Document:

exv10w19

 

Exhibit 10.19

HORNE INTERNATIONAL, INC.

REVOLVING LINE OF CREDIT TERM SHEET

April 10, 2008

	 	 	 
	 
	 	 
	Borrower:

	 	Horne International, Inc., a Delaware corporation (“Borrower”)
	 
	 	 
	Lender:

	 	Evan Auld-Susott as agent for the Susott FLP and Trevor Foster  (“Lender”)
	 
	 	 
	Loan Amount:

	 	$1,000,000.00 (“Loan”)
	 
	 	 
	Facility Type:

	 	Revolving Line of Credit
	 
	 	 
	Conditions to
Drawdown:

	 	(1) available only upon Borrower's certification to Lender that Borrower has fully exhausted
all funds available to Borrower pursuant to a $500,000.00 Working Capital Loan (“Working Capital Loan”)
from Darryl K. Horne of even date herewith; (2) Borrower’s certification to Lender that, from the Closing Date and during
the Term of the Loan until sold, the Real Property (as defined below) shall be listed and shall, until sold, remain listed for
sale with a realtor acceptable to Lender at a listing price agreed upon by Borrower and Lender, with all offers of purchase to
be brought to Lender’s attention by Borrower promptly upon Borrower’s receipt of same.
	 
	 	 
	Interest Rate:

	 	Interest shall accrue on the unpaid principal balance of the Loan until paid in full at the
rate of twelve and a half percent (12.5%) per annum (“Interest Rate”); provided, however, if any installment of interest
or payment of principal and interest accrued and due at maturity
remains unpaid on the 15th day after the due date of such payment, such late payment may be subject to a late
charge of five percent (5%) of such late payment.  Upon the occurrence and during the continuance of an Event of Default
under any of the Loan Documents and until such Event of Default is cured, interest on the Loan will accrue at the
rate of three percent (3%) per annum above the Interest Rate.
	 
	 	 
	Term:

	 	The Loan shall mature and be payable in full at the earlier of (a) twelve (12) months from the
Closing Date or (b) the sale of the Real Property (as defined below) (“Maturity Date”); provided, however, the Borrower may
request one (1) six (6) month extension of the Maturity Date (“Extension Option”), which the Lender shall grant provided that
(i) the Borrower sends the Lender a written notice of its intention to exercise the Extension Option (“the Extension Option Notice”)
at least thirty (30) days prior to the Maturity Date, (ii) no default has occurred under the Loan and is continuing, (iii) the Borrower
pays the Lender a Loan Extension Fee equal to the greater of (a) $2,500.00 or (b) one-half percent (1/2%) of the principal balance
of the Loan concurrently with delivery of the Extension Option Notice.

 

 

	 	 	 
	 
	 	 
	 
	 	 
	Payments:

	 	Interest only payable quarterly on the first day of each calendar quarter until the Maturity
Date, as may be extended under the Extension Option, at which time the entire principal balance of the Loan and all accrued and
unpaid interest, late fees, and default interest, together with any costs and fees due under the promissory note, shall be
due and payable in full.  
	 
	 	 
	Prepayment:

	 	The Loan may be prepaid in full or in part, without premium or penalty, at any time.
	 
	 	 
	Collateral:

	 	First Deed of Trust on the Borrower's fee simple interest in certain commercial real property situated
at 91 Hill Avenue, Fort Walton Beach, Florida, 32548, (“Real Property”), which First Deed of Trust shall be senior
in priority and superior to a Second Deed of Trust in favor of Darryl K. Horne to secure Borrower’s
obligations under  the Working Capital Loan.
	 
	 	 
	Default:

	 	In the event that Borrower shall fail to perform its obligations to pay
interest quarterly or to pay the Loan in full at the Maturity Date, as may be extended by the Extension Option, Lender may
exercise its collection remedies as provided in the Revolving Line of Credit Note and the Deed of Trust.
	 
	 	 
	Loan Documents:

	 	The Borrower shall execute and deliver a Revolving Line of Credit Note, a Deed of Trust,
and such other agreements, certificates and other instruments required by the Lender and its counsel in connection with the
Loan (“Loan Documents”).  The Loan Documents shall contain such reasonable terms and provisions as are customarily
required by lenders in connection with  loans secured by real property.
	 
	 	 
	Costs and
Expenses:

	 	The Borrower shall pay all reasonable out of pocket costs and expenses (including legal fees) actually
incurred by  the Lender in connection with the preparation, negotiation, and review of Loan Documents, including  premiums related
to a title insurance policy insuring the Lender’s first lien interest in the Real Property.
	 
