Document:

EX-10.4

 Exhibit 10.4 

SECOND AMENDED AND RESTATED PLEDGE OF EQUITY AGREEMENT 

THIS SECOND AMENDED AND RESTATED PLEDGE OF EQUITY AGREEMENT (“this Agreement”) is entered into on the February 23, 2018, by and between the
following parties: 
 Party A (pledgee): Zhejiang Hailiang Education Consulting and Service Co., Ltd (hereinafter referred to as Party A) 

Residential Address: Xilin Road, Diankou Town, Zhuji City, Zhejiang 

Party B: Feng Hailiang (hereinafter referred to as Party B) 

Identity Card No.: 3306251960102860116 
 Residential Address:
No.382, Jiefang Road, Diankou Town, Zhuji City, Zhejiang 
 Party C: Zhejiang Zhongyida Investment Co., Ltd (hereinafter referred to as Party C) 

Residential Address: The 2nd floor, Building 67, East China Auto Parts and Plumbing City, Diankou Town,
Zhuji City, Zhejiang; 
 Party D: Zhejiang Hailiang Education Investment Group Co.,Ltd (hereinafter referred to as Party D) 

Residential Address: Hailiang business hotel Room 505, Diankou Town, Zhuji City, Zhejiang; 

. 
 Whereas, 

 1. Party A, Party B and Party D have signed the AMENDMENT AND RESTATEMENT OF the PLEDGE of EQUITY AGREEMENT on
June 30, 2017 (the “2017 Agreement”). Party A, Party B, Party C and Party D intend to amend and restate the 2017 Agreement and enter into this Agreement. 

2. Party A, in accordance with the laws of the PRC, is an established and validly existing whole foreign-owned enterprises, which principally engaged in the
education and management consulting services, educational software and electronic product development, enterprise management consulting; laboratory leasing, logistics management services; 

3. Party B and Party C (each a “pledgor,” together “pledgors”) are the investors of Party D. Party B and Party C together, hold in the
aggregate, 100% equity interest of Party D. 
 4. Party D is registered in accordance with the laws of the PRC and is a validly existing Limited Liability
Company. 
 5. Party A, Party B, Party C and Party D have entered into the Second Amended and Restated Consulting Service Contract and the Second Amended
and Restated Option Agreement on February 23, 2018; Party A and Party B, Party C have entered into the Second Amended and Restated Power of Attorney on February 23, 2018; to ensure the performance of the contracts and legitimate rights and
interests of Party A, the Party B, Party C would take all the equity interests or similar rights it hold of Party D as pledge for the Second Amended and Restated Consulting Service Contract, Second Amended and Restated Option Agreement, Second
Amended and Restated Power of Attorney, the Party A, as pledgee, and the Party A has priority claim toward pledge of stock rights or similar rights. 

Therefore, the parties hereto reach this pledge of equity through negotiation, 
  

	1.	Definition 

 The following words of the contract refers only to the following meanings,
unless the context otherwise requires,  
 Pledge, refers to all the contents listed in the article 2 of this
contract. 
 Options or similar equity, refers to Party A’s entire equity interest owned in Party D or similar
interests, and all present and future rights, interests and revenue based on those options or similar interests, as well as all of its current or future receivable payment or compensation of Party D’s equity interest or similar rights, pledge
profits, dividends and other payments and so on that is allocated to pledgors by the Party D. 

 Principal contract, refers the Second Amended and Restated Consulting
Service Contract, the Second Amended and Restated Option Agreement, the Second Amended and Restated Power of Attorney etc. and their annex reached by party A, Party B, Party C and Party D on February 23, 2018. 

Events of Default, refers to any case of this contract listed in Article 7. 

Notice of Default, refers to an event of default notice issued under this contract declared by Party A. 

Force Majeure, means any of the events beyond the reasonable control of one party, and even under the attention of the affected
party, any of the events is still unavoidable, including but not limited to, acts of government, the forces of nature, fire, explosion, geographic variation, storms, floods, earthquakes, tidal, lightning or war. 

 

	2.	Pledge 

 2.1 The Pledgors would pledge the entire equity interest in Party D or similar
interests thereof to party A, as the guarantee of party A’s rights and interests in principal contract, Party A enjoy the priority claim toward equity pledge or similar interests. 

2.2 The scope of the equity interest or similar equity pledge in this contract is Party D and its affiliate institutions and/or all the expense
(including legal expense), expenditure, cost to undertake, interests, damages, compensation, cost to realize creditor, all the expenses pledgee forced pledgor to perform its obligations under this contract that Party B and Party C should pay Party
A, and in case of any reason that may cause invalidity of the whole contract or part of it, Party D and pledgor shall bear the responsibility. 

 2.3 Pledge under this contract refers to all the remedies for breach of contracts and rights
owned by the Party A, and Party A has the right to sell in discount, launch an auction and sell off the equity interests or similar rights pledged to Party A by pledger to have priority claim, or in compliance with Chinese laws and regulations, to
have priority claim in a manner which is both agreed in disposing pledge of stock or similar rights and interests. 
 2.4 Unless otherwise
expressly agreed in writing, the pledge under this contract shall be released only when Party D and pledgor have fully and completely fulfilled all of its obligations and responsibilities under the principal contract, and with written approval by
the Party A; a reasonable fee for the cancellation of the pledge shall be borne by the pledgor. If Party D or pledgor have not completely fulfill all of its obligations or liabilities under such contract or any part of the obligations or liabilities
upon expiration, Party A still enjoys pledge under the contract until such obligation and the duty are made in a reasonable manner satisfactory to the Party A and completely fulfilled. 

 

	3.	Execution and duration 

 3.1 This equity pledge contract shall be executed and come into
effect from the date of signature and common seal of the parties. 
 3.2 During the effective period of this contract, if Party D fails to
pay money provided in the Second Amended and Restated Consulting Service Agreement, the Second Amended and Restated Exclusive Option Agreement, the Second Amended and Restated Power of Attorney, and other payment, or fails to perform the other
provisions of the contract, upon reasonable notice and in accordance with the laws and regulations of the premise, Party A has the rights to exercise the right of pledge according to the provisions of this contract. 

3.3 The duration of this pledge of stock rights is the day when the contract obligation is fulfilled or the debt secured by article 2.2 of this
contract is paid off. 
 3.4 During the term of validity, Party B, Party C and Party D shall not unilaterally terminate this Agreement. Party
A Shall not terminate this Agreement without any cause. 

	4.	Pledge Registration 

 4.1 Party B, Party C and Party D should register the pledge of
equity interests under this Agreement with administrative bureau for industry and commerce in charge of Party D within one month from the date the contract is signed and provide to Party A the pledge registration documents. 

4.2 In case the pledge recorded items change and shall change records according the law, Party A and Party D shall make a corresponding change
records in five working days after original record changed, and submit related registration documents. 
 4.3 During the pledge, pledgor
shall indicate the Party D not to allocate any dividends, bonuses, or to take any profit distribution plan; if the pledgor shall obtain any other economic benefits from dividends, bonuses or other profit distribution plan of the pledge, shall remit
money directly into the bank account designated by Party A as Party A has demanded; without the prior written consent of Party A, shall not be used and first be used as equity pledge for payment of guaranteed debt. 

