Document:

Exhibit 4.1

 

SHAREHOLDERS’ AGREEMENT

 

THIS AGREEMENT made as of this              day of                         ,              by and among A MERIQUEST TRANSPORTATION & LOGISTICS RESOURCES CORPORATION, a New Jersey corporation (the “Company”) and all other persons who have executed this Agreement (hereinafter sometimes referred to individually as a “Shareholder” and collectively as the “Shareholders”).

 

WITNESSETH:

 

WHEREAS, the Shareholders, on the date hereof, are the owners of all or substantially all of the issued and outstanding shares of common stock of the Company (collectively the “Shares”);

 

WHEREAS, in order to insure, in part, the harmonious and successful management and control of the Company, it is considered desirable to provide for an orderly and fair disposition of the Shares of the Company now or hereafter owned by each Shareholder.

 

NOW, THEREFORE, in consideration of the mutual promises of the parties hereto, and intending to be legally bound, the parties hereby agree as follows:

 

1.                                      Transfer of Shares.  No Shareholder may give, sell, pledge, bequeath, assign, encumber, transfer or otherwise dispose of any of the Shares except as otherwise expressly permitted to do so by the terms of this Agreement.  Any purported transfer of the Shares in violation of the terms of this Agreement shall be void and the Company shall not recognize or give any effect to any such transfer.

 

2.                                      Permitted Transfers.  Any Shareholder may at any time or times sell, transfer or otherwise dispose of any and all Shares to (a) the Company, or (b) subject to the terms and conditions of this Agreement (including without limitation, Sections 4 and 21 hereof), any “Permitted Transferee,” defined as (i) any Amtralease member or (ii) subject to the Company’s approval, any designee of an Amtralease member, any such designee being limited to affiliates of such member or companies affiliated with such member, provided in any case that such transferee agrees to be bound by all of the terms of this Agreement.

 

3.                                      Offers Upon Involuntary Transfers.

 

(a)                                 If (i) any of the Shares of a Shareholder would for any reason  (other than pledge to secure the valid debts of the Company) be transferred by operation of law (including, but not limited to, a transfer arising as a result of the divorce, bankruptcy, receivership, insolvency or similar proceeding of or with respect to a Shareholder, an assignment by a Shareholder for the benefit of creditors, the admission by a Shareholder of its inability to pay its debts when due, a merger, change in control or sale of substantially all of the assets of a Shareholder, or any judicial process, but excluding the death of a Shareholder), or (ii) a Shareholder’s ( or any of its affiliates’) membership in good standing in Amtralease terminates for any reason, such Shareholder (hereinafter a “transferring Shareholder”) shall immediately have the obligation to sell to the Company, and the Company shall have to obligation to purchase

 

 

from the transferring Shareholder at a purchase price equal to the book value of the Shares (as determined by the Company’s independent accountant) measured at the time that such triggering event hereinabove described occurs.

 

(b)                                 The purchase price for all Shares purchased by the Company pursuant to this Section 3 shall be paid in accordance with the provisions of Section 6 hereof.

 

4.                                      Voluntary Transfers of Shares.

 

(a)                                 Except as otherwise expressly permitted elsewhere in this Agreement in connection with a transfer of Shares to the Company, a Shareholder desiring to voluntarily dispose of some or all of his, her or its Shares to a Permitted Transferee (whether or not such Permitted Transferee is a Shareholder) may do so only pursuant to receipt of a bona fide offer to purchase from such Permitted Transferee (the “Offer”) and only after compliance with the following provisions.  Such transferring Shareholder shall first give written notice to the Company of his, her or its intention to dispose of such Shares, identifying the number of Shares that such Shareholder desires to dispose of, the proposed purchase price per Share and the name of the proposed purchaser and attaching an exact copy of the Offer received by such Shareholder.

 

(b)                                 Upon the Company’s receipt of such notice, the transferring Shareholder shall be deemed to have offered to sell to the Company all of the Shareholder’s Shares sought to be purchased pursuant to the Offer.  The Company shall have the right, but not the obligation, upon written notice to the transferring Shareholder to be given within thirty (30) days after receipt of notice of the Offer from the transferring Shareholder, to elect to purchase all such Shares.

 

(c)                                  The price per share to be paid pursuant to this Section 4 shall be the per share purchase price for each Share as described in the Offer.  To the extent that the Offer contains a purchase price which is either wholly or in part made up of non-cash items, the Company, if it elects to purchase all such Shares pursuant to this Section 4, shall be permitted to substitute cash of equivalent value.

 

(d)                                 When exercising the right granted in Section 4(b) above, the Company must elect to purchase all Shares which the transferring Shareholder proposes to sell for the price and upon the same terms for payment of the price as are set forth in the Offer; provided, however, that if said Offer received by the transferring Shareholder shall provide for any act or action to be done or performed by the third party making such Offer at any time before or within thirty (30) days following the last day for exercise of the Company’s rights to purchase pursuant to Section 4(b) above, then the Company shall be deemed to have complied with the terms and conditions of such Offer if the Company does or performs such act or action within thirty (30) days following the last day for exercise of the Company’s right to purchase pursuant to Section 4(b) above.

 

(e)                                  If the Company does not elect to purchase all of the Shares which the transferring Shareholder proposes to sell pursuant to this Section 4, the transferring Shareholder may accept the Offer which the transferring Shareholder mailed with his, her or its notice to the Company pursuant to Section 4(a) above and transfer, subject to Sections 2 and 21 hereof, all,

 

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but not less than all, of the Shares which he, she or it proposes to sell pursuant thereto on the same terms and conditions set forth in such Offer, provided that any transferee of such Shares shall be bound by the provisions of this Agreement (including without limitation, Sections 2 and 21 hereof) as provided by Section 7 below.

 

(f)                                   If any such sale contemplated in Section 4(c) above is not completed within ninety (90) days after the date notice is received by the Company under Section 4(a) above, all such Shares shall again become subject to all of the restrictions and provisions of this Agreement.

 

5.                                      Transfers upon Death of a Shareholder.

 

(a)                                 Upon the death of a Shareholder who is a natural person, subject to Section 5(c) below, the Company shall have the obligation to purchase from the personal representative of the deceased Shareholder, and the personal representative of such deceased Shareholder shall the obligation to sell to the Company, all of the deceased Shareholder’s Shares.

