Document:

EX-10.1 MONITORING/MANAGEMENT SERVICES AGREEMENT

 

Exhibit 10.1

MONITORING AND MANAGEMENT SERVICES AGREEMENT

          THIS MONITORING AND MANAGEMENT SERVICES AGREEMENT (this “Agreement”) by and between
Yucaipa American Funds, LLC, a Delaware limited liability company (“Yucaipa”), and Allied
Systems Holdings, Inc., a Delaware corporation (the “Company”), is made and entered into as
of May 29, 2007.

          WHEREAS, on July 31, 2005 the Company and certain of its subsidiaries filed a voluntary
petition for relief under Chapter 11 of the Bankruptcy Code and on May 29, 2007 (the “Effective
Date”) the Company completed its restructuring pursuant to a Plan of Reorganization under which
affiliates of Yucaipa were issued common stock representing greater than 50% of the Company; and

          WHEREAS, the Company desires to retain Yucaipa to provide certain monitoring and management
services to the Company and Yucaipa is willing to provide such services on the terms set forth
below.

          NOW, THEREFORE, in consideration of the premises and the mutual covenants of the parties
hereto and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the undersigned parties agree as follows:

     Section 1. Services. Subject to the provisions of this Agreement, Yucaipa will
perform the following services for the Company to the extent requested by the Board of Directors of
the Company:

          (a) general monitoring and management services;

          (b) monitoring of certain financing functions, including assistance with the preparation of
financial projections and assistance with compliance with financing agreements;

          (c) identifying and developing growth strategies;

          (d) monitoring labor relations and certain human resource functions, including interfacing and
negotiating with various labor unions and assisting with the identification and hiring of
executives and directors;

          (e) subject to Section 5, assisting with identification, support, negotiation and
analysis of acquisitions or dispositions by the Company or its subsidiaries; and

          (f) subject to Section 5, assisting with support, negotiation and analysis of
financing alternatives, including in connection with acquisitions, capital expenditures,
refinancing of existing indebtedness and public or private debt or equity issuances.

The services listed above and in Section 3 may, at Yucaipa’s election, be performed by
Yucaipa, its affiliates and/or such employees, agents and other representatives of Yucaipa and/or
its affiliates as Yucaipa deems appropriate in its discretion to the furnishing of the services
required.

 

 

     Section 2. Annual Fee; Expense Reimbursement.

          (a) Annual Fees. Commencing on the date of this Agreement, the Company will pay to
Yucaipa an aggregate annual fee, in consideration of the services rendered pursuant to Sections
1(a) to (d) above, equal to $1,500,000 (the “Annual Fee”), which fee will be
comprised of a management fee equal to $750,000 and an unallocated expense reimbursement of
$750,000, which unallocated expense reimbursement will be in addition to the expense reimbursement
payable to Yucaipa pursuant to Section 2(b) below. One-twelfth (1/12th) of the Annual Fee
will be payable in advance on the first day of each calendar month; provided that a
prorated portion of such fee will be payable in advance on the date of this Agreement for the
partial month beginning on the date of this Agreement. The Annual Fee will be payable by the
Company whether or not the Company requests or utilizes Yucaipa to provide the services described
in Section 1 above. The Annual Fee will be fully earned when due and payable.

          (b) Reimbursement of Expenses. In addition to the Annual Fee, the Company will
reimburse Yucaipa for all documented out-of-pocket costs, expenses and fees incurred in connection
with the performance of its obligations under this Agreement, including, without limitation, travel
expenses and costs, fees and expenses paid to legal counsel, accountants, advisers, consultants,
subcontractors and other third parties. The Company will fully reimburse and pay Yucaipa for any
such costs, fees and expenses within 10 days after each request for reimbursement by Yucaipa.

     Section 3. Transaction Fees.

          (a) Future Transactions. The Company hereby grants Yucaipa a right of first refusal
to serve as a non-exclusive consultant and advisor in connection with any and each (i) sale,
merger, business combination, joint venture or otherwise, whether effected in a single transaction
or series of related transactions, in which 25% or more of the equity securities or voting power of
the Company or all or a substantial portion of the Company’s business or assets (on a consolidated
basis) are combined with or transferred to another person or entity (a “Sale Transaction”)
and (ii) financing transaction (including refinancings and securities offerings) involving greater
than $20,000,000 (a “Financing Transaction”). As a consultant or advisor, Yucaipa and/or
its affiliates and representatives will provide assistance with identification, support,
negotiation and analysis of the relevant transaction, but Yucaipa will not perform any service for
which it does not possess the requisite federal or state registrations, licenses or qualifications.
If Yucaipa agrees to serve as consultant or advisor with respect to any such transaction no
separate agreement will be required and the Company will (i) pay Yucaipa a cash fee in connection
with each such transaction equal to 1.0% of the Gross Transaction Value of such transaction and
(ii) reimburse Yucaipa for all documented out-of-pocket costs, expenses and fees incurred in
connection with each such transaction. The fees and expenses referenced in clause (i) above must
be paid by the Company concurrently with the closing of each such
transaction and the costs, fees and expenses referenced in clause (ii) above shall be paid by
the Company to Yucaipa within 10 days after any request for reimbursement by Yucaipa.

          (b) Gross Transaction Value. With respect to any Sale Transaction, “Gross
Transaction Value” means the total amount of cash and the fair market value on the date which
is five days prior to the consummation of the transaction (the “Valuation Date”) of all
other

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property paid or payable directly or indirectly to the Company, its subsidiaries or any of
their respective security holders in connection with a transaction (including (i) amounts paid to
holders of any warrants or convertible securities of the Company or its subsidiaries and to holders
of any options or stock appreciation rights issued by the Company or its subsidiaries, whether or
not vested; (ii) the total amount of indebtedness for borrowed money or similar non-trade
liabilities or obligations (including unfunded pension liabilities, guarantees, capitalized leases
and the like) of the Company or its subsidiaries repaid, retired, extinguished or assumed in
connection with, or which otherwise remains outstanding as of the closing of, a transaction; and
(iii) the fair market value of any assets of the Company or its subsidiaries (including working
capital items) which are retained by or otherwise distributed to their respective stockholders or
affiliates in anticipation of or in connection with a transaction). With respect to any Sale
Transaction, when calculating Gross Transaction Value, (1) all shares will be deemed transferred
where a transaction is effected by the transfer of shares (A) constituting 25% or more of the then
outstanding equity securities of or equity interest in the Company or its subsidiaries or
affiliates, or (B) possessing 25% or more of the then outstanding voting power of the outstanding
equity securities of or equity interest in the Company or its subsidiaries or affiliates, (2) the
value of any securities issuable in connection with a transaction (whether debt or equity) that
have an established public market (including any such securities subject to resale restrictions)
will be determined on the basis of the last closing price in such market on the Valuation Date; and
the value of securities that have no established public market or other property will be the fair
market value of such securities or other property on such Valuation Date as determined in good
faith and upon mutual agreement of the Company and Yucaipa, and (3) all present value calculations
will utilize a discount rate equal to the prime rate published in The Wall Street Journal on the
Valuation Date (the “Prime Rate”). In the event an agreement for a transaction provides
for escrowed or contingent payments or other payments over time, the present value of such payments
(discounted at the Prime Rate) shall be based upon projections developed in connection with the
proposed transaction, and Yucaipa’s fees in respect of such payments shall be calculated based upon
such present value and paid at the closing of such transaction. With respect to any transaction
that is solely a Financing Transaction, “Gross Transaction Value” means the total amount of
indebtedness of the Company or its subsidiaries issued, financed or refinanced or the fair market
value (determined consistent with sub-clause (2) above) on the date of issuance of any equity
securities issued.

