Document:

ingn-ex101_6.htm

 

Exhibit 10.1

 

TRANSITION AGREEMENT AND RELEASE

This Transition Agreement and Release (“Agreement”) is made by and between Matthew Scribner (“Employee”) and Inogen, Inc. (the “Company”) (collectively referred to as the “Parties” or individually referred to as a “Party”).

WHEREAS, Employee has been employed at-will by the Company pursuant to that certain Amended and Restated Employment Agreement dated October 1, 2013 (the “Employment Agreement”);

WHEREAS, Employee has most recently served as the Company’s Executive Vice President of Operations;

WHEREAS, Employee signed an At-Will Employment, Confidential Information, Invention Assignment, and Arbitration Agreement with the Company on January 16, 2017 (the “Confidentiality Agreement”);

WHEREAS, the Company previously granted Employee certain Company equity awards to acquire shares of the Company’s common stock that remain outstanding as set forth on Schedule A hereto (the “Equity Awards”), subject to the terms and conditions of the applicable Company equity incentive plans  and the corresponding equity grant agreements (collectively, the “Stock Agreements”);

WHEREAS, the Parties have mutually agreed that Employee will resign as Executive Vice President of Operations, with such resignation intended to be effective no later than September 17, 2018 (the “Resignation Date”);

WHEREAS, the Parties desire for Employee to continue at-will employment with the Company, including in a transitional role following the Resignation Date pursuant to the terms of this Agreement, with such transitional employment ending no later than January 2, 2019 (such actual final day of Employee’s employment with the Company, whether January 2, 2019 or earlier, the “Termination Date”); and

WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that the Employee may have against the Company and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of or in any way related to Employee’s employment with or separation from the Company;

NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Employee hereby agree as follows:

COVENANTS

1.Consideration.  In consideration of (i) Employee’s execution of this Agreement and the Supplemental Release attached hereto as Exhibit 1 and (ii) Employee’s fulfillment of all its and their terms and conditions, as applicable; and further provided that Employee does not revoke the Agreement or the Supplemental Release as provided below, the Company agrees as follows:

a.Supplemental Release.  In exchange for the separation benefits as set forth in this Section 1 and any continued employment and related pay and benefits from the date hereof and into the Transition Period (as defined below), Employee agrees to execute, within twenty-one (21) days after the Termination Date, a Supplemental Release Agreement in the form attached hereto as Exhibit 1 (the “Supplemental Release”), which will bridge the gap and cover the time period from the Effective Date of this Agreement through the Supplemental Release Effective Date (as defined in the Supplemental Release); 

 

 

provided, however, that the Parties agree to modify the Supplemental Release to comply with any new laws that may become applicable.  Employee’s failure to timely execute the Supplemental Release shall be deemed to constitute a failure to comply with the material terms and conditions of this Agreement. 

b.Salary Continuation.  Subject to Section 1(f)(iii) below, the Company agrees to pay Employee a total of Three Hundred and Three Thousand Dollars ($303,000.00), at the rate of Eleven-Thousand Six Hundred Fifty Three Dollars and Eighty-Five Cents ($11,653.85) per bi-weekly pay period, less applicable withholdings, for one (1) year beginning on the later of (i) the Company’s first regular payroll date that occurs on or after the sixtieth (60th) day following the Termination Date or (ii) the Company’s first regular payroll date that occurs at least ten (10) business days following the Supplemental Release Effective Date (as defined in the Supplemental Release attached hereto as Exhibit 1).  

c.COBRA Reimbursement.  Subject to Section 1(f)(iii) below, the Company shall reimburse Employee for the premium payments Employee makes for healthcare coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), less the amount that Employee was required to pay for Company-sponsored healthcare premiums as of the Termination Date, for a period of up to eighteen (18) months, or until Employee is eligible for health insurance coverage through another employer, whichever occurs first, provided Employee timely elects and pays and remains eligible for continuation coverage pursuant to COBRA, within the time period prescribed pursuant to COBRA.  COBRA reimbursements shall be made by the Company to Employee consistent with the Company’s normal expense reimbursement policy, provided that Employee submits documentation to the Company substantiating Employee’s payments for COBRA coverage. Notwithstanding the preceding, if the Company determines in its sole discretion that it cannot provide COBRA reimbursement benefits without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company will instead provide the Employee a taxable payment in an amount equal to the monthly COBRA premium that Employee would be required to pay to continue Employee’s group health coverage in effect on the date of termination of employment (which amount will be based on the premium for the first month of COBRA coverage), less the amount that Employee was required to pay for Company-sponsored healthcare premiums as of the Termination Date, which payments will be made regardless of whether the Employee elects or continues to remain eligible for COBRA continuation coverage and will commence in the month following the month of the Termination Date and continue for eighteen (18) months following the Termination Date.

d.2018 Bonus Opportunity.  Regardless of when the Termination Date occurs, but subject to Section 1(f)(iii) below, the Company shall pay to Employee the full achieved amount of Employee’s Annual Bonus (as defined in the Employment Agreement) corresponding to fiscal year 2018 (the “2018 Bonus”), which shall range from Zero Dollars ($0) to no more than Two Hundred and Forty-Two Thousand Four Hundred Dollars ($242,400.00), depending on achievement of Company financial targets as established in the Company’s Management Incentive Plan, as determined in the Company’s discretion.  The 2018 Bonus will be paid, less applicable withholdings, on or after such date that annual bonuses are paid to other senior executives of the Company, but not later than March 15, 2019.  

e.Cash Bonus.  Subject to Section 1(f)(iii) below, Employee will receive a lump sum cash payment equal to the aggregate value of the shares of the Company’s common stock subject to any Company performance-based equity award held by Executive as of the Termination Date that otherwise would have vested based on actual achievement of the applicable performance metrics for 2018 as determined by the Company’s compensation, nominating, and governance committee  of its board of directors (the “Committee”) had Employee remain employed with the Company through the “Vesting Date” (as defined in the applicable award agreement) that immediately follows the Committee’s certification of the 2018 performance metrics (the “Additional Bonus”).  The Additional Bonus will be paid, less applicable withholding, within 10 business days of the date the Committee certifies the achievement of the 2018 performance metrics, but not later than March 15, 2019.