 

(b)                                 The purchase price for the Shares sold and purchased pursuant to this Section 5 shall be the book value of the Shares as of the death of the deceased Shareholder (as determined by the Company’s independent accountant) and the purchase price for the Shares shall be paid in accordance with the provisions of Section 6 below.

 

(c)                                  In the event that (i), not later than thirty (30) days prior to the date of the Closing of the sale of the deceased Shareholder’s Shares pursuant to Section 6 below, the Company shall have received written notice from the personal representative of such deceased Shareholder stating that one or more of the deceased Shareholder’s issue, who is, but for the provisions of this Agreement, entitled to receive a bequest of some or all of the deceased Shareholder’s Shares, request(s) permission to receive such bequest of Shares and desire(s) to participate in the management of the Amtralease member in whose management the deceased Shareholder was a participant, and (ii) the Company, in its sole discretion, grants such permission by written notice to such personal representative within twenty (20) days after receipt of the personal representative’s notice described above, then neither the Company nor the personal representative shall have any obligation to purchase or sell the Shares subject to such bequest pursuant to Section 5(a) above and such issue shall be permitted to receive such bequest, provided that such issue execute(s) a written commitment to be bound by the provisions of this Agreement as provided by Section 7 below.

 

6.                                      Payment of Purchase Price.  All Shares purchased pursuant to Sections 3, 4, or 5 of this Agreement shall be paid for in the following manner:

 

(a)                                 The purchase price for any Shares purchased by the Company pursuant to Section 3 or 5 hereof shall be payable pursuant to promissory note(s) properly executed and delivered to the seller of the deceased Shareholder’s personal representative, as applicable (the “Selling Shareholder”), in one installment of principal and interest, due on the first anniversary of Closing of the sale (as provided for in Section 6(c) below), provided that the Company shall have the right at any time to prepay the purchase price, plus interest accrued from Closing, in whole or in part without penalty.  The promissory note(s) shall bear interest from the date of

 

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execution at the rate then required in order to avoid imputed interest recharacterization for federal income tax purposes.  If not paid in full on or before any due date, any installment due under any promissory note(s) shall bear interest at the rate per annum of the lower of (i) 2% above the interest rate in effect for payments under the promissory note(s) or (ii) the maximum lawful rate permitted by law, if any, which interest shall accrue from said date until the date of actual payment.

 

(b)                                 The purchase price for any Shares purchased by the Company pursuant to Section 4 hereof shall be payable in the manner provided for in such Section 4.

 

(c)                                  Unless another date is mutually acceptable to the Company and the Selling Shareholder, Closing shall occur (i) in the case of a purchase pursuant to Section 3 above, not later than the thirtieth (30th) day following the date of final determination of the per share purchase price, (ii) in the case of a purchase pursuant to Section 4 above, not later than the thirtieth (30th) day following the date which is the last day for exercise of the right to purchase the Shares by the Company, and (iii) in the case of a purchase pursuant to Section 5 above, 120 days following the date of the deceased Shareholder’s death.

 

(d)                                 As a condition to the purchase of any Shares hereunder, the Selling Shareholder shall deposit the certificates representing the Shares to be sold accompanied by executed stock powers, any transfer stamps applicable thereto, and an Assignment Separate from Certificate, if necessary, with an escrow agent mutually acceptable to the Company and the Selling Shareholder, which escrow agent shall ratably release Shares to the Company no less frequently than annually as the promissory note(s) are amortized.

 

7.                                      Agreement Binding on All Persons Interested in Shares.  Each person who now or hereafter acquires any legal or equitable interest in any Shares shall be bound by the terms of this Agreement.  No issuance or transfer of Shares shall be effective and the Company shall not enter any issuance or transfer upon the stock books of the Company or issue a certificate in the name of any person unless the Company is satisfied that such person is, and in a matter satisfactory to the Company has acknowledged being, bound by the terms of this Agreement.

 

8.                                      Location of Closing.  Except as otherwise expressly provided, Closing pursuant to the exercise of a right or obligation to purchase Shares pursuant to this Agreement shall be held at the principal executive offices of the Company.

 

9.                                      Entry of Legend Upon Stock Certificates.        The following legend shall be immediately entered on each stock certificate representing Shares owned by the Shareholders:

 

“Transfer of the shares of AmeriQuest Transportation & Logistics Resources Corporation represented by this certificate is restricted by the terms of that certain Shareholders’ Agreement dated as of the              day of           ,           , a copy of which is on file at the principal executive offices of the Company.”

 

10.                               After-Acquired Shares - Subsequent Shareholders.  The terms and conditions of this Agreement shall specifically apply, not only to Shares owned by Shareholders at the time

 

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of execution of this Agreement, but also to any Shares acquired by any existing Shareholder or any other Shareholder subsequent to such execution.

 

11.                               Notices.  Notices under this Agreement shall be in writing and spent by registered or certified mail, return receipt requested, postage paid, to the Company at its principal executive offices located at and to the Shareholders at their last address as shown on the records of the Company or at such party shall notify the others in writing.

 

12.                               Gender.  Pronouns used herein are to be interpreted as referring to the masculine, feminine and neuter gender.

 

13.                               Severability.  The various provisions of this Agreement are severable from each other and from the rest of this Agreement, and in the event that any part of this Agreement shall be held to be invalid or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be fully effective, operative and enforceable.

 

14.                               Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, donees, successors, transferees and assigns.

 

15.                               Governing Law.  This Agreement shall be construed and interpreted in accordance with the internal laws of the State of New Jersey, without regard to conflicts of laws principles.

 

16.                               Entire Agreement.  This instrument contains the entire agreement of the parties and may not be changed orally but only by an agreement in writing signed by the Company and all persons owning Shares.

 

17.                               Counterparts.  This Agreement may be executed in one or more counterparts each of which shall be deemed an original and all of which shall be deemed to be an original and all of which shall be deemed to be one and the same instrument.

 

18.                               Headings.  The Section headings appearing in this Agreement are for convenience only and do not modify or amend the provisions of this Agreement in any way.

 

19.                               Authorization.  The Company is authorized to enter into this Agreement by virtue of a resolution passed by its Board of Directors.

