Document:

ex10-1.htm

EXHIBIT 10.1

 

 

AGREEMENT FOR PURCHASE AND SALE

This Agreement is entered into this 13th day of March, 2014, by and between PIQUA PETRO, INC., a Kansas corporation, (“Seller”) and ARMADA MIDCONTINENT, LLC, or its assigns (“Buyer”).

1)           SALE AND PURCHASE:  For and in consideration of the mutual benefits to be derived herefrom, and subject to the terms and conditions hereinafter set forth, Seller shall sell, transfer, convey and deliver to Buyer at closing, and Buyer shall purchase and acquire at closing all interest and estate of Seller in, to and under the oil and gas leases set forth in Exhibit “A” attached hereto and incorporated herein by reference(collectively referred to as the “Leases”) as well as copies of any and all materials, well files, agreements, documents, production records, development plans, title opinions, rental receipts, maps or other information held or prepared by Seller or on behalf of Seller by third parties employed by Seller which relate or pertain to the Leases, the lands covered by the Leases or the wells and equipment located thereon (collectively, the “Additional Property”).

 

2)           SELLER’S INTEREST:  Seller covenants and warrants that at the closing it will execute and deliver a recordable assignment and bill of sale to convey to Buyer 100% of the leasehold working interest in the lands covered by the Leases, subject to royalties, overriding royalties and other expense-free burdens on production which, as to each Lease, do not exceed 12.5% of 8/8ths, such that the net revenue interest in the Leases conveyed to Buyer shall not be less than 87.5%, together with the Additional Property.  There may exist other owners of the working interest and it shall be Seller’s responsibility to obtain assignments of these interests to convey the entire working interest to the Buyer.

3)           PURCHASE PRICE:  The purchase price for the above described leases shall be SIX MILLION FIVE HUNDRED THOUSAND DOLLARS ($6,500,000.00) (the “Purchase Price”) for the Leases.  The parties agree to allocate the purchase price as set forth in Exhibit “B” attached hereto and incorporated herein by reference. At the time of signing of this Agreement, Buyer shall deposit $100,000.00 as earnest money to be held in the trust account of Mark T. Lair, Attorney at Law, Chanute, Kansas.  The balance of the purchase price in the amount of six million four hundred thousand dollars ($6,400,000.00) shall be due in full at closing.

4)           CLOSING:  The parties shall use their best efforts to close the transaction contemplated by this Agreement on or before April 3, 2014.  The closing shall take place at a location and on a date and at a time to be mutually agreed upon by the parties.

5)           CONTINUED OPERATION:  Seller agrees to operate, maintain and produce the Leases until the date of closing in the same manner in which they have been operated, maintained and produced prior to the execution of this Agreement, and consistent with operating practices utilized on oil and gas leases in Southeast Kansas.  At closing, Seller shall have a statement of the operating costs for the Leases on and subsequent to March 1, 2014 (the “Effective Date”) through date of closing.  The parties acknowledge that some operating costs (such as utilities) may have to be estimated using the previous months costs to determine the estimated amount.  This statement shall be part of the adjustments covered in paragraph 10 below.

6)           DUE DILIGENCE:  Upon Seller’s written acceptance of this Agreement, Buyer and its attorneys, employees and consultants shall be entitled to examine and copy (at Buyer’s expense) Seller’s records pertaining to the Leases, including but not limited to all lease files, operating agreements, deeds and documents of title and all other property records, all accounting, geological, geophysical and other records, and all other documents relating to the Leases.  Buyer, at its sole risk and expense, shall also have access to the Wells and the right to observe operations and to inspect any and all equipment, improvements and fixtures related to the Leases.

 

  

  

  

 

7)           CONFIDENTIALITY:  Buyer agrees that all information obtained from the examination of Seller’s files and records shall remain confidential.  In the event the transactions contemplated by this Agreement are not closed, Buyer will return to Seller all copies of such files and all other information relating to the Leases obtained pursuant to this Agreement, except as to that information obtained from records available to the public.

8)           TITLES:  Buyer shall, at its sole expense, conduct such examination of title as it sees fit and shall notify Seller in writing, five days prior to closing, of any title defect which would cause Seller’s title to be unmerchantable.  Failing such notice, Buyer will be deemed to have approved title.  In the event Buyer notifies Seller of such defects, Seller may attempt to cure same.  In the event of a material title defect which renders all or a portion of title to the Leases unmerchantable and which Seller elects not to cure, the parties shall use reasonable efforts to agree on an adjustment of the Purchase Price.  In the event the parties are unable to reach such an agreement, Buyer or Seller may terminate this Agreement by giving written notice to the other party on or before closing.  As used herein, “merchantable” shall mean the quiet and peaceful enjoyment of an interest in the Leases which is fairly deducible of record, and free from reasonable doubt, to the end that a prudent operator engaged in the business of owning, exploring, developing, operating and producing oil and gas properties with knowledge of the facts and the legal effect thereof would accept same.  If this Agreement does not close as the result of defects in title, the earnest money shall be returned to Buyer.

