Document:

EXHIBIT 10.2

 

AMENDED AND RESTATED

AMENDMENT TO DEALER SALES AND SERVICE AGREEMENTS

 

This Amended and Restated
Amendment to Dealer Sales and Service Agreement (this “AMENDMENT”) is entered
into effective as of June  15, 2006
between Peterbilt Motors Company, a division of PACCAR, Inc., a Delaware
corporation (“PETERBILT”), Rush Truck Centers of Texas, LP, a Texas Limited
Partnership (“Rush Texas”), Rush Truck Centers of California, Inc., a Delaware
corporation (“Rush California”), Rush Truck Centers of Oklahoma, Inc., a
Delaware corporation (“Rush Oklahoma”), Rush Truck Centers of Arizona, Inc., a
Delaware corporation (“Rush Arizona”), Rush Truck Centers of New Mexico, Inc.,
a Delaware corporation (“Rush New Mexico”), Rush Truck Centers of Colorado,
Inc., a Delaware corporation (“Rush Colorado”), Rush Truck Centers of Florida,
Inc., a Delaware corporation (“Rush Florida”), Rush Truck Centers of Alabama,
Inc., a Delaware corporation (“Rush Alabama”), and Rush Truck Centers of
Tennessee, Inc., a Delaware corporation (“Rush Tennessee”) (Rush Texas, Rush
California, Rush Oklahoma, Rush Arizona, Rush New Mexico, Rush Colorado, Rush
Florida, Rush Alabama and Rush Tennessee, collectively, the “Companies” and
individually, a “Company”). Capitalized terms used herein but not defined
herein have the respective meaning given them in the Dealer Sales and Service
Agreements (as defined below).

 

RECITALS

 

PACCAR is a party to certain
Dealer Sales and Service Agreements 
(individually, a “Dealer Sales and Service Agreement” and, collectively,
the “Dealer Sales and Service Agreements”), with each of the Companies pursuant
to which each Company was granted Peterbilt dealership(s) in the territories
specified in each Dealer Sales and Service Agreement.  The Dealer Sales and Service Agreements
currently in effect are set forth on Exhibit A.

 

PACCAR, Rush Enterprises, Inc.
(“Rush”), and the Companies amended the Dealer Sales and Service Agreements by
an Amendment to Dealer Sales and Service Agreements dated October 5, 2000 (the “October
5, 2000 Amendment”).

 

PACCAR, Rush and the Companies
desire that this Amendment supersede and replace the October 5, 2000
Amendment and to have this Amendment apply to all Dealer Sales and Service
Agreements currently in effect between Peterbilt and the Companies, any and all
extensions, amendments and renewals to such Dealer Sales and Service Agreements
(collectively, “Renewal Agreements”) and all future Dealer Sales and Service
Agreements (collectively, “Future Agreements”) entered into between PETERBILT
and the Companies.

 

AGREEMENTS

 

In consideration of the
foregoing premises and of the mutual promises contained herein and for $10.00
and other good and valuable consideration, the adequacy, receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree that (a)
this Amendment shall supersede and replace the October 5, 2000 Amendment and
(b) the Dealer Sales and Service Agreements shall be amended by this Amendment
as follows:

 

1.             Article IV.B of
each of the Dealer Sales and Service Agreements shall be deleted in its
entirety and shall be replaced with the following:

 

B.            Ownership:
Addendum D also sets forth the identity of the persons who have been approved
by PETERBILT to have, with their respective associates, the principal beneficial
ownership interest (in the aggregate no less than 30% of the voting power of
the outstanding shares of capital stock) in Rush Enterprises, Inc., the parent
of DEALER (called “DEALER PRINCIPAL(S)”), and the principal managers of 

 

1

 

DEALER or its
parent who may or may not have ownership interests (called “OPERATING
MANAGER(S)”). Addendum D shall not be amended unless such amendment is in
writing and signed by the parties hereto.

 

DEALER shall
have the right to assign its rights and obligations under this AGREEMENT to any
entity so long as the majority of the capital stock entitled to vote on the
election of directors of such entity or its parent (as defined in Rule-405
under the Securities Act of 1933, as amended) is beneficially owned (as defined
in Rule 13d-3 under the Securities Exchange Act of 1934) in the aggregate by
Rush Enterprises, Inc. or the DEALER PRINCIPAL(S) and their respective
associates (as defined in Rule 12b-2 under the Securities Exchange Act of
1934).

