Document:

EXHIBIT 10.1

 

COPART,
INC.

 

AMENDED
AND RESTATED EXECUTIVE OFFICER

 

EMPLOYMENT
AGREEMENT

 

This Amended and
Restated Executive Officer Employment Agreement is entered into as of September 25,
2008 by and between Copart, Inc., a California corporation (the “Company”),
and William E. Franklin (the “Executive”).

 

RECITALS:

 

A.                                   The
Company and the Executive previously entered into an Executive Officer
Employment Agreement (the “Original Agreement”) dated March 15, 2004 (the “Effective
Date”).

 

B.                                     The
Board of Directors of the Company (the “Board”) believes it is in the best
interests of the Company and its shareholders to amend the terms of the
Original Agreement in order to comply with Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”).

 

AGREEMENT:

 

In consideration
of the mutual covenants herein contained and the continued employment of
Executive by the Company, the parties agree as follows:

 

1.                                       Duties
and Scope of Employment.

 

(a)                                  Position
and Duties.  As of the Effective
Date, Executive will serve as Senior Vice President and Chief Financial Officer
of the Company.  Executive will render
such business and professional services in the performance of his duties,
consistent with Executive’s position within the Company, as shall reasonably be
assigned to him the Chief Executive Officer (CEO), President or Executive Vice
President (Senior Management) and as are contemplated by the Company’s
bylaws.  During the term of Executive’s
employment with the Company, Executive shall report to and be subject to the
directives of the Board of Directors and Senior Management. The period of
Executive’s employment under this Agreement is referred to herein as the “Employment
Term.”

 

(b)                                 Obligations.  During the Employment Term, Executive will
perform his duties faithfully and to the best of his ability and will devote
his full business efforts and time to the Company.  For the duration of the Employment Term,
Executive agrees not to actively engage in any other employment, occupation or
consulting activity for any direct or indirect remuneration without the prior
approval of the Board.

 

 

2.                                       Employment
Terms.

 

(a)                                  Basic
“At Will” Rule.  The Employment Term
shall begin upon the Effective Date and shall continue thereafter until
terminated by the Company or the Executive. 
The Executive acknowledges and agrees that his employment with the
Company is “at will” and may be terminated at any time, with or without notice,
with or without good cause, or for any or no cause, at the option of either the
Company or the Executive.  Executive
understands and agrees that neither his job performance nor promotions,
commendations, bonuses or the like from the Company shall give rise to, or in
any way serve as the basis for modification, amendment, or extension, by
implication or otherwise, of the Executive’s at-will employment with the
Company.

 

(b)                                 Termination.  If the Company terminates the Executive’s
employment at any time for any reason other than Cause or Disability, both as
defined below, or if the Executive terminates his employment at any time for
Good Reason, as defined below, the provisions of paragraph 9(a)(i) shall
apply.  If the Executive terminates his
employment at any time other than for Good Reason, the provisions of paragraph
9(a)(ii) shall apply.  Upon termination
of the Executive’s employment with the Company, the Executive’s rights under
any applicable benefit plans shall be determined under the provisions of those
plans.

 

(c)                                  Death.  The Executive’s employment shall terminate in
the event of his death.  The Company
shall have no obligation to pay or provide any compensation or benefits under
this Agreement on account of the Executive’s death, or for periods following
the Executive’s death; provided, however, that the Company’s
obligations under paragraph 9(a)(i) shall not be interrupted as a result
of the Executive’s death subsequent to a termination to which such paragraph
applies.  The Executive’s rights under
the benefit plans of the Company in the event of the Executive’s death shall be
determined under the provisions of those plans.

 

(d)                                 Cause.  For all purposes under this Agreement, “Cause”
shall mean Executive’s:

 

(i)                                     willful
or grossly negligent failure to substantially perform his duties hereunder;

 

(ii)                                  commission
of gross misconduct which is injurious to the Company;

 

(iii)                               breach
of a material provision of this Agreement or the agreements incorporated herein
by reference;

 

(iv)                              material
violation of a federal or state law or regulation applicable to the business of
the Company;

 

(v)                                 misappropriation
or embezzlement of Company funds or an act of fraud or dishonesty upon the
Company made by Executive;

 

(vi)                              conviction
of, or plea of nolo contendre to,
a felony; or

 

(vii)                           continued
failure to comply with directives of Senior Management.

 

No act, or failure to
act, by the Executive shall be considered “willful” unless committed without
good faith without a reasonable belief that the act or omission was in the 

 

2

 

Company’s best
interest.  No compensation or benefits
will be paid or provided to the Executive under this Agreement on account of a
termination for Cause, or for periods following the date when such a
termination of employment is effective. 
The Executive’s rights under the benefit plans of the Company shall be
determined under the provisions of those plans.

