Document:

Exhibit 10.17

 

EXECUTION COPY

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement
(this Agreement) is made as of April 19, 2020, by and between KLX Energy Services Holdings, Inc., a Delaware corporation
(the Company), and Thomas P. McCaffrey (the Executive). This Agreement shall become effective as of
the Effective Date (as defined below).

 

RECITALS

 

WHEREAS, on September
14, 2018, the Company and the Executive entered into that certain employment letter agreement (the Employment Letter),
pursuant to which the Company agreed to employ the Executive on a full-time basis as the Senior Vice President and Chief Financial
Officer of the Company and its subsidiaries;

 

WHEREAS, the Executive,
having provided services to the Company since September 14, 2018 pursuant to the Employment Letter, has agreed to continue providing
services as the Senior Vice President and Chief Financial Officer of the Company and its subsidiaries, and has further agreed to
commence providing services to the Company as of May 1, 2020 (the Effective Date) in the capacity of the President
and Chief Executive Officer of the Company and its subsidiaries, and the Company wishes to procure such services;

 

WHEREAS, the Company
has determined that it is in the best interests of the Company that the Executive become the President and Chief Executive Officer,
and continue as the Chief Financial Officer, as of the Effective Date pursuant to the terms and conditions of this Agreement, which
shall supersede in its entirety the Employment Letter, except as otherwise provided herein;

 

WHEREAS, reference
is made to (i) that certain KLX Energy Services Holdings, Inc. 2018 Proprietary Rights Agreement by and between the Executive and
the Company, dated September 14, 2018 (the 2018 Proprietary Rights Agreement), attached hereto as Exhibit A,
and hereby incorporated by reference and (ii) that certain form of separation and mutual release agreement (the Release Agreement)
attached as Exhibit A to the Employment Letter, and attached hereto as Exhibit B; and

 

WHEREAS, by virtue
of the Executive’s position with the Company, the Executive will have regular access to and use of the Company’s confidential
information and trade secrets, and the Company has a legitimate interest in protecting its confidential information and trade secrets
by prohibiting the Executive from assisting, whether directly or indirectly, a competitor or competing with the Company for a reasonable
period after the termination of the Executive’s employment.

 

NOW THEREFORE,
for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto, each intending
to be legally bound, do hereby agree as follows:

 

1.        
Employment. Subject to Section 4 of this Agreement, the Company shall employ the Executive as its President and
Chief Executive Officer, and continue to employ the Executive as its Chief Financial Officer, and the Executive shall perform
services for and continue in the employment of the Company commencing on the Effective Date until the third (3rd) anniversary
of the Effective Date, and the Executive’s employment hereunder shall automatically be extended on the first anniversary
date of the Effective Date and on each subsequent anniversary of the Effective Date for additional one (1) year periods, until
either the Company or the Executive gives the other party at least thirty (30) days’ written notice prior to the anniversary
of the Effective Date of any such year of its or his desire to not renew the then current term of this Agreement, unless the Executive’s
employment is terminated earlier pursuant to this Agreement as hereinafter set forth. For purposes of this Agreement,

 

     

     

    

 

the term “Employment Period” shall mean the initial three (3) year
period and all extensions thereof, if any, as aforesaid, provided that the Executive continues to be employed by the
Company.

 

2.        
Position and Duties. The Executive shall serve the Company in the capacity of President and Chief Executive Officer
and Chief Financial Officer and shall be accountable to, and shall have such other powers, duties and responsibilities, consistent
with this capacity as may from time to time be prescribed by, the Board of Directors of the Company (the Board).
In addition, the Board will take such action as may be necessary to appoint the Executive as a member of the Board as of the Effective
Date. Thereafter, during the Employment Period, the Board will nominate the Executive for re-election as a member of the Board
at the expiration of the then-current term, except to the extent prohibited by legal or regulatory requirements. The Executive
will not be entitled to any additional compensation for such Board service during the Employment Period. The Executive shall perform
and discharge, faithfully, diligently and to the best of his ability, such powers, duties and responsibilities. The Executive shall
devote all of his working time and efforts to the business and affairs of the Company.

 

3.        
Compensation.

 

(a)     
Salary. During the Employment Period, the Executive shall receive a salary (the Salary)
payable at the rate of Five Hundred Thousand Dollars ($500,000) per annum. The Salary may be adjusted from time to time by the
compensation committee of the Board (the Compensation Committee),
provided, however, that it shall at no time be adjusted below the Salary then in effect. The Salary shall be paid
biweekly or in accordance with the Company’s then current payroll practices, less all required deductions. The Salary shall
be pro-rated for any period of service less than a full year.

 

(b)     
Incentive Bonus. During the Employment Period, the Executive may receive an incentive target bonus for each fiscal
year or portion thereof during which the Executive has been employed hereunder as determined by the Compensation Committee at the
end of the applicable fiscal year, with the target annual incentive opportunity to be no less than one hundred percent (100%) of
the Executive’s then current Salary (the Target Bonus),
in accordance with the Company’s executive bonus plan then in effect. The incentive bonus shall be paid in accordance
with Company policy, but in no event later than March 15th of the year following the year in which it is earned.

 

(c)     
Expenses. During the Employment Period, the Executive shall be entitled to receive prompt reimbursement for all reasonable
business expenses incurred by him on behalf of the Company in accordance with the Company’s then current policies.

 

(d)     
Benefits. During the Employment Period, the Executive shall be entitled to participate in or receive benefits under
any life or disability insurance, health, pension, retirement, accident, deferred compensation, and other employee benefit plans,
programs or arrangements made generally available by the Company to its executives, subject to and on a basis consistent with the
terms, conditions and overall administration of such plans and arrangements in effect from time to time. During the Employment
Period, the Executive shall be entitled to reimbursement of financial and estate planning costs and expenses, and entitled to all
rights and benefits pursuant to the Company’s travel policies, including without limitation, personal and business use of
the Company’s corporate aircraft. In accordance with the Company’s policies in effect from time to time, the Executive
shall also be entitled to paid vacation in any fiscal year during the Employment Period as well as all paid holidays given by the
Company to its executives; provided that the Executive’s prior employment and service with each of B/E Aerospace,
Inc. and KLX Inc. will be taken into account with respect to the Executive’s annual paid time off entitlement.

 

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(e)     
Automobile. During the Employment Period, the Executive shall receive either an automobile owned or leased by the
Company or a monthly automobile allowance, as reasonably determined by the Company, which automobile or allowance will be at least
equivalent (i.e., the same make and model, or equivalent value thereof) to that which the Company is providing to the Executive
as of the date hereof. To the extent that the Company elects to provide a monthly automobile allowance, such allowance will be
paid in accordance with Company policy as established from time to time, but in no event later than March 15th of the
year following the year in which it shall accrue.

 

(f)      
Indemnification; Directors’ and Officers’ Liability Insurance. Both during and after the Employment Period,
regardless of the reason for termination, the Company hereby agrees to indemnify the Executive and hold him harmless to the maximum
extent permitted by applicable law against and in respect of any and all actions, suits, proceedings, investigations, claims, demands,
judgments, costs, expenses (including reasonable attorney’s fees), losses, and damages resulting from the Executive’s
performance of his duties and obligations with the Company hereunder. The Company will advance to the Executive as incurred any
costs and expenses (including attorney’s fees) incurred in the defense of any such action, suit, proceeding or investigation,
subject to any limitation pursuant to applicable law. The Company will cover the Executive under directors’ and officers’
liability insurance both during and, while potential liability exists, after the Employment Period in the same amount and to the
same extent as the Company covers its other active officers and directors. The foregoing obligations will survive the termination
of the Executive’s service with the Company.

 

(g)     
Equity Awards. During the Employment Period, the Executive shall be eligible to participate in the Company’s
Long-Term Incentive Plan (the LTIP) (or any successor plan) on the terms set forth by the Compensation Committee
in its sole discretion, which program(s) may include restricted stock awards or units (Equity Awards). The actual
grant date fair value of any Equity Award will be determined by the Compensation Committee based on its assessment of the Executive’s
performance. The Equity Awards shall be granted pursuant to the terms of the LTIP and an award agreement to be entered into between
the Company and the Executive.

 

4.        
Termination and Compensation Thereon.

 

(a)     
Termination Date. Subject to the terms and conditions of this Agreement, the Executive’s employment pursuant
to this Agreement may be terminated either by the Executive or the Company at any time and for any reason. The term “Termination
Date” shall mean the date upon which the Executive’s employment is terminated (i) by his death, (ii) by his
Incapacity (as defined in Section 4(c)), (iii) otherwise in accordance with this Agreement, (iv) upon the occurrence of a Change
of Control in accordance with Section 4(f), or (v) for any other reason the Executive incurs a Separation from Service (as defined
in Section 12(c)).

 

(b)     
Death. The Executive’s employment shall terminate upon his death. In such event, the Company shall, within
thirty (30) days following the date of death, pay to such person as the Executive shall have designated in a notice filed with
the Company, or, if no such person shall have been designated, to the Executive’s estate, a lump-sum amount equal to the
sum of (A) two (2) times the Executive’s Salary and (B) two (2) times the Executive’s Target Bonus, in the case of
each of clauses (A) and (B) at the rates in effect as of the Termination Date (the lump sum amount determined in accordance with
this Section 4(b), the Termination Amount).

