Document:

exv10w9w4

 

Exhibit 10.9.4

SENIOR MANAGEMENT AGREEMENT

     THIS
SENIOR MANAGEMENT AGREEMENT (this “Agreement”) is made as of June 17, 2002, between
IDLEAIRE TECHNOLOGIES
CORPORATION, a Delaware corporation (the “Company”), and JAMES H. PRICE (“Executive”).

     The parties hereto agree as follows:

     1. Employment. The Company agrees to employ Executive and Executive accepts such
employment for the period beginning as of the date hereof and ending on the third anniversary of
the date hereof or upon Executive’s earlier separation pursuant
to Section 1(e) hereof
(the “Employment Period”); provided, however, that the Employment Period shall automatically be
renewed for an additional two year period commencing on the third anniversary of the date hereof
unless either the Company or the Executive gives the other at least 60 days written notice prior
to the Expiration of the Employment Period of its desire to terminate this Agreement.

          (a)
Position and Duties. During the Employment Period, Executive shall serve as the
Senior Vice President and General Counsel of the Company and shall have the normal duties,
responsibilities and authority of the Senior Vice President and General Counsel, subject to the
power of the Chairman, CEO or the Company’s board of directors (the “Board”) to expand or limit
such duties, responsibilities and authority and to override actions of the Senior Vice President
and General Counsel. Executive shall report to the Board of the Company and Executive shall devote
his best efforts and substantially all of his business time and attention to the business and
affairs of the Company and/or its Subsidiaries. Notwithstanding the foregoing, it is understood
and agreed that Executive has certain other business interests and activities which will require
some time and efforts of Executive and the Company agrees that Executive may have other business
interests and activities and devote time thereto so long as the same do not unreasonably detract
from the performance of Executive’s duties to the Company.

          (b)
Salary, Bonus and Benefits. Effective as of the date hereof, the Company will pay
Executive a base salary of $150,000 per annum, payable in equal installments every two weeks,
subject to any annual increase during the Employment Period as determined by the Board based upon
the Company’s achievements of budgetary and other objectives set by the Board (the “Annual
Base Salary”). In addition, Executive shall be eligible to receive an annual bonus (commencing
with the Company’s fiscal year ending December 31, 2000) based upon the Company’s achievement of
budgetary and other objectives set by the Board and

 

 

agreed upon by Executive and the Company in good faith. Executive’s Annual Base Salary for any
partial year will be prorated based upon the number of days elapsed in such year. In addition,
during the Employment Period, Executive will be entitled to such other benefits as are from time
to time made available to all of the Company’s senior executives, including vacation time,
tuition reimbursement, reimbursement of business expenses and healthcare, disability and life
insurance benefits.

          (c) Business Expenses. The Company agrees that it shall, in
accordance with applicable tax laws and Company policies and any written
agreement between Executive and the Company, relating to reimbursed expenses
for its executives, reimburse Executive for all reasonable business expenses
incurred by him during the term of Executive’s employment hereunder in
connection with the performance of services hereunder.

          (d) Business Equipment. The Company shall provide Executive
business equipment to be utilized in accordance with the established policies,
practices and procedures for executive officers of the Company.

          (e) Separation. Executive’s employment by the Company during
the Employment Period will continue until: (i) Executive’s resignation at any time
which includes resignation with Good Reason as hereinafter defined and
resignation without Good Reason, or (ii) until Executive’s disability or death, or (iii)
until the Board terminates Executive’s Employment at any time during the
Employment Period. If the Employment Period is terminated by Executive or by
the Board without Cause, then the termination will be effective thirty (30) days
after the date of delivery of written notice of termination. If the Employment
Period is terminated by the Board with Cause, termination will be effective as of the
date of notice of termination. If the Employment Period is terminated by the Board
with Cause, then the Executive shall be entitled to receive his Annual Base Salary,
bonuses and his fringe benefits only through the effective date of termination. If
the Employment Period is terminated by the Board for any other reason or if
Executive resigns with Good Reason, then (i) all options shall vest in accordance
with their terms without reference to continuing employment, and (ii) the Executive
shall be entitled to receive his Annual Base Salary, accrued bonuses and his life
insurance, medical insurance and disability insurance benefits, if any, for one year
from the effective date of termination (such payments, the “Severance Payment”)
which shall be payable over time in accordance with normal payroll practices. If the
Employment Period is terminated due to death, then the Annual Base Salary and
medical insurance will be continued for one full calendar year following the month
in which the Executive died. If the Employment Period is terminated due to
Disability, then the Annual Base Salary, medical insurance and disability insurance
will be continued until the last day of the six-month period following Disability;

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provided, however, that such Annual Base Salary shall be reduced by the amount of any disability
income payments made to the Executive during such six-month period from any insurance or other
policies paid for by the Company.

          (f)
Professional Licenses. The Company shall pay all costs incurred by Executive to
maintain his professional licenses, including but not limited to all costs associated with
licensing fees, all fees and costs for continuing education and all fees and costs associated
with malpractice insurance.

