Document:

Exhibit 10.1

NOTE: Execution of this Adoption Agreement creates a legal liability of the Employer with significant tax consequences to the Employer and Participants. Principal Life Insurance Company disclaims all liability for the legal and tax consequences which result from the elections made by the Employer in this Adoption Agreement.

Principal Life Insurance Company, Raleigh, NC 27612

A member of the Principal Financial Group

 

THE EXECUTIVE NONQUALIFIED EXCESS PLAN

ADOPTION AGREEMENT

THIS AGREEMENT is the adoption by U.S. Xpress Enterprises, Inc. (the "Company") of the Executive Nonqualified Excess Plan ("Plan").

W I T N E S S E T H

WHEREAS, the Company desires to adopt the Plan as an unfunded, nonqualified deferred compensation plan; and

WHEREAS, the provisions of the Plan are intended to comply with the requirements of Section 409A of the Code and the regulations thereunder and shall apply to amounts subject to section 409A; and

WHEREAS, the Company has been advised by Principal Life Insurance Company to obtain legal and tax advice from its professional advisors before adopting the Plan,

NOW, THEREFORE, the Company hereby adopts the Plan in accordance with the terms and conditions set forth in this Adoption Agreement:

ARTICLE I

Terms used in this Adoption Agreement shall have the same meaning as in the Plan, unless some other meaning is expressly herein set forth. The Employer hereby represents and warrants that the Plan has been adopted by the Employer upon proper authorization and the Employer hereby elects to adopt the Plan for the benefit of its Participants as referred to in the Plan. By the execution of this Adoption Agreement, the Employer hereby agrees to be bound by the terms of the Plan.

ARTICLE II

The Employer hereby makes the following designations or elections for the purpose of the Plan:

2.6          Committee:The duties of the Committee set forth in the Plan shall be satisfied by:

	
XX

	
(a)

	
Company.

	 	 	 
	
__

	
(b)

	
The administrative committee appointed by the Board to serve at the pleasure of the Board.

	 	 	 
	
__

	
(c)

	
Board.

	 	 	 
	
__

	
(d)

	
Other (specify):___________________________.

 

2.8          Compensation:The “Compensation” of a Participant shall mean all of a Participant’s:

	 	
XX

	
(a)

	
Base salary.

	 	 	 	 
	 	
XX

	
(b)

	
Service Bonus.

	 	 	 	 
	 	 	 	
__

	
Service Bonus earned from 1/1 – 12/31, paid on or around first quarter of the following Plan Year.

	 	 	 	 
	 	 	 	
__

	
Service Bonus earned each calendar quarter, paid on or around the following calendar quarter.

	 	 	 	 
	 	 	 	
XX

	
Service Bonus with no defined earnings period (e.g. a “spot bonus”).

	 	 	 	 
	 	
XX

	
(c)

	
Performance-Based Compensation earned in a period of 12 months or more.

	 	 	 	 
	 	 	 	
XX

	
Performance Based Bonus earned from 1/1 -12/31, paid on or around first quarter the following Plan Year and whose elections must be made no later than 6/30 of the Plan Year it is earned.

	 	 	 	 
	 	 	 	
__

	
Performance Based Bonus earned from _______, paid on or around ________ the following Plan Year and whose elections must be made no later than _______ of the Plan Year it is earned.

	 	 	 	 
	 	
XX

	
(d)

	
Commissions.

	 	 	 	 
	 	
XX

	
(e)

	
Compensation received as an Independent Contractor reportable on Form 1099.

	 	 	 	 
	 	
XX

	
(f)

	
Other: An amount equivalent to 401k refund.

2.9          Crediting Date:The Deferred Compensation Account of a Participant shall be credited as follows:

Participant Deferral Credits at the time designated below:

	 	
XX

	
(a)

	
On any business day as specified by the Employer.

	 	 	 	 
	 	
__

	
(b)

	
Each pay day as reported by the Employer.

	 	 	 	 
	 	
__

	
(c)

	
The last business day of each payroll period during the Plan Year.

Employer Credits at the time designated below:

	 	
XX

	
(a)

	
On any business day as specified by the Employer.

2

2.13          Effective Date:

	 	
__

	
(a)

	
This is a newly-established Plan, and the Effective Date of the Plan is ____________.

	 	 	 	 
	 	
XX

	
(b)

	
This is an amendment of a plan named Nonqualified Deferred Compensation Plan of U.S. Xpress Enterprises, Inc. dated January 31, 2007 and governing all contributions in the plan through January 31, 2013. This plan was subsequently amended on Februarv 1, 2013 governing all contributions to the plan through August 26, 2018. The Effective Date of this amended Plan is August 27, 2018.

2.20          Normal Retirement Age: The Normal Retirement Age of a Participant shall be:

	 	
XX

	
(a)

	
Age 65.

	 	 	 	 
	 	
__

	
(b)

	
The later of age __ or the _____ anniversary of the participation commencement date. The participation commencement date is the first day of the first Plan Year in which the Participant commenced participation in the Plan.

	 	 	 	 
	 	
__

	
(c)

	
Other: __________________________.

2.23          Participating Employer(s): As of the Effective Date, the following Participating Employer(s) are parties to the Plan:

	 	
Name of Employer

	 	
EIN

	 	 	 	 
	 	
U.S. Xpress Enterprises, Inc.

	 	
62-1378182

2.26          Plan: The name of the Plan is

  Nonqualified Deferred Compensation Plan of U.S. Xpress Enterprises, Inc.

2.28          Plan Year: The Plan Year shall end each year on the last day of the month of December.

2.30          Seniority Date: The date on which a Participant has:

	 	
__

	
(a)

	
Attained age __.