 

(c)     
Incapacity. If, in the reasonable judgment of the Board, as a result of the Executive’s incapacity due to
physical or mental illness, the Executive shall have been absent from his full-time duties as described in this Agreement for
the entire period of six (6) 

 

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consecutive months
(Incapacity),
the Executive’s employment shall terminate at the end of the six (6)-month period. In such event, upon the Termination
Date, the Company shall pay to the Executive a lump sum payment equal to the Termination Amount. The lump sum payment shall be
made on the sixtieth (60th) day following the Termination Date, provided that prior to the payment date the
Executive signs a waiver and release agreement in substantially the form of the Release Agreement and such release becomes effective
and irrevocable in its entirety prior to such date. If the waiver and release does not become effective and irrevocable on or
prior to the payment date set forth in the preceding sentence, the Company shall have no further obligations pursuant to Sections
4(c) or 4(g) of this Agreement. Any dispute between the Board and the Executive with respect to the Executive’s Incapacity
shall be settled by reference to a competent medical authority mutually agreed to by the Board and the Executive, whose decision
shall be limited to a determination of whether the Board had exercised reasonable judgment in making a determination of the Executive’s
Incapacity and shall be binding on all parties, without any right to appeal.

 

(d)     
Termination by the Company for Cause; Resignation by the Executive without Good Reason.

 

(i)                
If the Executive’s employment is terminated by the Company for Cause or the Executive resigns his employment for any
reason (other than for Good Reason, as defined below), the Company shall have no further obligations to the Executive hereunder
after the Termination Date, except for unpaid Salary and benefits accrued through the Termination Date.

 

(ii)              
For purposes of this Agreement, “Cause”
shall mean (A) the Executive’s material failure, refusal or neglect to perform and discharge his powers, duties and responsibilities
hereunder (including duties prescribed by the Board pursuant to Section 2), other material breach of the terms hereof, or breach
of any fiduciary duties he may have because of any position he holds with the Company or any subsidiary or affiliate thereof; (B)
the willful engaging by the Executive in misconduct which is materially injurious to the Company, monetarily or otherwise; or (C)
a felony conviction or a conviction for any crime involving the Executive’s personal dishonesty or moral turpitude.

 

(iii)            
For purposes of this Agreement, “Good Reason”
shall mean any of the following events, which continues for more than thirty (30) days after the Executive’s written notice
to the Company thereof: (A) the Executive’s principal office location is moved to, and continues to be, a location more than
fifty (50) miles from its current location as of the Effective Date (it being understood that travel shall not be considered a
move or relocation); (B) Executive’s position, powers, duties and responsibilities under Section 2 above are and continue
to be materially reduced without his written agreement, or (C) Executive’s compensation and benefits payable are and continue
to be eliminated or materially reduced without his written agreement. Unless the Executive gives the Company a written notice setting
forth the basis of the occurrence of the Good Reason event in reasonable detail within ninety (90) days of the Executive’s
knowledge of the event which, after any applicable notice and the lapse of the 30-day cure period set forth above, would constitute
Good Reason, such event will cease to be an event constituting Good Reason.

 

(e)     
Termination Without Cause; Notice of Non-Renewal; Termination for Good Reason; Retirement from the Company. The
Company may terminate the Executive’s employment hereunder at any time without Cause, and the Executive may terminate his
employment hereunder at any time for Good Reason, or voluntarily retire from the Company. In any such event, subject to the consent
of the Committee in the event of the Executive’s voluntary retirement, or upon non-renewal of this Agreement by the Company
at any time in accordance with Section 1, the Company shall pay to the Executive a lump sum payment equal to the Termination Amount.
The lump sum payment shall be made on the sixtieth (60th) day following the Termination Date, provided that
prior to the payment date the Executive

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signs a waiver and release agreement in substantially the form of the Release
Agreement and such waiver and release becomes effective and irrevocable in its entirety prior to such date. If the waiver and
release does not become effective and irrevocable on or prior to the payment date set forth in the preceding sentence, the
Company shall have no further obligations pursuant to Sections 4(e) or 4(g).

 

(f)      
Change in Control. 

 

(i)                
If a Change in Control occurs during the Employment Period Executive’s employment shall be terminated, and the Company
shall pay to the Executive a lump sum amount equal to the Termination Amount; provided that the Termination Amount shall be calculated
using the rates in effect on the Change in Control Date. The lump sum payment shall be made within thirty (30) days following the
Change in Control Date without any action by the Executive. For purposes of determining the Company’s obligations under this
Section 4(f), the date on which a Change in Control is effective shall be referred to as the “Change in Control Date.”

 

(ii)              
For purposes of this Agreement, a “Change in Control” shall mean (A) the consummation of a reorganization,
merger, consolidation or other form of corporate transaction or series of transactions, in each case, with respect to which persons
who were the stockholders of the Company immediately prior to the reorganization, merger or consolidation or other transaction
do not, immediately thereafter, own more than 50% of the combined voting power entitled to vote generally in the election of directors
of the reorganized, merged or consolidated company’s then outstanding voting securities, in substantially the same proportions
as their ownership immediately prior to the reorganization, merger, consolidation or other transaction; (B) the consummation of
a liquidation or dissolution of the Company, (C) the sale of all or substantially all of the assets of the Company, (D) individuals
who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason to constitute
at least a majority of the Board; provided that any person becoming a director subsequent to the Effective Date whose election,
or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is
in connection with an actual or threatened election contest relating to the election of the directors of the Company) shall be,
for purposes of this Agreement, considered as though such person were a member of the Incumbent Board; (E) the acquisition (other
than from the Company) by any person, entity or “group,” within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act, of beneficial ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act of more than 50% of either
the then outstanding shares of the common stock or the combined voting power of the Company’s then outstanding voting securities
entitled to vote generally in the election of directors (hereinafter referred to as the ownership of a “Controlling
Interest”) excluding, for this purpose, any acquisitions by (I) the Company or any of its Subsidiaries or joint ventures,
partnerships or business organizations in which the Company or its Subsidiaries have an equity interest, (II) any person, entity
or “group” that as of the Effective Date owns beneficial ownership (within the meaning of Rule 13d-3 promulgated under
the Exchange Act) or a Controlling Interest or (III) any employee benefit plan of the Company or any of its Subsidiaries or joint
ventures, partnerships or business organizations in which the Company or its Subsidiaries have an equity interest. Notwithstanding
the foregoing, with respect to any payment hereunder that is subject to Section 409A of the U.S. Internal Revenue Code of 1986,
as amended, and the regulations and guidance promulgated thereunder (Section 409A), the payment or settlement of
which will accelerate upon a Change in Control, no event set forth in an agreement applicable to the Executive or clauses (A),
(B) or (C) will constitute a Change in Control for purposes of this Agreement unless the event also constitutes a “change
in ownership,” “change in effective control,” or “change in the ownership of a substantial portion of the
Company’s assets” as defined under Section 409A.

 

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(g)     
Benefit Continuation. Except to the extent equivalent benefits are provided by B/E Aerospace, Inc., KLX Inc. (or
any of their respective successors), if the Executive’s employment is terminated pursuant to Sections 4(c), 4(e) or 4(f),
or upon non-renewal of this Agreement by the Company at any time in accordance with Section 1, the Company shall provide the Executive
and his eligible dependents with continued participation in medical, dental and health benefit plans available to the Company’s
executive officers on similar terms and conditions as active executives, from the Termination Date until the date that is eighteen
(18) months following the Termination Date; provided, however, that the continuation of such benefits shall be subject
to the respective terms of the applicable plan, in effect from time to time, and the timely payment by the Executive of his applicable
share of the applicable premiums in effect from time to time and, except with respect to a termination of employment pursuant to
Section 4(f), that the Executive signs a waiver and release agreement in substantially the form of the Release Agreement and such
waiver and release becomes effective and irrevocable in its entirety. The benefit continuation provided pursuant to this Section
4(g) shall satisfy the Company’s obligation to provide continuation coverage under COBRA. To the extent that reimbursable
medical and dental care expenses constitute deferred compensation for purposes of Section 409A, the Company shall reimburse the
medical and dental care expenses as soon as practicable consistent with the Company’s practice, but in no event later than
the last day of the calendar year next following the calendar year in which such expenses are incurred. This is in addition to,
and not in lieu of, any retirement health benefit program to which the Executive may otherwise be entitled.

 

5.        
Amendments. No amendment to this Agreement or any Exhibit hereto shall be effective unless it shall be in writing
and signed by each party hereto.

 

6.        
Notices. All notices and other communications hereunder shall be in writing and shall be deemed given when delivered
personally or sent by facsimile at a facsimile number provided in writing by the receiving party or three days after being mailed
by registered or certified mail (return receipt requested) to the parties at the following addresses (or at such other address
for a party as shall be specified by like notice) or when sent via email with acknowledgement of receipt:

 

If to the Company, to it at:

 

KLX Energy Services Holdings,
Inc.

1300 Corporate Center Way

Wellington, FL 33414

Attention: General Counsel

 

If to the Executive,
to his at:

 

The address (or
to the facsimile number) shown

in the books and records of the Company.