	 	 
	Closing:

	 	Closing of the Loan shall be held at a location agreed to by the Borrower and the Lender
on or before April 13, 2008, unless the parties shall agree otherwise.

(Remainder of Page Intentionally Left Blank)

 

 

     
THE FOREGOING TERMS AND CONDITIONS ARE HEREBY ACCEPTED AND AGREED TO THIS 10th DAY OF APRIL, 2008.

	 	 	 
	 
	 	 
	 
	 	 
	 

	 	BORROWER:
 

                                 HORNE INTERNATIONAL, INC.
 

                                 By: /s/ Michael M. Megless
                                                     Name: Michael M.
Megless

                                 Title:   Chief Financial Officer
 
 

                                 LENDER:
 

                                 /s/ Evan Auld-Susott

                                      EVAN AULD-SUSOTT
 

                                 /s/ Trevor Foster

                                      TREVOR FOSTERexv10w2

 

Exhibit
10.2

SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     THIS SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is effective as of
the 31st day of December, 2007, between UTi Services, Inc., a California corporation (the
“Company”), and Roger I. MacFarlane (“Executive”). This Agreement amends and restates in all
respects the Amended and Restated Employment Agreement dated as of March 19, 2007 between the
Company and Executive (the “Prior Agreement”).

     In consideration of the promises and covenants set forth below, the parties hereto agree as
follows:

     1. Employment.

     The Company hereby agrees to employ Executive, and Executive hereby agrees to accept such
employment with the Company, on the terms and conditions set forth herein. As provided for herein,
Executive agrees to also perform services for UTi Worldwide Inc. (“UTi Worldwide”) and the related
group of entities and companies (UTi Worldwide, the Company and such related group of entities and
companies are collectively referred to herein as the “UTi Group”) without receiving separate
consideration for such services.

     2. Term.

     The initial term of employment of Executive as provided in this Agreement commenced
on the date of the Prior Agreement and ends on January 31, 2010, unless sooner terminated as
hereinafter provided.

     3. Position and Duties.

     Executive shall serve as Chief Executive Officer and a Director of UTi Worldwide, as well as a
member of the Management Board of UTi, and in such other position or positions as may be reasonably
requested by the Company or UTi Worldwide. Executive also agrees to serve as President of the
Company. Executive shall perform his duties and obligations faithfully and diligently and shall
devote all his business time, attention and efforts exclusively to the business of the Company, UTi
Worldwide and the UTi Group. Executive shall industriously perform his duties under the
supervision of and report to the Boards of Directors of the Company and UTi Worldwide and shall
accept and comply with all lawful directions from, and all policies applicable to Executive which
are established from time to time by, such Boards of Directors. Executive shall adhere to the
policies and procedures generally applicable to employees of the Company and the UTi Group.

 

 

     4. Place of Performance.

     In connection with Executive’s employment by the Company and except for required travel on UTi
Group business, Executive shall be based at the Company’s executive offices, or such other location
agreed to by Executive and the Company.

     5. Compensation and Related Matters.

     (a) Salary. During the term of Executive’s employment hereunder, the Company shall
pay to Executive a salary of $525,000 per annum, subject to increase (but not decrease) in the sole
discretion of the Board of Directors of the Company. Such salary shall be paid in equal
semi-monthly installments (or such shorter intervals as the Company may elect) and shall accrue
from day to day.

     (b) Performance Bonus; Equity Based Compensation. During the term of Executive’s
employment hereunder, Executive shall be eligible to participate in any bonus or equity based
incentive plans or programs made available to Executive in accordance with the terms of such plans
or programs and as determined by the UTi Group.

     (c) Vacations. During the term of Executive’s employment hereunder, Executive shall
be entitled to no less than four (4) weeks of vacation in each fiscal year as established by
Company policy, and to compensation with respect to earned but unused vacation days determined in
accordance with the Company’s vacation policy.

     (d) Expenses. During the term of Executive’s employment hereunder, Executive shall be
entitled to receive reimbursement for reasonable out-of-pocket travel and other expenses (excluding
ordinary commuting expenses) incurred by Executive in performing Executive’s services hereunder,
provided that:

          (i) Such expenditure qualifies as a proper business expenditure; and

          (ii) Executive furnishes adequate documentary evidence for the substantiation of such
expenditures and Executive complies with applicable policies with respect to expense reimbursement.

