Exhibit 10.2
AMENDED AND RESTATED EMPLOYMENT
AGREEMENT
AGREEMENT , made this 24th day of October, 2006, by and
between Saia, Inc., a Delaware corporation (“Saia”) and
Anthony D. Albanese (the “Executive”). The parties
hereto are parties to an existing Employment Agreement and wish to
amend and restate the Employment Agreement as follows:
WITNESSETH
WHEREAS , the Board of Directors of Saia has approved
the employment of the Executive on the terms and conditions set
forth in this Agreement; and
WHEREAS , the Executive is willing, for the
consideration provided, to enter into employment with Saia on the
terms and conditions set forth in this Agreement.
NOW, THEREFORE , the parties, intending to be legally bound,
agree as follows:
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1.
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Employment. Saia hereby agrees to employ the Executive, and
the Executive hereby accepts such employment, upon the terms and
conditions set forth in this Agreement.
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2.
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Term. The term of this Agreement shall be for two
years from the date hereof (the “Effective Date”), with
said term renewing daily, and ending on the date of termination of
the Executive’s employment determined pursuant to
Section 5, 6 or 7, whichever shall be applicable.
Notwithstanding any other provision in this Agreement to the
contrary, if this Agreement has not been earlier terminated, it
shall automatically expire on the twentieth (20 th )
anniversary of the Effective Date.
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3.
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Position and
Duties. The Executive
shall serve as Senior Vice President, Operations and Sales, and
shall have such responsibilities and authority as commensurate with
such offices and as may from time to time be prescribed by or
pursuant to Saia’s bylaws. The Executive shall devote
substantially all of his working time and efforts to the business
and affairs of Saia.
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4.
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Compensation. During the period of the Executive’s
employment, Saia shall provide the Executive with the following
compensation and other benefits:
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(a)
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Base
Salary . Saia shall pay
to the Executive base salary at the rate of $264,000.00 per annum
which shall be payable in accordance with the standard payroll
practices of Saia. Such base salary rate shall be reviewed annually
in accordance with Saia’s normal policies beginning in
calendar year 2006 for calendar year 2007; provided, however, that
at no time during the term of this Agreement shall the
Executive’s base salary be decreased from the rate then in
effect.
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(b)
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Annual
Bonus. The Executive
shall participate in a bonus program established and maintained by
Saia, which shall be paid by Saia. The criteria for establishment
of the parameters for payments shall be determined annually by the
Compensation Committee of the Board of Directors of
Saia.
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(c)
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Long-Term
Incentive Awards . The
Compensation Committee of the Board of Directors of Saia shall
determine the form and amount of any long-term incentive awards, if
any, to be granted to the Executive and the terms and conditions of
any such awards.
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(d)
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Other
Benefits . In addition to
the compensation and benefits otherwise specified in this
Agreement, the Executive (and, if provided for under the applicable
plan or program, his spouse) shall be entitled to participate in,
and to receive benefits under, Saia’s employee benefit plans
and programs that are or may be available to senior executives
generally and on terms and conditions that are no less favorable
than those generally applicable to other senior executives of
Saia.
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(e)
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Expenses . The Executive shall be entitled to prompt
reimbursement of all reasonable expenses incurred by him in
performing services hereunder, provided he properly accounts
therefore in accordance with Saia’s policies. Such expenses
shall be reimbursed no later than 2 1/2 months
after the end of the year in which they were incurred.
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(f)
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Office and
Services Furnished . Saia
shall furnish the Executive with office space, secretarial
assistance and such other facilities and services as shall be
suitable to the Executive’s position and adequate for the
performance of his duties hereunder.
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5.
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Termination
of Employment by Saia .
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(a)
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Cause . Saia may terminate the Executive’s
employment for “Cause” if the Executive willfully
engages in conduct which is materially and demonstrably injurious
to Saia or any of its affiliates (as defined below) or willfully
engages in an act or acts of dishonesty resulting in material
personal gain to the Executive at the expense of Saia or any of its
affiliates. Saia shall exercise its right to terminate the
Executive’s employment for Cause by (i) giving him
written notice of termination at least 30 days before the date
of such termination specifying in reasonable detail the
circumstances constituting such Cause; and (ii) delivering to
the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than a majority of the entire
membership of the Board of Directors after reasonable notice to the
Executive and an opportunity for the Executive and his counsel to
be heard before the Board of Directors, finding that the Executive
has engaged in the conduct set forth in this subsection (a). In the
event of such termination of the Executive’s employment for
Cause, the Executive shall be entitled to receive (i) his base
salary pursuant to Section 4(a) and any other compensation and
benefits to the extent actually earned pursuant to this Agreement
or any benefit plan or program of Saia as of the date of such
termination at the normal time for payment of such salary,
compensation or benefits, and (ii) any amounts owing under
Section 4(e). In addition, in the event of such termination of
the Executive’s employment for Cause, all outstanding options
to purchase common stock of Saia held by the Executive at the
effective date of such termination which had not already been
exercised shall be forfeited. Except as provided in Section 9,
the Executive shall receive no other compensation or benefits from
Saia or any of its affiliates.