 

7.        
Entire Agreement. This Agreement, the 2018 Proprietary Rights Agreement and the Release Agreement constitute the
entire agreement among the parties hereto pertaining to the subject matter hereof and supersede all prior and contemporaneous agreements,
understandings, negotiations and discussions, whether oral or written, of the parties, including, without limitation, the Employment
Letter. For the avoidance of doubt, nothing herein shall be interpreted to alter the terms and conditions of that certain Restricted
Stock Award Agreement, by and between the Executive and the Company, dated September 14, 2020.

 

8.        
Headings. The headings in this Agreement are for convenience of reference only and shall not alter or otherwise affect
the meaning of this Agreement.

 

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9.        
Counterparts. This Agreement may be executed in any number of counterparts which together shall constitute one instrument.

 

10.     
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida
and shall in all respects be interpreted, enforced, and governed under the laws of said State, without regard for, or consideration
of, any conflicts of law principles.

 

11.     
Withholding. All payment made by the Company under this Agreement shall be reduced by any tax or other amounts required
to be withheld by the Company under applicable law.

 

12.      
Section 409A.

 

(a)     
If any amounts that become due under Section 4 of this Agreement constitute “nonqualified deferred compensation”
within the meaning of Section 409A, payment of such amounts shall not commence until the Executive incurs a “Separation from
Service” (as defined in Section 12(c), below) if and only if necessary to avoid accelerated taxation or tax penalties in
respect of such amounts.

 

(b)     
Notwithstanding any provision of this Agreement to the contrary, if the Executive is a “Specified Employee”
(as defined in Section 12(c), below) he shall not be entitled to any payments of “nonqualified deferred compensation”
upon a Separation from Service until the earlier of (i) the date which is the first (1st) business day following the
date that is six (6) months after the Executive’s Separation from Service for any reason other than death or (ii) the Executive’s
date of death. The provisions of this Section 12(b) shall only apply if required to comply with Section 409A.

 

(c)     
For purposes of this Agreement, “Separation from Service” shall have the meaning set forth in
Section 409A(a)(2)(A)(i) and determined in accordance with the default rules under Section 409A. “Specified Employee”
shall have the meaning set forth in Section 409A(a)(2)(B)(i), as determined in accordance with the uniform methodology
and procedures adopted by the Company and then in effect.

 

(d)     
It is intended that the terms and conditions of this Agreement comply with Section 409A. If any provision of this Agreement
contravenes any regulations or Treasury guidance promulgated under Section 409A, or could cause any amounts or benefits hereunder
to be subject to taxes, interest and penalties under Section 409A, the Company may, in its sole discretion and without the Executive’s
consent, modify the Agreement to: (i) comply with, or avoid being subject to, Section 409A, (ii) avoid the imposition of taxes,
interest and penalties under Section 409A, and/or (iii) maintain, to the maximum extent practicable, the original intent of the
applicable provision without contravening the provisions of Section 409A. This Section 12(d) does not create an obligation on the
part of the Company to modify this Agreement and does not guarantee that the amounts or benefits owed under this Agreement will
not be subject to interest and penalties under Section 409A.

 

(e)     
Anything in this Agreement to the contrary notwithstanding, no reimbursement payable to the Executive pursuant to any provisions
of this Agreement or pursuant to any plan or arrangement of the Company Group covered by this Agreement shall be paid later than
the last day of the calendar year following the calendar year in which the related expense was incurred, except to the extent that
the right to reimbursement does not provide for a “deferral of compensation” within the meaning of Section 409A. No
amount reimbursed during any calendar year shall affect the amounts eligible for reimbursement in any other calendar year.

 

13.       Enforceability;
Waiver. The invalidity and unenforceability of any term or provision of this Agreement shall not affect the validity or
enforceability of any other term or provision of this Agreement. The Executive’s or the Company’s failure to
insist upon strict compliance with any provision hereof or any other provision of this Agreement or the failure to assert any

 

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right that the Executive
or the Company may have hereunder, shall not be deemed to be a waiver of such provision or right or any other provision or right
of this Agreement. Similarly, the waiver by any party hereto of a breach of any provision of this Agreement by the other party
will not operate or be construed as a waiver of any other or subsequent breach by such other party.

 

14.     
Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
heirs, successors and permitted assigns. This Agreement may be assigned by the Company. The Executive may not assign or delegate
his duties under this Agreement without the Company’s prior written approval.

 

15.     
Survival. The obligations of the Executive pursuant to the 2018 Proprietary Rights Agreement (where applicable) and
the entitlements of the Executive and obligations of the Company pursuant to Section 4 of this Agreement, shall each survive any
termination or expiration of this Agreement, or any termination or resignation of the Executive’s employment, as the case
may be.

 

[Signature
Page Follows]

 

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IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first written above.

 

	 	EXECUTIVE
	 	 
	 	/s/
Thomas P. McCaffrey
	 	Thomas
    P. McCaffrey

 

	 	KLX
    ENERGY SERVICES HOLDINGS, INC.
	 	 
	 	/s/
    s Amin J. Khoury
	 	Name:
    Amin J. Khoury
	 	Title:
    President and Chief Executive Officer

 

[Signature Page
to McCaffrey Employment Agreement]

 

     

     

    

 

EXHIBIT A

 

2018 Proprietary Rights Agreement

 

     

     

    

 

 

KLX ENERGY SERVICES HOLDINGS, INC. PROPRIETARY
RIGHTS

AGREEMENT

 

This Proprietary
Rights Agreement ("Agreement") is intended to set forth in writing my responsibility to KLX Energy Services Holdings,
Inc. and/or any of its subsidiaries or affiliated businesses (collectively, the "Company")
during my employment, consultancy, and/or tenure as an independent contractor with the Company and thereafter. I recognize
that the Company is engaged in a continuous program of research, development and production respecting its business, present and
future. As part of my employment, consultancy, and/or tenure as an independent contractor with the Company, I have certain obligations
relating to business, confidential and/or proprietary information of the Company.

 

I acknowledge and agree that:

 

1.          
Agreement and Effective Date

 

This
Agreement shall be effective on, the first day of my employment, consultancy, and/or tenure as an independent contractor with
the Company and shall continue in effect throughout my employment, consultancy, and/or tenure as an independent contractor (the
"Agreement Period"). As an inducement to, and in
consideration of, my acceptance and/or continuation of employment, consultancy, and/or tenure as an independent contractor with
the Company, and the Company's compensating me for services and extending to me certain other benefits of a compensatory nature,
but without any obligation on the Company's part to continue such employment, compensation or benefits for any specified period
whatsoever, I agree to protect, safeguard and maintain the integrity and confidentiality of the Company's valuable assets and
legitimate business interests in accordance with the terms and conditions set forth in this Agreement.

 

2.         
Confidentiality

 

		2.1	Permitted Use. I will maintain
                                         in confidence and will not disclose or use, either during or after the Agreement Period,
                                         any "Proprietary Information", whether
                                         or not in written form, except to the extent required to perform my duties on behalf
                                         of the Company.

 

		2.2	Definition of Proprietary Information. As used in this Agreement, Proprietary Information
means all of the following materials and information that I use, receive, have access to, conceive or develop or have used, received,
conceived or developed, in whole or in part, in connection with my employment, consultancy and/or tenure as an independent contractor
with the Company:

 

(i)       Written
materials of the Company;

 

The names and information relating
to customers and prospective customers of the Company and/or persons, firms, corporations or other entities with whom the Company
has provided goods or services at any time, including contact persons, addresses and phone numbers, their characteristics and
preferences and types of services provided to or received from those customers and prospective customers;

 

     

     

    

 

The terms of various agreements
between the Company and any third parties, including without limitation, the terms of customer agreements, vendor or supplier
agreements, lease agreements, advertising agreements, fee arrangements, terms of dealing and the like;

 

		(iii)	Any data or database, trading
                                         algorithms or processes, or other information compiled by the Company, including, but
                                         not limited to, customer lists, customer information, information concerning the Company,
                                         or any business in which the Company is engaged or contemplates becoming engaged, any
                                         company with which the Company engages in business, any customer, prospective customer
                                         or other person, firm or corporation to whom or which the Company has provided goods
                                         or services or to whom or which any employee of the Company has provided goods or services
                                         on behalf of the Company, or any compilation, analysis, evaluation or report concerning
                                         or deriving from any data or database, or any other information;

 

		(iv)	All policies, procedures, strategies
                                         and techniques regarding the services performed by the Company or regarding the training,
                                         marketing and sales of the Company, either oral or written. The Company's internal corporate
                                         policies and practices related to its services, price lists, fee arrangements and terms
                                         of dealings with customers or potential customers or vendors. Information relating to
                                         formulas, records, research and development data, trade secrets, processes, other methods
                                         of doing business, forecasts and business and marketing plans;

 

		(v)	Any other information, data,
                                         know-how or knowledge of a confidential or proprietary nature observed, used, received,
                                         conceived or developed by me in connection with my employment, consultancy, and/or tenure
                                         as an independent contractor by the Company, including and not limited to the Company's
                                         methodologies, price strategies, price lists, costs and quantities sold, financial and
                                         sales information, including, but not limited to, the Company's financial condition,
                                         business interests, initiatives, objectives, plans or strategies; internal information
                                         regarding personnel identity, skills, compensation, organizational charts, budgets or
                                         costs of individual departments, and the compensation paid to those working for or who
                                         provide services to the Company; and performance of investments, funds or portfolio companies,
                                         including any "track record" or other financial performance information or
                                         results;