 

(e)                                  Disability.  The Company may terminate the Executive’s
employment for Disability by giving the Executive 30 days’ advance notice in
writing.  For all purposes under this
Agreement, “Disability” shall mean that the Executive, at the time
notice is given, has been unable to substantially perform his duties under this
Agreement for a period of not less than six (6) consecutive months as
the result of his incapacity due to physical or mental illness.  In the event that the Executive resumes the
performance of substantially all of his duties hereunder before the termination
of his employment under this subparagraph (e) becomes effective, the
notice of termination shall automatically be deemed to have been revoked.  No compensation or benefits will be paid or
provided to the Executive under this Agreement on account of termination for
Disability, or for periods following the date when such a termination of employment
is effective.  The Executive’s rights
under the benefit plans of the Company shall be determined under the provisions
of those plans.

 

(f)                                    Good
Reason.  Employment with the Company
may be regarded as having been constructively terminated by the Company, and
the Executive may therefore terminate his employment for “Good Reason”
within 30 days following the expiration of any Company cure period (as
described below) and thereupon become entitled to the benefits of paragraph
9(a)(i) below, if one or more of the following events (described in
clauses (i) through (iii) below) shall have occurred  without the Executive’s prior written
consent.  The Executive will not resign for “Good Reason” without first providing the
Company with written notice of the acts or omissions constituting the grounds
for “Good Reason” within 90 days of the initial existence of such grounds for “Good
Reason” and a reasonable cure period of not less than 30 days following the
date of such notice.

 

(i)                                     the
assignment to the Executive of any duties or the reduction of the Executive’s
duties, either of which results in a material diminution in the Executive’s
position or responsibilities with the Company in effect immediately prior to
such assignment, or the removal of the Executive from such position and
responsibilities;

 

(ii)                                  a
material reduction by the Company in the Base Salary (as defined below) of the
Executive as in effect immediately prior to such reduction;

 

(iii)                               any
material breach by the Company of any material provision of this Agreement.

 

3.                                       Place
of Employment.  The Executive’s
services shall be performed at the Company’s principal executive offices in
Fairfield, California.  The parties
acknowledge, however, that the Executive will be required to travel in
connection with the performance of his duties hereunder.

 

4.                                       Compensation.

 

(a)                                  Base
Salary.  For all services to be
rendered by the Executive pursuant to this Agreement, the Company agrees to pay
the Executive effective August 25, 2008 and during the 

 

3

 

remainder of the Employment Term a base salary (the “Base
Salary”) at an annual rate of not less than $300,000.  The Base Salary shall be paid in periodic
installments in accordance with the Company’s regular payroll practices.  The Company agrees to review the Base Salary
at least annually after the conclusion of the Company’s fiscal year (July 31)
and to make such increases therein as the Board may approve.

 

(b)                                 Bonus.  Beginning with the Company’s 2009 fiscal year
and for each fiscal year thereafter during the Employment Term, the Executive
will be eligible to receive an annual bonus (the “Bonus”) in the form of
cash and/or stock option grants for such fiscal year as approved by the
Compensation Committee and the Board. 
Payment of an annual bonus shall be a discretionary decision of the
Board.  The Bonus, if any, will be paid
as soon as practical following the determination by the Board or its
Compensation Committee that the Bonus has been earned, but in no event after
the fifteenth day of the third month of the Company’s fiscal year or the
calendar year, whichever is later, following the date the Executive earns the
Bonus and it is no longer subject to a substantial risk of forfeiture.

 

5.                                       Employee
Benefits.  During the Employment
Term, the Executive shall be entitled to participate in employee benefit plans
or programs of the Company, if any, to the extent that his position, tenure,
salary, age, health and other qualifications make him eligible to participate,
subject to the rules and regulations applicable thereto.  The Company reserves the right to cancel or
change the benefit plans and programs it offers to its employees at any
time.  The Company will not materially
reduce the kind or level of employee benefits to which the Executive is
entitled in a manner that would result in the Executive’s overall benefits
package being materially reduced.  Any
such reduction of benefits by the Company will constitute a material breach of
the Agreement.

 

6.                                       Vacation.  Executive will be entitled to paid vacation
of three (3) weeks per year in accordance with the Company’s vacation
policy, with the timing and duration of specific vacations mutually and
reasonably agreed to by the parties hereto.

 

7.                                       Expenses.  The Executive shall be entitled to prompt
reimbursement by the Company for all reasonable ordinary and necessary travel,
entertainment, and other expenses incurred by the Executive while an employee
of the Company (in accordance with the policies and procedures established by
the Company for its senior executive officers) in the performance of his duties
and responsibilities under this Agreement; provided, however,
that the Executive shall properly and promptly account for such expenses in
accordance with the Company’s policies and procedures.  The parties agree that for purposes of this
paragraph, the Executive’s air travel shall be coach class domestically and
business class internationally (excluding Canada).

 

8.                                       Other
Activities.  The Executive shall
devote substantially all of his working time and efforts during the Company’s
normal business hours to the business and affairs of the Company and its
subsidiaries and to the diligent and faithful performance of the duties and
responsibilities duly assigned to him pursuant to this Agreement, except for
vacations, holidays and sickness.  The
Executive may, however, devote a reasonable amount of his time to civic,
community, or charitable activities and, with the prior written approval of the
Senior Management to serve as a director of other corporations and to other
types of business or public activities not expressly mentioned in this
paragraph.

 

4

 

9.                                       Termination
Benefits.  The Executive shall be
entitled to receive severance and other benefits upon a termination of employment
as follows:

 

(a)                                  Severance.