4.4 During the equity pledge, if pledgor subscribe new registered capital (“new equity”), the part of the new equity automatically
becomes equity pledge under the contract, pledgor shall complete the procedures needed to pledge in this part of the new equity in 10 working days after obtaining new equity. If the pledgor fails to complete the relevant formalities in accordance
with the proceeding provisions, Party A has the right to realize pledge immediately in accordance with the provisions of article 8 of this contract. 
  

	5.	Declaration and Commitments of the Pledgor 

 The Pledgor makes the following
representations and warranties to the party A at the time of signing this contract, and confirms that party A execute and perform this contract depending on the statement and guarantee. 

 5.1 The pledgor is a China citizen with full capacity for civil conduct, has legitimate right and
ability to enter into this Agreement and to bear the corresponding legal responsibility. Pledgor lawfully possesses and has the right to dispose shares under this contract, and has the right to provide party A with pledge on the equity. 

5.2 From the date of execution of this contract to the time Party A have the pledge according to the provisions of this contract, if Party A
would use his pledge or his rights according to the contract, there should be no legal claim from any other party or proper intervention. 

5.3 Party A shall have the right to exercise the right of pledge in the manners prescribed in the laws and regulations and the provisions of
this contract. 
 5.4 Except for Pledge established by this contract on equity, equity held by pledgor does not exist any other encumbrance
or any form of security interests of third people (including but not limited to pledge). 
 5.5 The time this contract comes into effect, the
pledgor is the only legal owner of equity pledge, and there does not exist any ongoing civil, administrative or criminal, administrative punishment or arbitration that may have a material adverse effect on the economic situation or the performance
of its obligations under this Agreement and the guarantee liability. 
 5.6 There does not exist taxes or fees payable but unpaid or legal
procedures that shall be complete but incomplete that are related to equity interests. 
 5.7 The provisions of this contract are the true
meaning of all parties, legally binding on all parties. 

	6.	Commitment of the Pledgor 

 6.1 In the duration of the agreement, Pledgors promise to
Party A that pledgors will: 
 6.1.1Besides transferring the shares upon the requirements of Party A to Party A or to a person designated by
Party A , without the prior written consent of Party A, any other party shall not transfer equity, or establish or permit the existence of any burden of rights or any form of third party security interest that may affect the rights and interests of
Party A; any deed to transfer ownership of equity, to pledge all or part of the equity or any other security interest without Party A’s consent is void. 

6.1.2 Comply with all applicable provisions of laws, regulations, in the receipt of notices, instructions or recommendations of the relevant
competent authorities, in five working days, other parties shall present Party A to the above notice, instruction or advice, and to act in accordance with the reasonable instructions of Party A; 

6.2 The Pledgor agrees, Party A exercise its rights according to the contract, and there shall not exist any interruption or nuisance from the
pledgor, the successor, the assignee or any other person. 
 6.3 Pledgor hereby undertakes to Party A, to protect or improve the protection
on the performance of obligations of pledgor and (or) Party D, the pledgor will make all necessary modifications (if applicable) to the article of association (if it is a legal person) of it and Party D, sign honestly, and urge other interested
party to sign all the legal titles and contract, and(or ) to perform as demanded by Party A, to facilitate the exercise Party A’s pledge right, to sign the modification documents relating to share certificate with Party A, or any third party
designated, and provide Party A all the relating pledge documents deemed necessary within a reasonable period. 
 6.4 The Pledgor guarantees
to Party A that, for Party A’s interest, pledgor will abide by and fulfill all the guarantees, commitments, contracts and statement. If the pledgor fails to completely fulfill its guarantee, commitment, contract and the statement, pledgor shall
losses shall compensate all the loss of Party A resulting from this failure to fulfill. 

 6.5 Pledge guarantees Party A, without the prior written consent of Party A, the pledgor would
not start liquidation or dissolution of Party D on its own. 
  

	7.	Representations and Warranties of Party D 

 Party D guarantees and ensures Party A as
follows, 
 7.1 Party D is a registered legal person duly organized and existing under the laws of the People’s Republic of China, and
has the qualification as independent legal person; has the complete and independent legal status and legal capacity to sign, deliver and perform this contract, and is a independent subject of litigation. 

7.2 All the reports documents and information of items relevant to equity pledge or required hereof, provided by Party D prior to the
commencement of this Agreement, in all material respects as of the date of this Agreement, are true and accurate. 
 7.3 All the reports
documents and information of items relevant to equity pledge or required hereof, provided by Party D after the commencement of this Agreement, in all material respects as of the date of providing, are true and effective. 

7.4 This Agreement properly signed by Party D, to Party D will constitute legal, valid and binding obligations. 

7.5 It has full power and authority of Party D to sign and deliver this Agreement and any hereof transaction relating documents to sign, and it
has the full power and authorization to complete the transaction hereof. 

 7.6 There exists no pending or threatening litigation, legal proceedings or claim to Party D or
its assets (including but not limited to equity pledged) in any court or tribunal as well in any government institutions and administration, which will cause significant or harmful effect on the financial condition of Party D or the ability of
performing the obligations and the guarantee liabilities hereunder. 
 7.7 Party D hereby undertakes to Party A that the representations and
warranties above in any situation prior to the full performance of the obligations hereof or the clearance of the secured debt, are all true and correct, and will be fully complied with. 

 

	8.	Events of default 

 8.1 The following shall be deemed as events of default: 

8.1.1 The Pledgor, Party D, or its successors or assigns fails to fulfill the obligations under the main contract; 

8.1.2 Any representations, warranties or commitments made in Article 5 and Article 6 hereof by the Pledgor exist material misguides or
mistakes, and (or) representations, warranties or commitments violating the Article 5 and Article 6. 
 8.1.3 The Pledgor seriously breaches
any provision hereof. 
 8.1.4 The pledge shall not abandon the equity pledged or assign the equity pledged without written consent of Party
A, or re-pledge or do any disposal that may damage Party A’s pledge right hereof, unless otherwise stipulated hereof. 

8.1.5 Any external loan, guarantee, compensation, warranty or other obligations of the Pledgor itself are required to be paid off or performed
in advance, but failed to, and Party A has reasons to believe that the ability of the Pledgor to fulfill the obligations hereof has been influenced, and then so is the interests of Party A. 

 8.1.6 The Pledgor cannot repay the general debt or other debt, and then the interests of Party A
are affected. 
 8.1.7 The relevant laws promulgated make the main contracts (including but not limited to the Second Amended and Restated
Consulting Service Agreement, Second Amended and Restated Exclusive Option Agreement, the Second Amended and Restated Power of Attorney,) illegal or the pledgor cannot continue to perform the obligations under the main contracts. 

8.1.8 Any consensus, license, approval or authorization which enables this Agreement to be implemented, to be legal or to be effectiveness, is
withdrawn, suspended, annulled or made material modification. 
 8.1.9 Due to adverse changes to the property owned by Party A, Party A
believes the ability of the Pledgor to fulfill the obligations hereof has been affected. 
 8.1.10 According to the relevant laws, other
events prevent the disposal of the pledge right of Party A. 
 8.2 If any events of Article 8.1 above or any events that may incur that
arise, once knowing or being informed, the Pledgor shall immediately notify Party A in written form. 
 8.3 Unless the default events of
Article 8.1 have been solved perfectly to Party A’s satisfaction, Party A may at any time that the default events of the Pledgor happens or after that, sent a Notice of Default in written form to the Pledgor, asking the immediately payment of
debt under the main contract or other dues. 
 If the Pledgor or Party D fails to timely correct the default performance or take necessary
remedies within 10 days after sending out the written notice, Party A is entitled to perform the pledge right in accordance with the stipulations hereof. 