 

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		(vi)	All other non-public information regarding the amount and nature of the capital and assets owned
or controlled by, or net worth of, the Company and/or any of the Company's shareholders, members, partners, employees or investors;
the investments made, directly or indirectly, by the Company (including, but not limited to, any partnerships, corporations or
other entities in which the Company may invest and the assets which any of those entities acquires); the expected or actual rates
of return or holding periods of any investment by the Company; the respective interest in any investment of any of its shareholders,
members, partners or investors or the manner in which those interests are held; the identities of the other persons or entities
who participate in any investment made by the Company; and financial statements, projections, budgets and market information;

 

		(vii)	All discoveries, software (including, without limitation, both source code and object code), models,
drawings, photographs, specifications, trademarks, formulas, patterns, devices, compilations and all other proprietary know-how
and technology, whether or not patentable or copyrightable, and all copies and tangible embodiments of any of the foregoing, and
that have been or will be created for the Company by me, whether alone or with others;

 

		(viii)	The Company's inventions, products, research and development, production processes,
                                                              manufacturing and engineering processes, machines and equipment, finances, customers, marketing, and production and future
                                                              business plans, information belonging to customers or suppliers of the Company disclosed incidental to my employment,
                                                              consultancy, and/or tenure as an independent contractor and any other information which is identified as confidential by the
                                                              Company; and

 

		(ix)	"Trade Secrets",
                                         which shall include, but not be limited to, information regarding formulas, processes
                                         or methods that: (a) derive independent economic value, actual or potential, from not
                                         being generally known to or readily ascertainable by proper means, by other persons who
                                         can obtain economic value from its disclosure or use; and (b) is the subject of reasonable
                                         efforts by the Company to maintain its secrecy. "Trade Secrets" shall also
                                         include all other information or data that qualifies as a trade secret under applicable
                                         law.

 

    3

     

    

 

3.          
Trade Secrets

 

3.1       Use and Return
of Proprietary Information and Trade Secrets:

 

		(i)	I agree that, upon termination
                                         of my employment (if applicable) and/or tenure as an independent contractor with the
                                         Company for any reason (regardless of whether or not the Company retains me as a consultant)
                                         or at any other time upon the Company's request, I shall return to Company, without retaining
                                         any copies, all Proprietary Information and Trade Secrets, as well as all other Company's
                                         documents and other materials, which are in my possession regardless of the form in which
                                         any such materials are kept;

 

		(ii)	T acknowledge
                                         that all documents, in hard copy or electronic form, received, created or used by me
                                         in connection with my employment, consultancy, and/or tenure as an independent contractor
                                         with the Company are and will remain the property of the Company. I agree to return all
                                         such documents (including all copies) promptly upon the termination of my employment,
                                         consultancy, and/or tenure as an independent contractor, certify that no other documents
                                         remain, and agree that, during or after my employment, consultancy, and/or tenure as
                                         an independent contractor, I will not, under any circumstances, without the written consent
                                         of the Company, disclose those documents to anyone outside the Company or use those documents
                                         for any purpose other than the advancement of the Company's interests;

 

		3.2	Defense of Trade Secrets
                                         Act. Notwithstanding anything to the contrary, I understand and acknowledge that
                                         the Company has informed me that an individual shall not be held criminally or civilly
                                         liable under any federal or state trade secret law for (i) the disclosure of a trade
                                         secret that is made in confidence to a federal, state, or local government official or
                                         to an attorney solely for the purpose of reporting or investigating a suspected violation
                                         of law, or (ii) the disclosure of a trade secret that is made in a complaint or other
                                         document filed in a lawsuit or other proceeding if such filing is made under seal. Additionally,
                                         notwithstanding anything to the contrary, I understand and acknowledge that the Company
                                         has informed me that an individual who files a lawsuit for retaliation by an employer
                                         for reporting a suspected violation of law may disclose the trade secret to the attorney
                                         of the individual and use the trade secret information in the court proceeding if the
                                         individual files any document containing the trade secret under seal and does not disclose
                                         the trade secret, except pursuant to a court order.

 

4.          
No Conflicting Obligations

 

Except as otherwise
set forth in the Employment Letter, my performance of this Agreement does not and will not breach any agreement to keep in confidence
proprietary information, knowledge or data acquired by me prior to my employment, consultancy, and/or tenure as an independent
contractor with the Company. I will not disclose, induce, or permit the Company to, either directly or indirectly, use, any confidential
or proprietary information or material belonging to any previous employer or other person or entity. Except as otherwise set forth
in the Employment Letter, I am not a party to any other agreement that will interfere with my full compliance with this Agreement.
I will not enter into any agreement, whether written or oral, conflicting with the provisions of this Agreement.

 

    4

     

    

 

5.          
Whistleblowing

 

Nothing in this Agreement
or any other agreement between you and the Company shall be interpreted to limit or interfere with your right to report good faith
suspected violations of law to applicable government agencies, including the Equal Employment Opportunity Commission, National
Labor Relation Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other applicable
federal, state or local governmental agency, in accordance with the provisions of any "whistleblower" or similar provisions
of local, state or federal law. You may report such suspected violations of law, even if such action would require you to share
the Company's Proprietary Information or Trade Secrets with the government agency, provided that any such Proprietary Information
is protected to the maximum extent permissible and any such information constituting Trade Secrets is filed only under seal in
connection with any court proceeding. Lastly, nothing in this Agreement or any other agreement between you and the Company will
be interpreted to prohibit you from collecting any financial incentives in connection with making such reports nor to require
you to notify or obtain approval by the Company prior to making such reports to a government agency.

 

6.           
Survival

 

Notwithstanding the
termination of the Agreement Period, this Agreement shall survive such termination and continue in accordance with its terms and
conditions. Unless provided otherwise in a written contract with the Company, this Agreement does not in any way restrict my right
or the right of the Company to terminate my employment, consultancy, and/or tenure as an independent contractor at any time, for
any reason or for no reason.

 

7.           
Specific Performance

 

A breach of any of
the promises or agreements contained herein will result in irreparable and continuing damage to the Company for which there will
be no adequate remedy at law, and the Company shall be entitled to injunctive relief and/or a decree for specific performance,
and such other relief as may be proper (including monetary damages, if appropriate).

 

8.           
Waiver

 

The waiver by the
Company of a breach of any provision of this Agreement by me will not operate or be construed as a waiver of any other or subsequent
breach by me.

 

    5

     

    

 

9.           
Severability

 

If any
part of this Agreement is found invalid or unenforceable, that part will be amended to achieve as nearly as possible the same
economic effect as the original provision and the remainder of this Agreement will remain in full force.

 

10.         
Governing Law

 

This Agreement will
be governed by and construed in accordance with the laws (other than the conflict of laws rules) of the state of Florida.

 

11.        
Entire Agreement

 

Except for the Employment
Letter (and the exhibits thereto), this Agreement constitutes the entire agreement between the parties relating to this subject
matter and supersede all prior or simultaneous representations, discussions, negotiations and agreements, whether written or oral,
except for prior proprietary rights agreements which shall for the period prior to the effective date of this Agreement be deemed
to be in addition to, and not in lieu of, this Agreement for such prior period. This Agreement may be amended or modified only
with the written consent of both me and the Company. No oral waiver, amendment or modification will be effective under any circumstances
whatsoever.

 

12.        
Assignment

 

This Agreement
may be assigned by the Company. I may not assign or delegate my duties under this Agreement without the Company's prior
written approval. This Agreement shall be binding upon my hairs, successors and permitted assignees.

 

    6

     

    

 

Date: September 14, 2018

 

	 	EMPLOYEE
	 	/s/ Thomas P. McCaffrey
	 	(Name)
	 	Thomas P. McCaffrey
	 	(Printed
    Name)
	 	 
	 	KLX ENERGY SERVICES HOLDINGS,
    INC.
	 	 
	 	By:	/s/
Amin J. Khoury            
	 	Title:	President
    and Chief Executive Officer   

 

Signature Page to the Proprietary
Rights Agreement

 

     

     

    

 

EXHIBIT B

 

Release Agreement

 

     

     

    

 

EXHIBIT A

 

Form
of Mutual Waiver Agreement

 

SEPARATION
AGREEMENT AND MUTUAL RELEASE

 

This Separation Agreement
and Mutual Release (the "Agreement"), is made as of _______        ,
20____ , by and between KLX Energy Services Holdings, Inc., a Delaware corporation (the "Company") and
Thomas P. McCaffrey ("Employee’'), for the purpose of memorializing the terms and conditions of the Employee's
departure from the Company's employment.

 

Now, therefore, in
consideration of the sum of one dollar ($1.00) and the mutual promises, agreements and covenants contained herein, and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, (the "Settlement Consideration"),
the parties hereto, intending to be legally bound, hereby agree as follows:

 

1.                   Termination;
Employment Letter. Effective__________       , 20___ , Employee's employment with the
Company was terminated. Upon Employee's termination. Employee and the Company shall each have those respective surviving rights,
obligations and liabilities described in that certain Employment Letter, dated as of September 14, 2018, by and between Employee
and the Company (the "Employment Letter") and that certain Restricted Stock Award Agreement, dated as
of September 14, 2018. by and between Employee and the Company (the "Restricted Stock Agreement").