 

(i)                                     Involuntary
Termination.  If the Company
terminates the Executive’s employment other than for Disability or Cause, or if
the Executive terminates his employment for Good Reason, then, in lieu of any
severance benefits to which the Executive may otherwise be entitled under any
Company severance plan or program, and subject to the remaining provisions of
this paragraph 9, the Executive shall be entitled to continued payment of his
Base Salary until the earliest of:  (A) the
12-month anniversary of the effective date of the Executive’s termination,
payable monthly beginning 30 days after the date of Executive’s termination, or
(B) the date on which the Executive breaches his obligations under
paragraph 10 hereof.

 

(ii)                                  Other
Termination.    In the event the
Executive’s employment terminates for any reason other than as described in
paragraph 9(a)(i) above, including by reason of the Executive’s death or
Disability, the Company’s termination of Executive for Cause, or Executive’s
resignation other than for Good Reason, then the Executive shall be entitled to
receive severance and any other benefits only as may then be established under
the Company’s existing severance and benefit plans and policies at the time of
such termination.

 

(b)                                 Release
of Claims Agreement.  The receipt of
any severance payments or benefits pursuant to this Agreement is subject to the
Executive signing and not revoking a severance agreement and release of claims
(the “Release”) in a form acceptable to the Company which must become effective
no later than the 60th day following the Executive’s termination of
employment (the “Release Deadline”), and if not, the Executive will
forfeit any right to severance payments or benefits under this Agreement.  To become effective, the Release must be
executed by the Executive and any revocation periods (as required by statute,
regulation, or otherwise) must have expired without the Executive having
revoked the Release.  In addition, no
severance payments or benefits will be paid or provided until the Release
actually becomes effective.  In the event
the Executive’s termination of employment occurs at a time during the calendar
year where the Release Deadline could occur in the calendar year following the
calendar year in which Executive’s termination occurs, then any severance
payments or benefits under this Agreement that would be considered Deferred
Compensation Separation Benefits (as defined in Section 9(c)) will be paid
on the first payroll date to occur during the calendar year following the
calendar year in which such termination occurs, or such later time as required
by (i) the payment schedule applicable to each payment or benefit as set
forth in Section 9(a), (ii) the date the Release becomes effective,
or (iii) Section 9(c).

 

(c)                                  Section 409A.

 

(i)                                     Notwithstanding
anything to the contrary in this Agreement, if Executive is a “specified
employee” (“Specified Employee”) within the meaning of Section 409A
of the Code and any final regulations and guidance promulgated thereunder (“Section 409A”)
at the time of Executive’s termination, then the severance and benefits payable
to Executive pursuant to this Agreement (other than due to death), if any, and
any other severance payments or separation payments which may be considered
deferred compensation under Section 409A (together, the “Deferred
Compensation Separation Benefits”), which are otherwise due to Executive on
or within 

 

5

 

the six (6) month period following Executive’s
termination will accrue during such six (6) month period and will become
payable in a lump sum payment on the date six (6) months and one (1) day
following the date of Executive’s termination of employment or the date of the
Executive’s death, if earlier.  All
Deferred Compensation Separation Benefits, if any, will be payable in
accordance with the payment schedule applicable to each payment or
benefit.  Each
payment and benefit payable under this Agreement is intended to constitute
separate payments for purposes of Treasury Regulation Section 1.409A-2(b)(2).

 

(ii)                                  Any amount
paid under this Agreement that satisfies the requirements of the “short-term
deferral” rule set forth in Treasury Regulation Section 1.409A-1(b)(4) will
not constitute Deferred Compensation Separation Benefits for purposes of clause
(i) above.

 

(iii)                               Amounts
paid under the Agreement that qualifies as a payment made as a result of an
involuntary separation from service pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii) that
do not exceed the Section 409A Limit will not constitute Deferred
Compensation Separation Benefits for purposes of clause (i) above.  For this purpose, “Section 409A Limit”
means the lesser of two (2) times: (A) the Executive’s annualized
compensation based upon the annual rate of pay paid to  Executive during the Company’s taxable year
preceding the Company’s taxable year of the Executive’s termination of
employment as determined under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and
any Internal Revenue Service guidance issued with respect thereto; or (B) the
maximum amount that may be taken into account under a qualified plan pursuant
to Code Section 401(a)(17) for the year in which Executive’s employment is
terminated.

 

(iv)                              The
foregoing provisions are intended to comply with the requirements of Section 409A
so that none of the severance payments and benefits to be provided hereunder
will be subject to additional tax imposed under Section 409A, and any
ambiguities herein will be interpreted to so comply.  The Company and the Executive agree to work
together in good faith to consider amendments to this Agreement and to take
such reasonable actions which are necessary, appropriate or desirable to avoid
imposition of any additional tax or income recognition prior to actual payment
to Executive under Section 409A.

 

(d)                                 No
Duty to Mitigate.  The Executive
shall not be required to mitigate the amount of any payment contemplated by
this Agreement (whether by seeking new employment or in any other manner).

