Document:

Exhibit 10.10

 

SEPARATION, RESTRICTIVE COVENANTS, AND CONSULTING AGREEMENT

 

This SEPARATION, RESTRICTIVE COVENANTS, AND CONSULTING AGREEMENT (this “Agreement”) is made and entered into as of the 29th day of September, 2014 (the “Execution Date”) to be effective as of August 31, 2014 (the “Effective Date”) by and between: (a) Jack Cooper Holdings Corp. (the “Company”; and, together with its parent company and its direct and indirect subsidiaries, the “JC Companies”); and (b) Robert Griffin, an individual and resident of the state of Pennsylvania (“Executive”).  This Agreement is made under the following circumstances and understandings of the parties hereto:

 

WHEREAS, the Company (f/k/a IEP Carhaul LLC) and Executive are parties to that certain Amended and Restated Employment Agreement, dated April 1, 2010 and as amended by that certain First Amendment to Amended and Restated Employment Agreement dated May 8, 2014 (the “Employment Agreement”);

 

WHEREAS, Executive has been a director, officer, and/or employee of one or more JC Companies since July 1, 2009;

 

WHEREAS, Executive desires to voluntarily resign from the office of Chief Executive Officer and employment with the Company and, at the same time, voluntarily resign from all of his positions with all other JC Companies (collectively, the “Resignation”);

 

WHEREAS, in connection with the Resignation, the parties hereto desire to agree to a separation package, conditioned upon the terms and conditions of this Agreement;

 

WHEREAS, Executive and the Company desire to agree to certain restrictive covenants as set forth herein; and

 

WHEREAS, Executive desires to provide to the Company certain consulting services as set forth herein.

 

NOW, THEREFORE, in consideration of the premises, which are incorporated and made part of this Agreement, the covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.                                      Separation Consideration.  In exchange for the promises contained in and subject to and conditioned upon the terms and conditions of this Agreement (including, without limitation, Section 3 (General Release and Waiver of Claims)), the Company shall cause to be delivered to Executive the following separation consideration (the “Separation Consideration”):

 

(a)                                 Separation Payments.  The Company shall pay Executive a gross total of One Million One Hundred Thousand U.S. Dollars ($1,100,000), less applicable deductions and withholdings (the “Separation Payments”), due and payable in sixteen (16) equal monthly installments of Sixty-Eight Thousand Seven Hundred Fifty U.S. Dollars ($68,750) per month (less applicable deductions and

 

 

withholdings), payable in accordance with the Company’s normal payroll practices for executives, beginning with the month of September 2014 and ending with the month of December 2015.

 

(b)                                 Executive Benefits.  Subject to the other provisions of this Section 1(b), Executive shall be entitled to participate in the Company’s health, group life insurance, and long-term disability programs in which he is participating as of the Separation Date (the “Programs”), if and to the extent Executive is eligible under (and subject to the provisions of) the plan documents governing the Programs; provided, however, if and to the extent Executive is ineligible to participate in the Programs and Executive elects to participates in any programs substantially similar to the Programs (the “Replacement Programs”), then the Company shall reimburse Executive for the portion of the premiums of the Replacement Programs paid by Executive.  The Company shall allow Executive to participate in the Programs and/or reimburse Executive for the portion of the premiums of the Replacement Programs paid by Executive, as applicable and in accordance with the preceding sentence, beginning with the date upon which Executive first becomes eligible for, and elects to participate in, the Programs and/or the Replacement Programs, as applicable and in accordance with the preceding sentence, and ending on the earliest of (i) December 31, 2015, and (ii) the date that Executive becomes eligible for employer-provided group benefits under another provider’s group health plan.

 

(c)                                  Company Car; Computers and Cellular Telephone.

 

(i)                                     The Company shall transfer title to Executive’s most recent company car or a company car of equal value as reasonably designated by Executive (the “Company Car”) to Executive, free and clear of any liens, upon obtaining consent to such transfer of title from any lenders of the Company whose consent to the same is required.  The bill of sale and/or transfer of title shall reflect a purchase price of One Hundred U.S. Dollars ($100.00).

 

(ii)                                  Executive shall be entitled to retain the Company laptop computer, tablet computer, and cellular telephone (together with the telephone number assigned thereto) most recently used by Executive in connection with his employment with the Company; provided that Executive shall first deliver all such electronic devices to the CFO, GC, or CIO of the Company to allow the Company to transfer and/or delete any Company information therefrom; and provided further that Executive shall not retain or use any Company information on such electronic devices and shall continue to be subject to all agreements with any JC Companies related to secrecy, confidentiality, security, new products, ideas, inventions, and confidential data, whether provided herein, in the Employment Agreement, or elsewhere.

 

 

(d)                                 Taxes.  Executive understands and acknowledges that any payment pursuant to Sections 1(a) through (c) above shall be appropriately reported to the IRS and shall be subject to all deductions and withholdings required by law.

 

2.                                      Termination of Employment; Resignation from All Positions.

 

(a)                                 Executive’s employment with the Company shall be terminated as of August 31, 2014 (the “Separation Date”), and the following Sections of the Employment Agreement shall be terminated and considered of no further force or effect: Section 1 (Term of Employment), Section 2 (Title; Capacity), Section 3 (Compensation and Benefits), Section 4 (Termination of Employment), and Section 5 (Effect of Termination).  Executive acknowledges and agrees that, except for the Separation Consideration, he shall not receive or be entitled to any compensation, bonuses, benefits, or other consideration from the Company or any other JC Company, and he waives all rights to such consideration from the Company or any other JC Company.

 

(b)                                 Any benefits previously provided to Executive under the terms of his employment with the Company or any other JC Company, including, without limitation, fringe and retirement benefits, shall cease on the Separation Date and not continue in any manner unless otherwise expressly provided in this Agreement or by law.

 

(c)                                  Executive shall and hereby does resign from all positions as director, officer, employee, or otherwise of the Company and all other JC Companies effective as of the Separation Date.

 

3.                                      General Release and Waiver of Claims.

 

(a)                                 As used in this Agreement, the term “Releasees” means the JC Companies and any one or more of the successors, assigns, and current and former shareholders, LLC members, partners, directors, LLC managers, trustees, officers, employees, agents, and representatives of the JC Companies.

 

(b)                                 As used in this Agreement, the term “Claim” shall mean any and all claims made, to be made, or which might have been made of whatever kind or nature from the beginning of time to and including the Execution Date, including, but not limited to, those that arose as a consequence of Executive’s employment with the Company or any other JC Company and the termination thereof, any conduct, practice, policy, omission, or agreement of the JC Companies, or arising out of any acts committed or omitted during or after the existence of the employment relationship, all up through and including the Execution Date, including, but not limited to, actions in common law, in equity, contract, or tort, including, but not limited to, claims for back pay, front pay, wages, bonuses, fringe benefits, any form of discrimination, emotional distress, breach of any oral, written, or implied contract, pain and suffering, physical injuries, compensatory or punitive damages, interest, attorney’s fees, severance pay, vacation pay, deferred compensation, commissions, liquidated damages, sick pay, disability pay, and/or any other

 

 

benefit.  The word “Claim,” shall not include alleged breaches by the Company of this Agreement.