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(b)
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Disability . If the Executive incurs a Permanent and Total
Disability, as defined below, Saia may terminate the
Executive’s employment by giving him written notice of
termination at least 30 days before the date of such
termination. In the event of such termination of the
Executive’s employment because of Permanent and Total
Disability, (i) the Executive shall be entitled to receive his
base salary pursuant to Section 4(a) and any other compensation and
benefits to the extent actually earned by the Executive pursuant to
this Agreement or any benefit plan or program of Saia as of the
date of such termination of employment at the normal time for
payment of such salary, compensation or benefits and any amounts
owing under Section 4(e), and (ii) all outstanding stock
options to purchase common stock of Saia held by the Executive at
the time of his termination of employment shall become immediately
exercisable at that time, and the Executive shall have one year
from the date of such termination of employment to exercise any or
all of such outstanding options (but not beyond the term of such
option). For purposes of this Agreement, the Executive shall be
considered to have incurred a “Permanent and Total
Disability” if he is unable to engage in any substantial
gainful employment by reason of any materially determinable
physical or mental impairment which can be expected to result in
death or which has lasted or can be expected to last for a
continuous period of not less than 12 months. The existence of
such Permanent and Total Disability shall be evidenced by such
medical certification as the Secretary of Saia shall require and
shall be subject to the approval of the Compensation Committee of
the Board of Directors of Saia.
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(c)
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Without
Cause . Saia may
terminate the Executive’s employment at any time and for any
reason, other than for Cause or because of Permanent and Total
Disability, by giving him a written notice of termination to that
effect at least 30 days before the date of termination. In the
event of such termination of the Executive’s employment
without Cause, and provided Executive fully complies with his
obligations under Sections 11 and 12 of this Agreement, then
Executive shall be entitled to the benefits described in
Section 8. Executive shall forfeit the benefits described in
Section 8 in the event he violates his obligations under
Sections 11 or 12 of this Agreement.
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6.
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Termination
of Employment by the Executive .
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(a)
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Good
Reason . The Executive
may terminate his employment for Good Reason by giving Saia a
written notice of termination at least 30 days before the date
of such termination specifying in reasonable detail the
circumstances constituting such Good Reason. In the event of the
Executive’s termination of his employment for Good Reason,
and provided that Executive fully complies with his obligations
under Sections 11 and 12 of this Agreement, then Executive
shall be entitled to the benefits described in Section 8.
Executive shall forfeit the benefits described in Section 8 in
the event he violates his obligations under Sections 11 or 12
of this Agreement. For purposes of this Agreement, “Good
Reason” shall mean (i) the failure of Saia in any
material way either to pay or provide to the Executive the
compensation and benefits that he is entitled to receive pursuant
to this Agreement by the later of (A) 60 days after the
applicable due date or (B) 30 days after the Executive’s
written demand for payment, or (ii) the assignment to the
Executive of any duties that are materially inconsistent with those
of a Senior Vice President of a company that results in a
diminution in the Executive’s normal duties, responsibilities
and authority as described in Section 3; provided, that, the
promotion of Executive to a more senior position with Saia or the
transfer of the Executive to a comparable or more senior position
with another subsidiary of Saia shall not be deemed to give rise to
Executive’s right to terminate his employment for “Good
Reason”, or (iii) Executive’s receipt of notice
from Saia of the cut-off of the automatic renewal of the term of
this Agreement as described in Section 2 above.
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(b)
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Other . The Executive may terminate his employment at
any time and for any reason, other than pursuant to subsection
(a) above, by giving Saia a written notice of termination to
that effect at least 30 days before the date of termination.
In the event of the Executive’s termination of his employment
pursuant to this subsection (b), the Executive shall be entitled to
receive (i) his base salary pursuant to Section 4(a) and any
other compensation and benefits to the extent actually earned by
the Executive pursuant to this Agreement or any benefit plan or
program of Saia as of the date of such termination at the normal
time for payment of such salary, compensation or benefits, and
(ii) any amounts owing under Section 4(e). In the event
of the Executive’s termination of his employment pursuant to
this subsection (b), all outstanding options to purchase common
stock of Saia held by the Executive not previously exercised by the
date of termination shall be forfeited. Except as provided in
Section 9, the Executive shall receive no other compensation
or benefits from Saia or any of its affiliates.
