Document:

Document

EXHIBIT 10.11

Baldwin Risk Partners, LLC
4211 W. Boy Scout Blvd, Suite 800
Tampa, FL 33607

September 8, 2021
Christopher Stephens
2624 W. Jetton Ave.
Tampa, FL 33629

Dear Chris:
This letter agreement (this “Agreement”) sets forth our mutual understanding concerning the transition and termination of your employment with Baldwin Risk Partners, LLC, a Delaware limited liability company (the “Company”), and its subsidiaries and affiliates, including BRP Group, Inc., a Delaware Corporation (“PubCo”) (collectively, the “Company Group”). 
1.Transition Period; Termination.
(a)You will continue to be employed by and provide services to the Company Group until November 1, 2021, unless your employment is earlier terminated by you or the Company (any such date of termination of employment, the “Termination Date” and the period beginning on the date hereof and ending on the Termination Date, the “Transition Period”). Your employment and all of your positions with the Company Group will terminate in all capacities as of the Termination Date. 
(b)During the Transition Period, you will continue to serve as General Counsel of the Company and PubCo (“General Counsel”), but you agree that you may be transitioned by the Company Group to an advisory role upon the appointment of a new General Counsel and will then have such duties as determined by the Chief Executive Officer of the Company and PubCo. You agree to render services to the Company Group on a full-time, exclusive basis during the Transition Period. 
(c)During the Transition Period, you will continue to receive (i) your current base salary, paid in accordance with the Company’s regular payroll practices and (ii) employee benefits consistent with Section 4(d) of your employment agreement with the Company, dated as of September 9, 2019 (the “Employment Agreement”). 
2.Severance.  Upon the Termination Date, the Company will (i) pay you that portion of your base salary that is accrued but unpaid through the Termination Date and (ii) reimburse you pursuant to Section 4(e) of the Employment Agreement for reasonable expenses incurred but not paid prior to the Termination Date; provided that you must submit those expenses for reimbursement within 30 days after the Termination Date. You will also be entitled to receive any non-forfeitable benefits already earned and payable to you in accordance with the terms and provisions of any agreements, plans or programs of the Company Group, including, but not limited to, retirement plan benefits and accrued but unused paid time off. In addition, provided that your employment with the Company Group (i) continues until November 1, 2021 or (ii) is earlier terminated by the Company without Cause or by you for Good Reason (each as defined in the Employment Agreement), and subject to (x) your execution of this Agreement within 21 days following the date hereof and your non-revocation of this Agreement, (y) your execution of the reaffirmation page attached hereto as Exhibit A (the “Reaffirmation”) within 21 days following the Termination Date and your non-revocation of the Reaffirmation and 
    
    

(z) your continued compliance with the Restrictive Covenants (as defined below), you will be entitled to the following (collectively, the “Severance”):
(a)the Company will continue to pay you your current annual base salary of $300,000 for a period of 12 months following the Termination Date; provided that any such payments that otherwise would be paid prior to the date that your execution of the Reaffirmation becomes irrevocable instead will be paid within five (5) business days after such date, and the remaining such payments will be paid over the remainder of such 12-month period; provided further that, if the period during which you may execute and revoke the Reaffirmation begins in one calendar year and ends in the next calendar year, then any such payments that otherwise would be paid in such first calendar year instead will be paid during the first five (5) business days of such next calendar year;
(b)if you are eligible for and properly elect health care continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), the Company will subsidize the cost of your COBRA premium payments (for you and your dependents) such that the premium payments are no greater than the health care premiums that you would pay if your employment with the Company Group continued during such period, for a period of 18 months following the Termination Date for you and your dependents under the Company’s group health plan in which you and your dependents were participating immediately prior to the Termination Date or any successor plan (at the level then in effect or its equivalent);
(c)the Company will pay you a 2021 annual bonus in an amount that you would have earned had you remained employed on the payment date based on the Company’s actual performance for the 2021 fiscal year in accordance with the terms of the 2021 executive compensation framework approved by the compensation committee (the “Compensation Committee”) of the Company’s board of directors on May 3, 2021, subject to any adjustments made by the Compensation Committee in its sole discretion and that apply to you on the same terms as are applicable to other senior executives of the Company Group, and measured by the Company in accordance with the normal accounting methods, principles and procedures used by the Company for determining the 2021 annual bonuses for the other senior executives of the Company Group, but assuming “superior” performance with respect to personal performance, payable in cash at the same time that 2021 annual bonuses, if any, are paid to other senior executives of the Company Group; provided that in no event will the amount of such bonus payable to you under this section be less than $180,000; and
(d)of the 71,430 LLC Units (as defined in the Third Amended and Restated Limited Liability Company Agreement of the Company, dated as of October 7, 2019, as amended from time to time in accordance with its terms (the “LLCA”)) (and a corresponding number of shares of Class B Common Stock (as defined in the LLCA)) that you hold, effective upon the effectiveness of this Agreement and the Reaffirmation, 50,001 of such LLC Units (and a corresponding number of shares of Class B Common Stock) will be deemed fully vested (the “Vested Units”); provided that, effective as of the Termination Date, the remainder of such LLC Units (and corresponding shares of Class B Common Stock), together with any unvested equity awards granted to you under the BRP Group, Inc. Omnibus Incentive Plan, will be forfeited by you for no consideration; and provided further that you will remain subject to and entitled to the benefits of the LLCA and, as applicable, your restricted unit agreements with the Company effective as of the closing of PubCo’s initial public offering and dated December 27, 2019, respectively (the “Restricted Unit Agreements”). 