     2. Termination
Upon A Change In Control.

          (a) If there is a “change in control” of the Company, Executive will be deemed terminated
and will receive the following lump sum cash payment and a lien of the Severance Payment:

               (i) If immediately before the “change in control” new stock of
the Company was readily tradeable on an established securities market or otherwise, and the
shareholder approval required under IRC § 280(G) was obtained with respect to such payment, then
Executive shall receive One Million Dollars ($1,000,000.00).

               (ii) If the requirements of 2(a)(i) above are not met, Executive shall receive two hundred
ninety-nine percent (299%) of his “base amount” as defined
in IRC § 280(G)(d)(1)(2).

               The payment to be made pursuant to paragraph 2(a) above shall be made within ninety (90) days
of the change in control.

          (b) For purposes of this Agreement, the term “change in control” is defined to include:

               (i) A tender offer or exchange offer made and consummated
for ownership of Company stock representing fifty percent (50%) or more of the combined voting
power of the Company’s outstanding securities;

               (ii) Sale or transfer of substantially all of the Company’s assets to another corporation
which is not a wholly owned subsidiary of the Company;

               (iii) Any transaction relating to the Company which must be described in accordance with item
5(f) of Schedule 14(A) of Regulation 14(A) of the Securities and Exchange Commission;

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               (iv) Any merger or consolidation of the Company with another
corporation where less than fifty percent (50%) of the outstanding voting shares of the surviving
resulting corporation are owned in the aggregate by the Company’s former stockholders; or

               (v) Any tender offer, exchange offer, merger, sale of assets and/or contested election which
results in a total change in the composition of the Company’s Board of Directors.

          (c) The amounts paid to Executive pursuant to this paragraph will be deemed severance pay in
consideration of Executive’s past services to the Company and his continued services from the
date of this Agreement.

     3. Confidential
Information.

          (a) Executive acknowledges that the Company is engaged in the
business of providing heating and cooling services for vehicles and providing related
convenience services (the “Business”). Executive further acknowledges that the
Business and its continued success depend upon the use and protection of a large
body of confidential and proprietary information, and that he holds a position of
trust and confidence by virtue of which he necessarily possesses, has access to and,
as a consequence of his signing this Agreement, will continue to possess and have
access to, highly valuable, confidential and proprietary information of the Company
and its Subsidiaries not known to the public in general, and that it would be
improper for him to make use of this information for the benefit of himself and
others. All of such confidential and proprietary information now existing or to be
developed in the future will be referred to in this Agreement as “Confidential
Information.” This includes, without specific limitation, information relating to the
Company’s marketing, products, internal management, the nature and operation of
the Business, the persons, firms and corporations which are customers or active
prospects of the Company during Executive’s employment by the Company, the
Company’s methodology and methods of doing business, strategic, acquisition,
marketing and expansion plans, including plans regarding planned and potential
acquisitions and sales, financial and business plans, employee lists, numbers and
location of sales representatives, new and existing programs and services (and those
under development), prices and terms, customer service, costs of providing service,
support and equipment and equipment maintenance costs. Confidential Information
shall not include any information that has become generally known to and available
for use by the public other than as a result of Executive’s acts or omissions.

          (b) Disclosure of any Confidential Information of the Company shall not be prohibited if such
disclosure is required in the course of his employment or is directly pursuant to a valid and
existing order of a court or other governmental

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body or agency within the United States; provided, however, that (i) Executive shall first
have given prompt notice to the Company of any such possible or prospective order (or proceeding
pursuant to which any such order may result) and (ii) Executive shall afford the Company a
reasonable opportunity to prevent or limit any such disclosure, all at Company’s expense.

          (c) During the Employment Period and for a period of three (3) years thereafter, Executive
will not disclose any of the Confidential Information known to Executive or at any time in
Executive’s possession. In addition, during the Employment Period and at all times thereafter,
Executive will not disclose to any unauthorized person or use for his own account any of such
Confidential Information without the Board’s written consent. Executive agrees to deliver to the
Company at a Separation as described in Section 1(e), or at any other time the Company
may request in writing, all memoranda, notes, plans, records, reports and other documents (and
copies thereof) containing or otherwise relating to any of the Confidential Information
(including, without limitation, all acquisition prospects, lists and contact information) which
he may then possess or have under his control. Executive acknowledges that all such memoranda,
notes, plans, records, reports and other documents are and at all times will be and remain the
property of the Company.

     4. Non-Competition
and Non-Solicitation. Executive acknowledges that in the course of
his employment with the Company he will become familiar with the Confidential Information
concerning the Company and that his services will be of special, unique and extraordinary value to
the Company. Executive agrees that the Company has a protectable interest in the Confidential
Information acquired by Executive during the course of his employment with the Company. Therefore,
Executive agrees that:

          (a)
Non-Competition. So long as Executive is employed by the
Company and for an additional three (3) years thereafter (the
“Non-Compete
Period”), he shall not work directly for any vehicle heating and cooling business in
the United States, which manufactures, markets, or designs products or provides
services, which products or services could reasonably be anticipated to compete with
the products or services, or planned products or services, of the Company.

