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Exhibit 10.19    
    

 
 

EMPLOYMENT AGREEMENT    
    

        THIS EMPLOYMENT AGREEMENT dated effective as of January 1, 2004, between Perficient, Inc. a Delaware corporation (the "Company"), and John T.
McDonald ("Employee"). 

WITNESSETH:  

        WHEREAS, the Company desires that Employee continue to be employed by it and render services to it, and Employee is willing to be so employed and to render such
services to the Company, all upon the terms and subject to the conditions contained herein. 

        NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows: 

        1.    EMPLOYMENT.    Subject to and upon the terms and conditions contained in this Agreement, the Company hereby
agrees to continue to employ Employee and Employee agrees to continue in the employ of the Company, for the period set forth in Paragraph 2 hereof, to render to the Company, its affiliates
and/or subsidiaries the services described in Paragraph 3 hereof. 

        2.    TERM.    Employee's term of employment under this Agreement shall be two years, commencing as of the date hereof
and continuing through and including December 31, 2005, unless extended in writing as provided below or earlier terminated pursuant to the terms and conditions set forth herein (the "Employment
Term"). 

        3.    DUTIES.    

        (a)   Employee
shall serve as Chairman and/or Chief Executive Officer of the Company. Employee shall perform all duties and services incident to the positions held by him. 

        (b)   Employee
agrees to abide by all By-laws and policies of the Company promulgated from time to time by the Company. 

        4.    BEST EFFORTS.    Employee agrees to devote his best efforts, energies and skill to the discharge of the duties
and responsibilities attributable to his position. 

        5.    COMPENSATION.    

        (a)   As
compensation for his services and covenants hereunder, Employee shall receive a salary ("Salary"), payable pursuant to the Company's normal payroll procedures in
place from time to time, at the rate of $225,000 per annum, less all necessary and required federal, state and local payroll deductions. Employee shall be entitled to have his salary increased to
$250,000 per annum, less all necessary and required federal, state and local payroll deductions, if the Company's net revenue per quarter equals or exceeds ten million dollars at any time following
January 1, 2004. Employee shall be entitled to receive additional salary increases as may be determined from time to time by the Board of Directors of the Company. 

        (b)   Employee
shall be entitled to a bonus equal to one-hundred percent (100%) of his Salary at plan, less all necessary and required federal, state and local
payroll deductions to be paid on January 15 following the year the bonus is accrued. The criteria for determining the amount of Employee's bonus, and the conditions to be satisfied for the
receipt thereof, shall be determined in a manner consistent with that used to date and agreed upon by the Board of Directors of the Company and Employee. 

        (c)   In
addition, Employee shall be entitled to receive such other bonuses as may be determined from time to time by the Board of Directors of the Company and shall be
eligible to receive stock options entitling Employee to acquire shares of Common Stock under the Company's 1999 Stock Option/Stock Issuance Plan, and successor plans, pursuant to the policies of the 

 

Company
from time to time to generally make available stock options, to executive employees. As further consideration for the agreements and covenants hereunder, the Company hereby grants to Employee
an option to purchase 150,000 shares of Common Stock of the Company, exercisable at the closing price of the Common Stock as of the date hereof, for each year of service hereunder (both such grants to
be made on the date hereof). Notwithstanding anything to the contrary in any stock option agreement between Employee and the Company, all stock options granted to Employee shall continue to vest in
accordance with their schedule and shall not terminate if Employee ceases to be an employee of the Company as long as Employee continues to serve as an officer, director or consultant of the Company. 

        6.    EXPENSES.    Employee shall be reimbursed for, and entitled to advances (subject to repayment to the Company if
not actually incurred by Employee) with respect to those business expenses incurred by him which are reasonable and necessary for Employee to perform his duties under this Agreement in accordance with
policies established from time to time by the Company. Employee shall receive reimbursement for other expenses consistent with past practice and as approved by the Compensation Committee of the Board
of Directors. 

        7.    EMPLOYEE BENEFITS.    

        (a)   During
the Employment Term and any severance period hereunder, Employee shall be entitled to such insurance, disability and health and medical benefits and be entitled
to participate in such retirement plans or programs as are from time to time generally made available to executive employees of the Company pursuant to the policies of the Company; PROVIDED THAT
Employee shall be required to comply with the conditions attendant to coverage by such plans and shall comply with and be entitled to benefits only in accordance with the terms and conditions of such
plans. The Company may withhold from any benefits payable to Employee all federal, state, local and other taxes and amounts as shall be permitted or required to be withheld pursuant to any applicable
law, rule or regulation. 

        (b)   Employee
shall be entitled to vacation in accordance with the Company's policy in effect for executive staff, which shall be taken at such time or times as shall be
mutually agreed upon with the Company. 

        8.    DEATH AND DISABILITY.    

        (a)   The
Employment Term shall terminate on the date of Employee's death, in which event Employee's Salary, reimbursable expenses and benefits owing to Employee through the
date of Employee's death shall be paid to his estate, plus a lump sum equal to two year's Salary. Employee's estate will not be
entitled to any other compensation upon termination of this Agreement pursuant to this subparagraph 8(a). 