 

2.                   Non-Released
Claims.

 

(a)              
Employee Non-Released Claims. It is explicitly agreed, understood and intended that the general release of claims provided
tbr in this Agreement shall not include or constitute a waiver of the Company's, its agent, representative or designee's obligations
to Employee (i) that arc specified in the Employment Letter as surviving the termination of Employee's employment, (ii) that arise
out of or from respondeat superior principles, (iii) for claims for indemnification and defense under any organizational
documents. agreement, insurance policy, or at law or in equity concerning either the Company, its subsidiaries, affiliates, directors,
officers or employees, (iii) concerning any deferred compensation plan, 401(k) plan, equity plan or retirement plan and (iv) any
claims not waivable under applicable law, collectively, the "Employee Non-Released Company Claims".

 

(b)             
Company Non-Released Claims. It is explicitly agreed, understood and intended that the general release of claims provided
for in this Agreement shall not include or constitute a waiver of (i) the Employee's obligations to the Company concerning the
Company's confidential information and proprietary rights that survive Employee's termination of employment, including those
specified in that certain Proprietary Rights Agreement, dated as of September 14, 2018, by and between Employee and the Company
(the "Proprietary Rights Agreement") (ii) any claim of the Company for fraud based on willful and intentional
acts or omissions of Employee, other than those taken in good faith and in a manner that Employee believed to be in or not opposed
to the interests of the Company, proximately causing a financial restatement by the Company and (iii) any claims not waivable
by the Company under applicable law, collectively, the "Company Non-Released Employee Claims".

 

3.                   General
Release in Favor of the Company: Employee, for himself and for his heirs, executors, administrators, trustees, legal representatives
and assigns (collectively, the "Releasers"), hereby forever releases and discharges the Company, its Board
of Directors, and any of its past, present, or future parent corporations, subsidiaries, divisions, affiliates, officers, directors,
agents, trustees, Administrators, attorneys, employees, employee benefit and/or pension plans or funds (including qualified and
non-qualified plans or funds), successors and/or assigns and any of its or their past, present or future parent corporations,
subsidiaries, divisions, affiliates, officers, directors, agents, trustees, administrators, attorneys, employees, employee benefit
and/or pension plans or funds (including qualified and non-qualified plans or funds), successors and/or assigns (whether acting
as agents for the Company or in their individual capacities) (collectively, the "Releasees") from any
and all claims, demands, causes of action, and liabilities of any kind whatsoever (upon any legal or equitable theory, whether
contractual, common-law, statutory, federal, state, local, or otherwise), whether known or unknown, by reason of any act, omission,
transaction or occurrence which Releasers ever had, now have or hereafter can, shall or may have against Releasees up to and including
the date of the execution of this Agreement, except for the Employee Non-Released Company Claims. Without limiting the generality
of the foregoing, Releasers hereby release and discharge Releasees from:

 

     

     

    

 

(a)             
any and all claims for backpay, frontpay, minimum wages, overtime compensation, bonus payments, benefits, reimbursement for expenses,
or compensation of any kind (or the value thereof), and/or for liquidated damages or punitive damages (under any applicable statute
or at common law);

(b)             
any and all claims, relating to Employee's employment by the Company, the terms and conditions of such employment, employee benefits
related to Employee's employment, the termination of Employee's employment, and/or any of the events relating directly or indirectly
to or surrounding such termination;

 

(c)              
any and all claims of discrimination, harassment, whistle blowing or retaliation in employment (whether based on federal, state
or local law, statutory or decisional), including without limitation, all claims under the Age Discrimination in Employment Act
of 1967, as amended, Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act, the Civil Rights
Act of 1991, the Civil Rights Act of 1866, 42 USC §§ 1981-86, as amended, the Equal Pay Act, the Fair Labor Standards
Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the Florida Civil Rights Act of 1992, the
Florida Whistle-Blower Law (Fla. Stat. § 448.101 et seq.), the Florida Equal Pay Act, and waivable rights under the Florida
Constitution;

 

(d)             
any and all claims under any contract, whether express or implied;

 

(e)              
any and all claims for unintentional or intentional torts, l'or emotional distress and for pain and suffering;

 

(f)               any
and all claims for violation of any statutory or administrative rules, regulations or codes;

 

(g)               any
and all claims for attorneys' fees, costs, disbursements, wages, bonuses, benefits, vacation and/or the like;

 

which Releasers
ever had, now have or hereafter can, shall or may have against Releasees for, upon or by reason of any act, omission, transaction
or occurrence up to and including the date of the execution of this Agreement, except for the Employee Non-Released Company Claims.

 

4.                  
General Release in Favor of Employee. The Releasees, and each
of them, hereby release Releasers, and each of them, from all claims or causes or action whatsoever, known or unknown, including
any and all claims of the common law of the State of Florida. including but not limited to breach of contract (whether written
or oral), promissory estoppel, defamation, unjust enrichment, or claims for attorneys' fees and costs and all claims which were
alleged or could have been alleged against the Employee which arose from the beginning of the world to the date of this Agreement.
except for the Company Non-Released Employee Claims.

 

 5.                   Reserved.

 

6.                  
Covenants not to Sue.

 

(a)             
Employee Covenant not to Sue. Employee represents and warrants that to date, he has not filed any lawsuit, action, complaint
or charge of any kind with any federal, state, or county court or administrative or public agency against the Company or any other
Releasee. Without in any way limiting the generality of the foregoing, Employee hereby covenants not to sue or to assert, prosecute,
or maintain. directly or indirectly, in any form, any claim or cause of action against any person or entity being released pursuant
to this Agreement with respect to any matter, cause, omission, act, or thing whatsoever, occurring in whole or in part on or at
any time prior to the date of this Agreement, except for the Employee Non-Released Company Claims. Employee agrees that he will
not seek or accept any award or settlement from any source or proceeding with respect to any claim or right waived in this Agreement.

 

(b)             
Company Covenant not to Sue. The Company represents and warrants that to date, it has not filed any lawsuit, action, complaint
or charge of any kind with any federal, state, or county court or administrative or public agency against Employee or any other
Releaser. Without in any way limiting the generality of the foregoing, the Company hereby covenants not to sue or to assert, prosecute,
or maintain, directly or indirectly, in any form, any claim or cause of action against any person or entity being released pursuant
to this Agreement with respect to any matter, cause, omission, act, or thing whatsoever, occurring in whole or in part on or at
any time prior to the date of this Agreement, except for the Company Non-Released Employee Claims The Company agrees that it will
not seek or accept any award or settlement from any source or proceeding with respect to any claim or right waived in this Agreement.

 

     

     

    

 

7.                  
No Admission. The making of this Agreement is not intended, and shall not be construed, as an admission that
the Company or any of the Releasees, has violated any federal, state or local law (statutory or decisional), ordinance or regulation,
breached any contract or committed any wrongdoing whatsoever.

 

8.                  
Effectiveness. This Agreement shall not become effective until the eighth day following Employee's signing of
this Agreement ("Effective Date") and Employee may at any time prior to the Effective Date revoke this Agreement by
giving notice in writing of such revocation to:

 

KLX Energy Services Holdings, Inc.

1300 Corporate Center Way,

Wellington, FL 33414

Attn: General Counsel

 

In the event that Employee revokes this
Agreement prior to the eighth day a tier his execution thereof, this Agreement, and the promises contained herein, shall automatically
be deemed null and void.

 

9.                  
Employee Acknowledgement. Employee acknowledges that he has been advised in writing to consult with an attorney
before signing this Agreement, and that Employee has been afforded the opportunity to consider the terms of this Agreement for
twenty-one (21) days prior to its execution. Employee further acknowledges that he has read this Agreement in its entirety, that
he fully understands all of its terms and their significance, that he has signed it voluntarily and of Employee's own free will,
and that Employee intends to abide by its provisions without exception.

 

10.               
Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be illegal, void
or unenforceable, such provision shall have no effect, however, the remaining provisions shall be enforced to the maximum extent
possible.

 

11.               
Entire Agreement. This Agreement, the Restricted Stock Agreement, the Proprietary Rights Agreement and the Employment
Letter. taken together, constitute the complete understanding between the parties and supersedes all such prior agreements between
the parties and may not be changed orally. Employee acknowledges that neither the Company nor any representative of the Company
has made any representation or promises to Employee other than as set forth herein or therein. No other promises or agreements
shall be binding unless in writing and signed by the parties.

 

12.               
General Provisions.

 

(a)             
Governing Law; Jurisdiction; Venue. This Agreement shall be enforced, governed and interpreted by the laws of the State
of Florida without regard to Florida's conflict of laws principles. Any controversy or claim arising out of or relating to this
Agreement, or the breach thereof, shall be settled in a court of competent jurisdiction in the State of Florida in Palm Beach
County. Each party consents to the jurisdiction of such Florida court in any such civil action or legal proceeding and waives
any objection to the laying of venue in such Florida court.