 

(c)                                  As a material inducement to the Company to enter into this Agreement and pay the Separation Consideration, Executive, on behalf of himself and his successors, assignees, agents, representatives, attorneys, beneficiaries, heirs, and personal representatives (collectively, the “Releasors”), hereby: (i) knowingly, voluntarily, irrevocably, unconditionally, and absolutely releases, waives, relinquishes, remises, acquits, and forever discharge and agrees not to sue the JC Companies or any of the other Releasees on any and all Claims against the JC Companies or any of the other Releasees, whether known or unknown, which have arisen or could have arisen in any manner as of the Execution Date; (ii) represents that he has not filed any Claim against the JC Companies or any of the other Releasees; (iii) agrees that he will not hereafter file any Claim against the JC Companies or any of the other Releasees or seek any compensation for any Claim other than the Separation Consideration, and that if any agency or court assumes jurisdiction over any Claim against the JC Companies or any of the other Releasees on behalf of or otherwise for the benefit of Executive, he will direct that agency or court to withdraw from or dismiss with prejudice the Claim.  Nothing in this Section 3(c) is intended to preclude Executive from pursuing claims for alleged breaches by the Company of this Agreement.

 

4.                                      Restrictive Covenants Payments.

 

(a)                                 Subject to and conditioned upon the full and complete performance of all the conditions, agreements, and other obligations set forth in this Agreement (including, without limitation, Section 5 (Non-Competition, Non-Solicitation, and Other Restricted Activities), Section 6 (Definitions), and Section 7 (Confidentiality)), the Company shall make the following payments to Executive in the gross total amount of One Million Five Hundred Thousand U.S. Dollars ($1,500,000) (the “Restrictive Covenants Payments”):

 

Commencing on October 1, 2014 and ending on September 1, 2019, sixty (60) consecutive monthly installments each in the amount of Twenty-Five Thousand U.S. Dollars ($25,000.00), less applicable deductions and withholdings, and payable on the first day of each month (or if such day is not a business day, the immediately succeeding business day).

 

(b)                                 Notwithstanding anything in this Agreement to the contrary, the Restrictive Covenants Payments are expressly subject to and conditioned upon Executive’s full and complete performance of all the conditions, agreements, and other obligations set forth in this Agreement (including, without limitation, Section 5 (Non-Competition, Non-Solicitation, and Other Restricted Activities), Section 6 (Definitions), and Section 7 (Confidentiality)).  Should Executive breach or fail to adhere to any of the provisions of this Agreement (including, without limitation, Section 5 (Non-Competition, Non-Solicitation, and Other Restricted Activities),

 

 

Section 6 (Definitions), or Section 7 (Confidentiality)), then the Company’s obligation to make any of the outstanding Restrictive Covenants Payments shall completely cease and be otherwise completely excused.  Executive acknowledges and agrees that he would not have received the consideration described in this Section 4 but for his execution of this Agreement and his full and complete performance of all the conditions, agreements, and other obligations set forth in this Agreement (including, without limitation, Section 5 (Non-Competition, Non-Solicitation, and Other Restricted Activities), Section 6 (Definitions), and Section 7 (Confidentiality)).

 

5.                                      Non-Competition, Non-Solicitation, and Other Restricted Activities.

 

Executive hereby acknowledges and agrees that: (i) Executive has had access to proprietary documents and information regarding the Company’s and the other JC Companies’ customers, suppliers, financing sources, employees, services, products, methods of operation, sales, and pricing, and the specialized business needs of the Company’s and the other JC Companies’ customers, suppliers, and financing sources, which documents and information are highly confidential; and (ii) the Company’s and the other JC Companies’ relationships with its customers, suppliers, financing sources, and employees are among the Company’s and the other JC Companies’ most important assets and business interests.  Because of these circumstances and in exchange for the Restrictive Covenants Payments, Executive covenants and agrees that Executive shall, for a period beginning with the Separation Date and ending on September 1, 2019 (the “Restrictive Covenants Payments Period”), observe, abide by, and comply with the following separate and independent covenants:

 

(a)                                 Neither Executive nor any of his Affiliates shall, without the prior written consent of the Company (which may be withheld in the Company’s sole and absolute discretion), either directly or indirectly, perform services comparable to the services Executive performed for the Company or any other JC Company for any Competing Enterprise (as hereinafter defined), whether as an owner, investor, operator, manager, employee, independent contractor, or otherwise;

 

(b)                                 Neither Executive nor any of his Affiliates shall, without the prior written consent of the Company (which may be withheld in the Company’s sole and absolute discretion), either directly or indirectly, associate with any trade or labor union with whom Executive had Material Contact (as hereinafter defined) while employed by the Company or any other JC Company for the purpose of diverting or appropriating any Business of the Company or any other JC Company on behalf of any Competing Enterprise, whether as an owner, investor, operator, manager, employee, independent contractor, or otherwise;

 

(c)                                  Neither Executive nor any of his Affiliates shall, without the prior written consent of the Company (which may be withheld in the Company’s sole and absolute discretion), either directly or indirectly, on Executive’s own behalf or in the service or on behalf of others, call upon, solicit, divert, or appropriate, or attempt

 

 

to solicit, divert, or appropriate, any business from any of the Company’s or any other JC Company’s customers with whom Executive had Material Contact during Executive’s employment with the Company or any other JC Company, for the purpose of providing technology, products, or services of a Competing Enterprise which are competitive with the technology, products, or services of the Company or any other JC Company, or offer any inducement to any of the Company’s or any other JC Company’s customers with whom Executive had Material Contact during Executive’s employment with the Company or any other JC Company to terminate or negatively change such customer’s relationship with the Company or any other JC Company;

 

(d)                                 Neither Executive nor any of his Affiliates shall, without the prior written consent of the Company (which may be withheld in the Company’s sole and absolute discretion), either directly or indirectly, on Executive’s own behalf or in the service or on behalf of others, (i) solicit, divert, or hire, or attempt to solicit, divert, or hire, any person employed by the Company or any other JC Company, (ii) solicit, encourage, or offer any inducement to any employee of the Company or any other JC Company to leave the employ of the Company or such other JC Company, or (iii) solicit for employment, hire, or engage as an employee or independent contractor, any person who was employed by the Company or any other JC Company at any time during the last twelve (12) months of the term of Executive’s employment with the Company or any other JC Company; and

 

(e)                                  Executive shall not publish, utter, broadcast, or otherwise communicate any information, misinformation, comments, opinions, remarks, articles, letters, or any other form of communication, whether written or oral, regardless of its believed truth, which is adverse to, reflects unfavorably upon, or tends to disparage any of the Company, any other JC Company, or their respective Affiliates or the technology, products, services, prospects, or financial condition of the Company, any other JC Company, or their Affiliates, or any equity holder, director, officer, employee, or controlling person of the Company, any other JC Company, or their Affiliates, to any Person (including, without limitation, any of the Company’s or any other JC Company’s customers, prospective customers, suppliers, financing sources, and competitors, and any industry trade group or labor union), provided that communications to Executive’s attorney or spouse and/or compelled testimony under oath being expressly excepted.