        (b)   The
Employment term shall terminate upon Employee's Disability. For purposes of this Agreement, "Disability" shall mean a physical or mental disability or infirmity that
prevents the material performance by Employee of his duties hereunder lasting for a continuous period of six months or longer. The reasoned and good faith judgment of the Company's Board of Directors
as to Disability shall be based on such competent medical evidence as shall be presented to it by Employee or by any physician or group of physicians or other competent medical experts employed by
Employee or the Company to advise the Company's Board of Directors. In case of such termination, Employee shall be entitled to receive his Salary, reimbursable expenses and benefits owing to Employee
through the date of termination. In addition, the Company shall pay to Employee, within 60 days of the date of Employee's termination, in a lump-sum, an amount equal to Employee's
then annual Salary. Employee will not be entitled to any other compensation upon termination of his employment pursuant to this subparagraph 8(b). 

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        9.    TERMINATION.    

        (a)   The
Company shall have the right, upon delivery of written notice to the Employee, to terminate the Employee's employment hereunder prior to the expiration of the
Employment Term (i) pursuant to a Termination for Cause or (ii) pursuant to a Without Cause Termination (all as defined below). The Employee shall have the right, upon delivery of
written notice to the Company, to terminate his employment hereunder prior to the expiration of the Employment Term by providing the Company with not less than 30 days prior written notice. 

        (b)   In
the event that the Company terminates the Employee's employment pursuant to a Without Cause Termination (other than in connection with or following a Change in
Control (as defined below)), the Company shall make a payment to the Employee in an amount equal to two year's Salary, payable in installments through regular payroll, and shall pay Employee his
reimbursable expenses and benefits owing to Employee through the day on which Employee is terminated. Employee shall also be entitled to benefits during such period pursuant to Section 7 hereof
and the use of his office and administrative assistant. No other payments shall be made, or benefits provided, by the Company under this Agreement in the event of a Without Cause Termination. In the
event of a Without Cause termination, any and all options, agreements or rights to purchase securities of the Company granted to the Employee shall vest in their entirety, regardless of the
satisfaction of any conditions contained therein. 

        (c)   In
the event that the Company terminates the Employee's employment hereunder due to a Termination for Cause or the Employee terminates employment with the Company, the
Company shall be released from any and all further obligations under this Agreement, except that the Company shall
be obligated to pay Employee his Salary, reimbursable expenses and benefits owing to Employee through the day on which Employee is terminated. Employee will not be entitled to any other compensation
upon termination of this Agreement pursuant to this Paragraph 9(c). 

        (d)   For
purposes of this Agreement, the following terms have the following meanings: 

          (i)  The
term "Termination for Cause" means, to the maximum extent permitted by applicable law, a termination of the Employee's employment by the Company attributed to
(a) the repeated willful failure of Employee substantially to perform his duties hereunder (other than any such failure due to physical or mental illness) that has not been cured reasonably
promptly after a written demand for substantial performance is delivered to Employee by the Company's Board of Directors, which demand identifies the manner in which the Company's Board of Directors
believes that Employee has not substantially performed his duties hereunder; (b) conviction of, or entering a plea of nolo contendere to, a crime
that constitutes a felony; (c) Employee's engaging in conduct that is intentional or grossly negligent that results in material injury to the Company; or (d) the material breach by
Employee of any written covenant or agreement with the Company under this Agreement or otherwise, including, but not limited to, an agreement not to disclose any information pertaining to the Company
or not to compete with the Company, including (without limitation) the covenants and agreements contained in paragraph 11 hereof. 

         (ii)  The
term "Without Cause Termination" means a termination of the Employee's employment by the Company other than due to (a) a Termination for Cause,
(b) Disability, (c) the Employee's death, or (d) the expiration of this Agreement. 

        10.    CHANGE IN CONTROL—TERMINATION OF EMPLOYMENT AND COMPENSATION IN EVENT OF TERMINATION.    

        (a)   After
a Change in Control (as defined below) of the Company has occurred, if the Company (or any successor thereto) terminates Employee's employment with the Company, 

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pursuant
to a Without Cause Termination or a With Cause Termination, or if the Employee terminates his employment voluntarily, at any time after the Change in Control, Employee shall be entitled to
receive a lump-sum payment (the "Termination Compensation"), in cash, on the Termination Date, in an amount of two year's Salary and target bonus. In addition, and notwithstanding anything
contained in any other agreement, including any stock option agreement between the Company and the Employee, immediately prior to a Change of Control, any and all options, agreements or rights to
purchase securities of the Company granted to the Employee shall vest in their entirety, regardless of the satisfaction of any conditions contained therein. In addition, for a period of two years
following such Termination Date, Employee shall also be entitled to benefits pursuant to Section 7 hereof and the use of his office and administrative assistant. 