    
    

    Notwithstanding the foregoing, any changes in your position, authorities, responsibilities, reporting relationship or duties pursuant to Section 1(b) of this Agreement will not constitute Good Reason.
3.No Other Compensation or Benefits.  Except as specifically provided herein, or as required for COBRA coverage under Section 4980B(f) of the Internal Revenue Code of 1986, as amended (the “Code”), or other applicable law, you will not be entitled to any compensation or benefits or to participate in any employment-related benefit programs or arrangements of the Company Group either during the Transition Period or after the Termination Date (including pursuant to the Employment Agreement), provided however that nothing in this Agreement shall prejudice or waive: (i) any compensation and benefits which you have accrued prior to the Termination Date and which are non-forfeitable or; (ii) any of your rights to indemnification or advancement by the Company, including without limitation your rights under the Director and Executive Officer Indemnification Agreement, dated as of October 23, 2019, between PubCo and you, the Employment Agreement, the Company Group’s organizational documents, or under any directors and officers insurance policy maintained by the Company.  Additional information regarding COBRA coverage will be provided to you separately. 
4.Return of Property.  Except as requested or permitted by the Company, you confirm that, on or prior to the Termination Date, you will have returned to the Company all property of the Company Group in your possession and all property made available to you in connection with your employment with the Company Group, including, without limitation, any and all Company Group credit cards, keys, security access codes, records, manuals, customer lists, notebooks, computers, computer programs and files, papers, electronically stored information and documents kept or made by you in connection with your employment with the Company Group.
5.Restrictive Covenants; Cooperation.  You acknowledge and agree that you remain subject to any restrictive covenants set forth in your restrictive covenants agreement with the Company, dated as of September 9, 2019, and the Employment Agreement (collectively, the “Restrictive Covenants”), and that the Restrictive Covenants are incorporated by reference into this Agreement and will remain in full force and effect following the Termination Date and will not be superseded by the terms of this Agreement. In addition, for the avoidance of doubt, Sections 13 (Employee’s Representations; Indemnification) and 24 (Cooperation) of the Employment Agreement will remain in full force and effect following the Termination Date. In requesting cooperation after the Termination Date, the Company (i) will consider other commitments that you have at the time of the request and (ii) will only share any non-material public information with you after the second anniversary of the Termination Date to the extent it determines it is reasonably necessary for purposes of your cooperation, in which case it will, to the extent reasonably practicable, provide you with reasonable prior notice before sharing any non-material public information with you. 
6.Defend Trade Secrets Act. Notwithstanding anything to the contrary in this Agreement or otherwise, as provided for in the Defend Trade Secrets Act of 2016 (18 U.S.C. § 1833(b)), you will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is made (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Without limiting the foregoing, if you file a lawsuit for retaliation by the Company for reporting a suspected violation of law, you may disclose the trade secret to your attorney and use the trade secret information in the 

    
    

court proceeding, if you (x) file any document containing the trade secret under seal, and (y) do not disclose the trade secret, except pursuant to court order.
7.Whistleblower Protection. Notwithstanding anything to the contrary in this Agreement or otherwise, you may communicate directly with and provide information, including documents, not otherwise protected from disclosure by any applicable law or privilege to the Securities and Exchange Commission (the “SEC”), any other federal, state or local governmental agency or commission (“Government Agency”) or self-regulatory organization regarding possible legal violations, without disclosure to the Company.  The Company may not retaliate against you for any of these activities, and nothing in this Agreement or otherwise requires you to waive any monetary award or other payment that you might become entitled to from the SEC or any other Government Agency or self-regulatory organization. Further, nothing in this Agreement precludes you from filing a charge of discrimination with the Equal Employment Opportunity Commission or a like charge or complaint with a state or local fair employment practice agency. However, once this Agreement becomes effective, you may not receive a monetary award or any other form of personal relief from the Company Group in connection with any such charge or complaint that you filed or is filed on your behalf.
8.Confidentiality of This Agreement.  Except as may be required by applicable law, legal process or any court, you agree that the terms of this Agreement are confidential and that you will not disclose or discuss any such terms to or with any person other than your attorney, tax, financial or investment advisors, or spouse.  You agree that you will instruct your any such individuals not to disclose or discuss such terms to or with any other person.
9.General Release. In consideration of the Company’s obligations under this Agreement and for other good and valuable consideration, you, on behalf of yourself and your executors, heirs, administrators, representatives and assigns, hereby agree to release and forever discharge the Company and all predecessors, successors and their respective parent corporations (including PubCo), affiliates, related, and/or subsidiary entities, and all of their past and present investors, directors, shareholders, officers, general or limited partners, employees, attorneys, agents and representatives, and the employee benefit plans in which you are or have been a participant by virtue of your employment with or service to the Company Group, from any and all claims, debts, demands, accounts, judgments, rights, causes of action, equitable relief, damages, costs, charges, complaints, obligations, promises, agreements, controversies, suits, expenses, compensation, responsibility and liability of every kind and character whatsoever (including attorneys’ fees and costs), whether in law or equity, known or unknown, asserted or unasserted, suspected or unsuspected, which you have or may have had against such entities (collectively, “Claims”) based on any events or circumstances arising or occurring on or prior to the date hereof and arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever your employment by or service to the Company Group or the termination thereof, including without limitation any and all Claims arising under federal, state, or local laws relating to employment, including without limitation claims of wrongful discharge, breach of express or implied contract, fraud, misrepresentation, defamation, or liability in tort, and Claims of any kind that may be brought in any court or administrative agency including, without limitation, claims under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. Section 2000, et seq.; the Americans with Disabilities Act, as amended, 42 U.S.C. § 12101 et seq.; the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701 et seq.; the Civil Rights Act of 1866, and the Civil Rights Act of 1991; 42 U.S.C. Section 1981, et seq.; the Age Discrimination in Employment Act, as amended, 29 U.S.C. Section 621, et seq.; the Equal Pay Act, as amended, 29 U.S.C. Section 206(d); regulations of the Office of 