     Section 4. Term of Agreement. The term of this Agreement will be for five years
beginning on May 29, 2007 and it will automatically be extended by 12 additional calendar months on
May 29, 2008, and every May 29th, thereafter, unless 180 days prior to May 29, 2008, or
180 days prior to any subsequent May 29th thereafter, the Company delivers to Yucaipa
written notice of its intention not to extend the term of this Agreement.

     Section 5. Termination.

          (a) Termination by the Company. The Company may elect to terminate this Agreement:

     (i) at any time following a determination of the Board of Directors of the
Company to effect such a termination by giving Yucaipa at least 180 days’ advance
written notice of such termination; or

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     (ii) if Yucaipa fails to reasonably perform any material covenant, agreement,
term or provision of this Agreement to be kept, observed or performed by it and such
failure continues for a period of 60 days after written notice thereof from the
Company, which notice must describe the alleged failure with particularity.

          (b) Termination by Yucaipa. Yucaipa may elect to terminate this Agreement:

     (i) if the Company fails to reasonably perform any material covenant,
agreement, term or provision of this Agreement to be kept, observed or performed by
it and such failure continues for a period of 60 days after written notice thereof
from Yucaipa, which notice must describe the alleged failure with particularity;

     (ii) immediately if the Company fails to pay or reimburse Yucaipa for any
amounts due under this Agreement within the time required by this Agreement;

     (iii) at any time upon giving the Company at least 180 days’ advance written
notice of such termination; or

     (iv) immediately upon the occurrence of any of the following events: (1) any
merger, consolidation, business combination, or similar transaction involving the
Company, (2) any sale, lease or other disposition directly or indirectly by merger,
consolidation, business combination, share exchange, joint venture, or otherwise of
assets of the Company or any of its subsidiaries representing 25% or more of the
consolidated assets of the Company and its subsidiaries, (3) any issuance, sale, or
other disposition of (including by way of merger, consolidation, business
combination, share exchange, joint venture, or any similar transaction) securities
(or options, rights or warrants to purchase, or securities convertible into or
exchangeable for such securities) representing 25% or more of the voting power of
the Company or (4) any transaction in which any person acquires “beneficial
ownership” (within the meaning of Rule 13d-3(a)(1) under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”)) or the right to acquire beneficial
ownership or any group (within the meaning of Section 13(d)(3) of the Exchange Act)
is formed which “beneficially owns” or has the right to acquire “beneficial
ownership” of 25% or more of the outstanding voting capital stock of the Company or
(5) any combination of the foregoing.

          (c) Payments upon Termination. In the event of any termination pursuant to
Section 5(a)(i), Section 5(b)(i), Section 5(b)(ii) or Section
5(b)(iv), the Company will pay, or cause to be paid, to Yucaipa a cash termination payment
equal to the total fees that would have been earned by Yucaipa under Section 2 hereof
during the remaining term of this Agreement as if the Agreement had not been terminated. Any such
cash termination payment will be due and payable to Yucaipa, in full, as of the date of such
termination. If the foregoing payments are determined to constitute liquidated damages, such
payments shall in all events be deemed reasonable.

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          (d) Effect of Termination. Upon any termination of this Agreement the obligations of
the parties hereunder shall also terminate, except (i) the Company will continue to be obligated to
make all payments required pursuant to Section 2(b), Section 3, and Section
5(c), (ii) if Yucaipa agrees to serve as a consultant or advisor pursuant to Section 3,
and within 12 months of the date of termination of this Agreement the Company enters into or
consummates a Sale Transaction or Financing Transaction, then on the date the Company enters into
or consummates each such transaction (whichever is earlier) the Company will pay Yucaipa a fee in
the amount contemplated by Section 3, and (iii) the provisions of Section 2(b), the
payment obligations under Section 3, Section 5, Section 6, Section
7 and Section 8 shall survive any such termination.

     Section 6. Indemnification.

          (a) The Company (the “Indemnifying Party”) will indemnify and hold harmless Yucaipa
and its affiliates, counsel and other advisors, and the respective partners, equityholders,
shareholders, members, directors, officers, fiduciaries, managers, controlling persons, employees
and agents of each of the foregoing (each an Indemnified Party” and collectively, the
“Indemnified Parties”), from and against all losses, claims or proceedings including
stockholder actions, damages, judgments, assessments, investigation costs, settlement costs, fines,
penalties, arbitration awards, other liabilities, costs, fees and expenses (collectively,
“Losses”) (i) related to or arising out of (A) oral or written information provided by the
Company, the Company’s employees or other agents, which either the Company or any Indemnified Party
provides to any persons, or (B) other action or failure to act by the Company, the Company’s
employees or other agents or any Indemnified Party at the Company’s request or with the Company’s
consent, or (ii) otherwise related to or arising out of any services provided by any Indemnified
Party under this Agreement or any transaction or conduct in connection therewith, provided
that this clause (ii) shall not apply if it is finally judicially determined by a court of
competent jurisdiction that such Losses arose solely out of the gross negligence or bad faith of
such Indemnified Party.

          (b) The Company shall further reimburse any Indemnified Party promptly for, or at the
Indemnified Party’s option advance amounts sufficient to cover, any legal or other fees or expenses
as they are incurred (i) in investigating, preparing or pursuing any action or other proceeding
(whether formal or informal) or threat thereof, whether or not in connection with pending or
threatened litigation or arbitration and whether or not any Indemnified Party is a party (an
“Action”) and (ii) in connection with enforcing such Indemnified Party’s rights under this
Agreement (including its rights under this Section 6); provided, however,
that in the event it is finally judicially determined by a court of competent jurisdiction that the
Losses of such
Indemnified Party arose solely out of the gross negligence or bad faith of such Indemnified
Party, such Indemnified Party will promptly remit to the Company any amounts reimbursed or advanced
under this paragraph.

          (c) The Company shall, if requested by Yucaipa, assume the defense of any such Action
including the employment of counsel reasonably satisfactory to Yucaipa and will not settle,
compromise, consent or otherwise resolve or seek to terminate any pending or threatened Action
(whether or not any Indemnified Party is a party thereto) unless it obtains prior written consent
of Yucaipa or an express, unconditional release of each Indemnified Party

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from all liability
relating to such Action and any services provided under this Agreement. Any Indemnified Party
shall be entitled to retain separate counsel of its choice and participate in the defense of any
Action in connection with any of the matters to which this Section 6 relates, but the fees
and expenses of such counsel shall be at the expense of such Indemnified Party unless: (i) the
Company has failed promptly to assume the defense and employ counsel or (ii) the named parties to
any such Action (including any impleaded parties) include such Indemnified Party and the Company,
and such Indemnified Party shall have been advised by counsel that there may be one or more legal
defenses available to it which are different from or in addition to those available to the Company;
provided that the Company shall not in such event be responsible under this Section
6 for the fees and expenses of more than one firm of separate counsel (in addition to local
counsel) in connection with any such Action in the same jurisdiction.