 

2.             Article VIII.B.1.g
of each of the Dealer Sales and Service Agreements shall be deleted in its
entirety and replaced with the following:

 

g.             If (i) the DEALER
PRINCIPAL(S) identified in Addendum D and their respective associates in the aggregate
beneficially own less than 30% of the voting power of the outstanding shares of
capital stock entitled to vote on the election of directors of Rush
Enterprises, Inc. (or any successor thereto), or (ii) any “person” (as that
term is defined under the Securities Exchange Act of 1934, as amended) other
than DEALER PRINCIPAL(S) and their respective associates, or any person who has
been approved in writing by PETERBILT, either (x) owns a greater percentage of
the voting power of the outstanding shares of capital stock entitled to vote on
the election of directors of Rush Enterprises, Inc. (or any successor thereto)
than DEALER PRINCIPAL(S) and their respective associates in the aggregate, or
(y) any person other than W. Marvin Rush, W.M. “Rusty” Rush, Robin M. Rush or
any person who has been approved in writing by PETERBILT holds the office of
Chairman of the Board, President or Chief Executive Officer of Rush
Enterprises, Inc. (or any successor thereto) or (iii) Rush Enterprises, Inc.
(or any successor thereto) is not DEALER or, directly or indirectly, the 100%
owner of DEALER.

 

3.             Article VIII.B.5 of
each of the Dealer Sales and Service Agreements shall be deleted in its
entirety.

 

4.             Article XI.C of
each of the Dealer Sales and Service Agreements shall be deleted in its
entirety and replaced with the following:

 

C.            Collateral
Assignment. Except as provided in the second paragraph of Article IV.B of this
Agreement, DEALER may not pledge, hypothecate, or grant a security interest in,
this AGREEMENT or DEALER’S right, title or interest therein.

 

5.             The first paragraph
(including table) and second paragraph of Addendum D of each of the Dealer
Sales and Service Agreements shall be deleted in their entirety and replaced
with the following:

 

The DEALER
PRINCIPAL(S) are: W. Marvin Rush, Barbara Rush, W.M. “Rusty” Rush, Robin M.
Rush, J.M. “Spike” Lowe, Jr., David C. Orf, Ralph West, James Thor, Daryl
Gorup, Louis Liles, Marty Naegelin, Scott Anderson, Derrek Weaver, Steven
Taylor, Ernie Bendele, Mario Trevino, Rich Ryan, James Lowe and Wade Bosarge.

 

6.             In the Dealer Sales
and Service Agreement with Rush Texas, any and all references to “DEALER” shall
refer solely to Rush Texas; in the Dealer Sales and Service Agreement with 

 

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Rush
California, any and all references to “DEALER” shall refer solely to Rush
California; in the Dealer Sales and Service Agreement with Rush Oklahoma, any
and all references to “DEALER” shall refer solely to Rush Oklahoma; in the
Dealer Sales and Service Agreement with Rush Arizona, any and all references to
“DEALER” shall refer solely to Rush Arizona; in the Dealer Sales and Service
Agreement with Rush New Mexico, any and all references to “DEALER” shall refer
solely to Rush New Mexico; in the Dealer Sales and Service Agreement with Rush
Colorado, any and all references to “DEALER” shall refer solely to Rush
Colorado; in the Dealer Sales and Service Agreement with Rush Florida, any and
all references to “DEALER” shall refer solely to Rush Florida; in the Dealer
Sales and Service Agreement with Rush Alabama, any and all references to “DEALER”
shall refer solely to Rush Alabama; and in the Dealer Sales and Service
Agreement with Rush Tennessee, any and all references to “DEALER” shall refer
solely to Rush Tennessee.

 

7.             Any and all of the
terms and conditions of each of the Dealer Sales and Service Agreements are
hereby amended and modified wherever necessary, even though not specifically
addressed herein, so as to conform to the amendments and modifications
contained in this Amendment.

 

8.             In the event any
Renewal Agreement or Future Agreement contains the same provisions that are
amended, deleted or otherwise modified by this Amendment, then such provisions
in such Renewal Agreement or Future Agreement shall be amended, deleted or
otherwise modified in the same way such provisions are amended, deleted or
modified by this Amendment.

 

9.             Except as amended
hereby, the each Dealer Sales and Service Agreement is hereby ratified and
confirmed and shall continue in full force and effect.

 

IN WITNESS WHEREOF, Rush, the
Companies and PACCAR have caused this Amendment to be executed and delivered as
of the date first above written.

 

 

 

3

 

	
  PETERBILT
  MOTORS COMPANY,

  	
   

  	
  RUSH
  ENTERPRISES, INC.

  
	
  A
  DIVISION OF PACCAR, INC.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Daniel D. Sobic

  	
   

  	
  By:

  	
  /s/ W.M. “Rusty” Rush

  
	
   

  	
  Daniel D. Sobic

  	
   

  	
   

  	
  W.M. “Rusty” Rush

  
	
   

  	
  Vice President—PACCAR,
  Inc.

