Document:

Exhibit

Exhibit 10.27

JOHN H. SCRIBANTE
MUTUAL TERMINATION AND SEVERANCE AGREEMENT 
AND 
COMPLETE AND PERMANENT MUTUAL RELEASE OF ALL CLAIMS

THIS MUTUAL TERMINATION AND SEVERANCE AGREEMENT AND COMPLETE AND PERMANENT MUTUAL RELEASE OF ALL CLAIMS (“Agreement and Release”) is made by and between ORION ENERGY SYSTEMS, INC. (“Company”) and JOHN H. SCRIBANTE (“Scribante”) and is executed as of June 8, 2017.
A.WHEREAS, Scribante and Company are currently parties to an Executive Employment and Severance Agreement dated as of September 27, 2012, as amended as of December 1, 2012 (“Employment Agreement”).
B.    WHEREAS, Scribante and Company are also currently parties to a Proprietary Information and Intellectual Property Agreement dated as of June 25, 2007 (“Intellectual Property Agreement”).
C.    WHEREAS, Scribante and Company are also currently parties to a number of stock option agreements and restricted stock award agreements (“Equity Grant Agreements”).
D.    WHEREAS, on May 25, 2017 (“Termination Date”), Company’s Board of Directors took action to terminate Scribante as Company’s Chief Executive Officer without Cause (as defined in the Employment Agreement) under Section 4(c) of the Employment Agreement.
E.    WHEREAS, as a result of Scribante’s termination of employment without Cause by Company on the Termination Date, he is entitled to his Accrued Benefits (as defined in the Employment Agreement) and to the severance payments described in Section 5(c) of the Employment Agreement (collectively, “Severance Payment”).
F.    WHEREAS, in connection with his termination of employment without Cause by Company on the Termination Date, Scribante also hereby agrees to voluntarily retire as a director of Company and of each subsidiary and affiliate of Company as of the date hereof, and as an officer of each subsidiary and affiliate of Company as of the date hereof.
G.    WHEREAS, in consideration of Scribante agreeing to all of the terms and conditions of this Agreement and Release, Company is willing to provide Scribante with certain payments and benefits, including the Severance Payment and other additional benefits described below, pursuant to Section 5(c) of the Employment Agreement and as otherwise set forth below.
NOW THEREFORE, Company and Scribante, in consideration of the mutual promises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, agree as follows:
1.Termination and Retirements.  In connection with his termination of employment without Cause by Company on the Termination Date, Scribante hereby voluntarily retires and ceases service as (a) a director of the Company and of any and all plans, subsidiaries and affiliates thereof; (b) the chairman of the Board’s DEA Committee; and (c) an officer of any and all plans, subsidiaries and affiliates of Company, in each case above, effective for all purposes as of the date hereof.  Company hereby accepts such retirements.  Scribante agrees not to reapply for employment with Company or any subsidiary or affiliate thereof.  In connection with his retirement as a director of Company, Scribante agrees that he is not doing so as a result of any disagreement with Company, and he will not provide Company with any written correspondence, in either case, that would require Company to publicly disclose any such circumstance pursuant to a Form 8-K to be filed with the Securities and Exchange Commission.
2.    Severance Payments and Other Additional Benefits.  Subject to Scribante’s compliance with this Agreement and Release and the continuing provisions of the Employment Agreement, Intellectual Property Agreement and the Equity Grant Agreements applicable to Scribante:
A.    Severance Payment.  Within three (3) business days after the date hereof, as Severance Payment to Scribante hereunder and under his Employment Agreement, Company will pay Scribante a cash lump sum of $1,172,123.29, less required withholdings.  In accordance with the Employment Agreement, the Severance Payment was calculated as follows:  (i) two times Scribante’s current annual base salary of $545,000 (it being acknowledged and agreed that Scribante received no bonus payments over the prior three Company fiscal years) plus (ii) Scribante’s fiscal 2018 annual target bonus of one-hundred percent (100%) of his annual 

base salary multiplied by a fraction, the numerator of which is the number of days that have elapsed during Company’s fiscal 2018 through the Termination Date (55) and the denominator of which is 365.  Scribante has no other claims with respect thereto.
B.    Stock Options and Restricted Stock Awards.  All of Scribante’s stock options and restricted stock (and any related restricted cash) awards that have not vested as of the date hereof are hereby forfeited and cancelled.  All of Scribante’s stock options that have vested as of the date hereof may be exercised by him until ninety (90) days after the Termination Date.  Scribante shall retain all of his restricted stock (and be paid on any related restricted cash) awards that have vested as of the date hereof.  Pursuant to the above provisions of this Section 2B, and to avoid any ambiguity, (i) on May 15, 2017, Scribante vested in 25,159 restricted shares and $70,445.34 in restricted cash pursuant to his tandem restricted stock and restricted cash award agreement granted May 15, 2014; (ii) on May 26, 2017, Scribante vested in 47,814 restricted shares and $70,445.33 restricted cash pursuant to his tandem restricted stock and restricted cash award agreement granted May 26, 2015; and (iii) on June 7, 2017, Scribante vested in 78,694 restricted shares and $72,398.67 restricted cash pursuant to his tandem restricted stock and restricted cash award agreement granted June 7, 2016.  All of such restricted shares (totaling 151,667 shares) will be issued to Scribante by or on behalf of Company, and all such restricted cash (totaling $213,289.34) (less required withholdings) will be paid to Scribante by Company, within three (3) business days of the date hereof.  Scribante has no other claims with respect thereto.
C.    Salary and Other Compensation Through Termination Date.  Scribante acknowledges that he has received all of his normal salary and other compensation (including his automobile allowance) otherwise due to him through the Termination Date.  In addition, Scribante has received his normal salary from and after the Termination Date through May 31, 2017, totaling $5,939.14 (less required withholdings).  Scribante has no other claims with respect thereto.
D.    Accrued Vacation.  Within three (3) business days of the date hereof.  Company will pay Scribante his accrued and unused pro-rated vacation days for fiscal 2018 in the amount of $55,547.98 (less required withholdings).
E.    Business Expenses.  Scribante acknowledges and agrees that Company has reimbursed him for all business expenses incurred by him through the Termination Date that conform to Company’s business expense policy.  Scribante has no other claims with respect thereto.
F.    COBRA Coverage.  Consistent with Company’s current policy, Company shall pay the employer’s portion (with Scribante paying the employee portion) of Scribante’s COBRA continuation coverage for eighteen (18) months after the Termination Date.  Scribante has no other claims with respect thereto.
G.    Life Insurance Policies.  Company shall assign to Scribante all of Company’s interest in the policies of insurance on Scribante’s life currently in effect.  These assignments shall take place as promptly as practical (but no later than 60 days) after the date hereof.  Scribante will be responsible for all future premium payments due and payable on such policies beginning after the date of assignment.  Scribante has no other claims with respect thereto.
H.    Tail D&O Insurance.  As promptly as practical after the date hereof, Company shall obtain, at its cost and expense, a six-year tail director and officer insurance policy covering Scribante on the same terms and conditions as the similar tail director and officer insurance policies previously obtained by Company for its retiring directors.
I.    Kohler Club Membership.  Company shall assign to Scribante all of Company’s interest in Scribante’s Kohler Club membership (if any).  The assignment shall take place as promptly as practical after the date hereof.  Scribante will be responsible for all future dues and other payments due and payable with respect to such membership beginning after the date of assignment.  Scribante has no other claims with respect thereto.
J.    Cessation of All Other Benefits.  Other than as set forth above (or vested rights under Scribante’s Company 401(k) Plan account), Scribante acknowledges and agrees that all coverage and/or benefits under all other benefit and insurance plans and programs maintained by Company, including long-term and short-term disability, ceased as of the Termination Date.  Scribante has no other claims with respect thereto.
K.    No Unemployment Compensation Claim.  From and after the Termination Date, Scribante agrees not to file for unemployment compensation relating to his employment with, or termination from, Company or any subsidiary or affiliate thereof.
L.    Waiver of Any Other Compensation and Benefits.  Scribante acknowledges and agrees that he is not entitled to, and he hereby completely waives and releases, any and all rights to any other severance, compensation, bonuses, reimbursements, 