        (b)   For
purposes hereof, a "Change In Control" shall be deemed to have occurred if: (i) any "person" or "group" (as such terms are used in Sections 3(a)(9) and
13(d)(3) of the Securities Exchange Act of 1934, as amended (the "Act")) becomes a "beneficial owner" (as such term is used in Rule13d-3 promulgated under the Act), after the date hereof,
directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company's then outstanding securities; (ii) a change in "control" of the
Company (as the term "control" is defined in Rule 12b-2 under the act or any successor rule promulgated under the Act) shall have occurred; (iii) the stockholders of the
Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets; or (iv) the
stockholders of the Company approve a merger or consolidation of the Company with any other company, other than a merger or consolidation which would result in the combined voting power of the
Company's voting securities outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more
than 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation. Notwithstanding the foregoing, any
transaction involving a leveraged buyout or other acquisition of the Company which would otherwise constitute a Change in Control, in which Employee participates in the surviving or successor entity
(other than solely as an employee or consultant), shall not constitute a Change in Control. 

        11.    DISCLOSURE OF TRADE SECRETS AND OTHER PROPRIETARY INFORMATION; RESTRICTIVE COVENANTS.    

        (a)   Employee
acknowledges that he is bound by the terms of the Company's Confidentiality and Intellectual Property Agreement. 

        (b)   Employee
will not, during the term of this Agreement, directly or indirectly, as an employee, employer, consultant, agent, principal, partner, manager, stockholder,
officer, director, or in any other individual or representative capacity, engage in or participate in any business that is competitive with the business of the Company. The ownership by Employee of 5%
or less of the issued and outstanding shares of a class of securities which is traded on a national securities exchange or in the over-the-counter market, shall not cause
Employee to be deemed a shareholder under this subparagraph 11(b) or constitute a breach of this subparagraph 11(b). Notwithstanding the foregoing, the ownership by Beekman Ventures, Inc. or
any affiliate of Beekman Ventures, Inc. or any stockholder, officer, director or agent of Beekman Ventures, Inc. ("BV") in connection with the activities of BV as a venture capital firm,
and the services provided by Employee to BV in connection with, any investment in any private or public company shall not be deemed to be a breach of any of the provisions of this Agreement and of
this paragraph (b) of this Agreement. 

        (c)   Employee
will not, during the term of this Agreement and for a period of 24 months thereafter, directly or indirectly, work as an employee, employer, consultant,
agent, principal, partner, manager, stockholder, officer, director, or in any other individual or representative 

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capacity
for any person or entity who or which was competitive with the business of providing virtual professional services organizations to Internet service corporations during the term of Employee's
employment with the Company. The ownership by Employee of 5% or less of the issued and outstanding shares of a class of securities which is traded on a national securities exchange or in the
over-the-counter market, shall not cause Employee to be deemed a shareholder under this subparagraph 11(c) or constitute a breach of this subparagraph 11(c). Employee's
participation as a director or advisor in a company or other business enterprise in which BV has an interest shall not be deemed to be a violation of this Agreement. 

        (d)   Employee
will not, during the term of this Agreement and for a period of 24 months thereafter, on his behalf or on behalf of any other business enterprise,
directly or indirectly, under any circumstance other than at the direction and for the benefit of the Company, (i) solicit for employment any person employed by the Company or any of its
subsidiaries, or (ii) call on, solicit, or take away any person or entity who or which was a customer of the Company or any of its subsidiaries or affiliates during Employee's employment with
the Company for a business that is competitive with the business of providing virtual professional services organizations to Internet service corporations. Employee's participation as a director or
advisor in a company or other business enterprise in which BV has an interest shall not be deemed to be a violation of this Agreement. 

        (e)   It
is expressly agreed by Employee that the nature and scope of each of the provisions set forth above in this Paragraph 11 are reasonable and necessary. If, for
any reason, any aspect of the above provisions as it applies to Employee is determined by a court of competent jurisdiction to be unreasonable or unenforceable, the provisions shall only be modified
to the minimum extent required to make the provisions reasonable and/or enforceable, as the case may be. Employee acknowledges and agrees that his services are of unique character and expressly grants
to the Company or any subsidiary or affiliate of the Company or any successor of any of them, the right to enforce the above provisions through the use of all remedies available at law or in equity,
including, but not limited to, injunctive relief. 

        (f)    This
Paragraph 11 and Paragraphs 12 and 13 hereof (and Paragraphs 14 through 19 hereof as they may apply to such Paragraphs) shall survive the expiration or
termination of this Agreement for any reason. 

        12.    COMPANY PROPERTY.    

        (a)   Any
patents, inventions, discoveries, applications or processes designed, devised, planned, applied, created, discovered or invented by Employee in the course of
Employee's employment under this Agreement and which pertain to any aspect of the Company's or its subsidiaries' or affiliates' business as described above shall be the sole and absolute property of
the Company, and Employee shall promptly report the same to the Company and promptly execute any and all documents that may from time to time reasonably be requested by the Company to assure the
Company the full and complete ownership thereof. 

        (b)   All
records, files, lists, including computer generated lists, drawings, documents, equipment and similar items relating to the Company's business which Employee shall
prepare or receive from the Company shall remain the Company's sole and exclusive property. Upon termination of this Agreement, Employee shall promptly return to the Company all property of the
Company in his possession. Employee further represents that he will not copy or cause to be copied, print out or cause to be printed out any software, documents or other materials originating with or
belonging to the Company. Employee additionally represents that, upon termination of his employment with the Company, he will not retain in his possession any such software, documents or other
materials. 

