, 2013 and shall continue until April 30, 2015, unless terminated earlier pursuant to Section 7 below (the “Term”).  
2.    Services to be Provided.  During the Term of this Agreement, Consultant shall provide services in an advisory capacity to both management and the Board of Directors with respect to the strategy, management and operations of the Company and its affiliates (the “Services”).  Consultant will provide such Services as may be requested by the then current Chief Executive Officer of the Company (the “CEO”) or such person(s) as the CEO shall designate.  Consultant shall perform the Services at the Company’s corporate offices or his home office, and will travel as needed to perform the Services.  

The Services under this Agreement shall not prevent Consultant from providing services to other entities, consistent with the covenants set forth in Section 8 of this Agreement.
3.    Compensation; No Benefits.  
(a)    Consulting Fee.  As compensation for Consultant’s performance of the Services under this Agreement during the Term, the Company shall pay Consultant a monthly fee of (i) $75,000 for each of the twelve months between May 4, 2013 and April 2014 and (ii) $50,000 for each of the twelve months between May 2014 and April 2015], which, in each case, shall be paid to Consultant within fifteen days following each completed month of service.   
(b)    Expenses.  The Company shall reimburse Consultant for all reasonable business expenses incurred by Consultant in connection with the performance of the Services in accordance with the Company’s expense reimbursement policies in effect from time to time. 
(c)    No Benefits.  Consultant acknowledges that, for purposes of this Agreement and any and all Services to be provided during the Term of this Agreement, he shall not be an employee of Company and, subject to the provisions of Section 3(d),  will not be entitled to participate in or receive any benefit or right as a Company employee under any Company employee benefit or executive compensation plan, including, without limitation, employee insurance, pension, savings, medical, health care, fringe benefit, stock option, equity compensation, deferred compensation or bonus plans (the “Company Benefit Plans”).  If for any reason Consultant’s status is re-characterized by a third party to constitute employee status, Consultant shall not be eligible to participate in or receive any benefit or right as a Company employee under any Company Benefit Plan.
(d)    Post Retirement Benefits.  Notwithstanding the foregoing and for the avoidance of doubt, nothing in this Section 3 shall affect the Company’s post-retirement obligations to Consultant under any Company Benefit Plan as of the Employment Termination Date, which the parties acknowledge are all set forth on Exhibit A hereto.    
4.    Independent Contractor; Performance.  For purposes of this Agreement and all Services to be provided hereunder, Consultant shall not be considered a partner, co-venturer, agent, employee, or representative of the Company, but shall remain in all respects an independent contractor, and neither party shall have any right or authority to make or undertake any promise, warranty or representation, to execute any contract, or otherwise to assume any obligation or responsibility in the name of or on behalf of the other party.  Consultant shall perform all Services in a professional manner, consistent with industry standards and the Company’s goals and Principles of Business Conduct or any analogous code of ethics or similar policy.  
5.    Tax Obligations.  Consultant shall be responsible for all income taxes, employment taxes and workers’ compensation insurance associated with the compensation received under this Agreement and agrees that the Company will not 