	9.	The exercise of the pledge right 

 9.1 Before the costs and obligations under the
contract having been completely performed, without the written consent of Party A, Pledgor shall not transfer the equity. 
 9.2 Party A
shall send out a notice of default to pledgor in accordance with the provisions hereof, when exercising the pledge right. 
 9.3 In
accordance with the relevant laws and regulations, Party A shall have the right to be paid in priority by discount all or part of the equities hereunder in accordance with legal procedures, or auctioning or selling the equities. 

In accordance with legal procedures in all or part of the equity discount under this contract, or by auction, the sale of the equity price
first refusal. 
 9.4 Party A shall exercise the pledge right according to the Agreement, and the Pledgor shall not set up barriers, and
shall provide necessary assistance to Party A. 
  

	10.	Transfer 

 10.1 Without prior written consent of Party A, the pledgor has no right
to transfer any of his rights or obligations to third party according to the contract. 
 10.2 The contract is binding to the pledgor and its
successors, and shall be effective to Party A and its successors. 
 10.3 At any time, Party A may transfer all or any of its
rights and obligations in the principal contract to any designated third party. The assignee shall enjoy rights and undertake obligations under this circumstance. When Party A transfer its rights and obligations under the
principal contract, under Party A’s request, the pledgor shall sign relevant contracts and files of the transferring. 

 10.4 For the change of the pledgor after the transferring, the two new parties shall sign a new
pledge contract and the pledgor shall be responsible for all the relevant registration formalities. 
  

	11.	Fees and Other Charges 

 All costs associated with the contract and the actual expenses,
including but not limited to legal fees, book fees, stamp duty, any other taxes and cost, would be borne by Party D. 
  

	12.	Law Application and Dispute Resolution 

 12.1 Applicable law and dispute resolution 

The validity, interpretation, performance and settlement of disputes shall be governed by the laws of People’s Republic of China and be
explained in accordance with the laws of people’s Republic of China. 
 12.2 If there exists any dispute out of all parties of the
contract over the interpret and performance of terms in this contract, the parties shall resolve the dispute through negotiation in good faith. If consultation fails, either party may submit the dispute to China international economic and Trade
Arbitration Commission in accordance with the solution valid at the time of the arbitration rules of the committee. The place of arbitration shall be Shanghai, arbitration language shall be Chinese, the arbitration award shall be final and binding
to all the parties. 
 12.3 In addition to events of the parties arising to the dispute, all parties shall continue to perform their
respective obligations in accordance with the provisions of this contract in good will. 

 13. All notice or information relating to this Agreement sent by either party shall be written in
Chinese and English and be sent out in the way hereunder: 
 Party A: Zhejiang Hailiang Education Consulting and Service Co.,Ltd

 Address: Hailiang Mansion, No. 1508, Binsheng Road, Binjiang District, Hangzhou City, Zhejiang 

Fax: 0571-58120100 
 Tel:
0571-58121720 
 Recipient: Huang Shiqi 

Party B: Feng Hailiang 

Address: Hailiang Mansion, No. 1508, Binsheng Road, Binjiang District, Hangzhou City, Zhejiang 

Fax: 0571-58120100 
 Contact:
0571-58121278 
 Party C: Zhejiang Zhongyida Investment Co., Ltd (hereinafter referred to as Party C) 

Address:
 Fax: 

Contact: 
 Party D:Zhejiang
Hailiang Education Investment Group Co.,Ltd 
 Address: Hailiang Mansion, No. 1508, Binsheng Road, Binjiang District, Hangzhou City;

 Fax: 0571-58122010 
 Tel:
0571-58122010 
 Recipient: Zhang Simeng 
  

	14.	Annex 

 The annex to this contract is an indivisible part of this contract. 

	15.	Waiver 

 It shall not be considered as a waiver of rights, remedies, powers or privileges
when Party A do not exercise or delay in exercising any rights, remedies, or privileges under this contract. The excise of other rights, remedies, powers or privileges of Party A shall not exclude the exercise of any other rights, remedies, powers
or privileges of Party A. The rights, remedies, powers, privileges stipulated in this contract shall be applied. 
  

	16.	MISCELLANEOUS 

 16.1 Any modification, addtion or change of the contract shall be made in
written form and be valid after all parties’ sign and seal of the contract. 
 16.2 All parties hereby confirm that the contracting
parties shall reach the agreement on the basis of equality and mutual benefit of the fair and reasonable. If any provision of the contract under the contract is inconsistent with the relevant laws or therefore cannot be performed specifically, then
the provision shall be invalid or deprived of specific performance in relevant jurisdiction and the other provisions of this contract shall not be affected concerning the validity. 

16.3 The pledgor commitments that regardless of the change of proportion of equity, the provisions in this contract shall still be bonding to
the pledgor and apply to all the equity of Party D held by pledgor at that time. 
 16.4 The parties hereby confirm that, this Agreement
includes total and only agreements between Party A, Party B, Party C and Party D and replaces all negotiations, agreements, commitments and written agreements, relating to matters stipulated in this Agreement. Since the date of signing this
contract, the Second Amended and Restated Pledge of Equity Agreement which was signed on February 23, 2018 between the parties shall be terminated. 

 16.5 This contract shall be made in five copies. Party A, Party B, Party C and Party D each hold
one copy and the registration authority for Industry and Commerce shall hold one copy. 
 (THIS PAGE IS THE SIGNATURE PAGE FOR STRUCTURE
CONTRACT) 
 (SIGNATURE PAGE) 
 Party
A: Zhejiang Hailiang Education Consulting and Service Co., Ltd (Seal) 
 Legal representative/ authorized person: 

Date: /s/ Ming Wang 
 Party B: Feng
Hailiang (signature) /s/ Feng Hailiang 
 Date: 
 Party C:
Zhejiang Zhongyida Investment Co., Ltd (hereinafter referred to as Party C) (Seal) 
 Legal representative/ authorized person (signature): /s/ Aihua Zhu

 Date: 
 Party D: Zhejiang Hailiang Education Investment
Group Co.,Ltd (Seal) 
 Legal representative/ authorized person (signature): /s/ Ming Wang 