          (b)
Non-Solicitation. During the Non-Compete Period Executive
shall not directly or indirectly through another entity (i) induce or attempt to induce
any person known by Executive to be an employee of the Company to leave the
employ of the Company, or in any way interfere with the relationship between the
Company and any employee thereof, (ii) hire any person who was known by
Executive to be an employee of the Company or any of its Subsidiaries within sixty
(60) days prior to the time such employee was hired by the Executive,

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(iii) knowingly induce or attempt to induce any owner of a site location, customer,
supplier, licensee or other business relation of the Company to cease doing business with the
Company or in any way knowingly interfere with the relationship between any such customer,
supplier, licensee or business relation and the Company or (iv) knowingly directly or indirectly
acquire or attempt to acquire an interest in any business relating to the business of the Company
and with which, to Executive’s knowledge, the Company has entertained discussions or has
requested and received information relating to the acquisition of such business by the Company in
the three-year period immediately preceding a Separation.

          (c) Enforcement. If, at the time of enforcement of Section 3 or 4 of this Agreement, a
court holds that the restrictions stated herein are unreasonable under circumstances then existing,
the parties hereto agree that the maximum duration, scope or geographical area reasonable under
such circumstances shall be substituted for the stated period, scope or area and that the court
shall be allowed to revise the restrictions contained herein to cover the maximum duration, scope
and area permitted by law. Because Executive’s services are unique and because Executive has access
to Confidential Information, the parties hereto agree that money damages would be an inadequate
remedy for any breach of this Agreement. Therefore, in the event of a breach or threatened breach
of Section 3 or Section 4 of this Agreement, the Company or any of its successors or assigns shall,
in addition to other rights and remedies existing in its favor, be entitled to pursue specific
performance and/or injunctive or other relief in order to enforce, or prevent any violations of,
the provisions of Section 3 or Section 4 from any court of competent jurisdiction.

          (d) Additional Acknowledgments. Executive acknowledges that the provisions of this
Section are in consideration of: (i) employment with the Company and (ii) additional good and
valuable consideration as set forth in this Agreement. Executive expressly agrees and acknowledges
that the restrictions contained in Sections 3 and 4 do not preclude Executive from earning a
livelihood, nor does it unreasonably impose limitations on Executive’s ability to earn a living.
In addition, Executive agrees and acknowledges that the potential harm to the Company of its
non-enforcement outweighs any harm to the Executive of its enforcement by injunction or otherwise.
Executive acknowledges that he has carefully read this Agreement and has given careful
consideration to the restraints imposed upon the Executive by this Agreement, and is in full
accord as to their necessity for the reasonable and proper protection of the Confidential
Information. Executive expressly acknowledges and agrees that each and every restraint imposed by
this Agreement is reasonable with respect to subject matter, time period and geographical area.

GENERAL PROVISIONS

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     5. Definitions.

          “Cause” means (i) the commission of a felony or a crime involving moral turpitude or the
intentional commission of any other act or omission involving dishonesty or fraud with respect to
the Company or any of their customers or suppliers, (ii) substantial and repeated failure to
perform duties of the office as agreed upon by the Company and Executive held by Executive as
reasonably directed by the Board not cured within ten (10) business days after written notice
thereof, (iii) gross negligence or willful misconduct with respect to the Company; or (iv) any
intentional material breach of Section 3 or 4 of this Agreement by Executive not cured within ten
(10) business days after written notice thereof from the Company. Any election by the Company not
to renew the Employment Period on the third anniversary of the date hereof or any renewal thereof
shall be deemed to be a termination by the Board without Cause. The failure of the Company or the
Executive to achieve budgetary or other operational objectives established by the Board of
Directors shall not in any way constitute Cause.

          “Disability” means a physical or mental condition which, for a continuous period of at least
six (6) months has or will prevent the Executive from performing his duties on a full time basis
and in a professional and consistent manner. Any dispute as to the Executive’s Disability shall be
referred to and resolved by a licensed physician selected and approved by the Company and the
Executive.

          “Good Reason” means (i) the assignment to the Executive of any duties inconsistent in
any material respect with the Executive’s position (including status, offices, titles and
reporting requirements), authority, duties or responsibilities as contemplated by this Agreement;
(ii) any change in the location of the performance of the duties such that the Executive is
required to travel or commute a substantially greater distance than he does prior to the change;
(iii) establishment of an Annual Base Salary for the Executive which is less than provided for in
this Agreement, or failure to pay same other than an isolated, inadvertent or insubstantial
failure, not occurring in bad faith; and (iv) any purported termination of Executive’s employment
by the Company, other than as specifically set forth herein.

