Document:

EX-10.3

 Exhibit 10.3 

CHANGE OF CONTROL AGREEMENT 

This Change of Control Agreement (“Agreement”) is dated as of December 1, 2016, and is by and among TRI COUNTIES BANK, a
California banking corporation having its principal place of business at 63 Constitution Drive, Chico, California 95973, TRICO BANCSHARES, a California corporation (“TriCo”), and John S. Fleshood (“Employee”). 

WHEREAS, Tri Counties Bank desires to retain and assure Employee’s services and loyalty during any pending Change of Control, as defined
herein, and is willing to provide severance benefits in excess of its regular severance benefits in such event; 
 WHEREAS, Employee desires
to continue in the employ of Tri Counties Bank under the terms and subject to the conditions hereinafter set forth. 
 NOW, THEREFORE, the
parties hereto agree as follows: 
 1.    TERM OF AGREEMENT. Unless sooner terminated pursuant to the provisions
of Section 5 hereof, the initial term of this Agreement shall be for twelve (12) months. On each one-year anniversary of this Agreement thereafter, this Agreement shall automatically renew for an
additional one (1) year period, unless terminated by either party ninety (90) days prior to such anniversary date; provided, however this Agreement may not be terminated pursuant to this Section 1 at any time there is a pending or
threatened “Change of Control” (as defined herein). 
 2.    DUTIES OF EMPLOYMENT. Employee hereby
agrees to devote his full and exclusive time and attention to the business of Tri Counties Bank, TriCo and their subsidiaries (collectively, “Employer”), to faithfully perform the duties assigned to him by the Board of Directors of
Employer consistent with his office, and to conduct himself in such a way as shall best serve the interests of Employer. 

 3.    CHANGE OF CONTROL. 

3.1    In the event of a Change of Control of Employer and in the event that, within one year following the Change of
Control, either: (i) Employee’s employment is terminated by Employer other than for “cause” as defined in Section 5.2, or (ii) Employee terminates his employment with Employer for “Good Reason,” then, subject
to the provisions of this Section 3 and Section 4, Employee shall be entitled to receive as severance payments an amount equal to (a) two times Employee’s base salary at the rate then in effect; plus (b) 200% of the annual
bonuses earned by Employee for the last complete calendar year or year of employment, whichever is greater; less (c) the amount of severance, if any, that Employee is entitled to receive or has received pursuant to his offer letter dated as of
November 2, 2016 (together, the “Severance Benefit”). Notwithstanding the foregoing, Employer shall be relieved of its obligation to make payment of the Severance Benefit under this Section 3.1 if, at the time it is to make such
payment, it is insolvent, in conservatorship or receivership, is in a troubled condition, is operating under a supervisory agreement with any regulatory agency having jurisdiction, has been given a financial soundness rating of “4” or
“5,” or is subject to a proceeding to terminate or suspend federal deposit insurance. 
 3.2    For purposes
of this Agreement, “Good Reason” shall mean a substantial and material negative change in Employee’s authority, compensation and/or responsibilities that occurs after or in connection with the Change of Control. Notwithstanding the
foregoing, the occurrence of an event that would otherwise constitute Good Reason hereunder shall cease to be an event constituting Good Reason if (i) Employee fails to provide Employer with notice of the occurrence of the event constituting
Good Reason within ninety days following the date on which the event first occurs; (ii) Employee fails to provide Employer with a period of at least 

  
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thirty days from the date of such notice to cure such event prior to terminating his employment for Good Reason; or (iii) Employee fails to terminate his employment within ninety days
following the day on which the thirty-day period set forth in the preceding clause (ii) expires or, if earlier, before the first anniversary of the Change of Control. 

3.3    For purposes of this Agreement, a “Change of Control” of Employer shall occur: 

(a)    upon Employer’s knowledge that any person (as such term is used in Section 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934, as amended) is or becomes “the beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of shares representing 40% or more of the
combined voting power of the then outstanding securities of Employer; or 
 (b)    upon the first purchase of the
common stock of Employer pursuant to a tender or exchange offer (other than a tender or exchange offer made by Employer); or 

(c)    upon the approval by the stockholders of Employer of a merger or consolidation (other than a merger of
consolidation in which Employer is the surviving corporation and which does not result in any reclassification or reorganization of Employer’s then outstanding securities), a sale or disposition of all or substantially all of the assets of
Employer, or a plan of liquidation or dissolution of Employer; or 
 (d)    if, during any period of two consecutive
years, individuals who at the beginning of such period constitute the Board of Directors of Employer cease for any reason to constitute at least a majority thereof, unless the election or nomination for the election by the stockholders of Employer
of each new director was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of the period. 

  
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 3.4    As a condition to receiving the Severance Benefit set forth in
Section 3.1, Employee shall execute and deliver, within fifty (50) days after Employee’s termination date, a written general release (the “Release”), in the form attached hereto as Exhibit A, in favor of Employer and its
direct or indirect subsidiaries, officers, directors, employees and stockholders which arise or may have arisen on or before the date of the Release, and such Release must have become irrevocable by its terms no later than the sixtieth (60th) day
after Employee’s termination date. The Severance Benefit shall be payable in twenty-four equal installments following the date of Employee’s termination of employment; provided, however, that the first installment shall be payable
to the Employee on the 60th day following his termination date, even if the Release becomes irrevocable before that date, and shall include a catch-up payment covering amounts that would otherwise have been
paid during such 60-day period but for the application of this provision. 

3.5    Anything in this Agreement to the contrary notwithstanding, prior to the payment of any compensation or benefits
payable under Section 3.1 hereof, the certified public accountants of Employer who served as accountants immediately prior to a Change of Control (the “Certified Public Accountants”) shall determine as promptly as practical and in any
event within 20 business days following a Change of Control whether any payment or distribution by Employer to or for the benefit of Employee (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement, any other
plans or agreements or otherwise) would more likely than not be nondeductible by Employer for Federal income purposes because of section 280G of the Internal Revenue Code of 1986, as amended (the “Code”); and if it is, then the aggregate
present value of amounts payable or distributable to or for the benefit of Employee pursuant to this Agreement (such payments or distributions pursuant 

  
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to this Agreement are thereinafter referred to as “Agreement Payments”) shall be reduced (but not below zero) to the Reduced Amount. For purposes of this Section 3.5, the
“Reduced Amount” shall be an amount expressed in present value, which maximizes the aggregate present value of the Agreement Payments without causing any payment to be nondeductible by Employer because of said Section 280G of the Code. The
reduction of the Agreement Payments hereunder by the Reduction Amount shall be made by the Employer in such manner as to result in Employee receiving the greatest amount of after-tax benefits hereunder. 

If under this Section the Certified Public Accountants determine that any payment would more likely than not be nondeductible by Employer
because of Section 280G of the Code, Employer shall promptly give Employee notice to the effect and a copy of the detailed calculation thereof and of the Reduced Amount. For purposes of this Section 3.5, present value shall be determined in
accordance with Section 280G(d)(4) of the Code. All determinations made by the Certified Public Accountants shall be binding upon Employer and Employee.     

3.6    As a result of the uncertainty in the application of Section 280G of the Code, it is possible that Agreement
Payments may have been made by Employer, which should not have been made (“Overpayment”), in each case, consistent with the calculation of the Reduced Amount hereunder. In the event that the Certified Public Accountants, based upon the
assertion of a deficiency by the Internal Revenue Service against Employer or Employee which said Certified Public Accountants believe has a high probability of success, determines that an Overpayment has been made, any such Overpayment shall be
treated for all purposes as a loan to Employee which Employee shall repay to Employer together with interest at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code; provided, however, that no amount shall be payable by
Employee to Employer in and to the extent such payment would not 

  
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reduce the amount which is subject to taxation under Section 4999 of the Code. In the event that the Certified Public Accountants, based upon controlling precedent, determine that an
Underpayment has occurred, any such Underpayment shall be promptly paid by Employer to or for the benefit of Employee together with interest at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code. 

3.7    Continuing Obligations. The triggering of this Section 3 shall not relieve Employee or Employer of
their obligations pursuant to the provisions of Section 4 hereof, which contains independent agreements and obligations. 