2

allowances, dues or other benefits or insurance from or by Company or any affiliate or subsidiary thereof, except as otherwise specifically provided in this Agreement and Release.
3.    Return of All Company Documents and Property.  Excluding Scribante’s personal files and property (which will be returned to him within three (3) business days of the date hereof), within three (3) business days of the date hereof, Scribante will return to Company all documents and property (including, without limitation, all records, memoranda, notes, correspondence, customer information, reports, manuals, plans, computer discs, tapes and files, printouts, software, presentations and the like, including all copies thereof, computers, telephones, PDAs, equipment, access cards, keys and the like) in his possession or under his control pertaining to Company’s business.  Scribante will not copy or cause to be copied any of Company’s records nor cause a removal of any record, document or property belonging to Company from the premises without authorization from Company.  Company agrees that it will facilitate Scribante’s transfer into his personal records or computer all of his personal contact information contained in his Company records and files.
4.    Ongoing Compliance with Various Obligations.  
A.    Ongoing Confidentiality Agreement.  Scribante hereby reaffirms and restates his continuing obligations as set forth in Section 7(a) of the Employment Agreement to maintain the confidentiality of Company information, which Section 7(a) is hereby incorporated by reference herein and shall remain in full force and effect unaffected by this Agreement and Release.  Scribante understands and agrees that, except specifically as provided in Section 7(a) of the Employment Agreement, this is an absolute and strict obligation of confidentiality and nonuse of information important to Company’s continued business success.  Scribante recognizes and agrees that additional consideration to which he would not otherwise be entitled is being provided to him hereunder for him to reaffirm and agree to his foregoing obligations.
B.    Ongoing Noncompetition and Nonsolicitation Agreement.  Scribante hereby reaffirms and restates his continuing obligations as set forth in Section 7(b) of the Employment Agreement not to compete with Company, and not to solicit the Company’s customers, agents, vendors and employees, for two years from and after the Termination Date on the terms and conditions, and to the extent, set forth in Section 7(b) of the Employment Agreement, which Section 7(b) is hereby incorporated by reference herein and shall remain in full force and effect unaffected by this Agreement and Release.  Scribante recognizes and agrees that additional consideration to which he would not otherwise be entitled is being provided to him hereunder for him to reaffirm and agree to his foregoing obligations.
C.    Disclosure and Assignment of Inventions and Innovations.  Scribante hereby reaffirms and restates his continuing obligations as set forth in Section 7(c) of the Employment Agreement with respect to the disclosure and assignment to Company of all Innovations (as defined in the Employment Agreement), which Section 7(c) is hereby incorporated by reference herein and shall remain in full force and effect unaffected by this Agreement and Release.  Scribante recognizes and agrees that additional consideration to which he would not otherwise be entitled is being provided to him hereunder for him to reaffirm and agree to his foregoing obligations.
D.    Intellectual Property Unaffected.  Scribante understands and agrees that this Agreement and Release does not and shall not supersede any obligations pertaining to confidential/proprietary information or intellectual property pursuant to any agreements that he has previously entered into with Company and Scribante further understands and agrees that in consideration of the Severance Payment and other benefits provided to him pursuant to Section 2 of this Agreement and Release, Scribante’s Intellectual Property Agreement with Company is hereby reaffirmed and restated in all respects, is hereby incorporated herein by reference and shall remain in full force and effect unaffected by this Agreement and Release.  Scribante shall promptly and fully comply with any request of Company, its attorneys and agents with respect to Company’s intellectual property rights.  For two years after the Termination Date, Scribante will not initiate, propose, support, or otherwise participate in any acquisition or attempted acquisition (e.g., via the USPTO, license, purchase, or other means) of intellectual property in or related to the fields of lighting or lighting controls.  Moreover, Scribante will not take any action, directly or indirectly, that will damage or otherwise impair the value of Company’s existing or future intellectual property.  Scribante recognizes and agrees that additional consideration to which he would not otherwise be entitled is being provided to him hereunder for him to reaffirm and agree to his foregoing obligations.
E.    Equity Grant Agreements Unaffected.  Scribante understands and agrees that this Agreement and Release does not and shall not supersede any of his ongoing rights and obligations set forth in the Equity Grant Agreements and Scribante further understands and agrees that in consideration of the Severance Payment and other benefits provided to him pursuant to Section 2 of this Agreement and Release, Scribante’s Equity Grant Agreements with Company are hereby reaffirmed and restated in all respects, are hereby incorporated herein by reference and shall remain in full force and effect unaffected by this Agreement and Release.  Scribante 

3

recognizes and agrees that additional consideration to which he would not otherwise be entitled is being provided to him hereunder for him to reaffirm and agree to his foregoing obligations.
F.    Equitable Relief.  In the event of any breach by Scribante of any of the covenants herein contained in this Section 4 (including Sections 7(a), 7(b) and/or 7(c) of the Employment Agreement, his Intellectual Property Agreement and his Equity Grant Agreements), it is specifically understood and agreed that Company shall be entitled, in addition to any other remedy which it may have, to equitable relief by way of injunction or otherwise.
G.    Necessary and Reasonable Restrictions.  The foregoing restrictions in this Section 4 (including Sections 7(a), 7(b) and 7(c) of the Employment Agreement, his Intellectual Property Agreement and his Equity Grant Agreements) are deemed fair and reasonable to Company and Scribante, and Scribante acknowledges and agrees that these restrictions are necessary to protect Company from the unfair competition of Scribante who, as a result of his long-standing association with, and as an executive and director of, Company, has had access to, used and/or acquired confidential information of Company pertaining to its customers, agents, vendors, business and operations.  Scribante acknowledges and agrees that such confidential information is of special and unique value to, and constitutes a valuable asset of, Company, and that the duration and scope of the restrictive covenants contained herein (including Sections 7(a), 7(b) and 7(c) of the Employment Agreement, his Intellectual Property Agreement and his Equity Grant Agreements) are reasonable and necessary to protect Company.
H.    Other Agreements.  Scribante understands and agrees that  this Agreement and Release does not and shall not supersede any obligations pertaining to any non-compete, non-solicitation, and confidentiality agreements that he has previously entered into with the Company, including those contained in the Employment Agreement, his Intellectual Property Agreement and his Equity Grant Agreements, and Scribante further understands and agrees that in consideration of the Severance Payment and other benefits provided to him pursuant to Section 2 of this Agreement and Release, his prior agreements are hereby ratified and reaffirmed in all respects and shall remain in full force and effect in accordance with the respective terms thereof.  Scribante also agrees for a period of two years from the Termination Date not to, directly or indirectly, (i) initiate, propose, support, or otherwise participate in any offer to acquire, acquisition, merger, tender offer or other business combination transaction affecting Company; (ii) initiate, propose, support or otherwise participate in any proxy contest, proxy solicitation or shareholder proposal relating to Company; (iii) acquire any additional stock of the Company (other than pursuant to option exercises or stock purchases that are strictly a passive investment and in any event not to exceed total beneficial ownership of five percent (5%) of Company’s fully-diluted outstanding common stock); or (iv) attempt to influence or interfere or otherwise adversely affect the Board of Directors, management or affairs of Company.  For two years from the Termination Date, Scribante will vote all Company shares beneficially owned by him in favor of any Board of Directors recommendation submitted to a vote of Company’s shareholders.  Company hereby agrees to indemnify Scribante for any adverse impact to him of the Severance Payment and other consideration paid to him pursuant to this Agreement and Release under Internal Revenue Code Section 409A.
5.    Scribante’s Release.
A.    General Release.  In consideration of the Severance Payment and additional benefits provided to Scribante pursuant to Section 2 of this Agreement and Release, Scribante, individually, and as an officer, director, employee and shareholder of Company and in all other capacities, does hereby fully and completely forever discharge, waive and release, and covenants not to sue, Company (including its subsidiaries and affiliates) and its past, present and future employees, agents, representatives, attorneys, officers, directors and shareholders, from and with respect to any and all actions, causes of action, claims, demands, damages, liabilities, costs, expenses and/or compensation of any kind and nature whatsoever (collectively and individually, “Claims”) on account of, or in any way growing out of, any and all known and unknown facts, circumstances or matters resulting from or related to (i) Scribante’s ownership of stock in Company; (ii) Scribante’s employment with Company and his status, position, actions or failure to act in his capacity as an officer, director, employee or representative of Company; (iii) the termination of Scribante’s employment with Company; and/or (iv) any or all of the above, except only a breach or default by Company of this Agreement and Release, including, but not limited to Company’s failure to pay or provide Scribante any and all amounts or consideration due hereunder.  Notwithstanding the foregoing in this Section 5A, Company shall be obligated to indemnify Scribante to the full extent allowed by Wisconsin law and its Bylaws if he is or should become a party or is threatened to be made a party to any formal or informal threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, initiated by a third party (collectively, “Actions” and individually an “Action”), by reason of the fact that he is or was a director or officer of Company (or any subsidiary or affiliate thereof), or by reason of the fact that Scribante is or was a director or officer of Company (or any subsidiary or affiliate thereof) and is or was serving at the request of Company as a director, officer, employee, consultant or agent of another corporation, partnership, joint venture, trust or other enterprise, or is or was serving at the request of Company as a fiduciary of an employee benefit plan or as an employee or agent of Company (or any subsidiary or affiliate thereof), against (a) reasonable expenses actually incurred by him, including without limitation, attorneys’ fees actually and reasonably incurred by him in connection with any Action; (b) amounts actually and reasonably incurred by him in 