    
    

Federal Contract Compliance, 41 C.F.R. Section 60, et seq.; the Family and Medical Leave Act, as amended, 29 U.S.C. § 2601 et seq.; the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. § 201 et seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; and any similar state or local law, but excluding any Claims arising directly or indirectly out of, relating to or in any way involving in any manner whatsoever (a) all payments and benefits to be provided pursuant to this Agreement, (b) your rights related to the continued ownership of the Vested Units and any other equity securities in the Company Group, including but not limited to pursuant to the Restricted Unit Agreements, the LLCA, the Tax Receivable Agreement (as defined in the LLCA), the Registration Rights Agreement (as defined in the LLCA), and the Stockholders Agreement (as defined in the LLCA), (c) any of your rights under COBRA, (d) any of your rights to indemnification or advancement by the Company, including without limitation your rights under the Director and Executive Officer Indemnification Agreement, dated as of October 23, 2019, between PubCo and you, the Employment Agreement, the Company Group’s organizational documents, or under any directors and officers insurance policy maintained by the Company, (e) the indemnification provided by the Company under Section 26(b) of the Employment Agreement with respect to the Participation Threshold for the Management Incentive Units issued to you, (f) any rights to unemployment, state disability and/or paid family leave insurance benefits pursuant to the terms of applicable law, (g) any violation of any federal, state or local statutory and/or public policy right or entitlement that, by applicable law, may not be waived, (h) any Claim that is based on an act or omission that occurs after the date you execute this Agreement or the Reaffirmation, and (i) any of your rights to assert any defenses, including affirmative defenses, against any allegations, causes of action, and/or claims of any nature that may be brought against you (the “General Release”). 
In consideration of your obligations under this Agreement and for other good and valuable consideration, each of the Company and PubCo, on behalf of itself and each of their predecessors, successors and their respective affiliates, related, and/or subsidiary entities, and all of their past and present investors, directors, shareholders, officers, general or limited partners, employees, attorneys, agents and representatives and assigns, hereby agrees to release and forever discharge you, from any and all claims, debts, demands, accounts, judgments, rights, causes of action, equitable relief, damages, costs, charges, complaints, obligations, promises, agreements, controversies, suits, expenses, compensation, responsibility and liability of every kind and character whatsoever (including attorneys’ fees and costs), whether in law or equity, known or unknown, asserted or unasserted, suspected or unsuspected, which the Company, PubCo and/or their related releasors have or may have had against you (collectively, “Company Claims”) based on any events or circumstances arising or occurring on or prior to the date hereof and arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever your employment by or service to the Company Group or the termination thereof but excluding any Company Claims arising directly or indirectly out of, relating to or in any way involving in any manner whatsoever (a) any Claim that is based on your willful misconduct, theft, fraud or any crime of dishonesty in connection with your duties to the Company Group, (b) any Claim that is based on your material breach of the Restrictive Covenants, (c) any Claim that is based on an act or omission that occurs after the date you execute this Agreement or the Reaffirmation, and (d) any of the Company’s, PubCo’s and/or their related releasors’ rights to assert any defenses, including affirmative defenses, against any allegations, causes of action, and/or claims of any nature that may be brought against it.  The Company and PubCo shall sign the Reaffirmation within five (5) business days of your execution and return of the Reaffirmation to the Company.
10.Opportunity to Consider this Agreement and the Reaffirmation.  

    
    

(a)You are hereby advised to seek the advice of counsel prior to signing this Agreement. You hereby acknowledge that you are acting of your own free will, that you have been afforded a reasonable time to read and review the terms of this Agreement, and that you are voluntarily executing this Agreement with full knowledge of its provisions and effects.  You further acknowledge that you have been given at least TWENTY-ONE (21) days within which to consider this Agreement and that you have SEVEN (7) days following your execution of this Agreement to revoke your acceptance, with this Agreement not becoming effective until the seven (7) day revocation period has expired.  If you elect to revoke your acceptance of this Agreement, you must provide written notice of such revocation to Trevor Baldwin by 5 p.m. on the seventh (7th) day after you execute this Agreement.  
(b)You will have TWENTY-ONE (21) days following the Termination Date within which to execute the Reaffirmation and SEVEN (7) days following your execution of the Reaffirmation to revoke your acceptance.
11.Redemption of LLC Units and Class B Common Stock. Notwithstanding any provision in the LLCA or any other agreement between you and the Company, for the one-year period following the Termination Date, each of PubCo and the Company agrees not to exercise the Company's option under Section 10.01(a) of the LLCA to require you to redeem any of your LLC Units and Class B Common Stock in exchange for Class A Common Stock of PubCo, if such redemption would cause you to realize capital gain on the redemption and you would be unable to sell the Class A Common Stock due to any prohibition on you trading the Class A Common Stock of PubCo for any reason (including, but not limited to, your possession of non-material public information regarding the Company); provided that, for the avoidance of doubt, the Managing Member (as defined in the LLCA) will retain its option under Sections 10.01(b) and 10.03 of the LLCA to require you to redeem any of your LLC Units and Class B Common Stock in exchange for cash in the manner and otherwise in accordance with the terms and conditions set forth in Article 10 of the LLCA. 
12.Non-Disparagement. You and the Company agree that the non-disparagement provisions in Section 12 of the Employment Agreement will remain in effect following the Termination Date.
13.Miscellaneous.
(a)Entire Agreement.  This Agreement sets forth the entire agreement and understanding of the parties hereto with respect to the matters covered hereby and unless specifically provided herein, supersedes and replaces any express or implied, written or oral, prior agreement, plan or arrangement with respect to the terms of your employment with the Company Group and the termination thereof which you may have had with the Company Group, including the Employment Agreement.  This Agreement may be amended only by a written document signed by the Company and you. 
(b)Section 409A.  If any provision of this Agreement contravenes Section 409A of the Code, the regulations promulgated thereunder or any related guidance issued by the U.S. Treasury Department, the Company may reform this Agreement or any provision hereof to maintain to the maximum extent practicable the original intent of the provision without violating the provisions of Section 409A of the Code. For purposes of Section 409A of the Code, each payment made under this Agreement will be designated as a “separate payment” within the meaning of Section 409A. In addition, notwithstanding anything contained in this Agreement to the contrary, if, upon your separation from service, (i) you are a specified employee as defined in 