4.    COVENANT TO PROTECT TRADE SECRETS. 

4.1    The parties hereto recognize that the services performed and to be performed by Employee are special and unique and
that by reason of this employment, Employee will acquire confidential, proprietary and trade secret information of the Employer regarding the strategic plans, business plans, policies, finances, customers and other confidential information relating
to the business, operations and affairs of Employer (collectively “Trade Secrets”). Employee hereby agrees not to divulge such Trade Secrets to anyone, either during his/her employment with Employer or for a period of three (3) years
following the termination of his/her employment. Employee further agrees that all Trade Secrets, memoranda, notes, records, reports, letters, and other documents made, compiled, received, held, or used by Employee while employed by Employer
concerning any phase of the business of Employer shall be Employer’s property and shall be delivered by Employee to Employer on the termination of his employment, or at any earlier time on the request of Employer or the Board of Directors. 

  
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 4.2    Employee agrees that the restrictions and obligations contained in
this Section 4 are reasonable and necessary to protect Employer’s legitimate business interests. Employee and Employer agree that in consideration of the payment of the amounts payable to Employee hereunder, Employee specifically covenants
to comply with all of the restrictions and obligations contained in this Section 4 except as otherwise specifically provided for herein. Employee and Employer further agree that they have discussed the restrictions and obligations contained in
this Section 4 and stipulate that they are reasonable. Employer’s obligation to provide the Severance Benefit to Employee is conditioned on Employee’s continued compliance in all respects with the restrictions and obligations
contained in this Section 4. 
 5.    TERMINATION. 

This Agreement is terminable as follows: 

5.1    By Employer, upon the voluntary retirement or voluntary resignation of Employee, upon the death of Employee, or upon
the termination of Employee for permanent physical or mental disability of Employee. (For purposes hereof, permanent physical or mental disability shall be deemed to have occurred when Employee has been unable, with or without reasonable
accommodation, to perform the essential functions of his job duties (i) for a period of six (6) consecutive months or (ii) on 80% or more of the normal working days during any nine (9) consecutive months subject to applicable
law.) 
 5.2    By Employer, effective immediately upon providing Employee with notice of his dismissal, for
“cause,” which shall mean: 
 (a)    Employee’s dishonesty, disloyalty, willful misconduct, dereliction
of duty or conviction of a felony or other crime the subject matter of which is related to his duties for Employer; 

(b)    Employee’s commission of an act of fraud or bad faith upon Employer; 

  
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 (c)    Employee’s willful misappropriation of any funds or property of
Employer; or 
 (d)    Employee’s willful, continued and unreasonable failure to perform his duties or obligations
under this Agreement. 
 5.3    By either party effective upon an anniversary of this Agreement in accordance with and
subject to the limitations in Section 1. 
 6.    NO DUPLICATION OF BENEFITS 

The payments and benefits under this Agreement are intended to constitute the exclusive payments in the nature of severance or termination pay
that shall be due to Employee upon termination of his employment without Cause or for Good Reason within one year following a Change of Control, and shall be in lieu of any such other payments under any agreement, plan, practice or policy of
Employer and its subsidiaries. Accordingly, if Employee is a party to an employment, severance, termination, salary continuation or other or similar agreement with Employer or its subsidiaries, or is a participant in any other severance plan,
practice or policy of Employer or its subsidiaries, the Severance Benefit to which Employee is entitled under this Plan shall be reduced (but not below zero) by the amount of severance pay to which he is entitled under such other agreement, plan,
practice or policy; provided that the reduction set forth in this sentence shall not apply as to any other such agreement, plan, practice or policy that contains a reduction provision substantially similar to this Section 6 so long as the
reduction provision of such other agreement, plan, practice or policy is applied. The Severance Benefit to which Employee is otherwise entitled shall be further reduced (but not below zero) by (i) any cash payments to which Employee may be
entitled under any federal, state or local plant-closing (or similar or analogous) law (including, without limitation, pursuant to the U.S. Worker Adjustment 

  
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and Retraining Notification Act); or (ii) the amount of short-term or long-term disability benefits payable to Employee under any plan, program or arrangement of Employer or its
subsidiaries, in the event that the Severance Benefit payable hereunder cannot, by law, reduce the amount of short-term or long-term disability benefits payable to Employee under such plan, program, or arrangement. 

7.    SECTION 409A 

7.1    It is intended that the Severance Benefit payable to Employee pursuant to this Agreement shall be either paid in
compliance with, or exempt from, Section 409A of the Code and the regulations promulgated thereunder (collectively, “Section 409A”), and this Agreement should be interpreted and administered in accordance with such intentions. However,
Employer does not warrant to Employee that all amounts paid or benefits delivered to him will be exempt from, or paid in compliance with, Section 409A. Employee understands and agrees that he bears the entire risk of any adverse federal, state or
local tax consequences and penalty taxes which may result from payment on a basis contrary to the provisions of Section 409A or comparable provisions of any applicable state or local income tax laws, and that in no event will Employer be required to
pay Employee any “gross up” with respect to any amounts payable by Employee pursuant to Section 409A. Employee acknowledges that he has been advised to seek the advice of a tax advisor with respect to the tax consequences of all payments
pursuant to this Agreement, including any adverse tax consequence under Section 409A and applicable state tax law. 

7.2    In applying Section 409A to amounts paid pursuant to this Agreement, any right to a series of installment payments
under this Agreement shall be treated as a right to a series of separate payments. 

  
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 7.3    Notwithstanding anything to the contrary, if and to the extent
required to comply with Section 409A, any payment or benefit required to be paid under this Agreement upon Employee’s termination of employment shall be made upon Employee’s incurring a “separation of service” within the
meaning of Section 409A. 
 7.4    Notwithstanding anything in this Agreement to the contrary, if Employee is
deemed to be a “specified employee” of Employer for purposes of Section 409A, if and to the extent that any portion of the Severance Benefit is subject to Section 409A, such portion shall not be paid to Employee before the date that
is six months after Employee’s “separation from service” within the meaning of Section 409A (or, if earlier, the date of Employee’s death). Any portion of the Severance Benefit so delayed shall be paid in a single lump sum
without interest at the end of the required delay period. 
 8.    SCOPE OF AGREEMENT: WAIVERS AND AMENDMENTS.

 The scope of this Agreement is limited to the specific provisions set forth herein and is not intended to encompass all the terms and
conditions of the relationship between Employee and Employer and any and all matters related thereto. The effects of the termination of Employee’s employment under circumstances other than after a Change of Control and as specifically set forth
herein shall be subject to the policies of Employer and any other written agreement between Employee and Employer. Neither this Agreement nor any term or condition hereof, including without limitation, the terms and conditions of this Section, may
be waived or modified in whole or in part as against Employer or Employee, as the case may be, except by written instrument signed by an authorized officer of Employer and by Employee, expressly stating that it is intended to operate as a waiver or
modification of this Agreement, and any such written waiver by either party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach hereof. 

  
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 9.    NOTICE. 

Any notice hereunder shall be in writing and shall be deemed effective five (5) days after it has been mailed, by certified mail, in the
case of Employer addressed to the address above written, or such other address as Employee knows to be the then corporate office of Employer, to the attention of the President of Employer and, in the case of Employee, to Employee’s address as
contained in the personnel records of Employer. Either party may from time to time, in writing by certified mail, designate another address, which shall become his or its effective address for the purposes of this Section 9. 

10.    ENTIRE AGREEMENT. 

This Agreement contains the entire understanding of the parties with respect to the terms and conditions set forth herein, and supersedes all
prior agreements and understandings relating to the subject matter herein. This Agreement cannot be amended or modified except by a written instrument signed by Employee and Employer. 

11.    NO RESTRICTIONS. 

Employee hereby represents and warrants that he is not now and will not be subject to any agreement, restriction, lien, encumbrance, or right,
title or interest in any one of the foregoing, limiting in any way the scope of this Agreement or in any way inconsistent with this Agreement. 