4

settlement of any Action; and (c) judgments, fines, penalties or other amounts actually incurred by him pursuant to an adjudication of liability in connection with any Action.
B.    Specific Release.  By way of example only and without in any way limiting the generality of the foregoing release language set forth in Section 5A above, Scribante’s release includes a complete release of any and all Claims under or based on (i) Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §2000e et seq.; (ii) the Americans with Disabilities Act of 1991, 42 U.S.C. §1211-1217; (iii) the Rehabilitation Act of 1973, as amended, through 1988; (iv) the Employment Retirement Income Security Act of 1974, 29 U.S.C. §1001 et seq.; (v) the Fair Labor Standards Act of 1938, 29 U.S.C. §201 et seq.; (vi) the National Labor Relations Act, 29 U.S.C. §151 et seq.; (vii) the Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et seq.; (viii) the Wisconsin Fair Employment Law, § 111.33, et seq., Wis. Stats.; (ix) the Wisconsin Family and Medical Leave Act, § 103.10, Wis. Stats.; (x) any other federal, state or local statute, ordinance or regulation dealing in any respect with employment, discrimination or retirement of employment; (xi) any alleged wrongful or retaliatory discharge, breach of an oral or written contract, misrepresentation, defamation, interference with contract or tortuous conduct; and (xii) any alleged breach of fiduciary duty or other claim relating to Scribante’s past, current and/or continuing ownership of stock.
C.    Complete Bar of Claims.  It is the intention of Scribante in executing this Agreement and Release that these provisions of this Section 5, subject to the exceptions set forth in Section 5A above, shall be effective as a complete bar to each and every Claim hereinabove described and that these provisions shall be binding upon Scribante and his agents, attorneys, personal representatives, executors, administrators, heirs, beneficiaries, successors and assigns.
6.    Company’s Release.
A.    General Release.  Company does hereby fully and completely forever discharge, waive and release, and covenants not to sue, Scribante (including his agents, representatives and attorneys) from any and all Claims on account of, or in any way growing out of, any and all known and unknown facts, circumstances or matters resulting from or related to Scribante’s (i) status, position, actions or failure to act in his capacity as an officer, director, employee, shareholder or representative of Company (or any subsidiary or affiliate thereof); (ii) employment with Company; and (iii) the termination of his employment with Company, or any of the above, or for any other reason, except only a breach or default by Scribante of this Agreement and Release or the continuing provisions of the Employment Agreement, the Intellectual Property Agreement or the Equity Grant Agreements applicable to Scribante pursuant to Section 4 above.
B.    Complete Bar of Claims.  It is the intention of Company in executing this Agreement and Release that these provisions of this Section 6, subject to the exceptions set forth in Section 6A above, shall be effective as a complete bar to each and every Claim hereinabove described and that those provisions shall be binding upon Company (or any subsidiary or affiliate thereof) and its agents, representatives, administrators, beneficiaries, successors and assigns.
7.    Acceptance.  Scribante acknowledges that he has had sufficient time to read this Agreement and Release and consider his acceptance of this Agreement and Release and voluntarily enters into this Agreement and Release with full knowledge of its meaning and consequences.  In entering into this Agreement and Release, Scribante has been represented by legal counsel and is otherwise relying on his own judgment and knowledge and not on representations or statements made by Company, its shareholders, directors, officers, employees, attorneys or agents.  Scribante has executed this Agreement and Release in consideration for the Severance Payment, benefits and other consideration described above and Scribante acknowledges and agrees that such Severance Payment, other benefits and other consideration represent substantial consideration in addition to anything of value that he is otherwise entitled to receive from Company under his Employment Agreement or otherwise.  The Severance Payment, other additional benefits and other consideration described above are sufficient to fully support this Agreement and Release and the termination of Scribante without Cause from his employment with Company.
8.    Non-Admission.  The parties execution of this Agreement and Release is not to be construed an admission of any wrongdoing or liability whatsoever by or on behalf of either party, or his or its respective directors, officers, employees, representatives, attorneys or agents.
9.    Governing Law.  This Agreement and Release shall be construed and enforced in accordance with the laws of the State of Wisconsin.
10.    Relationship of Severance Payment to Scribante’s Rights Under Other Benefit Plans.  Scribante agrees that the Severance Payment, other additional benefits and other consideration payable to him hereunder shall not be taken into account for purposes of determining any of his benefits under any qualified or nonqualified benefit plans of Company.

5

11.    Violation of this Agreement and Release.  If either party breaches or violates this Agreement and Release and/or the continuing provisions of the Employment Agreement, the Intellectual Property Agreement or the Equity Grant Agreements applicable to Scribante pursuant to Section 4 in any way (a “Breach”), or if either party brings an action asking that this Agreement and Release be revoked, declared invalid or unenforceable, then if either party’s action against the other party is unsuccessful, or if either party successfully brings an action against the other party for such other party’s Breach, the unsuccessful party hereby agrees that he or it will pay all costs, expenses and reasonable attorneys’ fees incurred by the successful party in its successful defense against the action that the unsuccessful party brought or in the successful party’s successful prosecution of the action it brought against the unsuccessful party.
12.    Entire Agreement.  This Agreement and Release, including the continuing provisions of the Employment Agreement, the Intellectual Property Agreement and the Equity Grant Agreements pursuant to Section 4, constitutes the entire agreement between the parties with respect to the subject matter hereof.
13.    Counterparts; Delivery.  This Agreement and Release may be executed by the parties in separate counterparts and may be legally delivered by any electronic means.

6

IN WITNESS WHEREOF, the parties have duly executed this Agreement and Release as of the date first set forth above.
	
			
	 
	ORION ENERGY SYSTEMS, INC.
	ORION ENERGY SYSTEMS, INC.

	 
	 
	 

	 
	 
	By:  /s/ Michael W. Altschaefl

	 
	 
	Michael W. Altschaefl

	 
	 
	Chief Executive Officer and Board Chair

	 
	 
	 

	/s/ John H. Scribante
	 
	 

	John H. ScribanteExhibit 10.1

EXECUTIVE VICE PRESIDENT

EXECUTIVE AGREEMENT

 

This Employment Agreement (“Agreement”) is between Sean Ebner (“Executive”) and TrueBlue, Inc. or a TrueBlue, Inc. subsidiary, affiliate, related business entity, successor, or assign (collectively “TrueBlue” or “Company”) and is effective as of June 13, 2017.

I.  COMPENSATION AND POSITION.

	
A.

	
Employment.

 

Executive wishes to be employed with Company, and Company wishes to employ Executive as a Company Executive Vice President (“EVP”) under the terms and conditions stated in this Agreement.  Additionally, Executive will have access to company-wide confidential and propriety information, including strategic planning information, which is vital to the ability of Company and its affiliates to compete in all of its locations.  Executive’s entering into this Agreement is a condition of employment and access to such materials.  Valuable consideration, including without limitation, the mutual covenants and promises contained herein, and the terms of Section II.A.2, is provided to Executive to enter this Agreement, the sufficiency of which is expressly acknowledged.

	
B.

	
Effective Date.

The terms and conditions of this Agreement shall become effective as of the date written above, provided that Executive has voluntarily accepted and executed Company’s Non-Competition Agreement (provided herewith).  Acceptance and execution of Company’s Non-Competition Agreement is a condition of employment, continued employment, and is a condition precedent to the enforceability of this Agreement.

	
C.

	
Title and Compensation.

1.     Title.  Executive’s title shall be President of PeopleReady, and Executive Vice-President of TrueBlue, Inc.  Executive may also have additional Company or Company affiliate titles.  Executive’s title is subject to change, and shall be set forth in the Executive’s record with Company’s Human Resources department.  Executive shall have such responsibilities, duties and authority as are customarily assigned to such position and shall render services as directed. These responsibilities, duties and authority are as outlined in the executive job description and given to Executive prior to commencement of employment.

2.     Annual Base Salary.  Executive will receive a salary in the gross amount in accordance with the terms and conditions of the offer letter (“Offer Letter”) attached hereto as Exhibit A, which shall be on file with Company’s Human Resources department. This position  is a salaried position 

	
Employment Agreement

	
-1-

	
 

which is exempt under the Fair Labor Standards Act and relevant state law.   This salary is in compensation for all work performed by Executive.  Executive warrants and acknowledges that Executive is not entitled to “overtime” pay.  Company may withhold from any amounts payable under this Agreement all federal, state, city or other taxes as Company is required to withhold pursuant to any applicable law, regulation or ruling and other customary and usual deductions.

