Document:

Exhibit 10 (b)

		
			Exhibit 10(b)
		

		
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			CONTRACT FOR SERVICES
		

		
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			This AGREEMENT made this  February 1, 2019 between WD-40 Company (“Client”) and Mike Freeman (“Contractor”).
		

		
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			ARTICLE 1. TERM OF CONTRACT
		

		
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			Section 1.01.  This agreement will become effective on February 1, 2019 and will continue in effect until July 31, 2019 unless terminated in accordance with the provisions of Article 7 of this agreement.
		

		
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			ARTICLE 2.  INDEPENDENT CONTRACTOR STATUS
		

		
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			Section 2.01.  It is the express intention of the parties that Contractor is an independent contractor and not an employee, agent, joint-venture or partner of Client.  Nothing in this agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between Client and Contractor or any employee or agent of Contractor.  Both parties acknowledge that Contractor is not an employee for state or federal tax purposes.  Contractor shall retain the right to perform services for others during the term of this agreement.
		

		
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			ARTICLE 3.  SERVICES TO BE PERFORMED BY CONTRACTOR
		

		
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			Specific Services
		

		
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			Section 3.01.  Contractor agrees to:
		

		
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			As requested by Client, provide advice and guidance as a consulting service to the Client related to projects and topics as the Client identifies, during the term of the retained services. 
		

		
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			Method of Performing Services
		

		
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			Section 3.02.  Contractor will determine the method, details, and means of performing the above-described services.  Client shall have no right to, and shall not, control the manner or determine the method of accomplishing Contractor’s services.
		

		
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			Employment of Assistants
		

		
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			Section 3.03.  Contractor may, at the Contractor’s own expense, employ such assistants as Contractor deems necessary to perform the services required of Contractor by this agreement.  Client may not control, direct, or supervise Contractor’s assistants or employees in the performance of those services.  Contractor assumes full and sole responsibility for the payment of all compensation and expenses of these assistants and for all state and federal income tax, unemployment insurance, Social Security, disability insurance and other applicable withholdings.
		

		
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			Place of Work
		

		
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			Section 3.04.  Contractor shall perform the services required by this agreement at any place or location and at such times as Contractor shall determine.  There will be a requirement from time to time for the Contractor to attend meetings at specific locations determined by the Client.
		

		
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			ARTICLE 4.  FEES FOR SERVICES
		

		
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			Section 4.01.  In consideration for the services to be performed by Contractor, Client agrees to pay Contractor a monthly retainer of $27,000, commencing February 1, 2019, and continuing through July, 2019, for a total of six (6) months of retained services.
		

		
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			Invoices
		

		
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			Section 4.02.  Contractor shall submit invoices on a monthly basis, at the beginning of each month.  
		

		
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			Date for Payment of Compensation
		

		
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			Section 4.03. Contractor’s invoices shall be paid by check or ACH, at the election of the Contractor, submitted monthly to Client’s designated party.  The representative and authorizing party of Client for these services is Garry Ridge, CEO.  No other Client party is authorized to engage Contractor for services related to this agreement.
		

		
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			Expenses
		

		
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			Section 4.04.  Contractor shall be responsible for all costs and expenses incident to the performance of services for Client, including but not limited to, all costs of equipment provided by Contractor, all fees, fines, licenses, bonds or taxes required of or imposed against Contractor and all other of Contractor’s costs of doing business.  Client shall be responsible for no expenses incurred by Contractor in performing services for Client, with the exception of pre-approved, reasonable costs of travel and lodging, should those be necessary in the conduct of services by Contractor.
		

		
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			ARTICLE 5.  OBLIGATIONS OF CONTRACTOR
		

		
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			Tools and Instrumentalities
		

		
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			Section 5.01.  Contractor will supply all tools and instrumentalities, equipment, and hardware required to perform the services under this agreement.  Contractor is not required to purchase or rent any tools, equipment or services from Client.
		

		
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			Workers’ Compensation
		

		
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			Section 5.02.  Contractor agrees to provide workers’ compensation insurance for Contractor’s employees and agents and agrees to hold harmless and indemnify Client for any and all claims arising out of any injury, disability, or death of any of Contractor’s employees or agents.
		

		
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			Indemnification of Liability
		

		
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			Section 5.03.  Contractor shall indemnify and hold Client harmless against any and all liability imposed or claimed, including attorney’s fees and other legal expenses, arising directly or indirectly from any act or failure of Contractor or Contractor’s assistants, employees or agents, including all claims relating to the injury or death of any person or damage to any property.  Contractor agrees to maintain a policy of insurance in the minimum amount of five hundred thousand dollars ($500,000) to cover any such claims.  Contractor shall provide Client with a copy of all certificates of insurance before providing any services for Client.
		