          (iii) Reimbursement will be made as soon as administratively practicable and in no event later
than the last day of the calendar year following the calendar year in which the expenses were
incurred; and

          (iv) The amount of expenses eligible for reimbursement in one calendar year will not affect
the expenses eligible for reimbursement in any other calendar year.

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     (e) Medical Insurance and Other Benefits. During the term of Executive’s employment
hereunder, Executive will be entitled to participate in applicable medical, dental and disability
insurance plans, life insurance plans, retirement plans and other employee welfare and benefit
plans or programs made available to the Company’s senior-level executives or its employees
generally, in accordance with the terms of such plans and programs as may be in effect from time to
time.

     6. Termination.

          (a) Termination for Cause.

     (1) The Company or UTi Worldwide may at any time terminate Executive’s employment hereunder
for “Cause” pursuant to the provisions of this Section 6(a). Executive shall be given notice by
the Board of Directors of either the Company or UTi Worldwide of its intention to terminate
Executive for Cause, and such Board shall give Executive an opportunity to address the Board
regarding the grounds on which the proposed termination for Cause is based.

     For purposes of this Agreement, the Company shall have “Cause” to terminate Executive’s
employment hereunder upon:

     (A) The breach by Executive of any material provision of this Agreement (and if such breach is
susceptible to cure by Executive, the failure to effect such cure by Executive within thirty (30)
days after written notice of such breach is given to Executive); or

     (B) Executive’s willful failure to perform or the gross negligence in the performance of
Executive’s material duties hereunder (and if such willful failure or gross negligence is
susceptible to cure by Executive, the failure to effect such cure by Executive within thirty (30)
days after written notice of such willful failure or gross negligence is given to Executive); or

     (C) Executive’s engagement in an act of dishonesty involving or affecting the UTi Group or
falsification of UTi Group records; or

     (D) Executive’s indictment or conviction for a crime of theft, embezzlement, fraud,
misappropriation of funds or other alleged act of dishonesty by Executive, or other crime involving
moral turpitude; or

     (E) Executive’s engagement in any violation of law relating to Executive’s employment or
violation by Executive of Executive’s duty of loyalty to the UTi Group.

     (2) If Executive is terminated for Cause pursuant to this Section 6(a), the Company shall have
no further obligation or liability to Executive,

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except that Executive shall be entitled to receive, within thirty (30) days following
Executive’s termination of employment, (i) the portion of Executive’s salary which has been earned
up to the Date of Termination, (ii) compensation for any accrued and unused vacation up to the Date
of Termination, (iii) reimbursement for business expenses properly incurred up to the Date of
Termination, and (iv) such benefits or payments to which Executive may be entitled under the terms
and conditions of any benefit, equity, incentive or compensation plan, program, award applicable to
Executive and Executive’s termination or cessation of employment to the extent accrued for the
benefit of, or owing to, Executive as of the Date of Termination (collectively, the “Minimum
Payments”).

     (b) Death.

          (1) Executive’s employment hereunder shall terminate automatically upon Executive’s death.

          (2) If Executive’s employment is terminated because of Executive’s death pursuant to this
Section 6(b), the Company shall have no further obligation or liability to Executive, except that
Executive shall be entitled to receive, within thirty (30) days following Executive’s termination
of employment, (i) the Minimum Payments, and (ii) any life insurance proceeds Executive is
otherwise entitled to under any applicable life insurance then in effect.

     (c) Disability.

          (1) If Executive becomes disabled during Executive’s employment hereunder, Executive’s
employment hereunder shall terminate on the date of the determination of the disability by the
Board of Directors of the Company of such disability. As used herein, “disability” shall mean any
condition that qualifies as a disability under the Company’s long-term disability plan as in effect
on the date of determination or which renders Executive incapable of performing substantially all
of his managerial and executive services hereunder for one hundred twenty (120) days or more in the
aggregate during any consecutive twelve (12) months, and which at any time after such one hundred
twenty (120) days the Company’s Board of Directors shall determine continues to render Executive
incapable of performing his managerial and executive services hereunder.

          (2) If Executive’s employment is terminated because of Executive’s disability pursuant to this
Section 6(c), Executive shall be entitled to receive, within thirty (30) days following Executive’s
termination of employment, (i) the Minimum Payments, and (ii) any benefits to which Executive is
entitled under any applicable long-term disability plan as in effect on the Date of Termination.

     (d) Termination Other Than for Cause, Death or Disability.