 

6.                                      Definitions. The following capitalized terms are used in this Agreement with the meanings thereafter ascribed:

 

“Affiliate” means, with respect to any Person, a Person that directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with such Person.  “Control” (including the terms “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management policies of a Person, whether through the ownership of voting securities, by contract or credit arrangement, as trustee or executor, or otherwise.

 

 

“Business” means engaging in activities or offering or providing products or services of the type conducted, authorized, offered, or provided by the Company or any JC Company within two (2) years prior to the Separation Date, including, without limitation, the business of transporting or hauling new and used vehicles and/or providing other finished vehicle logistics services for, and providing and selling related services to, customers in the United States of America, Canada, and/or Mexico.

 

“Competing Enterprise” means any Person, other than any JC Company, of whatever form engaged in the Business.

 

“Consulting Term” means the period commencing with the Execution Date and ending on the earlier of (i) the consummation of an IPO and (ii) December 31, 2015.

 

“IPO” means an underwritten initial public offering of equity interests of the Company or any other JC Company pursuant to an effective registration statement under the Securities Act of 1933, as amended.

 

“Material Contact” with a Person means contact for the purpose of advancing in any manner the Company’s or any other JC Company’s business relationship with such Person.

 

“Person” means any natural person, firm, partnership, association, corporation, limited liability company, trust, business trust, governmental entity, trade union, or other entity.

 

7.                                      Confidentiality.

 

During the Restrictive Covenants Payments Period, Executive shall, and shall cause his Affiliates to, keep all proprietary or confidential information relating to the Company and the other JC Companies and their businesses, services, or activities strictly confidential, and shall not, and shall cause his Affiliates not to, use any of such proprietary or confidential information, except to the extent that: (a) it is necessary or appropriate to disclose such information to a Governmental Entity having jurisdiction over Executive or any of Executive’s Affiliates from whom disclosure is sought; (b) any requirement of applicable Law requires otherwise; or (c) such duty as to confidentiality is waived in writing by the Company (which may be withheld in the Company’s sole and absolute discretion); provided that, with respect to subclauses (a) and (b), if Executive or any of his Affiliates is required (in any legal proceeding, interrogatory, subpoena, civil investigative demand, or similar process) to disclose any proprietary or confidential information, then Executive shall notify the Company promptly of the requirement in writing so that the Company may seek an appropriate protective order (at the Company’s expense) or waive compliance with the provisions of this Section 6; and provided further that, the foregoing and following obligations shall not apply to any such information that becomes publicly available other than as a result of a breach of the foregoing obligations or other obligations of Executive to the Company or any other JC Company or a breach by a third party which was under an obligation to the Company or any other JC Company

 

 

not to disclose such proprietary or confidential information.  If, in the absence of a protective order or the receipt of a waiver hereunder, Executive or any of his Affiliates is, on the advice of his, her, or its outside counsel, required to disclose such information, Executive or such Affiliate may disclose such information; provided that Executive or such Affiliate shall use his, her, or its best efforts to obtain, at the request and expense of the Company, an order or other assurance that confidential treatment will be accorded to such portion of such information required to be disclosed as the Company shall designate and shall disclose only such portions of such information as are required.

 

8.                                      Consulting.

 

(a)                                 During the Consulting Term, Executive shall serve as an advisor and consultant to the Company and the other JC Companies in connection with the JC Companies’ efforts to consummate an IPO.  Executive agrees to assist the Company’s Chief Executive Officer, General Counsel, Chief Commercial Officer, Chief Operating Officer, and Chief Financial Officer, upon requests from time to time, on matters related to the IPO, including, without limitation, the preparation and filing of a Form S-1 and the preparation of investors presentations.

 

(b)                                 During the Consulting Term, Executive shall devote such time as necessary to comply with his duties and obligations under this Section 8.

 

(c)                                  For Executive’s services during the Consulting Term under this Section 8, the Company shall pay to Executive the following compensation:

 

(i)                                     On or before October 15, 2014, the gross total amount of Five Hundred Thousand U.S. Dollars ($500,000), less applicable deductions and withholdings; and

 

(ii)                                  Within five (5) business days of the closing of an IPO, the gross total amount of Five Hundred Thousand U.S. Dollars ($500,000), less applicable deductions and withholdings (the “Contingent Consulting Amount”); provided that the Company’s obligation to pay the Contingent Consulting Amount is and shall be expressly subject to and conditioned upon the closing of an IPO on or before December 31, 2015.

 

(d)                                 Executive and the Company acknowledge and agree that, during the Consulting Term, Executive shall be considered by both Executive and the Company as an independent contractor and not an employee of the Company.

 

9.                                      Miscellaneous Provisions.

 

(a)                                 If any restriction set forth in Section 4 (Restrictive Covenants Payments), Section 5 (Non-Competition, Non-Solicitation, and Other Restricted Activities), Section 6 (Definitions), or Section 7 (Confidentiality) above is found by any court of competent jurisdiction to be unenforceable because it extends for too long a

 

 

period of time, over too great a range of activities, or in too broad a geographic area, then it shall be interpreted to extend only over the maximum period of time, range of activities, or geographic area as to which it may be enforceable.

 

(b)                                 This Agreement shall be governed by and construed in accordance with the laws of the state of Missouri to the extent not governed by federal law, without giving effect to its choice of law provisions.  Each party hereto irrevocably consents to the exclusive jurisdiction of the federal and state courts located in Kansas City, Missouri for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement.

 

(c)                                  This Agreement constitutes the entire agreement between the parties hereto and supersedes all prior understandings, whether oral or written.

 

(d)                                 The terms of this Agreement shall be construed and administered in a manner calculated to meet the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).  To the extent a provision of the Agreement fails to address the minimum requirements of Section 409A of the Code and applicable guidance thereunder, the Company may, in its discretion but with Executive’s prior written consent (which consent shall not be unreasonably withheld or delayed), take such steps as it deems reasonable to provide the coverage or benefits provided under the Agreement so as to comply with Section 409A of the Code and the guidance issued thereunder.

 

(e)                                  If any provision of this Agreement is ever declared unenforceable, void, invalid, or voidable as a result of a claim brought by or on behalf of Executive, then Executive agrees voluntarily to repay to the Company, at the sole option of the Company, all the consideration provided for in this Agreement, notwithstanding any law, regulation, or agency interpretation/opinion to the contrary.

 

(f)                                   If any provision of this Agreement is ever declared unenforceable, void, invalid, or voidable, then the parties hereto intend that the validity, legality, and enforceability of the remaining provisions of this Agreement shall in no way be affected or impaired and that the remaining provisions of this Agreement shall remain valid and enforceable as written to the maximum extent permitted by law.

 

(g)                                  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute together one and the same Agreement.  Facsimile copies and photocopies of signatures shall be accepted as originals.