9)           ENVIRONMENTAL:  If, as a result of Buyer’s inspection of the wells, lands and equipment, Buyer objects to the condition of the Leases because of environmental concerns (“Environment Defects”), Buyer shall notify Seller of the same on or before ten days prior to closing, or such Environmental Defects shall be deemed to have been waived.  In the event Buyer notifies Seller of such Environmental Defects, Seller may attempt to cure the same.  In the event Seller elects not to cure the same or in the event any such Environmental Defect is not curable, the parties shall use reasonable efforts to reach an agreement to appropriately adjust the purchase Price due to such Environmental Defects; in the event the parties are unable to reach such an agreement, Buyer or Seller may terminate this Agreement by giving written notice to the other party on or before closing.  If this Agreement does not close as the result of Environmental Defects, the earnest money shall be returned to Buyer.

10)           ADJUSTMENTS:  Oil, gas and other production sold from or attributable to the Leases prior to March 1, 2014 shall belong to Seller.  Oil gas and other production sold from or attributable to the Leases on and subsequent to March 1, 2014 shall belong to Buyer.  At closing the following shall occur:

	
(a)  

	
Seller shall contact the crude oil purchaser, Kelly Maclaskey Oilfield Services, Inc. and notify them that the subject Leases have been sold and that the Buyer shall have the right to payment for all production sold on and subsequent to March 1, 2014.  The crude oil purchaser shall be instructed to place in suspense all pending payments for said production pending submission of division orders from the Buyer after which payment shall be made from the suspense account from the crude oil purchaser to the Buyer.

	
(b)  

	
A cash adjustment shall be made on the closing statement crediting Seller for its operating costs for the Leases on and subsequent to March 1, 2014 through date of closing.

	
(c)  

	
A cash adjustment shall be made on the closing statement crediting Buyer for the amount of any production revenue received by Seller for production from and after March 1, 2014.

 

  

  

  

 

	
(d)  

	
A cash adjustment shall be made on the closing statement crediting Buyer for the proration of property taxes as further described in paragraph 13.

After the closing, the parties will cooperate to determine any additional adjustments to revenue and expenses that are not made at the closing.  All amounts owed by one party to the other shall be paid promptly after any additional adjustments are finalized.

11)           WARRANTIES:  Buyer shall accept the personal property and equipment located on the Leases in its “AS IS, WHERE IS” condition.  Title to the Leases shall be conveyed without warranty of title, either express or implied, except as to claims arising by, through or under Seller.  At closing, the Leases assigned by Seller to Buyer will constitute not less than 100% of the leasehold working interest in the lands covered by the Leases, representing a collective net revenue interest in production from those lands of not less than 87.5% of 8/8ths.

12)           INDEMNIFICATION:  Buyer shall protect, defend, indemnify and hold Seller harmless from the payment of any judgments, claims, costs, expenses and liabilities (“Damages”), whether direct, contingent or otherwise, assessed against Seller which are payable with respect to the ownership or operation of the Leases from and after the Effective Date.  Seller shall protect, defend, indemnify and hold Buyer harmless from the payment of any and all Damages assessed against Buyer or Seller which are payable with respect to the ownership or operation of the Leases prior to the Effective Date.

13)           TAXES:  Seller warrants that all ad valorem taxes for the year 2013 and all prior years has been paid, ad valorem taxes based upon 2013 production and personal property taxes, if any, and gross production and similar taxes shall be prorated for the year 2014 as of the Closing Date.  If any such taxes are not due at closing, Buyer will thereafter be responsible for payment of same and will invoice Seller for its pro rata share, providing supporting documentation therefore, and such pro rata share shall be due upon receipt of such billing.  Buyer will bear all applicable sales or similar taxes imposed by any state, county, municipal or other governmental entity as a result of this sale.

14)           REPRESENTATIONS AND OTHER WARRANTIES:  The parties represent and warrant to each other as applicable that, as of the Closing Date:

(a)           This Agreement constitutes a legal, valid and binding obligation of Buyer and Seller, enforceable against each in accordance with its terms.

(b)           Seller owns the Leases and the personal property and equipment located on the Leases, and has the full power and right to sell and convey the same, and Buyer has the full power and right to acquire and operate the same, all pursuant to the terms and conditions of this Agreement.

(c)           At closing the Leases will be free and clear of any liens, mortgages, security interests or other similar encumbrances and all operating costs and expenses have been timely paid.

(d)           To the best of Seller’s knowledge, all rentals, royalties and other payments due under the Leases for periods prior to the Effective Date have been fully and promptly paid or will be paid prior to or commensurate with closing..