3.     Bonus and Equity Awards.  Executive will be eligible for an Annual Bonus, Special Bonus, an On Hire Equity Award, and future equity awards, and incentives, in accordance with the terms and conditions of the Offer Letter.  The Bonus Plan and all aspects of bonus compensation may be changed at the discretion of the Compensation Committee and/or the Board of Directors.

	
D.

	
Benefits.

1.     General.  Executive shall be entitled to all benefits offered generally to Executives of Company in accordance with the terms of the Offer Letter.

2.     Health & Welfare Benefits.  Executive shall be entitled to all health and welfare benefits offered generally to employees of Company.

3.     Paid Time Off.  Executive shall be entitled each year during Executive’s employment to the number of vacation outlined in the Offer Letter.

4.     Business Expenses.  Business expenses will be reimbursed in accordance with Company policies.

II. TERMS AND CONDITIONS.

	
A.

	
Employment

1.     Employment at Will.  Company and Executive agree that Executive’s employment is not for any specific or minimum term or duration, and that subject to Section II(A)(2) of this Agreement, the continuation of Executive’s employment is subject to the mutual consent of Company and Executive, and that it is terminable at will, meaning that either Company or Executive may terminate the employment at any time, for any reason or no reason, with or without cause, notice, pre-termination warning or discipline, or other pre- or post-termination procedures of any kind.  Executive acknowledges and agrees that any prior representations to the contrary are void and superseded by this Agreement, and that Executive may not rely on any future representations to the contrary, whether written or verbal, express or implied, by any statement, conduct, policy, handbook, guideline or practice of Company or its employees or agents.  Nothing in this Agreement creates any right, contract or guarantee of continued or a length of term period of employment or gives Executive the right to any particular level of compensation or benefits and nothing in this Agreement should be construed as such.  The parties agree that any decision maker who is charged with reviewing disputes surrounding Executive’s employment shall reject any legal theory, whether in law or in equity, that is claimed to alter at-will employment, unless such theory cannot be waived as a matter of law.

2.     Post Termination Payments.

(a)    In the event of termination of Executive’s employment for any or no reason or with or without Cause, by either Company or Executive, or if Executive’s employment ends due to the death or disability of Executive, Executive shall be paid unpaid wages, and unused vacation earned through the termination date.

	
Employment Agreement

	
-2-

	
 

(b)    Provided that Executive’s employment does not end due to Executive’s death or disability, if Company terminates Executive’s employment without Cause as defined in this Agreement, or Executive terminates employment with Good Reason as defined in this Agreement, subject to the conditions set forth below, in addition to the amounts described in Sections II(A)(2)(a), Executive shall be provided with the following as the sole remedy for such termination, subject to withholding:

 

           (i)     separation payments for twelve (12) months from the termination date at the base monthly salary in effect for Executive on the termination date, with the actual period of receipt of such payments being referred to as the “Severance Period”, provided, however, that if at the time of the Executive’s termination of employment the Executive is considered a “specified employee” subject to the required six-month delay in benefit payments under Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended, (which Executive’s current on-hire position does qualify), then the separation payments that would otherwise have been paid within the first six (6) months after the Executive’s termination of employment shall instead be paid in a single lump sum on (or within 15 days after) the six-month anniversary of such termination of employment.  Payments for the remaining six (6) months shall be made monthly after such six-month anniversary;

 

        (ii)    continued vesting in any previously awarded stock options, restricted stock and other equity awards as if Executive had worked for Company for twelve (12) months after Executive’s termination date, provided that any options or other equity awards that are not exercised within the time periods for exercise set forth in the applicable plan, sub-plan or grant agreement, shall expire in accordance with the terms of such plan, sub-plan or grant agreement, as this continued vesting will not extend or otherwise delay the time period for exercising an option or other equity award; and

 

        (iii)    pro rata share of all short term incentive bonus earned up to and based on date of termination.  All short term incentive bonuses shall be paid by the company on the normal schedule for such grants, which typically occurs in February of the following year.

(c)     As a condition precedent to being entitled to receive the benefits set forth in Section II(A)(2)(b), within twenty-one (21) days of Executive’s termination, Executive must (i) sign and deliver and thereafter not revoke a release in the form of Exhibit B to this Agreement in accordance with its terms or a form otherwise acceptable to Company; (ii) be and remain in full compliance with all provisions of Section III and IV of this Agreement; and (iii) be and remain in full compliance with Company’s Non-Competition Agreement and any other covenants with Company entered into by Executive.   Company shall have no obligation to make any payments or provide any benefits to the Executive hereunder unless and until the effective date of the waiver and release agreement, as defined therein.

3.     Cause.

(a)    For the purpose of this Agreement, “Cause,” as used herein, means any of the following (alone or in combination):

(b)    Executive is convicted of or takes a plea of nolo contendere to a crime involving dishonesty, fraud or moral turpitude;

(c)    Executive has engaged in any of the following: (i) fraud, embezzlement, theft or other dishonest acts, (ii) unprofessional conduct, (iii) gross negligence related to the business or (iv) other conduct that is materially detrimental to the business as determined in the reasonable business judgment of Company;

(d)    Executive materially violates a significant Company policy (as they may be amended from time to time), such as policies required by the Sarbanes-Oxley Act, Company’s Drug Free Workplace Policy or Company’s EEO policies, and does not cure such violation (if curable) within

	
Employment Agreement

	
-3-

	
 

twenty (20) days after written notice from Company;

(e)    Executive willfully takes any action that significantly damages the assets (including tangible and intangible assets, such as name or reputation) of Company;

(f)    Executive fails to perform Executive’s duties in good faith or Executive persistently fails to perform Executive’s duties, and does not cure such failures within ten (10) days after written notice from Company or, if notice and cure have previously taken place regarding a similar failure to perform, if the circumstance recurs;

(g)    Executive uses or discloses (or allows others to use or disclose) Confidential Information, as defined in this Agreement, without authorization; or

(h)    Executive breaches this Agreement in any material respect and does not cure such breach (if curable) within twenty (20) days after written notice from Company or, if notice and cure have previously taken place regarding a similar breach, if a similar breach recurs.

A termination of employment by the Employer for one of the reasons set forth in Section II. 3(a)-(h) above will not constitute cause unless, within the 60-day period immediately following the occurrence of such event, Employer has given written notice to Executive specifying in reasonable detail the event or events relied upon for such termination and Executive has not remedied such event or events within twenty (20) days of the receipt of such notice.

4.     Good Reason.

For the purpose of this Agreement, “Good Reason,” as used herein, means:

(a) any material breach of this Agreement by Company which, if curable, has not been cured within twenty (20) days after Company has been given written notice of the need to cure the breach;

(b) a substantial reduction of responsibilities assigned to Executive, provided that Company fails to remedy such reduction within twenty (20) days after being provided written notice thereof from Executive that Executive objects to the same;

(c) a change in the reporting structure such that Executive no longer reports to the COO (or to the CEO, if at some point Executive is promoted to COO), provided that Company fails to remedy such change within twenty (20) days after being provided written notice thereof from Executive that Executive objects to the same; or

(d) a reduction in Executive’s base salary, other than as part of an across-the-board salary reduction generally imposed on employees of Company, provided that Company fails to remedy such reduction(s) within twenty (20) days after being provided written notice thereof from Executive that Executive objects to the same.

A termination of employment by the Executive for one of the reasons set forth in Section II. 4(a)-(c) above will not constitute Good Reason unless, within the 60-day period immediately following the occurrence of such Good Reason event, Executive has given written notice to Company specifying in reasonable detail the event or events relied upon for such termination and Company has not remedied such event or events within twenty (20) days of the receipt of such notice.

 

	
B.

	
Dispute Resolution; Arbitration; Exigent Relief.

 

	
Employment Agreement

	
-4-

	
 

 

Company and Executive agree that any claim arising out of or relating to this Agreement, or the breach of this Agreement, or Executive’s application, employment, or termination of employment, shall be submitted to and resolved by binding arbitration under the Federal Arbitration Act.  Company and Executive agree that all claims shall be submitted to arbitration including, but not limited to, claims based on any alleged violation of Title VII or any other federal or state laws; claims of discrimination, harassment, retaliation, wrongful termination, compensation due or violation of civil rights; or any claim based in tort, contract, or equity.  Any arbitration between Company and Executive will be administered by the American Arbitration Association under its Employment Arbitration Rules then in effect.  The award entered by the arbitrator will be based solely upon the law governing the claims and defenses pleaded, and will be final and binding in all respects.  Judgment on the award may be entered in any court having jurisdiction.  Company agrees to pay for the arbiter’s fees where required by law.