	 	 	 	 
	 	
__

	
(b)

	
Completed __ Years of Service from First Date of Service.

	 	 	 	 
	 	
__

	
(c)

	
Attained age __ and completed __ Years of Service from First Date of Service.

	 	 	 	 
	 	
XX

	
(d)

	
Not applicable – distribution elections for Separation from Service are not based on Seniority Date.

3

4.1          Participant Deferral Credits: Subject to the limitations in Section 4.1 of the Plan, a Participant may elect to have his Compensation (as selected in Section 2.8 of this Adoption Agreement) deferred within the annual limits below by the following percentage or amount as designated in writing to the Committee:

	 	
XX

	
(a)

	
Base salary:

	 	 	 	 	 
	 	 	 	 	
minimum deferral:

	 	
%

	 	 	 	 
	 	 	 	 	
maximum deferral:

	
85

	
%

	 	 	 	 
	 	
XX

	
(b)

	
Service Bonus:

	 	 	 	 
	 	 	 	
XX

	
Service Bonus

	 	 	 	 
	 	 	 	 	
minimum deferral:

	 	
%

	 	 	 	 
	 	 	 	 	
maximum deferral:

	
100

	
%

	 	 	 	 
	 	
XX

	
(c)

	
Performance-Based Compensation:

	 	 	 	 
	 	 	 	
XX

	
Performance Based Bonus:

	 
	 	 	 	 
	 	 	 	 	
minimum deferral:

	 	
%

	 	 	 	 
	 	 	 	 	
maximum deferral:

	
100

	
%

	 	 	 	 
	 	
XX

	
(d)

	
Commissions:

	 	 	 	 
	 	 	 	 	
minimum deferral:

	 	
%

	 	 	 	 
	 	 	 	 	
maximum deferral:

	
100

	
%

	 	 	 	 
	 	
XX

	
(e)

	
Form 1099 Compensation:

	 	 	 	 
	 	 	 	 	
minimum deferral:

	 	
%

	 	 	 	 
	 	 	 	 	
maximum deferral:

	
100

	
%

	 	 	 	 
	 	
XX

	
(f)

	
Other: An amount equivalent to 401k refund

	 	 	 	 
	 	 	 	 	
minimum deferral:

	
100

	
%

	 	 	 	 
	 	 	 	 	
maximum deferral:

	
100

	
%

	 	 	 	 
	 	
__

	
(g)

	
Participant deferrals not allowed.

4

4.1.2      Participant Deferral Credits and Employer Credits – Election Period:    Participant elections regarding Participant Deferral Credits and Employer Credits shall be subject to the following effective periods (one must be selected):

	 	
XX

	
(a)

	
Evergreen election. An election made by the Participant shall continue in effect for subsequent years until modified by the Participant as permitted in Section 4.1 and Section 4.2. (This option is not permitted if source year accounts are elected in Section 4.3)

 

	 	 	 	 
	 	
__

	
(b)

	
Non-Evergreen election. Any election made by the Participant shall only remain in effect for the current election period and will then expire. An election for each subsequent year will be required as permitted in Sections 4.1 and 4.2.

 

4.2          Employer Credits: Employer Credits will be made in the following manner:

	 	
XX

	
(a)

	
Employer Discretionary Credits: The Employer may make discretionary credits to the Deferred Compensation Account of each Active Participant in an amount determined as follows:

	 	 	 	 
	 	 	 	
XX

	
(i)

	
An amount determined each Plan Year by the Employer.

	 	 	 	 
	 	 	 	
__

	
(ii)

	
Other: _______________________________________.

	 	 	 	 
	 	
XX

	
(b)

	
Other Employer Credits: The Employer may make other credits to the Deferred Compensation Account of each Active Participant in an amount determined as follows:

	 	 	 	 
	 	 	 	
XX

	
(i)

	
An amount determined each Plan Year by the Employer.

	 	 	 	 
	 	 	 	
__

	
(ii)

	
Other:________________________________________.

	 	 	 	 
	 	
__

	
(c)

	
Employer Credits not allowed.

5

4.3          Deferred Compensation Account: The Participant is permitted to establish the following accounts:

	 	
XX

	
(a)

	
Non-source year account(s). Deferred Compensation Account(s) will not established on a source year basis:

	 	 	 	 
	 	 	
XX

	
(i)

	
A Participant may establish only one account to be distributed upon Separation from Service. One set of payment options for that account is allowed as permitted in Section 7.1. Additional In-Service or Education accounts may be established as permitted in Section 5 .4.

	 	 	 	 
	 	 	
__

	
(b)

	
A Participant may establish multiple accounts to be distributed upon Separation from Service. Each account may have one set of payment options as permitted in Section 7.1 Additional In-Service or Education accounts may be established as permitted in Section 5.4. If this multiple account option is elected, the Participant will also be required to elect Separation from Service payment options for each In- Service or Education account established.

	 	 	 	 
	 	
__

	
(b)

	
Source year account(s): Annual Deferred Compensation Account(s) will be established each year in which Participant Deferral Credits or Employer Credits are credited to the Participant. Only one account may be established each year for distribution upon Separation from Service. One set of payment options for that account is allowed as permitted in Section 7.1. Additional In-Service or Education accounts may be established for each source year as permitted in Section 5.4. If this option is selected, Evergreen elections as described in Section 4.1.2 are not permitted.

5.2          Disability of a Participant:

	 	
XX

	
(a)

	
A Participant's becoming Disabled shall be a Qualifying Distribution Event and the Deferred Compensation Account shall be paid by the Employer as provided in Section 7.1.

	 	 	 	 
	 	
__

	
(b)

	
A Participant becoming Disabled shall not be a Qualifying Distribution Event.