(e)           There are no claims (including claims for taxes), demands, suits, actions, arbitrations or governmental investigations or proceedings pending or threatened against either Seller or the Leases which would affect Buyer’s ownership or operation of the Leases.

 

  

  

  

 

(f)           All permits, licenses, orders and approvals of all federal, state and local governments or regulatory bodies required for the operation of the Leases as presently conducted have been obtained; all such permits, licenses, orders and approvals are in full force and effect and no suspension or cancellation of any of them is threatened or pending; and none of such permits, licenses, orders or approvals will be affected by the consummation of this Agreement except as any of the same may need to be transferred to Buyer.

(g)           Neither party has incurred any obligation or liability, contingent or otherwise, with respect to any broker’s or finder’s fee or commission related to this transaction for which the other party shall have any responsibility.

If, on or before closing, it is discovered that either party is in default under any of the above representations and warranties applicable to it, the defaulting party shall use reasonable efforts to cure the same before closing, but if it is unable to do so, then the parties shall use reasonable efforts to adjust the Purchase Price on an equitable basis due such default.  If the parties are unable to agree as to such adjustment on or before closing, then the party not in default may terminate this Agreement by giving written notice to the other on or before the Closing Date and if this Agreement is terminated, the earnest money shall be returned to Buyer.

15)           SURVIVAL AND FURTHER ACTION:  The terms and conditions of this Agreement and the representations and warranties contained herein (except those as to which a default may have been discovered prior to closing and for which an adjustment in the Purchase Price has been made) shall survive the closing.  The parties agree to execute such further documents or take such further actions after the Closing Date which may be necessary in order to effectuate the transactions contemplated hereunder.

16)           PUBLIC COMPANY MATTERS:  Seller acknowledges that Buyer, or its parent company, is a public company.  Accordingly, the negotiations and agreements related hereto constitute material non-public information and are not to be shared with disinterested parties until such time as Buyer or its public parent has made the information public.

17)           ASSIGNMENT:  Seller shall have the right to assign or direct payment as provided hereunder to a financial intermediary to facilitate a deferred exchange of like kind property pursuant to Section 1031 of the Internal Revenue Code.

18)           BINDING EFFECT:  Upon execution hereof, this Agreement shall be binding on the parties hereto, their respective heirs, devisees, personal representatives, successors and assigns.

19)           COUNTERPARTS:  This Agreement may be executed by Seller and Buyer in counterparts, each of which shall be deemed to be an original and all of which shall be deemed to constitute one Agreement.

20)           DEFAULT:  Time is of the essence of this Agreement.  In the event either party fails to comply with any of the terms of this Agreement, then this Agreement shall, at the option of the nondefaulting party, be terminated.  If Buyer is the defaulting party, Seller shall be entitled to retain the earnest money deposit as liquidated damages as its sole remedy; if Seller is the defaulting party, Buyer shall be entitled to require specific performance of this Agreement, or accept the return of the earnest money deposit as its sole remedy.

21)           GOVERNING LAW:  This Agreement shall be governed, construed and enforced under the laws of the State of Kansas.

 

  

  

  

 

IN WITNESS WHEREOF, this Agreement for Purchase and Sale has been executed this 13th day of March, 2014.

SELLER:                                                                                                                     BUYER:

PIQUA, PETRO, INC.                                                                                              ARMADA MIDCONTINENT, LLC

By:      /s/Monica A. Lair                                                                                         By:       /s/ Randy M. Griffin                            

Monica A. Lair, President                                                                                       Randy M. Griffin, CEO

STATE OF KANSAS, COUNTY OF NEOSHO, SS:

BE IT REMEMBERED, that on this ______ day of ______________, 2014, before me, the undersigned, a Notary Public in and for the said county and state, came Gregory D. Lair, President of Piqua Petro, Inc., to me personally known to be the same person who executed the foregoing instrument, and he duly acknowledged the execution of the same.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year last above written.

 

______________________________

Notary Public

My appointment expires:

STATE OF TEXAS, COUNTY OF DALLAS, SS:

BE IT REMEMBERED, that on this 13th day of March, 2014, before me, the undersigned, a Notary Public in and for the said county and state, came Randy M. Griffin, CEO of Armada Midcontinent, LLC, to me personally known to be the same person who executed the foregoing instrument, and he duly acknowledged the execution of the same.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year last above written.

______________________________

Notary Public

My appointment expires:

  

  

  

EXHIBIT “A”

1.           The Wingrave Lease

	
A.  

	
An Oil and Gas Lease dated September 1, 1953 from John F. Wingrave and Hazel B. Wingrave, his wife, to E.O. Lynn, recorded in Book 25 at Page 319 in the office of the Register of Deeds of Woodson County, Kansas, covering the following described real estate:

The Northeast Quarter (NE/4) of Section 17, Township 24 South, Range 16 East; and the Northwest Quarter (NW/4) and the North Half of the Southwest Quarter (N/2 SW/4), and the Southwest Quarter of the Southwest Quarter (SW/4 SW/4) and the North Half of the Southeast Quarter (N/2 SE/4) and the Southeast Quarter of the Southeast Quarter (SE/4 SE/4), of Section 16, Township 24 South, Range 16 East, Woodson County, Kansas.