		
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		Assignment
		

		
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			Section 5.04.  Neither this agreement nor any duties or obligations under this agreement may be assigned by Contractor without the prior written consent of Client.
		

		
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			State and Federal Taxes
		

		
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			Section 5.05.  As contractor is not Client’s employee, Contractor is responsible for paying all required state and federal taxes.  In particular:
		

		
			*Client will not withhold FICA (Social Security) from Contractor’s payments;
		

		
			*Client will not make state or federal unemployment insurance contributions on Contractor’s behalf;
		

		
			*Client will not withhold state or federal income tax from payment to Contractor;
		

		
			*Client will not make disability insurance contributions on behalf of Contractor;
		

		
			*Client will not obtain workers’ compensation insurance on behalf of Contractor.
		

		
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			ARTICLE 6.  OBLIGATIONS OF CLIENT
		

		
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			Cooperation of Client
		

		
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			Section 6.01.  Client agrees to comply with all reasonable requests of Contractor (and provide access to all documents) necessary to the performance of Contractor’s duties under this agreement.
		

		
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			Assignment
		

		
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			Section 6.02.  Neither this agreement nor any duties or obligations under this agreement may be assigned by Client without the prior written consent of Contractor.
		

		
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			Section 6.03.  All work product created on behalf of Client in the course of Contractor providing services will be assigned to Client and will be deemed the intellectual property of Client.
		

		
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			ARTICLE 7.  TERMINATION OF AGREEMENT
		

		
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			Termination on Occurrence of Stated Events
		

		
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			Section 7.01.  This agreement shall terminate automatically on the occurrence of any of the following events:
		

		
			1.  Bankruptcy or insolvency of either party;
		

		
			2.  Sale of the business of either party;
		

		
			3.  Death of either party.
		

		
			4.  July 31, 2019
		

		
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			Termination by Client for Default of Contractor
		

		
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			Section 7.02.  Should Contractor default in the performance of this agreement or materially breach any of its provisions, Client at Client’s option, may terminate this agreement by giving written notification to Contractor.  For the purposes of this section, material breach of this agreement shall include, but not be limited to the following:
		

		
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			Failure to complete the assigned project elements within the agreed time frame, or provide the guidance required in the context of the scope of work approved.
		

		
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		Termination by Contractor for Default of Client
		

		
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			Section 7.03.  Should Client default in the performance of this agreement or materially breach any of its provisions, Contractor, at the Contractor’s option, may terminate this agreement by giving written notice to Client.  For the purposes of this section, material breach of this agreement shall include but not be limited to the following:
		

		
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			Failing to provide the support and good faith efforts to perform the Client’s responsibilities as outlined in the approved scope of work.
		

		
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			Termination for Failure to Make Agreed-Upon Payments
		

		
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			Section 7.04.  Should Client fail to pay Contractor all or any part of the compensation set forth in Article 4 of this agreement on the date due, Contractor, at the Contractor’s option, may terminate this agreement if the failure is not remedied by Client within thirty (30) days from the date payment is due.
		

		
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			ARTICLE 8. CLIENT’S TRADE SECRETS;
		

		
			NON-SOLICITATION OF CLIENT’S CUSTOMERS
		

		
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			Definitions
		

		
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			Section 8.01.   For the purposes of this Agreement, the following definitions are established:
		

		
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			(a)“Trade Secret” is defined as the whole or any part or phrase of any customer list or related customer information, financial data, design, process, procedure, formula, improvement, or invention, which (i) is known to Client, (ii) Client considers confidential, and (iii) gives one who uses it an advantage over competitors who do not know of or use it.  In addition to information belonging to Client, information furnished to Client by third parties can be a Trade Secret.
		

		
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			(b)“Confidential Information” is defined as all items, materials and information (whether or not reduced to writing and whether or not patentable or copyrightable), which belong to Client or have been confidentially provided to Client by its customers or other third parties and which are related to (i) the present and future business endeavors of Client, or (ii) the research and development or investigations of Client, and which are kept confidential and secret by Client.  Confidential information includes, among other things: customer data; customer lists; customer account information; sales records; invoices; information contained in customer files and information provided by customers pertaining to those customers; Trade Secrets; financial information, data or statements; the existence and contents of agreements;  existing and future product plans, designs, and performance specifications; marketing plans, strategies or schematics; the fees Client obtains or has obtained for the provision  of services, or the sale of products; and computer data, documentation, algorithms, process and know-how.
		

