Document:

ex10_2.htm

	
EXHIBIT 10.2

 

 

	
CAI International, Inc.

Steuart Tower

1 Market Plaza, Suite 900

San Francisco, CA  94105

Tel: 415-788-0100  Fax: 415-788-3430

www.capps.com

NYSE:  CAP

 

 

April 13, 2011

 

Timothy Page

5516 Aspen Street

Houston, TX 77081

Dear Timothy:

On behalf of CAI International, Inc., (“the Company”), I am pleased to offer you the position of Chief Financial Officer. The purpose of this letter is to set forth the terms of this offer.

 

	
  

	
1.

	
As the Company’s Chief Financial Officer, you shall be responsible for the relations of the Company with financial institutions, including lenders, lessors and owners of equipment managed by the Company and for the Company's financial reporting.  You shall report directly to the Chief Executive Officer of the Company, and shall also be responsible for any other duties which the Chief Executive Officer may specify; provided that such duties are consistent with your position as an executive officer of the Company. You shall perform and discharge well and faithfully your duties and shall devote your full business efforts and time to the Company.

 

	
  

	
2.

	
During your employment with the Company, the Company agrees to pay you as compensation for your services, effective May ____, 2011 (the "Effective Date"), an annual base salary ("Base Salary") of $350,000 payable on semi-monthly basis in accordance with the Company’s standard payroll procedures. Subject to approval by the Company’s Board of Directors, you may also be eligible for an annual bonus targeted to 40% of your Base Salary. Such actual amount will be determined based on your performance during the year and the Company’s financial performance.

	
  

	
3.

	
Notwithstanding the above, for the Company's 2011 calendar year, you will receive a minimum guaranteed bonus of 40% of your Base Salary prorated according to your time of service with the Company during 2011. The bonus shall be payable in the first quarter of 2012, at the time of payment of the other bonuses to the Company's officers.  The bonus is contingent on your status as an employee in good standing of the Company as of December 31, 2011.

 

	
  

	
4.

	
We will pay for the reasonable relocation expenses for your move from Texas to the San Francisco Bay Area, and such amount shall be mutually agreed between you and the Company. Relocation expenses will consist of travel expenses to the Bay Area for you and your family, cost of termination of your home lease in Texas, physical moving expenses contracted with moving company, cost of a relocation consultant, as well as reimbursement for up to three months of reasonable temporary housing expense while you find permanent housing in the San Francisco Bay Area and your travel to and from Texas during such 3-month period. We understand that you will endeavor to locate permanent housing as soon as practicable.

 

  

  

  

 

	
  

	
5.

	
We will recommend to the Board of Directors of the Company that, at the next Board meeting, you be granted an incentive stock option entitling you to purchase up to 30,000 shares of Common Stock of the Company at its then fair market value.  Such options shall be subject to the terms and conditions of the Company's Stock Option Agreement, including customary vesting requirements.

 

	
  

	
6.

	
During the term of your employment, you shall be eligible to participate in the employee benefit plans and executive compensation programs made available by the Company to its executive officers generally, including (without limitation) any of the following plans if and when adopted and made available by the Board of Directors: retirement plans, savings plans, deferred compensation plans, life, disability, health, accident and other insurance programs, paid vacations (based on 16 paid vacation days per year), and similar plans or programs subject in each case to the generally applicable terms and conditions of the plan in question and to the determination of any committee administering such plan or program. The Company is under no obligation to maintain any such plans, and such plans may be modified from time to time.

 

	
  

	
7.

	
In the event your employment is terminated by the Company without cause within 18 months from the Effective Date the Company shall pay you a lump sum amount equal to one hundred percent (100%) of your Base Salary for the nine (9) months immediately preceding the date of employment termination, and such payment to be made within thirty (30) days after the date on which your employment with the Company terminates. 

 

	
  

	
8.

	
If the Company undergoes a Change in Control within a period of two years following the Effective Date and you are terminated by the Company without cause following such Change in Control, the Company shall pay you a lump sum amount equal to one hundred percent (100%) of your Base Salary for the twelve (12) months immediately preceding the date of employment termination, and such payment to be made within thirty (30) days after the date on which your employment with the Company terminates. However, you will be entitled to no severance pursuant to this Section 8 if you continue to be employed by the Company, a successor to the Company or an affiliate of the Company, twenty-four (24) months after the closing of the Change in Control. 

 

	
  

	
9.

	
For purpose of Section 8 above, "Change in Control" shall mean any of the following transactions: (i) a merger or consolidation of the Company with or into any other company or other entity (other than for the sole purpose of changing the Company's state of incorporation); (ii) a sale in one transaction or a series of transactions undertaken with a common purpose of all or a controlling portion of the Company's outstanding voting securities or such amount of the Company's outstanding voting securities as would enable the purchaser to obtain the right to appoint a majority of the Company's Board of Directors; or (iii) a sale, lease, exchange or other transfer in one transaction or a series of related transactions undertaken with a common purpose of selling all or substantially all of the Company's assets; provided, however, a private sale of stock beneficially owned by Hiromitsu Ogawa, his spouse or his children shall not constitute a Change in Control unless (after giving effect thereto) a single party (or group of related parties) obtains control of the Company as a result of such transaction.