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        13.    EQUITABLE RELIEF.    It is mutually understood and agreed that Employee's services are special, unique,
unusual, extraordinary and of an intellectual character giving them a peculiar value, the loss of which cannot be reasonably or adequately compensated in damages in an action at law. Accordingly, in
the event of any breach of this Agreement by Employee, including, but not limited to, the breach of any of the provisions of Paragraphs 11 or 12 hereof, the Company shall be entitled to equitable
relief by way of injunction or otherwise in addition to any damages which the Company may be entitled to recover. In addition, the Company shall be entitled to reimbursement from Employee, upon
request, of any and all reasonable attorneys' fees and expenses incurred by it in enforcing any term or provision of this Agreement. 

        14.    CONSENT TO TEXAS JURISDICTION AND VENUE.    The Employee hereby consents and agrees that state courts located
in Travis County, Texas and the United States District Court for the Western District of Texas each shall have personal jurisdiction and proper venue with respect to any dispute between the Employee
and the Company. In any dispute with the Company, the Employee will not raise, and hereby expressly waives, any objection or defense to any such jurisdiction as an inconvenient forum. 

        15.    NOTICE.    Except as otherwise expressly provided, any notice, request, demand or other communication permitted
or required to be given under this Agreement shall be in writing, shall be sent by one of the following means to the Employee at his address set forth on the signature page of this Agreement and to
the Company at its address set forth on the signature page of this Agreement, Attention: President (or to such other address as shall be designated hereunder by notice to the other parties and persons
receiving copies, effective upon actual receipt), and shall be deemed conclusively to have been given: (a) on the first business day following the day timely deposited with Federal Express
(or other equivalent national overnight courier) or United States Express Mail, with the cost of delivery prepaid or for the account of the sender; (b) on the fifth business day following the
day duly sent by certified or registered United States mail, postage prepaid and return receipt requested; or (c) when otherwise actually received by the addressee on a business day (or on the
next business day if received after the close of normal business hours or on any non-business day). 

        16.    INTERPRETATION; HEADINGS.    The parties acknowledge and agree that the terms and provisions of this Agreement
have been negotiated, shall be construed fairly as to all parties hereto, and shall not be construed in favor of or against any party. The section headings contained in this Agreement are for
reference purposes only and shall not affect the meaning or interpretation of this Agreement. 

        17.    SUCCESSORS AND ASSIGNS; ASSIGNMENT; INTENDED BENEFICIARIES.    Neither this Agreement, nor any of Employee's
rights, powers, duties or obligations hereunder, may be assigned by Employee. This Agreement shall be binding upon and inure to the benefit of Employee and his heirs and legal representatives and the
Company and its successors. Successors of the Company shall include, without limitation, any corporation or corporations acquiring, directly or indirectly, all or substantially all of the assets of
the Company, whether by merger, consolidation, purchase, lease or otherwise, and such successor shall thereafter be deemed "the Company" for the purpose hereof. 

        18.    NO WAIVER BY ACTION.    Any waiver or consent from the Company respecting any term or provision of this
Agreement or any other aspect of the Employee's conduct or employment shall be effective only in the specific instance and for the specific purpose for which given and shall not be deemed, regardless
of frequency given, to be a further or continuing waiver or consent. The failure or delay of the Company at any time or times to require performance of, or to exercise any of its powers, rights or
remedies with respect to, any term or provision of this Agreement or any other aspect of the Employee's conduct or employment in no manner (except as otherwise expressly provided herein) shall affect
the Company's right at a later time to enforce any such term or provision. 

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        19.    COUNTERPARTS; TEXAS GOVERNING LAW; AMENDMENTS; ENTIRE AGREEMENT.    This Agreement may be executed in two
counterpart copies, each of which may be executed by one of the parties hereto, but all of which, when taken together, shall constitute a single agreement binding upon all of the parties hereto. This
Agreement and all other aspects of the Employee's employment shall be governed by and construed in accordance with the applicable laws pertaining in the State of Texas (other than those that would
defer to the substantive laws of another jurisdiction). Each and every modification and amendment of this Agreement shall be in writing and signed by the parties hereto, and any waiver of, or consent
to any departure from, any term or provision of this Agreement shall be in writing and signed by each affected party hereto. This Agreement contains the entire agreement of the parties and supersedes
all prior representations, agreements and understandings, oral or otherwise, between the parties with respect to the matters contained herein. 

[Signature
page follows.] 

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

	 	 	PERFICIENT, INC.
	

 	
 	

By:	

 	
 	

 
	 	 	 	

	 	 	Name:	 	David Lundeen
	 	 	Title:	 	Director, Chairman of the Compensation Committee
	

          	
 	

 	

 	
 	

 
	

 	
 	

 John T. McDonald, Individually

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Exhibit 10.19

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Exhibit 10.18    
    

 
 

EMPLOYMENT AGREEMENT    
    

        This EMPLOYMENT AGREEMENT ("Agreement") made effective as of June 25, 2003 by and between Alternative Resources Corporation (the "Company") and Tracy Linne
(the "Executive"). 