    
    

Section 409A of the Code and (ii) any of the payments or benefits provided hereunder constitute deferred compensation under Section 409A of the Code, then, and only to the extent required by such provisions, the date of payment of such payments or benefits otherwise provided will be delayed for a period of six months following the separation from service, and any amounts so delayed will be paid during the seventh month following separation from service. 
(c)Withholding Taxes.  Any payments made or benefits provided to you under this Agreement will be reduced by any applicable withholding taxes. The Company will withhold payments made pursuant to this Agreement according to the IRS Form W-4 most recently provided to the Company by you rather than at the withholding rate for supplemental wages.
(d)Waiver.  The failure of either party to this Agreement to enforce any of its terms, provisions or covenants will not be construed as a waiver of the same or of the right of such party to enforce the same.  Waiver by either party hereto of any breach or default by the other party of any term or provision of this Agreement will not operate as a waiver of any other breach or default.
(e)Severability.  In the event that any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remainder of this Agreement will not in any way be affected or impaired thereby.  If any provision of this Agreement is held to be excessively broad as to duration, activity or subject, such provision will be construed by limiting and reducing it so as to be enforceable to the maximum extent allowed by applicable law.
(f)Counterparts.  This Agreement may be executed in one or more counterparts, which together will constitute one and the same agreement.
(g)Successors and Assigns.  Except as otherwise provided herein, this Agreement will inure to the benefit of and be enforceable by you and by the Company and its successors and assigns.
(h)Choice of Law; WAIVER OF TRIAL BY JURY.  This Agreement will be governed by and construed in accordance with the laws of the State of Florida without giving effect to Florida’s rules of conflicts of law, and regardless of the place or places of its physical execution and performance. You and the Company hereby (i) consent to the personal jurisdiction of the state and federal courts having jurisdiction in Hillsborough County, Florida, (ii) stipulate that the exclusive venue for any legal proceeding arising out of this Agreement is Hillsborough County, Florida, for a state court proceeding, or the Middle District of Florida, Tampa Division, for a federal court proceeding, and (iii) waive any defense, whether asserted by motion or pleading, that Hillsborough County, Florida, or the Middle District of Florida, Tampa Division, is an improper or inconvenient venue. EACH OF THE PARTIES TO THIS AGREEMENT IRREVOCABLY AND UNCONDITIONALLY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING HEREBY, OR THE ACTIONS OF THE PARTIES IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT OF THIS AGREEMENT.  In any litigation between you and the Company Group arising out of or related to this Agreement, the losing party shall reimburse the prevailing party for all reasonable attorneys’ fees and costs incurred by that prevailing party in enforcing, defending, or prosecuting this Agreement.
[signature page to follow]

    
    

						
	Baldwin Risk Partners, LLC
By: BRP Group, Inc., as Managing Member

	By:	/s/ Trevor Baldwin
	Name:    Trevor Baldwin

	Title:    Chief Executive Officer

	BRP Group, Inc.

	By:	/s/ Trevor Baldwin
	Name:    Trevor Baldwin

	Title:    Chief Executive Officer

YOU HEREBY ACKNOWLEDGE THAT YOU HAVE READ THIS AGREEMENT, THAT YOU FULLY KNOW, UNDERSTAND AND APPRECIATE ITS CONTENTS, AND THAT YOU HEREBY ENTER INTO THIS AGREEMENT VOLUNTARILY AND OF YOUR OWN FREE WILL.

ACCEPTED AND AGREED:

			
	/s/ Christopher Stephens

Christopher Stephens

    
    

EXHIBIT A

REAFFIRMATION PAGE

This page (this “Reaffirmation”) represents my, the Company and PubCo’s reaffirmation as of the date hereof of the commitments set forth in the transition and termination letter agreement to which this Reaffirmation is attached (the “Agreement”), and I, the Company and PubCo hereby agree that my  general release of claims pursuant to the General Release (as defined in the Agreement) and the Company and PubCo’s release of Company Claims, as well as any applicable provisions of Sections 7 or 9 of the Agreement, will be extended to cover any act, omission or occurrence occurring up to and including the date on which I execute this Reaffirmation.  