          (d) The Company agrees that if any right of any Indemnified Party set forth in the
Sections 6(a), (b) or (c) is finally judicially determined to be
unavailable (except by reason of the gross negligence or bad faith of such Indemnified Party), or
is insufficient to hold such Indemnified Party harmless against such Losses as contemplated herein,
then the Company shall contribute to such Losses (i) in such proportion as is appropriate to
reflect the relative benefits received by the Company and its stockholders, on the one hand, and
such Indemnified Party, on the other hand, in connection with the transactions contemplated hereby,
and (ii) if (and only if) the allocation provided in clause (i) is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits referred to in
clause (i) but also the relative fault of the Company and such Indemnified Party; provided,
however, that in no event shall the amount, if any, to be contributed by all Indemnified
Parties exceed the amount of the fees actually received by Yucaipa hereunder.

          (e) The Company also agrees that no Indemnified Party shall have any liability (whether direct
or indirect, in contract or tort or otherwise) to the Company for or in connection with services
rendered or to be rendered by any Indemnified Party pursuant to this Agreement, the transactions
contemplated hereby or taken hereunder or any Indemnified Party’s actions or inactions in
connection with any such services or transactions except for Losses of the Company that are finally
judicially determined by a court of competent jurisdiction to have arisen solely out of the gross
negligence or bad faith of such Indemnified Party in connection with any such actions, inactions or
services. In no event will any Indemnified Party have any liability for any Losses based on a
multiple, any lost profits, any diminution in value or property or equity or any punitive, special,
consequential, incidental, exemplary or otherwise not actual damages.

          (f) The rights of the Indemnified Parties hereunder shall be in addition to any other rights
that any Indemnified Party may have at common law, by statute or otherwise. Except as otherwise
expressly provided for in this Section 6, if any term, provision, covenant or restriction
contained in this Section 6 or anywhere in this Agreement is held by a court of competent
jurisdiction or other authority to be invalid, void, unenforceable or against its regulatory
policy, the remainder of the terms, provisions, covenants and restrictions contained in this
Agreement shall all remain in full force and effect and shall in no way be affected, impaired or
invalidated. The reimbursement, indemnity and contribution obligations of the Company set forth
herein shall apply to any modification of this Agreement and shall
remain in full force and 

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effect regardless of any termination of, or the completion of any Indemnified Party’s services under or in
connection with, this Agreement.

     Section 7. Disclaimer; Opportunities.

          (a) Disclaimer. Yucaipa makes no representations or warranties, express or implied,
in respect of the services to be provided pursuant to this Agreement or any registrations, licenses
or qualifications. Yucaipa is providing certain monitoring, management or consulting services and
is not undertaking to provide any legal, regulatory, accounting, insurance, tax, investment
banking, investment advisory or other similar professional advice and neither Yucaipa, nor its
affiliates, will be rendering any opinions. The Company confirms that it will rely on its own
counsel, accountants and other similar experts for legal, regulatory, accounting, insurance, tax,
investment banking, investment advisory or other similar professional advice. Yucaipa will not
perform any service for which it does not possess the requisite federal or state registrations,
licenses or qualifications. The Company recognizes that Yucaipa is providing services only to the
Company and this Agreement is not deemed to be and is not intended to confer rights upon any
stockholder or any other person or entity not party to this Agreement against Yucaipa or any
Indemnified Party. Any document, analysis or service provided by Yucaipa under this Agreement will
not be quoted, reproduced, summarized or otherwise disclosed, nor will any reference to Yucaipa be
made, without Yucaipa’s prior written consent.

          (b) Ability to Pursue Opportunities. Except as Yucaipa may otherwise agree in writing
after the date hereof:

     (i) Yucaipa and each of the Indemnified Parties have the right to, and have no
duty (contractual, fiduciary or otherwise) not to, directly or indirectly: (A)
engage in the same or similar business activities or lines of business as the
Company or its subsidiaries and affiliates, or any business that might be in direct
or indirect competition with the Company and/or its subsidiaries and affiliates, (B)
do business with any client or customer of the Company or its subsidiaries and
affiliates, (C) consult, advise, manage, supervise or monitor any company, business
or other entity, including any portfolio companies, affiliated investment limited
partnerships or limited liability companies affiliated with Yucaipa or any of the
Indemnified Parties, or (D) own or purchase any securities or any other interest of
or in any company, business or other entity that engages in any of the activities
listed in sub-clauses (A), (B) or (C);

     (ii) Yucaipa and each of the Indemnified Parties have no duty (contractual or
otherwise) to communicate or present any corporate opportunities to the Company or
any of its subsidiaries or affiliates or to refrain from any of the actions listed
in Section 7(b)(i); and

     (iii) Neither Yucaipa nor any of the Indemnified Parties will be liable to the
Company or any of its subsidiaries or affiliates for breach of any duty
(contractual, fiduciary or otherwise) if it (A) participates in any activities
described in Section 7(b)(i) or (B) pursues any corporate opportunity for
itself, directs any corporate opportunity to another person or entity or does not
present

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such corporate opportunity to the Company, its subsidiaries or affiliates or
(C) does any of the foregoing in connection with Performance Logistics Group, Inc.
or any of its affiliates.

          (c) Renouncement of Certain Rights. Without limiting any provision of this
Section 7, the Company renounces any interest or expectancy of the Company or its
affiliates in, or in being offered an opportunity to participate in, business opportunities that
are from time to time presented to Yucaipa or any of the Indemnified Parties, even if the
opportunity is one that the Company or its subsidiaries or affiliates might reasonably be deemed to
have pursued or had the ability or desire to pursue if granted the opportunity to do so.

     Section 8. Miscellaneous.

          (a) Information. The Company will furnish, or arrange to have furnished, to Yucaipa
and any person or entity assisting Yucaipa with providing services, such information as Yucaipa
believes appropriate to assist Yucaipa and others with providing services pursuant to this
Agreement (all such information so furnished being the “Information”), and will update such
Information as appropriate. The Company recognizes and consents to the fact that Yucaipa and
others assisting Yucaipa with providing services (i) will use and rely on the accuracy and
completeness of the Information supplied or otherwise made available without having any obligation
to independently verify the same, (ii) do not assume responsibility for the accuracy or
completeness of the Information or such other information, (iii) have no obligation to undertake an
independent evaluation, appraisal or physical inspection of any assets or liabilities of the
Company or any other person or entity, and (iv) with respect to any financial forecasts (including
cost savings and synergies) that may be furnished to or discussed by the Company or any other
person or entity, will assume that they have been reasonably prepared and reflect the best then
currently available estimates and judgment of the Company’s or such other person or entity’s
management. Any written information furnished to Yucaipa pursuant to this Section 8(a)
that is not publicly available and is specifically marked as “Confidential Information Not For
Public Disclosure” by the Company when furnished to Yucaipa, will not be publicly disclosed by
Yucaipa during the term of this Agreement without the consent of the Company.

          (b) No Loss of Rights as Stockholder. The Company acknowledges that affiliates of
Yucaipa are owners of equity interests of the Company and that nothing in this Agreement limits,
affects or alters the rights or abilities of Yucaipa or its affiliates to take any action in the
capacity as an equityholder of the Company.

          (c) Notice. All notices or other communications hereunder shall be deemed to have
been duly given and made if in writing and if served by personal delivery upon the party for whom
it is intended, if delivered by registered or certified mail, return receipt requested, or by a
national courier service, or if sent by facsimile or by email transmission. Any such notice shall
be deemed delivered (i) on the date delivered if by personal delivery, (ii) on the date upon which
receipt is signed or delivery is made, if mailed by registered or certified mail, (iii) on the date
upon which the return receipt is signed or delivery is refused or the notice is designated by the
postal authorities as not deliverable, as the case may be, if mailed by registered or certified
mail, (iv) on the next succeeding business day if sent by national courier service, (v) on the date
sent

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by facsimile if the appropriate facsimile confirmation is received by the sender, or (vi) on
the date sent if by email.