        In
consideration of the mutual covenants contained in this Agreement, the parties hereby agree as follows: 

 
 

SECTION I
  EMPLOYMENT    
    

        The Company agrees to the continued employment of the Executive, and the Executive agrees to be employed by the Company for the Period of Employment as provided
in Section III A. below upon the terms and conditions provided in the Agreement. 

 
 

SECTION II
  POSITION AND RESPONSIBILITIES    
    

        During the Period of Employment, the Executive agrees to serve as Senior Sales Vice President, and to be responsible for the typical responsibilities expected of
an executive holding such positions and such other responsibilities consistent with such positions as may be assigned to the Executive from time to time by the Chief Executive Officer of the Company. 

 
 

SECTION III
  TERMS AND DUTIES    
    

	A.
	Period
of Employment 

The
term of Executive's employment under this Agreement will commence as of June 25, 2003, and shall continue through June 24, 2004 subject to extension or termination as provided in
this Agreement (the "Period of Employment"). The term shall be extended for an additional one-year period as of June 25, 2004 and as of each June 25 thereafter, unless either
party gives ninety (90) days prior notice of its intent not to extend. 

	B.
	Duties

During
the Period of Employment, the Executive shall devote all of her business time, attention and skill to the business and affairs of the Company and its subsidiaries. The Executive may
(i) participate in the affairs of any governmental, educational or other charitable institution, or engage in professional speaking and writing activities, so long as the Chief Executive
Officer does not determine, in good faith, that such activities unreasonably interfere with the business of the Company or diminish the Executive's obligations under the Agreement; or
(ii) serve as a member of the board of directors of other corporations, so long as the Board of Directors of the Company, in its discretion, specifically approves such service, and in any such
case, the Executive shall be entitled to retain all fees, royalties and other compensation derived from such activities in addition to the compensation and other benefits payable to her under the
Agreement; and provided further, that the Executive may invest her personal or family funds in any form or manner she may choose that will not require any services on her part in the operation of or
the affairs of the companies in which such investments are made. The Executive will perform faithfully the duties consistent with her position as Senior Sales Vice President, which may be assigned to
her from time to time by the Chief Executive Officer. 

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SECTION IV
  COMPENSATION AND BENEFITS    
    

	A.
	Base
Salary 

During
the Period of Employment, the Company agrees to pay the Executive a base salary ("Base Salary") of Two Hundred Dollars Thousand ($200,000.00).
Such Base Salary shall be payable according to the customary payroll practices of the Company but in no event less frequently than bi-weekly installments. The Executive may be eligible for
base salary increases as indicated by performance and/or market justification, solely at the discretion of the Chief Executive Officer and as approved by the Board of Directors. 

	B.
	Annual
Incentive Awards 

The
Executive will be eligible for annual incentive compensation awards during the Period of Employment. Executive incentive plans and individual eligibility for participation are specifically
approved by the Board of Directors of the Company according to and defined by the Company's normal executive compensation programs. Payment of any and all incentive awards are based upon the Company's
business performance and all awards are totally at the discretion of the Board of Directors and are not assumed to be a guaranteed component of the Executive's total compensation. 

For
the 2003 calendar year, the Executive shall be eligible to earn an incentive award of up to 70% of her pro-rated Base Salary for the period May 1, 2003 through
December 31, 2003. 

	C.
	Options

Options
that may be granted to the Executive before or during this period of employment shall be governed by the terms and provisions comparable to those applicable to options granted under the
Company's Stock Option Plan. Notwithstanding the foregoing, if (i) the Period of Employment ends because the Company ends the automatic extension thereof under Section III A. of this
Agreement; (ii) the Company terminates the employment of the Executive Without Cause as defined in Section VIII; (iii) the Executive's employment hereunder terminates because of
her death or disability (as defined in Section VI); or (iv) there is a change in control of the Company, such options shall become fully exercisable and shall remain exercisable for the
remainder of their term. 

For
purposes of this Agreement, a "change in control" of the Company shall be deemed to occur in connection with any of the following events with respect to the Company; 

	(i)
	The
acquisition by an entity, person or group (including all affiliates of such entity, person or group) of beneficial ownership, as that term is defined in
Rule 13d-3 under the Securities Exchange Act of 1934 (which definition shall apply even if the Company is not then subject to such Act), of capital stock of the Company entitled to
exercise more than 30% of the outstanding voting power of all capital stock of the Company ("Voting Stock");

	(ii)
	The
effective time of (i) a merger or consolidation of the Company with one or more other corporations as a result of which the holders of the outstanding Voting Stock
immediately prior to such merger or consolidation (other than the surviving or resulting corporation or any affiliate thereof) hold less than 50% of the Voting Stock of the surviving or resulting
corporation, or (ii) a transfer of more than 50% (in value) of the assets of the Company other than to a transferee in which the Company owns at least 50% of the Voting Stock; or 

2

 

	(iii)
	The
election to the Board of Directors of the Company of the lesser of (i) three directors or (ii) directors constituting a majority of the number of directors of the
Company then in office, without the recommendation of the existing Board of Directors.