 

10.                                 Proprietary
Information.  During the Employment
Term and thereafter, the Executive shall not, without the prior written consent
of the Board of Directors, disclose or use for any purpose (except in the
course of his employment under this Agreement and in furtherance of the
business of the Company or any of its affiliates or subsidiaries) any
confidential information or proprietary data of the Company.  As an express condition of the Executive’s
employment with the Company, the Executive agrees to execute confidentiality
agreements as requested by the Company.

 

11.                                 Right
to Advice of Counsel.  The Executive
acknowledges that he has consulted with counsel and is fully aware of his
rights and obligations under this Agreement.

 

6

 

12.                                 Successors.  The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place.  Failure of
the Company to obtain such assumption agreement prior to the effectiveness of
any such succession shall entitle the Executive to the benefits described in
paragraphs 9(a)(i) and 9(b) of this Agreement, subject to the terms
and conditions therein.

 

13.                                 Assignment.
 This Agreement and all rights under this
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the parties hereto and their respective personal or legal representatives,
executors, administrators, heirs, distributees, devisees, legatees, successors
and assigns.  This Agreement is personal
in nature, and the Executive shall not, without the prior written consent of
the Company, assign or transfer this Agreement or any right or obligation under
this Agreement to any other person or entity. 
If the Executive should die while any amounts are still payable to the Executive
hereunder, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to the Executive’s devisee,
legatee, or other designee or, if there be no such designee, to the Executive’s
estate.

 

14.                                 Absence
of Conflict.  The Executive
represents and warrants that his employment by the Company as described herein
will not conflict with and will not be constrained by any prior employment or
consulting agreement or relationship.

 

15.                                 Notices.  All notices, requests, demands and other
communications called for hereunder shall be in writing and shall be deemed
given (i) on the date of delivery, or, if earlier, (ii) one (1) day
after being sent by a well established commercial overnight service, or (iii) three (3) days
after being mailed by registered or certified mail, return receipt requested,
prepaid and addressed to the parties or their successors at the following
addresses, or at such other addresses as the parties may later designate in
writing:

 

	
  If to the Executive:

  	
   

  	
  William E. Franklin

  
	
   

  	
   

  	
  [address]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  If to the Company:

  	
   

  	
  Copart, Inc.

  
	
   

  	
   

  	
  4665 Business Center
  Drive

  
	
   

  	
   

  	
  Fairfield, California
  94534

  
	
   

  	
   

  	
  Attn: General Counsel

  

 

or to such other
address or the attention of such other person as the recipient party has
previously furnished to the other party in writing in accordance with this
paragraph.

 

16.                                 Waiver.  Failure or delay on the part of either party
hereto to enforce any right, power, or privilege hereunder shall not be deemed
to constitute a waiver thereof. 
Additionally, a waiver by either party or a breach of any promise hereof
by the other party shall not operate as or be construed to constitute a waiver
of any subsequent waiver by such other party.

 

7

 

17.                                 Severability.
 Whenever possible, each provision of
this Agreement will be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or rule in
any jurisdiction, such invalidity, illegality or unenforceability will not
affect any other provision or any other jurisdiction, but this Agreement will
be reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

 

18.                                 Arbitration.

 

(a)                                  Arbitration.  In consideration of Executive’s employment
with the Company,  its promise to
arbitrate all employment-related disputes and Executive’s receipt of the
compensation and other benefits paid to Executive by the Company, at present
and in the future, Executive agrees that any and all controversies, claims, or
disputes with anyone (including the Company and any employee, officer,
director, shareholder or benefit plan of the Company in their capacity as such
or otherwise) arising out of, relating to, or resulting from Executive’s
employment with the Company or the termination of Executive’s employment with
the Company, including any breach of this agreement, shall be subject to
binding arbitration under the arbitration rules set forth in California
Code of Civil Procedure Section 1280 through 1294.2, including Section 1283.05
(the “Rules”) and pursuant to California law. 
Disputes which Executive agrees to arbitrate, and thereby agrees to
waive any right to a trial by jury, include any statutory claims under State or
Federal law, including, but not limited to, claims under Title VII of the Civil
Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age
Discrimination in Employment Act of 1967, the Older Workers Benefit Protection
Act, the California Fair Employment and Housing Act, the California Labor Code,
claims of harassment, discrimination or wrongful termination and any statutory
claims.  Executive further understands
that this agreement to arbitrate also applies to any disputes that the Company
may have with employee.