          “Person” means an individual, a partnership, a limited liability company, a corporation, an
association, a joint stock company, a trust, a joint venture, an unincorporated organization and a
governmental entity or any department, agency or political subdivision thereof.

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     6. Notices. Any notice provided for in this Agreement must be in writing and must be
either personally delivered, mailed by first class mail (postage prepaid and return receipt
requested) or sent by reputable overnight courier service (charges prepaid) to the recipient at
the address below indicated:

          If to the Company:

IdleAire
Technologies Corporation 
900 S. Gay St., Suite 300

Knoxville, TN 37902
 Attention:
Michael C. Crabtree, CEO

          If to the Executive:

James H. Price

7408 Tinover Court

Knoxville, TN 37938

or such other address or to the attention of such other person as the recipient party shall have
specified by prior written notice to the sending party. Any notice under this Agreement will be
deemed to have been given when so delivered or sent or, if mailed, five days after deposit in the
U.S. mail.

     7. General
Provisions.

          (a)
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.

          (b)
Complete Agreement. This Agreement, those documents
expressly referred to herein and other documents of even date herewith embody the
complete agreement and understanding among the parties and supersede and
preempt any prior understandings, agreements or representations by or among the
parties, written or oral, which may have related to the subject matter hereof in any
way.

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          (c) Counterparts. This Agreement may be executed in separate
counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.

          (d) Successors and Assigns. Except as otherwise provided herein,
this Agreement shall bind and inure to the benefit of and be enforceable by
Executive and the Company and their respective successors and assigns.

          (e) Choice of Law. All questions concerning the construction,
validity and interpretation of this Agreement and the exhibits hereto will be
governed by and construed in accordance with the internal laws of the State of
Tennessee, without giving effect to any choice of law or conflict of law provision or
rule that would cause the application of the laws of any jurisdiction other than the
State of Tennessee.

          (f) Remedies. Each of the parties to this Agreement will be entitled
to enforce its rights under this Agreement specifically, to recover damages and costs
(including attorney’s fees) caused by any breach of any provision of this Agreement
and to exercise all other rights existing in its favor. The parties hereto agree and
acknowledge that money damages may not be an adequate remedy for any breach of
the provisions of this Agreement and that any party may in its sole discretion apply
to any court of law or equity of competent jurisdiction (without posting any bond or
deposit) for specific performance and/or other injunctive relief in order to enforce or
prevent any violations of the provisions of this Agreement.

          (g) Amendment and Waiver. The provisions of this Agreement may
be amended and waived only with the prior written consent of the Company and the
Executive.

          (h) Business Days. If any time period for giving notice or taking action hereunder
expires on a day which is a Saturday, Sunday or holiday in the state in which the Company’s
principal place of business is located, the time period shall be automatically extended to the
business day immediately following such Saturday, Sunday or holiday.

          (i)
Termination. This Agreement (except for the provisions of
Sections 1(a) and 1(b))
shall survive a Separation as described in Section 1(e) and shall remain in full force and effect
after such Separation.

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* * * * *

     IN WITNESS WHEREOF, the parties hereto have executed this Senior Management Agreement on
the date first written above.

	 	 	 	 	 
	 	 	IDLEAIRE TECHNOLOGIES CORPORATION
	 
	 	 	 	 
	 

	 	By: 
	/s/ Michael C. Crabtree
	 

	 	 	 
	 

	 	Name:
	Michael C. Crabtree
	 

	 	Title:
	Chief Executive Officer
	 
	 	 	 	 
	 	 	 
	 	 	James H. Price

10exv10w9w5

 

Exhibit 10.9.5

EMPLOYMENT AGREEMENT

     This
EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of May 6, 2002, by and
between Paul Boyd (“Employee”) and IdleAire Technologies Corporation, a Delaware corporation
(“Employer”), but effective as of the Effective Date.

Recital

     Employee and Employer desire to enter into an agreement to set forth the terms and conditions of
Employee’s employment with Employer.

Agreement

     In consideration of the promises and the mutual covenants hereinafter set forth, the parties agree
as follows:

     1. Definitions. For purposes of this Agreement, the following terms, including both the
singular and the plural and whether or not capitalized, shall have the meanings assigned to them
below, as follows:

          (a) “Affiliate” means with respect to any Person, any other Person which directly or
indirectly controls, is controlled by or is under common control with such Person.

          (b) “Business” means the business of Employer on the date first above written, consisting of
providing HVAC, communication and other convenience services to parked vehicles.

          (c) “Competitive Activity” means any business or activity of Employee or any third party that
is the same as the Business or competitive with the Business.