	
B.  

	
An Oil and Gas Lease dated April 20, 1990 from Louise Sandlin to H&G Pulling Co. Inc. recorded in Book 70 at Page 546 in the office of the Register of Deeds of Woodson County, Kansas, covering the following described real estate:

The Northwest Quarter of the Southeast Quarter (NW/4 SE/4) of Section 16, Township 24 South, Range 16 East, Woodson County, Kansas.

	
C.  

	
An Oil and Gas Lease dated June 18, 1977 from John F. Wingrave a/k/a J.F. Wingrave and Hazel B. Wingrave, husband and wife to H&G Pulling and Rotary Drilling Co., recorded in Book 46 at Page 716 in the office of the Register of Deeds of Woodson County, Kansas, covering the following described real estate:

The South Half of the Northeast Quarter (S/2 NE/4) of Section 16, Township 24 South, Range 16 East, Woodson County, Kansas.

2.           The Karmann Lease

An Oil and Gas Lease dated September 18, 2009, from Erik Shane Karmann as lessor, to JT Operations as lessee, recorded in Book S91 at Page 225 in the office of the Register of Deeds of Woodson County, Kansas, covering the following real estate:

The Northwest Quarter (NW/4) of Section Twenty-one (21), Township Twenty-four (24), Range Sixteen (16) and containing 160 acres more or less.

3.           The Light Lease

An Oil and Gas Lease dated February 15, 1977, from Freda A. Light, et al, to Beryl Ashlock, recorded in Book 46 of Leases at Page 662 in the office of the Register of Deeds of Woodson County, Kansas, covering the following described real estate:  The South Half of the Northeast Quarter (S/2 NE/4) of Section 1, Township 24, Range 14.

4.           The Stockebrand Lease

An Oil and Gas Lease dated February 15, 1977, from Norma J. Wimmer, et al, to Beryl Ashlock, recorded in Book 46 of Leases at Page 660 in the office of the Register of Deeds of Woodson County, Kansas, covering the following described real estate:  The Northwest Quarter (NW/4) of Section 1, Township 24, Range 14.EX-10.1

 Exhibit 10.1 

PERFORMANCE-BASED RESTRICTED STOCK UNIT AWARD AGREEMENT UNDER THE XPO LOGISTICS, INC. AMENDED AND RESTATED 2011 OMNIBUS
INCENTIVE COMPENSATION PLAN, dated as of             , 201     between XPO LOGISTICS, INC., a Delaware corporation (the “Company”), and [name]. 

This Performance-Based Restricted Stock Unit Award Agreement (this “Award Agreement”) sets forth the terms and conditions of
a target award of [            ] performance-based restricted stock units (this “Award”) that are subject to the terms and conditions specified herein (each such restricted
stock unit, an “RSU”) and that are granted to you under the XPO Logistics, Inc. Amended and Restated 2011 Omnibus Incentive Compensation Plan (the “Plan”). This Award provides you with the opportunity to earn,
subject to the terms of this Award Agreement, shares of the Company’s Common Stock, $0.001 par value (“Share”), or cash, as set forth in Section 3 this Award Agreement. 

THIS AWARD IS SUBJECT TO ALL TERMS AND CONDITIONS OF THE PLAN AND THIS AWARD AGREEMENT, INCLUDING THE DISPUTE RESOLUTION PROVISIONS SET FORTH
IN SECTION 10 OF THIS AWARD AGREEMENT. BY SIGNING YOUR NAME BELOW, YOU SHALL HAVE CONFIRMED YOUR ACCEPTANCE OF THE TERMS AND CONDITIONS OF THIS AWARD AGREEMENT. 

SECTION 1. The Plan. This Award is made pursuant to the Plan, all the terms of which are hereby incorporated in this Award Agreement,
including the provisions of Section 6(e) of the Plan. In the event of any conflict between the terms of the Plan and the terms of this Award Agreement, the terms of the Plan shall govern. 