I acknowledge that I have been advised to seek the advice of counsel prior to signing this Reaffirmation. I hereby acknowledge that I am acting of my own free will, that I have been afforded a reasonable time to read and review the terms of this Reaffirmation, and that I am voluntarily executing this Reaffirmation with full knowledge of its provisions and effects.  I further acknowledge that I have been given at least TWENTY-ONE (21) days within which to consider this Reaffirmation and that I have SEVEN (7) days following my execution of this Reaffirmation to revoke my acceptance, with this Reaffirmation not becoming effective until the seven (7) day revocation period has expired.  If I elect to revoke my acceptance of this Reaffirmation, (i) I must provide written notice of such revocation to Trevor Baldwin by 5 p.m. on the seventh (7th) day after I execute this Agreement and (ii) for the avoidance of doubt, such revocation will in no way be a revocation of my obligations under the Agreement. 

[signature page to follow]

    
    

I, the Company and PubCo ratify and reaffirm the commitments set forth in the Agreement: 

/s/ Christopher Stephens                    11/2/2021
Christopher Stephens                Date

 
                        
						
	Baldwin Risk Partners, LLC
By: BRP Group, Inc., as Managing Member

	By:	/s/ Trevor Baldwin
	Name:    Trevor Baldwin

	Title:    Chief Executive Officer

	BRP Group, Inc.

	By:	/s/ Trevor Baldwin
	Name:    Trevor Baldwin

	Title:    Chief Executive OfficerDocument

Exhibit 10.25

EMPLOYMENT SEPARATION AGREEMENT AND RELEASE OF CLAIMS
This Employment Separation Agreement and Release of Claims (“Agreement”) is made by and between WORKHORSE GROUP, INC., a Nevada corporation (the “Company”) and DUANE HUGHES (the “Employee”) (collectively, the “Parties”) as of the Effective Date (defined herein).  
WHEREAS, the Parties wish to settle all matters related to the Employee’s employment with, and separation of employment from, the Company, and all other claims, controversies, charges, or disputes which may exist or may arise between the Parties because of the Employee’s employment with and/or separation of employment from the Company.
NOW THEREFORE, in consideration of the mutual promises and other good and valuable consideration set forth herein, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 
1.No Admission of Liability. It is understood that by entering into this Agreement, neither the Employee nor the Company is admitting any wrongful conduct or violation of law, and that both the Employee and the Company have entered into this Agreement solely in the interest of providing a smooth transition of leadership and resolving all claims and issues which may exist or may arise relating to the Employee’s employment and/or separation of employment from the Company. 
2.Termination of Employment. The Employee’s last date of employment with the Company shall be August 1, 2021 (the “Separation Date”). Employee agrees that the Employee shall cease performing all job duties for the Company as of the Separation Date, provided, however, that this Agreement does not preclude Employee from performing services for the Company after the Separation Date where such services are provided pursuant to a then-existing independent contractor agreement, employment agreement, or other business relationship, including without limitation, the Independent Contractor Agreement (as defined below).  Employee agrees that, upon payment of the Employee’s final paycheck (which shall include payment at Employee’s regular rate of base salary for the balance of 92.25 hours of accrued but unused paid time off as of the Separation Date), other than as explicitly provided in and as an effect of this Agreement, the Employee is not entitled to any further payments, compensation, consideration, or benefits of any kind from the Company with regard to Employee’s employment with, or work for, the Company through the Separation Date, provided, however, that this Agreement does not preclude payment for services rendered by Employee as an independent contractor or other business relationship with Company arising after Employee’s Separation Date. The Employee also agrees that the Employee has been paid what the Employee was owed for any vacation time, sick time, paid time off, or paid leave of absence, if eligible, that the Employee has been given all time off to which the Employee was entitled under any policy of the Company or law, and that the Employee has received (or will receive under this Agreement) all compensation owed through the Separation Date. As of the Separation Date, except as provided herein, the Employee is no longer eligible for benefits through the Company with the exceptions of (i) certain benefits which may by their terms, remain in force through the end of the month in which the Separation Date falls or be eligible for continuation or conversion after employment ends.  
3.Termination of Employment Agreement; Non-Compete Agreement.  By mutual agreement of the Parties, as of the Separation Date, the Amended and Restated Employment Agreement entered into on or about November 6, 2019 by and between Company and Employee (the “Employment Agreement”) is terminated.  The Parties agree that the termination of the Employment Agreement neither constitutes (a) Termination Upon Change of Control (as 