  	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
  General Manager—Peterbilt
  Motors Company

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  RUSH
  TRUCK CENTERS OF TEXAS, L.P.

  
	
   

  	
   

  	
   

  	
   

  	
  By:  RUSHTEX,
  INC., its General Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  /s/ W. Marvin Rush

  
	
   

  	
   

  	
   

  	
   

  	
  W. Marvin Rush 

  
	
   

  	
   

  	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  RUSH
  TRUCK CENTERS OF ARIZONA, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Marvin Rush, II

  
	
   

  	
   

  	
   

  	
   

  	
  W. Marvin Rush, II

  
	
   

  	
   

  	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  RUSH
  TRUCK CENTERS OF CALIFORNIA, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Marvin Rush, II

  
	
   

  	
   

  	
   

  	
   

  	
  W. Marvin Rush, II

  
	
   

  	
   

  	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  RUSH TRUCK CENTERS OF NEW MEXICO, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Marvin Rush, II

  
	
   

  	
   

  	
   

  	
   

  	
  W. Marvin Rush, II

  
	
   

  	
   

  	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  RUSH
  TRUCK CENTERS OF OKLAHOMA, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Marvin Rush, II

  
	
   

  	
   

  	
   

  	
   

  	
  W. Marvin Rush, II

  
	
   

  	
   

  	
   

  	
   

  	
  Chief Executive Officer

  

 

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

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  RUSH TRUCK CENTERS OF COLORADO, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ W. Marvin Rush, II

  
	
   

  	
   

  	
   

  	
  W. Marvin Rush, II

  
	
   

  	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RUSH
  TRUCK CENTERS OF FLORIDA, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ W. Marvin Rush, II

  
	
   

  	
   

  	
   

  	
  W. Marvin Rush, II

  
	
   

  	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RUSH
  TRUCK CENTERS OF ALABAMA, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ W. Marvin Rush, II

  
	
   

  	
   

  	
   

  	
  W. Marvin Rush, II

  
	
   

  	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RUSH
  TRUCK CENTERS OF TENNESSEE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ W. Marvin Rush, II

  
	
   

  	
   

  	
   

  	
  W. Marvin Rush, II

  
	
   

  	
   

  	
   

  	
  Chief Executive Officer

  

 

 

 

 

 

 

 

5EXHIBIT
10.1

ENGAGEMENT
LETTER

June 12, 2006

 

Mr. David Gartzke

Chairman and CEO

ADESA, Inc.

13085 Hamilton Crossing Boulevard

Carmel, IN  46032

Dear Dave:

Thank you for the
opportunity to work with ADESA, Inc. (“ADESA” or the “Company”). This
letter agreement (“Agreement”) sets forth the terms of our engagement.

SCOPE OF SERVICES

Timothy Clayton,
the sole principal of Emerging Capital, will serve as interim Chief Financial
Officer of the Company and will provide consulting services consistent with the
duties and responsibilities of the Chief Financial Officer. This includes
assisting the Company with the financial reporting process, providing required
certifications, financial forecasting, budgeting, performance measurement,
strategic planning, internal controls, investor relations, administration
assistance and assistance in other areas as desired by the Chairman and Chief
Executive Officer of the Company. He will work closely with the senior
management team and report to the Chairman and Chief Executive Officer of the
Company. It is expected that the fulfillment of the services outlined above
will require a substantial amount of effort during this period which has been
estimated to be approximately 150 to 200 hours per month. It is understood that
Mr. Clayton will be named as an officer of the Company by the Board of
Directors and will accordingly be covered under the Company’s Directors and
Officers liability insurance policy.

The initial term
of the services covered by this Agreement is four months. Such initial term may
be extended at the mutual agreement of the parties. At the end of the initial
term, the parties may discuss the ongoing needs of ADESA and consider revisions
to the terms of this Agreement, if necessary. Either party may terminate this
Agreement upon 30 days’ advance written notice; provided, however, that if
termination is initiated by the Company before the end of the four month,
initial term contemplated by this Agreement, the Company will pay Emerging
Capital an amount equal to the product of the period remaining under this
Agreement multiplied by the monthly retainer.

 

Upon termination
of this Agreement, Emerging Capital shall deliver to the Company all work
product, tangible manifestations of Confidential Information (as defined below)
and Company property in it’s or Mr. Clayton’s possession or under it’s or Mr. Clayton’s
control.

INDEPENDENT CONTRACTOR/WORKS FOR
HIRE

The parties agree
that Emerging Capital is an independent contractor and, as such, neither
Emerging Capital nor any employee or agent of Emerging Capital shall be deemed
an employee of ADESA. As a consequence, ADESA is not responsible for
withholding or deducting from its payments to Emerging Capital any sums for
federal or state income taxes; social security; medical, dental, worker’s
compensation or disability insurance coverage; pension or retirement plans; or
the like. Emerging Capital specifically agrees to pay for any and all federal
and state taxes and other payments lawfully due in connection with the
compensation received pursuant to this Agreement.