	D.
	Additional
Benefits 

The
Executive will be entitled to participate in all compensation or employee benefit plans or programs and receive all benefits and perquisites for which any salaried executive employees are eligible
under any existing or future plan or program established by the Company for salaried executive employees. The Executive will participate to the extent permissible under the terms and provisions of
such plans or programs in accordance with plan or program provisions. These may include group hospitalization, health, dental care, life or other insurance, tax qualified pension, savings, thrift and
profit sharing plans, termination pay programs, sick leave plans, travel or accident insurance, short and long term disability insurance and contingent compensation plans including capital
accumulation programs, restricted stock programs, stock purchase programs and stock options plans. Nothing in this Agreement will preclude the Company from amending or terminating any of the plans or
programs applicable to salaried executive employees of the Company. Notwithstanding the foregoing sentence, no such amendment or termination shall reduce or otherwise adversely affect Executive's
rights under Section IV C. of this Agreement. 

In
addition to the foregoing benefits, Executive shall be entitled to a paid vacation of four (4) weeks during each twelve- (12) month period during the Period of Employment. 

 
 

SECTION V
  BUSINESS EXPENSES    
    

        The Company will reimburse the Executive for all reasonable travel and other expenses incurred by the Executive in connection with the performance of her duties
and responsibilities under this Agreement which shall specifically include such expenses incurred by Executive for business travel between her home office and Barrington, Illinois. Executive must
support all expenditures with customary receipts and expense reports subject to review by the Company. 

 
 

SECTION VI
  DISABILITY    
    

	A.
	Payments 

Executive's
employment hereunder may be terminated by the Company if (i) Executive becomes physically or mentally incapacitated, (ii) is unable for a period of one hundred eighty
(180) consecutive days to perform her material duties and responsibilities and (iii) a determination is made regarding Executive's continued incapacity by a physician appointed by the
Company (such continued incapacity is hereinafter referred to as "disability"). Upon any such termination for disability, Executive shall be entitled to receive (i) her Base Salary, as well as
the annual incentive award, prorated in each case through the date on which the Executive is first eligible to receive payment of long term disability benefits in lieu of Base Salary under the
Company's long term disability benefit plan as then in effect covering the Executive, and (ii) her accrued benefits under the terms of the plans, policies and procedures of the Company. 

	B.
	Assistance
To The Company 

During
the period the Executive is receiving payments of either regular compensation or disability insurance benefits described in this Agreement and as long as she is physically and mentally able to
do so, the Executive will furnish information and assistance to the Company and from time to 

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time
will make herself available to the Company with respect to area and matters in which she was involved during her employment with the Company. 

 
 

SECTION VII
  DEATH    
    

        In the event of the death of the Executive during the Period of Employment, (i) Executive's estate shall be entitled to receive her Base Salary, as well as
the annual incentive award, prorated in each case through that date of Executive's death, and (ii) Executive's designated beneficiary or estate, as the case may be, shall be entitled to her
accrued benefits, including, but not limit to, life insurance proceeds, under the terms of the plans, policies and procedures of the Company. 

 
 

SECTION VIII
  EFFECT OF TERMINATION OF EMPLOYMENT    
    

	A.
	Termination
Without Cause 

If
the Company terminates Executive's employment Without Cause during the Period of Employment, as defined in this Agreement, or the Period of Employment ends because the Company ends the automatic
extension thereof under Section III A. of this Agreement, the Company will pay to the Executive an amount equal to her annual Base Salary paid in twelve (12) equal monthly installments.
The Company will pay to the Executive in a lump sum any earned, prorated portion of the annual incentive award for the year in which the termination occurred and paid according to the normal incentive
award payment schedule. Earned but unpaid vacation pay will be paid in a lump sum at the time of such termination. The benefits and perquisites described in this Agreement as in effect at the date of
termination of employment will be continued for the then remaining Period of Employment. 

	B.
	Termination
With Cause 

If
the Company terminates Executive With Cause, (i) Executive shall be entitled to receive her Base Salary prorated through the date of the Executive's termination, and (ii) Executive
shall be entitled to her accrued benefits under the terms of the plans, policies and procedures of the Company. 

	C.
	Effect
of Certain Terminations 

Upon
termination of the Executive's employment for reasons other than due to death, disability or pursuant to Paragraph A of this Section, or upon Executive's resignation, the Period of
Employment
and the Company's obligation to make payments under this Agreement will cease as of the date of termination except as expressly defined in this Agreement. Executive shall have the right to voluntarily
terminate this Agreement, other than in conjunction with a Change in Control, upon two weeks' prior notice to the Company. If Executive voluntarily terminates her employment with the Company,
(i) Executive shall be entitled to receive her Base Salary prorated through the date of Executive's voluntary termination, and (ii) Executive shall be entitled to her accrued benefits
under the terms of the plans, policies and procedures of the Company. 

	D.
	Definitions

For
this Agreement, the following terms have the following meanings: 

	(1)
	Termination
"with cause" means termination of the Executive's employment by the Company's Chief Executive Officer acting in good faith by written notice by the Company to the
Executive specifying the event relied upon for such termination, due to the 

4

 

Executive's
serious, willful misconduct with respect to her duties under this Agreement, including, but not limited to, 

	(a.)
	conviction
for a felony or perpetration of a common law fraud, which has resulted or is likely to result in material economic damage to the Company;

	(b.)
	breach
of the Executives obligation to utilize her best efforts in performance of her duties or any other material term of this agreement which is not corrected to the Board's
satisfaction within ten business days of notification to the Executive;

	(c.)
	failure
to follow specific directions of the Board pertaining to Executive's duties under this Agreement.