 

(b)             
Prevailing Party. In the event of any litigation, dispute or contest arising from a breach of this Agreement, the
prevailing party shall be entitled to recover from the non-prevailing party all reasonable costs incurred in connection with such
litigation, dispute or contest, including without limitation, reasonable attorneys' fees, disbursement and costs, and experts'
fees and costs.

 

     

     

    

 

(c)              
Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed as an original,
but all of which together shall constitute one and the same instrument.

 

(d)              
Binding Effect. This Agreement is binding upon, and shall inure to the benefit of, the parties, the Releasers and
the Releasees and their respective heirs, executors, administrators, successors and assigns.

 

(e)              
Interpretation. Should any provision of this Agreement require interpretation or construction, it is agreed by the parties
that the entity interpreting or construing this Agreement shall not apply a presumption that the provisions hereof shall be more
strictly construed against one party who prepared the Agreement, it being agreed that all parties have participated in the preparation
of all provisions of this Agreement.

 

(f)                Defense of Trade
Secrets Act. Notwithstanding anything to the contrary in this Agreement or otherwise, Employee understands and acknowledges
that the Company has informed Employee that an individual shall not be held criminally or civilly liable under any federal or
state trade secret law for (i) the disclosure of a trade secret that is made in confidence to a federal, state, or local government
official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law or (ii) the disclosure
of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding if such filing is made
under seal. Additionally, notwithstanding anything to the contrary in this Agreement or otherwise, Employee understands and acknowledges
that the Company has informed Employee that an individual who files a lawsuit for retaliation by an employer for reporting a suspected
violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court
proceeding if the individual files any document containing the trade secret under seal and does not disclose the trade secret,
except pursuant to a court order.

 

(g)               Whistleblowing.
Nothing in this Agreement or any other agreement between Employee and the Company shall be interpreted to limit or interfere with
Employee's right to report good faith suspected violations of law to applicable government agencies. including the Equal Employment
Opportunity Commission, National Labor Relation I3oard, the Occupational Safety and Health Administration, the Securities and
Exchange Commission or any other applicable federal, state or local governmental agency, in accordance with the provisions of
any "whistleblowern or similar provisions of local, state or federal law. Employee may report such suspected violations of
law, even if such action would require Employee to share the Company's proprietary information or trade secrets with the government
agency, provided that any such information is protected to the maximum extent permissible and any such information constituting
trade secrets is filed only under seal in connection with any court proceeding. Lastly, nothing in this Agreement or any other
agreement between Employee and the Company will be interpreted to prohibit Employee from collecting any financial incentives in
connection with making such reports or require Employee to notify or obtain approval by the Company prior to making such reports
to a government agency.

 

	[Signature Page
Follows]

 

     

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed and delivered
this Separation Agreement and Mutual Release as of the date first written above.

 

	 	 	KLX ENERGY SERVICES HOLDINGS, INC.
	 	 	 	 
	 	 	By:	                      
	 	 	 
	Thomas P. McCaffrey	 	PRINT
    NAME:
	 	 	 
	 	 	TITLE:
	 	 	 
	STATE OF FLORIDA	) 	 
	 	 	 
	 	) ss.	 
	 	 	 
	COUNTY OF                     	) 	 

 

I HEREBY CERTIFY,
that on this day, before me, an officer duly authorized in the State and County aforesaid to take acknowledgments, personally
appeared Thomas P. McCaffrey, to me known to be the person described in and who executed the foregoing instrument, and
acknowledged to and before me that he/she executed the same. This individual is personally known to me or has produced a
___________________ as identification and did take an oath.

 

SWORN TO AND SUBSCRIBED before me this
___ day of ________, 20        .

 

 

	 	 
	 	Notary Public
	 	 
	My Commission Expires:Exhibit 10.18

 

EXECUTION COPY

 

SEPARATION AND GENERAL RELEASE AGREEMENT

 

This Separation and
General Release Agreement (this “Agreement”) effective April 11,
2020, is made and entered into by and between KLX Energy Services Holdings, Inc., a Delaware corporation (“KLX Energy”),
on behalf of itself and its past and present officers, owners, stockholders, partners, directors, agents, employees, successors,
predecessors, assigns, representatives, attorneys, divisions, subsidiaries and affiliates, including, without limitation, KLX Energy
Services LLC (and agents, directors, officers, employees, representatives and attorneys of such divisions, subsidiaries and affiliates),
(together with KLX Energy, collectively, the “Company”) and Gary J. Roberts (the “Executive”).
The Company and Executive are referred to herein as a “Party” and the “Parties”.

 

1.            
Separation. The Company and Executive mutually agree that Executive’s last day of work with the Company and
Executive’s employment termination date will be April 11, 2020 (the “Separation Date”). Executive
hereby resigns all of Executive’s positions at the Company and its affiliates, effective as of the Separation Date, and will
execute such additional instruments and other documents as the Company reasonably requests to evidence the foregoing. The Separation
Date is the termination date of Executive’s employment for all purposes, including, without limitation, active participation
in and coverage under all plans and programs sponsored by or through the Company or its affiliates, or which Executive otherwise
participates in or receives benefits under as a result of Executive’s employment status with the Company, except as otherwise
provided below or otherwise required by applicable law.

 

2.             
Accrued Obligations and COBRA.

 

(a)              
Within thirty (30) days following the Separation Date (or such earlier date as may be required by applicable law), Executive
will be paid for Executive’s accrued but unpaid base salary through the Separation Date, unreimbursed business expenses entitled
to reimbursement as of the Separation Date in accordance with Company policies, and any other accrued and vested benefits to which
Executive is legally entitled under the employee benefit plans of the Company. Executive is entitled to these accrued obligations
regardless of whether Executive signs this Agreement or the general release of claims contemplated by paragraph 4 below.

 

(b)              
Executive will continue to participate in the Company’s health, dental and vision plans at Executive’s current
level through April 30, 2020. Subject to Executive’s timely election of, and continued eligibility for, continuation coverage
under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), Executive will
be eligible for continued health coverage following April 30, 2020 (to the extent permitted under applicable law and the applicable
plan) for the applicable COBRA coverage period, subject to Executive’s payment of the full COBRA premiums required for such
coverage. The plan administrator, or their designee, will provide Executive with the required documentation for electing COBRA
coverage under separate correspondence.

 

3.                  Consideration.
Reference is made to that certain Amended and Restated Employment Agreement, dated September 14, 2018, by and between
Executive and the Company, as modified by that certain side letter, dated October 7, 2018, by and among Executive, the

 

     

     

    

 

 

 

Company and KLX Inc,
and that certain KLX Energy Services Holdings, Inc. 2018 Proprietary Rights Agreement, by and between Executive and the Company,
dated April 3, 2020 (collectively, the “Employment Agreements”). Notwithstanding any terms to the contrary
in the Employment Agreements, in consideration for, and subject to, Executive’s execution and non-revocation of this Agreement,
Executive’s continued compliance with Executive’s post-termination obligations described herein and in paragraph 6
below, and the other promises contained herein, as well as in reliance of the promises and requirements of Company, Executive
will receive severance benefits consisting of the following:

 

(a)              
A lump-sum payment equal to twelve (12) months of Executive’s base salary (which the Parties agree is $355,030.00),
payable within sixty (60) days following the Separation Date.

 

(b)              
Executive was previously granted 220,653 restricted shares of common stock of the Company (the “Restricted Shares”),
subject to the terms and conditions of that certain (i) KLX Energy Services Holdings, Inc. Long-Term Incentive Plan Restricted
Stock Award Agreement, by and between Executive and the Company, dated September 14, 2018 (the “Award Agreement”),
and (ii) the KLX Energy Services Holdings, Inc. Long-Term Incentive Plan (the “Plan”). As of the
Separation Date, 55,164 of such Restricted Shares will have become vested in accordance with the terms and conditions of the Award
Agreement and the Plan. In consideration for Executive’s
execution and non-revocation of this Agreement, notwithstanding anything to the contrary in the Award Agreement or Plan, on the
Separation Date, the remaining 165,489 Restricted Shares (the “Accelerated Shares”) will become fully
vested and no longer be subject to cancellation pursuant to Section 3 of the Award Agreement or the transfer restrictions set forth
in Section 5 of the Award Agreement; provided however that, Executive shall forfeit the Accelerated Shares in the event
that Executive revokes such the release of claims in accordance with the terms of this Agreement.