5.3          Death of a Participant: If the Participant dies while in Service, the Employer shall pay a benefit to the Beneficiary in an amount equal to the vested balance in the Deferred Compensation Account of the Participant determined as of the date payments to the Beneficiary commence, plus:

	 	
__

	
(a)

	
An amount to be determined by the Committee.

	 	 	 	 
	 	
XX

	
(b)

	
No additional benefits.

6

5.4          In-Service or Education Distributions:  In-Service and Education Accounts are permitted under the Plan:

	 	
XX

	
(a)

	
In-Service Accounts are allowed with respect to:

	 	 	 	
__

	
Participant Deferral Credits only.

	 	 	 	
__

	
Employer Credits only.

	 	 	 	
XX

	
Participant Deferral and Employer Credits.

	 	 	 	 
	 	 	 	
In-service distributions may be made in the following manner:

	 	 	 	
XX

	
Single lump sum payment.

	 	 	 	
XX

	
Annual installments over a term certain not to exceed 5 years.

	 	 	 	 
	 	 	 	
Education Accounts are allowed with respect to:

	 	 	 	
__

	
Participant Deferral Credits only.

	 	 	 	
__

	
Employer Credits only.

	 	 	 	
XX

	
Participant Deferral and Employer Credits.

	 	 	 	 
	 	 	 	
Education Accounts distributions may be made in the following manner:

	 	 	 	
XX

	
Single lump sum payment.

	 	 	 	
XX

	
Annual installments over a term certain not to exceed 5 years.

	 	 	 	 
	 	 	 	
If applicable, amounts not vested at the time payments due under this Section cease will be:

	 	 	 	
__

	
Forfeited.

	 	 	 	
__

	
Distributed at Separation from Service if vested at that time.

	 	 	 	
XX

	
Other: Distributed annually when vested. (See Exhibit C)

	 	 	 	 	 
	 	
__

	
(b)

	
No In-Service or Education Distributions permitted.

5.5          Change in Control Event:

	 	
XX

	
(a)

	
Participants may elect upon initial enrollment to have accounts distributed upon a Change in Control Event.

	 	 	 	 
	 	
__

	
(b)

	
A Change in Control shall not be a Qualifying Distribution Event.

5.6          Unforeseeable Emergency Event:

	 	
XX

	
(a)

	
Participants may apply to have accounts distributed upon an Unforeseeable Emergency event.

	 	 	 	 
	 	
__

	
(b)

	
An Unforeseeable Emergency shall not be a Qualifying Distribution Event.

7

6.          Vesting:An Active Participant shall be fully vested in the Employer Credits made to the Deferred Compensation Account upon the first to occur of the following events:

	 	
XX

	
(a)

	
Normal Retirement Age.

	 	 	 	 
	 	
XX

	
(b)

	
Death.

	 	 	 	 
	 	
XX

	
(c)

	
Disability.

	 	 	 	 
	 	
XX

	
(d)

	
Change in Control Event.

	 	 	 	 
	 	
XX

	
(e)

	
Satisfaction of the vesting requirement as specified below:

	 	 	 	 
	 	 	
XX

	
Employer Discretionary Credits:

	 	 	 	 
	 	 	 	
__

	
(i)

	
Immediate 100% vesting.

	 	 	 	 	 	 
	 	 	 	
__

	
(ii)

	
100% vesting after __ Years of Service.

	 	 	 	 	 	 
	 	 	 	
XX

	
(iii)

	
100% vesting at age 55.

	 	 	 	 	 	 
	 	 	 	
XX

	
(iv)

	
Number of Years

of Service

	
Vested

Percentage

	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
Less than

	
1

	
0

	
%

	 	 	 	 	 	 	 	
1

	
0

	
%

	 	 	 	 	 	 	 	
2

	
20

	
%

	 	 	 	 	 	 	 	
3

	
40

	
%

	 	 	 	 	 	 	 	
4

	
60

	
%

	 	 	 	 	 	 	 	
5

	
80

	
%

	 	 	 	 	 	 	 	
6

	
100

	
%

	 	 	 	 	 	 	 	
7

	 	
%

	 	 	 	 	 	 	 	
8

	 	
%

	 	 	 	 	 	 	 	
9

	 	
%

	 	 	 	 	 	 	 	
10 or more

	 	
%

	 	 	 	
For this purpose, Years of Service of a Participant shall be calculated from the date designated below:

	 	 	 	 
	 	 	 	
XX

	
(1)

	
First day of Service.

	 	 	 	 	 	 
	 	 	 	
__

	
(2)

	
Effective date of Plan Participation.

	 	 	 	 	 	 
	 	 	 	
__

	
(3)

	
Each Crediting Date. Under this option (3), each Employer

Credit shall vest based on the Years of Service of a

Participant from the Crediting Date on which each

Employer Discretionary Credit is made to his or her

Deferred Compensation Account.

8

	 	 	
XX

	
Other Employer Credits:

	 	 	 	 
	 	 	 	
__

	
(i)

	
Immediate 100% vesting.

	 	 	 	 	 	 
	 	 	 	
__

	
(ii)

	
100% vesting after __ Years of Service.

	 	 	 	 	 	 
	 	 	 	
__

	
(iii)

	
100% vesting at age __.