 

 

f.Transition Period. 

i.The Company agrees to allow Employee to remain employed with the Company on an at-will basis as a transitional employee through the Transition Period (as defined below).  Employee acknowledges that the Company agrees to continue to employ Employee on such basis no later than January 2, 2019 (the period between September 17, 2018 and the Termination Date, the “Transition Period”).  Employee acknowledges that his employment with the Company, if it does not end earlier, will terminate on January 2, 2019.  During the Transition Period, Employee will perform transition services as reasonably requested by the Company, including, but not limited to, assisting with the transition of his duties to other Company personnel, including any relevant replacement, and answering questions related thereto, as well as other duties relating to his prior role with and transition out of the Company.  The Company will continue to pay Employee’s current base salary as in effect August 27, 2018, until the Termination Date, less applicable withholdings, payable in accordance with the Company’s regular payroll practices, and Employee’s other benefits shall remain in force and effect during the Transition Period, except as required by the Company’s applicable policies and plans. 

ii.In the event that the Company were to terminate Employee’s employment before or during the Transition Period without Cause (as defined in the Employment Agreement), then the effective date of that separation will constitute the Termination Date, and all of the severance benefits above will be triggered, subject to the terms and conditions in this Transition Agreement, including the obligation to sign the Supplemental Release.

iii.In the event that the Company were to terminate Employee’s employment before or during the Transition Period with Cause (as defined in the Employment Agreement) or if Employee were to resign before or during the Transition Period (other than a mutually agreed to resignation), then the Employee would not be entitled to the severance benefits set forth under this Section 1, but still agrees to sign and abide by the Supplemental Release as set forth above.  

g.At-Will Employment.  Employee will remain an at-will employee through the Transition Period, meaning either he or the Company may terminate his employment at any time throughout the Transition Period for any reason or no reason, with or without notice. Employee will be entitled to continued salary payments and benefits only through the actual Termination Date and no later.  Employee agrees to resign from employment with the Company effective immediately upon commencing other employment.

h.General.  Employee acknowledges that without this Agreement and, as applicable, the Supplemental Release, Employee is otherwise not entitled to the consideration listed in this Section 1.  Employee further specifically acknowledges and agrees that the consideration provided to Employee hereunder fully satisfies any obligation that the Company would have had to pay Employee severance pursuant to the Employment Agreement or any other agreement with the Company.  Further, as set forth above, Employee understands and agrees that if he is terminated for Cause (as defined in the Employment Agreement) or if Employee were to resign (other than a mutually agreed to resignation), he will not be entitled to the severance benefits set forth under this Section 1.

2.Resignation as Officer, Director, and Manager.  Employee represents and warrants that he has resigned as an officer of the Company and all subsidiaries effective as of the Resignation Date, by submitting to the Company’s Board of Directors a signed notice of resignation in the form attached hereto as Exhibit 2.

3.Stock.  The Parties agree that vesting of the Equity Awards will continue only until the Termination Date in accordance with the terms and conditions of the Stock Agreements, and any unvested shares subject to the Equity Awards immediately will revert to the Plan on that date, including all shares subject to performance-based Equity Awards.  The exercise of Employee’s vested options shall continue to 

 

 

be governed by the terms and conditions of the Stock Agreements and, if not exercised within the time period set forth in the applicable Stock Agreements, the shares subject to such vested options will be forfeited.  

4.Benefits.  Employee’s health insurance benefits shall cease on the last day of the month in which the Termination Date occurs, subject to Employee’s right to continue Employee’s health insurance under COBRA.  Employee’s participation in all benefits and incidents of employment, including, but not limited to, vesting in stock options, and the accrual of bonuses, vacation, and paid time off, will have ceased as of the Termination Date.

5.Payment of Salary and Receipt of All Benefits.  Employee acknowledges and represents that, other than the consideration set forth in this Agreement, the Company and its agents have paid or provided all salary, wages, bonuses, accrued vacation/paid time off, notice periods, premiums, leaves, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting, and any and all other benefits and compensation due to Employee.  Except as set forth in Section 27 below, Employee acknowledges that this Agreement and the Supplemental Release fully supersedes and replaces the Employment Agreement, and that Employee is not entitled to any of the severance benefits thereunder.