	(2)
	Termination
"Without Cause" means termination by the Company of the Executive's employment other than due to death, disability, or termination With Cause. 

 
 

SECTION IX
  OTHER DUTIES OF THE EXECUTIVE DURING AND AFTER THE PERIOD OF EMPLOYMENT    
    

	A.
	Cooperation
During and After Employment 

The
Executive will, with reasonable notice during or after the Period of Employment, furnish information as may be in her possession and cooperate with the Company as may reasonably be requested in
connection with any claims or legal actions in which the Company is or may become a party. 

	B.
	Confidential
Information 

The
Executive recognizes and acknowledges that all information pertaining to the affairs, business, clients, customers or other relationships of the Company, as hereinafter defined, is confidential
and is a unique and valuable asset of the Company. Access to and knowledge of this information are essential to the performance of the Executive's duties under this Agreement. The Executive will not
during the Period of Employment or after, except to the extent reasonably necessary in performance of the duties under this Agreement, give to any person, firm, association, corporation or
governmental agency any information concerning the affairs, business, clients, customers or other relationships of the Company, except as required by law. The Executive will not make use of this type
of information for his own purposes or for the benefit of any person or organization other than the Company. The Executive will also use her best efforts to prevent the disclosure of this information
by others. All records, memoranda, etc. relating to the business of the Company, whether made by the Executive or otherwise coming into her possession are confidential and will remain the property of
the Company. 

	C.
	Certain
Restricted Activities 

During
the Period of Employment and for a one- (1) year period thereafter, the Executive will not use her status with the Company to obtain goods or services from another
organization other than in the ordinary course of business. During the Period of Employment and for a one (1) year period following termination of the Period of Employment: the Executive will
not make any statements or perform any acts intended to advance the interest of any existing or prospective competitors of the Company in any way that will injure the interest of the Company; the
Executive, without prior express written approval by the Board of Directors of the Company, will not directly or indirectly own or hold any proprietary interest in or be employed by or receive
compensation from any party engaged in the same or any similar business in the same geographic areas the Company does business; and the Executive, without express prior written approval from the Board
of Directors, will not solicit any members of the then current customers, clients or suppliers of the Company or discuss with any employee of the Company information or operation 

5

 

of
any business intended to compete with the Company. For the purposes of the Agreement, proprietary interest means legal or equitable ownership, whether through stock holdings or otherwise of a debt
or equity interest (including options, warrants, rights and convertible interest) in a business firm or entity, or ownership of more than 2% of any class of equity interest in a
publicly-held company. The Executive acknowledges that the covenants contained herein are reasonable as to geographic and temporal scope. For a twelve (12) month period after
termination of the Period of Employment for any reason, the Executive will not hire any employee of the Company or solicit, other than by means of a general solicitation to the public such as a
newspaper advertisement, or encourage any such employee to leave the employ of the Company. 

	D.
	Remedies

The
Executive acknowledges that her breach or threatened or attempted breach of any provision of Section IX would cause irreparable harm to the Company not compensable in monetary damages and
that the Company shall be entitled, in addition to all other applicable remedies, to a temporary and permanent injunction and a decree for specific performance of the terms of Section IX
without being required to prove damages or furnish any bond or other security. The Executive hereby acknowledges the necessity of protection against the competition of, and certain other possible
adverse actions by, the Executive and that the nature and scope of such protection has been carefully considered by the parties. The period provided and the area covered are expressly represented and
agreed to be fair, reasonable and necessary. If, however, any court or arbitrator determines that the restrictions described
herein are not reasonable, the court or arbitration panel may modify, rewrite or interpret such restrictions to include as much of their nature and scope as will render them enforceable. 

 
 

SECTION X
  INDEMNIFICATION, LITIGATION    
    

	A.
	Corporate
Indemnification and Insurance 

The
Company will indemnify the Executive to the fullest extent permitted by the laws of the Company whichever affords the greater protection to the Executive. The Company will use its best efforts to
obtain and maintain customary directors and officer liability insurance, covering Executive. The foregoing indemnification shall continue to apply following termination of the Period of Employment for
actions or omissions during the Period of Employment. 

	B.
	Limited
Indemnification for Breach of Covenants 

During
the Period of Employment, the Company will indemnify the Executive against any and all obligations to pay a judgment, settlement, penalty, fine, or reasonable expenses (including, without
limitation, counsel fees and retainers, court or arbitration costs, transcript costs, fees of experts or witnesses, travel expenses, and all other disbursements or expenses of the types customarily
incurred in connection with prosecuting, defending, preparing to prosecute or defend, being prepared to be a witness in, or otherwise participating in a proceeding (as defined below), including any
appeals), actually incurred with respect to any threatened, pending, or completed action, suit, or other proceeding, whether civil, criminal, administrative, arbitrative, or investigative (a
"proceeding"), to which the Executive is a party by reason of any alleged breach of restrictive covenant or violation of the terms or conditions of employment, written or oral, between Executive and
her former employer, alleged to arise from Executive's execution of this Agreement or performance of her obligations hereunder. Notwithstanding the foregoing, in no event shall the Company's aggregate
indemnification obligation pursuant to this Section X B exceed twenty five thousand dollars ($25,000.00). 

