Document:

Ex-10.97 Stanley Shadden Employment Agreement

 

Exhibit 10.97

DRAFT: 4/18/03

EMPLOYMENT AGREEMENT

     THIS AGREEMENT is made as of the ___day of ___, 2003, by and between XRG Logistics, a
Florida corporation having its principal office located at 5301 W. Cypress Street, Suite 111, Tampa
Florida 33607 (hereinafter “XRGL”), and Stanley Shadden, an individual residing in ___County,
Tennessee (hereinafter “Executive”).

Witnesseth:

     Concurrently with the execution and delivery of this Agreement, XRG, Inc., a Delaware
corporation and the parent corporation of XGRL (“XRG”), is purchasing the stock of XRG Logistics,
Inc., a Florida corporation (“Stock Purchase”). Upon the consummation of the Stock Purchase, XRGL
desires to employ the Executive, and the Executive wishes to accept such employment with XRGL, upon
the terms and conditions set forth in this Agreement.

     Accordingly, in consideration of the foregoing and the respective covenants of the parties set
forth herein, the parties, intending to be legally bound, agree as follows:

     1. Employment. XRGL hereby employs the Executive and the Executive hereby accepts
employment by XRGL upon the terms and conditions hereinafter set forth. All previous employment
agreements or other terms and conditions of employment between any other entity and the Executive
are hereby terminated and are superseded by this Agreement.

     2. Term. Subject to the provisions of Paragraph 11 hereof, the term of the
Executive’s employment by XRGL under this Agreement shall commence on the date hereof and shall
continue for a term of five (5) years (“Original Term”). Expiration of the Original Term shall not
prevent XRGL from continuing the Executive’s employment beyond such expiration on such terms as may
be mutually satisfactory to XRGL and the Executive. The term of the Executive’s employment
hereunder, including any extension beyond the Original Term, is hereinafter referred to as the
“Employment Period”.

     3. Duties. The Executive shall be employed as the President of XRGL and shall have
such duties as are assigned or delegated to him from time to time by the Board of Directors of
XRGL. The Executive shall devote such time and attention during normal business hours to the
business of XRGL as determined by the Board of Directors of XRGL. Nothing herein, however, shall
prevent the Executive from engaging in additional activities in connection with personal
investments and community affairs that do not interfere or conflict with his duties hereunder.

     4. Base Compensation. The Executive shall be paid a salary at an annual rate of
$96,000 during the Original Term, which shall be payable in installments in accordance with XRGL’s
customary payroll practices, but no less frequently than monthly. The salary to be paid during any
extension of the Employment Period beyond the Original Term will be as agreed to by XRGL and the
Executive.

     5. Quarterly Bonus. The Executive shall be entitled to participate in a quarterly
bonus program. The quarterly bonus program is described in Exhibit A.

 

 

     6. Stock. At the closing of the Stock Purchase, XRG will issue 50,000 shares of XRG
common stock to the Executive. The Executive will be entitled to an additional 50,000 shares of XRG
stock at the one-year anniversary of his employment. In addition, the Executive will be entitled
to a bonus of 50,000 shares of XRG stock if XRGL of which the Executive is President, during the
first year of his contract, exceeds gross revenue of $20 million with operating costs, as described
in Exhibit A “The quarterly bonus program”, not exceeding 85% of gross revenue.

     7. Automobile Expense Allowance. During the Employment Period, XRGL shall pay to the
Executive an automobile expense allowance of $500 per month, which shall be paid to Executive on
the first business day of each month. This amount covers automobile purchase or lease payments and
automobile insurance payments.

     8. Expenses. Subject to compliance by the Executive with such policies regarding
expenses and expense reimbursement as may be adopted from time to time by XRGL, the Executive is
authorized to incur reasonable expenses in the performance of his duties hereunder in furtherance
of the business and affairs of XRGL and XRGL will reimburse the Executive for all such reasonable
expenses, in all cases upon the presentation by the Executive of an itemized account satisfactory
to XRGL in substantiation of such expenses.

     9. Vacations. The Executive shall be entitled to paid vacations in accordance with
the policies of XRGL in effect, from time to time, as determined by the Board of Directors of XRGL;
but in any event, Executive shall be entitled to not less than one (1) week per year of paid
vacation.