		
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			Non-Disclosure of Trade Secrets or Confidential Information
		

		
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			Section 8.02.
		

		
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			(a)Contractor acknowledges that Confidential Information is a valuable and unique asset of Client or third parties who have furnished it to Client.  Contractor understands that Confidential Information will only be made known to Contractor in confidence in connection with the performance of the services contemplated by this Agreement.  Contractor agrees that disclosure or use of Confidential Information by Contractor other than for the sole benefit of Client is wrongful and would cause irreparable harm to Client.  If Contractor is in doubt as to whether any particular information is Confidential Information, Contractor will treat such information as Confidential Information.
		

		
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		(b)Contractor agrees that Contractor will not disclose or use Confidential Information for any purpose other than in the performance the services contemplated under this Agreement.  This obligation extends during the entire term of this Agreement, and forever after the date of termination of the Agreement.
		

		
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			(c)Contractor agrees that Contractor will use all reasonable measures to prevent the unauthorized use of Confidential Information by others.  These measures include strict compliance with all procedures developed by Client to protect such information.
		

		
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			Ownership of Confidential Information: Return of Materials
		

		
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			Section 8.03.  Contractor agrees that all Confidential Information, including that which is produced by Client, all materials embodying Confidential Information, and all copies thereof, will remain the property of Client or of the third party who has furnished it to Client.  At the termination of this Agreement, or upon the written request of Client at any time, Contractor will immediately deliver to Client all materials, and copies thereof, which are in Contractor’s possession or control and which contain or are related in any way to any Confidential Information.
		

		
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			Customer Secrecy and Non-Solicitation
		

		
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			Section 8.04.  Client’s life-blood is its customer database.  This proprietary customer information has been collected over a significant amount of time and at great effort and expense.  This information is among the most highly confidential proprietary information of Client.  It is considered a Trade Secret of Client.
		

		
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			Accordingly, in order to ensure the protection of these Trade Secrets, it is agreed that the Contractor will not, without the express written consent of Client's President, for a period of  two years immediately following termination of this Agreement and/or any relationship between Contractor and Client, whichever occurs later, for any reason, either directly or indirectly call upon, solicit, or attempt to solicit, any customers, business or patrons of Client upon whom Contractor called or whom Contractor serviced or solicited or with whom Contractor became acquainted as a result of its relationship with Client, and/or the services provided pursuant to this Agreement.
		

		
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			Remedy for Breach
		

		
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			Section 8.05.  Contractor acknowledges that Contractor’s breach of the obligations under this Agreement cannot be reasonably or adequately compensated in damages in an action at law.  If Contractor breaches or threatens to breach any provision of this Agreement, Client shall be entitled to an injunction, without bond, restraining Contractor from committing such breach. Client’s right to an injunction shall not limit its right to any other remedies, including damages.
		

		
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			ARTICLE 9.  GENERAL PROVISIONS
		

		
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			Notices
		

		
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			Section 9.01.  Any notices to be given hereunder by either party to the other may be affected either by personal delivery in writing or by mail, registered or certified, postage prepared with return receipt requested.  Mailed notices shall be addressed to the parties at the addresses appearing in the introductory paragraph of this agreement, but each party may change the address by written notice in accordance with this paragraph.  Notices delivered personally will be deemed communicated as of actual receipt; mailed notices will be deemed communicated as of two days after mailing.
		

		
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			Entire Agreement of the Parties
		

		
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			Section 9.02.  This agreement supersedes any and all agreement, either oral or written, between the parties hereto with respect to the rendering of services by Contractor for Client and contains all the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever.  Each party to this agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement, or promise not contained in this agreement shall be valid or binding.  Any modification of this agreement will be effective only if it is in writing signed by the party to be charged.
		

		
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			Partial Invalidity
		

		
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			Section 9.03.  If any provision in this agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.
		

		
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			Attorney’s Fees
		

		
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			Section 9.04.  If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this agreement, the prevailing party will be entitled to reasonable attorneys’ fees, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which that party may be entitled.
		

		
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			Governing Law
		

		
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			Section 9.05.  This agreement will be governed by and construed in accordance with the laws of the State of California.
		

		
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			Executed at San Diego, California, on the date and year first above written.
		