 

20.                               Joinder.  Each Shareholder who is a natural person agrees to use his or her efforts to cause his or her spouse, if any, to execute the Consent By Spouse in the form attached hereto as Exhibit A.  Each Shareholder’s undertaking contained in this Section 20 shall continue to apply, for as long as this Agreement is in effect, with respect to any current or future spouses of each Shareholder.

 

21.                               Ownership Limitation; Covenant of Certain Shareholders.  Notwithstanding anything contained elsewhere herein to the contrary, any purported transfer of Shares which results in a Shareholder other than Douglas Clark owning or controlling, either directly or through one or more affiliates of associates, more than 10% of the Shares shall be void and the

 

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Company shall not recognize or give effect to any such transfer.  Each Shareholder other than Douglas Clark hereby agrees and covenants that such Shareholder shall not at any time acquire or in any way deliberately own or control, either directly or through one or more affiliates or associates, more than 10% of the Shares.  For purposes of this Section 21, a Shareholder shall be deemed to own or control Shares owned or controlled by such Shareholder’s affiliates or associates.

 

22.                               Termination.  This Agreement shall terminate upon the closing of the Company’s “initial public offering,” defined as an offering to the general public by the Company of Shares effected pursuant to a registration statement filed by the Company with the United States Securities and Exchange Commission under Section 5 of the Securities Act of 1933, as amended, on Form S-1, Form SB-1, or any other form which the Company is eligible to file in connection with an offering of securities to the public generally.

 

23.                               Amendment.  This Agreement may be amended by the written consent of the Company and persons holding a majority of the Shares which are subject to this Agreement.

 

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IN WITNESS WHEREOF, the parties hereto have duly executed these presents as of the day and year first above set forth.

 

	
 
    	
AMERIQUEST   TRANSPORTATION & LOGISTICS RESOURCES CORPORATION
    
	
 
    
	
 
    
	
ATTEST:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
, SECRETARY
    	
 
    	
 
    	
, PRESIDENT
    
	
 
    	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
, SHAREHOLDER
    
	
 
    	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
, SHAREHOLDER
    
	
 
    	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
, SHAREHOLDER
    
	
 
    	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
, SHAREHOLDER
    
	
 
    	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
, SHAREHOLDER
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    
							

 

 

EXHIBIT A

 

CONSENT BY SPOUSE

 

The undersigned, the husband or wife of an individual party to the preceding Shareholders’ Agreement of AmeriQuest Transportation & Logistics Resources Corporation, dated                   ,          and to which this Consent by Spouse is attached, intending to be legally bound, agrees that all of the shares of stock of Amtralease Truck Leasing Services Corporation now owned by his husband or wife, or which may be owned by such husband or wife in the future ( the “Shares”), shall be subject to the provisions of the preceding Agreement, including the provisions of Section 3 (relating to involuntary transfers), and the undersigned acknowledges that the value of any rights he or she may have in the property or estate of his or her husband or wife may be affected by theses provisions.

 

Without limitation to the foregoing, the undersigned hereby waives, releases and relinquishes any and all rights whatsoever that he or she may now have or hereafter acquire, under the present or future laws of any jurisdiction, to share in the Shares of his or her spouse as surviving spouse, heir-at-law or otherwise, including without limitation, inchoate interests, dower, curtesy, family allowance, the right to take in intestacy, any rights as surviving spouse to elect to take against the other’s will (whether heretofore or hereafter made) or against any conveyance made by the other party.  The undersigned further waives, releases and relinquishes any and all appreciation or increase in value of the Shares and/or income, distribution or other economic rights arising out of divorce, including any such rights that may arise under any law requiring equitable distribution of marital property or otherwise.  For purpose of any rights the undersigned may have with respect to the Shares, the undersigned agrees that the Shares shall be completely disregarded.

 

	
WITNESS:
    	
 
    	
 
    	
DATE:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
 
    	
DATE:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
 
    	
DATE:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    

 

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AMENDMENT TO SHAREHOLDERS’ AGREEMENT

 

This Amendment to Shareholders’ Agreement (the “Amendment”) made this         day of                         , 2007 is accepted and approved by the undersigned, a shareholder (the “Shareholder”) in AmeriQuest Transportation & Logistics Resources Corp. (“AmeriQuest” or the “Company”).

 

RECITALS

 

WHEREAS, in connection with the Agreement and Plan of Merger dated as of October 5, 2006 (the “Merger Agreement”) among AmeriQuest, NationaLease Purchasing Corporation (“NPC”) and National Truck Leasing Association, Inc. (“NTLA”), the Company desires to make certain amendments to its Shareholders’ Agreement dated                 ,         , 2007 (the  “Shareholders’ Agreement”);

 

WHEREAS, an entity formerly known as “Amtralease” has ceased to exist;

 

WHEREAS, the Company desires to repurchase its shares based on fair market value under certain circumstances as described herein;

 

WHEREAS, regarding any transfer or purchase of shares by or between the Company and a Shareholder, deposit of the share certificates and additional documents with an escrow agent shall not be a condition precedent to the validity of the transfer or purchase;

 

WHEREAS, the Company desires to have any payment for a transfer of shares due on a closing date; and

 

NOW, THEREFORE, intending to be legally bound, the undersigned hereby agrees to the following:

 

ARTICLE I

 

The Shareholders’ Agreement shall be amended as follows:

 

Sectioin 1.1                                 Amendment to Shareholders’ Agreement.

 

(a)                                 Section 2 is hereby amended and restated in its entirety as follows:

 

“Permitted Transfers.  Any Shareholder may at any time or times sell, transfer or otherwise dispose of any and all Shares to (a) the Company, or (b) subject to the terms and conditions of this Agreement (including without limitation, Sections 4 and 21 hereof), any “Permitted Transferee,” defined as (i) any Shareholder, or (ii) subject to the Company’s approval, any designee of a Shareholder, any such designee being limited to affiliates of such Shareholder or companies affiliated with such

 

 

Shareholder, provided in any case that such transferee agrees to be bound by all of the terms of this Agreement.”

 

(b)                                 Section 3 is hereby amended and restated in its entirety as follows:

 

“Offers Upon Involuntary Transfers.