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     (1) The Company or UTi Worldwide shall, for any reason, be entitled to terminate Executive’s
employment hereunder at any time without Cause and other than on account of Executive’s death or
disability pursuant to this Section 6(d).

     (2) If Executive’s employment is terminated pursuant to this Section 6(d), Executive shall be
entitled to receive (i) the Minimum Payments, and (ii) severance equal to twelve (12) months of
Executive’s then current salary as set forth in Section 5(a). Subject to Section 6(j) below, such
severance shall be payable in a lump sum within sixty (60) days after Executive’s termination of
employment. Executive shall not be entitled to a bonus for the year during which such termination
occurs. Executive shall be entitled to receive any bonus earned for the previous year, but which
is unpaid as of the Date of Termination. Executive agrees that it is a condition precedent to the
Company’s obligations to pay the severance payments provided for in subclause (ii) of the first
sentence of this Section 6(d)(2) that Executive execute a general release and waiver prepared by
the Company releasing and forever discharging the Company and the UTi Group and each and all of
their respective owners, stockholders, predecessors, successors, assigns, agents, directors,
officers and other representatives from any and all claims, charges, complaints, liabilities,
controversies, rights, demands, costs and expenses, and that such general release become
irrevocable within sixty (60) days of Executive’s termination of employment. Executive agrees that
Executive will not assign or transfer, or purport to assign or transfer, to any person any claim or
a portion thereof or any interest therein that Executive might have against the UTi Group.

(e) Resignation for Good Reason.

     (1) Executive shall be entitled to terminate Executive’s employment hereunder at any time for
Good Reason (as defined below) pursuant to the provisions of this Section 6(e). For purposes of
this Agreement, Executive shall have “Good Reason” to terminate Executive’s employment hereunder if
(i) without Executive’s consent, (a) the Company or UTi Worldwide substantially reduces Executive’s
duties and responsibilities such that it results in a material adverse reduction in Executive’s
duties, authority or responsibilities and/or (b) the Company materially breaches any of the
material terms of this Agreement; (ii) Executive gives written notice to the Company of the
existence of such reduction or breach within ten (10) business days of same, and the written notice
specifies the particular acts objected to by Executive; (iii) the Company and UTi Worldwide fail to
cure such reduction and/or material breach within thirty (30) days after receiving such written
notice from Executive; and (iv) within ten (10) business days following the conclusion of the
30-day period described in subclause (iii) of this paragraph, Executive delivers a Notice of
Termination to the Company which sets forth a Date of Termination, which date shall be one (1)
month after the date that the Notice of Termination is delivered by Executive to the Company.

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     (2) If this Agreement is terminated by Executive for Good Reason pursuant to this Section
6(e), Executive shall be entitled to receive (i) the Minimum Payments, and (ii) a severance equal
to twelve (12) months of Executive’s then current salary as set forth in Section 5(a). Subject to
Section 6(j) below, such severance shall be payable in a lump sum within sixty (60) days after
Executive’s termination of employment. Executive shall not be entitled to a bonus for the year
during which such termination occurs. Executive shall be entitled to receive any bonus earned for
the previous year, but which is unpaid as of the Date of Termination. Executive agrees that it is
a condition precedent to the Company’s obligations to pay the severance payments provided for in
subclause (ii) of the first sentence of this Section 6(e)(2) that Executive execute a general
release and waiver prepared by the Company releasing and forever discharging the Company and the
UTi Group and each and all of their respective owners, stockholders, predecessors, successors,
assigns, agents, directors, officers and other representatives from any and all claims, charges,
complaints, liabilities, controversies, rights, demands, costs and expenses, and that such general
release become irrevocable within sixty (60) days of Executive’s termination of employment.
Executive agrees that Executive will not assign or transfer, or purport to assign or transfer, to
any person any claim or a portion thereof or any interest therein that Executive might have against
the UTi Group.

(f) Termination of Employment Following a Change of Control.

     (1) Executive shall be entitled to terminate Executive’s employment hereunder pursuant to the
provisions of this Section 6(f) if (i) within one year following a “Change of Control of UTi
Worldwide” (as defined below), (a) Executive terminates his employment for Good Reason (as defined
above), or (b) the Company terminates Executive’s employment other than for Cause, death or
disability, or (ii) after the one (1) year anniversary of a Change of Control of UTi Worldwide,
Executive is still employed hereunder and Executive gives written notice to the Company of
Executive’s voluntary resignation within the thirty (30) day period commencing on the one (1) year
anniversary of the Change of Control of UTi Worldwide.