Date:exhibitv1secondamendedan

 PHX 331633863v9 SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT  THIS SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made as of April 30, 2017 (the “Effective Date”), by and between Roadrunner Transportation Systems, Inc., a Delaware corporation (the “Company”), and Curtis W. Stoelting (the “Executive”). RECITALS WHEREAS, the Company and the Executive are parties to that certain Amended and Restated Employment Agreement, dated as of March 21, 2017 (the “Original Employment Agreement”); and WHEREAS, the parties desire to amend the Original Employment Agreement to provide for certain Change in Control severance provisions and certain other changes, on the terms and subject to the conditions hereinafter set forth. AGREEMENT NOW, THEREFORE, in consideration of the foregoing recitals, which the parties agree are material to this Agreement and incorporated herein by this reference, as well as the premises, mutual covenants, and promises set forth herein, the parties agree as follows: 1. Employment. 1.1 General.  The Company hereby agrees to continue to employ the Executive, and the Executive hereby agrees to continue to serve the Company, on the terms and conditions set forth herein.  The Executive understands and agrees that employment with the Company and under this Agreement is “at will.”  The Executive’s employment may be terminated by the Company with or without Cause (as hereinafter defined), with or without notice, and without resort to any specific disciplinary procedure or process at any time, subject to the provisions of Section 4 herein, and the Executive may resign or otherwise terminate his employment with the Company at any time, with or without any reason, and with or without notice, except as otherwise may be required by Section 4.5 of this Agreement. 1.2 Duties of Executive.  The Executive shall serve as the Chief Executive Officer of the Company, shall diligently perform all services as may be assigned to him by or under the direction of the Company’s Board of Directors (the “Board”), and shall exercise such power and authority as may from time to time be determined and delegated to him by the Board.  During his employment with the Company, the Executive shall devote his full business time and attention to the business and affairs of the Company and the performance of the Executive’s duties hereunder, render such services to the best of his ability, and use his best efforts to promote the interests of the Company.  During his employment with the Company, the Executive shall not engage in any other business, profession or occupation for compensation or otherwise which would conflict or interfere in any material respect with the rendition of such services either directly or indirectly, without the prior written consent of the Board. 1.3 Place of Performance.  In connection with his employment by the Company, the Executive shall continue to be based at the Company’s principal executive offices in Cudahy, Wisconsin. 2. Compensation. 2.1 Base Salary.  The Executive shall continue to receive a base salary at the annual rate of $571,000 (the “Base Salary”) during the term of this Agreement and the Executive’s employment 

 

 2 PHX 331633863v9 hereunder, with such Base Salary payable in installments consistent with the Company’s normal payroll schedule, subject to applicable withholding and other taxes.  The Base Salary may, by action and in the sole discretion of the Board (or any authorized committee thereof), be increased at any time or from time to time.  Such Base Salary as increased shall be considered the “Base Salary.” 2.2 Bonus Compensation.  In addition to the Base Salary, the Executive shall continue to be eligible to receive bonus compensation with a minimum target equal to 90% (to be adjusted upward with changes in responsibility or based on peer group analyses) of Base Salary (each, a “Bonus”) during the term of this Agreement and the Executive’s employment hereunder based upon the achievement of certain performance metrics as shall be determined by the Board (or any authorized committee thereof) in its sole discretion.  Any bonus compensation with respect to any fiscal year of the Company shall be paid during the following fiscal year of the Company, as soon as practicable after the final determination of such bonus compensation.  The Executive must be employed by the Company on the date any incentive compensation is paid in order to receive any such incentive compensation to which he is otherwise entitled. 2.3 Long-Term Incentive Compensation.  In addition to Base Salary and Bonus payable as hereinabove provided, the Executive shall be entitled to participate during the term of this Agreement in all stock option, restricted stock, phantom stock, sale of business, and other long-term incentive plans, practices, policies and programs applicable to other key executives of the Company (including its successors or assigns) and its affiliates, in each case comparable to those in effect on the Effective Date or as subsequently amended.  Such plans, practices, policies and programs, in the aggregate, shall provide the Executive with compensation, benefits and reward opportunities at least as favorable as the most favorable of such compensation, benefits and reward opportunities provided by the Company for the Executive under such plans, practices, policies and programs as in effect at any time during the 180-day period immediately preceding the Effective Date or, if more favorable to the Executive, as provided at any time thereafter with respect to other key executives. 3. Expense Reimbursement and Other Benefits. 3.1 Reimbursable Expenses.  During the term of the Executive’s employment with the Company hereunder, upon the submission of proper substantiation by the Executive and in accordance with the Company’s expense reimbursement policy, the Company shall reimburse the Executive for all reasonable expenses actually and necessarily paid or incurred by the Executive in the course of and pursuant to the business of the Company.  Except as expressly provided otherwise herein, no reimbursement payable to the Executive pursuant to any provision of this Agreement or pursuant to any plan or arrangement of the Company shall be paid later than the last day of the calendar year following the calendar year in which the related expense was incurred, no such reimbursement during any calendar year shall affect the amounts eligible for reimbursement in any other calendar year and no such reimbursement shall be subject to liquidation or exchange for another benefit, except, in each case, to the extent that the right to reimbursement does not provide for a “deferral of compensation” within the meaning of Section 409A (“Section 409A”) of the Internal Revenue Code of 1986, as amended (the “Code”). 3.2 Other Benefits.  During the term of the Executive’s employment with the Company hereunder, the Executive shall be entitled to participate in all of the Company’s employee benefit programs for which similarly situated employees of the Company are generally eligible, subject to the general eligibility and participation provisions set forth in such programs.  The Executive shall be entitled to vacation time in accordance with the Company’s prevailing vacation policy for its executives; provided, however, that in no event may a vacation be taken at a time when to do so could adversely affect the Company’s business. 

 

 3 PHX 331633863v9 4. Termination. 4.1 Termination for Cause.  The Company shall at all times have the right, upon written notice to the Executive, to terminate this Agreement and the Executive’s employment hereunder for “Cause” (as hereinafter defined).  For purposes of this Agreement, the term “Cause” shall mean (a) the failure or refusal of the Executive to perform the duties or render the services reasonably assigned to him from time to time by the Board or the CEO (except during reasonable vacation periods or sick leave), (b) gross negligence or willful misconduct (with “willful” meaning an action taken (or omitted to be taken) by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interest of the Company) by the Executive in the performance of his duties as an employee of the Company, (c) the conviction of the Executive of a felony or the conviction of the Executive of a misdemeanor which is likely to have a material adverse effect upon the business or reputation of the Executive or the Company or which substantially impairs the Executive’s ability to perform his duties for the Company, (d) the association, directly or indirectly, of the Executive, for his profit or financial benefit, with any person, firm, partnership, association, entity or corporation that competes, in any material way, with the Company or its Affiliates (as hereinafter defined), (e) the disclosing or using of any material “Confidential Information” or “Trade Secrets” (as those terms are hereinafter defined) of the Company at any time by the Executive, except as required in connection with his duties to the Company, (f) any material act or acts of personal dishonesty, or any fraud or embezzlement by the Executive, (g) chronic absenteeism, (h) substance abuse, or (i) any other breach by the Executive of any of the material terms or provisions of this Agreement; provided, however, that with respect (a) and (i) above, the Company shall first be required to provide the Executive written notice of any such event which the Company contends constitutes “Cause” with respect to (a) and (i) above within ninety (90) days of the first occurrence of such alleged event and/or breach, and thereafter provide the Executive a reasonable opportunity (not to exceed thirty (30) days) to cure such event and/or breach and provided further that the Executive’s employment shall be terminated no later than the date that is ninety (90) days following the end of the cure period described above.  In addition, in no event shall “Cause” include the Company’s failure to achieve certain financial results, whether set forth in the Company’s budget, specified by the Board, reflected in any of the Company’s incentive plans or programs, projected by financial analysts, or otherwise.  Upon any termination pursuant to this Section 4.1, the Executive shall be entitled to be paid his unpaid Base Salary accrued through the effective date of termination within ten (10) days after such termination (or on such earlier date as may be required by applicable law) and the Company shall have no further liability hereunder (other than for reimbursement for reasonable business expenses incurred prior to the date of termination, subject, however, to the provisions of Section 3.1, and any rights the Executive and/or the Executive’s family may have under the terms of the benefit plans described in Section 3.2). 4.2 Disability.  The Company shall at all times have the right, upon written notice to the Executive, to terminate this Agreement and the Executive’s employment hereunder if the Executive shall, as the result of mental or physical incapacity, illness or disability, become unable to perform his duties hereunder for in excess of ninety (90) days in any twelve (12)-month period.  Upon any termination pursuant to this Section 4.2, the Company shall pay to the Executive any unpaid Base Salary accrued through the effective date of termination within ten (10) days after such termination (or on such earlier date as may be required by applicable law) and the Company shall have no further liability hereunder (other than for reimbursement for reasonable business expenses incurred prior to the date of termination, subject, however, to the provisions of Section 3.1, and any rights the Executive and/or the Executive’s family may have under the terms of the benefit plans described in Section 3.2). 4.3 Death.  In the event of the death of the Executive during the term of his employment hereunder, the Company shall pay to the estate of the deceased Executive any unpaid Base Salary accrued through the date of his death within ten (10) days after his death (or on such earlier date as 