SECTION 2. Definitions. Capitalized terms used in this Award Agreement that are not defined in this Award Agreement have the meanings
as used or defined in the Plan. As used in this Award Agreement, the following terms have the meanings set forth below: 
 Notwithstanding
anything in your Employment Agreement, if any, to the contrary, solely with respect to this Award, “Cause” means: (i) your dereliction of duties or gross negligence or failure to perform your duties or refusal to follow any
lawful directive of the officer to whom you report; (ii) your abuse of or dependency on alcohol or drugs (illicit or otherwise) that adversely affects your performance of duties for the Company; (iii) your commission of any fraud,
embezzlement, theft or dishonesty, or any deliberate misappropriation of money or other assets of the Company; (iv) your breach of any fiduciary duties to the Company; (v) any act, or failure to act, by you in bad faith to the detriment of
the Company; (vi) your failure to cooperate in good faith with a governmental or internal investigation of the Company or any of its directors, managers, officers or employees, if the Company requests your cooperation; (vii) your failure
to follow Company policies, including the Company’s code of conduct and/or ethics policy, as may be in effect from time to time, and (viii) your conviction of, or plea of nolo contendere to, a felony or any serious crime; provided that in
cases where cure is possible, you shall first be provided a 15-day cure period. Notwithstanding anything in your Employment Agreement, if any, to the contrary, solely with respect to the grant of this Award, the cessation of your employment shall
not be deemed to be for Cause unless and until there shall have been delivered to you a copy of a resolution duly adopted by the affirmative vote of 

 
not less than a majority of the Board (excluding you, if you are a member of the Board) after reasonable notice is provided to you and you are given an opportunity, together your counsel, to be
heard before the Board), finding that, in the sole discretion of the Board, you are guilty of the conduct described in any of clause (i) through (viii) of this definition. 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Determination Date” means the date the Committee determines that the Performance Goal has been met, which shall occur as
soon as reasonably practicable following the Performance Goal being met, but in no event later than April 30, 2018. 

“Employment Agreement” means any individual employment agreement between you and the Company or any of its Subsidiaries. 

Notwithstanding anything in your Employment Agreement, if any, to the contrary, solely with respect to this Award, “Good
Reason” means: (i) the Company materially breaches the terms of this Award Agreement; or (ii) any reduction in your base salary; provided that the Company shall first be provided with a 30-day cure period following receipt
of written notice from you to the Board setting forth in reasonable detail the specific conduct of the Company that is alleged to constitute Good Reason, to cease, and to cure, any conduct specified in such written notice; provided, further,
that such notice shall be provided to the Board within 45 days of the occurrence of the conduct alleged to constitute Good Reason and if, at the end of the cure period, the circumstance alleged to constitute Good Reason has not been remedied, you
will be entitled to terminate your employment for Good Reason during the 30-day period that follows the end of the cure period. If you do not terminate employment during such 30-day period, you will not be permitted to terminate your employment for
Good Reason as a result of such event or condition. If the Company disputes the existence of Good Reason, you will have the burden of proof to establish that Good Reason does exist or that the circumstances that gave rise to Good Reason have not
been cured. For the avoidance of doubt, a change in your title or the person to whom you report shall not constitute Good Reason for purposes of this Award Agreement including without limitation pursuant to clause (i) of this definition. 

“Performance Evaluation Period” has the meaning set forth on Exhibit A attached hereto. 

“Performance Goal” means the goal set forth on Exhibit A attached hereto, the achievement of which determines whether
the RSUs subject to this Award Agreement shall be earned. 
 “Section 409A” means Section 409A of the Code, and the
regulations and other interpretive guidance promulgated thereunder, as in effect from time to time. 
 “Settlement Date”
means the tenth (10th) day following the earliest of (i) the Vesting Date; (ii) the date of your termination of employment due to death or (iii) a Change of Control. 

“Vesting Date” means the date on which both the Performance Goal and service requirement set forth in Section 3(a) of
this Award Agreement are met. 

  
 2 

 SECTION 3. Vesting and Settlement. 

(a) Service-Based Vesting. Except as otherwise provided in this Award Agreement, subject to your continued employment through the
Determination Date and the achievement of the Performance Goal, you shall vest in the RSUs subject to this Award Agreement. 
 (b)
Performance-Based Vesting. Promptly following achievement of the Performance Goal, but in no event later than the Determination Date, the Committee shall determine whether the Performance Goal has been attained and shall provide notice to you
of such determination as soon as reasonably practicable following such determination in accordance with Section 11 of this Award Agreement. Except as otherwise determined by the Committee in its sole discretion, which shall be subject to
Section 6(e) of the Plan or as provided in Section 4 of this Award Agreement, the delivery of Shares or cash with respect to the RSUs is contingent on the Committee determining and certifying that the Performance Goal has been attained.