     (2) For purposes of this Agreement, a “Change of Control of UTi Worldwide” shall be deemed to
have occurred if:

          (A) A sale, transfer, or other disposition of all or substantially all of the assets and
properties of UTi Worldwide is closed or consummated;

          (B) Any “person,” “entity” or “group” (within the meaning of Section 13(d)(3) and 14(d)(2)) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), other than UTi Worldwide or
any majority owned subsidiary of UTi Worldwide, becomes the “beneficial owner” (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of securities of UTi Worldwide representing
fifty percent (50%) or more of the combined voting power of UTi

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Worldwide’s then outstanding securities that have the right to vote in the election of
directors generally; provided, however, that the following shall not constitute a “Change of
Control of UTi Worldwide” for purposes of this subclause (B):

          i. any acquisition directly from UTi Worldwide (excluding any acquisition resulting from the
exercise of a conversion or exchange privilege in respect of outstanding convertible or
exchangeable securities); or

          ii. any acquisition by an employee benefit plan (or related trust) sponsored or maintained by
UTi Worldwide or any entity controlled by UTi Worldwide;

     (C) During any period of two (2) consecutive years during the term of this Agreement,
individuals who at the beginning of such period constitute the Board of Directors of UTi Worldwide
cease for any reason to constitute at least a majority thereof, unless the election of each
director who was not a director at the beginning of such period has been approved in advance by
directors representing at least two-thirds of the directors then in office who were directors at
the beginning of the period; or

     (D) UTi Worldwide is dissolved or liquidated or a merger, reorganization, or consolidation
involving UTi Worldwide is closed or consummated, other than a merger, reorganization, or
consolidation in which holders of the combined voting power of UTi Worldwide’s then outstanding
securities that have the right to vote in the election of directors generally immediately prior to
such transaction own, either directly or indirectly, fifty percent (50%) or more of the combined
voting power of the securities entitled to vote in the election of directors generally of the
merged, reorganized or consolidated entity (or its parent company) immediately following such
transaction.

     (3) If Executive’s employment is terminated under the provisions contained in this Section
6(f), Executive shall be entitled to receive (i) the Minimum Payments and (ii) severance equal to
twenty-four (24) months of Executive’s then current salary as set forth in Section 5(a). Subject
to Section 6(j) below, such severance shall be payable in a lump sum within sixty (60) days after
Executive’s cessation of employment. Executive agrees that it is a condition precedent to the
Company’s obligations to pay the severance payments provided for in subclause (ii) of the first
sentence of this Section 6(f)(3) that Executive execute a general release and waiver prepared by
the Company releasing and forever discharging the Company and the UTi Group and each and all of
their respective owners, stockholders, predecessors, successors, assigns, agents, directors,
officers and other representatives from any and all claims, charges, complaints, liabilities,
controversies, rights, demands, costs and expenses, and that such general release become
irrevocable within sixty (60) days of Executive’s termination of employment. Executive agrees that
Executive will not assign

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or transfer, or purport to assign or transfer, to any person any claim or a portion thereof or
any interest therein that Executive might have against the UTi Group.

(g) Resignation without Good Reason.

     (1) Executive shall be entitled to terminate Executive’s employment hereunder without Good
Reason at any time on thirty (30) days prior written notice delivered by Executive to the Company.

     (2) Executive’s employment is terminated by Executive pursuant to this Section 6(g), the
Company shall have no further obligation or liability to Executive, except that Executive shall be
entitled to receive the Minimum Payments.

     (h) Notice of Termination. Any termination of Executive’s employment by the Company
or by Executive (other than termination pursuant to Section 6(c) above) shall be communicated by a
written Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice
of Termination” means a notice which (i) indicates the termination provision in this Agreement
relied upon, and (ii) if the termination date is other than the date of receipt of such notice,
specifies the termination date (which date shall not be more than thirty (30) days after the giving
of such notice).

     (i) Date of Termination. “Date of Termination” shall mean the date of death, the date
of the determination of a disability, the date of receipt of the Notice of Termination or the
termination date specified therein, as the case may be.

