Document:

exv10w7

EXHIBIT 10.7

LANDSTAR SYSTEM, INC.

AMENDED AND RESTATED DIRECTORS STOCK COMPENSATION PLAN

ARTICLE I

PURPOSES AND TERM

     1.1 Purposes. The purposes of the Amended and Restated Landstar System, Inc.
Directors Stock Compensation Plan (the “Plan”) are to enable Landstar System, Inc. (the
“Company”) to attract, retain and motivate the best-qualified directors and to enhance a
long-term mutuality of interest between the directors and stockholders of the Company by providing
directors of the Company who are neither officers nor employees of the Company or any of its
subsidiaries (such directors, the “Eligible Directors”) with compensation in the form of
shares of the common stock, par value $0.01 per share, of the Company (“Shares”).

     1.2 Term. The Plan became effective as of the annual meeting of the stockholders of
the Company (an “Annual Meeting”) held on May 15, 2003. The Plan shall continue in effect,
unless sooner terminated pursuant to Article V, until February 5, 2013, the tenth anniversary of
the date on which it was adopted by the Board of Directors of the Company (the “Board”).
Awards made under the Plan prior to calendar year 2010 shall be governed by the terms and
conditions set forth in the Plan at the time such awards were granted. Any awards made under the
Plan during or following calendar year 2010 shall be made pursuant to and governed by the terms and
conditions of the Plan as amended and restated herein.

ARTICLE II

ADMINISTRATION

     2.1 Rules, Interpretation and Determination. The Plan shall be administered by the
Board. The Board shall have full authority to interpret and administer the Plan, to establish,
amend and rescind rules for carrying out the purposes of the Plan, and to take all other actions
that it deems necessary or advisable for administering the Plan. Any authority exercised by the
Board under the Plan and any determination or interpretation made by the Board in respect of the
Plan shall be exercised or made by it in its sole discretion, and all determinations,
interpretations or other actions made or taken by the Board pursuant to the provisions of the Plan
shall be final, binding and conclusive for all purposes and upon all persons.

     2.2 Delegation by the Board. All the powers, duties and responsibilities of the
Board specified in the Plan may, to the full extent permitted by applicable law, be exercised and
performed by a committee of the Board to the extent authorized by the Board to exercise and perform
such powers, duties and responsibilities. Any authority duly exercised by such committee and any
determination or interpretation made by such committee in the exercise of such authority shall be
exercised or made in its sole discretion and shall be final, binding and conclusive for all
purposes and upon all persons.

 

 

     2.3 Agents and Indemnification. The Board or any committee thereof may employ such
legal counsel, consultants and agents as it may deem desirable for the administration of the Plan,
and may rely upon any opinion received from any such counsel or consultant and any computation
received from any such consultant or agent. No member or former member of the Board or any
committee thereof shall be liable for any action or determination made in good faith with respect
to the Plan. To the maximum extent permitted by applicable law and the Company’s Certificate of
Incorporation and Bylaws, each member or former member of the Board or any committee thereof shall
be indemnified and held harmless by the Company against any cost or expense (including counsel
fees) or liability (including any sum paid in settlement of a claim with the approval of the
Company) arising out of any act or omission to act in connection with the Plan, unless arising out
of such person’s own fraud or bad faith. Such indemnification shall be in addition to any rights
of indemnification the person may have as a director, officer or employee or under the Certificate
of Incorporation of the Company or the Bylaws of the Company.

ARTICLE III

SHARE AWARDS

     3.1 Share Awards. During the remaining term of the Plan, each Eligible Director who
is elected or re-elected at an Annual Meeting to serve a three-year term on the Board shall
receive, on the first business day after such Annual Meeting, a number of Shares equal to the
quotient of (i) $225,000 divided by (ii) the fair market value (as determined under
the Amended and Restated Landstar System, Inc. 2002 Employee Stock Option and Stock Incentive Plan,
as in effect from time to time (the “ESOSIP”)) of one Share on the date of grant, rounded
to the nearest whole number of Shares. For the avoidance of doubt, and notwithstanding anything in
this Plan to the contrary, no Shares shall be granted hereunder after the term of this Plan
expires.

     3.2 Service of Fewer than Three Years. In the event that an Eligible Director
commences service to the Board on a date during the term of the Plan that is between Annual
Meetings, or otherwise commences a term of fewer than three years, such Eligible Director shall be
entitled to receive a number of Shares equal to the quotient of (i) $225,000 multiplied by
a fraction, the numerator of which is the number of days in such term and the denominator of which
is 1,095, divided by (ii) the fair market value (as determined under the ESOSIP, as in
effect from time to time) of one Share on the date of grant, rounded to the nearest whole number of
Shares. The Eligible Director shall receive this pro rata number of Shares within 10 business days
following his or her commencement of services.