6.Release of Claims.  Employee agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to Employee by the Company and its current and former officers, directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, insurers, trustees, divisions, and subsidiaries, and predecessor and successor corporations and assigns (collectively, the “Releasees”).  Employee, on Employee’s own behalf and on behalf of Employee’s respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Employee may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the Effective Date of this Agreement, including, without limitation:

a.any and all claims relating to or arising from Employee’s employment relationship with the Company and the termination of that relationship, including any claims under the Employment Agreement; 

b.any and all claims relating to, or arising from, Employee’s right to purchase, or actual purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law;

c.any and all claims under the law of any jurisdiction, including, but not limited to, wrongful discharge of employment; constructive discharge from employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits;

d.any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Equal Pay Act, the Fair Labor Standards Act, the Fair Credit Reporting Act, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the Employee Retirement Income Security Act of 1974, the Worker Adjustment and 

 

 

Retraining Notification Act, the Family and Medical Leave Act, the Immigration Reform and Control Act, the National Labor Relations Act, the California Family Rights Act, the California Labor Code, the California Workers’ Compensation Act, and the California Fair Employment and Housing Act;

e.any and all claims for violation of the federal or any state constitution;

f.any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;

g.any claim for any loss, cost, damage, or expense arising out of any dispute over the nonwithholding or other tax treatment of any of the proceeds received by Employee as a result of this Agreement; and

h.any and all claims for attorneys’ fees and costs.

Employee agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released. This release does not extend to any obligations incurred under this Agreement. This release does not release claims that cannot be released as a matter of law, including any Protected Activity (as defined below). Any and all disputed wage claims that are released herein shall be subject to binding arbitration in accordance with Section 19, except as required by applicable law. This release does not extend to any right Employee may have to unemployment compensation benefits or workers’ compensation benefits.

7.Acknowledgment of Waiver of Claims under ADEA.  Employee understands and acknowledges that Employee is waiving and releasing any rights Employee may have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary.  Employee understands and agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective Date of this Agreement.  Employee understands and acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Employee was already entitled.  Employee further understands and acknowledges that Employee has been advised by this writing that: (a) Employee should consult with an attorney prior to executing this Agreement; (b) Employee has twenty-one (21) days within which to consider this Agreement; (c) Employee has seven (7) days following Employee’s execution of this Agreement to revoke this Agreement; (d) this Agreement shall not be effective until after the revocation period has expired; and (e) nothing in this Agreement prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law.  In the event Employee signs this Agreement and returns it to the Company in less than the 21-day period identified above, Employee hereby acknowledges that Employee has freely and voluntarily chosen to waive the time period allotted for considering this Agreement.  Employee acknowledges and understands that revocation must be accomplished by a written notification to the person executing this Agreement on the Company’s behalf that is received prior to the Effective Date.  The Parties agree that changes, whether material or immaterial, do not restart the running of the 21-day period.

8.Unknown Claims.  Employee acknowledges that Employee has been advised to consult with legal counsel and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

 

Employee, being aware of said code section, agrees to expressly waive any rights Employee may have thereunder, as well as under any other statute or common law principles of similar effect.

9.No Pending or Future Lawsuits.  Employee represents that Employee has no lawsuits, claims, or actions pending in Employee’s name, or on behalf of any other person or entity, against the Company or any of the other Releasees.  Employee also represents that Employee does not intend to bring any claims on Employee’s own behalf or on behalf of any other person or entity against the Company or any of the other Releasees.

10.Application for Employment.  Employee understands and agrees that, as a condition of this Agreement, Employee shall not be entitled to any employment with the Company, and Employee hereby waives any right, or alleged right, of employment or re-employment with the Company.  

11.Cooperation.  Employee agrees to provide reasonable cooperation and assistance with the Company in connection with the defense or prosecution of any claim that may be made against or by the Company, any subpoena that may be issued to or by the Company, or any ongoing or future investigation or dispute or claim of any kind involving the Company, including any proceeding before any arbitral, administrative, judicial, legislative, or other body or agency, including testifying in any proceeding to the extent such claims, investigations or proceedings relate to services performed or required to be performed by Employee, pertinent knowledge possessed by Employee, or any act or omission by Employee.  Employee will also perform all acts and execute and deliver any documents that may be reasonably necessary to carry out the provisions of this Section.  Employee also agrees to provide reasonable cooperation and assistance to the Company in the resolution of any matters in which Employee was involved during the course of his employment with the Company or about which he has personal knowledge.  Employee understands and agrees that Employee is not entitled to additional compensation, beyond the severance benefits under Section 1, for providing the limited cooperation and transition assistance set forth herein. 

12.Trade Secrets and Confidential Information/Company Property.  Employee reaffirms and agrees to observe and abide by the terms of the Confidentiality Agreement, specifically including the provisions therein regarding nondisclosure of the Company’s trade secrets and confidential and proprietary information, and non-solicitation of the Company’s employees.  Employee agrees that the above reaffirmation and agreement with the Confidentiality Agreement shall constitute a new and separately enforceable agreement to abide by the terms of the Confidentiality Agreement, entered and effective as of the Effective Date.  Employee specifically acknowledges and agrees that any violation of the restrictive covenants in the Confidentiality Agreement shall constitute a material breach of this Agreement.  Employee’s signature below constitutes Employee’s certification under penalty of perjury that Employee has returned all documents and other items provided to Employee by the Company, developed or obtained by Employee in connection with Employee’s employment with the Company, or otherwise belonging to the Company, including, but not limited to, all passwords to any software or other programs or data that Employee used in performing services for the Company (collectively, “Company Property”), except as specifically authorized by the Company as necessary for Employee’s employment during the Transition Period (and, to the extent so authorized, Employee agrees to return all Company Property to the Company immediately upon the Termination Date). Nothing in this Section 12 or the Confidentiality Agreement shall be interpreted to limit Employee’s rights under Section 22 below.