     (j) 409A Compliance. Executive is solely responsible and liable for the satisfaction
of any federal, state, province or local taxes that may arise with respect to this Agreement
(including any taxes arising under Section 409A of the Code, except to the extent otherwise
specifically provided in a written agreement with the Company). Neither the Company nor any of its
employees, officers, directors, or service providers shall have any obligation whatsoever to pay
such taxes, to prevent Executive from incurring them, or to mitigate or protect Executive from any
such tax liabilities. Notwithstanding anything in this Agreement to the contrary, if any amounts
that become due under this Agreement on account of Executive’s termination of employment constitute
“nonqualified deferred compensation” within the meaning of Code Section 409A, payment of such
amounts shall not commence until Executive incurs a “separation from service” within the meaning of
Treasury Regulation § 1.409A-1(h). If, at the time of Executive’s termination of employment under
this Agreement, Executive is a “specified employee” (under Internal Revenue Code Section 409A), any
payments that constitute “nonqualified deferred compensation” within the meaning of Code Section
409A that become payable to Executive on account of Executive’s “separation from service”
(including any amounts payable pursuant to the preceding sentence) will not be paid until after the
end of the sixth calendar month beginning after Executive’s separation from service (the “409A
Suspension Period”). Within 14 calendar days after the end of

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the 409A Suspension Period, Executive shall be paid a lump sum payment in cash equal to any
payments delayed because of the preceding sentence, together with interest on them for the period
of delay at a rate not less than the average prime interest rate published in the Wall Street
Journal on any day chosen by the Company during that period. Thereafter, Executive shall receive
any remaining benefits as if there had not been an earlier delay.

     7. Exclusivity of Payments. 

     Upon termination of Executive’s employment hereunder, Executive shall not be entitled to any
severance payments or severance benefits from the Company, UTi Worldwide or the UTi Group, other
than the payments and benefits provided in Section 6, except for any benefits which may be due to
Executive in the normal course under any employee benefit plan or program of the Company or UTi
Worldwide which provides for benefits after termination of employment in accordance with the terms
of such plan or program. Executive’s right to receive payments or benefits under this Agreement
upon termination of employment will cease if Executive breaches any provision of Sections 8 or 9
below.

     8. Proprietary Information.

     (a) Definition. Executive hereby acknowledges that Executive possesses and may make
use of, acquire, create, develop or add to certain confidential and/or proprietary information
regarding the UTi Group and their businesses and affiliates (whether in existence prior to, as of
or after the date hereof, collectively, “Proprietary Information”), which Proprietary Information
shall include, without limitation, all of the following materials and information (whether or not
reduced to writing and whether or not patentable or protected by copyright): trade secrets,
inventions, processes, formulae, programs, technical data, “know-how,” procedures, manuals,
confidential reports and communications, marketing methods, product sales or cost information, new
product ideas or improvements, customer tailored solutions and other consulting products and
processes, new packaging ideas or improvements, research and development programs, identities or
lists of suppliers, vendors or customers, financial information and financial projections or any
other confidential or proprietary information relating to the UTi Group and/or its business. The
term “Proprietary Information” shall also include, without limitation, any confidential or
non-public information of suppliers or customers of the UTi Group obtained by Executive in the
course of Executive’s employment or association with the Company or the UTi Group. The term
“Proprietary Information” does not include any information that (i) at the time of disclosure is
generally available to and known by the public (other than as a result of its disclosure by
Executive), (ii) becomes available to Executive on a lawful, non-confidential basis from a person
other than the UTi Group or its suppliers or customers or its or their representatives, provided
that the source of such information was not known by Executive to be subject to an obligation of
confidentiality to the UTi Group or otherwise

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disclosed such information to Executive with the reasonable expectation that it would remain
confidential.

     (b) Nondisclosure. During the term of this Agreement and thereafter, Executive will
not, without the prior express written consent of the Board of Directors of UTi Worldwide, disclose
or make any use of any Proprietary Information except as may be required in the course of the
performance of Executive’s services under this Agreement.

     (c) Agreement Not to Solicit Employees and Customers. To protect the Proprietary
Information and trade secrets of the UTi Group, Executive agrees, during the term of this Agreement
and for a period of two (2) years after termination of this Agreement, not to, directly or
indirectly, either on Executive’s own behalf or on behalf of any other person or entity, attempt to
persuade, induce or solicit or employ any person who is an employee of the UTi Group or otherwise
encourage such employee to cease or terminate his or her employment with UTi Group or use or
otherwise disclose any Proprietary Information in any attempt to persuade any customer of the UTi
Group to cease to do business or to reduce the amount of business which any customer of the UTi
Group has customarily done or contemplates doing with the UTi Group.