	 	 	 	 	 	 
	 	 	 	
XX

	
(iv)

	
Number of Years

of Service

	
Vested

Percentage

	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
Less than

	
1

	
0

	
%

	 	 	 	 	 	 	 	
1

	
25

	
%

	 	 	 	 	 	 	 	
2

	
50

	
%

	 	 	 	 	 	 	 	
3

	
75

	
%

	 	 	 	 	 	 	 	
4

	
100

	
%

	 	 	 	 	 	 	 	
5

	 	
%

	 	 	 	 	 	 	 	
6

	 	
%

	 	 	 	 	 	 	 	
7

	 	
%

	 	 	 	 	 	 	 	
8

	 	
%

	 	 	 	 	 	 	 	
9

	 	
%

	 	 	 	 	 	 	 	
10 or more

	 	
%

	 	 	 	
For this purpose, Years of Service of a Participant shall be calculated from the date designated below:

	 	 	 	 
	 	 	 	
__

	
(1)

	
First day of Service.

	 	 	 	 	 	 
	 	 	 	
__

	
(2)

	
Effective date of Plan Participation.

	 	 	 	 	 	 
	 	 	 	
XX

	
(3)

	
Each Crediting Date. Under this option (3), each Employer

Credit shall vest based on the Years of Service of a

Participant from the Crediting Date on which each

Employer Discretionary Credit is made to his or her

Deferred Compensation Account.

9

7.1          Payment Options:Any benefit payable under the Plan upon a permitted Qualifying Distribution Event may be made to the Participant or his Beneficiary (as applicable) in any of the following payment forms, as selected by the Participant in the Participation Agreement:

	 	
(a)

	
Separation from Service (Seniority Date is Not Applicable)

	 	 	 	 	 
	 	 	
XX

	
(i)

	
A lump sum.

	 	 	 	 
	 	 	
XX

	
(ii)

	
Annual installments over a term certain as elected by the Participant not to exceed 10 years.

	 	 	 	 
	 	
(b)

	
Separation from Service prior to Seniority Date (If Applicable)

	 	 	 	 
	 	 	
__

	
(i)

	
A lump sum.

	 	 	 	 
	 	 	
XX

	
(ii)

	
Not Applicable.

	 	 	 	 
	 	
(c)

	
Separation from Service on or After Seniority Date (If Applicable)

	 	 	 	 
	 	 	
__

	
(i)

	
A lump sum.

	 	 	 	 
	 	 	
__

	
(ii)

	
Annual installments over a term certain as elected by the Participant not to exceed __ years.

	 	 	 	 	 
	 	 	
XX

	
(iii)

	
Not Applicable.

	 	 	 	 
	 	
(d)

	
Separation from Service Upon a Change in Control Event

	 	 	 	 	 
	 	 	
XX

	
(i)

	
A lump sum.

	 	 	 	 
	 	 	
XX

	
(ii)

	
Annual installments over a term certain as elected by the Participant not to exceed 10 years.

	 	 	 	 
	 	
(e)

	
Death

	 	 	 	 
	 	 	
XX

	
(i)

	
A lump sum.

	 	 	 	 
	 	 	
__

	
(ii)

	
Annual installments over a term certain as elected by the Participant not to exceed __ years.

	 	 	 	 
	 	
(f)

	
Disability

	 	 	 	 	 
	 	 	
XX

	
(i)

	
A lump sum.

	 	 	 	 
	 	 	
XX

	
(ii)

	
Annual installments over a term certain as elected by the Participant not to exceed 10 years.

	 	 	
If applicable, amounts not vested at the time payments due under this Section cease will be:

	 	 	 
	 	 	
__

	
Forfeited.

	 	 	
__

	
Distributed at Separation from Service if vested at that time.

10

	 	
(g)

	
Change in Control Event

	 	 	 	 	 
	 	 	
XX

	
(i)

	
A lump sum.

	 	 	 	 
	 	 	
XX

	
(ii)

	
Annual installments over a term certain as elected by the Participant not to exceed 10 years.

	 	 	 	 	 
	 	 	
If applicable, amounts not vested at the time payments due under this Section cease will be:

	 	 	 
	 	 	
__

	
Forfeited.

	 	 	
__

	
Distributed at Separation from Service if vested at that time.

7.4          De Minimis Amounts.

	 	
__

	
(a)

	
Notwithstanding any payment election made by the Participant, the vested balance in all Deferred Compensation Account(s) of the Participant will be distributed in a single lump sum payment at the time designated under the Plan if at the time of a permitted Qualifying Distribution Event that is either a Separation from Service, death, Disability (if applicable) or Change in Control Event (if applicable) the vested balance does not exceed $ __________. In addition, the Employer may distribute a Participant’s vested balance in all Deferred Compensation Account(s) of the Participant at any time if the balance does not exceed the limit in Section 402(g)(1)(B) of the Code and results in the termination of the Participant’s entire interest in the Plan.

	 	 	 	 
	 	
XX

	
(b)

	
There shall be no pre-determined de minimis amount under the Plan; however, the Employer may distribute a Participant’s vested balance at any time if the balance does not exceed the limit in Section 402(g)(1)(B) of the Code and results in the termination of the Participant’s entire interest in the Plan.

10.1          Contractual Liability:   Liability for payments under the Plan shall be the responsibility of the:

	 	
XX

	
(a)

	
Company.

	 	 	 	 
	 	
__

	
(b)

	
Employer or Participating Employer who employed the Participant when amounts were deferred.

14.          Amendment and Termination of Plan: Notwithstanding any provision in this Adoption Agreement or the Plan to the contrary, Section 2.8, 5.1, 5.4 and 14 of the Plan shall be amended to read as provided in attached Exhibit A, B, C, D and E.

	 	
__

	
There are no amendments to the Plan.

17.8          Construction:   The provisions of the Plan shall be construed and enforced according to the laws of the State of Nevada, except to the extent that such laws are superseded by ERISA and the applicable provisions of the Code.

11

IN WITNESS WHEREOF, this Agreement has been executed as of the day and year stated below.