Executive understands that if Executive has breached the Confidentiality Agreement, or any other section herein, Company may seek an injunction, or other relief as may be appropriate, against Executive.

	
C.

	
Duty of Loyalty.

Executive agrees to devote all time that is reasonably necessary to execute and complete Executive’s duties to Company.  During the time necessary to execute Executive’s duties, Executive agrees to devote Executive’s full and undivided time, energy, knowledge, skill and ability to Company’s business, to the exclusions of all other business and sideline interests.  Because of the agreement in the preceding sentence, during Executive’s employment with Company, Executive also agrees not to be employed or provide any type of services, whether as an advisor, consultant, independent contractor or otherwise in any capacity elsewhere unless first authorized, in writing, by a proper representative of Company.  In no event will Executive allow other activities to conflict or interfere with Executive’s duties to Company.  Executive agrees to faithfully and diligently perform all duties to the best of Executive’s ability.  Executive recognizes that the services to be rendered under this Agreement require certain training, skills and experience, and that this Agreement is entered into for the purpose of obtaining such service for Company.  Upon request, Executive agrees to provide Company with any information which Executive possesses and which will be of benefit to Company.  Executive agrees to perform Executive’s duties in a careful, safe, loyal and prudent manner.  Executive agrees to conduct him/herself in a way which will be a credit to Company’s reputation and interests, and to otherwise fulfill all fiduciary and other duties Executive has to Company.

Executive represents and warrants that Executive has been in full compliance with all prior covenants Executive has entered into protecting Company’s Confidential Information.

	
D.

	
Reimbursement.

If Executive ever possesses or controls any Company funds (including, without limitation, cash and travel advances, overpayments made to Executive by Company, amounts received by Executive due to Company’s error, unpaid credit or phone charges, excess sick or vacation pay, or any debt owed Company for any reason, including misuse or misappropriation of company assets), Executive will remit them to Company corporate headquarters in Tacoma, Washington daily for the entire period of Executive’s possession or control of such Company funds unless directed otherwise in writing.  At any time upon request, and at the time when Executive’s employment ends for any reason, even without request, Executive shall fully and accurately account to Company for any Company funds and other property in Executive’s possession or control.  If Executive fails to do so, Executive hereby authorizes Company (subject to any limitations under applicable law) to make appropriate deductions from any payment otherwise due Executive (including, without limitation, Executive’s paycheck, salary, bonus, commissions, expense reimbursements and benefits), in addition to all other remedies available to Company.

	
Employment Agreement

	
-5-

	
 

	
E.

	
Background Investigation and Review of Company Property.

1.     Executive agrees that at any time during employment Company may, subject to any applicable legal requirements, investigate Executive’s background for any relevant information on any subject which might have a bearing on job performance including, but not limited to, employment history, education, financial integrity and credit worthiness, and confirm that Executive has no criminal record during the last ten years. Executive shall sign any and all documents necessary for Company to conduct such investigation.  For this purpose, Executive specifically authorizes Company to obtain any credit reports, background checks and other information which may be useful.  Executive acknowledges and, except as may be limited by applicable law, agrees to abide at all times by the terms of Company’s drug and alcohol policy.  Executive understands that failure to comply with Company’s policies, including its drug and alcohol policies, may result in termination of employment.

2.     Executive acknowledges and agrees that unless otherwise expressly prohibited by law, Company has the complete right to review, inspect and monitor all Company property, including, without limitation, email, voicemail, and computer property of Company, and to review, inspect and monitor Executive’s use of the internet or other computer related transmission of information including, without limitation, the identity and use of USB and other computer related drives.  Executive acknowledges that Executive has no expectation of privacy in Company’s property, including, without limitation, email, voicemail, and computer property.

III. CONFIDENTIAL INFORMATION.

	
A.

	
Non-Disclosure and Non-Use and other Protection of Confidential Information.

1.     In connection with Executive’s duties, Executive may have access to some or all of Company’s “Confidential Information,” whether original, duplicated, computerized, memorized, handwritten, or in any other form, and all information contained therein, including, without limitation: (a) the ideas, methods, techniques, formats, specifications, procedures, designs, strategies, systems, processes, data and software products which are unique to Company; (b) all of Company’s business plans,  present, future or potential customers or clients (including the names, addresses and any other information concerning any customer or client), marketing, marketing strategies, pricing and financial information, research, training, know-how, operations, processes, products, inventions, business practices, databases and information contained therein, its wage rates, margins, mark-ups, finances, banking, books, records, contracts, agreements, principals, vendors, suppliers, contractors, employees, applicants, Candidates, skill sets of applicants, skill sets of Candidates, marketing methods, costs, prices, price structures, methods for calculating and/or determining prices, contractual relationships, business relationships, compensation paid to employees and/or contractors, and/or other terms of employment, employee evaluations, and/or employee skill sets; (c) the content of all of Company’s operations, sales and training manuals; (d) all other information now in existence or later developed which is similar to the foregoing; (e) all information which is marked as confidential or explained to be confidential or which, by its nature, is confidential or otherwise constitutes the intellectual property or proprietary information of Company; and/or (f) any of Company’s “trade secrets”.  For the purposes of this Section III, all references to, and agreements regarding, Confidential Information or Confidential Information of Company also apply to Confidential Information belonging to any affiliate of Company, and to any confidential or proprietary information of third party clients that Company has an obligation to keep confidential.  Employee’s covenants in this Section III shall protect affiliates and clients of Company to the same extent that they protect Company. Confidential Information shall not include any portion of the foregoing which (i) is or becomes generally available to the public in any manner or form through no fault of Executive, or (ii) is approved for Executive’s disclosure or use by the express written consent of the General Counsel or Chief Financial Officer of Company.

	
Employment Agreement

	
-6-

	
 

2.     Executive agrees and acknowledges that all Confidential Information is to be held in confidence and is the sole and exclusive property of Company and/or its affiliates or clients.  Executive recognizes the importance of protecting the confidentiality and secrecy of Confidential Information.  Executive agrees to use Executive’s best efforts to protect Confidential Information from unauthorized disclosure to others.  Executive understands that protecting Confidential Information from unauthorized disclosure is critically important to Company’s success and competitive advantage, and that the unauthorized use or disclosure of Confidential Information would greatly damage Company.  Executive recognizes and agrees that taking and using Confidential Information, including trade secrets, by memory is no different from taking it on paper or in some other tangible form, and that all of such conduct is prohibited.  Executive agrees that, prior to use or disclosure, Executive will request clarification from Company’s legal department if Executive is at all uncertain as to whether any information or materials are Confidential Information.

3.     During Executive’s employment and in perpetuity after the termination of Executive’s employment for any or no cause or reason, Executive agrees:  (a) not to use (or allow others to wrongfully use) any Confidential Information for the benefit of any person (including, without limitation, Executive’s benefit) or entity other than Company; and (b) not to, except as necessary or appropriate for Executive to perform Executive’s job responsibilities, disclose (or allow others to wrongfully disclose) any Confidential Information to others or download or make copies of any Confidential Information without Company’s written consent, or remove any such records from the offices of Company except for the sole purpose of conducting business on behalf of Company.   If at any time Executive ever believes that any person has received or disclosed or intends to receive or disclose Confidential Information without Company’s consent, Executive agrees to immediately notify Company.

4.     At any time during Executive’s employment upon Company’s request, and at the end of Executive’s employment with Company, even without Company’s request, Executive covenants, agrees to, and shall immediately return to Company, at its headquarters in Tacoma, Washington, all Confidential Information as defined herein, and all other material and records of any kind concerning Company’s business, and all other property of Company that Executive may possess or control.

5.     At all times, Executive agrees not to directly or indirectly take, possess, download, allow others to take or possess or download, provide to others, delete or destroy or allow others to delete or destroy, any of Company’s Confidential Information or other property, other than in the normal course of business.

6.     Executive agrees that these covenants are necessary to protect Company’s Confidential Information, and Company’s legitimate business interests (including, without limitation, the confidentiality of Company’s business information and other legitimate interests), in view of Executive’s key role with each branch of Company and its affiliates and the extent of confidential and proprietary information about the entire Company and its affiliates and clients to which Executive has information.  Company and Executive agree that the provisions of this Section III do not impose an undue hardship on Executive and are not injurious to the public; that they are necessary to protect the business of Company and its affiliates and clients; that the nature of Executive’s responsibilities with Company under this Agreement and Executive’s former responsibilities with Company provide and/or have provided Executive with access to Confidential Information that is valuable and confidential to Company; that Company would not continue to employ Executive if Executive did not agree to the provisions of this Section III; that this Section III is reasonable in its terms and that sufficient consideration supports this Agreement, including, without limit, this Section III.