 

(b)                                 Procedure.  Executive agrees that any arbitration will be
administered by the American Arbitration Association (“AAA”) and that a
neutral arbitrator will be selected in a manner consistent with its national rules for
the resolution of employment disputes. 
The arbitration proceedings will allow for discovery according to the rules set
forth in the National Rules for the Resolution of
Employment Disputes. 
Executive agrees that the arbitrator shall have the power to decide any
motions brought by any party to the arbitration, including motions for summary
judgment and/or adjudication and motions to dismiss and demurrers, prior to any
arbitration hearing.  Executive agrees
that the arbitrator shall issue a written decision on the merits.  Executive also agrees that the arbitrator
shall have the power to award any remedies, including attorneys’ fees and
costs, available under applicable law. 
Executive understands the Company will pay for any administrative or
hearing fees charged by the arbitrator or AAA except that Executive shall pay
the first $2,000.00 of any fees associated with any arbitration Executive initiates.  Executive agrees that the arbitrator shall
administer and conduct any arbitration in a manner consistent with the rules and
that to the extent that the AAA’s National Rules for the Resolution of
Employment Disputes conflict with the rules, the rules shall take
precedence.  Any arbitration hereunder
shall be conducted in San Francisco, California

 

(c)                                  Remedy.  Except as provided by the rules, arbitration
shall be the sole, exclusive and final remedy for any dispute between Executive
and the Company.  Accordingly, 

 

8

 

except as provided for by the rules, neither Executive
nor the Company will be permitted to pursue court action regarding claims that
are subject to arbitration. 
Notwithstanding, the arbitrator will not have the authority to disregard
or refuse to enforce any lawful Company policy, and the arbitrator shall not
order or require the Company to adopt a policy not otherwise required by law
which the Company has not adopted.

 

(d)                                 Availability
of injunctive relief.  In accordance
with Rule 1281.8 of the California Code of Civil Procedure, Executive
agrees that any party may also petition the court for injunctive relief where
either party alleges or claims a violation of the employment, confidential
information, invention assignment agreement between Executive and the Company
or any other agreement regarding trade secrets, confidential information,
nonsolicitation or Labor Code §2870.  In
the event either party seeks injunctive relief, the prevailing party shall be
entitled to recover reasonable costs and attorneys fees.

 

(e)                                  Administrative
relief.  Executive understands that
this agreement does not prohibit Executive from pursuing an administrative
claim with a local, state or federal administrative body such as the department
of fair employment and housing, the equal employment opportunity commission or
the workers’ compensation board.  This
agreement does, however, preclude Executive from pursuing court action
regarding any such claim.

 

19.                                 Voluntary
Nature of Agreement.  Executive
acknowledges and agrees that Executive is executing this agreement voluntarily
and without any duress or undue influence by the Company or anyone else.  Executive further acknowledges and agrees
that Executive has carefully read this agreement and that Executive has asked
any questions needed for Executive to understand the terms, consequences and
binding effect of this agreement and fully understand it, including that
Executive is waiving Executive’s right to a jury trial.  Finally, Executive agrees that he/she has
been provided an opportunity to seek the advice of an attorney before signing
this agreement.

 

20.                                 Integration.  This Agreement, together with the  the Confidential Information Agreement and
any agreement relating to equity incentive awards, represents the entire
agreement and understanding between the parties as to the subject matter herein
and supersedes all prior or contemporaneous agreements whether written or
oral.  No waiver, alteration, or
modification of any of the provisions of this Agreement will be binding unless
in writing and signed by the Company.

 

21.                                 Headings.  The headings of the paragraphs contained in
this Agreement are for reference purposes only and shall not in any way affect
the meaning or interpretation of any provision of this Agreement.

 

22.                                 Applicable
Law.  This Agreement shall be
governed by and construed in accordance with the internal substantive laws, and
not the choice of law rules, of the State of California.

 

23.                                 Cooperation.  Executive
shall, without further remuneration, provide Executive’s reasonable cooperation
in connection with any action or proceeding (or any appeal from any action or
proceeding) that relates to events occurring during or relating to Executive’s
employment hereunder.  If Executive’s
cooperation is needed under this paragraph, the Company shall use reasonable
best efforts to schedule Executive’s participation at a mutually convenient
time, and shall reimburse Executive for reasonable travel and out-of-pocket expenses
(following presentment of 

 

9

 

reasonable substantiation).  This provision shall survive any termination
of this Agreement or Executive’s employment.

 

24.                                 Counterparts.  This Agreement may be executed in one or more
counterparts, none of which need contain the signature of more than one party
hereto, and each of which shall be deemed to be an original, and all of which
together shall constitute a single agreement.

 

25.                                 Tax
Withholding.  All payments made
pursuant to this Agreement will be subject to withholding of applicable taxes.

 

26.                                 Acknowledgment.  Executive acknowledges that he has had the
opportunity to discuss this matter with and obtain advice from his private
attorney, has had sufficient time to, and has carefully read and fully
understands all the provisions of this Agreement, and is knowingly and
voluntarily entering into this Agreement.

 

[Remainder
of Page Intentionally Left Blank]

 

10

 

IN WITNESS WHEREOF, each
of the parties has executed this Amended and Restated Executive Officer
Employment Agreement, in the case of the Company by its duly authorized
officer, as of the day and year first above written.

 

 

	
  COMPANY:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COPART,
  INC.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Paul A. Styer

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name: 

  	
  Paul A. Styer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title: 

  	
  Secretary

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXECUTIVE:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ William E. Franklin

  	
   

  	
  Date:

  	
   

  	
   

  
	
  William E. FranklinEXHIBIT 10.1

 

ORLEANS HOMEBUILDERS, INC.