	 	
U.S. Xpress Enterprises, Inc.

	 	
Name of Employer

	 	 
	 	 
	 	
By:

	
/s/ Amanda Thompson

	 	 	Authorized Person
	 	
Date:

	
10/3/18

	 	 
	 	 

12

EXHIBIT A

Section 2.8   Independent Contractor means an individual in the Service of the Employer if the relationship between the individual and the Employer is not the legal relationship of employer and employee except that Independent Contractor shall not include independent contractors engaged by any of the relevant corporations as CDL licensed truck drivers. An individual shall cease to be an Independent Contractor upon the termination of the Independent Contractor's Service. An Independent Contractor shall include a director of the Employer who is not an Employee.

EXHIBIT B

Section 5.1 Separation from Service. If the Participant separates from Service with the Employer, the vested balance in the Deferred Compensation Account shall be paid to the Participant by the Employer as provided in Section 7. Notwithstanding the foregoing, no distribution shall be made earlier than six months after the date of separation from Service (or, if earlier, the date of death) with respect to a Participant who is a Specified Employee. Any payments to which a Specified Employee would be entitled during the first    six months following the date of separation from Service shall be accumulated and paid on the first day of the seventh month following the date of separation from service.

EXHIBIT C

Section 5.4 In-Service or Education Distributions. If applicable, amounts not vested at the time payments due under this Section cease will be distributed annually when vested.

EXHIBIT D

Section 14  Amendment and Termination of Plan. The Company may amend any provision of the Plan or terminate the Plan at any time; provided, that in no event shall such amendment or termination reduce the balance in any Participant's Deferred Compensation Account as of the date of such amendment or termination, nor shall any such amendment affect the terms of the Plan relating to the payment of such Deferred Compensation Account, nor shall any such amendment cause the Deferred Compensation  Accounts to violate the requirements of Section 409A of the Code. Notwithstanding the foregoing, the following special provisions shall apply.

13

EXHIBIT E

	
U.S. Xpress Enterprises, Inc.

4080 Jenkins Road

Chattanooga, TN 37421

	
Tax ID: XX-XXXXXXX

	 	 
	
U.S. Xpress, Inc.

4080 Jenkins Road

Chattanooga, TN 37421

	
Tax ID: XX-XXXXXXX

	 	 
	
U.S. Xpress Leasing, Inc.

4080 Jenkins Road

Chattanooga, TN 37421

	
Tax ID: XX-XXXXXXX

	 	 
	
Xpress Global Systems, Inc.

4080 Jenkins Road

Chattanooga, TN 37421

	
Tax ID: XX-XXXXXXX

	 	 
	
Arnold Transportation Services, Inc.

9523 Florida Mining Blvd.

Jacksonville, FL 32257

	
Tax ID: XX-XXXXXXX

	 	 
	
Total Transportation Investments, LLC

125 Riverview Drive

Jackson, MS 39218

	
Tax ID: XX-XXXXXXX

	 	 
	
Transportation Assets Leasing, Inc.

125 Riverview Drive

Jackson, MS 39218

	
Tax ID: XX-XXXXXXX

 

14

 

Back to Form 10-Qvrrm-ex101_80.htm

Exhibit 10.1

CONFIDENTIAL SEPARATION AND RELEASE AGREEMENT 

 

This Confidential Separation and Release Agreement (hereinafter the “Agreement”) is made by and between Jon Routledge (hereinafter “you” or “Employee”) and Highway Toll Administration, LLC (hereinafter “HTA” or “the Company”) (together “the Parties”) to set forth the Parties’ agreement concerning the terms and conditions that will govern the termination of the employment relationship between Employee and the Company.   The Parties agree as follows:

 

	
 
	
1.
	
Transition Period and Separation Date.  

 

The employment relationship between Employee and the Company will end on the close of business on January 4, 2019 (“the Separation Date”), although from the date of receipt of this Agreement through the Separation Date (“the Transition Period”), Employee will not be permitted or required to work out of any Company or its affiliates’ offices, unless expressly requested to do so by David Roberts or his designee, with the exception of the week of November 12 through 16, 2018, during which time Employee is expected to work out of his regular office in Roslyn, NY.   During the Transition Period, Employee must be available during regular business hours to perform work, including assisting the Company with the transition of responsibilities to others, as directed by David Roberts.  Specifically, Employee will be required to actively and effectively assist with the transition of the ABG and EHI customer relationships to others at the Company (or its affiliates), which may require travel.

 

	
 
	
2.
	
Pay, Expenses, and Benefits.

 

a.Salary and Expenses.  The Company will pay Employee at his normal salary rate in accordance with the Company’s standard payroll practices through the Separation Date.  Employee will be reimbursed for any unreimbursed expenses incurred prior to the Separation Date per Company policy.  Reimbursement requests must be submitted before the Separation Date.

 

b.Benefit Plans and Programs.  As of the Separation Date, Employee will cease to earn, accrue, or be eligible for benefits, coverage, or perquisites under the benefit plans and programs provided to employees of the Company, with the sole exception of the specific benefits promised in Section 3, and with the exception of health benefits which shall continue for the full month in which the Separation Date occurs in accordance with their terms as of immediately prior to the Separation Date.  Any vested benefits to which Employee may be entitled under any Company-sponsored 401(k) plan will be provided in accordance with and subject to the terms of that plan, including any terms regarding the timing, form, and manner of contributions and payment.  Any grant of equity units to Employee shall be governed by the terms of the Verra Mobility Corporation 2018 Equity Incentive Plan and related agreements.

 

- 1 -

Employee Initials _____

 

	
 
	
3.
	
Separation Benefits.  