 

(h)                                 The parties hereto are not relying on any representation or warranty of any other party not contained herein, and, in the event of any dispute concerning this Agreement, the parties hereto shall be considered joint authors and no provision shall be interpreted against any party because of alleged authorship.

 

 

(i)                                     Notwithstanding anything in this Agreement to the contrary and in addition to any agreements that Executive has signed with the Company or any other JC Company concerning secrecy, confidentiality, security, new products, ideas, inventions, and confidential data (including, without limitation, the provisions of this Agreement above and the surviving provisions of the Employment Agreement), which agreements shall remain in full force and effect, Executive agrees to return immediately to the Company and shall not take, copy, use, or reveal to any person in any form or manner, any documents or information which any JC Company deems confidential or proprietary, including, but not limited to, commercial strategies, lists of customers or potential customers, financial information, business practices, business and strategic plans, and other similar confidential materials or information.

 

(j)                                    Except as expressly amended herein or terminated hereby, the terms, covenants, and conditions of Section 6 (Proprietary Information and Developments), Section 7 (Definitions), and Section 8 (Miscellaneous) of the Employment Agreement will remain in full force and effect.

 

[Signatures Follow on Next Page]

 

 

[Signature Page to Separation, Restrictive Covenants, and Consulting Agreement]

 

IN WITNESS WHEREOF, the undersigned parties have executed this Agreement as a sealed instrument to be effective as of the Effective Date.

 

 

	
 
    	
 
    	
 
    	
“Executive”
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Dated:
    	
09/26/2014
    	
 
    	
/s/ Robert Griffin
    
	
 
    	
 
    	
 
    	
Robert   Griffin, an   individual
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
“Company”
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Jack   Cooper Holdings Corp.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Dated:
    	
09/29/2014
    	
 
    	
By:
    	
/s/ T. Michael Riggs
    
	
 
    	
 
    	
 
    	
 
    	
T.   Michael Riggs, Chairman
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
/s/ T. Michael RiggsExhibit 10.11

 

Jack Cooper Holdings Corp.

630 Kennesaw Due West Road

Kennesaw, Georgia 30152

 

November 17, 2014

 

Theo A. Ciupitu

270 17th Street NW #4605

Atlanta, GA 30363

 

Re:                             Offer of Continued Employment

 

Dear Theo,

 

Please accept this letter agreement as an offer of continued employment with Jack Cooper Holdings Corp. (the “Company”; and, together with its parent company and its direct and indirect subsidiaries, the “JC Companies”). If you accept this offer of continued employment by signing at the bottom of this letter agreement, your continued employment with the Company will be based upon the terms and conditions set forth herein effective as of January 1, 2015 (the “Effective Date”).

 

It is acknowledged and agreed between the parties hereto that you have been an employee of one or more JC Companies since July 1, 2010, and that this letter agreement shall amend and restate any prior agreements in their entirety between you and any JC Companies concerning your employment with such JC Companies, including, without limitation, that certain Employment Agreement between you and the Company (f/k/a Jack Cooper Holdings LLC), dated June 1, 2010 (collectively, the “Prior Agreements”).

 

You will hold the title of General Counsel and Executive Vice President of the Company and will report directly to the Chairman of the Board of Directors and/or the Chief Executive Officer of the Company.

 

Your compensation and benefits will be as follows:

 

1.                                      Your initial base salary will be $330,000 per year, subject to upward adjustment from time to time as determined by the Chairman, the Chief Executive Officer, or the Board of Directors of the Company in his or its sole and absolute discretion.

 

2.                                      You will have the opportunity to receive an annual, performance-based, discretionary bonus of up to fifty percent (50%) of your then current base salary as determined by the Chairman, the Chief Executive Officer, or the Board of Directors of the Company in his or its sole and absolute discretion. Furthermore, you will have the opportunity to receive additional discretionary bonuses as determined by the Chairman, the Chief Executive Officer, or the Board of Directors of the Company in his or its sole and absolute discretion.

 

 

3.                                      As of the first day of your employment with the Company, you will be entitled to participate in all benefit programs, if any, that the Company establishes and makes available to its employees to the extent you are eligible and it is permitted under the plan documents governing such programs.

 

4.                                      You will be entitled to four (4) weeks paid vacation per year, in addition to sick days and paid holidays, all in accordance with the Company’s policies and procedures.

 

5.                                      The Company shall pay (or, if applicable, reimburse you for) all of the cost of: (a) any reasonable dues and costs related to any business or professional organizations or associations relevant to your employment, including, without limitation, any admission fees and dues and other costs related to joining the American Bar Association, the Georgia State Bar, the Atlanta Bar Association, the Association of Corporate Counsel, and any other applicable state and local bar associations (to include two sections in each case); (b) any malpractice insurance and directors and officers insurance, including, without limitation, malpractice insurance with respect to providing professional services outside the employment provided for herein (e.g., providing legal services for the Riggs family); and (c) any reasonable expenses for continued legal education.

 

6.                                      You will be entitled to an automobile allowance of $650 per month and reimbursement of reasonable fuel charges incurred in connection with your employment with the Company.

 

7.                                      (a)                                 Except as provided in Section 7(b) below, in the event of your Termination (as hereinafter defined), then the Company shall pay to you (i) the then current base salary through the last day of your actual employment with the Company, (ii) any bonuses earned by you and declared by the Chairman, the Chief Executive Officer, or the Board of Directors of the Company prior to such Termination for periods prior to such Termination (if any), and (iii) any benefits otherwise payable through the last day of your actual employment with the Company, and you shall thereafter not be entitled to any other compensation, payment, benefit, or right in connection with your employment.

 

(b)                                 Notwithstanding anything herein to the contrary, solely in the event of your Termination by the Company without Cause (as hereinafter defined) prior to the fifth (5th) anniversary of the Effective Date, then the Company shall pay to you: (i) (x) the then current base salary through the last day of your actual employment with the Company, (y) any bonuses earned by you and declared by the Chairman, the Chief Executive Officer, or the Board of Directors of the Company prior to such Termination for periods prior to such Termination (if any), and (z) any benefits otherwise payable through the last day of your actual employment with the Company; and (ii) the initial base salary of $330,000 until the earlier of (x) eighteen (18) months after the date of such Termination by the Company without Cause and (y) the fifth (5th) anniversary of the Effective Date. The payment to you of the amounts payable under this Section 7(b) shall (A) be contingent upon the execution by you of an irrevocable separation agreement and general release of claims, in substantially the form attached hereto as Exhibit A, that releases the JC Companies from any and all liability in any way related to the circumstances

 

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of your employment and termination therefrom and (B) constitute the sole remedy of yours in the event of a termination of your employment hereunder.

