Document:

ex10-2.htm

Exhibit 10.2

 

SEPARATION AGREEMENT AND GENERAL RELEASE

   

This Separation Agreement and General Release (hereinafter “Agreement”) is between USA Truck, Inc., a Delaware corporation (hereinafter referred to as the “Company”) and Christian Rhodes (hereinafter referred to as the “Employee”). Company and Employee may also hereinafter be referred to individually as a “Party” and collectively as the “Parties.”

 

WHEREAS, Employee’s position with Company is an at will employment position;

 

WHEREAS, the Company has decided to terminate the employment of Employee;

 

NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, and for good and valuable consideration, receipt of which is hereby acknowledged, it is hereby agreed by and between the Parties as follows: 

 

1.     TERMINATION OF EMPLOYMENT: The Parties agree that Employee’s last day of employment with the Company will be February 28, 2017, although Employee will not report for work or perform any work for or on behalf of the Company after January 5, 2017. 

 

Employee shall remain an active employee of the Company through and until February 28, 2017. Company shall pay Employee in accordance with its normal payroll cycle, practices, and procedures for the pay periods of January and February, 2017, and Employee’s compensation for the time period between January 5, 2017, and February 28, 2017, shall constitute Employee’s compensation for the period of time between the date of the Notice of Termination and Date of Termination, as referenced in the Change in Control Severance Agreement dated October 30, 2013 (hereinafter referred to as the “Change in Control Severance Agreement”). 

 

Employee acknowledges that he was given a Notice of Termination, as outlined in the Change in Control Severance Agreement, on January 5, 2017, and that his Date of Termination, as outlined in the Change in Control Severance Agreement, is February 28, 2017.

 

2.     ACKNOWLEDGMENT OF RECEIPT OF AGREEMENT: Employee acknowledges that he was given this Agreement to consider on January 5, 2017.

 

3.     ACCEPTANCE OF AGREEMENT: Employee may accept this Agreement only by signing and dating it in its unmodified form in the spaces provided and mailing or delivering it to Company at 3200 Industrial Park Road, Van Buren, AR 72956, Attn: Kandice Harshaw or Nathan Pearcy, no later than 5:00 p.m. Central Time on January 26, 2017. If Employee fails to sign and return the Agreement by this time, the Agreement, and all provisions thereof, shall be deemed to be automatically withdrawn by the Company, shall be null and void, and none of the provisions herein shall be binding on either the Company or Employee.

 

4.     REVOCATION: Employee may revoke his acceptance of this Agreement at any time within seven (7) calendar days after signing and delivering it to the Company by notifying Company’s Human Resources Department in writing of his decision to revoke. Time is of the essence as it pertains to this Section 4.

 

5.     EFFECTIVE DATE OF AGREEMENT: The Effective Date of this Agreement shall be the eighth (8th) calendar day after the date at which Employee signs and delivers it to the Company in strict accordance with Section 3 above, unless Employee revokes his acceptance of the Agreement before then in accordance with Section 4 above. If Employee revokes his acceptance of this Agreement in accordance with Section 4 above, this Agreement will not become effective and will not be binding on either Employee or the Company.

 

 

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6.     COMPENSATION AND BENEFITS TO EMPLOYEE: Subject to the terms of this Agreement, the Company shall provide to the Employee a separation payment (hereinafter referred to as the “Separation Payment”) as a lump sum in the amount of One Hundred Seventy One Thousand One Hundred Twenty-Five Dollars and Fourteen Cents ($171,125.14), which represents: (a). $17,108.07 X 6 months; plus (b). $18,476.72, which represents Employee’s annual bonus compensation for fiscal year 2016 under the Company’s Short Term Incentive Compensation Plan; plus (c). $50,000, as a relocation services benefit. The foregoing lump sum payment shall be subject to applicable deductions and withholdings, as required by applicable law, and shall be made by Company to the Employee within five (5) business days of the Effective Date, as outlined in Section 5 herein. 

 

Company shall also provide Employee with a COBRA notice within the time required by law following Employee’s last day of employment outlined in Section 1 hereinabove. 

 

The Employee’s rights to any grants of equity in the Company by the Company, both as to grants of equity options or grants of restricted shares or restricted stock units, shall be governed by the provisions of any applicable agreements related thereto. 

 

7.     COMMITMENTS BY EMPLOYEE.  Employee agrees that:

 

	 	
a.
	