     (d) Reasonableness. Executive agrees that the covenants and agreements contained in
this Section 8 are reasonable and necessary to protect the Proprietary Information of the UTi Group
and that the covenants and agreements by Executive contained in this Section 8 shall be in addition
to any other agreements and covenants Executive may have agreed to in any other employee
proprietary information, confidentiality, non-disclosure or other similar agreement and that this
Section 8 shall not be deemed to limit such other covenants and agreements, all of which shall
continue to survive the termination of this Agreement in accordance with their respective terms. A
breach of the terms and covenants of such other covenants and agreements shall be deemed to be a
breach of the provisions of this Section 8 and this Agreement.

     9. Protection of Property.

     All records, files, manuals, documents, specifications, lists of customers, forms, materials,
supplies, computer programs and other materials furnished to the Executive by the UTi Group, used
on its behalf or generated or obtained during the course of the performance of the Executive’s
services hereunder, shall at all times remain the property of the Company. Upon termination of
Executive’s employment with the UTi Group, Executive shall immediately deliver to the UTi Group, or
its authorized representative, all such property, including all copies, remaining in Executive’s
possession or control.

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     10. Specific Performance.

     In the event of the breach by Executive of any of the provisions of Sections 8 or 9, the
Company and the UTi Group, in addition to all other rights and remedies they may have, may apply to
any court of law or equity of competent jurisdiction for specific performance and/or injunctive or
other relief to the extent authorized by law in order to enforce or prevent any violations of the
provisions thereof.

     11. Arbitration.

     The parties hereto acknowledge that it is in their best interests to facilitate the informal
resolution of any disputes arising out of this Agreement or otherwise by mutual cooperation and
without resorting to litigation. As a result, if either party has a legally recognized claim or
dispute arising hereunder or otherwise, including but not limited to any claim for breach of any
contract or covenant (express or implied), any dispute regarding Executive’s termination of
employment, tort claims, claims for harassment or discrimination (including, but not limited to,
race, sex, religion, national origin, age, handicap or disability), claims for compensation or
benefits (except where a benefit plan or pension plan or insurance policy specifies a different
claims procedure) and claims for violation of public policy or, any federal, state or other
governmental law, statute, regulation or ordinance (except for claims involving workers’
compensation benefits), and the parties are unable to reach agreement among themselves within
thirty (30) days, then the parties agree to submit the dispute to JAMS for binding arbitration in
accordance with its then-current employment rules and applicable law. If the parties are unable to
agree to an arbitrator, JAMS will provide the names of seven potential arbitrators, giving each
party the opportunity to strike three names. The remaining arbitrator will serve as the
arbitration panel. The parties agree that the arbitration must be initiated within the time period
of the statute of limitations applicable to the claim(s) if the claim(s) had been filed in Court.
Arbitration may be initiated by the aggrieved party by sending written notice of an intent to
arbitrate by registered certified mail to all parties and to JAMS. The notice must contain a
description of the dispute, the amount involved and the remedies sought. All fees and expenses of
the arbitrator will be borne by the Company. Each party will pay for the fees and expenses of its
own attorneys, experts, witnesses, and preparation and presentation of proofs and post-hearing
briefs, unless the party prevails on a claim for which attorneys’ fees are recoverable by statute,
in which case the arbitrator may award attorneys’ fees and costs to the prevailing party.

     12. Representation by Counsel.

     Executive acknowledges that Executive has been given the opportunity to consult legal counsel
and seek such advice and consultation as Executive deems appropriate or necessary.

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     13. Successors.

     This Agreement is personal to the Executive and is not assignable by the Executive. This
Agreement shall inure to the benefit of and be binding upon the Company and its successors and
assigns.

     14. Notice.

     For purposes of this Agreement, notices, demands and all other communications provided for in
the Agreement shall be in writing and shall be deemed to have been duly given when personally
delivered, or if sent by overnight, commercial air courier service, on the second business day
after being delivered to the air courier service, or if mailed, on the fifth day after being sent
by first class, certified or registered mail, return receipt requested, postage prepaid, addressed
as follows:

	 	 	 
	If to Executive:

	 	At Executive’s address as indicated on the

books and records of the Company.

	 	 	 
	If to Company:

	 	At the Company’s executive headquarters

(with a copy to UTi Worldwide Inc. at its

executive headquarters).

or to such other address as any party may have furnished to the other in writing in accordance
herewith, except that notices of change of address shall be effective only upon receipt thereof.