  
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 12.    ARBITRATION. In consideration of the promises made herein and
Employee’s employment with Employer, Employee and Employer agree that all claims arising out of or relating to Employee’s employment, including any action to enforce this Agreement or any action concerning the interpretation and binding
effect of this arbitration provision, shall be resolved by binding arbitration. Included within the scope of this arbitration agreement are all disputes, whether based on tort, contract, or statute, including, but not limited to, any claims for
discrimination, harassment, or retaliation, whether based on the California Fair Employment and Housing Act, Title VII of the Civil Rights Act of 1964, as amended, or any other local, state or federal law, claims for wages or compensation, claims
based in equity, and/or claims for any wrongdoing whatsoever. This agreement to arbitrate covers any claims Employee may have against Employer, its principals, owners, shareholders, partners, officers, directors or employees. This agreement to
arbitrate expressly does not prohibit either party from filing an application for a provisional remedy to prevent actual or threatened irreparable harm in accordance with California law. The dispute will be arbitrated in accordance with the rules of
the American Arbitration Association (“AAA”) under its existing Employment Arbitration Rules which may be found at http://www.adr.org/sp.asp?id=32904. Employee acknowledges that he/she has been provided a copy of the AAA rules
contemporaneously herewith. Employer shall pay the arbitration administrative costs and the arbitrator’s fees in accordance with California law and the AAA rules. Each party in the arbitration shall bear his/her/its own attorneys’ fees and
legal costs. The parties agree to file any demand for arbitration within the time limit established by the applicable statute of limitations for the asserted claims. Failure to demand arbitration within the prescribed time period shall result in
waiver of said claims. The parties agree that the arbitration will be held in Chico, California. This agreement to arbitrate does not cover any 

  
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claims that cannot be subject to mandatory arbitration including claims for workers’ compensation, unemployment compensation benefits, and applications for provisional remedies pursuant to
Cal. Code Civ. Proc. section 1281.8, and any other claims that by law cannot be subject to mandatory arbitration. 
 EMPLOYEE
UNDERSTANDS AND AGREES THAT EMPLOYEE IS WAIVING HIS/HER RIGHTS TO BRING CLAIMS COVERED BY THIS ARBITRATION AGREEMENT TO COURT, INCLUDING THE RIGHT TO A JURY TRIAL. 

13.    NOT A CONTRACT OF EMPLOYMENT 

This Agreement is not and shall not be construed to create any contract of employment, express or implied. This Agreement does not in any way
alter the “at-will” status of Employee’s employment with Employer meaning that either Employer or Employee may terminate the employment relationship at any time, for any reason or no reason
(subject to the terms of this Agreement) and with or without advance notice 
 14.    HEADINGS. 

The captions and headings contained herein have been inserted for convenience or reference only and shall not affect the meaning or
interpretation of this Agreement. 
 15.    GOVERNING LAW AND CHOICE OF FORUM. 

This Agreement shall be construed and enforced in accordance with the laws of the State of California and shall be enforced in the State or
Federal Courts sitting in California. 
  

			
	  

	John S. Fleshood

  
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	TRICO BANCSHARES
	
	TRI COUNTIES BANK
		
	By:	 	  

	Name:	 	Richard P. Smith
	Title:	 	President and Chief Executive Officer

  
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 EXHIBIT A 

GENERAL RELEASE OF ALL CLAIMS 

In consideration of the payments set forth in the Change of Control Agreement (“Agreement”) between TRI COUNTIES BANK and TRICO
BANCSHARES, on the one hand (collectively, “Employer”), and                      (“Employee”), on the other, dated
            , 20    , to which this form shall be deemed to be attached, Employee hereby agrees to the following General Release of All Claims (“Release”),
effective as set forth herein. 
 1.    General Release. Employee voluntarily and on behalf of Employee,
Employee’s heirs, successors and assigns, hereby forever releases, discharges and holds harmless, Employer and its present and former parents, subsidiaries, affiliates and divisions, and each of their present and former officers, directors,
employees, agents, investors, shareholders, owners, members, principals, administrators, affiliates, divisions, employee benefit plans and fiduciaries, attorneys, insurers, and each of their predecessors, successors and assigns (the “Released
Parties”) from any and all claims, rights, causes of action and demands of whatever nature, whether known or unknown, that Employee had, has or may have against Employer and/or the Released Parties arising from any act, event or omission that
has occurred up through the date on which Employee executes this Release, including, but not limited to, claims under Title VII of the Civil Rights Act of 1964, as amended; Sections 1981 and 1983 of the Civil Rights Act of 1866; Executive Order
11,246; the Employee Retirement Income Security Act of 1974, as amended; the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) and California “mini-COBRA”; the Family and Medical Leave Act; the Worker
Adjustment and Retraining Notification Act (“WARN”) and Cal WARN; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; Age Discrimination in Employment Act of 1967, as amended; the National Labor
Relations Act; the Occupational Safety and Health Act; the Genetic Information Nondiscrimination Act; the California Family Rights Act; the California Fair Employment and Housing Act; the California Labor Code including Section 132a; the California
Constitution; any California Wage Order; the California Private Attorney General Act of 2004; the California Confidentiality of Medical Information Act; the California Business & Professions and Government Codes; claims under any other
federal, state or local law, regulation or common law, including but not limited to claims relating to wrongful or constructive termination, harassment, failure to prevent harassment, discrimination, retaliation, and denial of accommodation; claims
for personal and physical injury, medical loss, negligence, invasion of privacy, defamation, and intentional or negligent infliction of emotional distress; claims for breach of contract (whether oral, written, implied or express), interference with
contract, promissory estoppel, and breach of the implied covenant of good faith and fair dealing; claims for violation of public policy, tort and fraud; claims arising under the Agreement, any employment contract, offer letter, retention agreement,
severance agreement, or severance policy; claims for wages, bonuses, commissions, overtime, meal periods, equity, severance pay and damages; claims for penalties, costs, interest, and attorneys’ fees; and claims arising out of any wrongdoing
whatsoever under any theory now or ever recognized. The foregoing releases do not include any claims or rights that cannot be released or waived as a matter of law or claims to enforce the payment obligations under the Agreement. 

 2.    Release of Unknown Claims. Employee understands and agrees that
by executing this Agreement and receiving the consideration for the releases given herein, this Release shall be effective as a full and final accord and satisfaction and general release of all claims, whether known or unknown. In furtherance of
this intention, Employee hereby expressly waives any and all rights and benefits conferred on Employee by Section 1542 of the California Civil Code and further, he/she expressly consents that this Release shall be given full force and effect
according to each and all of its express terms and provisions, including those related to unknown and unsuspected claims. Section 1542 provides: 

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing
the release, which if known by him or her must have materially affected his or her settlement with the debtor. 
 Employee acknowledges that Employee may
hereafter discover claims, circumstances, events or facts in addition to or different from those which Employee now knows or believes to exist with respect to the subject matter of this Release or the Agreement which, if known or suspected at the
time of executing this Release, may have materially affected this Release. Employee hereby waives any rights, claims or causes of action that might arise as a result of such different or additional claims, circumstances or facts. 

3.    Release of ADEA Claims. Employee acknowledges that Employee is hereby waiving and releasing any rights he may
have under the Age Discrimination in Employment Act of 1967 (“ADEA”). Employee acknowledges that Employee is voluntarily and knowingly entering into this Release and understands that this ADEA release does not apply to any claims or rights
under the ADEA that may arise after Employee executes this Release. Employee acknowledges that the consideration given for the release of the ADEA claims is in addition to anything of value to which he was already entitled. Employee further
acknowledges that Employee has been advised by this writing that: 
 a.    Employee should consult with an attorney
prior to executing this Release; 
 b.    Employee has twenty-one (21) days
within which to consider and execute this Release. If Employee signs this Release before the 21-day time period expires, Employee does so knowingly and voluntarily; and 

c.    Employee has seven (7) days following Employee’s execution of this Release to revoke Employee’s
signature by notifying                      of the revocation within the 7-day time period. This Release
shall be effective on the eighth day after Employee executes and delivers it to Employer, assuming no revocation has been received by Employer as set forth herein. 

4.    Covenant Not to Sue. Employee represents that Employee has not filed or initiated any claim of any type
against Employer as of the date Employee executes this Release. Employee will not, on behalf of Employee, in cooperation or participation with any other person, firm, entity, corporation or governmental agency, or in any capacity whatsoever,
institute, file, or in any manner voluntarily participate in, assist, or prosecute any claim, charge, grievance, complaint or action of any sort against Employer or the Released Parties. Nothing in this Release shall be construed to affect the
independent right and responsibility of the Equal Employment Opportunity Commission’s or its state counterpart to enforce the law. 