 

(c)                                  For purposes of Section 7(b), “Cause” means: (i) a breach of this letter agreement, which breach is not cured by you within thirty (30) days following the date that the Company provides written notice to you of such breach and the circumstances of such breach is reviewed with you by the Chairman or the Chief Executive Officer and a human resources representative of the Company; (ii) your gross negligence, gross misconduct, fraud, or dishonesty in connection with your performance of your duties, as determined by the Chairman, the Chief Executive Officer, or the Board of Directors of the Company in his or its reasonable and good faith judgment; (iii) the conviction of you for a felony or crime involving moral turpitude; (iv) the commission of a willful act by you causing harm to the Company or any other JC Company which harm, when capable of cure, is not cured within thirty (30) days following the date the Company provides notice thereof; (v) your willful refusal to follow the lawful directives of the Chairman, the Chief Executive Officer, or the Board of Directors of the Company consistent with your job title; or (vi) your failure to follow any policies or procedures of the Company following the date the Company provides written notice of such failure.

 

(d)                                 The Company acknowledges and agrees that you, at your option, may work from a home office and/or a Company office anywhere in the “Greater Atlanta Metropolitan Area” as well as otherwise mutually agreed to between you and the Chairman, the Chief Executive Officer, or the Board of Directors of the Company. If you and the Company agree to an employment-related relocation, then you will be entitled to a reimbursement of properly documented, customary and reasonable, out-of-pocket moving expenses from your current primary residence to a new primary residence, provided the Company’s prior written approval shall be required with respect to any expenses that in the aggregate exceed $10,000.

 

8.                                      By signing this letter agreement and accepting this offer of employment, you are representing and warranting to the Company that, as of the Effective Date: (a) you have not provided to the Company any confidential information or trade secrets of any of your former employers or other parties for whom you have previously performed services (such parties collectively referred to as “Former Employer”); and (b) you are not restricted by any agreement, contract, obligation, or covenant from (i) competing with any Former Employer, (ii) soliciting business from any clients or customers of any Former Employer, (iii) offering to hire or hiring the employees of any Former Employer, or (iv) performing any of your anticipated employment duties and obligations for the Company.

 

9.                                      During your employment with the Company or any other JC Company (including your employment under the Prior Agreements) and for two (2) years after your Termination, you shall not, directly or indirectly, on your behalf or in the service or on behalf of others:

 

(a)                                 (i) Solicit, or attempt to solicit, any business from any of the JC Companies’ customers, including actively seeking prospective customers, with whom you had Material Contact (as hereinafter defined) during your employment with the Company or any other JC Company for purposes of providing products or services that are competitive with those provided by the Company or any other JC Company; or (ii) induce, or attempt to induce, any of the JC

 

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Companies’ customers with whom you had Material Contact during your employment with the Company or any other JC Company to terminate, reduce, or otherwise negatively change such customer’s relationship with such JC Company.

 

(b)                                 (i) Solicit, divert, or hire, or attempt to solicit, divert, or hire, any person employed by the Company or any other JC Company; or (ii) solicit, encourage, or offer any inducement to any employee of the Company or any other JC Company to leave the employ of the Company or such other JC Company.

 

(c)                                  Own, manage, operate, join, control, be employed by or with, or participate in any manner with a Competing Business (as hereinafter defined) anywhere in the Territory (as hereinafter defined) where doing so will require you to engage in Competitive Activities.

 

(d)                                 Publish, broadcast, or otherwise communicate any information, misinformation, comments, opinions, or remarks, whether written or oral, regardless of its believed truth, which is adverse to, reflects unfavorably upon, or tends to disparage the Company or any other JC Company or their products, services, operations, or business, provided that communications to your attorney or spouse and/or compelled testimony under oath being expressly excepted.

 

(e)                                  For purposes of this letter agreement:

 

(i)                                     “Material Contact” means the contact between you and each customer or potential customer: (A) with whom or which you dealt on behalf of any JC Company; or (B) whose dealings with any JC Company were coordinated or supervised by you; or (C) about whom you obtained confidential information in the ordinary course of business as a result of your association with any JC Company; or (D) who received products or services authorized by any JC Company, the sale or provision of which results or resulted in compensation, commissions, or earnings for you within two (2) years prior to the date of your Termination.

 

(ii)                                  “Competing Business” means any individual (including, without limitation, you), corporation, limited liability company, partnership, joint venture, association, or other entity, regardless of form, that is directly engaged in whole or in relevant part in any business or enterprise that is the same as, or similar to, the business of any JC Company. The JC Companies are engaged in the business of carhauling and/or finished vehicle logistics in the United States of America, Canada, and/or Mexico.

 

(iii)                               “Competitive Activities” means engaging in activities or offering or providing products or services of the type conducted, authorized, offered, or provided by any JC Company within two (2) years prior to your Termination.

 

(iv)                              “Territory” means any and all geographic areas where you were undertaking your duties and/or responsibilities for the Company or any other JC Company within two (2) years prior to your Termination.

 

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(v)                                 “Termination” means the termination of your employment with the Company at any time and for any reason or under any circumstances, whether with or without cause, with or without good reason, initiated by you or the Company, or otherwise.

 

10.                               (a)                                 During your employment with the Company and any other JC Company (including your employment under the Prior Agreements) and for three (3) years after your Termination, you shall: (i) hold all Confidential Information (as hereinafter defined) in the strictest confidence and you shall not, without the prior written authorization of the Company or as required by law, regulation, or legal process, disclose any Confidential Information in any manner to any person or entity, other than in the furtherance of your duties to the Company during your employment with the Company; and (ii) not use, misuse, or reproduce any Confidential Information, except as (x) may be necessary in connection with your services performed for the Company or any other JC Company hereunder or (y) required by applicable law, regulation, or legal process.

 

(b)                                 For purposes of this letter agreement, “Confidential Information” means information of a private, proprietary, secret, or confidential nature relating to the Company and/or the other JC Companies, including, without limitation, information concerning the Company’s and/or the other JC Companies’ customers (including names, addresses, telephone numbers, contact persons, and other identifying information with respect to the needs and requirements for customers; information dealing with the nature of customers’ accounts, including, without limitation, the dates on which agreements between any JC Company and such customers will end and/or be subject to renewal; and rate and price information and history relating to products or services provided by any JC Company to its customers), suppliers, distributors, financing sources, investors, operations, finances (including, without limitation, personnel data relating to any JC Company’s employees, such as compensation arrangements of such employees with any JC Company; any financial information relating to any JC Company’s income, budgeting, cost structures, expenses, profits, and general financial standing), businesses, equity and debt offerings and other financings, mergers and acquisitions, and other business transactions that derives value from not being generally known to other persons, including, but not limited to, technical or nontechnical data, formulas, patterns, compilations (including, without limitation, compilations of customers, suppliers, distributors, financing sources, and investors information), programs (including, without limitation, computer programs and software), devices, methods, techniques, drawings, processes, procedures, financial data (including, without limitation, financial statements, financial models, budgets, and forecasts), lists of actual or potential customers, suppliers, distributors, financing sources, and investors (including, without limitation, identifying information about such parties), business, strategy, and marketing plans and materials, negotiation strategies and positions, pricing and cost strategies, licensing strategies, advertising campaigns, training, policy, and procedure manuals, and other aspects of the businesses, without regard to form and whether or not reduced to writing. “Confidential Information” shall not include information that: (i) was known to you at the time of receipt from the Company or another JC Company, so long as such information was not acquired directly or indirectly from the Company or any other JC Company or any person or entity who owed an obligation of confidentiality to the Company or any other JC Company whether by contract or otherwise; (ii) is or becomes publicly known through no act or fault of

 

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yours; or (iii) was received by you from a third party having the legal right to transmit the same; provided, however, that a combination of features shall not be deemed to be within the foregoing exceptions merely because individual features are in the public domain or otherwise within such exceptions, as previously described, unless the combination itself is in the public domain or otherwise entirely within any one such exception.