 

In exchange for Employee’s promises set forth in this Agreement and compliance therewith, and contingent upon Employee’s valid execution of this Agreement, the Company will provide Employee with the separation benefits described in this Section 3 (collectively, “the Separation Benefits”).

 

(a)Severance Payment.  HTA (or its successor payroll entity) will pay Employee his base salary as in effect on the Separation Date for a 12 month period, in accordance with its regular pay-roll cycle, commencing within 10 business days after the Effective Date (as defined in Section 10) (“the Severance Payment”).  The Severance Payment shall not be eligible for 401(k) plan contributions.  The Severance Payments will cease being made on the earlier of (a) Employee’s failure to comply with any obligation set forth in this Agreement; or (b) the end of the 12 month period following the commencement of the Severance Payments.  

 

(b)Health Plan Payments.  HTA (or its successor payroll entity) will pay Employee the Company cost of group health insurance, based on the Company’s proportional cost immediately prior to the Separation Date, to cover Employee and his eligible dependents in the Company’s medical, dental, and vision insurances in which they participated immediately prior to the Separation Date (which shall be grossed up to account for withholding) (the “Health Plan Payments”) for up to a 6 month period.  The Health Plan Payments will commence with the Severance Payment, and shall cease being made on the earlier of (a) the first day of the first full month in which Employee becomes eligible through subsequent employment to participate in a group healthcare plan, and Employee agrees to inform the Company promptly open receiving an offer of employment that he has accepted, including the start date of his health care coverage eligibility; (b) Employee’s failure to comply with any obligation set forth in this Agreement; or (c) the end of the 6 month period following the commencement of the Severance Payment. Employee will be required to apply for and directly pay the full cost of the premiums, pursuant to COBRA.  All coverage will be subject to the terms of the plan and any plan amendments or changes that are made in plan design, coverage, offerings, premiums, deductibles, co-pays or plan administration.    

 

(c)Bonus Payment.  Under the terms of the Verra Mobility Annual Incentive Bonus Plan (effective August 13, 2018 for Plan year 2018) (the “Bonus Plan”), Employee is not entitled to a payment for his 2018 bonus unless he is employed on the payment date, which will occur after the Separation Date.  Notwithstanding the foregoing, the Company agrees to pay Employee his bonus for 2018 as if he had been employed on the payment date.   The bonus payment, if any, will be determined according to the terms of the Bonus Plan, will be pro-rated to include only the time following the closing of the acquisition of HTA by Verra Mobility Corporation, and will be payable on the date such bonuses are paid to other participants of the Bonus Plan.

 

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Employee acknowledges that he is not entitled to receive the Separation Benefits unless he validly executes this Agreement and complies with all of the obligations set forth herein, and that the Separation Benefits constitute adequate and sufficient consideration to support the promises set forth in this Agreement.  Employee also acknowledges that he is not entitled to any additional payment or benefit that is not expressly promised or described in this Agreement.

 

4.Release of Claims.  

 

(a)Release and Released Parties.  In exchange for the Separation Benefits described in Section 3, and subject only to the exclusions of Section 4(b) below, Employee hereby RELEASES the Company, its parents, shareholders, subsidiaries, affiliates, predecessors, successors, assigns, related companies or entities, its and their employee benefit plans and administrators, and any and all of its and their respective current and former officers, directors, partners, insurers, agents, representatives, attorneys, accountants, actuaries, trustees, fiduciaries, and employees (the “Released Parties”) from any and all claims, demands or causes of action which Employee or Employee’s heirs, executors, administrators, agents, attorneys, representatives or assigns (all collectively included in the term “Employee” for purposes of this Paragraph 4), has, had or may have against any of the Released Parties, based on any events or circumstances arising or occurring on or before the date of Employee’s execution of this Agreement, including, but not limited to, any claims relating to Employee’s employment or termination of employment, and any rights of continued employment, reinstatement or reemployment with any of the Released Parties.  For the avoidance of doubt, and subject only to the exclusions in Section 4(b) of this Agreement, Employee expressly agrees, understands, and acknowledges that this is a general release that, to the fullest extent permitted by law, waives, surrenders, and extinguishes any and all claims that Employee has or may have against any of the Released Parties, whether known, unknown, foreseen, or unforeseen, including, but not limited to, the following:

 

(i)any claim(s) under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act (“ADEA”), the Americans with Disabilities Act, the Equal Pay Act, the Employee Retirement Income Security Act (“ERISA”), the Family and Medical Leave Act, the Genetic Information Nondiscrimination Act, the Health Insurance Portability and Accountability Act, 42 U.S.C. § 1981, or the WARN Act;

 

(ii)any claim(s) under any other applicable federal, state, or local or foreign law, statute, regulation, or ordinance regarding discrimination, harassment, retaliation, or any other subject matter; 

 

(iii)any claim(s) for breach of contract, wrongful discharge, unjust dismissal, defamation, slander, libel, fraud, misrepresentation, negligence, intentional or negligent infliction of emotional distress; and 

 

(iv)any other claim for damages or other relief arising under the common law or any theory of law or equity, including any claim for costs or attorney’s fees.

 

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(b)Claims Not Released.  The claims released in Section 4(a) of this Agreement do not include any claim or cause of action based on any of the following: (i) the right to vested benefits under any retirement plan; (ii) the right to continued benefits as required by COBRA; (iii) any right to receive workers’ compensation benefits or unemployment insurance as required by applicable law; (iv) any right to challenge the validity or enforce the terms of this Agreement; or (v) any claim which cannot be waived as a matter of law.  For the avoidance of doubt, nothing herein waives or releases any claim that may arise after the Effective Date.