  
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 5.    Employee’s Representations. Employee acknowledges that:
(a) as of the date Employee executes this Release, Employee has received from Employer all amounts, payments, compensation and benefits then due arising out of Employee’s employment with Employer; (b) Employee has not experienced a job-related illness, injury or occupational disease compensable under the California workers’ compensation system for which Employee has not already filed a claim; and (c) Employee has been provided with
and/or has not been denied or retaliated against for requesting any leave under the Family and Medical Leave Act or the California Family Rights Act. 

6.    No Admissions. Nothing in this Release or the fact that the parties have signed this Release shall be
construed as an admission by either party of any violation of any federal, state or local law or duty. Employee acknowledges that the Employer and the Released Parties disclaim any wrongdoing or liability to Employee whatsoever. 

7.     Governing Law. This Release is made and entered into in the State of California and shall in all respects be
interpreted, enforced and governed under the laws of California. 
 8.    Severability/Waiver/Construction.
Should any provision of this Release be determined by any court to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby. The failure of either party to insist upon the performance of any of
the terms in this Release, or the failure to prosecute any breach of any of the terms, shall not be construed thereafter as a waiver of any such terms or conditions. This entire Release shall remain in full force and effect as if no such forbearance
or failure of performance had occurred. The language of all parts of this Release shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against either of the parties. 

9.    Successors and Assigns. This Release shall be binding upon Employee and Employee’s heirs,
administrators, representatives, executors, successors, and assigns, and shall inure to the benefit of Employer and the Released Parties and each of them and to their respective heirs, administrators, representatives, executors, successors, and
assigns. Employee expressly warrants that Employee has not transferred to any person or entity any rights, causes of action, or claims released in this Release. Each of the Released Parties is an intended third-party beneficiary of this Release.

 10.    Entire Agreement/No Oral Modification/No Inducements. This Release constitutes the entire agreement
between the parties concerning the subject matter herein and supersedes any and all other written or oral promises or representations about its subject matter. This Release can only be amended, in writing, signed by Employee and Employer. No promise
or inducement has been made to Employee for entering into this Release except as expressly set forth herein. 

  
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 IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties have read this
General Release of All Claims, fully understand it and freely, voluntarily and knowingly agree to its terms. 
 Dated this
[    ] day of [            ], 201  . 
  

	
	  

	[Employee Name]

 AGREED AND ACCEPTED: 
  

			
	[COMPANY NAME]
		
	By:	 	  

		 	[Name]
		 	[Title]

  
 4Exhibit

Exhibit 10.28
COPART, INC. 

AMENDED AND RESTATED  
EXECUTIVE OFFICER EMPLOYMENT AGREEMENT
This Amended and Restated Executive Officer Employment Agreement is entered into with an effective date of November 28, 2016 (the “Effective Date”) by and between Copart, Inc., headquartered in Texas (the “Company”), and Vikrant Bhatia (the “Executive”), and amends and restates in its entirety that certain Executive Officer Employment Agreement, dated effective as of December 15, 2014, by and between the Company and the Executive.

		
	1.
	Duties and Scope of Employment.

(a)    Position and Duties. As of the Effective Date, Executive will serve as Executive Vice-President, Strategic Initiatives. Executive will render such business and professional services in the performance of his duties, consistent with Executive’s position within the Company, as shall reasonably be assigned to him by the Chief Executive Officer (CEO) or President (together, “Senior Management”) and as are contemplated by the Company’s bylaws. During the term of Executive’s employment with the Company, Executive shall report to and be subject to the directives of the Board of Directors (the “Board”) and Senior Management. Executive shall also abide by the provisions of the Company’s employee handbook, any ethics and compliance directives, and other policies and procedures adopted by the Company. The period of Executive’s employment under this Agreement is referred to herein as the “Employment Term.”

(b)    Obligations. During the Employment Term, Executive will perform his duties faithfully and to the best of his ability and will devote his full business efforts and time to the Company. For the duration of the Employment Term, Executive agrees not to actively engage in any other employment, occupation or consulting activity for any direct or indirect remuneration without the prior approval of the Board.

		
	2.
	Employment Terms.

(a)    Basic “At Will” Rule. The Employment Term shall begin upon the Effective Date and shall continue thereafter until terminated by the Company or the Executive. The Executive acknowledges and agrees that his employment with the Company is “at will” and may be terminated at any time, with or without notice, with or without good cause, or for any or no cause, at the option of either the Company or the Executive. Executive understands and agrees that neither his job performance nor promotions, commendations, bonuses or the like from the Company shall give rise to, or in any way serve as the basis for modification, amendment, or extension, by implication or otherwise, of the Executive’s at-will employment with the Company.

(b)    Termination. If the Company terminates the Executive’s employment at any time for any reason other than Cause or Disability, both as defined below, or if the Executive terminates his employment at any time for Good Reason, as defined below, the provisions of Section 8(a)(i) shall apply. If the Executive terminates his employment at any time other than for Good Reason, the provisions of Section 8(a)(ii) shall apply. Upon termination of the Executive’s employment with the Company, the Executive’s rights under any applicable benefit plans shall be determined under the provisions of those plans.

(c)    Death. The Executive’s employment shall terminate in the event of his death. The Company shall have no obligation to pay or provide any compensation or benefits under this Agreement on account of the Executive’s death, or for periods following the Executive’s death; provided, however, that the Company’s 

1

obligations under Section 8(a)(i) shall not be interrupted as a result of the Executive’s death subsequent to a termination to which such paragraph applies. The Executive’s rights under the benefit plans of the Company in the event of the Executive’s death shall be determined under the provisions of those plans.

(d)    Cause.    For all purposes under this Agreement, “Cause” shall mean Executive’s:
(i)    willful or grossly negligent failure to substantially perform his duties hereunder;
(ii)    commission of gross misconduct which is injurious to the Company;
(iii)    breach of a material provision of this Agreement (including, without limitation, Section 9) or the agreements, policies, practices, and ethics and compliance directives incorporated herein by reference;
(iv)    material violation of a federal or state law or regulation applicable to the business of the Company;
(v)    misappropriation or embezzlement of Company funds or an act of fraud or dishonesty upon the Company made by Executive;
(vi)    conviction of, or plea of nolo contendre to, a felony; or
(vii)    continued failure to comply with directives of Senior Management.
No act, or failure to act, by the Executive shall be considered “willful” unless committed without good faith without a reasonable belief that the act or omission was in the Company’s best interest. No compensation or benefits will be paid or provided to the Executive under this Agreement on account of a termination for Cause, or for periods following the date when such a termination of employment is effective. The Executive’s rights under the benefit plans of the Company shall be determined under the provisions of those plans.

(e)    Disability. The Company may terminate the Executive’s employment for Disability by giving the Executive 30 days’ advance notice in writing. For all purposes under this Agreement, “Disability” shall mean that the Executive, at the time notice is given, has been unable to substantially perform his duties under this Agreement for a period of not less than six (6) consecutive months as the result of his incapacity due to physical or mental illness. In the event that the Executive resumes the performance of substantially all of his duties hereunder before the termination of his employment under this subparagraph (e) becomes effective, the notice of termination shall automatically be deemed to have been revoked. No compensation or benefits will be paid or provided to the Executive under this Agreement on account of termination for Disability, or for periods following the date when such a termination of employment is effective. The Executive’s rights under the benefit plans of the Company shall be determined under the provisions of those plans.