During the term of
this Agreement, Mr. Clayton agrees to comply with the Company’s internal
policies and procedures.

Emerging Capital
and Mr. Clayton acknowledge that during the term of this Agreement,
Emerging Capital and Mr. Clayton will receive information not generally
known to others outside of the Company relating to the Company’s trade secrets,
strategies, plans, marketing, sales, finances, operations or other related
information (“Confidential Information”) from the Company in connection with
this engagement and hereby agree to use the same care and discretion to avoid
disclosure, publication or dissemination of any such Confidential Information
as used with its/his own similar information, but no less than reasonable care.

Emerging Capital
and Mr. Clayton agree not to directly or indirectly, whether alone or
jointly with any other person or entity, solicit any employee, customer or
agent of the Company to leave the Company’s employ and/or to cease doing
business with the Company for any reason.

All documentation,
training materials, and other works developed by Emerging Capital or Mr. Clayton
under this Agreement, as well as all papers, records and the like prepared or
produced by Emerging Capital or Mr. Clayton in the performance of services
under this Agreement, shall hereinafter be referred to as “Works.”  All Works shall be the sole and exclusive
property of the Company and the Company shall have the right to examine Works
at any time.

PROFESSIONAL FEES

The fees for the
services outlined in this Agreement will be a $33,500 monthly, non-refundable
retainer payable at the beginning of each month. The services contemplated by
this Agreement will begin on or about June 15, 2006 and the retainer
payment for June, 2006 will be equal to a normal monthly retainer, pro rated
for the period engaged during June, 2006. As noted above, if the time incurred
or expected to be incurred is inconsistent with this fee level, the parties
agree to discuss a modification of these terms for the next engagement period,
if any.

 

In addition, Mr. Clayton
will be eligible for and participate in the ADESA annual incentive bonus plan
established for the Chief Financial Officer for 2006. The amount to be paid
will be equal to the pro rata amount of the annual bonus earned for this
position. The pro rata portion will be based on the amount of time that Mr. Clayton
serves as the Chief Financial Officer of the Company. It is understood that any
amounts payable hereunder related to the 2006 annual incentive bonus may not be
calculated or paid until after the end of 2006, which may be after the term of
this Agreement.

The fees outlined
above are exclusive of reasonable and customary expenses that would be incurred
in this process such as travel, meals, lodging, and delivery services.

We will bill the
Company at the beginning of each month and expect payment promptly upon
receipt.

It is understood
that Mr. Clayton will be entitled to vacation time during this engagement.
This time would be considered paid time off which would be consistent with the
amount of time normally provided to the Chief Financial Officer.

INDEMNIFICATION

ADESA agrees to
indemnify and hold Emerging Capital and Mr. Clayton harmless from and
against any and all damage, loss, cost, expense, obligation, claim or
liability, joint or several, to which Emerging Capital and Mr. Clayton may
become subject in connection with the performance of its obligations hereunder,
including, without limitation any claim arising under federal or state securities
laws, under any other statute, at common law or investigation, and to reimburse
Emerging Capital for any reasonable legal or other expenses (including the cost
of any investigation and preparation) incurred by Emerging Capital and Mr. Clayton
arising out of or in connection with any action or claim in connection
therewith, whether or not resulting in liability; provided however that ADESA
shall not be liable in any such case to the extent that any such loss, claim,
damage or liability is found in a final judgment by a court to have resulted
from Emerging Capital’s gross negligence, bad faith or intentional misconduct
in performing the services provided for under this Agreement. Emerging Capital
and Mr. Clayton shall not be liable for any and all actions of other
parties. This indemnification shall survive any termination or expiration of
this Agreement.

MISCELLANEOUS

This Agreement
sets forth the entire agreement and understanding between ADESA and Emerging
Capital as to the subject matter hereof and merges with and supersedes all
prior discussions, agreements, and understandings of any kind and every nature
between them. This Agreement shall not be changed, modified or amended except
in a writing signed by both parties to the Agreement. This Agreement shall be
governed in all respects by the laws of the State of Indiana, with giving
effect to the principles of conflicts of laws.

 

We are pleased to
enter into this engagement and having Mr. Clayton serve as interim Chief
Financial Officer of the Company.

 

Sincerely,

/s/ Timothy C. Clayton

Timothy C. Clayton

Emerging Capital

 

Agreed and Accepted this 19th day
of June 2006 by:

 

ADESA, Inc.

 

By:  /s/ David G. Gartzke

Name:  David G. Gartzke

Title:  Chairman and Chief Executive
Officer

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