     3.3 Adjustments. Subject to Article V, and provided that such adjustment is
permitted under Section 409A of the Internal Revenue Code of 1986, as amended, the Board may at any
time and from time to time adjust the time and form of payment and amount of any compensation
payable under this Plan.

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     3.4 Forfeiture of Shares. Except as otherwise determined by the Board, the Shares
issued to an Eligible Director shall be forfeited upon the termination of such Eligible Director’s
service as a director of the Company prior to the third anniversary of the Annual Meeting in
respect of which such Shares were granted. Notwithstanding the foregoing, except as otherwise
determined by the Board, the forfeiture provisions set forth in the immediately preceding sentence
shall automatically lapse, subject to the Eligible Director’s continuous service through the
applicable anniversary of such Annual Meeting, (i) with respect to one-third of such Shares
on the first anniversary of such Annual Meeting and (ii) with respect to an additional
one-third of such Shares on the second anniversary of such Annual Meeting.

     3.5 Restrictions on Disposition of Shares. Except as otherwise determined by the
Board, for the three-year period following the Annual Meeting in respect of which the Shares were
granted to an Eligible Director, neither such Eligible Director nor any of such Eligible Director’s
heirs or representatives shall sell, assign, transfer, pledge or otherwise directly or indirectly
dispose of or encumber any such Shares to or with any other person, firm or corporation (including,
without limitation, transfers to any other holder of the Company’s capital stock, dispositions by
gift, by will, by a corporation as a distribution in liquidation and by operation of law, other
than a transfer of such Shares by operation of law to the estate of the Eligible Director upon the
death of the Eligible Director, provided that such estate shall be bound by all provisions of the
Plan). Notwithstanding the foregoing, the restrictions on the transfer of such Shares under this
section shall automatically lapse (and the legend referred to in Section 3.5 shall be removed) upon
the termination of such Eligible Director’s service as a director of the Company, to the extent
such Shares are not forfeited under Section 3.4.

     3.6 Issuance of Stock Certificates; Legends. Upon the issuance of Shares pursuant to
this Plan, the Company shall either (i) record on its books and records, in a manner
generally consistent with its then current procedures for recording stock ownership, the Eligible
Director’s ownership of an appropriate number of Shares, or (ii) deliver a certificate or
certificates for the Shares issued by the Company in the name of the Eligible Director receiving
such Shares, such certificate(s) to be delivered to or upon the order of such Eligible Director.
Certificates for Shares issued hereunder shall bear such legend or legends as the Board, in its
discretion, determines to be necessary or appropriate to prevent a violation of, or to perfect an
exemption from, the registration requirements of the Securities Act of 1933, as amended, or to
implement the provisions of the Plan or any agreements between the Company and the Eligible
Director with respect to such Shares including, without limitation, a legend reflecting the
restrictions on the transfer of such Shares under Section 3.5, which will include, without
limitation, the following language:

3

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE
TERMS AND CONDITIONS (INCLUDING TRANSFER RESTRICTIONS) CONTAINED
IN THE LANDSTAR SYSTEM, INC. AMENDED AND RESTATED
DIRECTORS STOCK COMPENSATION PLAN AND NEITHER THIS CERTIFICATE NOR
THE SHARES REPRESENTED BY IT ARE ASSIGNABLE OR OTHERWISE
TRANSFERABLE EXCEPT IN ACCORDANCE WITH SUCH PLAN, A COPY OF WHICH
IS ON FILE WITH THE SECRETARY OF THE COMPANY.”

     3.7 Securities Law Matters. The Board, in its discretion, may require an Eligible
Director to make such representations and furnish such information, as it may consider appropriate
in connection with the issuance of Shares in compliance with applicable laws, rules, and
regulations.

ARTICLE IV

SHARES SUBJECT TO PLAN

     4.1 Shares Available. Subject to the provisions of Section 4.2, the maximum number
of Shares that may be issued under this Plan may not exceed 200,000 in the aggregate.

     4.2 Adjustment in Capitalization. The number of Shares that are eligible for grant
or available for issuance under this Plan may be adjusted by the Board if it shall deem such an
adjustment to be necessary or appropriate to reflect any stock dividend, stock split or share
combination, or any recapitalization (including, without limitation, the payment of an
extraordinary dividend), merger, consolidation, combination, spin-off, distribution of assets to
stockholders, exchange of shares, or other similar corporate change.