AMENDED AND RESTATED

STOCK AWARD PLAN

 

As Adopted by the Board of Directors

 

(Effective as of October 17, 2008)

 

1.                                      Purpose.  Orleans Homebuilders, Inc. a Delaware
corporation (the “Company”), hereby adopts the Orleans Homebuilders, Inc.
Amended and Restated Stock Award Plan (the “Plan”), for the purpose of
permitting the grant awards of the Company’s common stock to those individuals
eligible to participate in the Plan.  The
Plan is intended to recognize the contributions made to Company by employees
(including employees who are members of the Board of Directors) of Company or
any Affiliate, to provide such persons with additional incentive to devote
themselves to the future success of Company or an Affiliate, and to improve the
ability of Company or an Affiliate to attract, retain, and motivate individuals
upon whom Company’s sustained growth and financial success depend. Through the
Plan, Company will provide such persons with an opportunity to acquire or
increase their proprietary interest in Company, and to align their interest
with the interests of shareholders, through the transfer or issuance of the
Company’s Common Stock, subject to such terms and conditions as may be
established with respect to any such Award. 
The Plan is also intended to permit grants of Awards that will, when
granted in connection with the terms of the Company’s Incentive Compensation
Plan,  constitute “performance-based
compensation” as that term is used for purposes of Section 162(m) of
the Code, at the discretion of the Committee.

 

2.                                      Definitions.
Unless the context clearly indicates otherwise, the following terms shall have
the following meanings:

 

(a)                                 “Affiliate”
means a corporation which is a parent corporation or a subsidiary corporation
with respect to Company within the meaning of Section 424(e) or (f) of
the Code, of any successor provision.

 

(b)                                “Award”
shall mean a transfer of Common Stock made pursuant to the terms of the Plan
subject to such terms, benefits or restrictions as the Committee shall specify
in the Award Agreement.

 

(c)                                 “Award
Agreement” shall mean the agreement between Company and a Grantee with respect
to an Award made pursuant to the Plan.

 

(d)                                “Board”
means the Board of Directors of Company.

 

(e)                                 “Capitalization
Adjustment” means the adjustment to the number or class of shares and payment,
if any, required in connection with an Award, as permitted to be made pursuant
to the provisions of Section 9 of the Plan.

 

 

(f)                                   “Change
of Control” shall be deemed to have occurred upon the earliest to occur of the
following dates:

 

(i)                                    the
date the stockholders of the Company (or the Board of Directors, if stockholder
action is not required) approve a plan or other arrangement pursuant to which
the Company will be dissolved or liquidated; or

 

(ii)                                 the
date the stockholders of the Company (or the Board of Directors, if stockholder
action is not required) approve a definitive agreement to sell or otherwise
dispose of substantially all of the assets of the Company; or

 

(iii)                              the
date the stockholders of the Company (or the Board of Directors, if stockholder
action is not required) and the stockholders of the other constituent
corporation (or its board of directors if stockholder action is not required)
have approved a definitive agreement to merge or consolidate the Company with
or into such other corporation, other than, in either case, a merger or
consolidation of the Company in which holders of shares of the Company’s Class A
Common Stock immediately prior to the merger or consolidation will have at
least a majority of the voting power of the surviving corporation’s voting
securities immediately after the merger or consolidation, which voting
securities are to be held in the same proportion as such holders’ ownership of Class A
Common Stock of the Company immediately before the merger or consolidation; or

 

(iv)                             the
date any entity, person or group, within the meaning of Section 13(d)(3) or
Section 14(d)(2) of the Securities Exchange Act of 1934, as amended,
(other than (A) the Company or any of its subsidiaries or any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
of its subsidiaries or (B) any person who, on the date the Plan is
effective, shall have been the beneficial owner of or have voting control over
shares of Common Stock of the Company possessing more than twenty-five percent
(25%) of the aggregate voting power of the Company’s Common Stock) shall have
become the beneficial owner of, or shall have obtained voting control over,
more than twenty five percent (25%) of the outstanding shares of the Company’s Class A
Common Stock; or

 

(v)                                the
first day after the date this Plan is effective when directors are elected such
that a majority of the Board of Directors shall have been members of the Board
of Directors for less than two (2) years, unless the nomination for
election of each new director who was not a director at the beginning of such
two (2) year period was approved by a vote of at least two-thirds of the
directors then still in office who were directors at the beginning of such
period.

 

(g)                                “Code”
means the Internal Revenue Code of 1986, as amended, or any successor statute,
and the rules and regulations issued pursuant to that statute or any
successor statute.

 

(h)                                “Committee”
shall have the meaning set forth in Section 3 of the Plan.

 

(i)                                    “Common
Stock” shall mean the Company’s Common Stock, par value $.10 per Share.

 

(j)                                    “Company”
means Orleans Homebuilders, Inc., a Delaware corporation.

 

2

 

(k)                                 “Employee”
means an employee of Company or an Affiliate.

 

(l)                                    “Grantee”
shall mean a person to whom an Award has been granted pursuant to the Plan.

 

(m)                              “Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute, and the rules and regulations issued pursuant to that statute or
any successor statute.

 

(n)                                “Non-Employee
Director” shall mean a member of the Board who is a “non-employee director” as
that term is defined in paragraph (b)(3) of Rule 16b-3 and an “outside
director” as that term is defined in Treasury Regulations Section 1.162-27
promulgated under the Code.