7.     The covenants set forth above are independent of any other provision of this Agreement.  Executive agrees that they will be enforceable whether or not Executive has any claim against Company.  Executive and Company agree that this Agreement should be interpreted in the way that provides the maximum protection to Company’s Confidential Information.

	
Employment Agreement

	
-7-

	
 

8.     Executive acknowledges that if Executive violates any of the foregoing covenants, the damage to Company will be such that Company is not likely to be made whole with a monetary award.  Therefore, Executive agrees that if Executive violates or threatens to violate any such covenant, Company will be entitled to a temporary restraining order, a preliminary injunction and/or a permanent injunction, in addition to any and all other legal or equitable remedies available under law and equity. Executive understands that if Executive violates any of the foregoing covenants, Company may seek a restraining order, injunction, or other legal or equitable relief as may be appropriate, against Executive.

9.     Executive represents and warrants that Executive has been in full compliance with the provisions protecting Company’s Confidential Information as set forth in any previous agreement with Company herein and in the Non-Competition Agreement (also a condition of employment), as well as all other terms and conditions of any previous agreement with Company.

10.   Executive agrees to notify Company (Human Resources) if Executive becomes aware that others are using, wrongfully disclosing, downloading, making copies of, taking, possessing, deleting or destroying confidential information.

	
B.

	
Other Employers and Obligations.

1.     Executive represents to Company that Executive is not subject to any restriction or duties under any agreement with any third party or otherwise which will be breached by employment with Company, or which will conflict with Company’s best interests or Executive’s obligations under this Agreement.  Executive agrees to notify Executive’s supervisor promptly in the event Executive or other employees is/are solicited for employment by any competitor of Company.

2.     Executive warrants that Executive’s employment with Company will not violate any contractual obligations with other parties.  Executive will not use during Executive’s employment with Company nor disclose to Company any confidential or proprietary information or trade secrets from any former or current employers, principals, partners, co-venturers, customers or suppliers, and will not bring onto Company’s premises any unpublished document or any property belonging to any such person or entities without their consent.  Executive will honor any non-disclosure, proprietary rights, or other contractual agreements with any other person or entity and has disclosed to Company any such agreements that may bear on employment with Company.  Executive agrees to tell any prospective new employer about this Agreement and its terms.

IV. ASSIGNMENT OF INVENTIONS.

A.     Inventions Assignment.

Executive will make prompt and full disclosure to Company, will hold in trust for the sole benefit of Company, and does assign exclusively to Company all right, title and interest in and to any and all inventions, discoveries, designs, developments, improvements, copyrightable material and trade secrets (collectively herein “Inventions”) that Executive solely or jointly may conceive, develop, author, reduce to practice or otherwise produce during Executive’s employment with Company.

B.     Outside Inventions.

Executive’s obligation to assign shall not apply to any Invention about which Executive can prove all the following:  (a) it was developed entirely on Executive’s own time; (b) no equipment, supplies, facility, services or trade secret information of Company was used in its development; (c) it does not relate (i) directly to the business of Company or its affiliates or (ii) to the actual or demonstrably anticipated

	
Employment Agreement

	
-8-

	
 

business, research or development of Company or its affiliates; and (d) it does not result from any work performed by Executive for Company or its affiliates.  Executive shall attach a list of all existing Inventions meeting these requirements to this Agreement.

V. COMPLIANCE WITH LAWS AND COMPANY’S CODE OF CONDUCT.

A.     Commitment to Compliance.

Company is committed to providing equal employment opportunity for all persons regardless of race, color, gender, creed, religion, age, marital or family status, national origin, citizenship, mental or physical disabilities, veteran status, ancestry, citizenship, HIV or AIDS, sexual orientation, on-the-job-injuries, or the assertion of any other legally enforceable rights, or other protected status under applicable law.  Equal opportunity extends to all aspects of the employment relationship, including hiring, transfers, promotions, training, termination, working conditions, compensation, benefits, and other terms and conditions of employment.  Company is likewise committed to ensuring that employees are accurately paid for all hours worked.

B.     Duty to Comply with the Law.

Executive agrees to and shall comply with all federal, state and local laws and regulations, including, without limit, equal employment opportunity laws and wage and hour laws.  Executive agrees to and shall immediately notify Company if Executive becomes aware of a violation of the law, or suspects a violation of the law has or will occur.  Executive acknowledges that Executive may be held personally liable for intentional violations.

C.     Duty to Comply with Company’s Code of Conduct.

Executive acknowledges and agrees that it is Executive’s duty to be familiar with Company’s Code of Conduct, and to comply with all of its respective provisions.

VI. MISCELLANEOUS.

	
A.

	
Integration.

Except with respect to Company’s Non-Competition Agreement, Change of Control Agreement, and Indemnification Agreement (i) no promises or other communications made by either Company or Executive are intended to be, or are, binding unless they are set forth in this Agreement; and (ii) this Agreement contains the entire agreement between the parties and replaces and supersedes any prior agreements, including previous employment agreement(s). This Agreement may not be modified except by a written instrument signed by an appropriate officer of Company and by Executive.  This Agreement will be binding upon Executive’s heirs, executors, administrators and other legal representatives.

	
B.

	
Choice of Law.

Company and Executive agree that this Agreement and all interpretations of the provisions of this Agreement will be governed by the laws of the State of Washington, without regard to choice of law principles.

	
C.

	
Venue and Consent to Jurisdiction.

Where the parties have mutually waived their right to arbitration in writing or have not sought to enforce their right to compel arbitration, or where a temporary and/or preliminary or permanent injunction may be necessary to protect the interests of  either party, Executive and Company hereby irrevocably and

	
Employment Agreement

	
-9-

	
 

unconditionally submit to the jurisdiction of the Washington State Superior Court for Peirce County or the United States District Court, Western District of Washington at Tacoma, or to any court in any location where Executive is threatening to breach or is engaged in breaching the Agreement; Executive and Company consent to submit to venue and personal jurisdiction of the courts identified herein, and agree to waive any claim that any such suit, action, or proceeding has been brought in an inconvenient forum. Executive and Company agree that the choice of venue lies solely in the discretion of the Company.

	
D.

	
No Wavier of Rights.

A waiver by Company of the breach of any of the provisions of this Agreement by Executive shall not be deemed a waiver by Company of any subsequent breach, nor shall recourse to any remedy hereunder be deemed a waiver of any other or further relief or remedy provided for herein.  No waiver shall be effective unless made in writing and signed by the General Counsel.  Agreement shall be enforceable regardless of claim Executive may have against Company.

	
E.

	
Severability.

The provisions of this Agreement are intended to be severable from each other.  No provision will be invalid because another provision is ruled invalid or unenforceable.  If any provision in this Agreement is held to be unenforceable in any respect, such unenforceability shall not affect any other provision of this Agreement and shall be re-written to provide the maximum effect consistent with the intent of the provision.

	
F.

	
Binding Effect and Assignability.

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, assigns, affiliated entities, and any party-in-interest.  Executive agrees and understands that, should Company be acquired by, merge with, or otherwise combine with another corporation or business entity, the surviving entity will have all rights to enforce the terms of this Agreement as if it were Company itself enforcing the Agreement.  Company reserves the right to assign this Agreement to its affiliates, an affiliated company or to any successor in interest to Company’s business without notifying Executive, and Executive hereby consents to any such assignment.  All terms and conditions of this Agreement will remain in effect following any such assignment.  Notwithstanding the foregoing, Executive may not assign this Agreement.

	
G.

	
Non-Disparagement.

At all times during the Executive’s employment with Company and following termination of that employment by either Executive or Company, Executive will not publicly disparage Company or its Subsidiaries or any of their respective directors, officers or employees.   Executive will not be in breach of this provision by providing information as required by law or legal compulsion.

	
H.

	
Survival.

Notwithstanding any provision of this Agreement to the contrary, the parties’ respective rights and obligations under Sections II (A), (B) and (D), III, IV, and VI do and shall survive any termination of the Executive’s employment and/or the assignment of this Agreement by Company to any successor in interest or other assignee.

	
I.

	
Section 409A of the Internal Revenue Code of 1986.

