Document:

exv10w1

 

Exhibit 10.1

SECOND AMENDMENT

TO

NON-QUALIFIED DEFERRED COMPENSATION AGREEMENT

     This Second Amendment to Non-Qualified Deferred Compensation Agreement (this “Amendment”) is
made and entered into this 25th day of May, 2005, between SWIFT TRANSPORTATION CO., INC., an
Arizona corporation (“Swift”), and WILLIAM F. RILEY, III, a resident of Phoenix, Arizona (“Riley”).

     RECITALS.

     WHEREAS, the parties to this Amendment previously entered into that certain Non-Qualified
Deferred Compensation Agreement with an effective date of March 14, 2000 (the “Original Agreement”)
as well as the First Amendment to the Original Agreement dated October 19, 2004 (the “First
Amendment”) (with the Original Agreement and the First Amendment hereinafter sometimes collectively
referred to herein as the “Agreement”);

     WHEREAS, the minutes of the Compensation Committee meeting of February 16, 2000, at which the
Original Agreement was adopted, clearly reflect that the purpose of the Agreement was (i) to
provide an incentive for Riley to remain with Swift through at least March 2005, (ii) that the
amount contributed by the Company for the benefit of Riley to fully vest upon the fifth anniversary
of the Agreement, and (iii) to pay out $5 million to Riley if he remained employed with the Company
through March 2005 or longer;

     WHEREAS, the Original Agreement, as drafted, did not accurately reflect the purpose of the
deferred compensation arrangement as evidenced by the resolutions adopted by the Compensation
Committee, in that the Original Agreement provided that Riley was to remain employed at Swift
through June 24, 2006 rather than through March 2005;

     WHEREAS, the First Amendment was adopted in order to clarify that Riley was only obligated to
remain employed by Swift through March 2005 and to provide that Riley’s entitlements under the
Agreement would become fully vested upon the Fifth Anniversary of the Original Agreement;

     WHEREAS, Riley has indicated that he intends to retire from Swift on or about August 15, 2005;

     WHEREAS, the parties wish to amend the Agreement in order to clarify that the deferred
compensation provided for under the Agreement has been fully earned by Riley and is no longer
subject to forfeiture, provided, however, that the Company shall continue to fund its obligations
under the Agreement by making monthly deposits of $50,738.67 into the investment account (the
“Account”) established pursuant to the Agreement through June 24, 2006, and further provided,
however, that all rights which Riley or his estate may have under the terms of the Agreement shall
remain unsecured contractual rights against Swift; and

 

 

     WHEREAS, in further amending the Agreement, the parties hereto desire to comply with the
provisions of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), IRS
Notice 2005-1 (the “Notice”) issued by the IRS with respect to Code Section 409A, as well as any
future Treasury Regulations promulgated to implement and provide guidance with respect to Code
Section 409A and that therefore distributions under the Agreement may, in no event, commence until
the expiration of at least six months subsequent to his employment termination.

     NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

     1. The parties acknowledge that since Riley has been employed through the Vesting Date, he is
fully vested in his rights under the Agreement and that Swift shall continue to be obligated to
deposit the amount of $50,738.67 into the Account through June 24, 2006, even though Riley’s
employment is expected to terminate prior to that date (since all of the deferred compensation to
which Riley is entitled under the Agreement has been fully earned as of the Vesting Date).

     2. The second paragraph of Section 1b. of the First Amendment is deleted in its
entirety.

     3. Section 1d of the Agreement is deleted in its entirety and the following new Section 1d is
substituted therefor:

     “d Withdrawal from Account. It is acknowledged and understood that Swift shall
withdraw funds from the Account equal to the amount of funds paid to Riley pursuant to paragraphs
a, b, c or d or Section 2 of this Agreement. Funds remaining in the Account following such
withdrawals shall remain subject to Section 1 of the Agreement.”

     4. Since Riley is now fully vested under the Agreement and in order to comply with the
provisions of Section 409A of the Code, Section 2 of the Agreement is deleted in its entirety and
the following new Section 2 is substituted therefor:

          “2. Swift’s Obligation to Pay Deferred Compensation.

               a. Payment upon Death or Disability. If Riley dies or becomes permanently disabled
(as hereinafter defined) before the payments called for under Paragraph b or c below commence,
Swift shall pay funds to Riley’s estate, in the event of his death, or to Riley, in the event of
his permanent disability in annual installments as provided for under Paragraph d of this Section
2, with the first such installment due not later than 60 days after Riley’s death or disability
(the “First Payment Date”) and each successive installment due annually on the anniversary of the
First Payment Date. For purposes of this Agreement, the term “permanent disability” shall mean the
inability, for physical or mental reasons, of Riley to perform the essential function of his
position with Swift for more than a six month period, as determined by a medical doctor selected by
Swift.”