 

(o)                                “Non-Employee
Director Committee” means a committee designated by the Board to act as the
Committee with respect to the Plan that consists solely of two or more
Non-Employee Directors.

 

(p)                                “Rule 16b-3”
means Rule 16b-3 promulgated under the Exchange Act, or any successor
rule.

 

(q)                                “Section 16
Officers” means any person who is an “officer” within the meaning of Rule 16a-1(f) promulgated
under the Exchange Act or any successor rule, and who is subject to the
reporting requirements under Section 16 of the Exchange Act with respect
to Company’s Common Stock.

 

(r)                                   “Securities
Act” means the Securities Act of 1933, as amended, or any successor statute,
and the rules and regulations issued pursuant to that statute or any
successor statute.

 

(s)                                 “Shares”
means the shares of Common Stock of Company which are granted as Awards under
the Plan.

 

3.                                      Administration
of the Plan. The Board may administer the Plan and/or it may, in its
discretion, designate a committee or committees composed of two or more of
directors to operate and administer the Plan with respect to all or a
designated portion of the participants. To the extent that the Committee is
empowered to grant Awards to Section 16 Officers or persons whose
compensation might have limits on deductibility under Code Section 162(m),
the Board may, at its discretion, appoint a separate committee to administer
the Plan with respect to those persons, each member of such committee being a
Non-Employee Directors. Any such committee designated by the Board, and the
Board itself in its administrative capacity with respect to the Plan, is
referred to as the “Committee.”

 

(a)                                 Meetings.
The Committee shall hold meetings at such times and places as it may determine,
shall keep minutes of its meetings. The Committee may take action only upon the
agreement of a majority of the whole Committee. Any action which the Committee
shall take through a written instrument signed by all its members shall be as
effective as though it had been taken at a meeting duly called and held.

 

3

 

(b)                                Exculpation.  No member of the Board of Directors shall be
personally liable for monetary damages for any action taken or any failure to
take any action in connection with the administration of the Plan, provided
that this Subsection 3(b) shall not apply to (i) any breach of such
member’s duty of loyalty to the Company or its stockholders, (ii) acts or
omissions not in good faith or involving intentional misconduct or a knowing
violation of law, (iii) acts or omissions that would result in liability
under Section 174 of the General Corporation Law of the State of Delaware,
as amended, and (iv) any transaction from which the member derived an
improper personal benefit.

 

(c)                                 Indemnification.
Service on the Committee shall constitute service as a member of the Board.
Each member of the Committee shall be entitled, without further act on the
member’s part, to indemnity from Company and limitation of liability to the
fullest extent provided by applicable law and by Company’s Articles of
Incorporation and/or Bylaw in connection with or arising out of any action,
suit or proceeding with respect to the administration of the Plan or the
granting Awards thereunder in which the member may be involved by reason of the
member being or having been a member of the Committee, whether or not the
member continues to be such member of the Committee at the time of the action,
suit or proceeding.

 

(d)                                Interpretation.
The Committee shall have the power and authority to (i) interpret the
Plan, (ii) adopt, amend and revoke rules and regulations for its
administration that are not inconsistent with the express terms of the Plan,
and (iii) waive requirements relating to formalities or other matters that
do not either modify the substance of the rights intended to be granted by
Awards or constitute a material amendment for any purpose under the Code. Any
such actions by the Committee shall be final, binding and conclusive on all
parties in interest.

 

4.                                      Eligibility.
All Employees shall be eligible to receive Awards hereunder. The Committee, in
its sole discretion, shall determine whether an individual qualifies as an
Employee.

 

5.                                      Shares
Subject to Plan. The aggregate maximum number of Shares for which Awards
may be granted pursuant to the Plan is One Million (1,000,000).  The number of shares which may be issued
under the Plan shall be subject to a permitted Capitalization Adjustment. The
Shares shall be issued from authorized and unissued Common Stock or Common
Stock held in or hereafter acquired for the treasury of Company.  If Shares subject to an Award have been
conveyed back to Company pursuant to the terms of an Award Agreement, the
Shares that were conveyed back to Company shall again be available for issuance
pursuant to the terms of one or Awards, granted pursuant to the Plan.

 

6.                                      Term
of the Plan. The Plan is effective as of October 17, 2008, the date as
of which it was adopted by the Board, subject to the approval of the Plan by
the Company’s stockholders in a manner required by state law. Unless and until
the Plan is so approved by the Company’s stockholders, no Awards may be granted
pursuant to the amended and restated Plan. 
The Plan shall terminate on the tenth anniversary of the date of its
adoption, unless earlier terminated at the discretion of the Board.

 

4

 

7.                                      Change
of Control.  In the event of a Change
of Control, the Committee may take whatever action it deems necessary or
desirable with respect to Awards which have not yet fully vested, including,
without limitation, accelerating the vesting date applicable to such Awards.

 

8.                                      Terms
and Conditions of Awards. Awards granted pursuant to the Plan shall be
evidenced by written Award Agreements in such form as the Committee shall from
time to time approve, which Award Agreements shall comply with and be subject
to the following terms and conditions and such other terms and conditions which
the Committee shall from time to time require which are not inconsistent with
the terms of the Plan.