 (c) Change of Control. Notwithstanding any provisions of this Section 3, in the event of a Change of Control, all outstanding
RSUs granted under this Agreement shall immediately vest in full. 
 (d) Death/Termination without Cause/Resignation for Good Reason.
Notwithstanding anything to the contrary in this Award Agreement or the Plan to the contrary, (i) if your employment terminates by reason of your death, all outstanding RSUs shall immediately vest in full; (ii) if your employment is
terminated by the Company without Cause or you resign for Good Reason after April 2, 2018, you shall remain eligible to vest in the RSUs on the Determination Date subject to the achievement of the Performance Goal as determined in accordance
with Section 3(b); and (iii) if your employment is terminated by the Company without Cause or you resign for Good Reason prior to April 2, 2018, you will vest in a number of RSUs equal to the product of (x) the number of RSUs
granted under this Award Agreement and (y) a fraction, the numerator of which is the number of days from the date on which the RSUs were granted through the date of termination of your employment and the denominator of which is the number of
days from the date of grant through April 2, 2018. Notwithstanding anything in the Plan, this Award Agreement or your Employment Agreement to the contrary, any determination of whether Cause or Good Reason exists shall not be effective unless a
majority of the Board of Directors so determines pursuant to a written resolution. 
 (e) Settlement of RSU Award. On the Settlement
Date, the Company shall deliver to you or your legal representative either (i) one Share or (ii) a cash payment equal to the Fair Market Value determined as of the Settlement Date of one Share, in each case, for each RSU that has vested in
accordance with the terms of this Award Agreement; provided that, the Company shall have sole discretion to determine whether to settle such RSUs in Shares, cash or a combination thereof. 

SECTION 4. Forfeiture of RSUs. If you breach any restrictive covenant (which, for the avoidance of doubt, includes any non-compete,
non-solicit, non-disparagement or confidentiality provisions) contained in any arrangements with the Company (including your 

  
 3 

 
Employment Agreement and the confidentiality covenant contained in Section 10(c) hereof) to which you are subject or engage in fraud or willful misconduct that contributes materially to any
financial restatement or material loss to the Company or any of its Subsidiaries, your rights with respect to such RSUs shall immediately terminate, and you shall be entitled to no further payments or benefits with respect thereto and, if the RSUs
are vested and/or settled, the Company may require you to forfeit or remit to the Company any amount payable, or the after-tax net amount paid or received by you, in respect of any RSUs; provided, however, that (i) the Company shall make such
demand that you forfeit or remit any such amount no later than six months after learning of the conduct described in this Section 4 and (ii) in cases where cure is possible, you shall first be provided a 15-day cure period to cease, and to
cure, such conduct. 
 SECTION 5. No Rights as a Stockholder. You shall not have any rights or privileges of a stockholder with
respect to the RSUs subject to this Award Agreement unless and until certificates representing Shares are actually issued and delivered to you or your legal representative in settlement of this Award. 

SECTION 6. Non-Transferability of RSUs. Unless otherwise provided by the Committee in its discretion, RSUs may not be sold, assigned,
alienated, transferred, pledged, attached or otherwise encumbered except as provided in Section 9(a) of the Plan. Any purported sale, assignment, alienation, transfer, pledge, attachment or other encumbrance of RSUs in violation of the
provisions of this Section 6 and Section 9(a) of the Plan shall be void. 
 SECTION 7. Withholding, Consents and Legends.

 (a) Withholding. The delivery of Shares or cash pursuant to Section 3(c) or 3(d) of this Award Agreement, as the case may be,
is conditioned on satisfaction of any applicable withholding taxes in accordance with this Section 7(a) and Section 9(d) of the Plan. No later than the date as of which an amount first becomes includible in your gross income for Federal,
state, local or foreign income tax purposes with respect to any RSUs, you shall pay to the Company, or make arrangements satisfactory to the Company regarding the payment of, any Federal, state, local and foreign taxes that are required by
applicable laws and regulations to be withheld with respect to such amount. In the event that there is withholding tax liability in connection with the settlement of the RSUs, if authorized by the Committee in its sole discretion, you may satisfy,
in whole or in part, any withholding tax liability by having the Company withhold from the number of Shares or cash you would be entitled to receive upon settlement of the RSUs, an amount in cash or a number of Shares having a Fair Market Value
(which shall either have the meaning set forth in the Plan or shall have such other meaning as determined by the Company in accordance with applicable withholding requirements) equal to such withholding tax liability. 

(b) Consents. Your rights in respect of the RSUs are conditioned on the receipt to the full satisfaction of the Committee of any
required consents that the Committee may determine to be necessary or advisable (including your consent to the Company’s supplying to any third-party recordkeeper of the Plan such personal information as the Committee deems advisable to
administer the Plan). 

  
 4 

 (c) Legends. The Company may affix to certificates for Shares issued pursuant to this
Award Agreement any legend that the Committee determines to be necessary or advisable (including to reflect any restrictions to which you may be subject under any applicable securities laws). The Company may advise the transfer agent to place a stop
order against any legended Shares. 
 SECTION 8. Successors and Assigns of the Company. The terms and conditions of this Award
Agreement shall be binding upon and shall inure to the benefit of the Company and its successors and assigns. 
 SECTION 9. Committee
Discretion. The Compensation Committee of the Board shall have full and plenary discretion with respect to any actions to be taken or determinations to be made in connection with this Award Agreement, and its determinations shall be final,
binding and conclusive. 
 SECTION 10. Dispute Resolution. 