6

 
 
 

SECTION XI
  WITHHOLDING TAXES    
    

        The Company may directly or indirectly withhold from any payments under this Agreement all federal, state, city or other taxes that shall be required pursuant to
any law or governmental regulation. 

 
 

SECTION XII
  EFFECT OF PRIOR AGREEMENTS    
    

        This Agreement contains the entire understanding between the Company and the Executive with respect to the subject matter and supersedes any prior employment,
severance, or other similar agreements between the Company, its predecessors and its affiliates, and the Executive. 

 
 

SECTION XIII
  MODIFICATION    
    

        Subject to Section IV G., this Agreement may not be modified or amended except in writing signed by the parties. No term or condition of this Agreement
will be deemed to have been waived, except in writing by the party charged with waiver. A waiver shall operate only as to the specific term or
condition waived and will not constitute a waiver for the future or act on anything other than that which is specifically waived. 

 
 

SECTION XIV
  GOVERNING LAW; ARBITRATION    
    

        This Agreement and its validity, interpretation, performance and enforcement shall be governed by the laws of the State of Illinois, without giving effect to the
choice of law provisions thereof. Any dispute among the parties hereto shall be settled by arbitration in accordance with the then applicable rules of the American Arbitration Association and judgment
upon the award rendered may be entered in any court having jurisdiction thereof. 

 
 

SECTION XV
  NOTICES    
    

        All notices, requests, consents and other communications hereunder shall be in writing and shall be deemed to have been made when delivered or mailed first-class
postage prepaid by registered mail, return receipt requested, or when delivered if by hand, overnight delivery services or confirmed facsimile transmission to the following: 

	(a)
	If
to the Company, at: 

Alternative
Resources Corporation 600 Hart Road, Suite 300 Barrington, Illinois 60010 Attention: Chairperson, Governance Committee of Board of Directors 

Or
at such other address as may have been furnished to the Executive by the Company in writing, or 

	(b)
	If
to the Executive, at: 

8
Nason Rd.

Swampscott, MA 01907 

Or
such other address as may have been furnished to the Company by the Executive in writing. 

7

 
 
 

SECTION XVI
  BINDING AGREEMENT    
    

This
Agreement shall be binding on the parties' successors, heirs and assigns. 

 
 

SECTION XVII
  MISCELLANEOUS    
    

	A.
	Multiple
Counterparts 

This
Agreement may be executed simultaneously in multiple counterparts each of the same force and effect. 

	B.
	Severability

If
any phrase, clause or provision of this Agreement is declared invalid or unenforceable by an arbitrator or court of competent jurisdiction, such phrase, clause or provision shall be deemed severed
from this Agreement, but will not affect any other provisions of this Agreement, which shall otherwise remain in full force and effect. In addition, there will be automatically substituted herein for
such severed phrase clause or provision a phrase, clause or provision as similar as possible, which is valid and enforceable. 

	C.
	Headings

The
headings and subheadings of this Agreement are inserted for convenience of reference only and are not to be considered in construction of the provisions hereof. 

	D.
	Construction 

The
Company and the Executive acknowledge that this Agreement was the result of arm's-length negotiations between sophisticated parties each with full opportunity to consult with and be represented by
legal counsel. Each and every provision of this Agreement shall be construed as though both parties participated equally in the drafting of same, and any rule of construction that a document shall be
construed against the drafting party shall not be applicable to this Agreement. 

	E.
	Survivorship

The
provisions of Sections IV-XVII shall survive the termination or expiration of this Agreement. 

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

	 	 	COMPANY
	

 	
 	

ALTERNATIVE RESOUCES CORPORATION
	

 	
 	

BY:	
 	

/s/ ROBERT STANOJEV
Robert Stanojev, Chairman of the Board
	

 	
 	

and
	

 	
 	
EXECUTIVE
	

 	
 	

BY:	
 	

/s/ TRACY LINNE
 Tracy Linne

8

QuickLinks

Exhibit 10.18

EMPLOYMENT AGREEMENT

SECTION I EMPLOYMENT

SECTION II POSITION AND RESPONSIBILITIES

SECTION III TERMS AND DUTIES

SECTION IV COMPENSATION AND BENEFITS

SECTION V BUSINESS EXPENSES

SECTION VI DISABILITY

SECTION VII DEATH

SECTION VIII EFFECT OF TERMINATION OF EMPLOYMENT

SECTION IX OTHER DUTIES OF THE EXECUTIVE DURING AND AFTER THE PERIOD OF EMPLOYMENT

SECTION X INDEMNIFICATION, LITIGATION

SECTION XI WITHHOLDING TAXES

SECTION XII EFFECT OF PRIOR AGREEMENTS

SECTION XIII MODIFICATION

SECTION XIV GOVERNING LAW; ARBITRATION

SECTION XV NOTICES

SECTION XVI BINDING AGREEMENT

SECTION XVII MISCELLANEOUS

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