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withhold or pay any of the foregoing in connection with Consultant’s Services to the Company.  
6.    Inventions and Improvements.  Consultant acknowledges that all ideas, discoveries, inventions and improvements which are made, conceived or reduced to practice by Consultant and every item of knowledge relating to the Company’s business interests (including potential business interests) gained by Consultant during his engagement with the Company, whether as an employee or independent contractor, are the sole and absolute property of the Company, and Consultant shall promptly disclose and hereby irrevocably assigns all his right, title and interest in and to all such ideas, discoveries, inventions, improvements and knowledge to the Company for its sole use and benefit, without additional compensation, and shall communicate to the Company, without cost or delay, and without publishing the same, all available information relating thereto. Consultant also hereby waives all claims to moral rights in any such ideas, discoveries, inventions, improvements and knowledge. Consultant shall, upon request of the Company, and without further compensation by the Company but at the expense of the Company, at any time during or after the termination of Services hereunder, sign all instruments and documents requested by the Company and otherwise cooperate with the Company and take any actions which are or may be necessary in furtherance of the foregoing.
7.    Termination.  
(a)    Termination.  Notwithstanding the provisions of Section 1, the Company may terminate this Agreement and Consultant’s Services hereunder at any time for Cause (as defined below).    Consultant may terminate this Agreement and Consultant’s Services at any time by providing 180 days prior written notice to the Company.  In the event of any termination of this Agreement and Consultant’s Services hereunder by Consultant for any reason or by the Company for Cause, the Company shall be responsible for any compensation owed to Consultant under Section 3 for any Services rendered prior to the effective date of such termination.  Within five days after any termination of this Agreement, Consultant shall deliver to the Company all Company property, as described in Section 7(b) below.  For purposes of this Agreement, “Cause” shall mean: (i) fraud, misappropriation or embezzlement by Consultant against the Company or any of its subsidiaries and/or affiliates;  (ii) conviction of or plea of guilty or nolo contendere to a felony; (iii) conviction of or plea of guilty or nolo contendere to a misdemeanor involving moral turpitude or dishonesty; (iv) material breach by Consultant of the provisions of Section 8 of this Agreement (Restrictive Covenants); (v) willful failure to perform the Services; (vi) engaging in conduct that would be expected to materially harm the Company’s business or reputation; (vii) Consultant’s refusal to assume the duties of Chief Executive Officer if requested pursuant to Section 7(c) below; and (viii) any other activity which would constitute grounds for termination for cause by the Company or its subsidiaries or affiliates, including but not limited to material violations of the Company’s Principles of Business Conduct or any analogous code of ethics or similar policy.   In addition to the foregoing, the Company shall have the right, at any time, to 

    3

terminate this Agreement and Consultant’s Services hereunder without Cause, provided, that in such event the Company shall be responsible for (i) any compensation owed to Consultant under Section 3 for any Services rendered prior to the effective date of such Termination and (ii) the monthly fee set forth in Section 3(a) hereof for all months remaining in the Term commencing in the month following the month in which such termination occurs to be paid monthly as set forth in Section 3(a).
(b)    Return of Company Property.  Upon termination of the Term for any reason, Consultant agrees to promptly return all Company property that has come into his possession or control, including, without limitation, computer equipment (including, without limitation, computer hardware, laptop and other computers, software and printers, wireless handheld devices, cellular telephones, pagers, etc.), client and customer information, client and customer lists, employee lists, Company files, notes, contracts, records, business plans, financial information, specifications, computer-recorded information, tangible property, credit cards, entry cards, identification badges, keys, all ideas, discoveries, inventions and improvements which are made, conceived or reduced to practice by Consultant and every item of knowledge relating to the Company’s business interests (including potential business interests) gained by Consultant during his engagement with the Company, whether as an employee or independent contractor, and any other materials of any kind which contain or embody, in whole or in part, any proprietary or confidential material of the Company (and all reproductions thereof), except that Company property shall not include items, if any, listed in a written document signed by Consultant and the Company at or before the time of Consultant’s termination of Services as items to be retained by Consultant. Consultant further agrees that he will leave intact all electronic Company documents, including those which Consultant developed or helped develop during his employment, and that he will promptly cancel all accounts for his benefit, if any, in the Company’s name including, without limitation, credit cards, telephone charge cards, cellular telephone accounts, pager accounts, and computer accounts.
(c)    Transitional Responsibilities.  Consultant agrees that throughout the Term, he shall facilitate the transition to the Company’s new Chief Executive Officer and, if requested by the Company’s Board, shall reassume the duties as interim Chief Executive Officer of the Company (as either an employee or consultant, to be determined by the Company) until such time as a successor is named by the Board in the unlikely event such services are required due to the incapacity of the Company’s then current Chief Executive Officer or for any other reason, provided that, if the Board requests Consultant to reassume the duties as Chief Executive Officer after May 4, 2014, Consultant shall only be required to reassume the duties of Chief Executive Officer for a period of sixty (60) days following his agreement to reassume the role.  Consultant’s compensation for serving in such capacity shall be at a rate equal to the same annualized total compensation as in effect at the Employment Termination Date.
8.    Restrictive Covenants.   In addition to the Consultant’s obligations under Section 10 of the Severance Agreement following the Employment Termination Date, 