 

 4 PHX 331633863v9 may be required by applicable law) and the Company shall have no further liability hereunder (other than for reimbursement for reasonable business expenses incurred prior to the date of the Executive’s death, subject, however, to the provisions of Section 3.1, and any rights the Executive and/or the Executive’s family may have under the terms of the benefit plans described in Section 3.2). 4.4 Termination Without Cause.  At any time the Company shall have the right to terminate this Agreement and the Executive’s employment hereunder without Cause by written notice to the Executive; provided, however, that the Company shall (a) pay to the Executive any unpaid Base Salary accrued through the effective date of termination specified in such notice within ten (10) days after such termination (or on such earlier date as may be required by applicable law), and (b) subject to (1) the execution by the Executive of a general release of claims containing standard terms in the form generally used by the Company (the “Release”) and (2) the Executive’s continued compliance with the Protective Covenants (as hereinafter defined) set forth in Section 5 of this Agreement, pay to the Executive, (i) in monthly installments consistent with the Company’s normal payroll schedule during the eighteen (18)- month period following termination (the end of such period, the “Severance Date”), an amount equal to eighteen (18) months of the Executive’s Base Salary at the time of termination, and (ii) a single-sum amount equal to the premiums that the Executive would have to pay (based upon the COBRA premiums being charged under the Company’s health plan as of the termination date) if the Executive had elected to continue the health insurance coverage that the Executive was receiving under the Company’s group health plan immediately prior to the date of termination for a period of eighteen (18) months after the date of termination.  The Company also shall reimburse the Executive’s reasonable business expenses incurred prior to the date of termination, subject, however, to the provisions of Section 3.1.  Payments under subparagraph (b) above shall be treated as a series of separate payments under Treasury Regulation Section 1.409A-2(b)(2)(iii), are subject to required tax and other withholdings, and shall be conditioned upon (1) the Executive’s execution of the Release within 21 days of the Company’s delivery to the Executive of same, and (2) the Executive’s continued compliance with the Protective Covenants set forth in Section 5 of this Agreement.  Any payments due to the Executive under subparagraph (b) above shall be forfeited if the Executive fails to execute the Release within 21 days of the Company’s delivery to the Executive of same or if the Executive breaches the Protective Covenants set forth in Section 5 of this Agreement.  The Company shall deliver to the Executive the Release within three (3) business days of the termination of the Executive’s employment.  If the foregoing conditions are met, then the following shall apply: (i) To the extent any payments due to the Executive under subparagraph (b) above are not “deferred compensation” for purposes of Section 409A, then such payments shall commence upon the first scheduled payment date immediately after the date the Release is executed and no longer subject to revocation (the “Release Effective Date”).  The first such cash payment shall include payment of all amounts that otherwise would have been due prior to the Release Effective Date under the terms of this Agreement had such payments commenced immediately upon the termination date, and any payments made thereafter shall continue as provided herein.  The delayed payments shall in any event expire at the time such payments would have expired had such payments commenced immediately following the termination date. (ii) To the extent any payments due to the Executive under subparagraph (b) above are “deferred compensation” for purposes of Section 409A, then such payments shall commence upon the thirtieth (30th) day following the termination date.  The first such cash payment shall include payment of all amounts that otherwise would have been due prior thereto under the terms of this Agreement had such payments commenced immediately upon the termination date, and any payments made thereafter shall continue as provided herein.  The delayed payments shall in any event expire at the time such payments would have expired had such payments commenced immediately following the termination date. 

 

 5 PHX 331633863v9 (iii) To the extent the Executive breaches any of the Protective Covenants set forth in Section 5 of this Agreement, then in addition to all other remedies available to the Company, the Company shall be entitled to stop making any payments under subparagraph (b) above and the Executive shall forfeit his right to any such unpaid payments. (iv) Notwithstanding the due date of any post-employment payments or benefits, any payments or benefits otherwise due under this Agreement shall not be due until after the expiration of any revocation period applicable to the Release; provided that, if the period for executing and returning the Release begins in one taxable year and ends in another taxable year, payments shall not commence until the second taxable year; and, provided further that, the first installment payment shall include all amounts that would otherwise have been paid to the Executive during the period commencing on the Executive's termination of employment and ending on the first payment date if no delay had been imposed. 4.5 Termination by the Executive for Good Reason.  This Agreement and the Executive’s employment hereunder may be terminated at any time by the Executive for Good Reason (as hereinafter defined), upon written notice to the Company.  In such event, the Executive’s termination shall be treated as if the Executive’s employment had been terminated by the Company without Cause pursuant to Section 4.4.  For purposes of this Agreement, “Good Reason” shall mean: (a) the Company’s breach of any of the material terms and conditions required to be complied with by the Company pursuant to this Agreement, other than an isolated, insubstantial and inadvertent breach not occurring in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Executive; (b) a material diminution in the Executive’s title, authority, duties or responsibilities by the Board or the CEO to a level below the Executive’s authority, duties or responsibilities in effect immediately prior to such change, excluding for this purpose an isolated, insubstantial or inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by the Executive; or (c) a relocation by the Company of the Executive’s principal work site to a facility or location more than one hundred (100) miles from the place of performance specified in Section 1.3 of this Agreement; provided, however, that with respect to (a), (b) and (c) above, the Executive shall first be required to provide the Company written notice of any such event which the Executive contends constitutes a Constructive Termination within ninety (90) days of the first occurrence of such alleged event and/or breach, and thereafter provide the Company a reasonable opportunity (not to exceed thirty (30) days) to cure such event and/or breach and provided further that the Executive’s employment shall terminate no later than the date that is ninety (90) days following the end of the cure period described above.   4.6 Specified Employee.  Notwithstanding any provision of this Agreement to the contrary, if the Executive is a “specified employee” as defined in Section 409A, solely to the extent required to avoid the imposition of additional taxes on the Executive under Section 409A, the Executive shall not be entitled to any payments or benefits the right to which provides for a “deferral of compensation” within the meaning of Section 409A, and whose payment or provision is triggered by the Executive’s termination of employment (whether such payments or benefits are provided to the Executive under this Agreement or under any other plan, program or arrangement of the Company), until (and any portion or installments of any payments or benefits suspended hereby shall be paid in a lump sum on) the earlier of (a) the date which is the first business day following the six (6)-month anniversary of the Executive’s “separation from service” (within the meaning of Section 409A) for any reason other than death, or (b) the Executive’s date of death, and such payments or benefits that, if not for the six (6) month delay described herein, would be due and payable prior to such date shall be made or provided to the Executive on such date.  The Company shall make the determination as to whether the Executive is a “specified employee” in good faith in accordance with its general procedures adopted in accordance with 