 

	
  

	
10.

	
On the Effective Date, the Company will pay you a signing bonus in the total amount $25,000, which shall be fully refundable to the Company in the event of your resignation or your termination for cause by the Company within 12 months from the Effective Date.

 

  

  

  

 

	
  

	
11.

	
The Company will provide you with a parking space near the Company's place of business in San Francisco.

 

	
  

	
12.

	
The Company will reimburse you for the premium due under your former employer’s group health plan in accordance with Section 4980B(f) of the Code ("COBRA") for which you, your spouse and dependent children (as applicable) are eligible during the period beginning on the Effective Date and ending on the date you, your spouse and dependent children (as applicable) become eligible to participate in the Company’s group health plan.

 

	
  

	
13.

	
The severance provisions under Sections 7, 8, 9, 10, 11 and 12 shall be valid for 24 months as from Effective Date.

 

	
  

	
14.

	
You will be required to abide by the Company’s Personnel Policies Manual dated March 1, 2006, as amended from time to time. You are specifically required as part of this offer letter to sign an acknowledgment that you have read and understand the Company’s Code of Business Conduct and Ethics.

 

	
  

	
15.

	
Further, by accepting this offer, you agree that you will not bring with you to the Company, or use in any way during your employment with the Company, any confidential information, trade secrets or proprietary materials or processes of any former employer, company or individual for whom you have performed services. By accepting this offer, you also agree that during the term of employment with the Company, you will not engage in any other employment, occupation, consulting, or other business activity directly related to the business which the Company is now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company.

 

	
  

	
16.

	
The Company looks forward to a beneficial relationship. Nevertheless, you should be aware that your employment with the Company is for no specified period and constitutes at-will employment.  As a result, you are free to resign at any time, for any reason or for no reason. Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause, and with or without notice.

 

	
  

	
17.

	
In compliance with the Federal Immigration Reform and Control Act, you will be required to provide the Company documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided to us within three business days of the Effective Date, or our employment relationship with you at any time may be terminated as required by law.

 

	
  

	
18.

	
By accepting this offer, you acknowledge and agree that this document represents the definitive offer by the Company with regard to your employment and that it supersedes any other agreement, either oral or written, relating to your employment with the Company. Any modification to the terms of this offer must be evidenced by an appropriately executed written agreement between you and a Company Officer in order to become binding on the Company.

 

	
  

	
19.

	
The validity, interpretation, construction and performance of this offer letter shall be governed by the laws of the State of California. 

 

  

  

  

Please note that our offer is contingent upon a successful clearance of a background check, references and your written acceptance of the Company’s Code of Business Conduct and Ethics. This offer will remain open until April 14, 2011. Acceptance of this offer should be acknowledged by signing both originals and returning one original to me. Let me indicate how pleased we all are to extend this offer, and how much we look forward to working together.

 

Sincerely,

 

	 	 	 
	 /s/ Masaaki Nishibori	 	 
	 Chief Executive Officer	 	 
	 	 	 
	 	 	 
	 Agreed to and Accepted:	 	 
	 Signature   /s/ Timothy Page                                      	 
	 	 	 
	 Printed Name:_Timothy Page 	 Date   April 14, 2011ex10_3.htm

EXHIBIT 10.3

 

CONTINUING SERVICES AGREEMENT

 

THIS CONTINUING SERVICES AGREEMENT (this "Agreement") is entered into on this 29th day of April, 2011, by and between Masaaki Nishibori ("Director") and CAI International, Inc., a Delaware corporation (the "Company").

 

RECITALS

 

A.          The Company and Director are parties to an Amended and Restated Employment Agreement dated as of April 9, 2009, which was subsequently amended by Amendment #1 to Amended and Restated Employment Agreement dated as of the 30th day of July, 2010 (the Amended and Restated Employment Agreement, as heretofore amended being hereinafter referred to as the "Employment Agreement").

 

B.           Pursuant to the Employment Agreement, Director is employed as the Company's President and Chief Executive Officer.  He also serves as director and/or officer of several of the Company's subsidiaries.  Director's positions as President and Chief Executive Officer of the Company and as director and officer of certain subsidiaries of the Company being hereinafter collectively referred to as the "CAI Officer Positions")

 

C.           Director desires to step down from the CAI Officer Positions, but to continue to provide ongoing services to the Company as a member of its Board of Directors.