    4

Consultant shall be bound by the following restrictive covenants as consideration for the Company entering into this Agreement:
(a)        Covenant of Confidentiality. 
(i)    All documents, records, techniques, business secrets and other information of the Company, its subsidiaries and affiliates which have or will come into Consultant’s possession from time to time during the Consultant’s affiliation with the Company and/or any of its subsidiaries or affiliates, whether as an employee or independent contractor, and which the Company treats as confidential and proprietary to the Company and/or any of its subsidiaries or affiliates shall be deemed as such by Consultant and shall be the sole and exclusive property of the Company, its subsidiaries and affiliates. Consultant agrees that he will keep confidential and not use or divulge to any other individual or entity any of the Company’s or its subsidiaries’ or affiliates’ confidential information and business secrets, including, but not limited to, such matters as costs, profits, markets, sales, products, product lines, key personnel, pricing policies, operational methods, customers, customer requirements, suppliers, plans for future developments, and other business affairs and methods and other information not readily available to the public. Additionally, Consultant agrees that upon his termination of the Services and this Agreement, irrespective of the reason for such termination, he shall promptly return to the Company all confidential and proprietary information of the Company and/or its subsidiaries or affiliates that is in his possession.
(ii)    Consultant agrees that the terms and provisions of this Agreement, as well as any and all incidents leading to or resulting from this Agreement, are confidential and may not be discussed with anyone other than his spouse, domestic partner, attorney or tax advisor without the prior written consent of the Board, except as required by law. In the event that Consultant is subpoenaed, or asked to provide confidential information or to testify as a witness or to produce documents in any existing or potential legal or administrative or other proceeding or investigation, formal or informal, related to the Company, to the extent permitted by applicable law, Consultant will promptly notify the Company of such subpoena or request and will, if requested, meet with the Company for a reasonable period of time prior to any such appearance or production.
(b)    Covenant against Competition. During the Restricted Period (as defined below), Consultant shall not, without the prior written consent of the Board, directly or indirectly, engage or become a partner, director, officer, principal, employee, consultant, investor, creditor or stockholder in/for any business, proprietorship, association, firm or corporation not owned or controlled by the Company or its subsidiaries or affiliates which is engaged or proposes to engage or hereafter engages in a business competitive directly or indirectly with the business conducted by the Company or any of its subsidiaries or affiliates in any geographic area in which the Company or any of its subsidiaries or affiliates is or was engaged in or actively planning to engage in business as of the last day of the Term or during the previous 12-month period; provided, however, that Consultant is not prohibited from owning 1% or less of the outstanding capital stock 

    5

of any corporation whose stock is listed on a national securities exchange.  As used herein, the term “Restricted Period” shall mean the period from May 4, 2013 through April 30, 2016 irrespective of whether Consultant’s Services or this Agreement is terminated for any reason or for no reason prior to the expiration of the Term.  
(c)    Covenant of Non-Solicitation. During the Consultant’s engagement with the Company or any subsidiary or affiliate, and thereafter for the Restricted Period, Consultant shall not, directly or indirectly, in any manner or capacity whatsoever, either on Consultant’s own account or for any person, firm or company: 
(i)    take away, interfere with relations with, divert or attempt to divert from the Company any business with any customer or account: (x) that was a customer or account on the last day of the Term and/or has been solicited or serviced by the Company within one year prior to the last day of the Term; and (y) with which Consultant had any contact or association, or that was under the supervision of Consultant, or the identity of which was learned by Consultant, as a result of Consultant’s engagement, whether as an employee or independent contractor, with the Company, or
(ii)    solicit, interfere with or induce, or attempt to induce, any employee or independent contractor of the Company or any of its subsidiaries or affiliates to leave his or her employment or service with the Company or to breach his or her employment agreement or other agreement, if any.
(d)    Covenant of Non-Disparagement and Cooperation.  Consultant agrees not to make any remarks disparaging the conduct or character of the Company or any of its subsidiaries or affiliates, their current or former agents, employees, officers, directors, successors or assigns, except as may be necessary in the performance of his duties or as is otherwise required by law. Consultant agrees to cooperate with the Company in the investigation, defense or prosecution of any claims or actions now in existence or that may be brought in the future against or on behalf of the Company. Such cooperation shall include meeting with representatives of the Company upon reasonable notice at reasonable times and locations to prepare for discovery or any mediation, arbitration, trial, administrative hearing or other proceeding or to act as a witness. The Company shall reimburse Consultant for travel expenses approved by the Company or its subsidiaries or affiliates incurred in providing such assistance. Consultant shall notify the Company if Consultant is asked to assist, testify or provide information by or to any person, entity or agency in any such proceeding or investigation. Nothing in this provision is intended to or should be construed to prevent Consultant from providing truthful information to any person or entity as required by law or his fiduciary obligations.
(e)    Specific Remedy. Consultant acknowledges and agrees that if Consultant commits a material breach of the Covenant of Confidentiality or, if applicable, the Covenant Against Competition, the Covenant of Non-Solicitation, or the Covenant of Non-Disparagement and Cooperation, the Company shall have the right to have the covenant specifically enforced through an injunction or otherwise, without any obligation 