     4.3 Delivery of Shares. Any Shares to be delivered under this Plan may consist, in
whole or in part, of treasury shares or authorized but unissued shares not reserved for any other
purpose.

ARTICLE V

TERMINATION, MODIFICATION AND AMENDMENT

     The Board at any time may terminate or suspend the Plan, and from time to time may amend or
modify the Plan; provided that without the approval by a majority of the votes cast at a meeting of
stockholders at which a quorum representing a majority of the Shares is present in person or by
proxy, no amendment or modification may (i) materially increase the benefits accruing to Eligible
Directors under the Plan, (ii) except as expressly provided in Section 4.2, materially increase the
number of Shares subject to the Plan, (iii) materially modify the requirements for participation in
the Plan, or (iv) make any other amendment or modification that would require the approval of the
stockholders of the Company under applicable laws, rules or regulations.

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ARTICLE VI

GENERAL PROVISIONS

     6.1 Requirements of Law. The Plan, the obligations of the Company hereunder and the
compensation of Eligible Directors shall be subject to all applicable laws, rules and regulations,
and to such approvals by any governmental agencies or national or foreign securities exchanges as
may be appropriate or required, as determined by the Board. Notwithstanding any other provision of
this Plan, no Shares shall be issued if the Board determines that such payment or issuance would
result in a violation of applicable law, rule or regulation, including the federal securities laws
and any applicable state or foreign securities laws. The Company shall not be obligated by virtue
of any provision of the Plan to issue Shares in violation of any such laws, rules, or regulations,
and neither the Company nor its directors or officers shall have any obligation or liability to any
person because of such non-issuance.

     6.2 Listing of Shares. If at any time the Board shall determine in its discretion
that the listing, registration or qualification of the Shares covered by this Plan upon any
national securities exchange or under any United States or non-United States federal, state or
other law, or the consent or approval of any governmental regulatory body, is necessary or
desirable as a condition of, or in connection with, the issuance of Shares under this Plan, no
Shares will be issued unless and until such listing, registration, qualification, consent or
approval shall have been effected or obtained, or otherwise provided for, free of any conditions
not acceptable to the Board.

     6.3 No Right to Remain as a Director. This Plan shall not impose any obligations on
the Company to retain any Eligible Director as a director of the Company nor shall it impose any
obligation on the part of any Eligible Director to remain in service to the Company.

     6.4 No Rights as a Stockholder. Except as provided in the Plan, neither an Eligible
Director nor any person or persons to whom such Eligible Director’s Shares shall have passed by
will or by the laws of descent and distribution, as the case may be, shall have any voting,
dividend or other rights or privileges as a stockholder of the Company with respect to any Shares
unless and until a certificate for Shares is issued in respect thereof.

     6.5 Tax Withholding. The Company shall have the power to withhold, or require an
Eligible Director to remit to the Company promptly upon notification of the amount due, an amount
determined by the Company to be sufficient to satisfy all federal, state, local and foreign
withholding tax requirements (if any) in respect of the issuance of Shares and the Company may
defer the issuance of Shares until such requirements are satisfied. The Board may permit or
require an Eligible Director to satisfy his tax withholding obligation hereunder in such other
manner subject to such conditions, as the Board shall determine.

5

 

     6.6 Beneficiary Designation. Each Eligible Director under this Plan may from time to
time name any beneficiary or beneficiaries (who may be named contingently or
successively) to whom any benefit under the Plan is to be paid or by whom any right under the
Plan is to be exercised in case of his death. Each designation will revoke all prior designations
by the same Eligible Director, shall be in a form prescribed by the Company, and will be effective
only when filed by the Eligible Director in writing with the Company during his lifetime. In the
absence of any such designation, benefits remaining unpaid at the Eligible Director’s death shall
be paid to or exercised by the Eligible Director’s surviving spouse, if any, or otherwise to or by
his estate.

     6.7 Controlling Law. This Plan shall be construed and enforced according to the laws
of the State of Delaware without regard to its conflicts of laws principles.

     6.8 Freedom of Action. Subject to Article V, nothing in the Plan shall be construed
as limiting or preventing the Company or any of its subsidiaries from taking any action with
respect to the operation or conduct of its business that it deems appropriate or in its best
interest.

     6.9 Non-Exclusivity. Subject to applicable laws, rules and regulations, neither the
adoption of the Plan by the Board nor the submission of the Plan to the stockholders of the Company
shall be construed as creating any limitations on the power of the Board to adopt such other
compensatory arrangements for directors of the Company as it may deem desirable.