		
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						Contractor:

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						WD-40 Company:

				
	
					
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						Michael Freeman

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
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						By

					
					
						 

					
					
						/s/ MICHAEL L. FREEMAN

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						/s/ GARRY O. RIDGE

				
	
					
						 

					
					
						 

					
					
						Mike Freeman

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						Garry Ridge

				
	
					
						Title:

					
					
						 

					
					
						Chief Strategy Officer

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						CEO

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			﻿Exhibit 10.1

 

 

[Date]

 

[Employee Name]

[Address 1]

[Address 2]

 

Re: Retention/Stay Bonus

 

Dear [Employee Name]:

 

As you know, Iteris, Inc.  (“Iteris”) is acquiring 100% of the issued and outstanding shares of capital stock of your employer, Albeck Gerken, Inc. (“AGI”). We consider your continued service and dedication to AGI essential to our plans for AGI. To incentivize you to remain employed with AGI, we are pleased to offer you a retention bonus,  as described in this letter agreement. In consideration of your continued service with AGI through and until the third anniversary of the completion of the sale of AGI to Iteris (the “Retention Period”), we are offering you a retention bonus in the amount of [$XX] payable in Restricted Stock ([XX] Units) at the price of [$XX] per Unit as defined by the Stock Purchase Agreement (the “Retention Bonus”), which will be provided to you, less all applicable withholdings and deductions required by law, on the next regularly scheduled pay dates following the first, second, and third anniversaries of the date of this letter agreement (each, an “Anniversary Date”).

 

You will be eligible to receive the applicable installment of the Retention Bonus if all of the following eligibility criteria are satisfied on each Anniversary Date:

 

1.              You are actively employed by Iteris or AGI on the applicable Anniversary Date.

 

2.              You have not given notice of your intent to resign from employment on or before the applicable Anniversary Date.

 

3.              Iteris or AGI has not given you notice of its intent to terminate your employment for Cause on or before the applicable Anniversary Date.

 

If you are eligible to receive the Retention Bonus on an applicable Anniversary Date, an installment of one-third of the Retention Bonus will be paid to you in the next regularly scheduled pay date following the applicable Anniversary Date.

 

In addition, if your employment is terminated by Iteris or AGI prior to the  termination  of  the Retention Period other than for Cause (as defined below), you will be  entitled to  receive the  balance of any unpaid Retention Bonus set forth above on the next regularly scheduled pay date, subject to your continuing compliance with your post-closing obligations set forth in the Stock Purchase Agreement dated June 10, 2019, including those relating to confidentiality, non-competition and non- solicitation.

 

 

 

For purposes of this letter, “Cause” shall mean (i) your willful or continuing failure to perform, or willful or continuing neglect in the performance of your material duties, which, if capable of cure, is not effectively cured by you within five days after written notice by  Iteris is received by you; (ii)  your material violation of a policy or code of conduct applicable to employees of Iteris or AGI, provided that if they conflict those of Iteris will be the relevant policy or code; (iii)  your material breach of any  post- closing obligations set forth in the Stock Purchase Agreement, including those relating to confidentiality, non-disparagement, non- competition and non-solicitation, or (iv) your conviction of a felony or a crime involving moral turpitude.

 

Your employment remains at-will, meaning that you and Iteris or AGI (as applicable) may terminate the employment relationship at any time, with or without cause. This letter agreement is intended to comply with, or be exempt from, Section 409A of the Internal Revenue Code of 1986, as amended (Section 409A) and shall be construed and administered in accordance with Section 409A.

 

This letter agreement contains all of the understandings and representations between Iteris and AGI, on the one hand, and you relating to the retention bonus, and supersedes all prior and contemporaneous understandings, discussions, agreements, representations, and warranties, both written and oral, with respect to any retention bonus; provided, however, that this letter agreement shall not supersede your offer letter dated July 2, 2019 which shall remain in full force and effect. This letter agreement may not be amended or modified unless in writing signed by both you and the Chief Executive Officer of Iteris.

 

This letter agreement and all related documents, and all matters arising out of or relating to this letter agreement, whether arising in contract, tort, or statute, are governed by, and construed in accordance with, the laws of the State of Florida, including its statutes of limitations, without giving effect to the conflict of laws provisions thereof, to the extent such principles or rules would require or permit the application of the laws of any other jurisdiction or state. This letter agreement and any controversy hereunder is subject to a mandatory arbitration clause as set forth in the Arbitration Agreement.

 

Please sign and date this letter agreement and return the signed copy to [Iteris Contact Name] by June 28, 2019. [Iteris Contact Name] email address is [Iteris Contact Email] and [his/her] mailing address is 1700 Carnegie Avenue, Suite 100, Santa Ana, CA 92705-5551.

 

We look forward to your continued employment with us.

 

Sincerely,

 

Iteris, Inc.

 

 

Joe Bergera, CEO

 

Agreed to and accepted by:

 

	
 
    	
 
    	
 
    
	
[Employee Name]
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
cc: Sr. Vice President, Human Resources

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