    6

that the Company post a bond or prove actual damages, by any court having appropriate jurisdiction on the grounds that any such breach will cause irreparable injury to the Company, without prejudice to any other rights and remedies that Company may have for a breach of this Agreement, and that money damages will not provide an adequate remedy to the Company. Consultant further acknowledges and agrees that the Covenant of Confidentiality, the Covenant Against Competition, the Covenant of Non-Solicitation, and the Covenant of Non-Disparagement and Cooperation contained in this Agreement are intended to protect the Company’s business interests and goodwill, are fair, do not unreasonably restrict his future employment and business opportunities, and are commensurate with the arrangements set out in this Agreement and with the other terms and conditions of the Consultant’s engagement.  In addition, in executing this Agreement, Consultant makes an election to receive compensation pursuant to Section 3 and is subject to the covenants above, therefore, Consultant shall have no right to return any compensation already paid or to refuse to accept any amounts that are payable in the future in lieu of his specific performance of his obligations under the covenants above.
(f)    Survival of Provisions.  The obligations contained in this Section 8 shall survive the termination or expiration of the Term for any reason or no reason and shall be fully enforceable thereafter.  If it is determined by a court of competent jurisdiction that any restriction in this Section 8 is excessive in duration or scope or extends for too long a period of time or over too great a range of activities or in too broad a geographic area or is unreasonable or unenforceable under the laws of the State of Florida, it is the intention of the parties that such restriction may be modified or amended by the court to render it enforceable to the maximum extent permitted by the laws of the State of Florida.
9.    No Conflicting Agreements; Non-Exclusive Engagement.
(a)    No Conflicting Agreements.  Consultant represents that Consultant is not a party to any existing agreement that would prevent Consultant from entering into and performing this Agreement.  Consultant will not enter into any other agreement that is in conflict with Consultant’s obligations under this Agreement.  Subject to the foregoing, Consultant may from time to time act as a consultant to, perform professional services for, or enter into agreements similar to this Agreement with other persons or entities without the necessity of obtaining approval from the Company, provided that such services and agreements do not conflict with Consultants obligations under Section 8.
(b)    Non-Exclusive Engagement.  The Company may from time to time (i) engage other persons and entities to act as consultants to the Company and perform services for the Company, including services that are similar to the Services, and (ii) enter into agreements similar to this Agreement with other persons or entities, in all cases without the necessity of obtaining approval from Consultant.
10.    Entire Agreement, Amendment and Assignment.  This Agreement is the sole agreement between Consultant and the Company with respect to the Services to be performed hereunder and it supersedes all prior agreements and understandings with respect to the Services, whether oral or written, including, without limitation, under the 

