SEC Contract Filing

Filing Date: 2018-02-26

Document Content:
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex_106114.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<p style="margin-bottom: 0px; text-align: right; margin-top: 0px"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt"><b>Exhibit 10.1</b></font></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;text-transform:uppercase;"><b>RUSH ENTERPRISES, INC.<br>
<font style="font-family:'Times New Roman', Times, serif;font-size:10pt;text-transform:uppercase;">EXECUTIVE TRANSITION PLAN</font></b><br>
<font style="font-family:'Times New Roman', Times, serif;font-size:10pt;text-transform:uppercase;"><b>(A</b></font><font style="font-family:'Times New Roman', Times, serif;font-size:10pt;"><b>s Amended and Restated Effective as of </b><b>February</b><b> </b><b>20</b><b>, 201</b><b>8</b><b>)</b></font></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Background and </u><font style="font-family:'Times New Roman', Times, serif;font-size:10pt;"><u>Purpose</u>. </font></p>

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<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify; text-indent: 72pt;">(a)<font style="font-family:'Times New Roman', Times, serif;font-size:10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board originally adopted this Executive Transition Plan (the &ldquo;Plan&rdquo;) effective July 23, 2008, to provide certain protections to covered executives in the event their employment is involuntarily terminated, including in connection with a Change in Control of the Company. It is intended that having the protections provided by the Plan will alleviate personal concerns that Participants might otherwise have about uncertainties that may arise in the face of certain business exigencies and opportunities the Company may have from time to time and, in turn, provide greater assurance to the Company and its shareholders that the covered executives will be able to maintain their undivided focus on and attention to the business and interests of the Company and the enhancement of shareholder value. </font></p>

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<p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify; text-indent: 72pt;">(b)<font style="font-family:'Times New Roman', Times, serif;font-size:10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board has now adopted this amendment and restatement effective as of February 20, 2018, to further align the Plan with evolving best practices and to reflect the Company&rsquo;s current compensation framework by: (a) changing the calculation of the cash amount payable hereunder to a Level 1 Employee upon an Involuntary Termination (including in connection with a Change of Control); (b) updating the definition of Change in Control; (c) updating the definition of Good Reason; (d) removing reference to a Level 4 Participant; (e) providing that amounts payable hereunder are subject to the Company&rsquo;s compensation recoupment policy, as in effect from time to time; and (f) clarifying that nothing in Exhibit B prohibits a Participant from disclosing confidential information if such disclosure is required by law or legal process.</font></p>

<p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Certain Definitions</u><font style="font-family:'Times New Roman', Times, serif;font-size:10pt;">.</font></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:72pt;">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;Affiliate&rdquo; means any entity at least 50%<font style="font-family:'Times New Roman', Times, serif;font-size:10pt;"><b> </b>of the voting, capital or profit interests of which are owned directly or indirectly by the Company.</font></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:72pt;">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;Annual Cash Bonus&rdquo; means the amount payable to a Participant under the terms of any bonus program sponsored by the Company in which the Participant is eligible to participate.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:72pt;">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;Base Salary&rdquo; means with respect to a Participant,