2

 

               b. Payment of Deferred Compensation upon Separation from Service. Upon the
termination of Riley’s employment for any reason other than death or disability as set forth on
Paragraph 2b of this Agreement, the first installment to be paid to Riley under the terms of this
Agreement shall be paid on the date that is 185 days after the last date of Riley’s employment (the
“First Installment”) and later installments shall be paid annually on the anniversary of the date
that the First Installment” was paid.

               c. Default Payment. To the extent that Riley or his estate is not otherwise entitled
to receive payment under Paragraphs a or b of this Section 2 (the “Deferred Compensation,” the
first installment of Deferred Compensation shall be paid to Riley in annual installments, even if
he is still employed by Swift at the time, on December 24, 2006, with all later installments of
Deferred Compensation to be paid on the anniversary thereof.

               d. Determination of Amount of Installment. In determining the amount of any annual
installment due under paragraphs a, b or c above, Swift shall calculate the value of funds in the
Account on the date an installment is to be paid (the “Installment Date”) net of taxes on earnings
or gains, federal and state payroll tax, or other required withholdings and any expenses properly
chargeable to the Account as referenced in Section 1 of the Agreement.

               On each Installment Date, Swift shall pay to Riley or his estate the lesser of $1 million, or
the amount (the “Difference”) by which all applicable employee remuneration (as “applicable
employee remuneration”) is defined under Section 162(m)(4)(a) of the Code received by Riley from
Swift in the year the installment is paid, less then the deductible salary cap imposed with respect
to “covered employees” under Section 162(m)(1) of the Code. Notwithstanding the foregoing, if any
determination of the balance of the Account as computed above, results in a value that does not
exceed the lesser of $1 million or the Difference, such value shall be the amount of the final
installment payment.”

               e. Rights to Deferred Compensation. Any rights to Deferred Compensation that Riley
or his estate may acquire under the terms of this Agreement shall be mere unsecured contractual
rights against Swift. Such rights may not be anticipated, transferred, assigned, alienated,
pledged or encumbered by Riley, his estate, or any of his beneficiaries, or subjected to
attachment, garnishment, levy, execution, or other legal or equitable process initiated by the
creditors of Riley, his estate or beneficiaries.”

               f. Section 409A to Govern. Notwithstanding any other provision of this Agreement to
the contrary, as it is the parties’ intent to comply with Section 409A of the Code and the Treasury
Regulations promulgated under Code Section 409A. Should the Company determine that the timing of
any installment payment payable hereunder would violate the provisions of Code Section 409A, such
payment shall be accelerated or deferred, as the case may be, in order to comply with the
provisions of Code Section 409A.”

     5. Section 3e of the Agreement, which was added by the First Amendment, is deleted in its
entirety.

     6. Reservation of Right to Further Amend the Agreement. As it is the intent of the
parties hereto to comply with Code Section 409A and, at the time of this Agreement, the

3

 

Treasury Regulations to be promulgated thereunder have not yet been issued, to the extent that any
provisions of this Agreement does not comply with Code Section 409A and the applicable Treasury
Regulations, promulgated thereunder, such provisions shall be ignored and the parties shall amend
the Agreement so that it complies with Code Section 409A.

     7. Except as modified by this Amendment, the terms of the Agreement shall remain in full force
and effect. To the extent that any provision of this Amendment conflicts with the terms of the
original Agreement or the First Amendment, the terms of this Amendment shall control.

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed on the date
first above written.

SWIFT TRANSPORTATION CO., INC.

	 	 	 	 	 	 	 
	By:	 	/s/ Jerry Moyes	 	/s William F. Riley, III	 	 
	 	 	 	 	 	 	 
	 

	 	Jerry Moyes, Chief Executive Officer
	 	William F. Riley, III	 	 

4Trilogy Termination Agreement

EXHIBIT
10.3

TERMINATION
AGREEMENT

This
Termination Agreement (this “Agreement”) is
entered into this 7th day of
April, 2005 by and between Trilogy Capital Partners, Inc. (“Trilogy”) and
Entrada Networks, Inc. (“Entrada”) with
reference to the following facts:

A. Trilogy
and Entrada are parties to a Letter of Engagement, dated November 10, 2004,
pursuant to which Entrada: (i) issued to Trilogy a warrant to purchase up to
10,000,000 shares of Entrada’s common stock at a per share exercise price of
$0.12 (the “Warrant”); and
(ii) agreed to pay Trilogy $10,000 per month during the term of the Letter of
Engagement. As of this date, Entrada has paid the sum of $20,000 to Trilogy (the
“Trilogy
Payment”).

B. Trilogy
and Entrada now wish to terminate Trilogy’s engagement under the Letter of
Engagement, as more particularly described herein.