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Amended and Restated Severance Agreement between Consultant and the Company dated December 19, 2008, which the parties agree shall be terminated as of May 4, 2014.  For the avoidance of doubt, this Agreement has no effect on Consultant’s covenants under the Severance Agreement.  No modification to any provision of this Agreement shall be binding unless in writing and signed by both Consultant and the Company.  No waiver of any rights under this Agreement will be effective unless in writing signed by the party to be charged.  All of the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective heirs, executors, administrators, legal representatives, successors and assigns of the parties hereto, except that the duties and responsibilities of Consultant hereunder are of a personal nature and shall not be assignable or delegable in whole or in part by Consultant.
11.    Choice of Law, Jurisdiction, Jury Trial Waiver. The validity, interpretation, construction, and performance of this Agreement shall be governed by the laws of the State of Florida without regard to its conflicts of law principles. The parties agree that any suit, action or other legal proceeding that is commenced to resolve any matter arising under or relating to any provision of this Agreement shall be commenced only in a court of the State of Florida (or, if appropriate, a federal court located within the State of Florida), in either case located in Miami, Florida, and the parties consent to the jurisdiction of such court. The parties hereto accept the exclusive jurisdiction and venue of those courts for the purpose of any such suit, action or proceeding. The Company and Consultant each hereby irrevocably waive any right to a trial by jury in any action, suit or other legal proceeding arising under or relating to any provision of this Agreement.
12.    Notices.  All notices and other communications required or permitted hereunder or necessary or convenient in connection herewith shall be in writing and shall be deemed to have been given when hand delivered, sent by facsimile or mailed by registered or certified mail, as follows (provided that notice of change of address shall be deemed given only when received):
If to the Company, to:

Ryder System, Inc.
11690 N.W. 105th Street
Miami, Florida 33178-1103
Attention: General Counsel            
        
If to Consultant, to the most recent address on file with the Company or to such other names or addresses as the Company or Consultant, as the case may be, shall designate by notice to each other person entitled to receive notices in the manner specified in this Section.

13.    Counterparts.  This Agreement shall become binding when any one or more counterparts hereof, individually or taken together, shall bear the signatures of Consultant and the Company.  This Agreement may be executed in two or more counterparts, each of 

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which shall be deemed to be an original as against any party whose signature appears thereon, but all of which together shall constitute but one and the same instrument.
14.    Severability.  If any provision of this Agreement or application thereof to anyone or under any circumstances is adjudicated to be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect any other provision or application of this Agreement which can be given effect without the invalid or unenforceable provision or application and shall not invalidate or render unenforceable such provision or application in any other jurisdiction.
15.    Social Security Number.  Consultant certifies that he has provided the Company with his true and correct Social Security Number.  Consultant acknowledges that Company will rely upon the foregoing certification in filing certain documents and instruments required by law in connection with this Agreement including, without limitation, Form 1099 (or any successor form) under the Internal Revenue Code of 1986, as amended (the “Code”).
16.    Section 409A.  The Company and Consultant agree that it is reasonably anticipated that Consultant’s Services hereunder will require Consultant to render Services each month at a level that will not exceed 20% of the average level of Consultant’s services as an employee of the Company over the preceding 36-month period.  The parties acknowledge that, for purposes of Section 409A of the Code, Consultant will have undergone a “separation from service,” within the meaning of Section 409A of the Code, from the Company upon the date of Consultant’s termination of employment with the Company on May 3, 2013.
17.        IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have duly executed this Agreement as of the date first above written.
RYDER SYSTEM, INC.

            
By:       /s/ Robert D. Fatovic
Name:  Robert D. Fatovic
Title:     Executive Vice President, 
Chief Legal Officer and 
Corporate Secretary

CONSULTANT

/s/ Gregory T. Swienton     
Gregory T. Swienton

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EXHIBIT A

Benefits Upon Retirement

		
	1.
	Pension Benefits 

		
	2.
	401(k)

		
	3.
	Benefit Restoration Plan (BRP)

		
	4.
	2013 Bonus Award 

		
	a.
	Pro-rata annual bonus through May 3, 2013 (payable in February 2014 based on actual company performance)

		
	5.
	Long-Term Incentive Awards

		
	a.
	Pre 2012 Awards

		
	i.
	Stock Options

		
	ii.
	Performance-Based Restricted Stock

		
	iii.
	Performance Based Restricted Cash

		
	iv.
	Time-Based Restricted Stock

		
	b.
	2012 Awards

		
	i.
	Stock Options

		
	ii.
	Performance-Based Restricted Stock

		
	iii.
	Performance-Based Restricted Cash

		
	6.
	Medical (COBRA)

		
	a.
	Consultant shall be entitled to COBRA benefits through November 2014.

		
	7.
	Executive Life Insurance Program (conversion privilege)

    10

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