Exhibit 10.25

described in Section 3 of the Employment Agreement), (b) Involuntary Termination (as described in Section 4 of the Employment Agreement), (c) termination by the Company for Cause (as used in the Employment Agreement), (d) termination by the Company as a result of the Death or Permanent Disability of the Employee (as used in the Employment Agreement), nor (e) termination by the Employee for Good Reason (as used in the Employment Agreement).  The Parties acknowledge that the Employee is entering into a non-compete agreement with the Company as of the date of this Agreement (the “Non-Compete Agreement”) in connection with the Independent Contractor Agreement (as defined below).
4.Equity Awards.  By mutual agreement of the Parties, as of the Separation Date, the Restricted Stock Agreement between the Company and the Employee dated as February 25, 2021 is being amended on the terms and conditions set forth in an Amendment to Restricted Stock Agreement entered into between the Company and the Employee as of the date of this Agreement (the “Amended Equity Awards”). In addition, the Company and the Employee will enter into an amendment to certain Stock Option Agreements between the Company and the Employee to extend until January 31, 2022, the period in which the Employee may exercise such Stock Option Agreements as to shares that are vested as of the Separation Date.
5.Consideration. In consideration of the Employee’s promises, covenants, and release of claims contained herein, the Employee acknowledges that, subject to and as a result of Employee’s execution of this Agreement (without revocation by the Employee pursuant to Section 19) (each and collectively, “Consideration”):
a)The Company shall pay to Employee the following amounts, less applicable deductions, for which an IRS Form W-2 will be furnished and on which the tax withholding related to such payments will be reflected (each and collectively, “Severance Pay”):
i.An amount equal to one (1) year of Employee’s base salary ($540,000) payable as follows: (x) a lump sum payment equal to one-fourth of such amount shall be payable within thirty (30) days following the Separation Date, (y) three lump sum payments equal to the one-fourth of such amount shall be payable on the first payroll date to occur following the three-month, six-month and nine-month anniversaries of the Separation Date (and in each case no interest shall accrue on such later-paid amounts); and 
ii.An amount equal to one hundred percent (100%) of the target bonus in effect for the Executive for calendar year 2021, such payment to be prorated to reflect the number of full months the Executive remained in the employ of the Company (specifically, the gross bonus pay described herein is equal to $315,000), payable on or about March 15, 2022, the approximate date that 2021 bonuses would otherwise be paid to Company executives remaining employed until such date; and
iii.$20,000, less applicable deductions, which amount is intended to represent the Employee’s cost of COBRA continuation coverage, although the Employee shall have no obligation to elect COBRA continuation coverage or to use any of such amount toward such cost.  This amount will be paid in a lump sum within thirty (30) days following the Separation Date.
iv.It is intended by the parties that the first two such payments in i. above, and the payment in iii. above be treated as exempt from Internal Revenue Code (“Code”) Section 409A as short term deferrals, and the latter two payments in i. above and the payment in ii. above, be paid after 

Exhibit 10.25

a 6 month delay at definite payment dates for purposes of such Code Section. Each payment shall be treated as separate payments (rather than a installments) as permitted under such Code Section. Notwithstanding the forgoing, the Employee acknowledges that the Company makes no representations about compliance with Code Section 409A and that Employee is and remains solely liable for his own tax consequences thereunder.
b)Employee will be provided the opportunity to enter into an independent contractor arrangement with the Company, which arrangement will provide to the Employee certain compensation and equity benefits in exchange for Employee’s services beyond the Separation Date as an independent contractor of the Company, subject to the terms defined in a separate mutually-agreeable independent contractor agreement (“Independent Contractor Agreement”), which Independent Contractor Agreement will be reduced to a signed writing by and between the Parties (“Independent Contractor Engagement”), and shall be eligible to receive certain equity in the Company pursuant to the Amended Equity Awards .  
The Employee acknowledges that the Consideration provided herein including, but not limited to the Severance Pay, and the Independent Contractor Engagement and the Amended Equity Awards (subject in all respects to the terms of the Independent Contractor Agreement and the Amended Equity Awards) constitute consideration in exchange for the Employee’s execution of this Agreement and that such are benefits that the Employee would not have been entitled to had the Employee not executed this Agreement. The Employee acknowledges that the Company has not provided any advice or opinion to the Employee regarding potential tax liability for the consideration provided hereunder. 
6.General Waiver and Release.  In exchange for the consideration identified in this Agreement, which the Employee acknowledges is in addition to anything of value to which the Employee is already entitled, the Employee hereby waives, releases, settles, and forever discharges the Company, its affiliates, and each of their respective past and present board members, executives, directors, trustees, officers, employees, agents, insurers, predecessors, successors, attorneys, and any other party associated with the Company (“Releasees”), to the fullest extent permitted by applicable law, from any and all claims, causes of action, rights, demands, debts, liens, liabilities, or damages of whatever nature, including negligence, whether known or unknown, suspected or unsuspected, that the Employee ever had or may now have, which have been or could be raised by the Employee against any Releasee through the date hereof. The Employee’s waiver and release includes, but is not limited to, all claims, liens, demands, or liabilities arising out of or in any way connected with the Employee’s employment with the Company or the termination of that employment pursuant to any federal, state, or local laws regulating employment including, but not limited to, claims of race, national origin, ancestry, handicap, disability, religion, marital status, pregnancy, sexual orientation, gender identity, veteran status, sexual harassment, sex, and age discrimination, retaliation, and all claims under the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, the Employee Retirement Income Security Act, the Rehabilitation Act of 1973, The Reconstruction Era Civil Rights Act, as amended, the Americans with Disabilities Act of 1990 (“ADA”) and the ADA Amendments Act of 2008, the Family and Medical Leave Act, the Age Discrimination in Employment Act (“ADEA”), including without limitation the Older Workers’ Benefit Protection Act (“OWBPA”), the Equal Pay Act, the Fair Labor Standards Act, the Immigration Control and Reform Act, the Fair Credit Reporting Act, as well as any other common law, federal, state, or local laws, statutes, or ordinances that can be released. Nothing in this Agreement shall be construed to prevent the Employee from participating in any charge of discrimination filed with the Equal Employment Opportunity Commission (“EEOC”) or similar state agency; provided, however, that by signing this Agreement, the Employee waives the right to recover any monetary damages or attorney fees from the Releasees in any claim or lawsuit brought by or through the 