	
Employment Agreement

	
-10-

	
 

To the extent applicable, it is intended that this Agreement comply with the provisions of Section 409A of the Internal Revenue Code of 1986.  This Agreement will be administered in a manner consistent with this intent, and any provision that would cause the Agreement to fail to satisfy Section 409A of the Internal Revenue Code of 1986 will have no force and effect until amended to comply with Section 409A of the Internal Revenue Code of 1986 (which amendment may be retroactive to the extent permitted by Section 409A of the Internal Revenue Code of 1986 and may be made by Company without the consent of the Executive).

	
J.

	
Attorney’s Fees.

 In any suit or proceeding to enforce the terms of this Agreement Executive and Company agree that the prevailing party in any such dispute shall be paid and indemnified by the non-prevailing party for and against all expenses of every nature and character incurred by in pursuing such suit or proceeding including, without limitation, all reasonable attorneys’ fees, costs and disbursements.

	
K.

	
Headings for Convenience Only.

The headings used in this Agreement are intended for convenience or reference only and will not in any manner amplify, limit, modify or otherwise be used in the construction or interpretation of any provision of this Agreement.  References to Sections are to Sections of this Agreement.  Any reference in this Agreement to a provision of a statute, rule or regulation will also include any successor provision thereto.

EXECUTIVE ACKNOWLEDGES AND AGREES THAT EXECUTIVE HAS READ AND UNDERSTANDS THIS AGREEMENT, THAT EXECUTIVE HAS BEEN GIVEN AN OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL CONCERNING THE TERMS OF THIS AGREEMENT, AND THAT EXECUTIVE AGREES TO THE TERMS OF THIS AGREEMENT.

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

	
EXECUTIVE

	 	
COMPANY

	 	 	 
	By:	/s/ Sean Ebner	 	By:	/s/ Patrick Beharele
	   	 	 	 
	Name:	Sean Ebner	 	Name:	Patrick Beharele
	   	 	 	 
	Date:	6/13/2017	 	Title:	President & COO, TrueBlue, Inc.

 

By signing this Agreement, I accept and acknowledge that I will abide by the terms and conditions of this Agreement.  I agree and understand that nothing in this Agreement shall confer any right with respect continuation of employment by Company, nor shall it interfere in any way with my right or Company’s right to terminate my employment at any time, with or without cause.

	
Date:

	
6/13/2017

 

 

	
Employment Agreement

	
-11-

	
 

EXHIBIT A

June 8, 2017

Sean Ebner

Dear Sean,

On behalf of TrueBlue, Inc., it is with great pleasure that we extend an offer for you to join our Operations team.  We are confident you will make a significant difference in our growth strategies and that we can provide you with compelling career opportunities for continued growth and advancement. Please note that this offer is based upon the following terms:

 

	
Position:

	
EVP & President, PeopleReady

	  	 
	Location:	Colleyville, TX
	 	 
	Reporting to:	Patrick Beharelle, President & COO, TrueBlue, Inc.
	  	 
	
Annual Base Salary:

Annual Bonus Target:

Annual Equity Grant (RSUs):

Annual Equity Grant (PSUs):                                                                                                                    

	
$  400,000/annual, exempt – paid on a bi-weekly basis

$  260,000 (65% target of base salary)

$  200,000 (50% of salary)

$  200,000 (50% of salary)

	                      	
$1,060,000 

	Annual Compensation Target	 
	 	 
	 	 
	One Time Signing Bonus:	
$    13,000

	On Hire Equity Grant:	$  160,000 (40% of base salary)
	1st Year Bonus Guarantee:	
$  151,667 (7/12th of 2017 target bonus)

	2018 Special Bonus up to:	
$  150,000

	 	 
	Start Date	June 13, 2017

  

Annual Bonus Plan:  You will be eligible to participate in our 2017 bonus plan to be comprised of individual objectives 25% and TrueBlue performance 10% and PeopleReady performance 30% with a target payout of 65% of base salary (max of 105%).  The bonus payment will be pro-rated for the time in position during your first year.  That portion which is comprised of individual objectives is based upon achieving your individual goals for you and your team.

You will be guaranteed a minimum prorated payment (7 months in position) of the 2017 target bonus which is 65% of your salary.  That amount is $151,667.

Special Bonus Opportunity:  You will have a special bonus opportunity for revenue growth performance between October 1, 2017 and September 30, 2018.  During this period, year over year revenue growth will be compared to a peer group of North American industrial staffing firms.  Those peers are Manpower, Kelly, Adecco, and Randstad.  Revenue growth, between October 1, 2017 and September 30, 2018, of these companies will be summed and divided by 4 to arrive at the comparator growth percentage (CGP).  The PeopleReady growth percent will be evaluated against the comparator percentage to arrive at a bonus payment.  Bonus payment will be made in November 2018.  Bonus payment will be calculated as follows:

 

	
No payment - Non Performance Range:

$50,000 – Performance Zone:

$150,000 – High Performance Zone:

	
PeopleReady growth is worse than -2% vs CGP.

PeopleReady growth is between -2% and 2% vs CGP.

PeopleReady growth is greater than 2% vs CGP.

	
 

	
 

	
Employment Agreement

	
-12-

	
 

Example: No payment zone is when PeopleReady revenue growth is 1%, and the comparator is 3.3%

Example: Performance Zone is when PeopleReady growth is 1%, and the comparator is 3%

Example: Performance Zone is when PeopleReady growth is 1%, and the comparator is -2%

Signing Bonus: You will receive a one-time sign-on bonus in the amount of $13,000.  This sign-on bonus will be considered earned and payable on January 1, 2018.  Note: should you leave your position prior to January 1, 2018, the signing bonus will be considered unearned and not payable.

On Hire Equity Grant:  You will receive a one-time award of restricted shares having a value of 40% of base salary ($160,000).  The number of shares you receive will be based on the grant value divided by the previous 60 day average closing price of the stock on the grant date.  Shares will be granted on the first trading day of the month following your hire date. Restricted shares will vest equally over three years on the anniversary date of the grant and per the terms of the grant agreement.

Annual Equity Grant:  You will be eligible for an annual equity award currently expected to be 50% of base salary for RSUs and another 50% of base salary for PSUs.  This award is comprised of restricted stock and performance shares.  Annual equity grants are typically granted in February and actual award values and equity components are subject to the approval of the Board.  Your first award will be granted in February of 2018.    Restricted shares will vest equally over three years on the anniversary date of the grant and per the terms of the grant agreement.

Non-Qualified Deferred Compensation Plan:  You will be eligible to enroll in the Company’s Non-Qualified Deferred Compensation Plan.  Plan document attached. This is a generous plan which matches at twice the 401K plan levels.  The company has a strong record of paying out a full match.

Employee Stock Purchase Plan (ESPP):  You will be eligible to participate in the ESPP at the beginning of the month following six months of employment.  Under the ESPP, the purchase price for the shares you purchase in a given month shall be the closing price of the Company’s stock on the first day of the month and on the last day of the month, whichever is less, minus a 15% discount.

Health & Welfare Benefits:  You will be eligible to enroll in the health benefits program at TBI on the first day of the month following your 90th day of employment.  Until TBI Health coverage becomes effective we will reimburse you for your medical health coverage premiums.  Benefits Summary attached.

Paid Time Off:  You will be eligible to accrue 20 days of time off each year with increases based upon the length of employment.  TrueBlue also recognizes six holidays per year.  PTO combines vacation, personal holiday and sick days into one flexible bank of time that you can use to take paid time off from work.

As a Government contractor subject to VEVRAA, we are required to submit a report to the United States Department of Labor each year identifying the number of our employees belonging to each specified “protected veteran” category.

Please note that this offer is contingent upon satisfactory completion of background and reference checks.

Employment and Related Agreements: Upon your acceptance of this employment offer you will be offered an at-will employment agreement (the “Employment Agreement”).  Nothing in this offer letter itself is intended to be a contract of employment or a promise of specific treatment in specific situations unless expressly set forth herein, nor does this offer letter change your employment at-will status if you accept it.  Subject to the terms of your Employment Agreement with the Company should you accept this offer, the Company reserves the right to modify your compensation, duties, reporting relationship, title or continued employment as circumstances dictate.  You will also receive related agreements to be executed contemporaneously with the Employment Agreement, including a non-competition agreement.

	
Employment Agreement

	
-13-

	
 

We are excited about your assuming this important leadership position and look forward to working together.  If you have any questions regarding this offer letter, please call me at (770) 823-2314.

Sincerely,

/s/ Patrick Beharele                 

Patrick Beharelle

President & COO, TrueBlue, Inc.

I have read and accept the terms of this employment offer.