(f)    Good Reason. Employment with the Company may be regarded as having been constructively terminated by the Company, and the Executive may therefore terminate his employment for “Good Reason” within 30 days following the expiration of any Company cure period (as described below) and thereupon become entitled to the benefits of Sections 8(a)(i) below, if one or more of the following events (described in clauses (i) through (iii) below) shall have occurred without the Executive’s prior written consent. The Executive will not resign for “Good Reason” without first providing the Company with written notice of the acts or omissions constituting the grounds for “Good Reason” within 90 days of the initial existence of such grounds for “Good Reason” and a reasonable cure period of 30 days following the date of such notice.
(i)    the assignment to the Executive of any duties or the reduction of the Executive’s duties, either of which results in a material diminution in the Executive’s position or responsibilities with the 

2

Company in effect immediately prior to such assignment, or the removal of the Executive from such position and responsibilities (other than a promotion or similar move to another position);
(ii)    a material reduction by the Company in the Base Salary (as defined below) of the Executive as in effect immediately prior to such reduction;
(iii)    a material breach by the Company of a material provision of this Agreement; and
(iv)    if the location of Executive’s place of employment moves more than 50 miles away.
3.    Compensation.

(a)    Base Salary. For all services to be rendered by the Executive pursuant to this Agreement, the Company agrees to pay the Executive during the Employment Term a base salary (the “Base Salary”) at an annual rate of $350,000. The Base Salary may be paid through the payroll of either Company or its subsidiary. In either case, the Base Salary shall be paid in accordance with Company’s or the subsidiary’s regular payroll practices. The Company agrees to review the Base Salary at least annually after the conclusion of the Company’s fiscal year and to make such adjustments therein as the Board may approve.

(b)    Bonus. Beginning after your first full year of employment, and for each fiscal year thereafter during the Employment Term, the Executive will be eligible to receive an annual bonus (the “Bonus”) based upon Executive’s contributions and performance, in the form of cash or restricted shares in an amount up to $300,000 as determined by Senior Management, and approved by the Board or any authorized committee (the “Committee”). Payment of an annual bonus shall be a discretionary decision of the Committee. The Bonus, if any, will be paid as soon as practical following the determination by the Board or the Committee that the Bonus has been earned, but in no event after the fifteenth day of the third month of the Company’s fiscal year or the calendar year, whichever is later, following the date the Executive earns the Bonus and it is no longer subject to a substantial risk of forfeiture. To be eligible to receive the Bonus, Executive must be employed by the Company on the day the Bonus is paid.

(c)    Equity Compensation. Beginning with the Company’s 2016 fiscal year and for each fiscal year thereafter during the Employment Term, Executive will be eligible to receive stock option grants for such fiscal year as approved by the Board or any authorized committee (the “Committee”). Awards of option grants shall be a discretionary decision of the Committee. Any grant will be priced in accordance with Company’s equity incentive plan and Company’s policies governing equity awards.

4.    Employee Benefits. During the Employment Term, the Executive shall be entitled to participate in employee benefit plans or programs of Company, if any, to the extent that his position, tenure, salary, age, health and other qualifications make him eligible to participate, subject to the rules and regulations applicable thereto. Company reserves the right to cancel or change the benefit plans and programs it offers to its employees at any time.

5.    Vacation. Executive will be entitled to paid vacation of three (3) weeks per year in accordance with the Company’s vacation policy, with the timing and duration of specific vacations mutually and reasonably agreed to by the parties hereto.

6.    Expenses. The Executive shall be entitled to prompt reimbursement for all reasonable ordinary and necessary travel, entertainment, and other expenses incurred by the Executive while an employee of 

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Company (in accordance with the policies and procedures established by Company for its senior executive officers) in the performance of his duties and responsibilities under this Agreement; provided, however, that the Executive shall properly and promptly account for such expenses in accordance with Company’s policies and procedures.

7.    Other Activities. The Executive shall devote substantially all of his working time and efforts during Company’s normal business hours to the business and affairs of Company and its subsidiaries and to the diligent and faithful performance of the duties and responsibilities duly assigned to him pursuant to this Agreement, except for vacations, holidays and sickness. The Executive may, however, devote a reasonable amount of his time to civic, community, or charitable activities and, with the prior written approval of the Senior Management, to serve as a director of other corporations and to other types of business or public activities not expressly mentioned in this paragraph.

8.    Termination Benefits. The Executive shall be entitled to receive severance and other benefits upon a termination of employment only as follows:

		
	(a)
	Severance.

(i)    Involuntary Termination. If the Company terminates the Executive’s employment other than for Disability or Cause, or if the Executive terminates his employment for Good Reason, then, in lieu of any severance benefits to which the Executive may otherwise be entitled under any Company severance plan or program, if any, and subject to the remaining provisions of this Section 8, the Executive shall be entitled to a lump sum payment equal to fifty percent (50%) of the Executive’s then-current Base Salary, less applicable tax withholding.

(ii) Other Termination. In the event the Executive’s employment terminates for any reason other than as described in Section 8(a)(i) above, including by reason of the Executive’s death or Disability, the Company’s termination of Executive for Cause, or Executive’s resignation other than for Good Reason, then the Executive shall be entitled to receive severance and any other benefits only as may then be established under the Company’s existing severance and benefit plans and policies at the time of such termination, if any.

(b)    Release of Claims Agreement. The receipt of any severance payments or benefits pursuant to this Agreement is contingent upon Executive signing and not revoking a severance agreement and release of claims in a form reasonably acceptable to the Company (the “Release”), which must become effective no later than the 60th day following the Executive’s delivery of the Release (the “Release Deadline”), and if not, the Executive will forfeit any right to severance payments or benefits under this Agreement. To become effective, the Release must be executed by the Executive and any revocation periods (as required by statute, regulation, or otherwise) must have expired without the Executive having revoked the Release. In addition, no severance payments or benefits will be paid or provided until the Release actually becomes effective.

		
	(c)
	Section 409A.

(i)    Notwithstanding anything to the contrary in this Agreement, no severance pay or benefits to be paid or provided to the Executive, if any, pursuant to this Agreement that, when considered together with any other severance payments or separation benefits, are considered deferred compensation under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the final regulations and any guidance promulgated thereunder (“Section 409A”) (together, the “Deferred Payments”) will be paid or otherwise provided until the Executive has a “separation from service” within the meaning of Section 409A. 

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Similarly, no severance payable to Executive, if any, pursuant to this Agreement that otherwise would be exempt from Section 409A pursuant to Treasury Regulation Section 1.409A- 1(b)(9) will be payable until Executive has a “separation from service” within the meaning of Section 409A

(ii)    Any severance payments or benefits under this Agreement that would be considered Deferred Payments will be paid on, or, in the case of installments, will not commence until, the sixtieth (60th) day following Executive’s separation from service, or, if later, such time as required by Section 8(c)(iii). Except as required by Section 8(c)(iii), any installment payments that would have been made to Executive during the sixty (60) day period immediately following Executive’s separation from service but for the preceding sentence will be paid to Executive on the sixtieth (60th) day following Executive’s separation from service and the remaining payments shall be made as provided in this Agreement.

(iii)    Notwithstanding anything to the contrary in this Agreement, if Executive is a “specified employee” (“Specified Employee”) within the meaning of Section 409A at the time of Executive’s termination, then any Deferred Payments, which are otherwise due to Executive on or within the six (6) month period following Executive’s termination will accrue during such six (6) month period and will become payable in a lump sum payment on the date six (6) months and one (1) day following the date of Executive’s separation from service or the date of the Executive’s death, if earlier. All Deferred Payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Each payment and benefit payable under this Agreement is intended to constitute separate payments for purposes of Treasury Regulation Section l.409A-2(b)(2).

(iv)    Any amount paid under this Agreement that satisfies the requirements of the “short-term deferral” rule set forth in Treasury Regulation Section 1.409A­ l (b)(4) will not constitute Deferred Payments for purposes of clause (i) above.

(v)    Amounts paid under the Agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant to Treasury Regulation Section 1.409A-l(b)(9)(iii) that do not exceed the Section 409A Limit will not constitute Deferred Payments for purposes of clause (i) above. For this purpose, “Section 409A Limit” means the lesser of two (2) times: (A) the Executive’s annualized compensation based upon the annual rate of pay paid to Executive during the Executive’s taxable year preceding the taxable year of the Executive’s termination of employment as determined under Treasury Regulation 1.409A-l(b)(9)(iii)(A)(l) and any Internal Revenue Service guidance issued with respect thereto; or (B) the maximum amount that may be taken into account under a qualified plan pursuant to Code Section 401(a)(l7) for the year in which Executive’s employment is terminated.