          (d) “Confidential Information” means all confidential information and trade secrets of the
Employer, as generally understood pursuant to customary business practices of similarly situated
companies, Employer and their Affiliates including, without limitation, the following: the
identity, written lists, or descriptions of any customers, vendors, referral sources or
Organizations; financial statements, cost reports, or other financial information; contract
proposals or bidding information; business plans; training and operations methods and manuals;
personnel records; fee structures; and management systems, policies or procedures, including
related forms and manuals. “Confidential Information” shall not include any information or
knowledge which: (a) is

 

 

in the public domain other than by Employee’s breach of this Agreement; (b) is disclosed to
Employee lawfully by a third party who is not under any obligation of confidentiality; or (c) is
now or hereafter becomes generally known in the industry of Employer other than by Employee’s
breach of this Agreement.

          (e) “Effective Date” means the date set forth in Section 3 hereof.

          (f) “Noncompete Period” means the period beginning on the date hereof and ending on the
second anniversary of the date of the termination of Employee’s employment under any provision of
Section 7.

          (g) “Nonsolicitation Period” means the period beginning on the date hereof and ending on the
second anniversary of the date of the termination of Employee’s employment under any provision of
Section 7.

          (h) “Organization” means any organization that has contracted with Employer for the performance of
services in connection with the Business.

          (i) “Person” means any individual, corporation, partnership, joint venture, association,
joint-stock company, limited liability company, trust, unincorporated organization or government
body.

          (j) “Purchaser” means any individual or entity that purchases all or substantially all the shares
of capital stock or assets of Employer, or any entity with which Employer merges.

          (k) “Trade Area” means the United States of America.

     2. Employment. Employer hereby employs Employee and Employee hereby accepts such
employment by Employer on the terms and conditions set forth in this Agreement.

     3. Term. The term of this Agreement (the “Term”) shall commence on June 1, 2002
(“Effective Date”) and shall continue until the anniversary thereof, unless sooner terminated as
provided for herein; provided, however, that this Agreement may be renewed at Employer’s option for
additional one year periods (each a “Renewal Term”) on the anniversary of the Effective Date and on
each additional anniversary thereafter by Employer’s delivery of written notice at least sixty (60)
days prior to the expiration of the Term or any Renewal Term. Either Employee or Employer may
terminate this Agreement with or without Cause as provided in Section 7 below. Upon
termination of Employee’s employment with Employer pursuant to the terms contained in this
Agreement, Employer shall have no further liability to Employee with respect to this Agreement
except for compensation, fringe benefits and perquisites accrued and unpaid on the date of such
termination and except as otherwise specifically set forth herein. Upon termination of this
Agreement by Employee pursuant to the terms contained in this Agreement, Employee shall have no
further liability to Employer with respect to this Agreement except for the covenants of the
Employee contained in Sections 8 and 9 herein which survive the term of this Agreement and
except as specifically set forth herein.

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     4. Position, Duties and Place of Performance. Employee agrees to serve as Chief
Financial Officer for the Employer or in such other capacities on behalf of Employer of reasonably
similar levels and duties as designated by Employer’s Board of Directors (“Board”). Employee shall
perform those duties, if so requested, which are consistent with such position.

     5. Time and Efforts Devoted. During the term of this Agreement, Employee shall
devote all of his business time, energy, best efforts and attention to the business and affairs of
Employer and shall not engage, directly or indirectly, in any other business or businesses without
the consent of Employer.

     6. Compensation; Benefits and Perquisites.

          (a) Compensation. For all services rendered by Employee during the Term, Employer
shall pay Employee a base salary of $5000.00 per bi-weekly pay period ($130,000 on an annualized
basis), payable in equal installments and regular intervals at least monthly.

          (b) Benefits and Perquisites. Employee shall be entitled to the following
benefits and perquisites and such other benefits as may be mutually agreed by Employer and Employee
in writing from time to time during the Term: (i) payment of Employee’s reasonable business travel
and other business expenses in accordance with employer’s applicable policies, provided Employee
properly accounts therefor in accordance with such policies; (ii) paid vacation, holidays and sick
leave in accordance with Employer’s policies; and (iii) all other applicable Employee benefits,
including, if applicable, medical, dental and disability insurance, profit sharing and other
benefits plans of Employer or its Affiliates, each in accordance with Employer’s policies.

     7. Termination of Employment.

          (a) Termination Events. Employee’s employment under this Agreement, and the Term, shall
terminate and neither party shall have any further rights or obligations under this Agreement
(except for the rights and obligations under those sections of this Agreement which are continuing
and shall survive such termination), on the earliest to occur of the following events:

               (i) The sixtieth (60th) day following Employer’s receipt of notice of termination from
Employee.

               (ii) The sixtieth (60th) day following Employee’s receipt of notice of termination without
Cause from Employer.

               (iii) On the expiration date of the Term or any Renewal Term which is not renewed pursuant to
Section 3 above.

               (iv) The death of Employee.