13.No Cooperation.  Subject to Section 22 below governing Protected Activity, Employee agrees that Employee will not knowingly encourage, counsel, or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to do so or as related directly to the ADEA waiver in this Agreement.  Employee agrees both to immediately notify the Company upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order.  If approached by anyone for counsel or assistance in the 

 

 

presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints against any of the Releasees, Employee shall state no more than that Employee cannot provide counsel or assistance.

14.Nondisparagement.  Subject to Section 22 below governing Protected Activity, Employee agrees to refrain from any disparagement, defamation, libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees.  Employee shall direct any inquiries by potential future employers to the Company’s human resources department, which shall use its best efforts to provide only the Employee’s last position and dates of employment.

15.Breach.  In addition to the rights provided in the “Attorneys’ Fees” section below, Employee acknowledges and agrees that any material breach of this Agreement or the Supplemental Release by Employee, unless such breach constitutes a legal action by Employee challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, or of any provision of the Confidentiality Agreement shall entitle the Company immediately to recover and/or cease providing the consideration provided to Employee under this Agreement and/or the Supplemental Release to the maximum extent permitted by law, and to obtain damages, except as provided by law; provided, however, that the Company shall not recover One Hundred Dollars ($100) of the consideration already paid pursuant to this Agreement, and such amount shall serve as full and complete consideration for the promises and obligations assumed by Employee, and any services performed by Employee, under this Agreement, the Supplemental Release, and the Confidentiality Agreement.

16.No Admission of Liability.  Employee understands and acknowledges that this Agreement and the Supplemental Release each constitute a compromise and settlement of any and all actual or potential disputed claims by Employee.  No action taken by the Company hereto, either previously or in connection with this Agreement or the Supplemental Release, shall be deemed or construed to be (a) an admission of the truth or falsity of any actual or potential claims or (b) an acknowledgment or admission by the Company of any fault or liability whatsoever to Employee or to any third party.

17.Nonsolicitation.  Employee agrees that for a period of twelve (12) months immediately following the Effective Date of this Agreement, Employee shall not directly or indirectly solicit any of the Company’s employees to leave their employment at the Company.

18.Costs.  The Parties shall each bear their own costs, attorneys’ fees, and other fees incurred in connection with the preparation of this Agreement and the Supplemental Release.

19.ARBITRATION.  EXCEPT AS PROHIBITED BY LAW, THE PARTIES AGREE THAT ANY AND ALL DISPUTES ARISING OUT OF THE TERMS OF THIS AGREEMENT, THEIR INTERPRETATION, EMPLOYEE’S EMPLOYMENT WITH THE COMPANY OR THE TERMS THEREOF, OR ANY OF THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT TO ARBITRATION UNDER THE FEDERAL ARBITRATION ACT (THE “FAA”) AND THAT THE FAA, INCLUDING ITS PROCEDURAL PROVISIONS FOR COMPELLING ARBITRATION, SHALL GOVERN AND APPLY TO THIS ARBITRATION AGREEMENT (INCLUDING COMPELLING ARBITRATION IN STATE OR FEDERAL COURT) WITH FULL FORCE AND EFFECT. YOU AGREE THAT, TO THE FULLEST EXTENT PERMITTED BY LAW, YOU MAY BRING ANY SUCH ARBITRATION PROCEEDING ONLY IN YOUR INDIVIDUAL CAPACITY. ANY ARBITRATION WILL OCCUR IN SANTA BARBARA COUNTY, CALIFORNIA, BEFORE JAMS, PURSUANT TO ITS EMPLOYMENT ARBITRATION RULES & PROCEDURES (“JAMS RULES”), EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION. THE PARTIES AGREE THAT THE ARBITRATOR SHALL HAVE THE POWER TO DECIDE ANY MOTIONS BROUGHT BY ANY PARTY TO THE ARBITRATION, INCLUDING MOTIONS FOR SUMMARY JUDGMENT AND/OR ADJUDICATION, AND MOTIONS TO DISMISS AND DEMURRERS, APPLYING THE STANDARDS SET FORTH UNDER THE CALIFORNIA CODE OF CIVIL PROCEDURE. THE PARTIES AGREE THAT THE ARBITRATOR SHALL ISSUE A WRITTEN DECISION ON THE MERITS. THE PARTIES ALSO 

 

 