(vi)    The foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. The Company and the Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A.

(d)        No Duty to Mitigate. The Executive shall not be required to mitigate the amount of any payment contemplated by this Agreement (whether by seeking new employment or in any other manner).

9.    Protective Covenants. Executive agrees that the covenants below (i) are reasonable and necessary for the protection of legitimate business interests of Company, (ii) are not against the public interest, and (iii) do not place a unreasonable burden upon the Executive’s ability to earn a living.

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(a)        Definitions. “Customer” means a person or entity with whom/which Executive has had Company business-related contact or about whom/which Executive has obtained knowledge through his employment with the Company. A “Competing Business” is a person or entity that is in the business of auctioning, processing, or selling salvage vehicles, or auctioning used vehicles, or otherwise provides products or services that would displace the products or services of the Company.

(b)        Proprietary Information. During the Employment Term and thereafter, the Executive shall not, without the prior written consent of the Board, disclose or use for any purpose (except in the course of his employment under this Agreement and in furtherance of the business of the Company or any of its affiliates or subsidiaries) any confidential information or proprietary data of the Company, including, without limitation, information regarding the Company’s computer and information technology systems (and the means and methods for securing such systems). As an express condition of the Executive’s employment with the Company, the Executive agrees to execute a Confidentiality and Intellectual Property Assignment Agreement in the form attached hereto as Exhibit A, and any such additional confidentiality agreements as requested by the Company.

(c)        Restriction on Interfering with Employee Relationships. During the Employment Term and for twelve (12) complete calendar months thereafter, Executive will not, either directly or indirectly, (a) solicit, induce, or encourage any employee of the Company to leave the Company, or (b) help another person or entity to hire away an employee of the Company, unless otherwise expressly authorized in writing to do so by an authorized officer of the Company.

(d)    Restriction on Interfering with Customer Relationships. During the Employment Term and for twelve (12) complete calendar months thereafter, Executive will not, directly or indirectly, interfere with the relationship between the Company and a Customer. It shall be considered a prohibited act of interference for Executive to participate in soliciting, encouraging, or inducing a Customer (a) to do business with a Competing Business, or (b) to stop or reduce doing business with the Company, except where such conduct is expressly authorized in writing by an authorized officer of the Company. The parties stipulate that this restriction is inherently limited to a reasonable geography or geographic substitute because it is limited to the place or location where the Customer is located at the time.

(e)        Restriction Against Unfair Competition. Executive agrees that during the Employment Term and for a period of twelve (12) complete calendar months thereafter, Executive will not, directly or indirectly, as an employee, consultant, advisor, contractor, shareholder, director, partner, joint-venturer, or investor, assist in the management, administration, information technology, or related sales activities of any Competing Business within the United States. The foregoing shall not be construed to prohibit passive investments such as mutual funds or ownership of less than 1% of a publicly-held company’s outstanding stock. The parties stipulate that the geographic limitation used in this restriction is a reasonable given Executive’s high level duties for the Company, the Company’s nationwide business, and Executive’s in-depth knowledge of the Company’s Proprietary Information.

10.    Right to Advice of Counsel. The Executive acknowledges that he has had the opportunity to consult with counsel and is fully aware of his rights and obligations under this Agreement.

11.    Successors. The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. Failure of the Company to 

6

obtain such assumption agreement prior to the effectiveness of any such succession shall entitle the Executive to the benefits described in Section 8(a)(i) of this Agreement, subject to the terms and conditions therein.

12.    Assignment. This Agreement and all rights under this Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective personal or legal representatives, executors, administrators, heirs, distributees, devisees, legatees, successors and assigns. This Agreement is personal in nature, and the Executive shall not, without the prior written consent of the Company, assign or transfer this Agreement or any right or obligation under this Agreement to any other person or entity. If the Executive should die while any amounts are still payable to the Executive hereunder, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Executive’s devisee, legatee, or other designee or, if there be no such designee, to the Executive’s estate.

13.    Absence of Conflict. The Executive materially represents and warrants that his employment by the Company as described herein will not conflict with and will not be constrained by any prior employment or consulting agreement or relationship.

14.    Notices. All notices, requests, demands and other communications called for hereunder shall be in writing and shall be deemed given (i) on the date of delivery, or, if earlier, (ii) one (1) day after being sent by a well-established commercial overnight service, or (iii) three (3) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors at the following addresses, or at such other addresses as the parties may later designate in writing:

If to the Executive:    Vikrant Bhatia

If to the Company:    Copart, Inc.
14185 Dallas Parkway, Suite 300
Dallas, TX 75215 
Attn: General Counsel

or to such other address or the attention of such other person as the recipient party has previously furnished to the other party in writing in accordance with this paragraph.

15.    Waiver. Failure or delay on the part of either party hereto to enforce any right, power, or privilege hereunder shall not be deemed to constitute a waiver thereof. Additionally, a waiver by either party or a breach of any promise hereof by the other party shall not operate as or be construed to constitute a waiver of any subsequent waiver by such other party.

16.    Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

		
	17.
	Arbitration.

(a)    Arbitration. In consideration of Executive’s employment with the Company, the Company’s promise to arbitrate all employment-related disputes and Executive’s receipt of the compensation and other benefits paid to Executive by the Company, at present and in the future, Executive agrees that any and all 

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controversies, claims, or disputes with anyone (including the Company and any employee, officer, director, shareholder or benefit plan of the Company in their capacity as such or otherwise) arising out of, relating to, or resulting from Executive’s employment with the Company or the termination of Executive’s employment with the Company, including any breach of this agreement, shall be subject to binding arbitration. Disputes which Executive agrees to arbitrate, and thereby agrees to waive any right to a trial by jury, include any statutory claims under State or Federal law, including, but not limited to, claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the Texas Labor Code claims of harassment, discrimination or wrongful termination and any statutory claims, as well as and all disputes arising out of or relating to the interpretation or application of Section 17 of this Agreement, including the enforceability, revocability, or validity of this Section. Executive and the Company agree that workers’ compensation claims (other than wrongful discharge claims}, claims for unemployment, and disputes that are not subject to arbitration under the Dodd-Frank Wall Street Reform and Consumer Protection Act are excluded from arbitration under this agreement. Executive further understands that this agreement to arbitrate also applies to any disputes that the Company may have with employee.

(b)    Procedure. The Federal Arbitration Act (“FAA”) applies to this Agreement. Executive agrees that any arbitration will be administered by the American Arbitration Association (“AAA”) and that a neutral arbitrator will be selected in a manner consistent with its national rules for the resolution of employment disputes. The arbitration proceedings will allow for discovery according to the rules set forth in the National Rules for the Resolution of Employment Disputes. Executive agrees that the arbitrator shall have the power to decide any motions brought by any party to the arbitration, including motions for summary judgment and/or adjudication and motions to dismiss and demurrers, prior to any arbitration hearing. Executive agrees that the arbitrator shall issue a written decision on the merits. Executive also agrees that the arbitrator shall have the power to award any remedies, including attorneys’ fees and costs, available under applicable law. Executive understands the Company will pay for any administrative or hearing fees charged by the arbitrator or AAA except that Executive shall pay the first $2,000.00 of any fees associated with any arbitration Executive initiates. Any arbitration hereunder shall be conducted in Dallas, Texas.

(c)    Remedy. Except as provided by Section 17(d) of this Agreement, arbitration shall be the sole, exclusive and final remedy for any dispute between Executive and the Company. Accordingly, except as provided by the FAA, neither Executive nor the Company will be permitted to pursue court action regarding claims that are subject to arbitration. Notwithstanding any other provision of this Agreement, the arbitrator will not have the authority to disregard or refuse to enforce any lawful Company policy, and the arbitrator shall not order or require the Company to adopt a policy not otherwise required by law which the Company has not adopted.

(d)    Availability of Injunctive Relief. Notwithstanding any other provision of this Agreement, either party may pursue in court injunctive, declaratory, and other relief incidental to the enforcement of any confidential information, non-disclosure, non-solicitation, and/or non­competition provisions contained in any agreement between the Company and Executive, including, without limitation, the provisions contained in Section 9 of this Agreement. In the event either party seeks such relief, the prevailing party shall be entitled to recover reasonable costs and attorneys’ fees.