 

(c)Permitted Conduct.  Nothing in this Agreement prohibits Employee from filing a charge with the Equal Employment Opportunity Commission (“EEOC”) or any other government agency, nor does anything in this Agreement prohibit Employee from participating, cooperating, or testifying in any investigation or proceeding conducted by or pending before the EEOC or any other any government agency.  However, the Separation Benefits provided to Employee under Section 3 shall be the sole financial benefit that Employee is entitled to receive for any of the claims that Employee is releasing under Section 4.  Therefore, even though Employee can provide testimony or information or assistance in an investigation or in proceedings described in this Section 4(c), Employee’s participation therein will not entitle Employee to additional compensation from the Company or any of the Released Parties.  In fact, if Employee is awarded any monetary relief in connection with any lawsuit, legal proceeding, charge or complaint, that relief will be reduced by any amounts paid or payable by the Company under this Agreement. 

 

5.Confidentiality, Intellectual Property, and Company Property.

 

(a)Confidential Information.  Employee understands and agrees that he remains bound by the terms of the “Employee Agreement Regarding Confidential and Proprietary Information” that he executed on April 25, 2016, a copy of which is being provided herewith (the “Confidentiality Agreement”).  Employee specifically acknowledges and reaffirms his ongoing obligations (a) not to use or disclose for his own benefit, or that of another employer or any person or party other than the Company, any Company Proprietary Information (as defined in the Confidentiality Agreement), (b) to return to the Company any and all Company property and all materials containing Company Proprietary Information in his possession on or prior to the Separation Date, and (c) to comply with his post-employment restrictions regarding the company’s customers, competitors and employees (the “Non-compete”, “Non-Solicitation and Non-interference” and “Non-disparagement” provisions).  

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Notwithstanding the foregoing, Employee may disclose Confidential Information to the extent he is compelled to do so by lawful service of process, subpoena, court order, or as he is otherwise compelled to do by law or the rules or regulations of any regulatory body or governmental agency or instrumentality to which he is subject, including full and complete disclosure in response thereto, in which event he agrees (unless prohibited by law) to provide the Company with a copy of the documents seeking disclosure of such information promptly upon receipt of such documents and prior to his disclosure of any such information, so that the Company may, upon notice to the Employee, take such action as the Company deems appropriate in relation to such subpoena or request, and the Employee (unless otherwise compelled to do so by lawful service of process, subpoena, court order, or by law or the rules or regulations of any regulatory body or governmental agency or instrumentality) may not disclose any such information until the Company has had the opportunity to take such action.  

(b) Company Property.  On or before the Separation Date, Employee will return to the Company all property belonging to the Company, including, but not limited to, laptops, mobile phones, identification badges, and credit cards.

6.Pay and Leave Confirmation.  Employee is not aware of any occasion on which the Company or any of the Released Parties failed to pay Employee for hours worked for or on behalf of the Company at the appropriate rate of pay.  Employee is not aware of any occasion when he was denied any leave that he was entitled to take under the Family and Medical Leave Act or any other law or regulation.

 

7.Cooperation in Litigation/Investigations.  If requested, from and after the Separation Date, Employee agrees to make himself reasonably available to the Company to respond to requests by the Company for documents and information concerning matters involving facts or events relating to the Company that may be within his knowledge, and further agrees to provide truthful information to the Company, as reasonably requested with respect to pending and future litigation, arbitrations, dispute resolutions, investigations or requests for information.   Employee shall be reimbursed for his reasonable out-of-pocket expenses associated with any activities under this Section 7, including reimbursement for his time (using an hourly rate that is proportional to Employee’s annual salary in effect at the time of his Separation Date). 

 

8.Confidentiality of Terms/Non Disparagement.

 

a)Confidentiality.  Employee has kept and agrees to keep the terms of this Agreement confidential and not to disclose such terms to anyone except Employee’s spouse, attorneys, or tax consultants, and agrees to take all steps necessary to assure confidentiality by those recipients.  If Employee discloses the terms of this Agreement to Employee’s spouse, attorneys, or tax consultants, Employee will advise them that they must not disclose the terms of this Agreement to anyone else and will be responsible for any such disclosure provided, however, that this section is not violated by a disclosure under circumstances that would justify the disclosure of Confidential Information under Section 5(a) above.

 

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b)Non-Disparagement.   Except as permitted by Sections 4 (c) and 5 (a), and in addition to any similar obligations imposed by the Confidentiality Agreement, Employee agrees that he will not directly or indirectly make any derogatory, disparaging, or defamatory statements concerning the Company or any of the Released Parties.  For purposes of this Agreement, a derogatory or disparaging statement is any communication, oral or written (including electronic communications), which would cause or reasonably tend to cause the recipient of the communication to question the business condition, integrity, competence, fairness or good character of the person to whom or entity to which the communication relates.   

 

9.Liquidated Damages for Breach of Certain Obligations.  As you previously acknowledged when you signed the Confidentiality Agreement, a breach of the obligations you assumed to the Company in the Confidentiality Agreement could cause the Company irreparable damage.  Similarly, a breach of your obligations under Section 5 or Section 8 of this Agreement could irreparably damage the Company.  Consequently, and because the damage that a breach of those obligations would inflict on the Company is not an amount that the Parties can clearly ascertain at this time, but would likely be even greater than the Separation Benefits you will receiving under this Agreement, you agree that if you breach any of your obligations under Section 5 or Section 8 of this Agreement, you will return to the Company 100% of the Separation Benefits you received under this Agreement.  THE REMEDIES SET FORTH IN THIS SECTION 9 ARE NOT EXCLUSIVE AND SHALL BE IN ADDITION TO ANY OTHER LEGAL OR EQUITABLE REMEDY THAT MAY BE AVAILABLE TO THE COMPANY IN THE EVENT OF A BREACH BY EMPLOYEE. 