 

(A)                               If (i) any of the Shares of a Shareholder would for any reason (other than pledge to secure the valid debts of the Company) be transferred by operation of law (including, but not limited to, a transfer arising as a result of the divorce, bankruptcy, receivership, insolvency or similar proceeding of or with respect to a Shareholder, an assignment by a Shareholder for the benefit of creditors, the admission by a Shareholder of its inability to pay its debts when due, a merger, change in control or sale of substantially all of the assets of a Shareholder, or any judicial process, but excluding the death of a Shareholder), or (ii) a Shareholder (or any of its affiliates) breaches, or fails to fulfill its obligations under this Agreement, its Participation Agreement with the Company, or any other agreement between it and the Company (any such event in (i) or (ii) being a “Triggering Event”), such Shareholder (hereinafter, a “Transferring Shareholder”) shall immediately have the obligation to sell to the Company, and the Company shall have the obligation to purchase from the Transferring Shareholder, the Shareholder’s Shares, at a purchase price equal to the fair value of the Shares (“Fair Value of the Shares”).  For purposes of this Agreement, “Fair Value of the Shares” shall mean the per share value of the Shares as of the date of the Triggering Event as determined reasonably and in good faith by the Company’s Board of Directors.  In the event that the Fair Value of the Shares as so determined by the Board of Directors is less than $500, and the Shareholder disagrees with such determination, then the Shareholder may submit to the Company in writing within thirty (30) days its objection, identifying the amount that the Shareholder believes to be the appropriate fair value of the Shares (the “Shareholder Value”).  If the Company and the Shareholder cannot agree on the fair value of the Shares within twenty (20) days of the Company receiving the Shareholder’s written notice, then the Company shall select an independent appraiser to determine the fair value of the Shares (the “Appraised Value”), which determination shall be binding against the parties.  Each of the Company and the Shareholder shall be responsible for that portion of the appraiser’s fee in an amount proportionate to (x) the absolute value of the difference between the Appraised Value and the Fair Value of the Shares as determined by the Company or the Shareholder Value, as the case may be, divided by (y) the total difference between the Fair Value of the Shares as determined by the Company and the Shareholder Value.  The Company shall have the right to set-off, and

 

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be permitted to deduct from the purchase price payable hereunder for the purchase of any Shares, any amounts that the Transferring Shareholder may owe to the Company.

 

(B)                               If, after notice by the Company to a Shareholder of a Triggering Event and the Company’s intention to proceed with a transfer pursuant to this Section 3, and compliance by the Company with the requirements of Section 6 herein, a Shareholder fails to deliver his Shares to the Company prior to the time specified for Closing pursuant to Section 6, the Shareholder’s interest in the Shares shall be deemed canceled effective as of the time of Closing pursuant to Section 6, and the Company shall owe the former Shareholder the purchase price payable for the Shares, without interest.

 

(C)                               The purchase price for all Shares purchased by the Company pursuant to this Section 3 shall be paid in accordance with the provisions of Section 6 hereof.”

 

(c)                                  Section 5 is hereby amended and restated in its entirety as follows:

 

“Transfers upon Death of a Shareholder.

 

(A)                               Upon the death of a Shareholder who is a natural person, subject to Section 5(c) below, the Company shall have the obligation to purchase from the personal representative of the deceased Shareholder, and the personal representative of such deceased Shareholder shall have the obligation to sell to the Company, all of the deceased Shareholder’s Shares.

 

(B)                               The purchase price for the Shares sold and purchased pursuant to this Section 5 shall be the Fair Value of the Shares as defined in Section 3 above, with the Shareholder’s death being the “Triggering Event” for purposes of that definition, and the purchase price for the Shares shall be paid in accordance with the provisions of Section 6 below.  The Company shall have the right to set-off, and be permitted to deduct from the purchase price payable hereunder for the purchase of any Shares, any amounts that the deceased Shareholder may owe to the Company.

 

(C)                               In the event that (i) not later than thirty (30) days prior to the date of the Closing of the sale of the deceased Shareholder’s Shares pursuant to Section 6 below, the Company shall have received written notice from the personal representative of such deceased Shareholder stating that one or more of the deceased Shareholder’s issue, who is, but for the provisions of this Agreement, entitled to receive a bequest of some or all of the

 

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deceased Shareholder’s Shares, request(s) permission to receive such bequest of Shares and desire(s) to participate in the management of the Company participant-entity in whose management the deceased Shareholder was a participant, and (ii) the Company, in its sole discretion, grants such permission by written notice to such personal representative within twenty (20) days after receipt of the personal representative’s notice described above, then neither the Company nor the personal representative shall have any obligation to purchase or sell the Shares subject to such bequest pursuant to Section 5(a) above and such issue shall be permitted to receive such bequest, provided that such issue execute(s) a written commitment to be bound by the provisions of this Agreement as provided by Section 7 below.”

 

(d)                                 Section 6 is hereby amended and restated in its entirety as follows:

 

“Payment of Purchase Price.  All Shares purchased pursuant to Sections 3, 4 or 5 of this Agreement shall be paid for in the following manner:

 

(A)                               The purchase price for any Shares purchased by the Company pursuant to Section 3 or 5 hereof shall be paid in cash to the Transferring Shareholder or the deceased Shareholder’s personal representative, as applicable, (the “Selling Shareholder”) on the date of the closing of the sale (the “Closing”), as provided for in Section 6(c) below.

 

(B)                               The purchase price for any Shares purchased by the Company pursuant to Section 4 hereof shall be payable in the manner provided for in such Section 4.

 

(C)                               Unless another date is mutually acceptable to the Company and the Selling Shareholder, Closing shall occur (i) in the case of a purchase pursuant to Section 3 above, not later than the thirtieth (30th) day following the date of final determination of the per-share purchase price, (ii) in the case of a purchase pursuant to Section 4 above, not later than the thirtieth (30th) day following the date which is the last day for exercise of the right to purchase the Shares by the Company, and (iii) in the case of a purchase pursuant to Section 5 above, 120 days following the date of the deceased Shareholder’s death.