 

4.                  Final
Settlement and Release. In consideration of the terms stated in this Agreement, Executive acknowledges complete
satisfaction of, and does hereby forever release, absolve, and discharge the Company, including but not limited to its parent
corporation(s), subsidiaries, affiliates, shareholders, directors, members, officers, trustees, employees, past and present,
successors, predecessors, assigns, agents, attorneys, and representatives (collectively the
 “Releasees”), from any and all charges, claims, complaints, causes of action, rights, demands,
obligations, promises, agreements, controversies, suits, costs, losses, judgments, liens, indebtedness and expenses
(including attorneys’ fees and costs actually incurred), damages, or liabilities of any kind or description (except for
Executive’s right to unemployment insurance should Executive fail to obtain re–employment), whether known or
unknown, suspected or unsuspected, fixed or contingent, which Executive, in his individual capacity, now has or holds, or at
any time had or held against the Releasees based on any act or omission occurring before the date of Executive signing this
Agreement. The foregoing includes, but is not limited to, any claims arising out of or in connection with: Executive’s
employment relationship with the Company and/or the termination of that relationship, including but not limited to any claims
under the Employment Agreements, wrongful discharge or breach of the covenant of good faith and fair dealing, breach of
contract, misrepresentation, intentional infliction of emotional distress, any form of negligence, fraud, deceit, defamation,
any claim for indemnification on any basis except as

 

     

     

    

 

 

 

otherwise specifically
provided in the Agreement, malicious prosecution or abuse of process, violation of any and all federal and state civil rights
laws, ordinances, regulations or orders, based on charges of discrimination on account of race, color, religion, sex, sexual orientation,
citizenship, national origin, mental or physical disability, medical condition, marital status, or any other discrimination prohibited
by such laws, ordinances, regulations or orders including but not limited to any and all state and federal contract, tort, and
statutory claims, including but not limited to the Age Discrimination in Employment Act (or Older Workers Benefit Protection Act),
Sections 29 USC 621, et seq.; Title VII of the Civil Rights Act of 1964, as amended, 42 USC Sections 2000, et seq.;
Americans with Disabilities Act, 42 USC Sections 12101, et seq.; Civil Rights Act of 1866, and Civil Rights Act of 1991,
42 USC Sections 1981, et seq.; Equal Pay Act, as amended, 29 USC Sections 206(d); Vocational Rehabilitation Act of 1973,
as amended, 29 USC Sections 701, et seq.; Family and Medical Leave Act; Employee Retirement Income Security Act of 1974;
Immigration Reform and Control Act; Worker Adjustment and Retraining Notification Act; Fair Credit Reporting Act; Genetic Information
Nondiscrimination Act; Wyoming Fair Employment Practices Act; Wyoming Health Insurance Benefit Coverage law; Wyoming leave laws;
Wyoming wage payment and working hour laws; Wyoming Smoking in the Workplace law; Wyoming Whistleblower Protection law; the Florida
Civil Rights Act of 1992; the Florida Whistle-Blower Law (Fla. Stat. § 448.101 et seq.); the Florida Equal Pay Act; the Discrimination
in Employment Act; the Persons With Disabilities Employment Protection Act; the Delaware Whistleblowers' Protection Act; the Wage
Payment and Collection Act; the Delaware Fair Employment Practices Act; Delaware’s social media law; the Colorado Anti-Discrimination
Act; and those other provisions of such laws, ordinances, regulations or orders that lawfully may be released and any and all
contracts arising out of or resulting from Executive’s employment by or with the Company.

 

Subject to Executive’s
execution and non-revocation this Agreement, Company and its affiliates, forever release, absolve, and discharge Executive and
his heirs (collectively the “Executive Releasees”) from any and all charges, claims, complaints, causes
of action, rights, demands, obligations, promises, agreements, controversies, suits, costs, losses, judgments, liens, indebtedness
and expenses (including attorneys’ fees and costs actually incurred), damages, or liabilities of any kind or description,
which Company now has or holds, or at any time had or held against the Executive Releasees, based on any act or omission occurring
before the date of Executive signing this Agreement arising out of or in connection with Executive’s employment relationship
with the Company and/or the termination of that relationship. The foregoing release does not include any claims related to: (i)
Executive’s obligations to the Company concerning the Company’s confidential information and proprietary rights that
survive Executive’s termination of employment, including those specified in the Employment Agreements and this Agreement,
(ii) any right that the Company or its affiliates may have with respect to the enforcement of the restrictive covenant provisions
in the Employment Agreements and in this Agreement, (iii) any claim of the Company for fraud, willful misconduct or actions taken
by Executive in bad faith, (iv) any claims not waivable by the Company under applicable law and (v) any claims of which the Company’s
Board of Directors does not actual knowledge of, as of the date hereof.

 

Notwithstanding anything in this
Agreement to the contrary, Executive acknowledges and agrees that this Agreement and release does not waive or release any
rights or claims that: ‎are not waivable as a matter of law; relate to rights, obligations or benefits provided for
under this 

 

     

     

    

 

 

 

Agreement; arise after the date Executive executes this Agreement and release; or involve unemployment
compensation benefits (if Executive is ‎otherwise qualified for such benefits under applicable law) or any pending
 ‎workers’ compensation claim (however, Executive hereby represents that Executive has no unfiled workers’
 ‎compensation claim or unreported injury). Executive acknowledges and agrees that Executive’s separation from
employment with the Company in compliance with the terms of the Employment Agreements shall not serve as the basis for any
claim or action (including, without limitation, any claim under the Age Discrimination in Employment Act of 1967).

 

5.                 
Full and Final Release. The Parties acknowledge that this is a full and final release, and that Executive and Company
both intend and expressly agree that this release shall be effective as a bar to each and every claim, demand and cause of action
that the claiming party may have or has against the other party as of the date of this Agreement, except as otherwise provided
herein. Executive and Company agree and understand that, except as may be required by subpoena, court order, or other force of
law, neither party shall, in any way, encourage or assist any individual or entity in commencing or prosecuting any action or proceeding,
including but not limited to any administrative agency claims, charges or complaints or any lawsuit against the Company or Executive,
or in any way participate or cooperate in any such action or proceeding, including any trial, pretrial preparation, pre-litigation
fact-gathering, or administrative agency proceeding connected with any and all matters from the beginning of time to the date hereof.
Absent legal compulsion from a court of competent jurisdiction, this release bars Executive and Company from, whether directly
or indirectly, testifying, providing documents or information, advising, counseling or providing any other form of assistance to
any person or entity concerning the Company, its business, operations, or procedures or the Executive with respect to the released
claims. Executive acknowledges that, except as expressly provided in this Agreement or as otherwise required by applicable law,
Executive will not receive any additional compensation, severance or other benefits or amounts of any kind following the Separation
Date.

 

6.                 
Restrictive Covenants, Post-Employment Obligations and Company Remedies. The restrictive covenants and any and all
continuing and post-termination obligations set forth in the Employment Agreements, attached hereto as Exhibit A, remain
in full force and effect and shall be deemed separate and distinct provisions and each of their respective terms and applicable
time periods shall run in accordance with their respective terms for the benefit of the Company; provided, however,
that during the “Restricted Period” (as defined in the Employment Agreements), Executive may serve as
a member on the board of directors of a privately held “Competitor” (as defined in the Employment Agreements)
provided that, prior to any such service, Executive seeks and obtains the Company’s written consent, which shall not be
unreasonably withheld, and will be provided or denied by return email or overnight delivery no later than ten (10) business days
following the Company’s receipt of Executive’s request. Company’s failure to respond shall be deemed Company’s
approval of Executive’s request. For purposes of this paragraph 6, Executive’s written request to serve as a member
on the board of directors of any privately held Competitor must contain sufficient detail to permit the Company to make an informed
decision and must be provided to the attention of the Company’s Chairman of the Board, Chief Financial Officer and its Secretary.
In the event that Executive’s written request to serve as a member on the board of directors of any privately held Competitor
is denied, the Company will provide justification for such denial in reasonable detail. Executive’s written request pursuant
to 

     

     

    

 

 

 

 the foregoing will be held
as confidential information by the Company, provided however that, Executive acknowledges and agrees that, notwithstanding
the foregoing, the Company shall not be constrained from disclosing information that is required to be disclosed by
applicable law, securities exchanges, legal or regulatory processes or where required pursuant to a bona fide agreement to
which the Company is or becomes a party that could require such a disclosure be made. The Company’s remedies for any
breach by Executive of Executive’s restrictive covenants and post-termination obligations set forth in the Employment
Agreements, including, without limitation, Sections 6, 7 and 8 of the Employment Agreement, shall remain in full force and
effect and shall continue to apply in accordance with their respective terms for the benefit of the Company.

 

7.                 
Mutual Non-disparagement. Executive agrees not to make negative comments or otherwise disparage the Company or its
officers, directors, managers, employees, shareholders, members, agents, services or products. The foregoing shall not be violated
by truthful statements in response to legal process, required governmental testimony or filings, or administrative or arbitral
proceedings (including, without limitation, depositions in connection with such proceedings).

 

Company agrees to instruct
individuals holding the positions of District and Area Manager, Product Line Manager, Vice President and above as of the Separation
Date and the members of the Board as of the Separation Date to not, while employed by the Company or serving as a director of the
Company, make negative comments or otherwise disparage Executive. The foregoing shall not be violated by truthful statements in
response to legal process, required governmental testimony or filings, or administrative or arbitral proceedings (including, without
limitation, depositions in connection with such proceedings) or by
statements that such individuals in good faith believe are necessary or appropriate to make in connection with performing their
duties and obligations to the Company.

 

8.                 
Cooperation. Executive agrees to make reasonable efforts to cooperate with the Company in any investigation, defense
or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company
in which Executive may be a witness or have relevant information regarding same. Executive’s cooperation in connection with
such claims or actions shall include, but not be limited to, being available to meet with the Company’s counsel to prepare
for discovery or any mediation, arbitration, trial, administrative hearing or other proceeding or to act as a witness when requested
by the Company at mutually agreeable times and at locations mutually convenient to Executive and the Company.