 

11.                               Upon your Termination, or at any other time at the Company’s request, you agree to and shall promptly deliver to the Company all of its or any JC Company’s materials, documents, plans, records, notes, drawings, or papers and any copies thereof (whether electronic or hard copy) that may be in your possession or under your control, including in particular all notes or records you have relating to any Confidential Information.

 

12.                               (a)                                 You agree that any and all Inventions (as hereinafter defined) during your employment with the Company or any other JC Company (including your employment under the Prior Agreements) shall be the sole and exclusive property of the Company. You shall, with respect to any Invention: (i) keep current, accurate, and complete records, which shall belong to the Company and be kept and stored on the Company’s premises; (ii) promptly and fully disclose the existence and describe the nature of the Invention to the Company in writing (and without request); (iii) assign (and you hereby assign) to the Company all of your right, title, and interest in and to the Invention, any applications you make for patents or copyrights in any country, and any patents or copyrights granted to you in any country; and (iv) acknowledge and deliver promptly to the Company any written instruments, and perform any other acts necessary in the Company’s opinion to preserve property rights in the Invention against forfeiture, abandonment, or loss and to obtain and maintain letters patent and/or copyrights on the Invention and to vest the entire right and title to the Invention in the Company. You also agree to perform promptly (without charge to the Company but at the expense of the Company) all acts as may be necessary in the Company’s opinion to preserve all patents and/or copyrights granted upon the Inventions.

 

(b)                                 You are hereby notified that this Section 12 does not apply to any inventions for which no equipment, supplies, facility, or trade secrets of the Company or any other JC Company is used and which is developed on your own time, and (i) which does not relate (A) directly to the business of the Company or any other JC Company or (B) to the Company’s or any other JC Company’s actual or demonstrably anticipated research or development, or (ii) which does not result from any work performed by you for the Company or any other JC Company.

 

(c)                                  If, in the course of your employment with the Company or any other JC Company (including your employment under the Prior Agreements), you use, provide, or incorporate into any goods, services, systems, or operations of the Company or any other JC Company any intellectual property owned by you or in which you have an interest, then you hereby grant the Company, under all of your intellectual property and proprietary rights, the following worldwide, non-exclusive, perpetual, irrevocable, royalty-free, and fully paid-up license and rights: (i) to make, use, copy, modify, and create derivative works of such intellectual property; (ii) to publicly perform or display, import, broadcast, transmit, distribute, license, offer to sell, and sell, rent, lease, or lend copies of such intellectual property (and derivative works

 

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thereof); and (iii) to sublicense to third parties the foregoing rights, including, without limitation, the right to sublicense to further third parties.

 

(d)                                 The terms of the assignment in this Section 12 as to any Invention may be subject to a separate assignment agreement between you and the Company. The existence of such an assignment agreement shall have no effect on the assignment pursuant to this letter agreement of any other Invention.

 

(e)                                  To the extent that any Invention qualifies as “work made for hire” as defined in 17 U.S.C. § 101 (1976), as amended, such Invention will constitute “work made for hire” and, as such, will be the exclusive property of the Company.

 

(f)                                   In the event of any dispute, arbitration, or litigation concerning whether an invention, discovery, improvement, or idea made or conceived by you is the property of the Company, such invention, discovery, improvement, or idea shall be presumed the property of the Company and you will bear the burden of establishing otherwise.

 

(g)                                  For purposes of this letter agreement, “Inventions” means any inventions, discoveries, improvements, and ideas, whether or not in writing or reduced to practice and whether or not patentable or copyrightable, made, authored, or conceived by you in connection with your employment with the Company or any other JC Company (including your employment under the Prior Agreements), whether by your individual efforts or in connection with the efforts of others.

 

(h)                                 You acknowledge and agree that the Company will suffer irreparable damage if you violate or threaten to violate the terms of this Section 12, and that such damage would be difficult to quantify, and it is therefore agreed that, in the event of a breach or threatened breach of this Section 12, the Company shall be entitled to injunctive relief, in addition to all other legal and equitable remedies available to it, without the necessity of posting a bond or other security.

 

13.                               You acknowledge and agree that: (a) the Company is the holding company of several businesses (including, without limitation, the carhaul business of Jack Cooper Transport Company, Inc. and its subsidiaries and the logistics business of Jack Cooper Logistics, LLC and its subsidiaries), and its primary operations are focused on the management of such businesses; (b) in your role as an executive officer of the Company you will have executive authority and responsibility over not just the Company and its business but also over the other JC Companies and their businesses; and (c) you have had (as an employee and/or officer of one or more JC Companies) and will continue to have (as an employee and/or officer of the Company and/or other JC Companies) access to private, proprietary, secret, or confidential documents and information of the Company and the other JC Companies. Because of these circumstances and in consideration for your continued employment hereunder, you acknowledge and agree that the restrictions contained in this letter agreement are necessary for the protection of the business and goodwill of the Company and the other JC Companies, that each of the restrictive covenants in this letter agreement is reasonable in time, scope of activities, geographic scope, and otherwise to protect the legitimate business interests and goodwill of the Company and the other JC

 

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Companies, and that any breach of the restrictive covenants in this letter agreement is likely to cause the Company and/or one or more of the other JC Companies substantial and irrevocable damage that is difficult to measure. Therefore, in the event of any such breach or threatened breach of this letter agreement, you agree that the Company and any other JC Company, in addition to such other remedies that may be available at law or in equity, shall have the right to seek specific performance of the provisions of this letter agreement and shall have the right to seek an injunction without posting a bond from a court restraining such a breach or threatened breach, and you hereby waive the adequacy of a remedy at law as a defense to such relief. You further agree that, if any restriction set forth in this letter agreement is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time, over too great a range of activities, or in too broad a geographic area, then it shall be interpreted to extend only over the maximum period of time, range of activities, or geographic area as to which it may be enforceable.

 

14.                               This letter agreement shall be governed by and construed in accordance with the laws of the state of Georgia, without giving effect to its choice of law provisions. Each party hereto irrevocably consents to the exclusive jurisdiction of the federal and state courts located in Fulton County, Georgia for all purposes in connection with any action or proceeding which arises out of or relates to this letter agreement. This letter agreement amends and restates all the Prior Agreements and constitutes the entire agreement between the parties hereto and supersedes all prior understandings, whether oral or written. This letter agreement may be executed in two or more counterparts and by facsimile or PDF, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The invalidity or unenforceability of any provision of this letter agreement shall not render invalid or unenforceable any other provision hereof. This letter agreement may not be modified or amended except by a writing duly executed and delivered by the parties hereto. Neither this letter agreement nor any of the rights, interests, or obligations hereunder shall be assigned, in whole or in part, by any party hereto without the prior written consent of the other party hereto.