 

(D)                               Prior to Closing, the Selling Shareholder shall deposit the certificates representing the Shares to be sold accompanied by executed stock powers, any transfer stamps applicable thereto, and an Assignment Separate from Certificate, if necessary, (collectively, the “Transfer Documents”) with an escrow agent mutually acceptable to the Company and the Selling Shareholder, which

 

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escrow agent shall release the Shares to the Company at Closing.  Notwithstanding the above language, the Selling Shareholder’s deposit of the Transfer Documents pursuant to this Section shall not be a condition precedent to the purchase or transfer of the Shares, and a Selling Shareholder’s failure to deposit the Transfer Documents pursuant to this Section shall not affect the validity or enforceability of any Share purchase, transfer or Closing.”

 

(e)                                  Section 16 is hereby amended and restated in its entirety as follows:

 

“Entire Agreement.  This instrument contains the entire agreement of the parties concerning the subject-matter hereof.”

 

(f)                                   Exhibit A is hereby amended and restated in its entirety as follows:

 

“EXHIBIT A

 

CONSENT BY SPOUSE

 

The undersigned, the husband or wife of an individual party to the preceding Amended and Restated Shareholders’ Agreement dated                   ,         , 2007 (the “Agreement”) of AmeriQuest Transportation and Logistics Resources Corporation (the “Company”), and to which this Consent by Spouse is attached, intending to be legally bound, agrees that all of the shares of stock of the Company now owned by his husband or wife, or which may be owned by such husband or wife in the future (the “Shares”), shall be subject to the provisions of the Agreement, including the provisions of Section 3 (relating to involuntary transfers ), and the undersigned acknowledges that the value of any rights he or she may have in the property or estate of his or her husband or wife may be affected by theses provisions.

 

Without limitation to the foregoing, the undersigned hereby waives, releases and relinquishes any and all rights whatsoever that he or she may now have or hereafter acquire, under the present or future laws of any jurisdiction, to share in the Shares of his or her spouse as surviving spouse, heir-at-law or otherwise, including without limitation, inchoate interests, dower, curtesy, family allowance, the right to take in intestacy, any rights as surviving spouse to elect to take against the other’s will (whether heretofore or hereafter made) or against any conveyance made by the other party.  The undersigned further waives, releases and relinquishes any and all appreciation or increase in value of the Shares and/or income, distribution or other economic rights arising out of divorce, including any such rights that may arise under any law requiring equitable distribution of marital property or otherwise.  For purpose of any rights the undersigned may have with respect to the Shares, the undersigned agrees that the Shares shall be completely disregarded.”

 

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ARTICLE II

 

MISCELLANEOUS

 

Sectioin 2.1                                 Specific Enforcement.  It is agreed and understood that monetary damages would not adequately compensate an injured party for the breach of this Amendment by any party, that this Amendment shall be specifically enforceable, and that any breach or threatened breach of this Amendment shall be the proper subject of a temporary or permanent injunction or restraining order.  Further, each party hereto waives any claim or defense that there is an adequate remedy at law for such breach or threatened breach.

 

Sectioin 2.2                                 Captions.  The captions, headings and arrangements used in this Amendment are for convenience only and do not in any way limit or amplify the terms and provisions hereof.

 

Sectioin 2.3                                 Notices.  All notices, requests, consents and other communications required or permitted to be given under this Amendment shall be in writing and shall be deemed effectively given upon delivery if delivered in person, or five (5) days (or earlier if received) after deposit with a nationally recognized overnight courier or first class or registered or certified mail, return receipt requested, postage prepaid, addressed to such party at the address indicated for such party on the signature page to this Amendment or at such address as such party may designate on ten (10) days’ advance written notice to the other parties.  A facsimile notice shall be deemed effectively given at the time of confirmed transmission only if confirmed by one of the previously described forms of delivery.

 

Sectioin 2.4                                 Amendments and Waivers.  The observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only in a writing signed by the Company and the Shareholders.

 

Sectioin 2.5                                 Severability.  The invalidity or unenforceability of any provision of this Amendment shall not affect the validity or enforceability of any other provisions of this Amendment, which shall remain in full force and effect.  If any of the covenants or provisions of this Amendment are determined to be unenforceable by reason of its extent, duration, scope or otherwise, then the parties contemplate that the court making such determination shall reduce such extent, duration, scope or other provision and enforce them in their reduced form for all purposes contemplated by this Amendment.

 

Sectioin 2.6                                 Binding Effect.  In addition to any restriction or transfer that may be imposed by any other agreement by which any party hereto may be bound, this Amendment shall be binding upon the parties, their respective heirs, successors and assigns and to such additional individuals or entities that may become stockholders of the Company and that desire to become parties hereto.

 

Sectioin 2.7                                 Interpretation.  Unless the context otherwise requires, all capitalized terms used herein shall have the meaning ascribed to them in the Merger Agreement.

 

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Sectioin 2.8                                 Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of New Jersey, without regard to conflicts of law principles thereof.

 

Sectioin 2.9                                 Entire Agreement.  This Amendment is intended to be the sole agreement of the parties as it relates to this subject matter and does hereby supersede all other agreements of the parties relating to the subject matter hereof.

 

Sectioin 2.10                          Counterparts.  This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

Sectioin 2.11                          Effectiveness.  This Amendment shall become effective in accordance with the terms of the Shareholders’ Agreement; provided, that Sections 1.1(b), (c) and (d) hereof shall not be effective unless and until the Effective Time (as defined in the Merger Agreement).

 

IN WITNESS WHEREOF, each of the undersigned has duly executed or has caused this Amendment to be executed by their respective duly authorized officers as of the day and year first above set forth.

 

	
ATTEST:
    	
 
    	
 
    	
AMERIQUEST   TRANSPORTATION & LOGISTICS RESOURCES CORPORATION
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
, SECRETARY
    	
 
    	
 
    	
 
    	
DOUGLAS   CLARK, PRESIDENT
    
	
 
    	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
, SECRETARY
    	
 
    	
 
    	
, SHAREHOLDER
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    	
 
    
							

 

7Exhibit 10.1

 

AMERIQUEST, INC.

 

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (this “Agreement”) is dated as of [insert date], and is between AmeriQuest, Inc., a Delaware corporation (the “Company”), and the undersigned (“Indemnitee”).

 

RECITALS

 

A.                                    Indemnitee’s service to the Company substantially benefits the Company.

 

B.                                    Individuals are reluctant to serve as directors or officers of corporations or in certain other capacities unless they are provided with adequate protection through insurance or indemnification against the risks of claims and actions against them arising out of such service.