He will not at any time, without the prior written consent of Company, either directly or indirectly use, divulge or communicate to any person or entity, in any manner, any confidential or proprietary information of any kind concerning any matters affecting or relating to the business of the Company (meaning, for the purpose of this paragraph, the Company and its affiliated entities including the Released Parties as that term is defined below in Section 11), except if the disclosure: (i) Is required by law; or (ii) Involves information which had been lawfully revealed to Employee by a third (3rd) party having no confidentiality obligation to Company. This prohibition against disclosure includes, but is not limited to, Company’s, and its affiliates’ legal matters, technical data, systems and programs, financial and planning data, marketing strategies, software development, business plans, labor/management information, operational information, pricing, customer information, personnel and Human Resources information, and other confidential business information. Employee is bound by all prior representations of confidentiality and non-disclosure. Employee agrees to take every reasonable step to protect such confidential or proprietary information from being disclosed to third (3rd) parties. If Employee is required, or believes he may be required, to disclose such confidential or proprietary information pursuant to subpoena or other legal process, he shall give the Company prompt notice so that the Company may object or take steps to prevent such disclosure. Employee further agrees that he shall continue to conform, honor and observe Company policies, philosophies and positive relationships with customers, suppliers/vendors, and employees;

 

	 	
b.
	
Employee agrees not to disparage the Company. Employee understands and agrees that if, at any time, he violates the terms of this Agreement, including but not limited to the confidentiality and non-disparagement term, the Company shall have the right to seek specific performance of this term and/or any other necessary and proper relief including, but not limited to, damages which shall include the monetary consideration referred to in Section 6 of this Agreement and the prevailing Party shall be entitled to recover its reasonable costs and attorney’s fees. This paragraph is not intended to be and does not act as a non-competition clause; and 

 

	 	
c.
	
Employee will, for the indefinite future, fully cooperate with Company (meaning, for the purpose of this paragraph, the Company and its affiliated entities including the Released Parties as that term is defined below in Section 11) in handling its legal and other matters in which he was involved or about which he has knowledge, such as answering inquiries from the Company, testifying and engaging in other efforts on behalf of Company and its affiliated companies. Employee will make himself available upon reasonable notice at reasonable times and places in order to prepare for giving testimony, and to testify at deposition, trial or other legal proceedings, without Company having to serve him with a subpoena. Employee expressly agrees that he will not be entitled to compensation, of any type or in any amount, for any of his time expended in such proceedings, but Company agrees to reimburse Employee for his reasonable out-of-pocket costs and expenses. 

  

 

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8.     TAX CONSEQUENCES. Employee acknowledges and agrees that Company has made no representations to him regarding the tax consequences of any amount received by him pursuant to this Agreement. Employee agrees to pay any and all federal, state or local taxes, if any, which are required by law to be paid by him as a taxpayer with respect to this Agreement. Employee further agrees to indemnify and hold harmless Company from any claims, demands, deficiencies, levies, assessments, executions, judgments or recoveries by any governmental entity against Company for any amounts claimed due from him on account of this Agreement or pursuant to claims made under any federal, state or local tax law or regulation and any costs, expenses or damages incurred or sustained by Company by reason of any such claims, including without limitation any amounts paid by Company as taxes, fees, deficiencies, levies, assessments, fines, penalties, interest or otherwise. 

 

9.     ENTIRE PAYMENT. Employee agrees that the Separation Payment outlined in Section 6 above shall constitute the entire amount of monetary consideration provided to him under this Agreement and that he shall not seek any further compensation or consideration from the Company or its affiliated entities (including the Released Parties as that term is defined below in Section 11) for any other claimed damages, costs or attorney fees in connection with the matters encompassed in this Agreement. 

 

10.     COMPANY PROPERTY. Employee represents that he has not removed any Company (meaning, for the purpose of this paragraph, the Company and its affiliated entities including the Released Parties as that term is defined below in Section 11) confidential or proprietary records, data or information or other Company property from Company and agrees that, if he has done so, all such records, data or information concerning Company or property thereof in his possession shall be returned to Company immediately. Employee shall immediately return all Company property in his possession, including but not limited to any Company lap top computer or cell phone. 