     10. Other Employee Benefits. The Executive shall, during the Employment Period, be
eligible to participate in such pension, profit sharing, bonus, life insurance, hospitalization and
medical and other employee benefit plans of XRGL which may be in effect from time to time to the
extent he is eligible under the terms of those plans; provided, however, that the allocation of
benefits under any bonus or other plan which provides that allocations thereunder shall be in the
discretion of the Board of Directors of XRGL shall be as determined from time to time solely by the
Board of Directors; but in any event, Executive shall be entitled to not less than group insurance
with HMO plan.

     11. Termination.

          (a) The Employment Period, the Executive’s compensation and any and all other rights of the
Executive under this Agreement or otherwise as an employee of XRGL shall terminate (except as to
compensation and rights accrued prior to the effective date of such termination): (i) upon the
death of the Executive; (ii) upon fourteen (14) days prior written notice by XRGL to Executive in
the event of the physical or mental disability of the Executive (as defined in Paragraph 11 (b)
below); (iii) for Cause (as defined in Paragraph 11 (c) below), immediately upon the giving of
written notice thereof by XRGL to the Executive, or at such later time as such notice may specify;
or (iv) without Cause at any time after the initial one-year term hereof, upon not less than sixty
(60) days’ prior written notice by either the Executive or XRGL to the other party and subject to
Paragraph 11 (d) below.

          (b) For purposes of this Agreement, the Executive shall be deemed to have a “physical or
mental disability” if for medical reasons he has been unable to perform his duties for thirty (30)
consecutive days or ninety (90) days in any 12-month period, all as determined in good faith by a
physician mutually acceptable to Executive and the Board of Directors of XRGL.

          (c) For purposes of this Agreement, the term “Cause” shall be deemed to mean the Executive’s
conviction of any crime, the Executive’s commission of any act of willful misconduct or dishonesty,
or the material breach of any provision of this Agreement by the Executive.

 

 

          (d) In the event the Employment Period is terminated by XRGL for any reason other than for
Cause or for the death or the physical or mental disability of the Executive, XRGL shall pay to the
Executive, as XRGL ‘s sole and exclusive obligation related to such termination, the compensation
and annual bonuses provided for in this Agreement for the remainder of the Original Term. The
Executive shall also be entitled to a continuation of medical and life insurance benefits, on the
same terms and conditions as existed immediately prior to such termination, for the remainder of
the Original Term.

          (e) Executive may terminate his employment for good reason. For purposes of this Agreement,
“good reason” shall mean a failure by XRGL to comply with any material provision of this Agreement,
which failure is not cured within fourteen (14) days after a written notice of noncompliance has
been given by Executive to XRGL , provided that the foregoing notice and cure provisions shall not
apply to any failure by XRGL to comply with its payment obligations hereunder.

     12. Non-Disclosure Covenant. The Executive acknowledges that (i) during the
Employment Period and as a part of his employment, the Executive will be afforded access to
Confidential Information (as hereinafter defined); (ii) public disclosure of Confidential
Information could have a material adverse impact on XRG, on XRGL or on the other subsidiaries of
XRG (hereinafter “XRG Companies”) and their respective businesses; (iii) the Executive possesses
substantial technical expertise and skill with respect to the business of the XRG Companies; and
(iv) XRG has required the Executive to make the covenants set forth in this Section 12 as a
condition to its purchase of the stock of XRG Logistics, Inc. and the Executive is willing to do
so. The Executive acknowledges that the provisions of this Section 12 are reasonable and necessary
with respect to the use of Confidential Information.

     As used in this Agreement, the term “Confidential Information” shall mean inventions and
improvements, ideas, plans, processes, techniques, technology, customer lists, business methods,
trade secrets as defined under applicable law, and other information developed or acquired by or on
behalf of the XRG Companies which relate to or affect any aspect of the business of the XRG
Companies. Confidential Information shall not include information that becomes generally known to
the public through no act of Executive in breach of this Agreement.

     In consideration of the foregoing and of continued employment of the Executive by XRGL and the
compensation and benefits paid or provided, and to be paid or provided, to the Executive by XRGL ,
the Executive hereby covenants and agrees as follows:

     Both during and after the Employment Period, the Executive shall not, without XRGL ‘s prior
written consent, disclose to any third party, or use for any purpose other than for the exclusive
benefit of the XRG Companies, any Confidential Information.