 

 6 PHX 331633863v9 Section 409A and, at the time of the Executive’s “separation of service” will notify the Executive whether or not he is a “specified employee.” 4.7 Change in Control.  If the Executive’s employment is terminated either by the Company without Cause or by the Executive for Good Reason during the two (2) year period immediately following the Change in Control (as defined in the Company’s 2010 Incentive Compensation Plan, as may be amended from time to time) of the Company, then in lieu of any amounts otherwise payable under Sections 4.4 and 4.5 hereof, the Company shall (a) pay to the Executive any unpaid Base Salary accrued through the effective date of termination specified in such notice within ten (10) days after such termination (or on such earlier date as may be required by applicable law), and (b) subject to (1) the execution by the Executive of a Release and (2) the Executive’s continued compliance with the Protective Covenants (as hereinafter defined) set forth in Section 5 of this Agreement, pay to the Executive, (i) in monthly installments consistent with the Company’s normal payroll schedule during the twenty four (24)- month period following termination (the end of such period, the “CIC Severance Date”), an amount equal to twenty four (24) months of the Executive’s Base Salary at the time of termination, (ii) a single sum amount equal to two (2) times the Executive’s Bonus, payable at “target”, for the year in which the termination of employment occurs, and (iii) a single-sum amount equal to the premiums that the Executive would have to pay (based upon the COBRA premiums being charged under the Company’s health plan as of the termination date) if the Executive had elected to continue the health insurance coverage that the Executive was receiving under the Company’s group health plan immediately prior to the date of termination for a period of twenty four (24) months after the date of termination.  The Company also shall reimburse the Executive’s reasonable business expenses incurred prior to the date of termination, subject, however, to the provisions of Section 3.1.  Payments under subparagraph (b) above shall be treated as a series of separate payments under Treasury Regulation Section 1.409A-2(b)(2)(iii), are subject to required tax and other withholdings, and shall be conditioned upon (1) the Executive’s execution of the Release within 21 days of the Company’s delivery to the Executive of same, and (2) the Executive’s continued compliance with the Protective Covenants set forth in Section 5 of this Agreement.  Any payments due to the Executive under subparagraph (b) above shall be forfeited if the Executive fails to execute the Release within 21 days of the Company’s delivery to the Executive of same or if the Executive breaches the Protective Covenants set forth in Section 5 of this Agreement.  The Company shall deliver to the Executive the Release within three (3) business days of the termination of the Executive’s employment.  If the foregoing conditions are met, then Sections 4.4(w) through (z) shall also apply to this Section 4.7. 4.8 Section 280G of the Code. (a) Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution by the Company to or for the  benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (a “Payment”), would be nondeductible by the Company for Federal income tax purposes because of Section 280G of the Code, then the aggregate present value of amounts payable or distributable to or for the benefit of the Executive pursuant to this Agreement (such payments or  distributions pursuant to this Agreement are hereinafter referred to as “Agreement Payments”) shall be reduced to the Reduced Amount (as defined herein), but only if and to the extent that the after-tax value of reduced Agreement Payments would exceed the after-tax value of the Agreement Payments received by the Executive without application of such reduction.  The “Reduced Amount” shall be an amount expressed in present value which maximizes the aggregate present value of Agreement Payments without causing any Payment to be nondeductible by the Company because of Section 280G of the Code.  Anything to the contrary notwithstanding, if the Reduced Amount is zero and it is determined further that any Payment which is not an Agreement Payment would nevertheless be nondeductible by the Company for Federal income tax purposes because of Section 280G of the Code, then the aggregate present value of 

 

 7 PHX 331633863v9 Payments which are not Agreement Payments shall also be reduced (but not below zero) to an amount expressed in present value which maximizes the aggregate present value of Payments without causing any Payment to be nondeductible by the Company because of Section 280G of the Code.  For purposes of Section 4.8, present value shall be determined in accordance with Section 280G(d)(4) of the Code.  If and to the extent necessary to avoid a violation of Section 409A, no amounts payable under any “nonqualified deferred compensation plan” subject to Section 409A shall be reduced until after all other Payments have been reduced. (b) All determinations required to be made under this Section 4.8 shall be made by a nationally or regionally recognized firm of independent public accountants selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Executive within twenty (20) business days of the date of termination or such earlier time as is requested by the Company and an opinion to the Executive that he has substantial authority not to report any excise tax on his Federal income tax return with respect to any Payments.  Any such determination by the Accounting Firm shall be binding upon the Company and the Executive.  The Executive shall determine which and how much of the Payments shall be eliminated or reduced consistent with the requirements of this Section 4.8, provided that, if the Executive does not make such determination within ten business days of the receipt of the calculations made by the Accounting Firm, the Company shall elect which and how much of the Payments shall be eliminated or reduced consistent with the requirements of this Section 4.8 and shall notify the Executive promptly of such election.  Within five business days thereafter, the Company shall pay to or distribute to or for the benefit of the Executive such amounts as are then due to the Executive under this Agreement.  All fees and expenses of the Accounting Firm incurred in connection with the determinations contemplated by this Section 4.8 shall be borne by the Company. (c) As a result of the uncertainty in the application of Section 280G of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Payments will have been made by the Company which should not have been made (“Overpayment”) or that additional Payments which will not have been made by the Company could have been made (“Underpayment”), in each case, consistent with the calculations required to be made hereunder.  In the event that the Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against the Executive which the Accounting Firm believes has a high probability of success, determines that an Overpayment has been made, any such Overpayment paid or distributed by the Company to or for the benefit of the Executive shall be treated for all purposes as a loan ab initio to the Executive which the Executive shall repay to the Company together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code; provided, however, that no such loan shall be deemed to have been made and no amount shall be payable by the Executive to the Company if and to the extent such deemed loan and payment would not either reduce the amount on which the Executive is subject to tax under Section 1 and Section 4999 of the Code or generate a refund of such taxes.  In the event that the Accounting Firm, based upon controlling precedent or other substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code. 5. Restrictive Covenants. 5.1 Non-Competition.  While employed by the Company and for a period of two (2) years following the later of the date the Executive’s employment is terminated hereunder or, if applicable, the Severance Date (the “Restricted Period”), the Executive shall not (a) directly or indirectly through another Person acquire or own in any manner any interest in any firm, partnership, corporation, association or other Person that engages or plans to engage in the Business (as hereinafter defined) 

 