 

(a)                                 Number
of Shares. Each Award Agreement shall state the number of Shares or other
units or rights to which it pertains.

 

(b)                                Purchase
Price. Each Award Agreement shall specify the purchase price, if any, which
applies to the Award. If the Board specifies a purchase price, the Grantee
shall be required to make payment on or before the payment date specified in
the Award Agreement. A Grantee shall make payment (i) in cash, (ii) by
certified check payable to the order of Company, or (iii) by such other
mode of payment as the Committee may approve.

 

(c)                                 Grant.
In the case of an Award which provides for a grant of Shares without any
payment by the Grantee, the grant shall take place on the date specified in the
Award Agreement. In the case of an Award which provides for a payment, the
grant shall take place on the date the initial payment is delivered to Company,
unless the Committee or the Award Agreement otherwise specifies. Stock
certificates evidencing Shares granted pursuant to an Award shall be issued in
the sole name of the Grantee.

 

(d)                                Conditions.
The Committee may specify in an Award Agreement any conditions under which the
Grantee of that Award shall be required to convey to Company the Shares covered
by the Award. Upon the occurrence of any such specified condition, the Grantee
shall forthwith surrender and deliver to Company the certificates evidencing
such Shares as well as completely executed instruments of conveyance. The
Committee, in its discretion, may provide that certificates for Shares
transferred pursuant to an Award be held in escrow by Company or its designee
until such time as each and every condition has lapsed and that the Grantee be
required, as a condition of the Award, to deliver to such escrow agent or
Company officer stock transfer powers covering the Award Shares duly endorsed
by the Grantee. Unless otherwise provided in the Award Agreement or determined
by the Committee, dividends and other distributions made on Shares held in
escrow shall be deposited in escrow, to be distributed to the party becoming
entitled to the Shares on which the distribution was made. Stock certificates
evidencing Shares subject to conditions shall bear a legend to the effect that
the Shares evidenced thereby are subject to repurchase by, or conveyance to,
Company in accordance with the terms applicable to such Shares under an Award
made pursuant to the Plan, and that the Shares may not be sold or otherwise
transferred.

 

(e)                                 Lapse
of Conditions. Upon termination or lapse of all forfeiture conditions,
Company shall cause certificates without the legend referring to Company’s
repurchase or acquisition right (but with any other legends that may be
appropriate) evidencing 

 

5

 

the Shares covered by the Award to be issued to the Grantee upon the
Grantee’s surrender to Company of the legended certificates held by the
Grantee.

 

(f)                                   Rights
as Shareholder. Upon payment of the purchase price, if any, for Shares
covered by an Award and compliance with the acknowledgment requirement of
subsection 13(c), the Grantee shall have all of the rights of a shareholder
with respect to the Shares covered thereby, including the right to vote the
Shares and (subject to the provisions of Subsection 13(d)) receive all
dividends and other distributions paid or made with respect thereto, except to
the extent otherwise provided by the Committee or in the Award Agreement.

 

9.                                      Adjustments
on Changes in Capitalization.

 

(a)                                 In
the event that the outstanding Shares are changed by reason of a
reorganization, merger, consolidation, recapitalization, reclassification,
stock split-up, combination or exchange of shares and the like (not including
the issuance of Common Stock on the conversion of other securities of Company
which are convertible into Common Stock) or dividends payable in Shares, an
equitable adjustment may be made by the Committee as it deems appropriate in
the aggregate number of shares available under the Plan.

 

(b)                                The
Committee shall have authority to determine the adjustments to be made under
this Section, and any such determination by the Committee shall be final,
binding and conclusive.

 

10.                                Amendment
of the Plan. The Board may amend the Plan from time to time in such manner
as it may deem advisable. Nevertheless, the Board may not change the class of
persons eligible to receive Awards, or increase the maximum number of Shares
which may be granted as Awards under the Plan without obtaining approval of the
Company’s stockholders in the manner required by state law. No amendment to the
Plan shall adversely affect any outstanding Award, however, without the consent
of the Grantee or Grantee, as the case may be.

 

11.                                No
Commitment to Retain. The grant of an Award pursuant to the Plan shall not
be construed to imply or to constitute evidence of any agreement, express or
implied, on the part of Company or any Affiliate to retain the Grantee or
Grantee as an employee, director, consultant or advisor of Company or any
Affiliate, or in any other capacity.

 

12.                                Withholding
of Taxes. In connection with any event relating to an Award, Company shall
have the right to (a) require the recipient to remit or otherwise make
available to Company an amount sufficient to satisfy any federal, state and/or
local withholding tax requirements prior to the delivery or transfer of any
certificates for such Shares, or (b) take whatever other action it deems
necessary to protect its interests with respect to tax liabilities, including,
without limitation, withholding any Shares, funds or other property otherwise
due to the Grantee or Grantee. The Company’s obligations under the Plan shall
be conditioned on the Grantee’s or Grantee’s compliance, to Company’s
satisfaction, with any withholding requirement.

 

6

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