 

11.    RELEASE. In consideration of the compensation and benefits outlined in Section 6 herein, and for other valuable consideration, Employee and his representatives, heirs, successors, and assigns do hereby completely release and forever discharge Company, its parent, and any present or past affiliates, and its and their present and former shareholders, officers, directors, agents, employees, attorneys, insurers, successors, and assigns (hereinafter referred to individually as a “Released Party” and collectively as the “Released Parties”) from all claims, rights, demands, actions, obligations, liabilities, and causes of action of every kind and character, known or unknown, mature or unmatured, which Employee may now have or has ever had, whether based on tort, contract (express or implied), or any federal, state, or local law, statute, or regulation (collectively, “Released Claims”). By way of example and not in limitation of the foregoing, Released Claims shall include any claims arising under the Civil Rights Act, Age Discrimination in Employment Act, the Americans with Disabilities Act, and any and all similar claims arising under any statute, law or regulation of the state of Arkansas as well as any claims asserting breach of express and implied contract, breach of the covenant of good faith and fair dealing, wrongful discharge, retaliation, violation of any applicable service letter law(s), negligent or intentional infliction of emotional distress, negligent or intentional misrepresentation, negligent or intentional interference with contract or prospective economic advantage, defamation, invasion of privacy, and claims related to disability. Employee likewise releases the Released Parties from any and all obligations for attorneys’ fees incurred in regard to the above claims, or otherwise. Notwithstanding the foregoing, Released Claims shall not include: (i) Any claims based on obligations created by or reaffirmed in this Agreement; (ii) Any obligation Company may have under the Company’s retirement plan; (iii) Any obligation the Company may have for any unpaid compensation due Employee for work performed on or prior to the Effective Date; (iv) Any claims for insurance benefits that are covered by the Company’s health insurance plan; (v) Any claims for unemployment benefits that Employee may file, which the Parties acknowledge is a claim against the state unemployment fund and is not a claim against the Company or the Released Parties in any event; or (vi) Any rights or claims that arise after the date on which Employee signs and delivers this Agreement to Company. 

 

 

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12.     WAIVER OF UNKNOWN CLAIMS. The Parties understand and agree that Released Claims include not only claims presently known to Employee, but also include all unknown or unanticipated claims, rights, demands, actions, obligations, liabilities, and causes of action of every kind and character that would otherwise come within the scope of Released Claims as described in Section 11. Employee understands that he may hereafter discover facts different from what he now believes to be true, which if known, could have materially affected this Agreement, but he nevertheless waives any claims or rights based on different or additional facts. 

 

13.      COVENANT NOT TO SUE. Employee agrees not to file a lawsuit against any Released Party under any contract (express or implied), or under any federal, state, or local law, statute, or regulation pertaining in any manner to Released Claims. Employee also agrees not to request a service letter (if applicable) under any state service letter law. Notwithstanding the foregoing, nothing in this section shall prohibit Employee from filing a charge or complaint with a government agency such as but not limited to the Equal Employment Opportunity Commission, the National Labor Relations Board, the Department of Labor, or other applicable state agency. However, Employee understands and agrees that, by entering into this Agreement, he is waiving and releasing any and all individual claims for relief.

 

14.    CONFIDENTIALITY AND NON-DISPARAGEMENT. Employee understands and agrees that this Agreement and each of its terms, and the negotiations surrounding it, are confidential and shall not be disclosed by Employee, or anyone acting on his behalf, through his knowledge or for his benefit, to any entity or person, for any reason, at any time, without the prior written consent of Company, unless required by law. Prior to any disclosure by Employee that he feels is required by law, Employee must first notify Company of his intention to disclose the information, with a minimum of 15 days’ advance notice, to enable the Company to take appropriate legal action to prevent the disclosure if the Company believes the disclosure is not authorized. Notwithstanding the foregoing, Employee may disclose the terms of this Agreement for legitimate business reasons to legal, financial, and tax advisors. 

 

15.     NO ADMISSION OF LIABILITY. This Agreement does not constitute an admission by Company of any liability to Employee, and Employee understands that Company expressly denies any liability to Employee.

 

16.     AGE DISCRIMINATION CLAIMS. Employee understands and agrees that, by entering into this Agreement, (i) He is waiving any rights or claims he/she might have under the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, and any similar law of the State of Arkansas; (ii) He has received consideration beyond that to which he was previously entitled, including, but not limited to the compensation, benefits and other payments specified in Section 6, above; (iii) He has been advised to consult with an attorney before signing this Agreement; and (iv) He has been offered the opportunity to evaluate the terms of this Agreement for not less than twenty-one (21) calendar days prior to his execution of the Agreement and has been given a period of seven (7) calendar days to revoke his acceptance of this Agreement if he chooses to do so after he has signed it, all as more fully provided for elsewhere in this Agreement. 