     6.10 Headings and Captions. The headings and captions herein are provided for
reference and convenience only, shall not be considered part of this Plan, and shall not be
employed for construction of the Plan.

     6.11 Severability. In the event that one or more provisions of this Plan shall
become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability
of the remaining provisions contained herein shall not be affected thereby.

6exv10w13

    Exhibit 10.13

 

    CONSULTING
    SERVICES AGREEMENT

 

    CONSULTING SERVICES AGREEMENT (the
    “Agreement”), dated as of December 18, 2009, by
    and between Landstar System, Inc. (the “Company”), and
    Jeffrey C. Crowe (“Consultant”).

 

    WHEREAS, since April 27, 2004, Consultant has been serving
    as the Chairman of the Company’s Board of Directors (the
    “Board”) and as a common law employee of the Company
    pursuant to the terms of a letter agreement, dated
    April 27, 2004, between the Company and Consultant (the
    “Letter Agreement”);

 

    WHEREAS, effective as of January 4, 2010 (the
    “Retirement Date”), Consultant has determined to
    retire from such employment with the Company and to cease to
    serve as the Chairman of the Board, but to remain on the Board
    as a director at least for the balance of his term ending at the
    Annual Meeting of the Company’s Stockholders in 2011;

 

    WHEREAS, as provided for under the Letter Agreement, from and
    after the Retirement Date, the Company wishes to continue to
    avail itself of Consultant’s knowledge, expertise and
    experience for a transition period by appointment of Consultant
    as a consultant to provide services that are helpful to the
    operation of the business of the Company in accordance with the
    terms and conditions set forth below; and

 

    WHEREAS, as provided for under the Letter Agreement, Consultant
    is willing to serve as a consultant to the Company upon the
    terms and conditions set forth below.

 

    NOW, THEREFORE, in consideration of their mutual promises, the
    Company and Consultant agree as follows:

 

    1. Retirement as
    Chairman.  Effective as of the Retirement
    Date, Consultant shall cease to serve as the Chairman of the
    Board, but shall remain on the Board as a director at least for
    the balance of his term ending at the Annual Meeting of the
    Company’s Stockholders in 2011.

 

    2. Consulting Services.  Subject to
    paragraph 8 hereof, during the period (the “Consulting
    Period”) beginning on January 5, 2010, the day
    after the Retirement Date, and continuing until
    January 5, 2012, the second anniversary thereof,
    Consultant shall personally provide to the Chief Executive
    Officer of the Company (“CEO”) or the Board such
    consulting services as either the CEO or the Board may
    reasonably request from time to time. Such consulting services
    shall be of a nature and scope that will generally be of a type
    consistent with Consultant’s stature and experience.

 

    3. Time, Location and Maximum
    Commitment.  Consultant shall provide the
    consulting services at such time and in such locations as
    Consultant shall determine, unless the Company shall otherwise
    request a specific time and location upon reasonable advance
    notice. Consultant shall honor any such request unless he has a
    conflicting business or personal commitment that would preclude
    him from performing such services at the time
    and/or place
    requested by the Company, and in such circumstances the parties
    shall make reasonable efforts to arrange a mutually satisfactory
    alternative. The Company shall use its reasonable best efforts
    not to require the performance of consulting services in any
    manner that unreasonably interferes with any other business or
    pre-scheduled personal activity of Consultant. It is not
    intended and in no event shall Consultant be required to perform
    services for the Company hereunder at a level that would require
    Consultant to devote to such services twenty percent (20%) or
    more of the average level of bona fide services performed by
    Consultant while an employee of the Company over the
    36 month period immediately preceding the Retirement Date
    (the “Maximum Commitment”). The Company and Consultant
    acknowledge that they have established the Maximum Commitment so
    that Consultant will have incurred a separation from service as
    of the Retirement Date pursuant to, and in accordance with, the
    regulations promulgated under Section 409A of the Internal
    Revenue Code of 1986, as amended, and will act accordingly.

 

    4. Status.  Consultant shall not,
    by virtue of the consulting services provided hereunder, be
    considered to be an officer or employee of the Company or any of
    its affiliates, and shall not have the power or authority to
    contract in the name of or bind the Company or any such
    affiliates. As an independent contractor, Consultant may perform
    services for others, provided that in the event Consultant

 

    performs services for a competitor of the Company, the Company
    will have the right to terminate Consultant’s services
    hereunder in accordance with paragraph 8 hereof. Consultant
    shall at all times be treated as an independent contractor and
    shall be responsible for the payment of all taxes with respect
    to all amounts paid to him hereunder. Consultant understands and
    acknowledges that from and after the Retirement Date, Consultant
    shall no longer be entitled to participate in any employee
    benefits plan or fringe benefit or perquisite program made
    available only to employees or officers of the Company and its
    subsidiaries, including its health and welfare plans. Nothing in
    this Agreement shall be construed to limit the rights of
    Consultant to receive any benefits or compensation otherwise
    payable to Consultant in respect of his prior services as an
    officer and employee of the Company under the express terms and
    conditions of any agreement between him and the Company or the
    applicable terms and conditions of any employee benefit plan,
    program or arrangement.