     The Executive agrees that disclosures made by the XRG Companies to governmental authorities,
to their customers or potential customers, to their suppliers or potential suppliers, to their
employees or potential employees, to their consultants or potential consultants or disclosures made
by the XRG Companies in any litigation or administrative or governmental proceedings shall not mean
that the matters so disclosed are available to the general public.

     The Executive shall not remove from the premises of the XRG Companies, except when appropriate
to the pursuit of their business, any document, record, notebook, plan, model, component, or
device. The Executive recognizes that, as between the XRG Companies and the Executive, all such
documents, records, notebooks, plans, models, components or devices, whether or not developed by
the Executive, are the exclusive property of the XRG Companies. In the event of termination of the
Executive’s employment with XRGL , or upon the earlier request of any of the XRG Companies during
the Employment Period, the

 

 

Executive shall return to the XRG Companies all documents, records, notebooks, plans, models,
components, and devices in the Executive’s possession or subject to the Executive’s control. The
Executive shall not retain any copies, abstracts, sketches or other physical embodiment of any such
document, record, notebook, plan, model, component or device.

     13. Covenant Not to Compete: Non-Interference.

          (a) The Executive acknowledges that the services to be performed under this Agreement are of a
special and unique character, that the businesses of the XRG Companies are national in scope, that
their services are marketed throughout the United States, and that the XRG Companies compete with
other organizations that are or could be located in any part of the United States. The Executive
further acknowledges that XRG requires the Executive to agree to the provisions of this Section 13
as a condition to its purchase of the stock of XRG Logistics, Inc. In consideration of the
foregoing, and in consideration of his continued employment by XRGL the Executive hereby covenants
and agrees that he shall not:

               (i) during the Employment Period, and for a period of five (5) years thereafter, directly or
indirectly engage or invest in, own, manage, operate, control or participate in the ownership,
management, operation or control of, be employed, associated or in any manner connected with, or
render services or advice to, any business whose services or activities compete, in whole or in
part, with the services or activities of the XRG Companies within the geographical territories
within the United States in which the XRG Companies at any time during the Employment Period
conduct their respective businesses;

               (ii) whether for the Executive’s own account or for the account of any other person, at any
time during the Employment Period, and for a period of five (5) years thereafter, solicit the
business of any person or entity known by the Executive to be a customer of the XRG Companies,
whether or not the Executive had personal contact with such person or entity during his employment
with XRGL and

               (iii) whether for the Executive’s own account or the account of any other person at any time
during the Employment Period and for a period of five (5) years thereafter, solicit, employ or
otherwise engage as an employee, independent contractor or otherwise, any person who is or was an
employee of any of the XRG Companies during the Executive’s Employment Period, or in any manner
induce or attempt to induce any employee of any of the XRG Companies to terminate his/her
employment with such company.

     It is understood by and between the parties hereto that the foregoing covenants by the
Executive set forth in this Section 13 are essential elements of this Agreement and that but for
the agreement of the Executive to comply with such covenants, XRGL would not have entered into this
Agreement. XRGL and the Executive have independently consulted their respective counsel and have
been advised in all respects concerning the reasonableness and propriety of such covenants, with
specific regard to the nature of the businesses conducted by the XRG Companies.

          (b) Notwithstanding any provision of this Agreement to the contrary, the restrictions set
forth in Section 13(a) hereof shall not apply in the event that XRGL terminates the Employment
Period during the Original Term for any reason other than for Cause or the physical or mental
disability of the Executive.

          (c) Notwithstanding that the Executive’s employment hereunder may expire or be terminated as
provided in Section 11 hereof, this Agreement shall continue in full force and effect insofar as is
necessary to enforce the covenants and agreements of the Executive contained in Section 13.

 

 

     14. Injunctive Relief. The Executive acknowledges that the damages that would be
suffered by the XRG Companies as a result of a breach of the provisions of Section 12 or 13 of this
Agreement may not be calculable, and that an award of a monetary judgment to any of the XRG
Companies for such a breach would be an inadequate remedy. Consequently, any of the XRG Companies
shall have the right, in addition to any other rights it may have, to obtain, in any court of
competent jurisdiction, injunctive relief to restrain any breach or threatened breach hereof or
otherwise to specifically enforce any of the provisions of this Agreement and such company shall
not be obligated to post bond or other security in seeking such relief.