AGREE THAT THE ARBITRATOR SHALL HAVE THE POWER TO AWARD ANY REMEDIES AVAILABLE UNDER APPLICABLE LAW, AND THAT THE ARBITRATOR MAY AWARD ATTORNEYS’ FEES AND COSTS TO THE PREVAILING PARTY, WHERE PERMITTED BY APPLICABLE LAW.  THE ARBITRATOR MAY GRANT INJUNCTIONS AND OTHER RELIEF IN SUCH DISPUTES. THE DECISION OF THE ARBITRATOR SHALL BE FINAL, CONCLUSIVE, AND BINDING ON THE PARTIES TO THE ARBITRATION. THE PARTIES AGREE THAT THE PREVAILING PARTY IN ANY ARBITRATION SHALL BE ENTITLED TO INJUNCTIVE RELIEF IN ANY COURT OF COMPETENT JURISDICTION TO ENFORCE THE ARBITRATION AWARD. I UNDERSTAND THAT THE PARTIES TO THE ARBITRATION SHALL EACH PAY AN EQUAL SHARE OF THE COSTS AND EXPENSES OF SUCH ARBITRATION, AND EACH PARTY SHALL SEPARATELY PAY FOR ITS RESPECTIVE COUNSEL FEES AND EXPENSES; PROVIDED, HOWEVER, THAT THE ARBITRATOR MAY AWARD ATTORNEYS’ FEES AND COSTS TO THE PREVAILING PARTY, EXCEPT AS PROHIBITED BY LAW.  THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW BY A JUDGE OR JURY. NOTWITHSTANDING THE FOREGOING, THIS SECTION WILL NOT PREVENT EITHER PARTY FROM SEEKING INJUNCTIVE RELIEF (OR ANY OTHER PROVISIONAL REMEDY) FROM ANY COURT HAVING JURISDICTION OVER THE PARTIES AND THE SUBJECT MATTER OF THEIR DISPUTE RELATING TO THIS AGREEMENT AND THE AGREEMENTS INCORPORATED HEREIN BY REFERENCE. SHOULD ANY PART OF THE ARBITRATION AGREEMENT CONTAINED IN THIS SECTION CONFLICT WITH ANY OTHER ARBITRATION AGREEMENT BETWEEN THE PARTIES, THE PARTIES AGREE THAT THIS ARBITRATION AGREEMENT IN THIS SECTION SHALL GOVERN.

20.Tax Consequences.  The Company makes no representations or warranties with respect to the tax consequences of the payments and any other consideration provided to Employee or made on Employee’s behalf under the terms of this Agreement.  Employee agrees and understands that Employee is responsible for payment, if any, of local, state, and/or federal taxes on the payments and any other consideration provided hereunder by the Company and any penalties or assessments thereon.  Employee further agrees to indemnify and hold the Releasees harmless from any claims, demands, deficiencies, penalties, interest, assessments, executions, judgments, or recoveries by any government agency against the Company for any amounts claimed due on account of (a) Employee’s failure to pay or delayed payment of, federal or state taxes, or (b) damages sustained by the Company by reason of any such claims, including attorneys’ fees and costs.

21.Authority.  The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement.  Employee represents and warrants that Employee has the capacity to act on Employee’s own behalf and on behalf of all who might claim through Employee to bind them to the terms and conditions of this Agreement and the Supplemental Release.  Each Party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein.

22.Protected Activity Not Prohibited.  Employee understands that nothing in this Agreement or in the Supplemental Release shall in any way limit or prohibit Employee from engaging in any Protected Activity. For purposes of this Agreement, “Protected Activity” shall mean filing a charge, complaint, or report with, or otherwise communicating, cooperating, or participating in any investigation or proceeding that may be conducted by, any federal, state or local government agency or commission, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, and the National Labor Relations Board (“Government Agencies”). Employee understands that in connection with such Protected Activity, Employee is permitted to disclose documents or other information as permitted by law, and without giving notice to, or receiving authorization from, the Company. Notwithstanding the foregoing, Employee agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company confidential 

 

 

information under the Confidentiality Agreement to any parties other than the Government Agencies. Employee further understands that “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications or attorney work product. Any language in the Confidentiality Agreement regarding Employee’s right to engage in Protected Activity that conflicts with, or is contrary to, this paragraph is superseded by this Agreement. In addition, pursuant to the Defend Trade Secrets Act of 2016, Employee is notified that an individual will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (a) is made in confidence to a federal, state, or local government official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made under seal. In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the individual’s attorney and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.  Finally, nothing in this Agreement or in the Supplemental Release constitutes a waiver of any rights Employee may have under the Sarbanes-Oxley Act or Section 7 of the National Labor Relations Act.

23.No Representations.  Employee represents that Employee has had an opportunity to consult with an attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement.  Employee has not relied upon any representations or statements made by the Company that are not specifically set forth in this Agreement.

24.Section 409A.  It is intended that this Agreement comply with, or be exempt from, Code Section 409A and the final regulations and official guidance thereunder (“Section 409A”) and any ambiguities herein will be interpreted to so comply and/or be exempt from Section 409A. Each payment and benefit to be paid or provided under this Agreement is intended to constitute a series of separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.  The Company and Employee will work together in good faith to consider either (i) amendments to this Agreement; or (ii) revisions to this Agreement with respect to the payment of any awards, which are necessary or appropriate to avoid imposition of any additional tax or income recognition prior to the actual payment to Employee under Section 409A. In no event will the Releasees reimburse Employee for any taxes that may be imposed on Employee as a result of Section 409A.

25.Severability.  In the event that any provision or any portion of any provision hereof or in the Supplemental Release, or any surviving agreement made a part hereof or thereof, becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement and the Supplemental Release, as applicable, shall continue in full force and effect without said provision or portion of provision.

26.Attorneys’ Fees.  Except with regard to a legal action challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, in the event that either Party brings an action to enforce or effect its rights under this Agreement and/or in the Supplemental Release, the prevailing Party shall be entitled to recover its costs and expenses, including the costs of mediation, arbitration, litigation, court fees, and reasonable attorneys’ fees incurred in connection with such an action.

27.Entire Agreement.  This Agreement together with the Supplemental Release represents the entire agreement and understanding between the Company and Employee concerning the subject matter of this Agreement and the Supplemental Release, as applicable, and Employee’s employment with and separation from the Company and the events leading thereto and associated therewith, and supersedes and replaces any and all prior agreements and understandings concerning the subject matter of this Agreement and Employee’s relationship with the Company, including the Employment Agreement, but with the exception of the Confidentiality Agreement, the Stock Agreements, that certain October 11, 2013 Indemnification Agreement between the Company and Employee, Section 22 of the Employment Agreement, and the definition of “Cause” in the Employment Agreement. 