 

17.     EMPLOYEE REPRESENTATIONS. Employee represents and warrants that he has been paid all compensation owed (including, but not limited to, overtime and bonus compensation) and for all hours worked, has received all the leave and leave benefits and protections for which he was eligible, pursuant to the Family and Medical Leave Act or otherwise, and has not suffered any on-the-job injury for which he has not already filed a claim.

 

 

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18.     INTEGRATION. The Parties understand and agree that the preceding Sections recite the sole consideration for this Agreement; that no representation or promise has been made by Employee, Company, or any other Released Party concerning the subject matter of this Agreement, except as expressly set forth in this Agreement; and that all agreements and understandings between the Parties concerning the subject matter of this Agreement are embodied and expressed in this Agreement. This Agreement shall supersede all prior or contemporaneous agreements and understandings among Employee, Company, and any other Released Party, whether written or oral, express or implied, with respect to the employment, termination, and benefits of Employee, including without limitation, any employment-related agreement or benefit plan, except to the extent that the provisions of any such agreement or plan have been expressly referred to in this Agreement as having continued effect. 

 

The Parties agree that this Agreement supersedes and replaces the Change in Control Severance Agreement between them, with respect to the matters outlined herein. Employee explicitly agrees that upon payment of the Separation Payment, as outlined in Section 6 herein, Company has fulfilled all of its obligations under the Change in Control Severance Agreement.

 

19.     ASSIGNMENT, SUCCESSORS AND ASSIGNS. Employee agrees that he will not assign, sell, transfer, delegate, or otherwise dispose of, whether voluntarily or involuntarily, or by operation of law, any rights or obligations under this Agreement. Any such purported assignment, transfer, or delegation shall be null and void. Employee represents that he has not previously assigned or transferred any claims or rights released by him pursuant to the Agreement. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective heirs, successors, attorneys, and permitted assigns. This Agreement shall also inure to the benefit of any Released Party. This Agreement shall not benefit any other person or entity except as specifically enumerated in this Agreement.

 

20.     SEVERABILITY. If any provision of this Agreement, or its application to any person, place, or circumstance, is held by an arbitrator or a court of competent jurisdiction to be invalid, unenforceable, or void, such provision shall be enforced to the greatest extent permitted by law, and the remainder of this Agreement and such provision as applied to other persons, places, and circumstances shall remain in full force and effect.

 

21.     GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the United States and to the extent applicable, the laws of the State of Arkansas, without regard to conflict of laws principles.

 

22.     INTERPRETATION. This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against either Party. By way of example and not in limitation, this Agreement shall not be construed in favor of the Party receiving a benefit nor against the Party responsible for any particular language in this Agreement. Captions are used for reference purposes only and should be ignored in the interpretation of the Agreement.

 

23.     VOLUNTARY AGREEMENT. Employee acknowledges that he has read this entire Agreement, that Employee fully understands its meaning and effect, and that Employee has voluntarily signed this Agreement. 

 

24.     ADVICE TO EMPLOYEE. Employee is hereby advised to consult an attorney prior to signing this Agreement.

 

 

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IN WITNESS WHEREOF, Employee and a duly authorized representative of Company have signed this Agreement to be effective as provided in Section 5 above.

 

 

 

	
EMPLOYEE
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
/s/ Christian Rhodes
	
 
	
1-17-17

	
 
	
Christian Rhodes
	
 
	
Date

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
USA TRUCK INC.  
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
By:
	
/s/ James Reed
	
 
	
1-30-17

	
 
	
 
	
 
	
Date

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
James D. Reed
	
 
	
CFO

	
 
	
Printed Name
	
 
	
Title

 

 

 

Page 6 of 6ex10-3.htm

Exhibit 10.3

 

FIRST AMENDMENT TO

EXECUTIVE SEVERANCE AND CHANGE IN CONTROL AGREEMENT

 

This First Amendment to Executive Severance and Change in Control Agreement (this "Amendment"), dated as of January ___, 2017, is made by and between USA Truck, Inc., a Delaware corporation, and James Reed, President and Chief Executive Officer. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Agreement (as hereinafter defined).