     15. Definition of “person”. The term “person” shall mean any individual, corporation,
firm, association, partnership, limited liability company or other legal entity or other form of
business organization.

     16. Compliance with Other Agreements. The Executive represents and warrants that the
execution and delivery by the Executive of this Agreement and the performance by the Executive of
his obligations hereunder will not, with or without the giving of notice or the passage of time, or
both, (i) violate any judgment, writ, injunction or order of any court, arbitrator or governmental
agency applicable to the Executive; or (ii) conflict with, result in the breach of any provisions
of or the termination of, or constitute a default under, any agreement to which the Executive is a
party or by which he is or may be bound.

     17. Waiver of Breach. The waiver by any party hereto of a breach of any provision of
this Agreement shall not operate or be construed as a waiver of any subsequent breach.

     18. Binding Effect; Benefits. This Agreement shall inure to the benefit of, and shall
be binding upon, the parties hereto and their respective successors, assigns, heirs and legal
representatives, including, without limitation, any entity with which XRGL may merge or consolidate
or to which it may transfer all or substantially all of its assets. Insofar as the Executive is
concerned, this Agreement, being personal, may not be assigned.

     19. Notices. All notices and other communications which are required or may be given
under this Agreement shall be in writing and shall be deemed to have been duly given when delivered
in person or three (3) days after being mailed by registered or certified first class mail, postage
prepaid.

     20. Entire Agreement; Amendments. This Agreement contains the entire agreement of the
parties with respect to the subject matter hereof and supersedes all prior agreements and
understandings, oral or written, between the parties hereto with respect to the subject matter
hereof. This Agreement may not be changed orally, but only by an agreement in writing signed by
the party against whom any waiver, change, amendment, modification or discharge is sought.

     21. Severability. If any provision or provisions of this Agreement shall be declared
invalid or unenforceable, any such provision or provisions shall be deemed severed from the
remainder of the provisions contained herein which shall otherwise remain in full force and effect.

     22. Governing Law; Consent to Jurisdiction. This Agreement shall be governed by and
construed in accordance with the laws of the State of Florida without giving effect to the
principles of conflicts of law thereof. The Executive hereby submits to the jurisdiction and venue
of the Circuit Court of the State of Florida for the County of Hillsborough or the United States
District Court for -the Middle District of Florida, Tampa Division, for purposes of any legal
action related hereto. The Executive agrees that service upon him in any such action may be made
by first class mail, certified or registered.

     23. Dispute Resolution. Any dispute, controversy or claim arising out of or relating
to this Agreement (except for matters covered by Section 14 hereof) shall be settled by arbitration
by the American

 

 

Arbitration Association (“AAA”) in accordance with the then current rules in effect governing
arbitration of such matters. The arbitration shall be conducted in Tampa, Florida by three (3)
independent and impartial arbitrators. The award rendered by the arbitrators shall be final and a
judgment may be entered upon it according to applicable law in any court having jurisdiction. The
arbitrators shall, in the award, allocate the costs and expenses of the arbitration, including AAA
fees and expenses, arbitrator compensation and expenses, the cost of any court reporter or
stenographer employed by the parties and the reasonable attorneys. fees and expenses of the
parties.

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

	 	 	 	 	 
	XRG, Inc.	 	EXECUTIVE:
	a Delaware corporation	 	 
	 
	 	 	 	 
	for XRG Logistics, Inc.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 
	 	 
	 

	 	           Neil Treitman	 	 
	 
	 	 	 	 
	Title: Chief Operating Officer	 	 

Attachment:

Exhibit A — Description of Quarterly Bonus Program

 

 

EXHIBIT A

QUARTERLY BONUS PROGRAM

Stanley Shadden, a participant in the XRG Logistics, Inc quarterly bonus program shall be entitled
to receive, on a quarterly basis, a payment equal to 50% of the “bonus pool” as defined below.

The XRG Logistics, Inc bonus pool shall be determined on a fiscal quarter basis and shall be the
amount (if any) by which the total operating expenses for such quarter are less than 85% of the
total gross revenue for XRG Logistics, Inc for such quarter. If in anyone quarter the calculation
is negative no bonus will be earned, and the negative amount will be carried forward to future
quarters until it is exhausted.