 

 

28.No Oral Modification.  This Agreement and the Supplemental Release may only be amended in a writing signed by Employee and the Company’s Chief Executive Officer.

29.Governing Law.  This Agreement and the Supplemental Release shall be governed by the laws of the State of California, without regard for choice-of-law provisions.  Employee consents to personal and exclusive jurisdiction and venue in the State of California.

30.Effective Date.  Employee understands that this Agreement shall be null and void if not executed by Employee within the twenty-one (21) day period set forth under Section 6 above.  Each Party has seven (7) days after that Party signs this Agreement to revoke it.  This Agreement will become effective on the eighth (8th) day after Employee signed this Agreement, so long as it has been signed by the Parties and has not been revoked by either Party before that date (the “Effective Date”).

31.Counterparts.  This Agreement and the Supplemental Release may be executed in counterparts and by facsimile, and each counterpart and facsimile shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned.

32.Voluntary Execution of Agreement.  Employee understands and agrees that Employee executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of Employee’s claims against the Company and any of the other Releasees.  Employee acknowledges that:

(a)Employee has read this Agreement;

	
 
	
(b)
	
Employee has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of Employee’s own choice or has elected not to retain legal counsel;

	
 
	
(c)
	
Employee understands the terms and consequences of this Agreement and of the releases it contains; and

	
 
	
(d)
	
Employee is fully aware of the legal and binding effect of this Agreement.

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

 

	
 
	
 
	
 
	
MATTHEW SCRIBNER, an individual

	
 
	
 
	
 
	
 
	
 

	
Dated:
	
September 14, 2018
	
 
	
/s/ Matthew Scribner

	
 
	
 
	
 
	
Matthew Scribner

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
INOGEN, INC.

	
 
	
 
	
 
	
 
	
 

	
Dated:
	
September 14, 2018
	
 
	
By:
	
/s/ Scott Wilkinson

	
 
	
 
	
 
	
 
	
Scott Wilkinson

	
 
	
 
	
 
	
 
	
President & CEO

 

 

 

 

 

Schedule A

SUMMARY OF OUTSTANDING EQUITY AWARDS

	
Date of Grant
	
Type of Grant
	
Number of Unvested Shares as of 9/17/2018 

(assuming continued employment through such date)
	
Number of Shares Vested and Exercisable as of 9/17/2018 

(assuming continued employment through such date)
	
Number of Unvested Shares as of 1/2/2019 (assuming continued employment through such date) 
	
Number of Shares Vested and Exercisable as of 1/2/2019 (assuming continued employment through such date)
	
Exercise Price per Share

	
March 28, 2012
	
Incentive Stock Options
	
0
	
5,6831
	
0
	
02
	
$ 0.81

	
Oct. 10, 2013
	
Incentive Stock Options
	
0
	
33,547
	
0
	
33,2303
	
$ 8.37

	
April 1, 2014
	
Incentive Stock Options
	
0
	
9,904
	
0
	
9,904
	
$ 16.62

	
May 15, 2015
	
Incentive Stock Options
	
2,594
	
742
	
1,552
	
1,784
	
$ 38.54

	
May 12, 2016
	
Incentive Stock Options
	
2,262
	
0
	
2,262
	
0
	
$ 44.19

	
April 1, 2014
	
Nonqualified Stock Options
	
0
	
41,626
	
0
	
41,626
	
$ 16.62 

	
May 15, 2014
	
Nonqualified Stock Options
	
5,740
	
40,924
	
2,615
	
44,049
	
$ 38.54

	
May 12, 2016
	
Nonqualified Stock Options
	
18,752
	
29,166
	
14,405
	
33,333
	
$ 44.19

	
May 11, 2017
	
Restricted Stock Award -PB
	
1,420
	
0
	
1,420
	
0
	
n/a

	
May 11, 2017
	
Restricted Stock Award -TB
	
1,5984
	
0
	
1,4655
	
0
	
n/a

	
March 2, 2018
	
Restricted Stock Award -PB
	
921
	
0
	
921
	
0
	
n/a

	
March 2, 2018
	
Restricted Stock Award -TB
	
614
	
0
	
614
	
0
	
n/a

	
	 

	
1 
	
 The 2,000 shares scheduled for sale on 9/17/2018 have been pre-deducted from this number. 

	
2 
	
 The 2,000 shares scheduled for sale on 9/17/2018, 10/16/2018, 11/19/2018 and 1,683 shares scheduled for sale on 12/18/2018have been pre-deducted from this number.

	
3 
	
 The 317 shares scheduled for sale on shares scheduled for sale on 12/18/2018 have been pre-deducted from this number.

	
4 
	
 This assumes 533 shares vesting on 9/1/2018 have been issued and pre-deducted from this number. 

	
5 
	
 This assumes 533 shares vesting on 9/1/2018 and 133 shares vesting on 12/1/2018 have been issued and pre-deducted from this number.

 

 

Exhibit 1

SUPPLEMENTAL RELEASE AGREEMENT

This Supplemental Release Agreement (“Supplemental Release”) is made by and between Matthew Scribner (“Employee”) and Inogen, Inc. (the “Company”) (jointly referred to as the “Parties” and individually referred to as a “Party”).