 

WHEREAS, the Company and the Executive are parties to that certain Executive Severance and Change in Control Agreement, dated as of October 24, 2016 (as the same may be amended, restated, supplemented, or otherwise modified from time to time, the "Agreement"); and

 

WHEREAS, the Company and the Executive desire certain amendments to the Agreement and, subject to the terms and conditions hereof, the parties have agreed to effect such amendments through this Amendment.

 

NOW, THEREFORE, in consideration of the premises and the mutual agreements set forth herein, the Company and the Executive hereby agree as follows:

 

1.             Amendments. The Agreement is hereby amended as follows:

 

a.     The preamble to the Agreement is hereby amended by inserting the word "and" after the first recital contained therein and deleting the second and third recitals in their entirety.

 

b.     The definition of "Cause" in Section 1(B) of the Agreement is hereby amended and restated in its entirety to read as follows:

 

"Cause" for termination by the Company of the Executive's employment shall mean (i) failure by the Executive to perform the essential functions of the Executive’s position with the Company, other than any failure resulting from the Executive's incapacity due to physical or mental disability; (ii) failure to comply with any lawful directive by the Board; (iii) a material violation by the Executive of the corporate governance guidelines, code of ethics, insider trading policy, governance policy, or other policy of the Company; (iv) a breach of any fiduciary duty to Company; (v) misconduct in the course and scope of employment by the Executive that is injurious to the Company, from a monetary or reputational standpoint; (vi) any attempt to willfully obtain any personal profit from any transaction which is adverse to the interests of the Company or any of its subsidiaries and in which the Company or any of its subsidiaries has an interest or any other act of fraud or embezzlement against the Company, any of its subsidiaries or any of its customers or suppliers; (vii) a breach by the Executive of any of the covenants contained in Sections 14, 15, and 16 of this Agreement; (viii) the repeated use of alcohol by the Executive that interferes with the Executive's duties, the use of illegal drugs by the Executive, or a violation by the Executive of the drug and/or alcohol policies of the Company; (ix) violation of any applicable law, rule or regulation, including without limitation the Sarbanes-Oxley Act of 2002 or other federal or state securities law, rule, or regulation; or (x) the conviction or plea of guilty or nolo contendere to a felony or a misdemeanor involving moral turpitude. With respect to subsections (i), (ii) and (iii) above, the Executive shall be notified in writing (including via email) of any alleged failure, breach or violation, such notice shall specify in reasonable detail the facts and circumstances claimed to constitute Cause under subsections (i), (ii) or (iii) as applicable and the Executive shall be given at least fifteen (15) calendar days to remedy or cure any failure, breach or violation. For purposes of this definition following a Change in Control, the Board’s determination of “Cause” must be made in good faith.

  

 

 

 

 

c.     Section 2 of the Agreement is hereby amended and restated in its entirety to read as follows:

 

“This Agreement shall be effective as of the date set forth in the first paragraph of this Agreement and shall continue in effect until the Date of Termination or the death of the Executive; provided, that all covenants (including, without limitation, the covenants of the Executive contained in Sections 14, 15, and 16 of this Agreement and the covenants of the Company following a Payment Trigger) shall survive in accordance with their terms.” 

 

d.     Sections 4(B)(i)(a) through (c) of the Agreement are hereby amended and restated in their entirety to read as follows:

 

(a)     the Company shall pay the Executive monthly payments, in cash, equal to one-twelfth (1/12) of the Executive's Annual Base Salary in effect immediately prior to the Date of Termination, on or as near as practicable to the same date in each month as monthly installments (each of which shall be considered a separate "payment" for purposes of Code Section 409A, as defined in Section 23) of the Annual Base Salary were made to the Executive prior to the Date of Termination, for a period of twelve (12) months following the Date of Termination or such lesser number of months Executive is employed by the Company (pro-rated for partial months);

 

(b)     the Company shall pay to the Executive a lump sum amount, in cash, if and to the extent earned, under any short term cash incentive compensation plan for the fiscal year in which the Date of Termination occurs, which plan has been adopted by the Executive Compensation Committee of the Board prior to the Date of Termination, pro-rated for the number of days Executive was employed by the Company in the applicable fiscal year through the Date of Termination, and payable at the time and on the same basis as paid to recipients still employed by the Company; and 

 

(c)     the Company shall pay the Executive any other amounts (other than any payment of short term cash incentive compensation described in Section 4(B)(i)(b) above or Section 4(C) below) that may be due to the Executive under any employee welfare, benefit, vacation, equity, or long term incentive plan then in effect to the extent the Executive is an eligible participant, subject to and upon the terms and conditions set forth in any such plan.