	 	 	 	 	 
	 

	 	If to Yucaipa:
	 	Yucaipa American Funds, LLC
	 

	 	 	 	9130 W. Sunset Boulevard
	 

	 	 	 	Los Angeles, California 90069
	 

	 	 	 	Email: legal@yucaipaco.com
	 

	 	 	 	Attention: Robert P. Bermingham
	 

	 	If to the Company:
	 	Allied Systems Holdings, Inc.
	 

	 	 	 	160 Clairemont Avenue, Suite 200
	 

	 	 	 	Decatur, Georgia 30030
	 

	 	 	 	Email: John.Blount@AlliedHoldings.com
	 

	 	 	 	Attn: General Counsel

          with a copy to the General Counsel of the Company at the same address.

          (d) Entire Agreement; Amendments. This Agreement contains all of the terms and
conditions agreed upon by the parties hereto in connection with the subject matter hereof. This
Agreement may not be amended, modified or changed except by written instrument signed by all of the
parties hereto.

          (e) Assignment; Successors. This Agreement shall not be assigned and is not
assignable by the Company or Yucaipa without the prior written consent of the other party hereto;
provided, however, that Yucaipa may assign, without the prior consent of the Company, its
rights and obligations under this Agreement to any partnership or limited liability company
controlled by, or under common control with, Yucaipa, and provided further, that Yucaipa may assign
the right to receive any payment hereunder to any other person or entity. Subject to the preceding
sentence, this Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective permitted successors and assigns.

          (f) Governing Law; Jurisdiction; Jury Waiver. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of New York, without reference to the
choice of law principles thereof. The Company hereby submits to the exclusive jurisdiction of the
Federal and State courts located in the City of New York, New York in connection with any dispute
related to this Agreement or any of the matters contemplated hereby. Notwithstanding the
foregoing, to the extent a matter involves the internal affairs of the
Company such matter shall be governed by the laws of the jurisdiction of the Company’s
organization. EACH OF YUCAIPA AND THE COMPANY (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY DISPUTE
RELATED TO THIS AGREEMENT OR ANY OF THE MATTERS CONTEMPLATED HEREBY.

     (g) Relationship. Nothing in this Agreement shall constitute or be construed to
create a partnership or joint venture between the Company and Yucaipa. Yucaipa is acting as

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an
independent contractor to provide the services described herein solely to the Company and Yucaipa
is not acting as a fiduciary of the Company, any security holders of the Company or any other
persons. No employee of Yucaipa or its affiliates will be deemed employees of the Company or any
of its affiliates by reason of this Agreement or the performance of services contemplated hereby.
This Agreement is for the benefit of the Company and Yucaipa and shall not create third-party
beneficiary rights, except for Section 6 and Section 7. The Indemnified Parties
and the members of the Yucaipa Group are third-party beneficiaries of this Section 6 and
Section 7 of this Agreement with the right to fully enforce those sections as if parties
hereto.

          (h) Construction and Interpretation. This Agreement shall not be construed for or
against either party by reason of the authorship or alleged authorship of any provision hereof or
by reason of the status of the respective parties. The language used in this Agreement shall be
deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule
of strict construction shall be applied against either party. The captions on sections are
provided for purposes of convenience and are not intended to limit, define the scope of or aid in
interpretation of any of the provisions hereof. References to a party or parties shall refer to
the Company or Yucaipa, or both, as the context may require. All pronouns and singular or plural
references as used herein shall be deemed to have interchangeably (where the sense of the sentence
requires) a masculine, feminine or neutral, and/or singular or plural meaning, as the case may be.
The word “including” whenever used in this Agreement shall be deemed to be immediately followed by
the words “without limitation.”

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

(signature page follows)

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     IN WITNESS WHEREOF, the parties hereto have caused this Monitoring and Management Services
Agreement to be duly executed as of the date first above written.

	 	 	 
	 

	 	YUCAIPA AMERICAN FUNDS LLC, a Delaware limited
	 

	 	liability company
	 
	 	 
	 

	 	By: Yucaipa American Management, LLC
	 

	 	Its: Managing Member

	 	 	 	 	 
	 	 	 
	 	By:  	                                                  /s/ Robert P. Bermingham
 	 
	 	 	Name:  	Robert P. Bermingham 	 
	 	 	Title:  	Vice President and Secretary 	 
	 

	 	 	 	 	 
	                ALLIED
SYSTEMS HOLDINGS, INC., a Delaware corporation

 
	 	By:  	/s/ Thomas H. King
 	 
	 	 	Name:  	Thomas H. King 	 
	 	 	Title:  	Vice President, Treasurer and

Assistant Secretary 	 
	 

S-1
Monitoring and Management Services AgreementEX-10.2 FORM OF DIRECTOR AND OFFICER AGREEMENT

 

Exhibit 10.2

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (“Agreement”) is made as of                      ___, 2007 by and between
Allied Systems Holdings, Inc., a Delaware corporation (the “Company”), and                     
(“Indemnitee”).

RECITALS

     WHEREAS, highly competent persons have become more reluctant to serve publicly-held
corporations as directors, officers or in other capacities unless they are provided with adequate
protection through insurance or adequate indemnification against inordinate risks of claims and
actions against them arising out of their service to and activities on behalf of the corporation;

     WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in order to
attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis,
at its sole expense, liability insurance to protect persons serving the Company and its
subsidiaries from certain liabilities. Although the furnishing of such insurance has been a
customary and widespread practice among United States-based corporations and other business
enterprises, the Company believes that, given current market conditions and trends, such insurance
may be available to it in the future only at higher premiums and with more exclusions. At the same
time, directors, officers, and other persons in service to corporations or business enterprises are
being increasingly subjected to expensive and time-consuming litigation relating to, among other
things, matters that traditionally would have been brought only against the Company or business
enterprise itself. The By-laws of the Company require indemnification of the officers and
directors of the Company. Indemnitee may also be entitled to indemnification pursuant to the
General Corporation Law of the State of Delaware (the “DGCL”). The By-laws and the DGCL expressly
provide that the indemnification provisions set forth therein are not exclusive, and thereby
contemplate that contracts may be entered into between the Company and members of the board of
directors, officers and other persons with respect to indemnification;

     WHEREAS, the uncertainties relating to such insurance and to indemnification have increased
the difficulty of attracting and retaining such persons;

     WHEREAS, the Board has determined that the increased difficulty in attracting and retaining
such persons is detrimental to the best interests of the Company’s stockholders and that the
Company should act to assure such persons that there will be increased certainty of such protection
in the future;

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent
permitted by applicable law so that they will serve or continue to serve the Company free from
undue concern that they will not be so indemnified;

 

 

     WHEREAS, this Agreement is a supplement to and in furtherance of the By-laws of the Company
and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to
diminish or abrogate any rights of Indemnitee thereunder;

     WHEREAS, Indemnitee does not regard the protection available under the Company’s By-laws and
insurance as adequate in the present circumstances, and may not be willing to serve as an officer
or director without adequate protection, and the Company desires Indemnitee to serve in such
capacity. Indemnitee is willing to serve, continue to serve and to take on additional service for
or on behalf of the Company on the condition that he be so indemnified; and

     NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

     Section 1. Services to the Company. Indemnitee agrees to serve [as a [director]
[officer] [employee] [agent] of the Company] [, at the request of the Company, as a [director]
[officer] [employee] [agent] [fiduciary] of another corporation, partnership, joint venture, trust
employee benefit plan or other enterprise]. Indemnitee may at any time and for any reason resign
from such position (subject to any other contractual obligation or any obligation imposed by
operation of law), in which event the Company shall have no obligation under this Agreement to
continue Indemnitee in such position. This Agreement shall not be deemed an employment contract
between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee. Indemnitee
specifically acknowledges that Indemnitee’s employment with the Company (or any of its subsidiaries
or any Enterprise), if any, is at will, and the Indemnitee may be discharged at any time for any
reason, with or without cause, except as may be otherwise provided in any written employment
contract between Indemnitee and the Company (or any of its subsidiaries or any Enterprise), other
applicable formal severance policies duly adopted by the Board, or, with respect to service as a
director or officer of the Company, by the Company’s Certificate of Incorporation, the Company’s
By-laws, and the DGCL. The foregoing notwithstanding, this Agreement shall continue in force after
Indemnitee has ceased to serve as a [director] [officer] [employee] [agent] of the Company.