1.Consideration; Acknowledgment of Receipt of All Compensation.  In consideration for the severance payments and benefits in Section 1 of the Transition Agreement and Release, to which this Supplemental Release was attached as an exhibit (the “Transition Agreement”), including, without limitation, any continued employment and related pay and benefits before and/or during the Transition Period (as defined in the Transition Agreement) and other good and valuable consideration, the sufficiency of which the Parties have agreed to, Employee hereby extends his release and waiver of claims in Sections 6, 7, and 8 of the Transition Agreement to any claims that may have arisen between the Effective Date (as such term is defined in the Transition Agreement) and the Supplemental Release Effective Date, as defined below.  Employee acknowledges and represents that, other than the consideration set forth in Sections 1(b) through 1(e) of the Transition Agreement, the Company has paid or provided all salary, wages, bonuses, accrued vacation/paid time off, premiums, leaves, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting, and any and all other benefits and compensation due to Employee.

2.Incorporation of Terms of Transition Agreement.  The undersigned Parties further acknowledge that the terms of the Transition Agreement shall apply to this Supplemental Release and are incorporated herein to the extent that they are not inconsistent with the express terms of this Supplemental Release.

3.Return of Property.  Employee’s signature below constitutes Employee’s certification under penalty of perjury that Employee has returned all documents and other items provided to Employee by the Company, developed or obtained by Employee in connection with Employee’s employment with the Company, or otherwise belonging to the Company (whether physical, electronic, or otherwise), including but not limited to any computer, laptop, tablet, mobile phone, or other device; remote access device; security badge or other access device or mechanism; hard drive, thumb drive, or other storage device; garage pass; or any other hardware, software, or other item of Company property, as well as all passwords to any software or other programs or data that Employee used in performing services for the Company; and Employee further certifies that Employee has searched all of his physical and electronic property for Company property and information and that Employee has not retained, and has returned to the Company, any Company property or information (including any electronic or archival copies that may be incidentally retained).

4.Supplemental Release Effective Date. Employee understands that this Agreement shall be null and void if not executed by Employee within twenty-one (21) days following the Termination Date (as defined in the Transition Agreement).  Employee shall have seven (7) days after he signs this Agreement to revoke it. This Supplemental Release will become effective on the eighth (8th) day after Employee signs this Supplemental Release (the “Supplemental Release Effective Date”), so long as the Transition Agreement and the Supplemental Release have both been signed by the Parties and neither has been revoked by either Party before that date.  The Company will provide Employee with the consideration provided by Section 1 of the Transition Agreement in accordance with the terms of that agreement. 

 

 

5.Voluntary Execution of Agreement. Employee understands and agrees that he executed this Supplemental Release voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of his claims against the Company and any of the other Releasees.  Employee acknowledges that:

(a)he has read this Supplemental Release;

	
 
	
(c)
	
he has been represented in the preparation, negotiation, and execution of this Supplemental Release by legal counsel of his own choice or has elected not to retain legal counsel;

	
 
	
(d)
	
he understands the terms and consequences of this Supplemental Release and of the releases it contains; and

	
 
	
(e)
	
he is fully aware of the legal and binding effect of this Supplemental Release.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

 

	
 
	
 
	
 
	
Matthew Scribner, an individual

	
 
	
 
	
 
	
 
	
 

	
Dated:
	
 
	
 
	
 

	
 
	
 
	
 
	
Matthew Scribner

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Inogen, Inc.

	
 
	
 
	
 
	
 
	
 

	
Dated:
	
 
	
 
	
By:
	
 

	
 
	
 
	
 
	
 
	
Scott Wilkinson

	
 
	
 
	
 
	
 
	
President & CEO

 

 

 

 

 

Exhibit 2

RESIGNATION LETTER

September 17, 2018

To the Board of Directors Inogen, Inc.:

I hereby resign as the Executive Vice President of Operations of Inogen, Inc. (the “Company”) and as an officer of any subsidiaries of the Company effective as of September 17, 2018 (the “Resignation Date”). Following the Resignation Date, I will cease to represent myself as an officer or executive of the Company, will not perform any managerial duties on behalf of the Company, and will cease to be a signatory for, and to otherwise obligate, the Company.

I also agree to execute any necessary documents or other forms necessary to effectuate or document my resignation as a matter of local, state, federal or international law.