 

C.                                    Indemnitee does not regard the protection currently provided by applicable law, the Company’s governing documents and any insurance as adequate under the present circumstances, and Indemnitee may not be willing to serve as a director or officer without additional protection.

 

D.                                    In order to induce Indemnitee to continue to provide services to the Company, it is reasonable, prudent and necessary for the Company to contractually obligate itself to indemnify, and to advance expenses on behalf of, Indemnitee as permitted by applicable law.

 

E.                                     This Agreement is a supplement to and in furtherance of the indemnification provided in the Company’s certificate of incorporation and bylaws, and any resolutions adopted pursuant thereto, and this Agreement shall not be deemed a substitute therefor, nor shall this Agreement be deemed to limit, diminish or abrogate any rights of Indemnitee thereunder.

 

The parties therefore agree as follows:

 

1.                                      Definitions.

 

(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) is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding securities;

 

(ii)          Change in Board Composition. During any period of two consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Company’s board of directors, and any new directors (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Sections 1(a)(i), 1(a)(iii) or 1(a)(iv)) whose election by the board of directors or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds 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 Company’s board of directors;

 

 

(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 50% 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. 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 in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended, whether or not the Company is then subject to such reporting requirement.

 

For purposes of this Section 1(a), the following terms shall have the following meanings:

 

(1)         “Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended; 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.

 

(2)         “Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 under the Securities Exchange Act of 1934, as amended; provided, however, that “Beneficial Owner” shall exclude any Person otherwise becoming a Beneficial Owner by reason of (i) the stockholders of the Company approving a merger of the Company with another entity or (ii) the Company’s board of directors approving a sale of securities by the Company to such Person.

 

(b)                                 “Corporate Status” describes the status of a person who is or was a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of the Company or any other Enterprise.

 

(c)                                  “DGCL” means the General Corporation Law of the State of Delaware.

 

(d)                                 “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.

 

(e)                                  “Enterprise” means the Company and any other corporation, partnership, limited liability company, 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, trustee, general partner, managing member, officer, employee, agent or fiduciary.

 

(f)                                   “Expenses” include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees and costs 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

 

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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 their equivalent, and (ii) for purposes of Section 12(c), Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

 

(g)                                  “Independent Counsel” means a law firm, or a partner or 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 as Independent Counsel with respect to matters concerning Indemnitee under this Agreement, or 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.

 

(h)                                 “Proceeding” means any threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative or investigative nature, including any appeal therefrom and including without limitation any such Proceeding pending as of the date of this Agreement, in which Indemnitee was, is or will be involved as a party, a potential party, a non-party witness or otherwise by reason of (i) the fact that Indemnitee is or was a director or officer of the Company, (ii) any action taken by Indemnitee or any action or inaction on Indemnitee’s part while acting as a director or officer of the Company, or (iii) the fact that he or she is or was serving at the request of the Company as a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of the Company or any other Enterprise, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification or advancement of expenses can be provided under this Agreement.

 

(i)                                     Reference to “other enterprises” shall include employee benefit plans; references to “fines” shall include any excise taxes assessed on a person 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 or she 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 a manner “not opposed to the best interests of the Company” as referred to in this Agreement.

 

2.                                      Indemnity in Third-Party Proceedings. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 2 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 2, 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 or her behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his or her conduct was unlawful.

 

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3.                                      Indemnity in Proceedings by or in the Right of the Company. 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 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 actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he or she 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 3 in respect of any claim, issue or matter as to which Indemnitee shall have been adjudged by a court of competent jurisdiction 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 for such expenses as the Delaware Court of Chancery or such other court shall deem proper.

 

4.                                      Indemnification for Expenses of a Party Who is Wholly or Partly Successful. To the extent that Indemnitee is a party to or a participant in and is successful (on the merits or otherwise) in defense of any Proceeding or any claim, issue or matter therein, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith. To the extent permitted by applicable law, if Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, in defense of 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 Indemnitee or on Indemnitee’s behalf in connection with (a) each successfully resolved claim, issue or matter and (b) any claim, issue or matter related to any such successfully resolved claim, issue or matter. For purposes of this section, 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.

 

5.                                      Indemnification for Expenses of a Witness. To the extent that Indemnitee is, by reason of his or her Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified to the extent permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.

 

6.                                      Additional Indemnification.

 

(a)                                 Notwithstanding any limitation in Sections 2, 3 or 4, the Company shall indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee is, or is threatened to be made, a party to or a participant in 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 or on his or her behalf in connection with the Proceeding or any claim, issue or matter therein.

 

(b)                                 For purposes of Section 6(a), the meaning of the phrase “to the fullest extent permitted by applicable law” shall include, but not be limited to:

 

(i)             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

 

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(ii)          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.

 

7.                                      Exclusions. Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity in connection with any Proceeding (or any part of any Proceeding):

 

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

 

(b)                                 for an accounting or disgorgement of profits pursuant to Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of federal, state or local statutory law or common law, if Indemnitee is held liable therefor (including pursuant to any settlement arrangements);

 

(c)                                  for any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of the Company, as required in each case under the Securities Exchange Act of 1934, as amended (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), if Indemnitee is held liable therefor (including pursuant to any settlement arrangements);

 

(d)                                 initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees, agents or other indemnitees, unless (i) the Company’s board of directors authorized the Proceeding (or the relevant part of the Proceeding) prior to its initiation, (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law, (iii) otherwise authorized in Section 12(c) or (iv) otherwise required by applicable law; or

 

(e)                                  if prohibited by applicable law.

 

8.                                      Advances of Expenses. The Company shall advance the Expenses incurred by Indemnitee in connection with any Proceeding, and such advancement shall be made as soon as reasonably practicable, but in any event no later than 60 days, after the receipt by the Company of a written statement or statements requesting such advances from time to time (which shall include invoices received by Indemnitee in connection with such Expenses but, in the case of invoices in connection with legal services, any references to legal work performed or to expenditure made that would cause Indemnitee to waive any privilege accorded by applicable law shall not be included with the invoice). Advances shall be unsecured and interest free and made without regard to Indemnitee’s ability to repay such advances. Indemnitee hereby undertakes to repay any advance to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company. This Section 8 shall not apply to the extent advancement is prohibited by law and shall not apply to any Proceeding for which indemnity is not permitted under this Agreement, but shall apply to any Proceeding referenced in Section 7(b) or 7(c) prior to a determination that Indemnitee is not entitled to be indemnified by the Company.