The following items are included in determining quarterly operating expense:

Wages and salaries of all drivers, maintenance, dispatch, sales, and all other operations
personnel designated at the start of each quarter;

Rental space and rental equipment rental related to dispatch or operations;

Depreciation on assets used in dispatch or operations;

Office supplies and equipment related to dispatch or operations;

Utilities related to dispatch or operations;

Debt service interest or lease payments on transportation equipment not including any
payments related to the purchase agreement;

Payments to owner/operators;

Licenses and permits, and any other costs related to the transportation equipment;

Professional fees, consultant fees related to dispatch or operations;

Telephone, fax and broadband lines related to dispatch or operations;

Travel and lodging costs related to dispatch, sales or operations;

Dispatch, sales, or operations employee automobile expenses, medical and benefit expenses,
payroll taxes, and other employee related costs;

“Operations” is defined as the costs directly associated with the operation of the rolling stock,
or transportation costs. A chart of accounts will be developed which will categorize expenses into
transportation costs, or sales, and dispatch costs. All expenses used in calculating the bonus
pool will be recorded in one of these two categories.

Gross revenue will include all revenue invoiced by the company for freight movements, including
brokerage freight. The bonus pool will consist of 85% of all freight revenue and an additional 4%
of all brokerage revenue.Ex-10.98 Larry M. Berry Employemnt Agreement

 

Exhibit 10.98

EMPLOYMENT AGREEMENT

     THIS AGREEMENT is made as of the 1st day of November, 2003, by and between XRG LOGISTICS,
INC., a Florida corporation having its principal office located at 5301 Cypress Street Tampa, FL
33607 (hereinafter “XLI”), and Larry M. Berry, an individual residing in Hopkins County, Kentucky
(hereinafter “Executive”).

Witnesseth:

     XLI desires to employ the Executive, and the Executive wishes to accept such employment with
XLI, upon the terms and conditions set forth in this Agreement.

     Accordingly, in consideration of the foregoing and the respective covenants of the parties set
forth herein, the parties, intending to be legally bound, agree as follows:

     1. Employment. XLI hereby employs the Executive and the Executive hereby accepts
employment by XLI upon the terms and conditions hereinafter set forth. All previous employment
agreements or other terms and conditions of employment between XLI or XRG and the Executive are
hereby terminated and are superseded by this Agreement.

     2. Term. Subject to the provisions of Paragraph 11 hereof, the term of the
Executive’s employment by XLI under this Agreement shall commence on the date hereof and shall
continue for a term of two (2) years (“Original Term”). Expiration of the Original Term shall not
prevent XLI from continuing the Executive’s employment beyond such expiration on such terms as may
be mutually satisfactory to XLI and the Executive. The term of the Executive’s employment
hereunder, including any extension beyond the Original Term; is hereinafter referred to as the
“Employment Period.”

     3. Duties. The Executive shall be employed as the Vice President of Business
Development of XLI and shall have such duties as are assigned or delegated to him from time to time
by the Board of Directors of XLI. The Executive shall devote such time and attention during normal
business hours to the business of XLI as determined by the Board of Directors of XLI. Nothing
herein, however, shall prevent the Executive from engaging in additional activities in connection
with personal investments and community affairs that do not interfere or conflict with his duties
hereunder.

     4. Base Compensation. The Executive shall be paid a salary at an annual rate of one
hundred and fifty thousand dollars ($150,000) during the Original Term, which shall be payable in
installments in accordance with XLI’s customary payroll practices, but no less frequently than
bi-monthly. The salary to be paid during any extension of the Employment Period beyond the
Original Term will be as agreed to by XLI and the Executive.

     5. Commission. The Executive shall be paid a commission of 1/2 of 1% on all billed
revenue by agents and or Company offices introduced to the Company by the

Page 1

 

 

Executive that exceeds ten million dollars ($10,000,000) on an annual basis, during the original
term of this agreement and any extensions. This commission shall be paid monthly on revenue billed
the prior month.

     6. Stock. XRG will issue 225,000 shares of XRG common stock to the Executive by
January 10, 2004.

     7. Automobile Expense Allowance. During the Employment Period, XLI shall pay to the
Executive an automobile expense allowance of $750 per month, which shall be paid to Executive on
the first business day of each month. This amount covers automobile purchase or lease payments and
automobile insurance payments.