Exhibit 10.25

EEOC or similar state agency. Furthermore, nothing in this Agreement prohibits the Employee from reporting alleged violations of federal law or regulation to any government agency or entity, including the Securities and Exchange Commission, or making other disclosures that are protected under whistleblower provisions of applicable law.  If the Employee brings an action or other claim against any of the Releasees in violation of this release, or otherwise materially breaches this Agreement, the Company or such other of the Releasees shall have the right to set off any and all damages to which it or any of the Releasees may be entitled against payments or other benefits due to the Employee under this Agreement and to recover from the Employee their attorneys’ fees and costs incurred in defending against such action or other claim. The Employee agrees that the Employee is the only person who is able to assert any right or claim arising out of the Employee’s employment with and separation from the Company. The Employee hereby promises that the Employee has not assigned, pledged, or otherwise sold any such rights or claims, nor has the Employee relied on any promises other than those expressly contained in this Agreement. The release of claims under this paragraph shall not apply to any claims that Employee may have or will have with respect to his vested benefits, ownership of stock, restricted stock, or stock options in the Company.  
7.Specific Waiver and Release under the Age Discrimination in Employment Act and the Older Workers’ Benefit Protection Act. The Employee further expressly and specifically waives any and all rights or claims under the ADEA and the OWBPA (collectively, the “Act”). Employee acknowledges and agrees that this waiver of any right or claim under the Act (the “Waiver”) is knowing and voluntary, and the Employee further specifically agrees and represents as follows: 
a)that this Agreement in its entirety, as well as, specifically, this Waiver, is written in a manner that the Employee understands; 
b)that this Waiver specifically relates to rights or claims under the Act; 
c)that the Employee does not waive any rights or claims under the Act that may arise after the Effective Date of this Agreement; 
d)that the Employee waives rights or claims under the Act in exchange for consideration in addition to anything of value to which the Employee is already entitled; and
e)that the Employee is hereby advised in writing to consult with an attorney prior to executing this Agreement, and that the Employee has been, or has had the opportunity to be, represented by counsel of his choosing at all times relevant herein.
8.No Known Violations.  The Employee agrees that he has or will, prior to signing and delivering this Agreement and in the twenty-one (21) day period after the Separation Date, disclose to the Company any and all matters, information, or concerns of any type whatsoever of which the Employee, in good faith, is currently aware regarding the Company’s actions, policies, practices, and/or procedures that the Employee believes constitute a violation of any law, rule, or regulation to the best of his knowledge.  All such disclosures shall be delivered to the Company’s General Counsel. Additionally, the Employee represents that he has not been prevented, prohibited, or in any manner restricted by the Company from making a full disclosure of any and all of his concerns regarding such matters to the Company.  The Company hereby represents that no member of the Board of Directors of the Company has actual knowledge as of the Separation Date of any acts or omissions by Employee that would constitute a violation or breach of any law, rule, or regulation in connection with Employee’s employment with the Company or of any contract between Employee and the Company.

Exhibit 10.25

9.Cooperation. The Parties agree that certain matters in which the Employee was and will be involved during his employment and prior to the Separation Date may necessitate the Executive’s cooperation or assistance in the future. Accordingly, following the later of the Separation Date or the expiration of the Independent Contractor Engagement, to the extent reasonably requested by the Board of Directors of the Company, the Employee shall cooperate with the Company in connection with any claims arising out of the Employee’s employment with the Company and his performance of services under the Independent Contractor Engagement including preparing for and providing truthful testimony; provided that, the Company shall make reasonable efforts to minimize disruption of the Employee’s other activities.  The Company shall reimburse the Employee for reasonable expenses incurred in connection with such cooperation and assistance and, to the extent that the Employee is required to spend more than 1 week on such matters, the Company shall compensate the Employee at an hourly rate of $270; provided, however, that the Employee shall not be entitled to such hourly compensation with respect to his time spent in connection with the defense of current shareholder litigation against the Company.  The Company shall issue Employee a Form 1099 for any such payments, as required by law. Any reimbursements or in-kind benefits due hereunder shall be provided such that the amount paid in one calendar year cannot affect the expenses eligible for reimbursement in another calendar year, shall be paid to Employee no later than the last day of the calendar year after the calendar year in which incurred and any right to reimbursement shall be subject to liquidation or exchange for another benefit. 
10.Restrictive Covenants.  Employee acknowledges and agrees that Employee remains subject to certain restrictive covenants including, but not limited to, those provided by the Non-Compete Agreement, and included in the Independent Contractor Agreement (“Restrictive Covenants”), which Restrictive Covenants are for the benefit of the Company and which Restrictive Covenants survive the termination of Employee’s employment as provided.  Employee is hereby advised that the Defend Trade Secrets Act of 2016 provides immunity from civil and criminal liability under state and federal trade secret laws for any employee who discloses a trade secret in a lawsuit or other proceeding filed under seal or who discloses a trade secret in confidence to a government official or an attorney for the sole purpose of reporting or investigating a suspected violation of law.
11.Indemnification and D&O Insurance.  The Company shall indemnify Employee against all claims related to actions arising prior to the Separation Date to the fullest extent permitted by Nevada law, and the Company shall continue to provide coverage under a Directors and Officers’ insurance policy for not less than 48 months following the Separation Date, substantially in the same terms of the Directors’ and Officers’ insurance policy in effect immediately before the Separation Date.  If Directors’ and Officers’ insurance is cancelled, the Company shall purchase tail coverage of Directors’ and Officers’ insurance to continue coverage for Employee for the entire 48-month period.  For the avoidance of doubt, the Company’s obligation to indemnify and provide Directors’ and Officers’ insurance shall include, but not be limited to, coverage for any pending lawsuits where Employee has been or will be named personally.
12.Binding Effect. This Agreement shall bind the Employee and the Employee’s heirs, executors, administrators, personal representatives, attorneys, dependents, successors, and assigns. Neither this Agreement, nor any right or interest hereunder shall be assignable by the Employee, the Employee’s beneficiaries, or legal representatives without the prior consent of the Company. 
13.Final Resolution. The Employee accepts the benefits of this Agreement as full compensation and resolution of any and all claims, as stated herein, including attorney fees, and covenants that the Employee shall not file suit to recover attorney fees or compensation in any form, except as specifically set forth this Agreement. 