(a) Jurisdiction and Venue. Notwithstanding any provision in your Employment Agreement, you and the Company irrevocably submit to the
exclusive jurisdiction of (i) the United States District Court for the Southern District of New York and (ii) the courts of the State of New York for the purposes of any suit, action or other proceeding arising out of this Award Agreement
or the Plan. You and the Company agree to commence any such action, suit or proceeding either in the United States District Court for the Southern District of New York or, if such suit, action or other proceeding may not be brought in such court for
jurisdictional reasons, in the courts of the State of New York. You and the Company further agree that service of any process, summons, notice or document by U.S. registered mail to the other party’s address set forth below shall be effective
service of process for any action, suit or proceeding in New York with respect to any matters to which you have submitted to jurisdiction in this Section 10(a). You and the Company irrevocably and unconditionally waive any objection to the
laying of venue of any action, suit or proceeding arising out of this Award Agreement or the Plan in (A) the United States District Court for the Southern District of New York or (B) the courts of the State of New York, and hereby and
thereby further irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. 

(b) Waiver of Jury Trial. You and the Company hereby waive, to the fullest extent permitted by applicable law, any right either of you
may have to a trial by jury in respect to any litigation directly or indirectly arising out of, under or in connection with this Award Agreement or the Plan. 

(c) Confidentiality. You hereby agree to keep confidential the existence of, and any information concerning, a dispute described in
this Section 10, except that you may disclose information concerning such dispute to the court that is considering such dispute or to your legal counsel (provided that such counsel agrees not to disclose any such information other than as
necessary to the prosecution or defense of the dispute). 

  
 5 

 SECTION 11. Notice. All notices, requests, demands and other communications required or
permitted to be given under the terms of this Award Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand or overnight courier or three Business Days after they have been mailed by U.S. certified or
registered mail, return receipt requested, postage prepaid, addressed to the other party as set forth below: 
  

			
	If to the Company:	 	 XPO Logistics, Inc.
 Five Greenwich Office
Park
 Greenwich, CT 06831
 Attention: General
Counsel

		
	If to you:	 	To your address as most recently supplied to the Company and set forth in the Company’s records

 The parties may change the address to which notices under this Award Agreement shall be sent by providing written notice to
the other in the manner specified above. 
 SECTION 12. Governing Law. This Award Agreement shall be deemed to be made in the State
of Delaware, and the validity, construction and effect of this Award Agreement in all respects shall be determined in accordance with the laws of the State of Delaware, without giving effect to the conflict of law principles thereof. 

SECTION 13. Headings and Construction. Headings are given to the Sections and subsections of this Award Agreement solely as a
convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of this Award Agreement or any provision thereof. Whenever the words “include”,
“includes” or “including” are used in this Award Agreement, they shall be deemed to be followed by the words “but not limited to”. The term “or” is not exclusive. 

SECTION 14. Amendment of this Award Agreement. The Committee may waive any conditions or rights under, amend any terms of, or alter,
suspend, discontinue, cancel or terminate this Award Agreement prospectively or retroactively; provided, however, that, except as set forth in Section 15(d) of this Award Agreement, any such waiver, amendment, alteration,
suspension, discontinuance, cancelation or termination that would materially and adversely impair your rights under this Award Agreement shall not to that extent be effective without your consent (it being understood, notwithstanding the foregoing
proviso, that this Award Agreement and the RSUs shall be subject to the provisions of Section 7(c) of the Plan). 
 SECTION 15.
Section 409A. 
 (a) It is intended that the provisions of this Award Agreement comply with Section 409A, and all provisions of
this Award Agreement shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. 

(b) Neither you nor any of your creditors or beneficiaries shall have the right to subject any deferred compensation (within the meaning of
Section 409A) payable under this Award Agreement to any anticipation, alienation, sale, transfer, assignment, pledge, 