     8. Expenses. Subject to compliance by the Executive with such policies regarding
expenses and expense reimbursement as may be adopted from time to time by XLI, the Executive is
authorized to incur reasonable expenses in the performance of his duties hereunder in furtherance
of the business and affairs of XLI and XU will reimburse the Executive for all such reasonable
expenses, in all cases upon the presentation by the Executive of an itemized account satisfactory
to XLI in substantiation of such expenses.

     9. Vacations. The Executive shall be entitled to paid vacations in accordance with
the policies of XLI in effect, from time to time, as determined by the Board of Directors of XLI;
but in any event, Executive shall be entitled to not less than three (3) weeks per year of paid
vacation.

     10. Other Employee Benefits. The Executive shall, during the Employment Period, be
eligible to participate in such pension, profit sharing, bonus, life insurance, hospitalization and
medical and other employee benefit plans of XLI which may be in effect from time to time to the
extent he is eligible under the terms of those plans; provided, however, that the allocation of
benefits under any bonus or other plan which provides that allocations thereunder shall be in the
discretion of the Board of Directors of XLI and shall be as determined from time to time solely by
the Board of Directors. The Executive will be eligible to participate in a stock bonus plan
similar to the plan being created for the EFS transaction.

     11. Termination.

          (a) The Employment Period, the Executive’s compensation and any and all other rights of the
Executive under this Agreement or otherwise as an employee of XLI shall terminate (except as to
compensation and rights accrued prior to the effective date of such termination): (i) upon the
death of the Executive; (ii) upon fourteen (14) days prior written notice by XLI to Executive in
the event of the physical or mental disability of the Executive (as defined in Paragraph 11(b)
below); (iii) for Cause (as defined in Paragraph 11(c) below), immediately upon the giving of
written notice thereof by XLI to the Executive, or at such later time as such notice may specify;
or (iv) without Cause at any time after the initial two-year term hereof, upon not less than sixty
(60) days’ prior written notice by either the Executive or XLI to the other party and subject to
Paragraph 11 (d) below.

Page 2

 

 

          (b) For purposes of this Agreement, the Executive shall be deemed to have a “physical or
mental disability” if for medical reasons he has been unable to perform his duties for thirty (30)
consecutive days or ninety (90) days in any 12-month period, all as determined in good faith by a
physician mutually acceptable to Executive and the Board of Directors of XLI.

          (c) For purposes of this Agreement, the term “Cause” shall be deemed to mean the Executive’s
conviction of any crime (felony or class 8 misdemeanor), the Executive’s commission of any act of
willful misconduct or dishonesty, or the material breach of any provision of this Agreement by the
Executive.

          (d) In the event the Employment Period is terminated by XLI for any reason other than for
Cause or for the death or the physical or mental disability of the Executive, XLI shall pay to the
Executive, as XLI’s sole and exclusive obligation related to such termination, the compensation and
annual bonuses provided for in this Agreement as described in paragraphs 4, 5, 7, 8, and 10, for a
one-year term, payable in a lump sum within 30 days of termination.

          (e) Executive may terminate his employment for good reason. For purposes of this Agreement,
“good reason” shall mean a failure by XLI to comply with any material provision of this Agreement,
which failure is not cured within fourteen (14) days after a written notice of noncompliance has
been given by Executive to XLI.

     12. Non-Disclosure Covenant. The Executive acknowledges that (i) during the
Employment Period and as a part of his employment, the Executive will be afforded access to
Confidential Information (as hereinafter defined); (ii) public disclosure of Confidential
Information could have a material adverse impact on XRG, on XLI or on the other subsidiaries of XRG
(hereinafter “XRG Companies”) and their respective businesses; (iii) the Executive possesses
substantial technical expertise and skill with respect to the business of the XRG Companies;. and
(iv) XRG has required the Executive to make the covenants set forth in this Section 12 as a
condition to its purchase of Express Freight Systems, Incorporated and Freeway Systems,
Incorporated and the Executive is willing to do so. The Executive acknowledges that the provisions
of this Section 12 are reasonable and necessary with respect to the use of Confidential
Information.