 

9.                 
Indemnification; Clawback. Executive agrees that if Executive violates this Agreement by suing the Company related
to any claims waived in this Agreement, Executive shall (i) pay all reasonable costs and expenses of defending against the suit
incurred by the Releasees, including attorneys’ fees and (ii) forfeit all rights to any consideration described in paragraph
3 of this Agreement, and the Company shall be entitled to recover from Executive, and Executive shall pay over to the Company,
an amount equal to any consideration described in paragraph 3 of this Agreement already paid to Executive, including without limitation,
the Accelerated Shares.

 

     

     

    

 

 

 

10.             
No Admission. It is understood, agreed and stipulated that the considerations described herein are in complete and
full accord, satisfaction and discharge of any disputed claims, and that the Company does not in any manner by virtue of this Agreement,
or payment of the consideration therefor, admit liability to anyone as a result of any incident, act or omission related to Executive’s
employment with the Company. Furthermore, Executive acknowledges that this is not an admission of wrongdoing by Executive or the
Company, and shall not be used as evidence of liability and/or guilt.

 

11.             
No Assignment of Interest. Executive acknowledges and agrees that he has not assigned to any person or entity any
part of this Agreement. Any purported assignment by the Executive shall be null and void from the initial date of the purported
assignment.

 

12.             
Delaware Law Governs. This Agreement is made and entered into in the State of Delaware, and shall in all respects
be interpreted, enforced and governed under the laws of said State, without regard to or consideration for any conflicts of law
principles.

 

13.             
Validity of Provisions. Should any provision of this Agreement be declared or be determined by any court to be illegal
or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid
part, term, or provision shall be deemed not to be a part of this Agreement or release.

 

14.             
Construction and Scope of the Release. This Agreement is to be construed fairly and not in favor of or against any
Party, regardless of which Party drafted or participated in the drafting of its terms. Any rule of construction that a document
is to be construed against the drafting Party shall not be applicable to this Agreement. This portion of this Agreement, like each
of the other portions, was subject to and the product of negotiation. The Parties hereby acknowledge and agree that this Agreement
shall not affect matters or claims by either Party not in connection with or arising out of, directly or indirectly, Executive’s
employment with the Company and/or its affiliates.

 

15.             
Counterparts. This Agreement may be executed in any number of counterparts, or in different counterparts, any of
which shall be deemed an original, but all of which together shall constitute one and the same Agreement and release.

 

16.             
Enforcement. The Parties agree that any and all disputes of any kind relating to this Agreement shall be resolved
in accordance with that certain KLXE Mutual Dispute Resolution Agreement, attached as Appendix A to the Employee Guide to KLX Energy
Services LLC, provided to you and received on April 3, 2020; provided, however, that the Company shall be entitled to seek
equitable relief in the form of specific performance, a temporary restraining order, a temporary or permanent injunction or any
other equitable remedy which may then be available, without the necessity of showing actual monetary damages or the posting of
a bond or other security in any Court of competent jurisdiction. The prevailing Party to such dispute shall be entitled to recover
its reasonable attorneys’ fees and costs in connection therewith.

 

     

     

    

 

 

 

17.             
Further Assurances. Each of the Parties shall execute any other documents and take any other actions as may be reasonably
necessary to carry out the intent and purpose of this Agreement.

 

18.             
Headings. The paragraph headings in this Agreement are for convenience only and shall not control or affect the meaning
or construction of any provision of this Agreement.

 

19.             
Facsimile. A facsimile or electronic scanned signature on this Agreement shall have the same force and effect as
an original signature.

 

20.             
Tax Withholding. The Company may withhold from the amounts payable under this Agreement such federal, state, local
or foreign taxes as may be required to be withheld pursuant to any applicable law or regulation. The intent of the Parties is that
the payments contemplated under this Agreement either comply with, or are exempt from, the requirements of Internal Revenue Code
Section 409A. To the extent that the payments contemplated by this Agreement are not exempt from the requirements of Internal Revenue
Code Section 409A, this Agreement is intended to comply with the requirements of Internal Revenue Code Section 409A to the maximum
extent possible, and will be limited, construed and interpreted in accordance with such intent. Executive and the Company hereby
agree that Executive’s termination of employment constitutes a “separation from service” within the meaning of
Internal Revenue Code Section 409A.

 

21.             
Whistleblowing. Nothing in this Agreement or any other agreement between Executive and the Company shall be interpreted
to limit or interfere with Executive’s right to report good faith suspected violations of law to applicable government agencies,
including the Equal Employment Opportunity Commission, the National Labor Relation Board, the Occupational Safety and Health Administration,
the Securities and Exchange Commission, or any other applicable federal, state or local governmental agency, in accordance with
the provisions of any “whistleblower” or similar provisions of local, state or federal law. Executive may report such
suspected violations of law, even if such action would require Executive to share the Company’s proprietary information or
trade secrets with the government agency, provided that any such proprietary information is protected to the maximum extent permissible
and any such information constituting trade secrets is filed only under seal in connection with any court proceeding. Lastly, nothing
in this Agreement or any other agreement between Executive and the Company will be interpreted to prohibit Executive from collecting
any financial incentives in connection with making such reports nor to require Executive to notify or obtain approval by the Company
prior to making such reports to a government agency.

 

22.              Trade
Secrets. Notwithstanding anything in this Agreement or any other agreement between Executive and the Company to the
contrary, under the federal Defend Trade Secrets Act of 2016, Executive shall not be held criminally or civilly liable under
and federal or state trade secret law for the disclosure of a trade secret that:  (a) is made (i) in confidence to a
federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the
purpose of reporting or investigating a suspected violation of law; or (b) is made to Executive’s attorney in relation
to a lawsuit for retaliation against Executive for reporting a

 

     

     

    

 

 

 

 suspected violation of law; or (c) is made in a complaint or
other document filed in a lawsuit or other proceeding, if such filing is made under seal.

 

23.             
Revocation. Executive has the right to revoke the release/waiver of claims under the Age Discrimination in Employment
Act set forth in this Agreement within seven (7) days of signing this Agreement (the “Revocation Period”).
To revoke, Executive must attach a written letter of revocation in pdf form, via email with acknowledgement of receipt to: jonathan.mann@klxenergy.com
(attn: General Counsel, 1300 Corporate Center Way, Wellington, FL 33414). If Executive revokes, Executive will not receive the
consideration described in paragraph 3, including without limitation the Accelerated Shares, and shall return to the Company, an
amount equal to any consideration described in paragraph 3 of this Agreement already paid to Executive, including without limitation,
the Accelerated Shares. This Agreement shall not become fully effective or enforceable until the revocation period has expired.

 

24.             
Return of Company Property. Executive represents that Executive has returned or will return all property belonging
to the Company (including, but not limited to, any Company-provided laptops, computers, cell phones, vehicles, keys, wireless electronic
mail devices or other equipment, or documents and property belonging to the Company). The Company and Executive will use commercially
reasonable best efforts to coordinate the return of such Company property as well as Executive’s personal property in the
Company’s possession at a time that is mutually agreeable to the Parties. Executive further acknowledges and agrees that
the Company will have no obligation to make the payments referred to in paragraph 3 above unless and until Executive has satisfied
all of Executive’s obligations pursuant to this paragraph 24.

 

25.             
Notice Period. Executive expressly acknowledges and agrees that, by entering into this Agreement, Executive is waiving
any and all rights or claims that he may have arising under the Age Discrimination in Employment Act of 1967, as amended, which
have arisen on or before the date of execution of this Agreement. Executive further expressly acknowledges and agrees that:

 

(a)              
In return for this Agreement, Executive will receive compensation beyond that which he was already entitled to receive before
entering into this Agreement.

 

(b)              
Executive was advised by the Company, and is hereby advised, to consult with an attorney before signing this Agreement,
and Executive acknowledges and represents that Executive has been advised to consult with an attorney of Executive’s choice
before signing this Agreement;

 

(c)              
Executive was given a copy of this Agreement and informed that Executive had twenty-one (21) days within which to consider
the Agreement and release; and,

 

(d)              
Executive was informed that Executive had seven (7) days following the date of execution of the Agreement in which to revoke
this Agreement and release.

 

[Remainder Intentionally Left Blank]

 

     

     

    

 

 

 

26.             
Notices. All notices and other communications hereunder shall be in writing and shall be deemed given when sent by
email to the Parties at the following addresses (or at such other address for a Party as shall be specified by like notice):

 

If to the Company, to it at:

 

KLX Energy Services Holdings, Inc.

jonathan.mann@klxenergy.com

Attention: General Counsel

 

If to Executive, to Executive at:

 

The email address provided to the Company
as of the date hereof.

 

With additional notice to:

 

Chapman, Valdez & Lansing

mlansing@bslo.com

Attn: Michael Lansing

 

IN WITNESS WHEREOF, the Parties have executed
this SEPARATION AND GENERAL RELEASE AGREEMENT as of the date first written above.

 

	Executive	 	KLX Energy Services Holdings, Inc.

 

	/s/
Gary J. Roberts		By:	/s/ Thomas P. McCaffrey

	 	 
	Gary J. Roberts	 	Name: 
	 	 	Title:

 

	April 11, 2020	 	April 11, 2020

	Date	 	Date

 

     

     

    

 

EXHIBIT A

 

[Employment Agreements]

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