NOW,
THEREFORE, in
consideration of the mutual covenants set forth in this Agreement, and for other
consideration, the receipt and sufficiency of which is hereby acknowledged, and
intending to be legally bound, the parties to this Agreement hereby agree as
follows:

1. Trilogy’s
engagement under the Letter of Engagement is hereby terminated and neither
Trilogy nor Entrada shall have any further rights or obligations under the
Letter of Engagement except that sections of the Letter of Engagement entitled
“Indemnification,” “Corporate Obligation,” “Additional Services,” Attorneys’
Fees” and “Governing Law,” and the parties’ respective rights and obligations
thereunder, shall not terminate and shall survive. Trilogy acknowledges that as
of the date of this Agreement, it has not performed any “Additional Services”
and accordingly as of this date Trilogy has no claim against Entrada for
reimbursement for such services. 

2. Trilogy
agrees to assign to Entrada that portion of the Warrant that evidences the right
to purchase 8,500,000 shares of Common Stock. Entrada agrees that Trilogy shall
retain that portion of the Warrant evidencing the right to purchase 1,500,000
shares. Trilogy shall execute and deliver to Entrada an assignment of the
certificate evidencing the Warrant to purchase 10,000,000 shares against the
delivery of a new certificate evidencing the portion of the Warrant that was not
assigned to Entrada. 

3. This
Agreement shall be governed and construed under the laws of the State of
California.

4. Entrada
and each of its officers, directors, shareholders, employees, agents and
attorneys; its predecessors, successors, assignors and assignees; its
affiliates; and all persons and entities acting by, through, under, or in
concert with them or any of them (collectively, with Entrada, the “Entrada Releasors”) do
hereby release and forever discharge Trilogy and its affiliates and their
respective officers, directors, employees, shareholders, agents and attorneys;
their respective predecessors, successors, assignors and assignees; and all
persons and entities acting by, through, under, or in concert with them or any
of them (collectively, the “Trilogy
Releasees”), of
and from any and all manner of action or actions, cause or causes of action, in
law or in equity, suits, debts, liens, contracts, agreements, promises,
liabilities, claims, demands, damages, losses, costs or expenses, of any nature
whatsoever, whether known or unknown, fixed or contingent, which the Entrada
Releasors now or may hereafter have against the Trilogy Releasees, or any of
them, by reason of any matter, cause or thing whatsoever from the beginning of
time to the date hereof which is based upon, arises out of, or relates to the
Letter of Engagement or Trilogy’s services pursuant to the Letter of
Engagement.

5. Trilogy
and each of its officers, directors, shareholders, employees, agents and
attorneys; its predecessors, successors, assignors and assignees; its
affiliates; and all persons and entities acting by, through, under, or in
concert with them or any of them (collectively, with Trilogy, the “Trilogy
Releasors”) do
hereby release and forever discharge Entrada and its affiliates and their
respective officers, directors, employees, shareholders, agents and attorneys;
their respective predecessors, successors, assignors and assignees; and all
persons and entities acting by, through, under, or in concert with them or any
of them (collectively, the “Entrada
Releasees”), of
and from any and all manner of action or actions, cause or causes of action, in
law or in equity, suits, debts, liens, contracts, agreements, promises,
liabilities, claims, demands, damages, losses, costs or expenses, of any nature
whatsoever, whether known or unknown, fixed or contingent, which the Trilogy
Releasors now or may hereafter have against the Entrada Releasees, or any of
them, by reason of any matter, cause or thing whatsoever from the beginning of
time to the date hereof which is based upon, arises out of, or relates to the
Letter of Engagement, except for claims arising from obligations of Entrada
under sections of the Letter of Engagement which survive pursuant to Section 1
of this Agreement. 

6. Each of
Trilogy and Entrada acknowledges that it has been advised by it legal counsel
and is familiar with the provisions of California Civil Code Section 1542, which
provides as follows: 

“A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.”

Each of
Trilogy and Entrada expressly waives any rights it may have under such
statute.

7. This
Agreement may be signed in any number of counterparts, which counterparts shall
be treated as originals for all purposes, and all so executed shall constitute
one agreement, binding on all of the parties hereto, notwithstanding that all
parties are not signatory to the same counterpart.

8. If any
action or proceeding is brought to enforce or interpret any provision of this
Agreement, the prevailing party shall be entitled to recover as an element of
its costs, and not its damages, reasonable attorneys’ fees to be fixed by the
court. 

9. This
Agreement constitutes the entire Agreement among the parties, supersedes all
prior agreements, and may not be modified or amended except in writing executed
by all parties hereto.

10. This
Agreement will be binding upon the parties hereto, and their respective
administrators, successors and assigns.

IN
WITNESS WHEREOF, the
undersigned have executed this Agreement on the day and year first above
written.

	
       

      ENTRADA
      NETWORKS, INC.

       

       

      By:
      /s/ Kanwar J. S. Chadha

      Kanwar
      J.S. Chadha Ph.D

      President
      and Chief Executive Officer
	
      TRILOGY
      CAPITAL PARTNERS, INC.

       

       

      By:
      /s/ Paul Karon

      Paul
      Karon

      President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]