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7.
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Termination
of Employment By Death .
In the event of the death of the Executive during the course of his
employment hereunder, (i) the Executive’s estate shall
be entitled to receive his base salary pursuant to Section 4(a) and
any other compensation and benefits to the extent actually earned
by the Executive pursuant to this Agreement or any other benefit
plan or program of Saia as of the date of such termination at the
normal time for payment of such salary, compensation or benefits,
and (ii) all outstanding stock options to purchase common
stock of Saia held by the Executive at the time of his death shall
become immediately exercisable upon his death, and the
Executive’s spouse or, if predeceased, the Executive’s
estate, shall have one year from the date of his death to exercise
any or all of such outstanding options (but not beyond the term of
such option).
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8.
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Benefits
Upon Termination Without Cause or Good Reason
. If the Executive’s
employment with Saia shall terminate (i) because of
termination by Saia pursuant to Section 5(c) and not for Cause or
because of Permanent and Total Disability, or (ii) because of
termination by the Executive for Good Reason pursuant to
Section 6(a), the Executive shall be entitled to the
following, provided that Executive fully complies with his
obligations under Sections 11 and 12:
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(a)
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Saia shall pay
to the Executive his base salary pursuant to Section 4(a) and,
subject to the further provisions of this Section 8, any other
compensation and benefits to the extent actually earned by the
Executive under this Agreement or any benefit plan or program of
Saia as of the date of such termination at the normal time for
payment of such salary, compensation or benefits.
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(b)
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Saia shall pay
the Executive any amounts owing under Section 4(e) in accordance
with the terms thereof.
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(c)
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Saia shall pay
to the Executive as a severance benefit an amount equal to two
times his annual rate of base salary immediately preceding his
termination of employment, paid pro rata in accordance with
Saia’s standard payroll practices over the twenty-four months
following the effective date of termination. Notwithstanding the
preceding, to the extent required to comply with Section 409A
of the Internal Revenue Code of 1986, as amended (the
“Code”), such severance benefit and any interest
thereon, as described below, shall be paid beginning on the date
six months following the date of Executive’s termination of
employment, with a payment for the first six months paid in a lump
sump and with the remaining amount paid pro rata in accordance with
Saia’s standard payroll practices over the remainder of the
twenty-four month period. Interest on such severance benefit shall
accrue beginning at the date of termination and continuing during
the twenty-four month payment period at a reasonable rate to be
determined by Saia.
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(d)
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Saia shall pay
to the Executive a pro rated target bonus based on the actual
portion of the fiscal year elapsed prior to the termination of
Executive’s employment under Saia’s target bonus plan
for the fiscal year in which his termination of employment occurs
as if the target had been exactly met. Such payment shall be made
in a lump sum within 30 days after the date of such
termination of employment, and the Executive shall have no right to
any further bonuses under said program. Notwithstanding the
preceding, to the extent required to comply with Section 409A
of the Code, such target bonus and any interest thereon, as
described below, shall be paid on the date six months following the
date of Executive’s termination of employment. Interest on
such target bonus shall accrue during the six month period at a
reasonable rate to be determined by Saia.
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(e)
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The Executive
shall become eligible for payment of the retirement benefits
pursuant to Saia’s nonqualified defined contribution plans,
if any. Payment of benefits under such plans shall be made at the
time and in the manner determined under the applicable
plan.
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(f)
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During the
period of 24 months beginning on the date of the
Executive’s termination of employment, the Executive (and, if
applicable under the applicable program, his spouse) shall remain
covered by the employee benefit plans and programs that covered him
immediately prior to his termination of employment as if he had
remained in employment for such period; provided, however, that
there shall be excluded for this purpose(i) any plan or program
providing payment for time not worked (including without limitation
holiday, vacation, and long- and short-term disability),
(ii) any perquisite program, and (iii) except as provided
in paragraph 8(g) hereof any equity based or executive compensation
plan. In the event that the Executive’s participation in any
such employee benefit plan or program is barred (other than as
provided herein), Saia shall arrange to provide the Executive with
substantially similar benefits. Any medical insurance coverage for
such two-year period pursuant to this subsection (f) shall
become secondary upon the earlier of (i) the date on which the
Executive begins to be covered by comparable medical coverage
provided by a new employer, or (ii) the earliest date upon
which the Executive becomes eligible for Medicare or a comparable
Government insurance program. Notwithstanding the preceding, to the
extent required to comply with Section 409A of the Code,
coverage under such employee benefit plans and programs or
substantially simi
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