Section 2. Definitions. As used in this Agreement:

          (a) A “Change in Control” shall be deemed to occur upon the earliest to occur after the date
of this Agreement of any of the following events:

               (i) Acquisition of Stock by Third Party. Any Person (as defined below) other than a Yucaipa
Stockholder or Yucaipa Affiliated Company is or becomes the Beneficial Owner (as defined below),
directly or indirectly, of securities of the Company representing fifty percent (50%) or more of
the combined voting power of the Company’s then outstanding securities;

 

 

               (ii) Change in Board. During any period of two (2) consecutive years (not including any
period prior to the execution of this Agreement), individuals who at the beginning of such period
constitute the Board, and any new director (other than a director designated by a person who has
entered into an agreement with the Company to effect a transaction described in Sections 2(a)(i),
2(a)(iii) or 2(a)(iv)) whose election by the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least half of the directors then still in office who
either were directors at the beginning of the period or whose election or nomination for election
was previously so approved, cease for any reason to constitute at least a majority of the members
of the Board;

               (iii) Corporate Transactions. The effective date of a merger or consolidation of the Company
with any other entity, other than a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior to such merger or consolidation continuing
to represent (either by remaining outstanding or by being converted into voting securities of the
surviving entity) more than 51% of the combined voting power of the voting securities of the
surviving entity outstanding immediately after such merger or consolidation and with the power to
elect at least a majority of the board of directors or other governing body of such surviving
entity;

               (iv) Liquidation. The approval by the stockholders of the Company of a complete liquidation
of the Company or an agreement for the sale or disposition by the Company of all or substantially
all of the Company’s assets; and

               (v) Other Events. There occurs any other event of a nature that would be required to be
reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar
item on any similar schedule or form) promulgated under the Exchange Act (as defined below),
whether or not the Company is then subject to such reporting requirement.

For purposes of this Section 2(a), the following terms shall have the following meanings:

     (A) “Exchange Act” shall mean the Securities Exchange Act of
1934, as amended.

     (B) “Person” shall have the meaning as set forth in Sections
13(d) and 14(d) of the Exchange Act; provided, however, that Person
shall exclude (i) the Company, (ii) any trustee or other fiduciary
holding securities under an employee benefit plan of the Company,
and (iii) any corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as
their ownership of stock of the Company.

     (C) “Beneficial Owner” shall have the meaning given to such
term in Rule 13d-3 under the Exchange Act; provided, however, that
Beneficial Owner shall exclude any Person otherwise becoming a
Beneficial Owner by reason of the

 

 

stockholders of the Company approving a merger of the Company
with another entity.

          (b) “Corporate Status” describes the status of a person who is or was a director, officer,
employee or agent of the Company or of any other corporation, limited liability company,
partnership or joint venture, trust, employee benefit plan or other enterprise which such person is
or was serving at the request of the Company.

          (c) “Disinterested Director” means a director of the Company who is not and was not a party to
the Proceeding in respect of which indemnification is sought by Indemnitee.

          (d) “Enterprise” shall mean the Company and any other corporation, limited liability company,
partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is
or was serving at the request of the Company as a director, officer, employee, agent or fiduciary.

          (e) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees, and all other disbursements or
expenses of the types customarily incurred in connection with prosecuting, defending, preparing to
prosecute or defend, investigating, being or preparing to be a witness in, or otherwise
participating in, a Proceeding. Expenses also shall include (i) Expenses incurred in connection
with any appeal resulting from any Proceeding, including without limitation the premium, security
for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its
equivalent, and (ii) for purposes of Section 13(d) only, Expenses incurred by Indemnitee in
connection with the interpretation, enforcement or defense of Indemnitee’s rights under this
Agreement, by litigation or otherwise. Expenses, however, shall not include amounts paid in
settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

          (f) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither presently is, nor in the past five years has been, retained
to represent: (i) the Company or Indemnitee in any matter material to either such party (other
than with respect to matters concerning the Indemnitee under this Agreement, or of other
indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding
giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term
“Independent Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. The
Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above
and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages
arising out of or relating to this Agreement or its engagement pursuant hereto.

          (g) “Proceeding” shall include any threatened, pending or completed action, suit, arbitration,
alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other
actual, threatened or completed proceeding, whether brought in the right of the Company or
otherwise and whether of a civil, criminal, administrative legislative, or

 

 

investigative nature, including any appeal therefrom, in which Indemnitee was, is or will be
involved as a party, potential party, non-party witness or otherwise by reason of the fact that
Indemnitee is or was a director or officer of the Company, by reason of any action taken by him or
of any action on his part while acting as director or officer of the Company, or by reason of the
fact that he is or was serving at the request of the Company as a director, officer, employee or
agent of another corporation, limited liability company, partnership, joint venture, trust or other
enterprise, in each case whether or not serving in such capacity at the time any liability or
expense is incurred for which indemnification, reimbursement, or advancement of expenses can be
provided under this Agreement; except one initiated by an Indemnitee to enforce his rights under
this Agreement.

          (h) Reference to “other enterprise” shall include employee benefit plans; references to
“fines” shall include any excise tax assessed with respect to any employee benefit plan; references
to “serving at the request of the Company” shall include any service as a director, officer,
employee or agent of the Company which imposes duties on, or involves services by, such director,
officer, employee or agent with respect to an employee benefit plan, its participants or
beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in
the best interests of the participants and beneficiaries of an employee benefit plan shall be
deemed to have acted in manner “not opposed to the best interests of the Company” as referred to in
this Agreement.

          (i) “Yucaipa Affiliated Company” shall mean any entity which is controlled by the Yucaipa
Stockholders, controls the Yucaipa Stockholders or is under common control with the Yucaipa
Stockholders (other than the Company and any person or entity that is controlled by the Company).
For the purposes of this definition, “control” means the possession of the power to direct or cause
the direction of the management and policies of such person or entity through the ownership of
voting securities, by contract or otherwise.

          (j) “Yucaipa Stockholders” shall refer to Yucaipa American Alliance Fund I, LP and Yucaipa
American Alliance (Parallel) Fund I, LP, each a Delaware limited partnership.

     Section 3. Indemnity in Third-Party Proceedings. The Company shall indemnify
Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened
to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the
right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee
shall be indemnified to the fullest extent permitted by applicable law against all Expenses,
judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or
on his behalf in connection with such Proceeding or any claim, issue or matter therein, if
Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the Company and, in the case of a criminal proceeding had no reasonable cause
to believe that his conduct was unlawful.