Exhibit 10.25

14.Return of Property. The Employee affirms and warrants that the Employee has returned or will promptly return at such time requested by the Company to the Company all Company property in a satisfactory condition, including but not limited to, all keys, credit or access cards, equipment, documents, copies of documents, draft and final reports, materials, studies, disks, computers, and all Company information stored in any electronic form.  This paragraph shall not apply to Company property that Employee retains to perform services under the Independent Contractor Agreement; however, upon the termination of the Independent Contractor Agreement, Employee shall return all Company property, as set forth in the Independent Contractor Agreement.  
15.Entire Agreement. This Agreement, together with the Independent Contractor Agreement, the Amended Equity Awards and the Non-Compete Agreement, which are expressly incorporated herein, sets forth the entire agreement between the Parties and supersedes any and all prior agreements or understandings, oral or written, between the Parties. The terms of this Agreement may not be modified other than in a writing signed by both Parties.
16.Choice of Law and Forum. This Agreement shall in all respects be interpreted, enforced and governed under the laws of the State of Ohio (except with respect to the indemnity commitment in paragraph 11 above) without regard to conflict of laws principles that would require the application of any other law. Any dispute between Employee and the Company and/or any of the Releasees will be brought solely (i) in the federal district court located in Cincinnati, Ohio or (ii) if its subject matter jurisdiction requirements are not met, in the state courts located in or for Hamilton County, Ohio.   
17.Severability. Should any provision of this Agreement, or the application thereof, be held invalid or unenforceable by a court of competent jurisdiction, the invalid or unenforceable provision, to the extent possible, will be revised to adhere to the intentions of the Parties as valid or enforceable under the law, and the remainder of this Agreement shall not be affected and shall continue to be valid and enforceable to the fullest extent permitted by law or equity unless the invalid or unenforceable provisions result in a failure of consideration. 
18.Captions. Captions and headings of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.
19.Consideration and Revocation Periods. The Employee acknowledges that the Employee is hereby advised of the right to consider this Agreement for twenty-one (21) days prior to accepting it. Exclusively as this Agreement pertains to Employee’s release of claims under the ADEA and OWBPA, the Employee acknowledges that the Employee may revoke the acceptance of this Agreement within seven (7) days after the date of the Employee’s acceptance. Any revocation must be in writing, signed by the Employee, and: (a) postmarked within the seven (7) day revocation period; (b) scanned and emailed within the seven (7) day revocation period; or (c) noted “hand delivered” and physically delivered prior to the expiration of the seven (7) day revocation period.  Any revocation must be directed to the attention of the Board of Directors of the Company.  If the Employee revokes this Agreement as provided herein, the Company may, during the seven (7) day period following the Company’s receipt of Employee’s revocation, elect to accept only the revocation of the revocable portion and enforce the remainder. Otherwise, this Agreement shall be fully revoked. If the Employee does not revoke this Agreement, it shall be effective on the eighth (8th) day following the Employee’s execution hereof (the “Effective Date”), provided the Company has signed the Agreement, as well by that date.
20.Counterparts; Electronic Execution. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which, when 

Exhibit 10.25

taken together, shall constitute one and the same final Agreement. Signatures to this Agreement may be delivered by means of electronic transmission, and all such signatures so delivered shall be deemed to be original signatures for all purposes hereunder.
By signing this Agreement, the Employee agrees that this Agreement is written in a manner calculated to be understood by the Employee, that the Employee has carefully reviewed all of the terms and conditions of this Agreement, and that the Employee has had a reasonable period of time to consider this Agreement. By signing this Agreement, the Employee understands that the Employee has released all claims against the Company and its affiliates, including, without limitation, any and all claims for damages and payment of attorneys’ fees, except as specifically set forth in this Agreement. The Employee acknowledges that the consideration the Employee has received in connection with this Agreement is a benefit that the Employee is not otherwise entitled to. The Employee enters into this Agreement knowingly, voluntarily, without any coercion or undue influence of any kind, and after a full and fair opportunity to consult with counsel, if desired.  Similarly, the Company enters into this Agreement knowingly, voluntarily, without any coercion or undue influence of any kind, and after a full and fair opportunity to consult with its counsel.

IN WITNESS WHEREOF, the Parties have executed this EMPLOYMENT SEPARATION AGREEMENT AND RELEASE OF CLAIMS as of the date of Employee’s signature below.
						
	EMPLOYEE:
Duane Hughes
By:    /s/ Duane Hughes    
Name: Duane Hughes

Acceptance Date: August 1, 2021
	COMPANY:
Workhorse Group, Inc.
By:    /s/ Raymond Chess                                      
Name: Raymond Chess                               
Title:   Chairman of the Board of Directors

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