 

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9.                                      Procedures 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 as soon as reasonably practicable following the receipt by Indemnitee of notice thereof. The written notification to the Company shall include, in reasonable detail, a description of the nature of the Proceeding and the facts underlying the Proceeding. The failure by Indemnitee to notify the Company 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, except to the extent that such failure or delay materially prejudices the Company.

 

(b)                                 If, at the time of the receipt of a notice of a Proceeding pursuant to the terms hereof, the Company has directors’ and officers’ liability insurance in effect, the Company shall give prompt notice of the commencement of the Proceeding to the insurers in accordance with the procedures set forth in the applicable policies. The Company shall thereafter take all commercially-reasonable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.

 

(c)                                  In the event the Company may be obligated to make any indemnity in connection with a Proceeding, the Company shall be entitled to assume the defense of such Proceeding with counsel approved by Indemnitee, which approval shall not be unreasonably withheld, upon the delivery to Indemnitee of written notice of its election to do so. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee for any fees or expenses of counsel subsequently incurred by Indemnitee with respect to the same Proceeding. Notwithstanding the Company’s assumption of the defense of any such Proceeding, the Company shall be obligated to pay the fees and expenses of Indemnitee’s counsel to the extent (i) the employment of counsel by Indemnitee is authorized by the Company, (ii) counsel for the Company or Indemnitee shall have reasonably concluded that there is a conflict of interest between the Company and Indemnitee in the conduct of any such defense such that Indemnitee needs to be separately represented, (iii) the Company is not financially or legally able to perform its indemnification obligations or (iv) the Company shall not have retained, or shall not continue to retain, such counsel to defend such Proceeding. The Company shall have the right to conduct such defense as it sees fit in its sole discretion. Regardless of any provision in this Agreement, Indemnitee shall have the right to employ counsel in any Proceeding at Indemnitee’s personal expense. The Company shall not be entitled, without the consent of Indemnitee, to assume the defense of any claim brought by or in the right of the Company.

 

(d)                                 Indemnitee shall give the Company such information and cooperation in connection with the Proceeding as may be reasonably appropriate.

 

(e)                                  The Company shall not be liable to indemnify Indemnitee for any settlement of any Proceeding (or any part thereof) without the Company’s prior written consent, which shall not be unreasonably withheld.

 

(f)                                   The Company shall not settle any Proceeding (or any part thereof) without Indemnitee’s prior written consent, which shall not be unreasonably withheld.

 

10.                               Procedures upon Application for Indemnification.

 

(a)                                 To obtain indemnification, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee

 

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and as is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of the Proceeding. Any delay in providing the request will not relieve the Company from its obligations under this Agreement, except to the extent such failure is prejudicial.

 

(b)                                 Upon written request by Indemnitee for indemnification pursuant to Section 10(a), a determination 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 Company’s board of directors, 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 Company’s board of directors, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Company’s board of directors, (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the Company’s board of directors, a copy of which shall be delivered to Indemnitee or (D) if so directed by the Company’s board of directors, by the stockholders of the Company. If it is determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten days after such determination. Indemnitee shall cooperate with the person, persons or entity making the 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 that is not privileged or otherwise protected from disclosure and that is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees and disbursements) reasonably incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company, to the extent permitted by applicable law.

 

(c)                                  In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 10(b), the Independent Counsel shall be selected as provided in this Section 10(c). If a Change in Control shall not have occurred, the Independent Counsel shall be selected by the Company’s board of directors, and the Company shall give written notice to Indemnitee advising him or her 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 Company’s board of directors, 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 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 1 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 20 days after the later of (i) submission by Indemnitee of a written request for indemnification pursuant to Section 10(a) hereof and (ii) the final disposition of the Proceeding, the parties have not agreed upon an Independent Counsel, 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 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 10(b) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 12(a) of this Agreement, the Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

 

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(d)                                 The Company agrees to pay the reasonable fees and expenses of any Independent Counsel 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.

 

11.                               Presumptions and Effect of Certain Proceedings.

 

(a)                                 In making a determination with respect to entitlement to indemnification hereunder, the person, 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 such person, persons or entity of any determination contrary to that presumption.

 

(b)                                 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 create a presumption that Indemnitee did not act in good faith and in a manner which he or she 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 or her conduct was unlawful.

 

(c)                                  For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith to the extent Indemnitee relied in good faith on (i) the records or books of account of the Enterprise, including financial statements, (ii) information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, (iii) the advice of legal counsel for the Enterprise or its board of directors or counsel selected by any committee of the board of directors or (iv) information or records given or reports made to the Enterprise by an independent certified public accountant, an appraiser, investment banker or other expert selected with reasonable care by the Enterprise or its board of directors or any committee of the board of directors. The provisions of this Section 11(c) shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

 

(d)                                 Neither the knowledge, actions nor failure to act of any other director, officer, agent or employee of the Enterprise shall be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

 

12.                               Remedies of Indemnitee.

 

(a)                                 Subject to Section 12(d), in the event that (i) a determination is made pursuant to Section 10 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 8 or 12(c) of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10 of this Agreement within 90 days after the later of the receipt by the Company of the request for indemnification or the final disposition of the Proceeding, (iv) payment of indemnification pursuant to this Agreement is not made (A) within ten days after a determination has been made that Indemnitee is entitled to indemnification or (B) with respect to indemnification pursuant to Sections 4, 5 and 12(c) of this Agreement, within 30 days after receipt by the Company of a written request therefor, or (v) the Company or any other person or entity 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, Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, Indemnitee shall be entitled to an adjudication by a court of competent jurisdiction of his or her entitlement to such indemnification or advancement of Expenses. Alternatively,

 

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Indemnitee, at his or her option, may seek an award in arbitration with respect to his or her entitlement to such indemnification or advancement of Expenses, 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 12(a); provided, however, that the foregoing clause shall not apply in respect of a proceeding brought by Indemnitee to enforce his or her rights under Section 4 of this Agreement. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration in accordance with this Agreement.