     As used in this Agreement, the term “Confidential Information” shall mean agency owner
operator or driver lists or information, inventions and improvements, ideas, plans, processes,
techniques, technology, customer lists, business methods, trade secrets as defined under applicable
law, and other information developed or acquired by or on behalf of the XRG Companies which relate
to or affect any aspect of the business of the XRG Companies. Confidential Information shall not
include information that becomes generally known to the public through no act of Executive in
breach of this Agreement

Page 3

 

 

     In consideration of the foregoing and of continued employment of the Executive by XLI and the
compensation and benefits paid or provided, and to be paid or provided, to the Executive by XLI,
the Executive hereby covenants and agrees as follows:

     Both during and after the Employment Period, the Executive shall not, without XLI’s prior
written consent, disclose to any third party, or use for any purpose other than for the exclusive
benefit of the XRG Companies, any Confidential Information.

     The Executive agrees that disclosures made by the XRG Companies to governmental authorities,
to their customers or potential customers, to their suppliers or potential suppliers, to their
employees or potential employees, to their consultants or potential consultants or disclosures made
by the XRG Companies in any litigation or administrative or governmental proceedings shall not mean
that the matters so disclosed are available to the general public.

     The Executive shall not remove from the premises of the XRG Companies, except when
appropriate. to the pursuit of their business, any document, record, notebook, plan, model,
component, or device. The Executive recognizes that, as between the XRG Companies and the
Executive, all such documents, records, notebooks, plans, models, components or devices, whether or
not developed by the Executive, are the exclusive property of the XRG Companies. In the event of
termination of the Executive’s employment with XLI, or upon the earlier request of any of the XRG
Companies during the Employment Period, the Executive shall return to the XRG Companies all
documents, records, notebooks, plans, models, components, and devices in the Executive’s possession
or subject to the Executive’s control. The Executive shall not retain any copies, abstracts,
sketches or other physical embodiment of any such document, record, notebook, plan, model,
component or device. The Executive agrees that all agency or brokerage business introduced to any
XRG Companies by either the Executive or any associate or employee introduced by the Executive and
which the Employee’s compensation is derived, shall remain the property of any XRG Companies as
long as the Employee is being compensated by any XRG Companies, including any severance
compensation.

     13. Covenant Not to Compete; Non-Interference.

          (a) The Executive acknowledges that the services to be performed under this Agreement are of a
special and unique character, that the businesses of the XRG Companies are national in scope, that
their services are marketed throughout the United States, and that the XRG Companies compete with
other organizations that are or could be located in any part of the United States. The Executive
further acknowledges that XRG requires the Executive to agree to the provisions of this Section 13
as a condition to its purchase of Express Freight Systems, Incorporated and Freeway Systems,
Incorporated. In consideration of the foregoing, and in consideration of his continued employment
by XLI, the Executive hereby covenants and agrees that he shall not:

               (i) during the Employment Period, and for a period of one (1) year thereafter, directly or
indirectly engage or invest in, own, manage, operate, control

Page 4

 

 

or participate in the ownership, management, operation or control of, be employed, associated or in
any manner connected with, or render services or advice to, any business whose services or
activities compete, in whole or in part, with the services or activities of the XRG Companies
within the geographical territories within the United States in which the XRG Companies at any time
during the Employment Period conduct their respective businesses;

               (ii) whether for the Executive’s own account or for the account of any other person, at any
time during the Employment Period, and for a period of one (1) year thereafter, solicit the
business of any person or entity known by the Executive to be a customer of the XRG Companies,
whether or not the Executive had personal contact with such person or entity during his employment
with XLI; and

               (iii) whether for the Executive’s own account or the account of any other person at any time
during the Employment Period and for a period of one (1) year thereafter, solicit, employ or
otherwise engage as an employee, independent contractor or otherwise, any person who is or was an
employee of any of the XRG Companies during the Executive’s Employment Period, or in any manner
induce or attempt to induce any employee of any of the XRG Companies to terminate his/her
employment with such company.

     It is understood by and between the parties hereto that the foregoing covenants by the
Executive set forth in this Section 13 are essential elements of this Agreement and that but for
the agreement of the Executive to comply with such covenants, XLI would not have entered into this
Agreement. XLI and the Executive have independently consulted their respective counsel and have
been advised in all respects concerning the reasonableness and propriety of such covenants, with
specific regard to the nature of the businesses conducted by the XRG Companies.

          (b) Notwithstanding any provision of this Agreement to the contrary, the restrictions set
forth in Section 13(a) hereof shall not apply in the event that XLI terminates the Employment
Period during the Original Term for any reason other than for Cause or the physical or mental
disability of the Executive.