 

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We are excited about your continued participation on the Company’s executive team and look forward to working with you in that role. Please accept this offer of continued employment by signing below and returning a sign copy to me at your earliest convenience.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
Jack Cooper Holdings Corp.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

ACCEPTED AND AGREED TO AS OF

THE EFFECTIVE DATE:

 

 

	
/s/ Theo A.   Ciupitu
    	
 
    	
 
    
	
Name: Theo A. Ciupitu
    	
 
    

 

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Exhibit A

 

Confidential Separation Agreement and General Release

 

This Confidential Separation Agreement and General Release (this “Agreement”) is made and entered into as of the          day of                 , 20        to be effective (subject to Section 14 (Revocation)) as of the Effective Date (as defined in Section 14 (Revocation)), by and between: (i)                      , its divisions, subdivisions, subsidiaries, parents, affiliates, benefits plans, successors, and assigns (hereinafter collectively referred to as the “Company”); and (ii)                      , an individual resident of the State of                       (hereinafter referred to as “Employee”).

 

WITNESSETH:

 

WHEREAS, Employee has been employed by the Company pursuant to that certain Offer of Employment Letter, dated                       (the “Offer Letter”);

 

WHEREAS, Employee’s employment with the Company has been terminated as of the Effective Date; and

 

WHEREAS, this Agreement sets forth the parties’ mutual understanding concerning the terms and conditions of the termination of Employee’s employment with the Company;

 

NOW, THEREFORE, in consideration of the premises, which are incorporated and made part of this Agreement, the covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Company and Employee agree as follows:

 

1.                                      Confidentiality. Employee agrees not to disclose the terms of this Agreement, to avoid direct or indirect references (whether by his actions or his words) to the terms of this Agreement, not to initiate discussions, correspondence, or other communications regarding the terms of this Agreement, and not to show this Agreement to, or discuss its contents with, any person other than his spouse, his attorneys, his accountants, the Internal Revenue Service, the taxing authority of any state to which Employee is obligated to report income information, or such other persons with whom Employee may otherwise be required by law to communicate concerning this Agreement’s contents. Employee understands and acknowledges that the foregoing is a material term of this Agreement.

 

2.                                      Separation Payments.

 

(a)                                 Subject to and conditioned upon the terms and conditions of this Agreement, the Company shall cause to be paid to Employee the following payments (the “Section 2 Payments”): [Describe payments to which Employee would be entitled based on Offer Letter and circumstances of termination.]

 

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(b)                                 Employee understands and acknowledges that the payment of the Section 2 Payments shall be reported on an IRS Form W-2 and shall be subject to all deductions and withholdings required by law.

 

(c)                                  Notwithstanding anything herein to the contrary, the Section 2 Payments are expressly subject to and conditioned upon Employee’s full and complete performance of all the conditions, agreements, and other obligations set forth in this Agreement. Should Employee breach or fail to adhere to any of the provisions of this Agreement, then the Company’s obligation to make any of the outstanding Section 2 Payments shall completely cease and be otherwise completely excused and the Company shall be entitled to pursue all other remedies at law or in equity.

 

(d)                                 Employee acknowledges and agrees that he would not have received the Section 2 Payments but for his execution of this Agreement and his full and complete performance of the provisions of this Agreement.

 

3.                                      Termination of Employment.

 

(a)                                 Employee and the Company agree that Employee’s termination of employment occurred effective as of the Effective Date.

 

(b)                                 Employee acknowledges and agrees that, except for the Section 2 Payments, he shall not receive any compensation, bonuses, benefits, or other consideration from the Company in connection with his employment or termination therefrom, and he waives all rights to such payments from the Company.

 

(c)                                  Employee agrees to waive any rights to reinstatement or to apply for reemployment with the Company (including, without limitation, any and all of its past, present, or future parent, subsidiary, or affiliated companies or divisions). Employee acknowledges and agrees that any application for reinstatement or future employment with the Company (including, without limitation, any and all of its past, present, or future parent, subsidiary, or affiliated companies or divisions) will be considered void from its inception, and may be summarily rejected by the Company without explanation or liability.

 

(d)                                 For the avoidance of doubt, the parties hereto acknowledge and agree that nothing in this Agreement (including, without limitation, Section 3(b) above and Section 5 (Release and Waiver of Claims) below) shall affect: (i) the terms and conditions or enforceability of that certain Amended and Restated Indemnification Agreement, dated May 19, 2014 and with a retroactive effective date of November 29, 2010, between Employee and Jack Cooper Holdings Corp., or similar indemnification rights in favor of Employee provided under any charters, bylaws, or other corporate governance documents; or (ii) the rights of Employee as a stockholder of any Releasee (as hereinafter defined), including, without limitation, any rights under any charters, bylaws, stockholders agreements, or other corporate governance documents affecting stockholders of Releasees.

 

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4.                              Protective Covenants. Employee hereby acknowledges that: (a) Employee has had access to proprietary documents and information regarding the Company’s customers, suppliers, services, methods of operation, sales, pricing, and the specialized business needs of the Company’s customers and suppliers, which documents and information are highly confidential; and (b) the Company’s relationships with its financing sources, customers, suppliers, and employees are among the Company’s most important assets and business interests. Because of this and in exchange for the consideration outlined herein, Employee acknowledges and agrees that Employee shall strictly observe and abide by the separate and independent restrictive covenants in the Offer Letter, including, without limitation, the covenants concerning non-compete, non-solicitation of customers, non-disclosure of Confidential Information (as defined in the Offer Letter), and assignment of inventions and ideas set forth in the Offer Letter.

 

5.                                      Release and Waiver of Claims.

 

(a)                                 Full Release and Waiver of All Claims. As a material inducement to the Company to enter into this Agreement, Employee, on behalf of himself and his affiliates and their respective shareholders, LLC members, successors, assignees, directors, officers, LLC managers, employees, agents, representatives, attorneys, beneficiaries, heirs, personal representatives, and fiduciaries (collectively, the “Releasors”),  hereby knowingly, voluntarily, irrevocably, unconditionally, and absolutely releases, waives, relinquishes, remises, acquits, and forever discharge the Company and each of the Company’s past, present, or future shareholders, LLC members, employees, representatives, attorneys, divisions, subdivisions, parent companies, subsidiaries, affiliates, agents, directors, officers, LLC managers, executives, predecessors, successors and assigns, and all persons acting by, through, under or in concert with any of them (collectively, the “Releasees”) or any of them individually, from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages, losses, actions, causes of action, suits, rights, demands, debts, costs, and expenses (including attorneys’ fees and legal expenses), of any nature whatsoever, whether known or unknown, absolute, accrued, contingent, or otherwise, which Releasors now have, have had, or may hereafter claim to have had against the Releasees by reason of any matter, act, omission, cause, or event that (i) has occurred up to the time of the Effective Date and (ii) relates to or arises from Employee’s employment with the Company or his separation therefrom (hereinafter collectively referred to as “Claim” or “Claims”).