(e)    Administrative Relief. Executive understands that this agreement does not prohibit Executive from pursuing an administrative claim with a local, state or federal administrative body such as the equal employment opportunity commission or the workers’ compensation commission. This agreement does, however, preclude Executive from pursuing court action or remedies regarding any such claim.

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18.    Voluntary Nature of Agreement. Executive acknowledges and agrees that Executive is executing this agreement voluntarily and without any duress or undue influence by the Company or anyone else. Executive further acknowledges and agrees that Executive has carefully read this agreement and that Executive has asked any questions needed for Executive to understand the terms, consequences and binding effect of this agreement and fully understand it, including that Executive is waiving Executive’s right to a jury trial. Finally, Executive agrees that he/she has been provided an opportunity to seek the advice of an attorney before signing this agreement.

19.    Integration. This Agreement, together with the Confidential Information Agreement represents, the entire agreement and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral. No waiver, alteration, or modification of any of the provisions of this Agreement will be binding unless in writing and signed by the Company.

20.    Headings. The headings of the paragraphs contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of any provision of this Agreement.

21.    Applicable Law. This Agreement shall be governed by and construed in accordance with the internal substantive laws, and not the choice of law rules, of the State of Texas. The state and federal courts of Texas shall be the exclusive forum for any non-arbitral disputes arising between the parties to this Agreement.

22.    Cooperation. Executive shall, without further remuneration, provide Executive’s reasonable cooperation in connection with any action or proceeding by a third party (or any appeal from any action or proceeding) that relates to events occurring during or relating to Executive’s employment hereunder. If Executive’s cooperation is needed under this paragraph, the Company shall use reasonable best efforts to schedule Executive’s participation at a mutually convenient time, and shall reimburse Executive for reasonable travel and out-of-pocket expenses (following presentment of reasonable substantiation). This provision shall survive any termination of this Agreement or Executive’s employment.

23.    Counterparts. This Agreement may be executed in one or more counterparts, none of which need contain the signature of more than one party hereto, and each of which shall be deemed to be an original, and all of which together shall constitute a single agreement.

24.    Tax Withholding. All payments made pursuant to this Agreement will be subject to withholding of applicable taxes.

25.    Acknowledgment. Executive acknowledges that he has had the opportunity to discuss this matter with and obtain advice from his private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement.

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IN WITNESS WHEREOF, each of the parties has executed this Executive Officer Employment Agreement, in the case of the Company by its duly authorized officer, as of the day and year first above written.

COMPANY:

Copart, Inc.

By:  /s/ William E. Franklin                    Date:     November 28, 2016            
William E. Franklin
Executive Vice President

EXECUTIVE:

By: /s/ Vikrant Bhatia                             Date:     November 28, 2016            
Vikrant Bhatia

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Exhibit A

COPART CONFIDENTIALITY AND INTELLECTUAL PROPERTY ASSIGNMENT AGREEMENT

See Attached

Exhibit A

COPART CONFIDENTIALITY AND INTELLECTUAL PROPERTY ASSIGNMENT AGREEMENT
		
	1.
	Confidential Information and Trade Secrets

a.    You agree that all non-public information communicated to you with respect to the business of Copart, Inc. and its subsidiaries and affiliated entities (collectively, “Copart”), including without limitation Copart’s business management information system and any other confidential or trade secret information (collectively “Confidential Information “) gained by you by reason of association or employment with Copart, whether or not that Confidential Information was directly, indirectly or unintentionally communicated, shall be treated by you as confidential and shall not be disclosed to anyone without Copart’s express authorization. “Confidential Information” includes, but is not limited to, all data, systems. compilations, programs, devices, strategies, concepts ideas or methods, regard less of whether kept in a document, electronic storage medium, or in your memory. and any and all information concerning or related to:
(i)    Copart’s financial condition, results of operations, and amounts of compensation paid to officers and employees;
(ii)    marketing and sales programs of Copart and the terms and conditions (including prices) of sales and offers of sales for products and/or services by Copart along with information regarding Copart’s proposed products or designs, whether or not pursued by Copart;
(iii) the terms, conditions and current status of Copart’s agreements and relationships with any customers, suppliers or other entities;
(iv)    the identities and business preferences of Copart’s actual and prospective customers and/or suppliers or any employee or agent of Copart’s actual and prospective customers and/or suppliers with whom Copart communicates along with Copart’s practices and procedures for identifying prospective customers;
(v)    the names and identities of any and all of Copart’s customers, including any and all customer lists or similar compilations;
(vi)    the manufacturing processes and techniques, regulatory approval strategies, computer programs, data, formulae, and compositions. service techniques and protocols, new product designs and other skills, ideas, and strategic plans possessed, developed. accumulated or acquired by Copart;
(vii) personnel information including the productivity and profitability (or lack thereof) of Copart’s employees, agents or independent contractors;
(viii) any communications between Copart, its officers, directors. shareholders or employees, and/or any attorney retained by Copart for any purpose, or any person retained or employed by such attorney for the purpose of assisting such attorney in his or her representation of Copart;

(ix)    the cost or overhead associated with the goods and services provided by Copart along with Copart’s pricing structure for its goods or services, including its margins, discounts, volume purchases, rebates, mark-ups and/or incentives; and

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(x)    any other matter or thing, whether or not recorded on any medium or kept in your memory, (A) by which Copart derives actual or potential economic value from such matter or thing being not generally known to other persons or entities who might obtain economic value from its disclosure or use, or (B) which gives Copart an opportunity to obtain an advantage over its competitors who do not know or use the same.
b.    You promise and agree that, both during and after your employment relationship or association with Copart, you shall not use or disclose any Confidential Information to any other person, unless specifically authorized in writing by an officer of Copart to do so. If an officer of Copart gives you written authorization to make any such disclosures or to use such information, you shall do so only within the limits and to the extent of that authorization. If a time limit is required in order to make this restriction enforceable, then the restrictions on use or disclosure of Confidential Information will only apply for three (3) years after the end of your employment or association where information that does not qualify as a trade secret is concerned (the restrictions will apply to trade secret information for as long as the information remains qualified as a trade secret).
c.    You acknowledge and agree that the unauthorized use of or disclosure of any Confidential Information constitutes unfair competition for which Copart has no adequate remedy at law thereby making injunctive relief appropriate.
d.    You agree that during your employment or association with Copart, you will not improperly use, disclose, or induce Copart to use any proprietary information or trade secrets of any former employer or other person or entity which you have an obligation to keep in confidence. You further agree that you will not bring onto Copart’s premises or transfer onto Copart’s technology systems any unpublished document, proprietary information, or trade secrets belonging to any such third party unless disclosure to, and use by, Copart has been consented to in writing by such third party.
e.    You acknowledge that Copart has received and will in the future receive confidential or proprietary information belonging to third parties (“Third Party Confidential Information”) subject to a duty on Copart’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. You hereby agree to hold all such Third Party Confidential Information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out your work for Copart consistent with Copart’s agreement with such third party. You further agree to comply with any and all Copart policies and guidelines that may be adopted from time to time regarding Third Party Confidential Information.
		