          (c) Notwithstanding that the Executive’s employment hereunder may expire or be terminated as
provided in Section 11 hereof, this Agreement shall continue in full force and effect insofar as is
necessary to enforce the covenants and agreements of the Executive contained in Section 13.

     14. Injunctive Relief. The Executive acknowledges that the damages that would be
suffered by the XRG Companies as a result of a breach of the provisions of Section 12 or 13 of this
Agreement may not be calculable, and that an award of a monetary judgment to any of the XRG
Companies for such a breach would be an inadequate remedy. Consequently, any of the XRG Companies
shall have the right, in addition to any other rights it may have, to obtain, in any court of
competent jurisdiction, injunctive relief to restrain any breach or threatened breach hereof or
otherwise to specifically enforce any of the ,provisions of this Agreement and such company shall
not be obligated to post bond or other security in seeking such relief.

Page 5

 

 

     15. Definition of “person.” The term “person” shall mean any individual, corporation,
firm, association, partnership, limited liability company or other legal entity or other form of
business organization.

     16. Compliance with Other Agreements. The Executive represents and warrants that the
execution and delivery by the Executive of this Agreement and the performance by the Executive of
his obligations hereunder will not, with or without the giving of notice or the passage of time, or
both, (i) violate any judgment, writ, injunction or order of any court, arbitrator or governmental
agency applicable to the Executive; or (ii) conflict with, result in the breach of any provisions
of or the termination of, or constitute a default under, any agreement to which the Executive is a
party or by which he is or may be bound.

     17. Waiver of Breach. The waiver by any party hereto of a breach of any provision of
this Agreement shall not operate or be construed as a waiver of any subsequent breach.

     18. Binding Effect: Benefits. This Agreement shall inure to the benefit of, and shall
be binding upon, the parties hereto and their respective successors, assigns, heirs and legal
representatives, including, without limitation, any entity with which XLI may merge or consolidate
or to which it may transfer all or substantially all of its assets. Insofar as the Executive is
concerned, this Agreement, being personal, may not be assigned.

     19. Notices. All notices and other communications which are required or may be given
under this Agreement shall be in writing and shall be deemed to have been duly given when delivered
in person or three (3) days after being mailed by registered or certified first class mail, postage
prepaid.

     20. Entire Agreement; Amendments. This Agreement contains the entire agreement of the
parties with respect to the subject matter hereof and supersedes all prior agreements and
understandings, oral or written, between the parties hereto with respect to the subject matter
hereof. This Agreement may not be changed orally, but only by an agreement in writing signed by
the party against whom any waiver, change, amendment, modification or discharge is sought.

     21. Severability. If any provision or provisions of this Agreement shall be declared
invalid or unenforceable, any such provision or provisions shall be deemed severed from the
remainder of the provisions contained herein which shall otherwise remain in full force and effect.

     22. Governing Law; Consent to Jurisdiction. This Agreement shall be governed by and
construed in accordance with the laws of the State of Florida without giving effect to the
principles of conflicts of law thereof. The Executive hereby submits to the jurisdiction and venue
of the Circuit Court of the State of Florida for the County of HiIIsborough or the United States
District Court for the Middle District of Florida, Tampa Division, for purposes of any legal action
related hereto. The Executive agrees that

Page 6

 

 

service upon him in any such action may be made by first class mail, certified or registered.

     23. Dispute Resolution. Any dispute, controversy or claim arising out of or relating
to this Agreement (except for matters covered by Section 14 hereof) shall be settled by arbitration
by the American Arbitration Association (“AAA”) in accordance with the then current rules in effect
governing arbitration of such matters. The arbitration shall be conducted in Tampa, Florida by
three (3) independent and impartial arbitrators. The award rendered by the arbitrators shall be
final and a judgment may be entered upon it according to applicable law in any court having
jurisdiction. The arbitrators shall, in the award, allocate the costs and expenses of the
arbitration, including AAA fees and expenses, arbitrator compensation and expenses, the cost of any
court reporter or stenographer employed by the parties and the reasonable attorneys’ fees and
expenses of the parties.

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

	 	 	 	 	 
	XRG LOGISTICS, INC.

	 	EXECUTIVE:
	a Florida corporation

	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

Attachment:

Exhibit A — Description of Express Freight Systems Recruiters Quarterly Bonus Program

Page 7

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