 

    5. Consulting Fees.  In respect of
    the services to be performed hereunder during the Consulting
    Period, the Company shall pay Consultant at the annual rate of
    $250,000 per annum, payable quarterly, in advance; it being
    understood and agreed that such amount will be in lieu of any
    and all fees and other compensation that might otherwise be
    payable to Consultant for services as a director during the
    Consulting Period; provided the Company shall pay or reimburse
    Consultant for reasonable expenses incurred by Consultant in
    connection with services provided as a director during the
    Consulting Period subject to the terms and conditions of the
    expense reimbursement policies applicable to expenses incurred
    by directors of the Company.

 

    6. Expenses.  The Company shall pay
    or reimburse Consultant for such reasonable expenses incurred by
    Consultant in the course or on account of rendering consulting
    services hereunder in accordance with, and subject to the terms
    and conditions of, the expense reimbursement policy applicable
    to expenses incurred by senior officers of the Company, as in
    effect on the date hereof.

 

    7. Confidential
    Information.  Consultant understands and
    agrees that in the course of his services hereunder he will
    acquire
    and/or have
    access to confidential information, trade secrets, proprietary
    data and/or
    non-public information concerning the business, professional
    and/or
    personal affairs, activities and operations of the Company, the
    Company’s subsidiaries and affiliates
    and/or the
    officers, employees
    and/or
    representatives of any of them (collectively, the
    “Companies”) and the Companies’ plans, methods of
    doing business and practices and procedures, as well as
    confidential information disclosed to the Companies from time to
    time by third parties, any or all of which shall be referred to
    herein as the “Confidential Information.” Without the
    prior written consent of a duly authorized officer of the
    Company, and except to the extent required in connection with
    the performance of his duties hereunder, by an order of a court
    having competent jurisdiction or under subpoena from an
    appropriate government agency, Consultant shall not disclose any
    Confidential Information to any third person, unless such
    Confidential Information has been previously disclosed to the
    public by the Companies or has become public knowledge other
    than by Consultant’s breach of this Agreement or any other
    agreement with the Company by which he may be bound. The
    Consultant’s duties and obligations under this
    paragraph 7 are in addition to, and not intended to
    supersede, limit, amend or otherwise modify any existing
    covenant made by Consultant in favor of the Company in
    connection with, as a condition of, or pursuant to the terms of
    any agreement entered during the term of, his employment or
    directorship with the Company, whether pertaining to the
    preservation of confidential information or otherwise.

 

    8. Early Termination of Consulting
    Period.  Notwithstanding anything in this
    Agreement to the contrary, the Consulting Period, and the
    Company’s obligations to make any payments to Consultant
    hereunder, shall immediately terminate (i) if, in the
    event Consultant performs services for a competitor of the
    Company, the Company provides Consultant written notice of such
    termination or (ii) upon Consultant’s death.

 

    9. Miscellaneous.  This Agreement
    is for the personal services of Consultant and may not be
    subcontracted or assigned by Consultant in any fashion, whether
    by operation of law, or by conveyance of any type, without the
    prior written consent of the Company, which consent the Company
    may withhold in its sole discretion. Effective on the Retirement
    Date, the Letter Agreement shall terminate and be of no further
    force or effect. This Agreement may be amended only by a written
    instrument signed by the Company and Consultant. Except as
    otherwise expressly provided hereunder, this Agreement shall

 

    constitute the entire agreement between the Company and
    Consultant with respect to the provision of consulting services
    by the Consultant to the Company. This Agreement may be executed
    in counterparts, each of which shall be deemed an original but
    all of which together shall constitute one and the same
    instrument.

 

    10. Governing Law.  This Agreement
    shall be governed by the laws of New York, without reference to
    the principles of conflicts of law.

 

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

 

    LANDSTAR SYSTEM, INC.

 

    /s/  Henry
    H. Gerkens

			
	 	    By: 
	
    Henry H. Gerkens

			
	 	    Title: 
	
    President and Chief Executive Officer

 

    JEFFREY C. CROWE

 

    /s/  Jeffrey
    C. Crowe

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