 

10.Acceptance.  You may accept this Agreement by delivering a signed original of the Agreement to Anat Gan Eden on or before twenty-one (21) calendar days from your Separation Date, provided such acceptance occurs on or after your Separation Date.  You are advised to consult with your own attorney prior to signing this Agreement.  If you sign and return this Agreement before the expiration of 21 days, you acknowledge that you have done so for the purpose of expediting your receipt of the Separation Benefits, and that you voluntarily and expressly waived your right to the full 21 day period to consider this Agreement.  After you sign this Agreement and return it, you will then have 7 days immediately thereafter (the “Revocation Period”) to revoke your acceptance of this Agreement.  If you decide to revoke your acceptance of this Agreement, you must send a letter declaring your decision to revoke your acceptance to Anat Gan Eden, which must be received before the expiration of the Revocation Period to be effective.  If you revoke this Agreement, you will not receive the Separation Benefits.  If the Company does not receive proper notice of revocation, this Agreement will become effective upon the expiration of the Revocation Period (the “Effective Date”).  

 

11.Non-Admission.  This Agreement does not constitute and shall not be construed as an admission by the Company or any of the Released Parties that any of them has violated any law, interfered with any rights, breached any obligation or otherwise engaged in any improper or illegal conduct with respect to Employee, and the Company expressly denies that it has engaged in any such conduct. 

 

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12.Severability.  If any term or provision of this Agreement shall be determined by any court of competent jurisdiction to be invalid, illegal or unenforceable in whole or in part, and such determination shall become final, such provision or portion shall be deemed to be severed or limited, but only to the extent required to render the remaining terms and provisions of this Agreement enforceable.  This Agreement as thus amended shall be enforced so as to give effect to the intention of the Parties insofar as that is possible.  In addition, the Parties hereby expressly empower a court of competent jurisdiction to modify any term or provision of this Agreement to the extent necessary to comply with existing law and to enforce this Agreement as modified.

 

13.Choice of Law.  This Agreement shall be construed, enforced and interpreted in accordance with and governed by the laws of the State of New York without regard to its choice-of-law principles.

14.Disputes.  Any dispute, controversy, or claim arising out of or in connection with the employment relationship between the Parties or the termination of that relationship or arising out of or in connection with this Agreement, including any question regarding the existence, validity or termination of this Agreement, shall be finally resolved by arbitration under the rules of the American Arbitration Association in force as of the date of this Agreement, which rules are deemed to be incorporated by reference into this clause.  The place of arbitration shall be Phoenix, Arizona.  

15. Deductions and Withholding.  The Company may deduct and withhold from any amounts payable to the Employee hereunder all federal, state, city or other taxes that the Company may reasonably determine are required to be deducted or withheld pursuant to any applicable law or regulation (it being understood that the Employee shall be responsible for payment of all taxes in respect of the payments and benefits provided herein).

 

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

 

17.Entire Agreement.  Except as expressly set forth herein, this Agreement constitutes the entire agreement between the Parties and supersedes all prior negotiations and agreements regarding the subject matter contained herein. This Agreement shall be binding upon and inure to the benefit of, as applicable, Employee’s (on the one hand) and the Company’s and the Released Parties’ (on the other hand) respective successors, assigns, heirs, estates, and representatives. This Agreement shall not be amended or modified except in a writing signed by the Employee and the Company’s Chief Executive Officer.

 

18.Tax Code Section 409A Compliance.  The intent of the Parties is that any payments and benefits under this Agreement that are subject to Section 409A of the Code comply with the requirements of Section 409A of the Code and any related regulations and other guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service.  Accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered in compliance therewith.  All expense reimbursements paid pursuant 

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to this Agreement that are taxable income to the Employee shall in no event be paid later than the end of the calendar year next following the calendar year in which the Employee incurs such expense.  For purposes of applying the provisions of Section 409A of the Code to this Agreement, each separately identified amount to which the Employee is entitled under this Agreement shall be treated as a separate payment.  In addition, to the extent permissible under Section 409A of the Code, any series of installment payments under this Agreement shall be treated as a right to a series of separate payments. In no event shall the Company be liable to Employee for any adverse tax consequences arising under Section 409A.

 

19.Employee’s Acknowledgment.  Employee acknowledges that he (a) has carefully read and understands the terms and conditions of this Agreement; (b) has had adequate opportunity to consult with counsel of his choosing concerning the consequences of signing this agreement and the release and waiver contained in Section 4; (c) is signing this Agreement knowingly and voluntarily of his own free will, without any duress, coercion or undue influence by the Company, its representatives, or other persons; (d) has not relied on any promise,  statement, or representation by anyone associated with the Company that is not contained in this Agreement in deciding to sign this Agreement.  Employee specifically represents that he has not assigned or given to any other person or party the right to pursue any legal claim that falls within the scope of Section 4 of this Agreement.

 

 

NOW INTENDING TO BE LEGALLY BOUND THEREBY, the Parties have executed this Agreement on the date(s) set forth below.  

 

			
	
Jon Routledge
	
 
	
Highway Toll Administration, LLC

	
 
	
 
	
 

	
 
	
 
	
 

	
Signature: /s/ Jon Routledge
	
 
	
By: /s/ David Roberts

	
 
	
 
	
David Roberts, CEO

	
 
	
 
	
(and on behalf of Verra Mobility Corp) 

	
 
	
 
	
 

	
Date:  1/4/19
	
 
	
Date:  1/4/19

 

 

[Not to be signed prior to Separation Date]

 

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