	
Sean Ebner

	 	
/s/ Sean Ebner

	 	
6/13/2017

	 Print	 	 Signature	 	 Date

                                   

	
Employment Agreement

	
-14-

	
 

EXHIBIT B

(SAMPLE) RELEASE OF CLAIMS

This Release of Claims (“Release”) is hereby executed by ___________________ (“Executive”) in accordance with the Employment Agreement between Executive and Company___________, Inc. (“Employer”), dated _____________________ (“Employment Agreement”).

RECITALS

A. Employer and Executive are parties to the Employment Agreement.

B. The Employment Agreement provides for certain payments and benefits to Executive upon termination of Executive’s employment under certain circumstances, provided that Executive signs and delivers to Employer upon such termination a Release in substantially the form of this Release, and does not revoke the same.

C. Executive desires for Employer to make payments in accordance with the Employment Agreement and therefore executes this Release.

TERMS

1. Waiver, Release and Covenant.  On behalf of Executive and Executive’s marital community, heirs, executors, administrators and assigns, Executive expressly waives, releases, discharges and acquits any and all claims against Employer and its present, former and future affiliates, related entities, predecessors, successors and assigns, and all of their present, former and future officers, directors, stockholders, employees, agents, partners, and members, in their individual and representative capacities (collectively “Released Parties”) that arise from or relate to Executive’s employment with Employer and/or the termination of such employment (“Released Claims”).  This waiver and release includes any and all Released Claims (including claims to attorneys’ fees), damages, causes of action or disputes, whether known or unknown, based upon acts or omissions occurring or that could be alleged to have occurred before the execution of this Release.  Released Claims include, without limitation, claims for wages, employee benefits, and damages of any kind whatsoever arising out of any:  contract, express or implied; tort; discrimination; wrongful termination; any federal, state, local or other governmental statute or ordinance, including, without limitation, Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act, as amended (“ADEA”); the Americans with Disabilities Act of 1990, the Rehabilitation Act of 1973; the Family and Medical Leave Act; the Employee Retirement Income Security Act of 1974, including but not limited to claims under Company-sponsored severance and termination pay plans, if any; and any other legal limitation on the employment relationship.  Executive also covenants and promises never to file, press or join in any complaint or lawsuit for personal relief or any amounts of any nature based on any Released Claim and agrees that any such claim, if filed by Executive, shall be dismissed, except that this covenant and promise does not apply to any claim of Executive challenging the validity of this Release in connection with claims arising under the ADEA and/or the Older Workers’ Benefit Protection Act of 1990 (“OWBPA”).  Executive represents and warrants that he is the sole owner of all Released Claims and has not assigned, transferred, or otherwise disposed of Executive’s right or interest in those matters.  Notwithstanding the foregoing, this waiver and release does not apply to claims that arise after the date that the release is executed, claims to vested benefits under ERISA, workers’ compensation claims or any other claims that may not be released under this Release in accordance with applicable law.

2. Acknowledgment of Sufficiency of Consideration.  Executive acknowledges and agrees that in the absence of Executive’s execution of this Release, Employer is not obligated to provide Executive with

	
Employment Agreement

	
-15-

	
 

the payment and benefits described in Section II(A)(2)(b) of the Employment Agreement, and that the payment and benefits set forth in Section II(A)(2)(b) of the Employment Agreement are adequate consideration for the covenants and release herein.

3. Covenants and Obligations under Employment Agreement.  Nothing in this Release supersedes or restricts any obligations that Executive owes to Employer, including, without limitation, the obligation to protect Employer’s interests in Confidential Information and trade secrets and inventions under the Employment Agreement and/or under applicable law, and/or Company’s Non-Competition Agreement executed by Executive.  Executive agrees to comply with all covenants that Executive has entered into with Company.

4. Non-Disparagement.  At all times during the Executive’s employment with Company and following termination of that employment by either Executive or Company, Executive agrees not to make any statements, written or verbal, or cause or encourage others to make any statements, written or verbal, including but not limited to any statements made via social media, on websites or blogs, that defame, disparage the Company or its Subsidiaries or any of their respective directors, officers or employees.   Executive will not be in breach of this provision by providing information as required by law or legal compulsion.

   Executive further understands and agrees that this paragraph is a material provision of this Agreement and that any breach of this paragraph shall be a material breach of this Agreement, and that the Company would be irreparably harmed by violation of this provision.

5. Disclosure. Executive acknowledges and warrants that s/he is not aware of, or that s/he has fully disclosed to the Company, any matters for which Executive was responsible or which came to Executive’s attention as an employee of the Company that might give rise to, evidence, or support any claim of illegal conduct, regulatory violation, unlawful discrimination, or other cause of action against the Company.

6. Company Property. All records, files, lists, including computer generated lists, data, drawings, documents, equipment and similar items relating to the Company’s business that Executive generated or received from the Company remains the Company’s sole and exclusive property. Executive agrees to promptly return to the Company all property of the Company in his/her possession. Executive further represents that s/he has not copied or caused to be copied, printout, or caused to be printed out any documents or other material originating with or belonging to the Company. Executive additionally represents that s/he will not retain in her/his possession any such documents or other materials.

7.                Review and Revocation Period.  Executive has a period of seven (7) calendar days after delivering the executed Release to Employer to revoke the Release.  To revoke, Executive must deliver a notice revoking Executive’s agreement to this Release to the CEO of Employer.  This Release shall become effective on the eighth day after delivery of this executed Release by Executive to Employer (“Effective Date”), provided that Executive has not revoked the Release.  Employer shall have no obligation to provide Executive with any payment or benefits as described in Section 6 of the Employment Agreement if Executive revokes this Release.

8. Governing Law.  This Release shall be interpreted in accordance with the law of the State of Washington, without regard to the conflicts of law provisions of such laws.

9.                Severability.  If any provision of this Release constitutes a violation of any law or is or becomes unenforceable or void, then such provision, to the extent only that it is in violation of law, unenforceable or void, shall be deemed modified to the extent necessary so that it is no longer in violation of law, unenforceable or void, and such provision will be enforced to the fullest extent permitted by law.  If such modification is not possible, such provision, to the extent that it is in violation of law, unenforceable or

	
Employment Agreement

	
-16-

	
 

void, shall be deemed severable from the remaining provisions of this Release, which shall remain binding.

10.              Knowing and Voluntary Agreement.  Executive hereby warrants and represents that (a) Executive has carefully read this Release and finds that it is written in a manner that he understands; (b) Executive knows the contents hereof; (c) Executive has been advised to consult with Executive’s personal attorney regarding the Release and its effects and has done so; (d) Executive understands that Executive is giving up all Released Claims and all damages and disputes that have arisen before the date of this Release, except as provided herein; (e) Executive has had ample time to review and analyze this entire Release; (f) Executive did not rely upon any representation or statement concerning the subject matter of this Release, except as expressly stated in the Release; (g) Executive has been given at least twenty-one (21) days to consider this Release and seven (7) days to revoke this Release; (h) Executive understands the Release’s final and binding effect; (i) Executive has signed this Release as Executive’s free and voluntary act.

11.              Arbitration and Venue.  Employer and Executive agree that any claim arising out of or relating to this Release of Claims, or the breach of this Release of Claims, shall be submitted to and resolved by binding arbitration under the Federal Arbitration Act, except for claims where a temporary and/or preliminary or permanent injunction may be necessary to protect the interests of Company, or the employee.  Employer and Executive agree that all claims shall be submitted to arbitration including, but not limited to, claims based on any alleged violation of Title VII or any other federal or state laws; claims of discrimination, harassment, retaliation, wrongful termination, compensation due or violation of civil rights; or any claim based in tort, contract, or equity.  Any arbitration between Employer and Executive will be administered by the American Arbitration Association under its Employment Arbitration Rules then in effect.  The award entered by the arbitrator will be based solely upon the law governing the claims and defenses pleaded, and will be final and binding in all respects.  Judgment on the award may be entered in any court having jurisdiction.  In any such arbitration, neither Executive nor Employer shall be entitled to join or consolidate claims in arbitration or arbitrate any claim as a representative or member of a class.  Employer agrees to pay for the arbiter’s fees where required by law.  Where the parties have mutually waived their right to arbitration in writing or have not yet sought to enforce their right to compel arbitration, venue for any legal action in connection with this Release of Claims will be limited exclusively to the Washington State Superior Court for Pierce County, or the United States District Court for the Western District of Washington at Tacoma. Executive and Company agrees to submit to the personal jurisdiction of the courts identified herein, and agrees to waive any objection to personal jurisdiction in these courts including but not limited to any claim that any such suit, action or proceeding has been brought in an inconvenient forum.

END OF EXHIBIT B

(SAMPLE) RELEASE OF CLAIMS

	
Employment Agreement

	
-17-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}]]