               (v) Upon written notice to Employee by Employer, effective as of the date of such notice, if
Employee shall have become permanently disabled. For

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purposes of this Agreement, the term “permanently disabled” shall mean Employee’s incapacity
due to physical or mental illness such that she is or will be unable to perform the essential
functions of his previously assigned duties for a period of at least six (6) continuous months
where such incapacity has been determined to exist by either (x) Employer’s disability insurance
carrier or (y) by the Board in good faith based on competent medical advice. Any such termination
for disability shall be only as expressly permitted by the Americans with Disabilities Act.

               (vi) The termination of Employee by Employer for “Cause” (as hereinafter defined). For purposes of
this Agreement, “Cause” shall mean and include, subject to the limitations described below, any
wrongful act or omission which constitutes: (A) Employee’s material neglect, refusal or failure to
diligently perform any lawful direction of Employer or comply with any other material obligation of
Employee under this Agreement, as determined in good faith by the Board or Employer’s Chairman and
such direction or obligation has not been cured within ten (10) days after written notice to
Employee of such neglect, refusal, failure or noncompliance; (B) Employee’s conviction of any crime
involving moral turpitude or any felony; (C) Employee’s commission of an act of theft or fraud in
connection with his duties hereunder; (D) Employee engaging in any discrimination or sexual
harassment with respect to Employees, customers or vendors of the Employer, the Employer or their
Affiliates; (E) Employee’s gross negligence or willful misconduct in connection with the
performance of his duties hereunder; or (F) any material
violation of Sections 8 or 9 hereof by
Employee.

          (b) Payments after Termination. In the event Employer terminates
Employee’s employment during the Term without Cause pursuant to Section 7(a)(ii) above,
Employee shall have no further rights or claims against the Employer, the Employer, or their
Affiliates except for (i) the right to continue to be entitled to receive the base compensation
under Section 6(a) above for a period of ten (10) months following the date of Employee’s
termination (the “Severance Period”) payable ratably over the Severance Period in accordance with
the Employer’s normal payroll practices; (ii) reimbursement of all business expenses incurred by the
Employee prior to the date of termination; and (iii) the right to continue to receive during the
Severance Period all medical, dental or other health and welfare benefits provided to Employee
during the Term; provided, however, that such benefits shall cease to the extent Employee receives
similar benefits from any business which employs Employee during the Severance Period. In the
event of termination of the Employee’s employment for any reason other than by Employer without
Cause pursuant to Section 7(a)(ii) above, neither Employee nor his beneficiary or estate
will have any further rights or claims against the Employer, the Employer or their Affiliates except
for (i) the unpaid portion of the base compensation through the date of termination, (ii)
reimbursement of all business expenses incurred by the Employee prior to such date; and (iii) in the
event of Employee’s death or permanent disability, all rights of Employee under the terms of any
Employee benefit plans or insurance policies of Employer applicable to Employee.

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          (c) Return of Employer’s Property. Employee agrees that, upon the termination of this
Agreement, Employee will immediately surrender to the Employer all of the Employer’s property,
including, without limitation, equipment, funds, lists, manuals, books, records or other
Confidential Information (including all copies of the foregoing) in the possession of, or provided
to, Employee.

     8. Confidential Information and Goodwill; Inventions. Employee
acknowledges and agrees as follows:

          (a) As a necessary function of Employee’s employment hereunder, Employee may have access to
and utilize Confidential Information which constitutes a valuable and essential asset of Employer’s
business;

          (b) Employer’s relationship with its Employees and the recognition of Employer as a provider
of efficient and effective services in the Business are valuable and essential elements of the
goodwill of Employer; and

          (c) All inventions, innovations, developments, improvements, methods, designs, analyses, drawings,
software, reports and all similar or related information (whether or not patented or patentable)
developed by Employee which (i) directly or indirectly relate to the Employer, the Employer or
their Affiliates or the Business, or (ii) result from any work performed by Employee while employed
by Employer, the Employer or their Affiliates shall belong to the Employer and its Affiliates.
Employee shall promptly disclose all such inventions to Employer’s Chairman and perform all actions
reasonably requested by Employer’s Chairman (whether during or after the Term or any Renewal Term)
to establish and confirm such ownership (including, without limitation, assignments, consents,
powers of attorney and other instruments).

     9. Noncompetition, Nonsolicitation Protection of Confidential
Information. Employee covenants and agrees as follows:

          (a) Noncompetition. At any time during the Noncompete Period, he will not, as an
officer, director, Employee, shareholder, owner, consultant, principal, agent, trustee or through
the agency of any corporation, partnership, association or agent or agency, except in his capacity
as an Employee of Employer, participate or engage in the Business or any Competitive Activity in
the Trade Area, and shall not be the owner, directly or indirectly, of more than five percent (5%)
of the outstanding capital stock of any corporation, partnership or other business engaged in any
Competitive Activity in the Trade Area.

          (b) Nonsolicitation.