 

e.     Sections 4(B)(ii)(a) through (c) of the Agreement are hereby amended and restated in their entirety to read as follows:

 

(a)     the Company shall pay the Executive a lump sum payment, in cash, equal to the sum of one hundred fifty percent (150%) of the Executive's Annual Base Salary in effect immediately prior to the Date of Termination, provided that if the Change in Control does not constitute a change in control event as defined in Code Section 409A, then the portion of the lump sum payment, if any, that is considered deferred compensation subject to Code Section 409A shall be paid in installments as described in Section 4(B)(i)(a);

 

(b)     to the extent that the Executive has established full-time residency in the Ft. Smith/Van Buren, Arkansas area, the Company shall pay to the Executive a lump sum payment, in cash, equal to amount set forth on the signature page to this Agreement and identified as relocation services benefit, to defray the Executive's costs of relocation services;

  

 

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(c)     the Company shall pay to the Executive a lump sum amount, in cash, equal to one hundred fifty percent (150%) of the target amount of any short term incentive cash compensation plan for the fiscal year in which the Date of Termination occurs, which plan has been adopted by the Executive Compensation Committee of the Board prior to the Date of Termination, that would have been paid to the Executive for the fiscal year in which the Date of Termination occurs, assuming all performance and other vesting criteria were satisfied for such year; provided, that if no short term cash incentive cash compensation plan has been adopted for the fiscal year in which the Date of Termination occurs, such target amount will be equal to the Executive’s target amount under the short term incentive cash compensation plan adopted by the Executive Compensation Committee of the Board for the fiscal year immediately preceding the fiscal year in which the Date of Termination occurs;

 

f.     Section 4(B)(ii)(e) of the Agreement is hereby amended and restated in its entirety to read as follows:

 

(e)     the Company shall pay the Executive any other amounts (other than any payment of short term cash incentive compensation described in Section 4(B)(ii)(c) or Section 4(C)) that may be due the Executive under any employee welfare, benefit, vacation, equity, or long term incentive plan then in effect to the extent the Executive is an eligible participant, subject to and upon the terms and conditions set forth in any such plan.

 

g.     Sections 4(C) and (D) of the Agreement are hereby amended and restated in their entirety to read as follows:

 

(C)     Notwithstanding any provision of any incentive compensation plan adopted by the Executive Compensation Committee of the Board prior to the Date of Termination, and in addition to any payments under Paragraph (B) hereof, the Company shall pay to the Executive a lump sum amount, in cash, equal to the amount of any cash incentive compensation that has been awarded to and earned by the Executive under any cash incentive compensation plan adopted by the Executive Compensation Committee of the Board for a completed fiscal year preceding the occurrence of the Date of Termination but that has not yet been paid to the Executive.

 

(D)     The payments provided for in subparagraph (ii)(a) of Paragraph (B) and, if applicable and due upon the occurrence of a Payment Trigger during the term of this Agreement by reason of the circumstances described in subparagraph (ii) of Paragraph (L) of Section 1, Paragraph (C) of this Section 4 shall be made within a reasonable time following the expiration of the applicable waiting periods following execution and delivery of the General Release (as hereinafter defined).

 

h.     Section 4(E) of the Agreement is hereby amended by deleting the third sentence contained therein in its entirety and replacing it with the following:

 

"Notwithstanding anything to the contrary contained herein, no severance benefits or other payments required under this Agreement shall be paid until the General Release is signed and the revocation period has expired, and any amounts that would otherwise have been paid prior to such date shall be paid within a reasonable time after such date, without interest."