 

 

     Section 4. Indemnity in Proceedings by or in the Right of the Company. The Company
shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or
is threatened to be made, a party to or a participant in any Proceeding by or in the right of the
Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be
indemnified to the fullest extent permitted by applicable law against all Expenses actually and
reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue
or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be
in or not opposed to the best interests of the Company. No indemnification for Expenses shall be
made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall
have been finally adjudged by a court to be liable to the Company, unless and only to the extent
that the Delaware Court of Chancery or any court in which the Proceeding was brought shall
determine upon application that, despite the adjudication of liability but in view of all the
circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification.

     Section 5. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provisions of this Agreement, to the fullest extent permitted by
applicable law and to the extent that Indemnitee is a party to (or a participant in) and is
successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or
matter therein, in whole or in part, the Company shall indemnify Indemnitee against all Expenses
actually and reasonably incurred by him in connection therewith. If Indemnitee is not wholly
successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but
less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee
against all Expenses actually and reasonably incurred by him or on his behalf in connection with
each successfully resolved claim, issue or matter. If the Indemnitee is not wholly successful in
such Proceeding, the Company also shall indemnify Indemnitee against all Expenses reasonably
incurred in connection with a claim, issue or matter related to any claim, issue, or matter on
which the Indemnitee was successful. For purposes of this Section and without limitation, the
termination of any claim, issue or matter in such a Proceeding by dismissal, with or without
prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

     Section 6. Indemnification For Expenses of a Witness. Notwithstanding any other
provision of this Agreement, to the fullest extent permitted by applicable law and to the extent
that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding to which
Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably
incurred by him or on his behalf in connection therewith.

     Section 7. Additional Indemnification.

          (a) Notwithstanding any limitation in Sections 3, 4, or 5, the Company shall indemnify
Indemnitee to the fullest extent permitted by applicable law if Indemnitee is a party to or
threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the
Company to procure a judgment in its favor) against all Expenses, judgments, fines and amounts paid
in settlement actually and reasonably incurred by Indemnitee in connection with the Proceeding.

 

 

          (b) For purposes of Section 7(a), the meaning of the phrase “to the fullest extent permitted
by applicable law” shall include, but not be limited to:

               (i) to the fullest extent permitted by the provision of the DGCL that authorizes or
contemplates additional indemnification by agreement, or the corresponding provision of any
amendment to or replacement of the DGCL, and

               (ii) to the fullest extent authorized or permitted by any amendments to or replacements of the
DGCL adopted after the date of this Agreement that increase the extent to which a corporation may
indemnify its officers and directors.

     Section 8. Exclusions. Notwithstanding any provision in this Agreement, the Company
shall not be obligated under this Agreement to make any indemnity in connection with any claim made
against Indemnitee:

          (a) for which payment has actually been made to or on behalf of Indemnitee under any insurance
policy or other indemnity provision, except with respect to any excess beyond the amount paid under
any insurance policy or other indemnity provision; or

          (b) for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by
Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act (as
defined in Section 2(a) hereof) or similar provisions of state statutory law or common law, or (ii)
any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or
equity-based compensation or of any profits realized by the Indemnitee from the sale of securities
of the Company, as required in each case under the Exchange Act (including any such reimbursements
that arise from an accounting restatement of the Company pursuant to Section 304 of the
Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), or the payment to the Company of profits
arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the
Sarbanes-Oxley Act), or

          (c) except as provided in Section 13(d) of this Agreement, in connection with any Proceeding
(or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of
any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees
or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any
Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole
discretion, pursuant to the powers vested in the Company under applicable law.

 

 

     Section 9. Advances of Expenses. In accordance with the pre-existing
requirement of Section 6.1(E) of Article VI of the By-laws of the Company, and notwithstanding any
provision of this Agreement to the contrary, the Company shall advance, to the extent not
prohibited by law, the Expenses incurred by Indemnitee in connection with any Proceeding, and such
advancement shall be made within thirty (30) days after the receipt by the Company of a statement
or statements requesting such advances from time to time, whether prior to or after final
disposition of any Proceeding. Advances shall be unsecured and interest free. Advances shall be
made without regard to Indemnitee’s ability to repay the Expenses and without regard to
Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement.
Advances shall include any and all reasonable Expenses incurred pursuing an action to enforce this
right of advancement, including Expenses incurred preparing and forwarding statements to the
Company to support the advances claimed. The Indemnitee shall qualify for advances upon the
execution and delivery to the Company of this Agreement, which shall constitute an undertaking
providing that the Indemnitee undertakes to repay the advance to the extent that it is ultimately
determined that Indemnitee is not entitled to be indemnified by the Company. This Section 9 shall
not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 8.

     Section 10. Procedure for Notification and Defense of Claim.

          (a) Indemnitee shall notify the Company in writing of any matter with respect to which
Indemnitee intends to seek indemnification or advancement of Expenses hereunder as soon as
reasonably practicable following the receipt by Indemnitee of written notice thereof. The written
notification to the Company shall include a description of the nature of the Proceeding and the
facts underlying the Proceeding. To obtain indemnification under this Agreement, Indemnitee shall
submit to the Company a written request, including therein or therewith such documentation and
information as is reasonably available to Indemnitee and is reasonably necessary to determine
whether and to what extent Indemnitee is entitled to indemnification following the final
disposition of such action, suit or proceeding. The omission by Indemnitee to notify the Company
hereunder will not relieve the Company from any liability which it may have to Indemnitee hereunder
or otherwise than under this Agreement, and any delay in so notifying the Company shall not
constitute a waiver by Indemnitee of any rights under this Agreement. The Secretary of the Company
shall, promptly upon receipt of such a request for indemnification, advise the Board in writing
that Indemnitee has requested indemnification.

          (b) The Company will be entitled to participate in the Proceeding at its own expense.

     Section 11. Procedure Upon Application for Indemnification. 

          (a) Upon written request by Indemnitee for indemnification pursuant to the Section 10(a), a
determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto
shall be made in the specific case: (i) if a Change in Control shall have occurred, by Independent
Counsel in a written opinion to the Board, a copy of which shall be
delivered to Indemnitee; or (ii) if a Change in Control shall not have occurred, (A) by a
majority vote of the Disinterested Directors, even though less than a quorum of the Board, (B) by a

 

 

committee of Disinterested Directors designated by a majority vote of the Disinterested Directors,
even though less than a quorum of the Board, (C) if there are no such Disinterested Directors or,
if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the
Board, a copy of which shall be delivered to Indemnitee, (D) if directed by a majority vote of
directors designated or nominated to the Board by the Yucaipa Stockholders (or if no such directors
are then serving on the Board then the Yucaipa Stockholders), by Independent Counsel in a written
opinion to the Board, a copy of which shall be delivered to Indemnitee or (E) if so directed by the
Board, by the stockholders of the Company; and, if it is so determined that Indemnitee is entitled
to indemnification, payment to Indemnitee shall be made within ten (10) days after such
determination. Indemnitee shall cooperate with the person, persons or entity making such
determination with respect to Indemnitee’s entitlement to indemnification, including providing to
such person, persons or entity upon reasonable advance request any documentation or information
which is not privileged or otherwise protected from disclosure and which is reasonably available to
Indemnitee and reasonably necessary to such determination. Any costs or Expenses (including
attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person,
persons or entity making such determination shall be borne by the Company (irrespective of the
determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies
and agrees to hold Indemnitee harmless therefrom.