               (i) At any time during the Nonsolicitation Period, Employee will not, except in his capacity
as an Employee of Employer,

                    (A) directly or indirectly induce any customer of Employer, the Employer or their Affiliates to
patronize any other individual or entity engaged in any Competitive Activity;

5

 

                    (B) service, canvass, solicit or accept any business from any customer of Employer,
the Employer or their Affiliates for the purpose of competing with Employer, the Employer or their
Affiliates;

                    (C) directly or indirectly request or advise any customer or supplier of Employer, the
Employer or their Affiliates to withdraw, curtail or cancel such customer’s or supplier’s business
with Employer, the Employer or their Affiliates; or

                    (D) directly or indirectly disclose to any other Person the name or address of any customer
of Employer, the Employer or their Affiliates for the purpose of competing with Employer, the
Employer or their Affiliates.

               (ii) At any time during the Nonsolicitation Period, Employee further agrees that she will not,
either directly or indirectly, through any Person with which she is now or may hereafter become
associated, solicit for employment or employ any person who is or was employed by Employer, the
Employer or their Affiliates at any time within the one (1) year period immediately preceding such
solicitation or employment without the written permission of the Employer.

          (c) Disclosure. During the Term and for a period of two (2) years after the termination of
Employee’s employment hereunder for whatever reason, Employee will use good faith reasonable
efforts to preserve as confidential and not to, either directly or indirectly, publish, release,
disseminate, disclose or otherwise make available to any third party or use or otherwise exploit
for Employee’s own benefit or for the benefit of anyone other than Employer, any Confidential
Information, except as (i) may be expressly authorized by Employer in its sole discretion, (ii)
required during and in the course of Employee’s employment hereunder, or (iii) required by a
judicial order or decree or governmental law or regulation.

          (d) Reasonable Restrictions. The restrictive covenants and agreements
contained in this Section 9 are reasonable with respect to subject matter, length of time
and geographic area, for the protection of the legitimate business interests of Employer,
including, without limitation, Employer’s Confidential Information, goodwill and expectation of
conducting its business without (i) competition from Employee in the Trade Area during the
Noncompete Period and (ii) solicitation by Employee of Employer’s Employees, suppliers, customers
or Business during the Nonsolicitation Period. Employee further acknowledges and agrees that the
restrictive covenants and agreement contained in this Section 9 constitute a material
inducement to Employer to enter into this Agreement.

          10.
Remedies-Court Action. With respect to each breach
or threatened breach of Section 9 of
this Agreement and without waiver of any right or remedy which the Employer may elect to pursue
with respect thereto, all remedies available at law or in equity, including specific performance
and injunctive relief, may be pursued by the Employer at any time. The agreements and covenants
contained in Section 9 shall not be held invalid or unenforceable because of the scope of
the geographic area or actions subject thereto or restrictions imposed thereby, or the period of

6

 

time within which such agreement or covenant is operative, but any judgment of a court of
competent jurisdiction may reform or define the maximum geographic area and actions subject to and
restricted by Section 9 and the period of time during which such agreement or covenant is
enforceable.

          11. Captions and Number. The captions of the sections of this Agreement have been
inserted for convenience of reference only and shall not affect the interpretation of this
Agreement. Whenever it appears appropriate from the context, each term stated in either the
singular or plural shall include both the singular and the plural.

          12. Assignment Neither this Agreement nor any rights or obligations hereunder may be
assigned, transferred or delegated by either party without the prior written consent of the other
party in his or its sole discretion, and any attempt to do so shall be void; provided, however,
that Employer shall have the right to assign this Agreement or any of its rights or obligations
hereunder to any Affiliate or Purchaser without the consent of Employee.

          13. Separate Agreements. This Agreement shall be deemed to consist of a series of
separate covenants. Should a determination be made by a court of competent jurisdiction that the
character, duration, or geographical scope of any provision of this Agreement is unreasonable
in light of the circumstances as they then exist, then it is the intention and the agreement of the
Employer and Employee that this Agreement shall be construed by the court in such a manner as to
impose only those restrictions on the conduct of Employee which are reasonable in light of the
circumstances as they then exist and as are necessary to assure the Employer of the intended
benefit of this Agreement. If, in any judicial proceeding, a court shall refuse to enforce all of
the separate covenants deemed included herein because, taken together, they are more extensive than
necessary to assure the Employer of the intended benefit of this Agreement, then it is expressly
understood and agreed by the Employer and Employee that those covenants which, if reformed in
accordance with the terms of Section 10 above or eliminated, would permit the remaining
separate covenants to be enforced in such proceeding, shall, for the purpose of such proceeding, be
deemed reformed or eliminated from the provisions hereof (as applicable).

          14. Policies, Regulations and Guidelines for Employees. The Employer might issue
policies, rules, regulations, guidelines, procedures, or other informational material, whether in
the form of handbooks, memoranda, or otherwise, relating to Employer’s Employees. The parties
acknowledge and agree that such materials are general guidelines for Employee’s information and
shall not be construed to alter, modify or amend this Agreement for any purpose whatsoever.