     15. Section 280G. To the extent that Section 280G and any related provisions of the
Internal Revenue Code of 1986, as amended, are applicable, Executive’s payments and benefits under
this Agreement and all other arrangements or programs shall not, in the aggregate, exceed the
maximum amount that may be paid to Executive without triggering golden parachute penalties under
Section 280G and related provisions of the Internal Revenue Code of 1986, as amended, as determined
in good faith by the Company’s independent auditors. If Executive’s benefits must be cut back to
avoid triggering such penalties, Executive’s benefits will be cut back in the priority order
Executive designates or, if Executive fails to promptly designate an order, in the priority order
designated by the Company. Executive and the Company agree to reasonably cooperate with each other
in connection with any administrative or judicial proceedings concerning the existence or amount of
golden parachute penalties on payments or benefits Executive receives.

     16. Resignation from Positions.

     Upon Executive’s cessation of employment with the Company or UTi Worldwide for any reason,
Executive agrees that Executive shall be deemed to have resigned as an officer and as a director
from every entity and company of the UTi Group

12

 

     on which Executive is then serving as an officer or director, and any other entity on which
Executive is then serving as a director or officer at the request of the Company or UTi Worldwide,
in each case effective as of the date of cessation of Executive’s employment. Executive hereby
grants the corporate secretary of UTi Worldwide an irrevocable power of attorney to execute on
behalf of Executive such resignations as necessary to carry out the intention of this paragraph.

     17. Entire Agreement.

     This Agreement, together with the documents referenced herein, contains the entire agreement
of the parties hereto with respect to the subject matter hereof. It supersedes any and all other
agreements, either oral or in writing, between the parties hereto with respect to the employment of
Employee by the Company, including, without limitation, the Prior Agreement. Each party to this
Agreement acknowledges that no representations, inducements, promises or agreements, written, oral
or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not
embodied herein, and that no other agreement, statement or promise not contained in this Agreement
shall be valid or binding.

     18. Amendment; Waiver; Governing Law.

     No provisions of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in a writing signed by Executive and by such officer of the
Company as may be specifically designated by the Company’s Board of Directors. No waiver by either
party hereto at any time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such other party shall be deemed a
waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent
time. The validity, interpretation, construction and performance of this Agreement shall be
governed by the laws of California or if Executive is not employed in California, the jurisdiction
where Executive is employed by the Company.

     19. Validity.

     The invalidity or unenforceability of any provision or provisions of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement, which shall remain
in full force and effect.

     20. Counterparts.

     This Agreement may be executed in one or more counterparts, each of which shall be deemed to
be an original, but all of which together will constitute one and the same instrument.

13

 

     21. Survivability.

     The provisions in Sections 8, 9, 10, 11 and 15 of this Agreement shall survive any termination
of this Agreement.

     22. Withholding of Taxes; Tax Reporting.

     The Company may withhold from any amounts payable under this Agreement all such taxes, and may
file with appropriate governmental authorities all such information, returns or other reports with
respect to the tax consequences of any amounts payable under this Agreement, as may, in its
reasonable judgment, be required by law.

[Signature Page Follows]

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

	 	 	 	 	 
	“Company”	
 UTi Services Inc.,

a California corporation

 	 
	 	By:  	/s/ Lance D'Amico
 	 
	 	 	Name:  	Lance D'Amico 	 
	 	 	Title:  	SUP, Enterprise Support Service 	 
	 

	 	       	             	 	 
	 	 	 
	“Executive” 	/s/ Roger I. MacFarlane
 	 
	 	Roger I. MacFarlane  	 
	 	 	 
	 

GUARANTEE

     In order to induce Executive to enter into the foregoing Second Amended and Restated
Employment Agreement, UTi Worldwide Inc. hereby unconditionally and irrevocably guarantees to
Executive and Executive’s estate and legal representatives that it will cause the Company named in
the Second Amended and Restated Employment Agreement to perform each and all of its obligations
under the Second Amended and Restated Employment Agreement in strict accordance with the terms
thereof. This guarantee of performance is a principal obligation of the undersigned and shall
continue in full force and effect notwithstanding any amendments or modifications to the Second
Amended and Restated Employment Agreement.

	 	 	 	 	 
	 	UTi Worldwide Inc.,

a BVI Company

 	 
	 	By:  	/s/ Lance D'Amico
 	 
	 	 	Name:  	Lance D'Amico 	 
	 	 	Title:  	SUP, Enterprise Support Service 	 
	 

15

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