          (b) In the event the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 11(a) hereof, the Independent Counsel shall be selected as
provided in this Section 11(b). If a Change in Control shall not have occurred, the Independent
Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee
advising him of the identity of the Independent Counsel so selected. If a Change in Control shall
have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall
request that such selection be made by the Board, in which event the preceding sentence shall
apply), and Indemnitee shall give written notice to the Company advising it of the identity of the
Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be,
may, within ten (10) days after such written notice of selection shall have been given, deliver to
the Company or to Indemnitee, as the case may be, a written objection to such selection;
provided, however, that such objection may be asserted only on the ground that the
Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined
in Section 2 of this Agreement, and the objection shall set forth with particularity the factual
basis of such assertion. Absent a proper and timely objection, the person so selected shall act as
Independent Counsel. If such written objection is so made and substantiated, the Independent
Counsel so selected may not serve as Independent Counsel unless and until such objection is
withdrawn or a court has determined that such objection is without merit. If, within twenty (20)
days after the later of submission by Indemnitee of a written request for indemnification pursuant
to Section 10(a) hereof and the final disposition of the Proceeding, no Independent Counsel shall
have been selected and not objected to, either the Company or Indemnitee may petition a court of
competent jurisdiction for resolution of any objection which shall have been made by the Company or
Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as
Independent Counsel of a person selected by the Court or by such other person as the Court shall
designate, and the person with respect to whom all objections are so resolved or the person so appointed shall
act as Independent Counsel under Section 11(a) hereof. Upon the due commencement of any judicial proceeding or arbitration

 

 

pursuant to Section 13(a) of this Agreement, Independent Counsel shall be discharged and relieved of any
further responsibility in such capacity (subject to the applicable standards of professional
conduct then prevailing).

     Section 12. Presumptions and Effect of Certain Proceedings.

          (a) In making a determination with respect to entitlement to indemnification hereunder, the
person or persons or entity making such determination shall, to the fullest extent not prohibited
by law, presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee
has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and
the Company shall, to the fullest extent not prohibited by law, have the burden of proof to
overcome that presumption in connection with the making by any person, persons or entity of any
determination contrary to that presumption. Neither the failure of the Company (including by its
directors or independent legal counsel) to have made a determination prior to the commencement of
any action pursuant to this Agreement that indemnification is proper in the circumstances because
Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company
(including by its directors or independent legal counsel) that Indemnitee has not met such
applicable standard of conduct, shall be a defense to the action or create a presumption that
Indemnitee has not met the applicable standard of conduct.

          (b) Subject to Section 13(e), if the person, persons or entity empowered or selected under
Section 11 of this Agreement to determine whether Indemnitee is entitled to indemnification shall
not have made a determination within sixty (60) days after receipt by the Company of the request
therefor, the requisite determination of entitlement to indemnification shall, to the fullest
extent not prohibited by law, be deemed to have been made and Indemnitee shall be entitled to such
indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a
material fact necessary to make Indemnitee’s statement not materially misleading, in connection
with the request for indemnification, or (ii) a prohibition of such indemnification under
applicable law; provided, however, that such 60-day period may be extended for a reasonable time,
not to exceed an additional thirty (30) days, if the person, persons or entity making the
determination with respect to entitlement to indemnification in good faith requires such additional
time for the obtaining or evaluating of documentation and/or information relating thereto; and
provided, further, that the foregoing provisions of this Section 12(b) shall not apply (i) if the
determination of entitlement to indemnification is to be made by the stockholders pursuant to
Section 11(a) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of
the request for such determination the Board has resolved to submit such determination to the
stockholders for their consideration at an annual meeting thereof to be held within seventy-five
(75) days after such receipt and such determination is made thereat, or (B) a special meeting of
stockholders is called within fifteen (15) days after such receipt for the purpose of making such
determination, such meeting is held for such purpose within sixty (60) days after having been so
called and such determination is made thereat, or (ii) if the determination of entitlement to
indemnification is to be made by Independent Counsel pursuant to Section 11(a) of this Agreement.

          (c) The termination of any Proceeding or of any claim, issue or matter therein, by judgment,
order, settlement or conviction, or upon a plea of nolo contendere or its
equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself
adversely affect the

 

 

right of Indemnitee to indemnification or create a presumption that Indemnitee
did not act in good faith and in a manner which he reasonably believed to be in or not opposed to
the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had
reasonable cause to believe that his conduct was unlawful.

          (d) Reliance as Safe Harbor. For purposes of any determination of good faith,
Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the
records or books of account of the Enterprise, including financial statements, or on information
supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the
advice of legal counsel for the Enterprise or on information or records given or reports made to
the Enterprise by an independent certified public accountant or by an appraiser or other expert
selected with the reasonable care by the Enterprise. The provisions of this Section 12(d) shall
not be deemed to be exclusive or to limit in any way the other circumstances in which the
Indemnitee may be deemed to have met the applicable standard of conduct set forth in this
Agreement.

          (e) Actions of Others. The knowledge and/or actions, or failure to act, of any
director, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for
purposes of determining the right to indemnification under this Agreement.

     Section 13. Remedies of Indemnitee. 

          (a) Subject to Section 13(e), in the event that (i) a determination is made pursuant to
Section 11 of this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 9 of this Agreement,
(iii) no determination of entitlement to indemnification shall have been made pursuant to Section
11(a) of this Agreement within ninety (90) days after receipt by the Company of the request for
indemnification, (iv) payment of indemnification is not made pursuant to Section 5 or 6 or the last
sentence of Section 11(a) of this Agreement within ten (10) days after receipt by the Company of a
written request therefor, (v) payment of indemnification pursuant to Section 3, 4 or 7 of this
Agreement is not made within ten (10) days after a determination has been made that Indemnitee is
entitled to indemnification, or (vi) in the event that the Company or any other person takes or
threatens to take any action to declare this Agreement void or unenforceable, or institutes any
litigation or other action or Proceeding designed to deny, or to recover from, the Indemnitee the
benefits provided or intended to be provided to the Indemnitee hereunder, Indemnitee shall be
entitled to an adjudication by the Chancery Court of the State of Delaware (the “Delaware Court”)
of his entitlement to such indemnification or advancement of Expenses. Alternatively, Indemnitee,
at his option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to
the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall
commence such proceeding seeking an adjudication or an award in arbitration within 180 days
following the date on which Indemnitee first has the right to commence such proceeding pursuant to
this Section 13(a); provided, however, that the foregoing clause shall not apply in
respect of a proceeding brought by Indemnitee to enforce his rights under Section 5 of this Agreement. The Company
shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

 

 

          (b) In the event that a determination shall have been made pursuant to Section 11(a) of this
Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or
arbitration commenced pursuant to this Section 13 shall be conducted in all respects as a
de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced
by reason of that adverse determination. In any judicial proceeding or arbitration commenced
pursuant to this Section 13 the Company shall have the burden by clear and convincing evidence of
proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may
be.

          (c) If a determination shall have been made pursuant to Section 11(a) of this Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any
judicial proceeding or arbitration commenced pursuant to this Section 13, absent (i) a misstatement
by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for indemnification, or (ii) a
prohibition of such indemnification under applicable law.

          (d) The Company shall, to the fullest extent not prohibited by law, be precluded from
asserting in any judicial proceeding or arbitration commenced pursuant to this Section 13 that the
procedures and presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate in any such court or before any such arbitrator that the Company is bound by all the
provisions of this Agreement. It is the intent of the Company that the Indemnitee not be required
to incur legal fees or other Expenses associated with the interpretation, enforcement or defense of
Indemnitee’s rights under this Agreement by litigation or otherwise because the cost and expense
thereof would substantially detract from the benefits intended to be extended to the Indemnitee
hereunder. The Company shall indemnify Indemnitee against any and all Expenses and, if requested
by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request
therefor) advance, to the extent not prohibited by law, such Expenses to Indemnitee, which are
incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or
advance of Expenses from the Company under this Agreement or under any directors’ and officers’
liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately
is determined to be entitled to such indemnification, advancement of Expenses or insurance
recovery, as the case may be.