  

 

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i.     Section 5(A) of the Agreement is hereby amended and restated in its entirety to read as follows:

 

(A)     During the term of this Agreement, any purported termination of the Executive’s employment (other than by reason of death) shall be communicated by a Notice of Termination from one party hereto to the other party hereto in accordance with this Section 5(A). For purposes of this Agreement, a “Notice of Termination” shall mean, (i) in the case of a termination of the Executive’s employment by the Company without Cause, a written notice of termination, (ii) in the case of a termination of the Executive’s employment by the Company for Cause, a written notice of termination, which will indicate the conduct set forth in the definition of Cause in Paragraph (B) of Section 1 that the Executive was found to have violated, and (iii) in the case of the Executive terminating his or her employment with the Company, a written or verbal notice of termination; provided, that a Notice of Termination by the Executive in the case of a Constructive Termination shall specify in reasonable detail the event or circumstance constituting the Constructive Termination under Paragraph (F) of Section 1 of this Agreement, and such notice of Constructive Termination must be provided by the Executive to the Company within sixty (60) days of the initial existence of the condition giving rise to the Constructive Termination. Notwithstanding anything to the contrary contained herein, if the Executive engages in conduct that is reasonably believed to be imminently harmful to the Company, the Company may terminate the Executive’s employment by giving the Executive a verbal Notice of Termination, which may be effective immediately, and which shall be effective for purposes of this Agreement.

 

(B)     "For purposes of this Agreement, a "Notice of Termination" shall mean a written or verbal notice of termination in accordance with Paragraph (A) of Section 5. In the case of a Notice of Termination for Cause, the Notice of Termination will indicate the conduct set forth in the definition of Cause in Paragraph (B) of Section 1 that the Executive was found to have violated."

 

j.     Section 5(B)(ii) of the Agreement is hereby amended and restated in its entirety to read as follows:

 

(ii)     if the Executive's employment is terminated by the Company for any other reason except in the case of a termination for Cause, the date specified in the Notice of Termination;

 

k.     Section 7(A) of the Agreement is hereby amended by (i) replacing the words "Crawford or Sebastian County, Arkansas" contained therein with the words "Crawford County, Arkansas" and (ii) inserting the following after the last sentence thereof: "The Company shall be entitled, in addition to any other rights it may have, to obtain injunctive relief to restrain any breach or threatened breach of, or to otherwise seek specific performance of the Executive's obligations under, any of the covenants contained in Section 14, 15, or 16 of this Agreement during the pendency of any dispute or controversy arising under or in connection with this Agreement, and the Company shall not be obligated to post bond or other security in seeking such relief."

 

l.     Section 14 of the Agreement is hereby amended by (i) replacing the phrase "prior to termination" everywhere contained therein with the words "prior to the Date of Termination" and (ii) replacing the words "Executive's termination" contained in the second sentence thereof with the words "Date of Termination."

 

m.     Exhibit A to the Agreement is hereby amended and restated in its entirety as set forth in Exhibit A hereto.

 

2.             Effect of Amendment. All of the terms of the Agreement, as amended hereby, shall be and remain in full force and effect and shall constitute the legal, valid, binding, and enforceable obligations of the Company and the Executive.

  

 

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3.             Binding Nature. This Amendment shall be binding upon and inure to the benefit of the parties hereto, their respective successors, successors-in-titles, and assigns.

 

4.             Governing Law. The validity, interpretation, construction, and performance of this Amendment shall be governed by the internal, substantive laws of the State of Delaware, without giving effect to the law or principles of conflict of laws of any jurisdiction.

 

5.            Miscellaneous. No provision of the Amendment may be modified, waived, or discharged unless such waiver, modification, or discharge is agreed to in writing and signed by the Executive and an officer of the Company specifically designated by the Board.

 

6.            Counterparts. This Amendment may be executed in one or more counterparts, each of which will be deemed to be an original, but all of which together will constitute one and the same instrument. Facsimile or electronic counterparts will be effective.

 

7.             Entire Understanding. This Amendment sets forth the entire understanding of the parties with respect to the matters set forth herein, and shall supersede any prior negotiations or agreements, whether written or oral, with respect thereto.

 

 

[REMAINDER OF PAGE LEFT BLANK INTENTIONALLY]

 

 

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IN WITNESS WHEREOF, the parties have signed this Amendment as of the date set forth above.

 

	
 
	
USA TRUCK, INC.  