 8 PHX 331633863v9 anywhere in North America (the “Territory”), (b) be employed by or serve as an employee, officer, director, manager or agent of, or as a consultant or independent contractor to, any firm, partnership, corporation, association or other Person which engages or plans to engage in any facet of the Business, or that competes or plans to compete in any way with the Company or any of its Affiliates within the Territory, or (c) utilize his special knowledge of the Company’s Confidential Information and/or his relationships with the customers and suppliers of the Company and its Affiliates to compete with the Company or any of its Affiliates within the Territory; provided, however, that nothing herein shall be deemed to prevent the Executive from acquiring through market purchases and owning, solely as an investment, less than one percent (1%) in the aggregate of the equity securities of any class of any issuer whose shares are registered under Section 12(b) or Section 12(g) of the Securities Exchange Act of 1934, as amended, and are listed or admitted for trading on any United States national securities exchange or are quoted on any system of automated dissemination of quotations of securities prices in common use, so long as the Executive is not a member of any “control group” (within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission) of any such issuer.  The Executive acknowledges and agrees that the covenants set forth in this Section 5.1 are reasonable and necessary in terms of time, area and line of business to protect the Company’s legitimate business interests, which include its interests in protecting the Company’s (i) valuable confidential business information, (ii) substantial relationships with customers and suppliers throughout the Territory and (iii) goodwill associated with the ongoing business of the Company.  The Executive expressly authorizes the enforcement of the covenants provided for in this Section 5.1 by (A) the Company and its Affiliates, (B) the Company’s permitted assigns and (C) any successors to the Company’s business.  The Executive agrees and acknowledges that the Company is engaged in the Business throughout the Territory and the Executive provides services to the Company throughout the Territory. 5.2 Non-Solicitation.  During the Restricted Period, the Executive shall not, directly or indirectly, for himself or for any other Person, (a) attempt to employ or enter into any contractual arrangement with any employee or former employee of the Company or its Affiliates, unless such employee or former employee has not been employed by the Company or its Affiliates for a period in excess of nine (9) months, (b) call on or solicit any of the actual or targeted customers, prospective customers, or suppliers of the Company or its Affiliates with respect to any facet of the Business, (c) induce or attempt to induce any employee or agent of the Company to leave the employ or otherwise cease to perform services for the Company or its Affiliates, or in any way interfere with the relationship between the Company (or any of its Affiliates) and any such employee or agent, and/or (d) disparage or induce others to disparage the Company, any of its Affiliates, or any of their respective employees, products, or services. 5.3 Non-Disclosure.  The Executive shall not divulge, communicate, use to the detriment of the Company or for the benefit of any other Person or Persons, or misuse in any way, any Confidential Information or Trade Secrets (collectively “Company Information”) pertaining to the Company or any of its Affiliates.  Any Company Information now known or hereafter acquired by the Executive with respect to the Company or any of its Affiliates shall be deemed a valuable, special and unique asset of the Company that is received by the Executive in confidence and as a fiduciary, and the Executive shall remain a fiduciary to the Company with respect to all of such information.  In addition, the Executive (a) will receive and hold all Company Information in trust and strict confidence, (b) will take reasonable steps to protect the Company Information from disclosure and will in no event take any action causing, or fail to take any action reasonably necessary to prevent, any Company Information to lose its character as Company Information, and (c) except as required by law, will not, directly or indirectly, use, disseminate or otherwise disclose any Company Information to any third party without the prior written consent of the Company, which may be withheld in the Company’s absolute discretion. 

 

 9 PHX 331633863v9 5.4 Books and Records.  All books, records, reports, writings, notes, notebooks, computer programs, equipment, proposals, contracts, customer and referral source lists and other documents and/or things relating in any manner to the business of the Company (including, without limitation, any of the same embodying or relating to any Company Information), whether prepared by the Executive or otherwise coming into the Executive’s possession, shall be the exclusive property of the Company and shall not be copied, duplicated, replicated, transformed, modified or removed from the premises of the Company except pursuant to the business of the Company and shall be returned immediately to the Company upon the Company’s request at any time. 5.5 Inventions and Patents.  The Executive acknowledges that all inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports and all similar or related information (whether or not patentable) which relate to the actual or reasonably anticipated business, research and development or existing or future products or services of the Company and which are conceived, developed, or made by the Executive while employed by the Company (“Work Product”) belong to the Company.  The Executive shall promptly disclose such Work Product to the Company and, at the Company’s expense, perform all actions reasonably requested by the Company (whether during or after the Executive’s employment with the Company) to establish and confirm such ownership (including executing any assignments, consents, powers of attorney, and other instruments). 5.6 Definitions.  As used in this Agreement, the following capitalized terms have the following meanings: “Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with such Person.  The term “control” as used in the preceding sentence means, with respect to a corporation, the right to exercise, directly or indirectly, more than fifty percent (50%) of the voting rights attributable to the shares of the controlled corporation and, with respect to any Person other than a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person. “Business” means the provision of transportation and logistics services, including truckload logistics, customized and expedited less-than-truckload, transportation management solutions, intermodal solutions, freight consolidation, inventory management, on-demand expedited services, international freight forwarding, customs brokerage, and comprehensive global supply chain solutions. “Confidential Information” means confidential data and confidential information relating to the business of the Company which is or has been disclosed to the Executive or of which the Executive became aware as a consequence of or through his employment or other relationship with the Company and which has value to the Company and is not generally known to the competitors of the Company.  Confidential Information includes, without limitation, (a) internal business information (including information relating to strategic and staffing plans and practices, business, training, marketing, promotional and sales plans and practices, cost, rate and pricing structures and accounting and business methods); (b) identities of, individual requirements of, specific contractual arrangements with, and information about, the suppliers, distributors, customers, independent contractors or other business relations of the Company and its Affiliates; (c) trade secrets, know-how, compilations of data and analyses, techniques, systems, research, records, reports, manuals, documentation, data and data bases relating thereto; and (d) inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports and all similar or related information (whether or not patentable).  Notwithstanding the foregoing, Confidential Information shall not include any data or information that (i) has been voluntarily disclosed to the general public by the Company or its Affiliates, (ii) has been independently developed and disclosed to the general public by others, or (iii) otherwise becomes available to the general public other than through a breach of this Agreement by the Executive. 

 