          15. Amendment. No amendment of this Agreement shall be valid unless made in writing
and signed by Employer and Employee.

          16. Entire Agreement; Agreement Confidential. This Agreement contains the entire
agreement and understanding between Employer and Employee with respect to Employee’s employment and
supersedes all prior agreements, whether written or oral, relating to Employee’s employment with
Employer. No representations, inducements, or agreements have been made to induce either Employee
or Employer to enter into this Agreement which are not expressly set forth herein. This Agreement
is the sole source of rights and duties as between Employer and Employee

7

 

relating to Employee’s employment by Employer. Except as required by law, Employee and Employer
agree to use reasonable commercial efforts to maintain as confidential the terms of this Agreement.

          17.
Notice. All notices, consents, requests, approvals or other communications in
connection with this Agreement shall be in writing and shall be delivered personally or sent by
certified, registered or express mail, postage prepaid, or by Federal Express or similar overnight
courier service, or by facsimile transmission (with confirmation of transmission), and shall be
deemed delivered on the date received. Unless changed by written notice pursuant hereto, the
address of each party for the purposes hereof is as follows:

If to Employee:

Paul Boyd

7928 Stratton Drive

Knoxville, Tennessee 37919

Telephone:  (865) 690-2526

Facsimile:  (865) 690-2754

If to Employer:

Idleaire Technologies Corporation

900 South Gay Street, Suite 300

Knoxville, Tennessee 37902

Attention: James H. Price, Sr. Vice President and General Counsel

Telephone:           (865) 342-3640

Facsimile:           (865) 342-3650

          18.
Law Governing. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TENNESSEE WITHOUT GIVING EFFECT TO THAT
STATE’S CHOICE OF LAW RULES.

          19. Counterparts; Facsimile Execution. This Agreement may be executed (i) in
several counterparts, each of which shall be deemed an original, but together they shall constitute
one and the same instrument, and (ii) by facsimile transmission of signature pages executed by each
party, which shall be evidence of such party’s intention to be bound hereby, with duly signed
originals to be exchanged by the parties in due course.

          20. Employee’s Representations and Warranties. Employee represents and warrants
that she has full right and authority to enter into this Agreement and fully perform his
obligations hereunder, that she is not subject to any non-competition agreement other than with
Employer, and that his past, present and anticipated future activities have not and will not
infringe on the proprietary rights of others. Employee further represents and warrants that she is
not obligated under any contract (including licenses, covenants or commitments of any nature) or
other agreement,

8

 

or subject to any judgment, decree or order of any court or administrative agency, which would
conflict with his obligation to use his best efforts to promote the interests of Employer or which
would conflict with Employer’s business as conducted or proposed to be conducted. Neither the
execution nor delivery of this Agreement, nor the carrying on of Employer’s business as an officer,
director or Employee by Employee will conflict with or result in a breach of the terms, conditions
or provisions of, or constitute a default under, any contract, covenant or instrument under which
Employee is now obligated.

     IMPORTANT: THIS AGREEMENT CONTAINS VERY IMPORTANT TERMS GOVERNING YOUR EMPLOYMENT WITH EMPLOYER.
SECTION 9 CONTAINS PROVISIONS WHICH AFFECT YOUR ABILITY TO TAKE CERTAIN ACTIONS FOLLOWING
THE TERMINATION OF THIS AGREEMENT. YOU SHOULD FEEL FREE TO SEEK ADVICE FROM YOUR ATTORNEY REGARDING
ANY MATTER RELATING TO THIS AGREEMENT. BY EXECUTING THIS AGREEMENT, YOU ARE AFFIRMING THAT YOU HAVE
HAD THE OPPORTUNITY TO REVIEW THIS AGREEMENT AND TO CONSULT WITH YOUR ATTORNEY IF YOU SO DESIRED,
THAT YOU UNDERSTAND THE MEANING AND SIGNIFICANCE OF ALL OF ITS PROVISIONS, THAT NO REPRESENTATIONS
OR PROMISES HAVE BEEN MADE TO YOU REGARDING YOUR EMPLOYMENT WHICH ARE NOT SET FORTH IN THIS
AGREEMENT, AND THAT YOU ARE FREELY SIGNING THIS AGREEMENT TO OBTAIN EMPLOYMENT WITH EMPLOYER.

[THIS SPACE INTENTIONALLY LEFT BLANK]

9

 

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

	 	 	 	 	 	 	 
	 	 	“EMPLOYEE”	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Paul Boyd
	 	 	 
	 	 	Paul Boyd
	 
	 	 	 	 	 	 
	 	 	“EMPLOYER”	 	 
	 
	 	 	 	 	 	 
	 	 	IDLEAIRE TECHNOLOGIES CORPORATION
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/  James H. Price
	 	 	 	 	 
	 

	 	 	 	Name:
	 	James H. Price
	 

	 	 	 	Title:
	 	Sr. VP and General Counsel

10

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