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
By:
	
USA Truck

	
 
	
 
	
 

	
 
	
Name:
	
James Reed

	
 
	
 
	
 

	
 
	
Title:
	
CEO

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
JAMES REED  

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
/s/ James D. Reed

 

 

 

 

 

Exhibit A

 

General Release

 

In exchange for the payments and benefits described in the agreement to which this release is attached (the “Agreement”), Executive, on his own behalf and on behalf of his heirs, executors, administrators, assigns and successors, does hereby covenant not to sue and acknowledges full and complete satisfaction of and hereby releases, absolves and discharges the Company and its Affiliates and their successors and assigns, parents, subsidiaries and affiliates, past and present, as well as their trustees, directors, officers, agents, attorneys, insurers, stockholders and employees, past and present, and each of them (hereinafter collectively referred to as “Releasees”), with respect to and from any and all claims, demands, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations, debts, wages, vacation pay, expenses, attorneys’ fees, damages, judgments, orders and liabilities of whatever kind or nature in law, equity or otherwise, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden, which Executive now owns or holds or has at any time heretofore owned or held as against said Releasees, or any of them, arising out of or in any way connected with his employment or other relationships with the Company or its Affiliates, or his separation from any such employment or other relationships (collectively, “Released Claims”), including specifically, but without limiting the generality of the foregoing, any claim under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Age Discrimination in Employment Act of 1967, as amended by the Older Worker’s Benefit Protection Act (“ADEA”), the federal Family and Medical Leave Act, the Fair Labor Standards Act, the Equal Pay Act, the Employee Retirement Income Security Act of 1974, the Worker Adjustment and Retraining Notification Act, or any other employment related federal, state or local law, regulation or ordinance; provided, however, that the foregoing release will not include or affect (and the following are expressly excluded from any Released Claims): (i) Executive’s rights under the Agreement; (ii) Executive’s rights to file claims for workers’ compensation or unemployment insurance benefits, (iii) Executive’s regular and usual salary accrued prior to the Separation Date, accrued but unused vacation through the Separation Date, COBRA continuation coverage and life insurance conversion rights, if any, and (iv) Executive’s rights to provide information, assist or participate in any investigation, proceedings, or litigation concerning any administrative claim with any government agency under any applicable law that protects such rights, or to file such a claim. This General Release does not (i) limit Executive's ability to file a charge or complaint with the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (“Government Agencies”), (ii) limit Executive’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company, or (iii) limit Executive’s right to receive an award for information provided to any Government Agencies.

 

Executive acknowledges that the non-disparagement and confidentiality provisions contained in the Agreement infringe on Executive’s rights described in the foregoing sentence, and Executive agrees that he is aware of and has consented to such infringement. Furthermore, notwithstanding the foregoing release, Executive will continue to be entitled to all of his respective statutory rights to indemnification, including, without limitation, indemnification pursuant to the Company’s organizational documents, insurance policies or under applicable law to the same extent Executive would have had the right to be indemnified absent this release.

 

Executive acknowledges that he is waiving and releasing any rights he may have under the ADEA and that this waiver and release is knowing and voluntary. Executive and the Company agree that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective Date (as hereinafter defined) of the Agreement. Executive acknowledges that the consideration given for the Agreement is in addition to anything of value to which he was already entitled. Executive further acknowledges that he has been advised by this writing that:

  

 

 

 

 

(a)     He should consult with an attorney prior to executing the Agreement;

 

(b)     He has at least twenty-one (21) days within which to consider the Agreement, but if he wishes to sign the Agreement earlier, he may do so by signing the Acknowledgment and Waiver of the 21-day consideration period in the form attached as Exhibit B to the Agreement;

 

(c)     He has seven (7) days following his execution of the Agreement to revoke the Agreement;

 

(d)     This Agreement will not be effective until the eighth day after Executive executes and does not revoke the Agreement (the “Effective Date”); and

 

(e)     Nothing in the Agreement prevents or precludes Executive from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs from doing so, unless specifically authorized by federal law. Any revocation must be in writing and hand delivered to the Company by close of business on or before the seventh day from the date that Executive signs the Agreement. In the event that Executive exercises his right of revocation, neither Executive nor any member of the Company or its Affiliates will have any further rights or obligations under the Agreement.

 

Executive represents and warrants that he has no present knowledge of any injury, illness or disease to him that is or might be compensable as a workers’ compensation claim or similar claim for workplace injuries, illnesses or diseases.

 

Terms used herein and not otherwise defined will have the meanings set forth in the Agreement to which this Release was attached. 

 

[Signature page follows]

 

 

 

 

 

Intending to be legally bound, I have signed this General Release as of the date written below.

 

	
Signature:
	
/s/ James D. Reed

	
 
	
James Reed 

 

	
 
	
Date Signed: 

	
 
	
 1-31-17

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