 10 PHX 331633863v9 “Person” means any individual, partnership, joint venture, firm, corporation, association, limited liability company, trust or other enterprise or any governmental or political subdivision or any agency, department or instrumentality thereof. “Trade Secrets” means information of the Company including, without limitation, technical or nontechnical data, formulas, patterns, compilations, programs, financial data, financial plans, product or service plans or lists of actual or potential customers or suppliers which (a) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other Persons who can obtain economic value from its disclosure or use, and (b) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. 6. Injunction.  It is recognized and hereby acknowledged by the parties hereto that a breach or violation by the Executive or his Affiliates of Section 5 may cause irreparable harm and damage to the Company in a monetary amount that may be virtually impossible to ascertain.  As a result, the Executive recognizes and hereby acknowledges that the Company shall be entitled to seek an injunction from any court of competent jurisdiction enjoining and restraining any breach or violation of any or all of the covenants set forth in Section 5 by the Executive or his Affiliates, and that such right to injunction shall be cumulative and in addition to whatever other rights or remedies the Company may possess hereunder, at law or in equity.  Nothing contained in this Section 6 shall be construed to prevent the Company from seeking and recovering from the Executive or his Affiliates damages sustained by it as a result of any breach or violation by the Executive of any of the covenants or agreements contained herein. 7. Savings Provision.  If at the time of enforcement of any of the covenants contained in Section 5 above (the “Protective Covenants”), a court shall hold that the duration, scope or area restrictions stated therein are unreasonable under circumstances then existing, the parties agree that the maximum duration, scope or area reasonable under such circumstances shall be substituted for the stated duration, scope or area and that the court shall be allowed and directed to revise the restrictions contained herein to cover the maximum period, scope and area permitted by law.  The Executive has consulted with legal counsel regarding the Protective Covenants and based on such consultation has determined and hereby acknowledges that the Protective Covenants are reasonable in terms of duration, scope and area restrictions and are necessary to protect the legitimate, protectable interests of the Company and the goodwill of the business of the Company and its Affiliates. 8. Representations and Warranties.  The Executive hereby represents and warrants to the Company that (a) the execution, delivery and performance of this Agreement by the Executive does not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which the Executive is a party or by which he is bound; and (b) the execution and performance of this Agreement does not violate the provisions of any employment, non- competition, confidentiality or other material agreement to which the Executive is a party or by which he is bound. 9. Governing Law; Forum.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to conflicts of laws principles thereof and all questions concerning the validity and construction hereof shall be determined in accordance with the laws of said state.  Any dispute arising out of or related to this Agreement or the Executive’s employment or termination of employment with the Company shall be litigated in the state or federal courts located in the State of Delaware.  The Company and the Executive each waives any objection to the personal jurisdiction of such courts, consent to be sued in such courts, and waive any defense of inconvenient or improper forum.  Notwithstanding foregoing, to the extent the Company seeks injunctive or equitable relief to prevent a breach or threatened breach of the Protective Covenants, or to otherwise protect its Trade Secrets or Confidential Information, the Company may file suit in any court or tribunal 

 

 11 PHX 331633863v9 having jurisdiction over the Executive and may pursue all remedies available to it in such court or tribunal. 10. Entire Agreement; Amendment.  This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and, upon its effectiveness, shall supersede all prior agreements, understandings and arrangements, both oral and written, between the Executive and the Company (or any of its Affiliates) with respect to such subject matter including, without limitation, the Original Employment Agreement.  This Agreement may not be modified or amended in any way unless by a written instrument signed by both the Company and the Executive. 11. Notices.  All notices, demands, and other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given (a) when personally delivered or sent by electronic mail or telecopy (with hard copy to follow); (b) one (1) day after being sent by reputable overnight express courier (charges prepaid); or (c) five (5) days following mailing by certified or registered mail, postage prepaid and return receipt requested.  Unless another address is specified in writing, notices, demands, and communications to the parties shall be sent to the addresses indicated below: Notices to the Executive: Curtis W. Stoelting 121 East 4th Street Hinsdale, IL 60521 E-mail:  curt.stoelting@gmail.com Notices to the Company: Roadrunner Transportation Systems, Inc. 4900 S. Pennsylvania Ave. Cudahy, WI 53110 Attn:  Scott D. Rued E-mail: srued@hciequity.com With a copy to:  Greenberg Traurig, LLP 2375 E. Camelback Road Suite 700 Phoenix, AZ 85016 Attn:  Bruce E. Macdonough E-mail: macdonoughb@gtlaw.com 12. Benefits; Binding Effect.  This Agreement shall be for the benefit of and binding upon the parties hereto and their respective heirs, personal representatives, legal representatives, successors and, where applicable, assigns, including, without limitation, any successor to the Company, whether by merger, consolidation, sale of stock, sale of assets or otherwise; provided, however, that the Executive shall not delegate his employment obligations hereunder, or any portion thereof, to any other Person.  The Company may assign its rights and obligations under this Agreement in its sole discretion. 13. Severability.  The invalidity of any one or more of the words, phrases, sentences, clauses or sections contained in this Agreement shall not affect the enforceability of the remaining portions of this 

 

 12 PHX 331633863v9 Agreement or any part thereof, all of which are inserted conditionally on their being valid in law, and, in the event that any one or more of the words, phrases, sentences, clauses or sections contained in this Agreement shall be declared invalid, this Agreement shall be construed as if such invalid word or words, phrase or phrases, sentence or sentences, clause or clauses, or section or sections had not been inserted.  If such invalidity is caused by length of time or size of area or both, the otherwise invalid provision will be considered to be reduced to a period or area which would cure such invalidity. 14. Waivers.  The waiver by either party hereto of a breach or violation of any term or provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation. 15. Damages.  Nothing contained herein shall be construed to prevent the Company or the Executive from seeking and recovering from the other damages sustained by either or both of them as a result of its or his breach of any term or provision of this Agreement.  In the event that either party hereto brings suit for the collection of any damages resulting from, or for the injunction of any action constituting, a breach of any of the terms or provisions of this Agreement, then the party found to be at fault shall pay all reasonable court costs and attorneys’ fees of the other. 16. Section Headings.  The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 17. No Third Party Beneficiary.  Nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give any Person other than the parties hereto and their respective heirs, personal representatives, legal representatives, successors and assigns, any rights or remedies under or by reason of this Agreement. 18. Survival.  Those provisions set forth herein which contemplate obligations on a party’s part after termination of this Agreement or the Executive’s employment with the Company shall survive and continue in full force in accordance with their terms notwithstanding the termination of this Agreement or the Executive’s employment with the Company. 19. No Strict Construction.  The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any party. 20. Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The parties agree that this Agreement shall be legally binding upon the electronic transmission, including by electronic mail or facsimile of .pdf files, by each party of a signed signature page to this Agreement to the other party. 21. Code Section 409A.  This Agreement is intended to satisfy the requirements of Section 409A with respect to amounts subject thereto, and shall be interpreted and construed consistent with such intent; provided that, notwithstanding the other provisions of this subsection and the paragraph above entitled “Specified Employee,” with respect to any right to a payment or benefit hereunder (or portion thereof) that does not otherwise provide for a “deferral of compensation” within the meaning of Section 409A, it is the intent of the parties that such payment or benefit will not so provide.  Furthermore, if either party notifies the other in writing that, based on the advice of legal counsel, one or more of the provisions of this Agreement contravenes any regulations or Treasury guidance promulgated under Section 409A or causes any amounts to be subject to interest or penalties under Section 409A, the parties shall promptly and reasonably consult with each other (and with their legal counsel), and shall use their 

 

 13 PHX 331633863v9 reasonable best efforts, to reform the provisions hereof to (a) maintain to the maximum extent practicable the original intent of the applicable provisions without violating the provisions of Section 409A or increasing the costs to the Company of providing the applicable benefit or payment, and (b) to the extent practicable, to avoid the imposition of any tax, interest, or other penalties under Section 409A upon the Executive or the Company.  Any payments described herein that are payable upon a termination of employment will only be paid if such termination constitutes a “separation for service” within the meaning of Section 409A. [SIGNATURE PAGE FOLLOWS] 

 

Xiv VtT~Trt~ss WxC~t~or, the patties hereto leave e~ect~ted this Ageee~nent as of fihe date ~~•stwt•it~en above. '~'HC CbMPANY: ROADR'{J1VNEit T~IVSPORTA.TIQIV S'YSTEMSa INC. ~y: Naaaz~: Scott .Rued Title; Ctxaitma~i oftlle Bo~•d T~~ Ex~cuxzvx: Curtis . Stoelting SYGIV,A'T~1R~ PAG~G TO EMPLOYMENT AGREEMENT

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