 

Employee understands that this release and waiver includes, without limitation: (i) any and all Claims related or in any manner incidental to his employment with the Company and separation therefrom; (ii) any and all Claims and rights under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, 42 U.S.C. § 1981, the Americans with Disabilities Act, the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Family and Medical Leave Act, the Worker Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. §§ 2101 et seq., and any other federal, state, or local law, rule, or regulation relating to the employment relationship, each as amended; (iii) any and all Claims arising under the common law; (iv) any and all alleged breaches of duty arising out of any statute, contract, or tort, including, but not limited to, wrongful discharge or any action otherwise based on any policy or agreement; and (v) any and all possible or alleged Claims for back pay, bonuses, fringe or employee benefits, leaves of absence, interest, compensatory or punitive damages, salary, any other compensation,

 

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commissions, expenses, insurance, stock, stock options, or Claims arising out of any other terms and conditions of employment.

 

(b)                                 No Filed or Pending Claims. Employee represents and warrants that he has not filed and will not file any Claims against the Company or any other Releasee with any state, federal, or local agency or court based on any matter, act, omission, cause, or event that has occurred up to the Effective Date, nor does Employee have any pending request with the Company for leave, FMLA leave, or other benefit.

 

(c)                                  No Assignment of Claims; Indemnification. Employee represents and warrants that he has not assigned and will not assign to any other person, and that no other person is entitled to assert on his behalf, any above-referenced released Claims. Employee further agrees that, if any such assignment has occurred, he shall indemnify and hold harmless the Releasees from and against any and all Claims that arise out of such assignment.

 

6.                                      Covenant Not To Sue. Employee hereby covenants and agrees that he will not file or permit to be filed on his behalf any action, suit, or administrative proceeding, or take any other action that seeks, to pursue or enforce any Claim which he has released herein.

 

7.                                      Negotiated Agreement. This Agreement shall not be construed against any party on the grounds that such party drafted this Agreement. This Agreement shall be interpreted in accordance with the plain meaning of its terms, as though drafted equally by the parties, and not strictly for or against either of the parties hereto.

 

8.                                      Survival of Security and Confidentiality Agreements. Notwithstanding anything herein to the contrary and in addition to any agreements that Employee has signed with the Company concerning secrecy, security, new products, ideas, inventions, and confidential data (including, without limitation, the Offer Letter), which agreements shall remain in full force and effect and shall survive this Agreement, Employee agrees to return immediately to the Company and shall not take, copy, use, or reveal to any person in any form or manner, any documents or information which the Company deems confidential or proprietary, including, but not limited to, lists of customers or potential customers, financial information, business practices, business and strategic plans, and other similar confidential materials or information.

 

9.                                      Non-Admission of Liability. This Agreement shall not be deemed in any manner an admission, finding, or indication for any purpose whatsoever that the Company has acted contrary to law or violated the rights of Employee or any other person at any time. Further, this Agreement shall not be construed in any manner as an admission by the Company that it is violating any law, policy, or procedure, or acted wrongfully with respect to Employee or any other person, or that Employee has any rights whatsoever against the Company. Employee acknowledges that the Company specifically disclaims any liability to him arising from his employment relationship with the Company.

 

10.                               Offset. Employee authorizes the Company to offset from the Section 2 Payments any amount(s) otherwise payable to him under this Agreement or otherwise, any amount(s) of any loans or advances not repaid by him, the replacement cost (as of the date of replacement) of

 

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any Company property not returned by him, and any amount of any other debt or obligation owed by him to the Company.

 

11.                               Severability. Should any agreement provision (or subpart thereof) be declared or be determined by any court of competent jurisdiction to be wholly or partially illegal, invalid, or unenforceable, such provision (or subpart thereof) shall be severed from the remaining provisions (or subparts thereof), with any illegal or unenforceable provision (or subpart thereof) not affecting the remainder of this agreement, which shall continue at all times to be valid and enforceable.

 

12.                               Governing Law. This Agreement shall be interpreted, enforced, and governed under the laws of the State of Georgia, without giving effect to its choice of law provisions.

 

13.                               Modification; Non-Waiver. The terms of this Agreement may not be amended, modified, cancelled, terminated, or waived except by a written instrument executed by Employee and the Company, or in the case of waiver, the party to be charged with such waiver. The failure of the Company to insist upon or enforce strict performance of any provision of this Agreement or to exercise any right or remedies will not be construed as a waiver by the Company to assert or rely upon such provision, right, or remedy in that or any other instance.

 

14.                               Revocation. Employee acknowledges and agrees that he has had twenty-one (21) calendar days from the date of receipt of this Agreement to sign and accept it. The parties agree this Agreement shall not be effective until the expiration of seven (7) calendar days after it is executed by Employee if Employee has not revoked his acceptance hereof, and during that seven (7) day period Employee may revoke his acceptance of this Agreement. If Employee chooses to revoke his acceptance of this Agreement, he must so notify the Company in writing, marked “Personal and Confidential,” delivered to the Chief Executive Officer and the General Counsel at                             , no later than seven (7) calendar days after he signs this Agreement. Employee acknowledges and agrees that, if not revoked, this Agreement shall become final and binding upon expiration of said seven (7) calendar day period and the “Effective Date” of this Agreement shall be the first day following said seven (7) day period (for example, if Employee executes this Agreement on August 1, 2015, and does not revoke his acceptance, the Effective Date will be August 8, 2015).

 

15.                               Employee Assurances.

 

(a)                                 EMPLOYEE AFFIRMS THAT HE HAS CAREFULLY READ THIS ENTIRE AGREEMENT. HE ATTESTS THAT HE POSSESSES SUFFICIENT EDUCATION AND/OR EXPERIENCE TO FULLY UNDERSTAND THE EXTENT AND IMPACT OF ITS PROVISIONS.

 

(b)                                 EMPLOYEE ATTESTS THAT HE HAS BEEN AFFORDED THE OPPORTUNITY TO CONSIDER THIS AGREEMENT FOR A PERIOD OF TWENTY-ONE (21) DAYS. EMPLOYEE FURTHER ATTESTS THAT HE HAS BEEN ADVISED TO DISCUSS THIS AGREEMENT WITH AN ATTORNEY OF HIS CHOICE.

 

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(c)                                  EMPLOYEE AFFIRMS THAT HE IS FULLY COMPETENT TO EXECUTE THIS AGREEMENT, AND THAT HE DOES SO VOLUNTARILY AND WITHOUT ANY COERCION, UNDUE INFLUENCE, THREAT, OR INTIMIDATION OR ANY KIND OR TYPE.

 

16.                               Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute together one and the same Agreement. Facsimile copies and photocopies of signatures shall be accepted as originals.

 

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[Signature Page to Confidential Separation Agreement and General Release]

 

IN WITNESS WHEREOF, the undersigned parties have executed this Agreement as a sealed instrument to be effective as of the Effective Date.

 

 

	
 
    	
EMPLOYEE:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Date:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

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