          (e) Notwithstanding anything in this Agreement to the contrary, no determination as to
entitlement to indemnification under this Agreement shall be required to be made prior to the final
disposition of the Proceeding.

     Section 14. Non-exclusivity; Survival of Rights; Insurance; Subrogation. 

          (a) The rights of indemnification and to receive advancement of Expenses as provided by this
Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the Company’s Certificate of Incorporation, the Company’s By-laws,
any agreement, a vote of stockholders or a resolution of directors, or otherwise. No amendment,
alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right
of Indemnitee under this Agreement in
respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such
amendment, alteration or repeal. To the extent that a change in Delaware law, whether by statute
or judicial

 

 

decision, permits greater indemnification or advancement of Expenses than would be
afforded currently under the Company’s By-laws and this Agreement, it is the intent of the parties
hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such
change. No right or remedy herein conferred is intended to be exclusive of any other right or
remedy, and every other right and remedy shall be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other right or remedy.

          (b) To the extent that the Company maintains an insurance policy or policies providing
liability insurance for directors, officers, employees, or agents of the Company or of any other
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which
such person serves at the request of the Company, Indemnitee shall be covered by such policy or
policies in accordance with its or their terms to the maximum extent of the coverage available for
any such director, officer, employee or agent under such policy or policies. If, at the time of
the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and
officer liability insurance in effect, the Company shall give prompt notice of the commencement of
such proceeding to the insurers in accordance with the procedures set forth in the respective
policies. The Company shall thereafter take all necessary or desirable action to cause such
insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in
accordance with the terms of such policies.

          (c) In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers
required and take all action necessary to secure such rights, including execution of such documents
as are necessary to enable the Company to bring suit to enforce such rights.

          (d) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable (or for which advancement is provided hereunder) hereunder if and to the
extent that Indemnitee has otherwise actually received such payment under any insurance policy,
contract, agreement or otherwise.

          (e) The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is
or was serving at the request of the Company as a director, officer, employee or agent of any other
corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or
other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification
or advancement of Expenses from such other corporation, limited liability company, partnership,
joint venture, trust, employee benefit plan or other enterprise.

 

 

     Section 15. Duration of Agreement. This Agreement shall continue until and terminate
upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve [as
a [director] [officer] [employee] [agent] of the Company] [,at the request of the Company, as a
[director] [officer] [employee] [agent] [fiduciary] of another corporation, partnership, joint
venture, trust employee benefit plan or other enterprise] or (b) one (1) year after the final
termination of any Proceeding then pending in respect of which Indemnitee is granted rights of
indemnification or advancement of Expenses hereunder and of any proceeding commenced by Indemnitee
pursuant to Section 13 of this Agreement relating thereto. This Agreement shall be binding upon
the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his
heirs, executors and administrators.

     Section 16. Severability. If any provision or provisions of this Agreement shall be
held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality
and enforceability of the remaining provisions of this Agreement (including without limitation,
each portion of any Section of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any
way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by
law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform
to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to
the fullest extent possible, the provisions of this Agreement (including, without limitation, each
portion of any Section of this Agreement containing any such provision held to be invalid, illegal
or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to
give effect to the intent manifested thereby.

     Section 17. Enforcement.

          (a) The Company expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director
or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this
Agreement in serving as a director or officer of the Company.

          (b) This Agreement constitutes the entire agreement between the parties hereto with respect to
the subject matter hereof and supersedes all prior agreements and understandings, oral, written and
implied, between the parties hereto with respect to the subject matter hereof; provided, however,
that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation of
the Company, the By-laws of the Company and applicable law, and shall not be deemed a substitute
therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

     Section 18. Modification and Waiver. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by the parties thereto. No waiver of any of
the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provisions of this Agreement nor shall any waiver constitute a continuing waiver.

 

 

     Section 19. Notice by Indemnitee. Indemnitee agrees promptly to notify the Company in
writing upon being served with any summons, citation, subpoena, complaint, indictment, information
or other document relating to any Proceeding or matter which may be subject to indemnification or
advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company
shall not relieve the Company of any obligation which it may have to the Indemnitee under this
Agreement or otherwise. 

     Section 20. Notices. All notices, requests, demands and other communications under
this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by
hand and receipted for by the party to whom said notice or other communication shall have been
directed, (b) mailed by certified or registered mail with postage prepaid, on the third business
day after the date on which it is so mailed, (c) mailed by reputable overnight courier and
receipted for by the party to whom said notice or other communication shall have been directed or
(d) sent by facsimile transmission, with receipt of oral confirmation that such transmission has
been received:

          (a) If to Indemnitee, at the address indicated on the signature page of this Agreement, or
such other address as Indemnitee shall provide to the Company.

          (b) If to the Company to

Allied Systems Holdings, Inc.

Attn: General Counsel

160 Clairemont Avenue

Decatur, GA 30030

or to any other address as may have been furnished to Indemnitee by the Company.

     Section 21. Contribution. To the fullest extent permissible under applicable law, if
the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason
whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount
incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to
be paid in settlement and/or for Expenses, in connection with any claim relating to an
indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in
light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits
received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving
cause to such Proceeding; and/or (ii) the relative fault of the Company (and its directors,
officers, employees and agents) and Indemnitee in connection with such event(s) and/or
transaction(s).

 

 

     Section 22. Applicable Law and Consent to Jurisdiction. This Agreement and the legal
relations among the parties shall be governed by, and construed and enforced in accordance with,
the laws of the State of Delaware, without regard to its conflict of laws rules. Except with
respect to any arbitration commenced by Indemnitee pursuant to Section 13(a) of this Agreement, the
Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or
proceeding arising out of or in connection with this Agreement shall be brought only in the
Delaware Court, and not in any other state or federal court in the United States of America or any
court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware
Court for purposes of any action or proceeding arising out of or in connection with this Agreement,
(iii) appoint, to the extent such party is not otherwise subject to service of process in the State
of Delaware, irrevocably RL&F Service Corp., One Rodney Square, 10th Floor, 10th and King Streets,
Wilmington, Delaware 19801 as its agent in the State of Delaware as such party’s agent for
acceptance of legal process in connection with any such action or proceeding against such party
with the same legal force and validity as if served upon such party personally within the State of
Delaware, (iv) waive any objection to the laying of venue of any such action or proceeding in the
Delaware Court, and (v) waive, and agree not to plead or to make, any claim that any such action or
proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

     Section 23. Identical Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which
together shall constitute one and the same Agreement. Only one such counterpart signed by the
party against whom enforceability is sought needs to be produced to evidence the existence of this
Agreement.

     Section 24. Miscellaneous. Use of the masculine pronoun shall be deemed to include
usage of the feminine pronoun where appropriate. The headings of the paragraphs of this Agreement
are inserted for convenience only and shall not be deemed to constitute part of this Agreement or
to affect the construction thereof.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year
first above written.

	 	 	 	 	 	 	 	 	 	 	 
	ALLIED SYSTEMS HOLDINGS, INC.	 	 	 	INDEMNITEE	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 	 	 
	Office:

	 	 	 	 	 	Address:

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