 

D.          This Agreement will become effective on June 3, 2011 (the "Effective Date"), which is the date on which Director has indicated will be the date of his retirement.  Effective on the Effective Date, this Agreement will supersede the provisions of the Employment Agreement pertaining to compensation and benefits.  Other provisions of the Employment Agreement shall remain in full force and effect.

 

AGREEMENT

 

In consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and effective as of the Effective Date, the parties hereto hereby agree as follows:

 

	
1.

	
Services

 

It is understood that Director has been elected (by shareholder vote) to the Board of Directors of the Company, and that it is anticipated that Director's term as a member of the Board of Directors will continue after he steps down from the CAI Officer Positions.

 

	
2.

	
Director Benefits

 

During the term of this Agreement, Director shall be entitled to the following benefits:

 

  

  

  

 

(a)          Medical Insurance.  To the extent permitted under the Company's medical insurance plan, as long as Director continues as a member of the Company's Board of Directors, Director and his spouse shall be eligible to participate in the Company's health insurance plans.

 

(b)          Continued Vesting of Stock Options.  Director's continuing service as a Director of the Company shall constitute "continuous service" for purposes of stock option grants that have been previously provided to Employee pursuant to the Company's Equity Incentive Plan.  Such stock option grants shall continue to vest as long as Director continues to serve as a member of the Company's Board of Directors.  Following vesting in full of the currently-issued stock options, Director shall be eligible to receive annual stock option grants that may be awarded to other outside members of the Company's board of directors.

 

(c)          No Other Benefits.  Except for benefits provided generally to the other members of the Company's Board of Directors, Director shall be entitled to no other special benefits.

 

	
3.

	
Term of Agreement

 

(a)          Effective Time.  This Agreement will be effective upon vote of the Company's Board of Directors appointing a successor Chief Executive Officer of the Company (the "Effective Date").  Commencing the Effective Date, the provisions of Sections 1 through 9 of the Employment Agreement shall:  (i) terminate with respect to the period beginning on the Effective Date; and (ii) Director's compensation for continuing services on behalf of the Company shall be such compensation as is provided to him as a member of the Board of Directors generally, plus the compensation provided herein.

 

(b)          Termination.  This Agreement shall terminate upon ninety (90) days advance notice from either Director or the Company.

 

	
4.

	
Proprietary Information

 

Director agrees, during and after the term of his services on behalf of the Company, to comply fully with the Company's policies relating to non-disclosure of the Company's trade secrets and proprietary information and processes and hereby acknowledges and re-affirms his obligations to the Company pursuant to that certain Employment, Confidential Information and Intellectual Property Assignment Agreement previously executed by Director.

 

	
5.

	
Notice

 

Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid.  In the case of Director, mailed notices shall be addressed to him at the home address which he most recently communicated to the Company in writing.  In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary.

 

  

  

  

 

	
6.

	
Miscellaneous Provisions

 

(a)          Waiver.  No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by Director and by authorized officer of the Company (other than Director).  No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.

 

(b)          Whole Agreement.  No agreements, representations or understanding (whether oral or written and whether express or implied) which are not expressly set forth in this Agreement have been made or entered into by either party with respect to the subject matter hereof.

 

(c)          Choice of Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California.

 

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

 

(e)          No Assignment of Benefits.  The rights of any person to payments or benefits under this Agreement shall not be made subject to option or assignment, either by voluntary or involuntary assignment or by operation of law, including (without limitation) bankruptcy, garnishment, attachment or other creditor's process, and any action in violation of this subsection (e) shall be void.

 

(f)           Limitation of Remedies.  If Director's consulting services hereunder terminate for any reason, Director shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement.

 

(g)          Withholding.  The Company shall be entitled to deduct and withhold from any amounts payable under this Agreement such amounts as the Company is required to deduct or withhold therefrom under the Code or under any other applicable law.

 

(h)          Captions.  Captions contained herein are inserted only as a matter of convenience and in no way define, limit or extend the scope or intent of any provision hereof.

 

(i)           Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.

 

(j)           Arbitration.  Any dispute or claim arising under or relating to this Agreement (including without limitation the validity or scope of this Agreement or of any provision hereof or of this Section 6(j)) shall be determined exclusively by arbitration before a single arbitrator in accordance with the commercial arbitration rules of the American Arbitration Association.  In the event the parties cannot agree on an arbitrator within 10 days after either party makes a written call for arbitration hereunder, the arbitrator shall be appointed by the Executive Director of the Northern California office of the American Arbitration Association.

 

  

  

  

 

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year first above written.

 

	 	CAI INTERNATIONAL, INC.	 
	 	 	 	 
	
 

	
By: 

	/s/ Hiromitsu Ogawa    	 
	 	Name: 	Hiromitsu Ogawa	 
	 	Title:  	Chairman	 
	 	 	 	 
	 	DIRECTOR	 
	 	 	 	 
	 	/s/ Masaaki Nishibori        	 
	 	       Masaaki Nishibori

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