  
 6 

 
encumbrance, attachment or garnishment. Except as permitted under Section 409A, any deferred compensation (within the meaning of Section 409A) payable to you or for your benefit under
this Award Agreement may not be reduced by, or offset against, any amount owing by you to the Company or any of its Affiliates. 
 (c) If,
at the time of your separation from service (within the meaning of Section 409A), (i) you shall be a specified employee (within the meaning of Section 409A and using the identification methodology selected by the Company from time to
time) and (ii) the Company shall make a good faith determination that an amount payable hereunder constitutes deferred compensation (within the meaning of Section 409A) the payment of which is required to be delayed pursuant to the
six-month delay rule set forth in Section 409A in order to avoid taxes or penalties under Section 409A, then the Company shall not pay such amount on the otherwise scheduled payment date but shall instead pay it, without interest (except
as otherwise provided in your Employment Agreement), on the first business day after such six-month period. 
 (d) Notwithstanding any
provision of this Award Agreement to the contrary, in light of the uncertainty with respect to the proper application of Section 409A, the Company reserves the right to make amendments to this Award Agreement as the Company deems necessary or
desirable to avoid the imposition of taxes or penalties under Section 409A. In any case, you shall be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on you or for your account in connection
with this Award Agreement (including any taxes and penalties under Section 409A), and neither the Company nor any of its Affiliates shall have any obligation to indemnify or otherwise hold you harmless from any or all of such taxes or
penalties. 
 SECTION 16. Counterparts. This Award Agreement may be signed in counterparts, each of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same instrument. You and the Company hereby acknowledge and agree that signatures delivered by facsimile or electronic means (including by “pdf”) shall be deemed
effective for all purposes. 
 SECTION 17. [Section 280G. Notwithstanding anything in this Award Agreement or your Employment
Agreement [(including without limitation Section 5(g))] to the contrary and regardless of whether this Award Agreement has otherwise expired or terminated, in the event that any payments, distributions, benefits or entitlements of any type
payable to you (“CIC Benefits”) (i) constitute “parachute payments” within the meaning of Section 280G of the Code, and (ii) but for this paragraph would be subject to the excise tax imposed by
Section 4999 of the Code (the “Excise Tax”), then your CIC Benefits shall be reduced to such lesser amount (the “Reduced Amount”) that would result in no portion of such benefits being subject to the Excise
Tax; provided that such amounts shall not be so reduced if the Company determines, based on the advice of Golden Parachute Tax Solutions LLC, or such other nationally recognized certified public accounting firm as may be designated by the
Company (the “Accounting Firm”), that without such reduction you would be entitled to receive and retain, on a net after tax basis (including, without limitation, any excise taxes payable under Section 4999 of the Code), an
amount that is greater than the amount, on a net after tax basis, that you would be entitled to retain upon receipt of the Reduced Amount. Unless the Company and you otherwise agree in writing, any determination required under this Section 17
shall be made in writing in good faith 

  
 7 

 
by the Accounting Firm. In the event of a reduction of benefits hereunder, benefits shall be reduced by first reducing or eliminating the portion of the CIC Benefits that are payable under this
Award Agreement and then by reducing or eliminating the portion of the CIC Benefits that are payable in cash and then by reducing or eliminating the non-cash portion of the CIC Benefits, in each case, in reverse order beginning with payments or
benefits which are to be paid the furthest in the future. For purposes of making the calculations required by this Section 17, the Accounting Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on
reasonable, good faith interpretations concerning the application of the Code, and other applicable legal authority. The Company and you shall furnish to the Accounting Firm such information and documents as the Accounting Firm may reasonably
require in order to make a determination under this Section 17, and the Company shall bear the cost of all fees the Accounting Firm charges in connection with any calculations contemplated by this Section 17. In connection with making
determinations under this Section 17, the Accounting Firm shall take into account the value of any reasonable compensation for services to be rendered by you before or after the Change of Control, including any non-competition provisions that
may apply to you and the Company shall cooperate in the valuation of any such services, including any non-competition provisions.] 

SECTION 18. [ Lock-Up. Notwithstanding anything to the contrary in your Employment Agreement, the Plan or any Award Agreement under the
Plan, any Shares issued to you upon settlement or exercise, as applicable, of any RSUs or Options (whether before, on or after the date hereof), including without limitation the RSUs under this Award Agreement, shall be subject to a lock-up on
sales, offers, pledges, contracts to sell, grants of any option, right or warrant to purchase, or other transfers or dispositions, whether directly or indirectly, from the date hereof until September 2, 2016 (or, if earlier, upon your death or
a Change of Control) and all laws, rules and regulations applicable to you; provided, however, if determined by the Board in its sole discretion, the provisions of this Section 18 shall not apply to Shares withheld, sold or otherwise
transferred to the Company to cover the exercise price in connection with the exercise of any Options or to satisfy the applicable tax withholding in connection with the exercise or settlement, as applicable of any Options or RSUs.] 

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

 

							
	XPO LOGISTICS, INC.,
				
		 	by    	 		 	
		 		 	  

		 		 	Name:	 	
		 		 	Title:	 	
			
	[NAME]	 		 	
			
		 		 	  

  
 8 

 Exhibit A 

Performance Goal 
  

	 	•	 	The Performance Goal shall be achieved if (i) the price of a Share, as reported on the New York Stock Exchange or such other exchange upon which the Shares trade, trades at or above $60 for twenty consecutive
trading days during the Performance Evaluation Period and (ii) Adjusted Earnings Per Share of at least $2.50 is achieved with respect to fiscal year 2017. 

  

	 	•	 	“Adjusted Earnings Per Share” shall mean (i) net income available to common shareholders, including preferred interest holders, plus depreciation and amortization less capital expenditures divided by
(ii) diluted shares outstanding. 

  

	 	•	 	“Performance Evaluation Period” shall mean the period commencing on the date of grant of the RSUs and ending on April 2, 2018. 

  
 9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00228-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00228-of-00352.parquet"}]]