	2.
	Intellectual Property Assignment

a.    As between Copart and you, you agree that all right, title, and interest in and to any and all Company Inventions and Intellectual Property, as defined herein, are the sole property of Copart. “Company Inventions and Intellectual Property” or “CIIP” refers to all inventions, works of authorship, copyright eligible works (such as materials, records, notes, drawings, and software), ideas, designs, developments, improvements, discoveries, and other intellectual property you develop, discover, or create (i) that relate to Copart’s business, or to any actual or demonstrably anticipated research, future work, or projects of Copart, whether or not conceived or developed alone or with others, and whether or not conceived or developed during regular working hours, or (ii) that result from any work you performed for Copart, performed on company time, or performed using Copart’s property, resources, or Confidential Information. You hereby assign to Copart, without further consideration, your entire right, title, and interest (throughout the United States and in all foreign countries) free and clear of all liens and encumbrances in and to all such CIIP, which shall be the sole property of Copart, whether or not patentable. You also agree to promptly make full written disclosure to Copart of any CIIP.
b.    You hereby acknowledge and agree that all writings, ideas, information, and other works which may be copyrighted (including software and computer programs) which are related to the present or planned, 

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or reasonably anticipated business of Copart and are prepared by you (solely or jointly with others) during your relationship with Copart shall be, to the extent permitted by law, deemed to be “works for hire” or the result of “works for hire,” as defined by U.S. copyright laws, with the copyright automatically vesting in Copart. To the extent that such writings and works are not works for hire, you hereby waive any and all rights in such writings and works and hereby assign to Copart all of your present and future rights, title and interest, including copyright, in such writings and works.
c.    Any assignment to Copart of CIIP includes all rights of attribution, paternity, integrity, modification, disclosure and withdrawal, and any other rights throughout the world that may be known as or referred to as “moral rights,” “artist’s rights,” “droit moral,” or the like (collectively, “Moral Rights”). To the extent that Moral Rights cannot be assigned under applicable law, you hereby waive and agree not to enforce any and all Moral Rights, including, without limitation, any limitation on subsequent modification, to the extent permitted under applicable law.
d.    You agree to keep and maintain adequate, current, accurate, and authentic written records of all CIIP made by you (solely or jointly with others) during the term of your employment or association with Copart. The records will be in the form of notes, sketches, drawings, electronic files, reports, or any other format that may be specified by Copart. As between Copart and you, the records are and will be available to and remain the sole property of Copart at all times.
e.    You further agree to reasonably cooperate with Copart, both during and after employment or association with Copart, in obtaining and enforcing patents, copyrights, trademarks, and other protections of Copart’s rights in and to all CIIP. Without limiting the generality of the foregoing, you shall, at any time during or after employment or association with Copart, at Copart’ s request, execute all papers, render all assistance, and perform all lawful acts which Copart considers necessary or advisable for the preparation, filing, prosecution, issuance, procurement, maintenance or enforcement of patents, trademarks, copyrights and other protections, and any applications for any of the foregoing, of the United States or any foreign country for any CIIP and for the transfer of any interest you may have therein. You shall execute any and all papers and documents required to vest title in Copart or its nominee in any CIIP. If Copart is unable because of your mental or physical incapacity or for any reason to secure your signature to apply for or pursue any application for any United States or foreign patent, copyright or other registration covering CIIP, then you hereby irrevocably designate and appoint Copart and its duly authorized officers and agents as your agent and attorney in fact, to act for and on your behalf to do all lawfully permitted acts to further the prosecution and issuance of such registrations with the same legal force and effect as if executed by you.
f.    Attached hereto as Schedule A is a list describing all inventions, original works of authorship, developments, improvements and trade secrets that were made by you prior to your employment with Copart, that relate to Copart’s proposed business, products or research and development, and are owned in whole or in part by you (“Prior Inventions”); or, if no such list is attached or if Schedule A is unsigned, you represent that there are no such Prior Inventions. You agree that you will not incorporate, or permit to be incorporated, any Prior Invention into any Copart product, process or service without Copart’s prior written consent. Nevertheless, if, in the course of your employment with Copart, you incorporate into a Copart product, process or service a Prior Invention, you hereby grant to Copart a nonexclusive, royalty-free, fully paid-up, irrevocable, perpetual, transferable, sublicensable, worldwide license to reproduce, make derivative works of, distribute, perform, display, import, make, have made, modify, use, sell, offer to sell, and exploit in any other way such Prior Invention as part of or in connection with such product, process or service, and to practice any method related thereto.

g.    Some state laws may not allow the assignment of certain inventions under this Agreement, including certain inventions that you develop entirely on your own time without using Copart’s equipment, supplies, facilities, trade secret information or Confidential Information (an “Other Invention”). You agree to 

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advise Copart promptly in writing of any invention that you believe constitutes an Other Invention and is not otherwise disclosed on Schedule A. You agree that you will not incorporate, or permit to be incorporated, any Other Invention owned by you or in which you have an interest into a Copart product, process or service without Copart’s prior written consent. Notwithstanding the foregoing sentence, if, in the course of your employment with Copart, you incorporate into a Copart product, process or service an Other Invention owned by you or in which you have an interest, you hereby grant to Copart a nonexclusive, royalty-free, fully paid-up, irrevocable, perpetual, transferable, sublicensable, worldwide license to reproduce, make derivative works of, distribute, perform, display, import, make, have made, modify, use, sell, offer to sell, and exploit in any other way such Other Invention as part of or in connection with such product, process or service, and to practice any method related thereto.
		
	3.
	Conflicting Obligations

You hereby represent and warrant that you have no other agreements, relationships, or commitments to any other person or entity that conflict with the provisions of this Agreement, your obligations to Copart under this Agreement, or your ability to perform the services for which you are being retained by Copart. You further agree that if you have signed a confidentiality agreement or similar type of agreement with any former employer or other entity, you will comply with the terms of any such agreement to the extent that its terms are lawful under applicable law. You represent and warrant that after undertaking a careful search (including searches of your computers, cell phones, electronic devices, and documents), you have returned all property and confidential information belonging to all prior employers (and/or other third parties you have performed services for in accordance with the terms of your applicable agreement).

		
	4.
	Return of Company Materials

Following the end of your employment or association with Copart or at any time upon demand from Copart, you will immediately deliver to Copart, and will not keep in your possession, recreate, or deliver to anyone else, any and all Copart property, including, but not limited to, Confidential Information, Third Party Confidential Information, all devices and equipment belonging to Copart (including computers, handheld electronic devices, telephone equipment, and other electronic devices), all tangible embodiments of the CIIP, all electronically stored information and passwords to access such property, Copart credit cards, records, data, notes, notebooks, reports, files, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, photographs, charts, any other documents and property, and reproductions of any of the foregoing items, including, without limitation, those records maintained pursuant to Section 2(e). You also hereby consent to an exit interview (at Copart’s election) to confirm your compliance with this Section 4.

		
	5.
	Miscellaneous

a.    The laws of the State of Texas (without regard to Texas’s conflict of law rules), as well as any and all applicable federal law, including U.S. copyright laws, shall apply to this Agreement. You hereby expressly consent to the personal and exclusive jurisdiction and venue of the state and federal courts located in Dallas County, Texas, for any lawsuit arising out of this Agreement.
b.    This Agreement will be binding upon your heirs, executors, assigns, administrators, and other legal representatives, and will be for the benefit of Copart, its successors, and its assigns. There are no intended third-party beneficiaries to this Agreement, except as may be expressly otherwise stated. Notwithstanding anything to the contrary herein, Copart may assign this Agreement and its rights and obligations under this Agreement to any successor to all or substantially all of Copart’s relevant assets, whether by merger, consolidation, reorganization, reincorporation, sale of assets or stock, or otherwise, without the need for further consent by you.

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c.    This Agreement, together with Schedule A, sets forth the entire agreement and understanding between the Company and you with respect to the subject matters contained herein and supersedes all prior written and oral agreements, discussions, or representations between us regarding these subject matters.
d.    If a court or other body of competent jurisdiction finds, or the parties mutually believe, any provision of this Agreement, or portion thereof, to be invalid or unenforceable, such provision will be enforced to the maximum extent permissible so as to effect the intent of the parties, and the remainder of this Agreement will continue in full force and effect.
e.    No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in a writing signed by the President or CEO of Copart and you. Waiver by Copart of a breach of any provision of this Agreement will not operate as a waiver of any other or subsequent breach.

f.    The rights and obligations of the parties to this Agreement will survive termination of your employment or association with Copart.

Acknowledged and agreed:

By:                                 Date:                 
    

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Exhibit A

Schedule A

LIST OF PRIOR INVENTIONS

If you have Prior Inventions, please list them in the space below. If you do not have any Prior Inventions or you would like to include additional Prior Inventions on separate pages, check the appropriate box at the bottom of the page.

	
					
	Title
	 
	Date
	 
	Identifying Number or Brief Description

Check the following as applicable:
	
		
	 
	All of my Prior Inventions are listed above

	 
	 

	 
	I have no Prior Inventions

	 
	 

	 
	I have attached additional sheets describing my Prior Inventions

Signature of Employee:                       
Type or Print Name of Employee:                       
Date:          

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