 

(b)                                 Neither (i) the failure of the Company, its board of directors, any committee or subgroup of the board of directors, Independent Counsel or stockholders to have made a determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor (ii) an actual determination by the Company, its board of directors, any committee or subgroup of the board of directors, Independent Counsel or stockholders that Indemnitee has not met the applicable standard of conduct, shall create a presumption that Indemnitee has or has not met the applicable standard of conduct. In the event that a determination shall have been made pursuant to Section 10 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 12 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 12, the Company shall, to the fullest extent not prohibited by law, have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.

 

(c)                                  To the extent not prohibited by law, the Company shall indemnify Indemnitee against all Expenses that are incurred by Indemnitee in connection with any action for indemnification or advancement of Expenses from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company to the extent Indemnitee is successful in such action, and, if requested by Indemnitee, shall (as soon as reasonably practicable, but in any event no later than 60 days, after receipt by the Company of a written request therefor) advance such Expenses to Indemnitee, subject to the provisions of Section 8.

 

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

 

13.                               Contribution. To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amounts incurred by Indemnitee, whether for Expenses, judgments, fines or amounts paid or to be paid in settlement, 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 events and transactions giving rise to such Proceeding; and (ii) the relative fault of Indemnitee and the Company (and its other directors, officers, employees and agents) in connection with such events and transactions.

 

14.                               Non-exclusivity. 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 or bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. 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 certificate of incorporation and bylaws and this Agreement,

 

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it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change, subject to the restrictions expressly set forth herein or therein. Except as expressly set forth herein, 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. Except as expressly set forth herein, 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.

 

15.                               No Duplication of Payments. The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (or for which advancement is provided hereunder) if and to the extent that Indemnitee has otherwise actually received payment for such amounts under any insurance policy, contract, agreement or otherwise.

 

16.                               Insurance. To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, trustees, general partners, managing members, officers, employees, agents or fiduciaries of the Company or any other Enterprise, Indemnitee shall be covered by such policy or policies to the same extent as the most favorably-insured persons under such policy or policies in a comparable position.

 

17.                               Subrogation. 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.

 

18.                               Services to the Company. Indemnitee agrees to serve as a director or officer of the Company or, at the request of the Company, as a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of another Enterprise, for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders his or her resignation or is removed from such position. 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 any employment with the Company (or any of its subsidiaries or any Enterprise) is at will, and Indemnitee may be discharged at any time for any reason, with or without cause, with or without notice, except as may be otherwise expressly provided in any executed, written employment contract between Indemnitee and the Company (or any of its subsidiaries or any Enterprise), any existing formal severance policies adopted by the Company’s board of directors or, with respect to service as a director or officer of the Company, the Company’s certificate of incorporation or bylaws or the DGCL. No such document shall be subject to any oral modification thereof.

 

19.                               Duration. This Agreement shall continue until and terminate upon the later of (a) ten years after the date that Indemnitee shall have ceased to serve as a director or officer of the Company or as a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of any other Enterprise, as applicable; or (b) one year after the final termination of any Proceeding, including any appeal, 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 12 of this Agreement relating thereto.

 

20.                               Successors. This Agreement shall be binding upon the Company and its successors and assigns, including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or

 

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substantially all of the business or assets of the Company, and shall inure to the benefit of Indemnitee and Indemnitee’s heirs, executors and administrators. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, by written agreement, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

 

21.                               Severability. Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in violation of applicable law. The Company’s inability, pursuant to court order or other applicable law, to perform its obligations under this Agreement shall not constitute a breach of this Agreement. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (i) 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; (ii) 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 (iii) 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.

 

22.                               Enforcement. 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.

 

23.                               Entire Agreement. 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 Company’s certificate of incorporation and bylaws and applicable law.

 

24.                               Modification and Waiver. No supplement, modification or amendment to this Agreement shall be binding unless executed in writing by the parties hereto. No amendment, alteration or repeal of this Agreement shall adversely affect any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his or her Corporate Status prior to such amendment, alteration or repeal. No waiver of any of the provisions of this Agreement shall constitute or be deemed a waiver of any other provision of this Agreement nor shall any waiver constitute a continuing waiver.

 

25.                               Notices. All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, sent by facsimile or electronic mail or otherwise delivered by hand, messenger or courier service addressed:

 

(a)                                 if to Indemnitee, to Indemnitee’s address, facsimile number or electronic mail address as shown on the signature page of this Agreement or in the Company’s records, as may be updated in accordance with the provisions hereof; or

 

(b)                                 if to the Company, to the attention of the Chief Executive Officer or Chief Financial Officer of the Company at 457 Haddonfield Road, Suite 220, Cherry Hill, NJ 08002, or at such other current

 

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address as the Company shall have furnished to Indemnitee, with a copy (which shall not constitute notice) to Michael C. Labriola, Wilson Sonsini Goodrich & Rosati, P.C., 1700 K St. NW, Fifth Floor, Washington, DC 20006.

 

Each such notice or other communication shall for all purposes of this Agreement be treated as effective or having been given (i) if delivered by hand, messenger or courier service, when delivered (or if sent via a nationally-recognized overnight courier service, freight prepaid, specifying next-business-day delivery, one business day after deposit with the courier),  (ii) if sent via mail, at the earlier of its receipt or five days after the same has been deposited in a regularly-maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid, or (iii) if sent via facsimile, upon confirmation of facsimile transfer or, if sent via electronic mail, upon confirmation of delivery when directed to the relevant electronic mail address, if sent during normal business hours of the recipient, or if not sent during normal business hours of the recipient, then on the recipient’s next business day.

 

26.                               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 12(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 of Chancery, 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 of Chancery 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, The Corporation Service Company, Wilmington, Delaware 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 of Chancery, and (v) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court of Chancery has been brought in an improper or inconvenient forum.

 

27.                               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. This Agreement may also be executed and delivered by facsimile signature and in 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.

 

28.                               Captions. 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.

 

(signature page follows)

 

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The parties are signing this Indemnification Agreement as of the date stated in the introductory sentence.

 

	
 
    	
AMERIQUEST, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
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[INSERT   INDEMNITEE NAME]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
(Signature)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
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(Street address)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
(City, State and ZIP)

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