Yours Truly,

 /s/ Matthew Scribner

Matthew Scribnerexecutiveemploymentagree

                                                                   EXECUTIVE EMPLOYMENT AGREEMENT      This Employment Agreement (“2018 Employment Agreement” or “Agreement”) is between Patrick   Beharelle (“Executive”) and TrueBlue, Inc. or a TrueBlue, Inc. subsidiary, affiliate, related business   entity, successor, or assign (collectively “TrueBlue” or “Company”) and is effective as of September 18,   2018.       RECITALS               WHEREAS, Executive and the Company have previously entered the following agreements  related to Executive’s employment by the Company: (i) an Executive Employment Agreement effective  as of June 30, 2014 (the “2014 Employment Agreement”), (ii) a “Non-Competition Agreement” effective   June 30, 2014 (the “2014 Non-Competition Agreement”), (iii) an “Indemnification Agreement” effective   June 30, 2014 (the “Indemnification Agreement”), and (iv) a “Change-in-Control Agreement” effective   June 30, 2014 (the “Change-in-Control Agreement”); and           WHEREAS, Executive and the Company desire to replace in its entirety the 2014 Employment  Agreement with this 2018 Employment Agreement, effective as of the date hereof, in connection with  Executive’s appointment as the Company’s Chief Executive Officer; and          WHEREAS, Executive and the Company are simultaneously (i) amending the 2014 Non-  Competition Agreement (the “Amended Non-Competition Agreement”) in connection with Executive’s   appointment as Chief Executive Officer and in consideration for the additional compensation   contemplated by this Agreement, including the promotional equity award and increased severance   protection noted herein; and (ii) amending the Change-in-Control Agreement to reflect Executive’s  appointment as Chief Executive Officer; and          WHEREAS, the terms of the Indemnification Agreement shall remain in effect in accordance  with its terms and is not being modified at this time;           NOW, THEREFORE, in consideration of the terms and conditions herein, the parties agree that  this 2018 Employment Agreement hereby supersedes and replaces in its entirety the 2014 Employment  Agreement and is subject to the following terms and conditions:   I. TERM, POSITION AND COMPENSATION.   A.    Term; Employment At-Will.   Notwithstanding any other provision of this Agreement to the  contrary, Executive’s employment is at-will, and either Executive or the Company may terminate this  Agreement and/or Executive’s related employment by the Company at any time and for any reason,  subject to the notice and (if applicable) severance provisions set forth in Section II below. This 2018  Employment Agreement begins on the date hereof and shall remain in effect until terminated as set forth  herein (“Term”).   B.    Position and Duties.  During the Term, Executive shall serve as the Chief Executive Officer of  the Company (“CEO”), and Executive shall report to the Company’s Board of Directors (the “Board”).  In  such position, Executive shall have such duties and authority as shall be determined from time to time by  the Board and such duties and authorities shall be commensurate with Executive’s position. During the  Term, Executive shall devote Executive’s full business time and attention to the performance of     Employment Agreement              - 1 -   501791504 v7  

 

 Executive’s duties hereunder and shall not engage in any other business, profession, or occupation for   compensation or otherwise which would conflict or interfere with the rendition of such services either   directly or indirectly, without the prior written consent of the Board; provided that, nothing herein shall   preclude Executive from (i) being involved in not-for-profit, civic, or charitable activities, or  (ii) managing his personal and family passive investments; provided, further that, in each case, and in the   aggregate, such activities shall not materially conflict or materially interfere with the performance of   Executive’s duties hereunder or conflict with Executive’s duties and obligations under the Amended Non-  Competition Agreement.    C.   Compensation.                  1.    Base Salary.  Beginning effective September 1, 2018, Executive shall receive a salary in  the gross amount in accordance with the terms and conditions of the offer letter (“Offer Letter”) attached  hereto as Exhibit A which shall be on file with Company’s Human Resources department.  The  Compensation Committee of the Board shall annually review Executive’s salary and may increase, but  not decrease Executive’s rate of salary, other than as part of an across-the-board salary reduction  generally imposed of employees of the Company.                2.    Bonus and Equity Awards.  Executive shall be eligible for an annual bonus, a  promotional equity award, and future equity awards in accordance with the terms and conditions of the  Offer Letter.  The bonus plan and all aspects of bonus compensation with respect to the Executive may be  changed at the discretion of the Compensation Committee of the Board.                3.    Benefits.  Executive shall be entitled to all benefits offered generally to Executives of  Company in accordance with the terms of the Offer Letter, including (i) health and welfare benefits  offered generally to employees of Company, and (ii) annual vacation days outlined in the Offer Letter.   Executive’s rights to indemnification shall be as set forth in the Indemnification Agreement, the  Company’s Articles of Incorporation and Bylaws and the Washington Business Corporation Act.   II. TERMINATION OF EMPLOYMENT AND SEVERANCE.      A.   Reasons for Termination.                        1.    Death or Disability.  The Term and Executive’s employment hereunder (i) shall  immediately terminate upon Executive’s death, and (ii) may be terminated by the Board as a result of  Executive becoming permanently disabled within the meaning of the Company’s long-term disability plan  in which Executive participates.                2.    Termination by Company for Cause.  The Company may terminate this Agreement  and Executive’s employment hereunder for Cause at any time upon written notice to Executive. The  notice of termination must specify those actions or inactions upon which the termination is based.  For the  purpose of this Agreement, “Cause” means and shall exist if any of the following occurs:                (a)   Executive is convicted of or takes a plea of nolo contendere to a crime involving   dishonesty, fraud or moral turpitude;                        (b)   Executive has engaged in any of the following: (i) fraud, embezzlement, theft or   other dishonest acts, (ii) unprofessional conduct, (iii) gross negligence related to the business or (iv) other   conduct that is materially detrimental to the business as determined in the reasonable business judgment     Executive Employment Agreement     - 2 -  

 

 of the Company;                        (c)   Executive materially violates a significant Company policy (as they may be  amended from time to time), such as policies required by the Sarbanes-Oxley Act, The Dodd-Frank Act,   state or federal law or the New York Stock Exchange listing standards, the Company’s Drug Free   Workplace Policy or Company’s EEO policies, and does not cure such violation (if curable) within   twenty (20) days after written notice from Company;                        (d)   Executive willfully takes any action that significantly damages the assets   (including tangible and intangible assets, such as name or reputation) of the Company;                        (e)   Executive fails to perform Executive’s duties in good faith or Executive   persistently fails to perform Executive’s duties, and does not cure such failures within ten (10) days after   written notice from the Company or, if notice and cure have previously taken place regarding a similar   failure to perform, if the circumstance recurs; or                        (f)   Executive breaches this Agreement or the 2018 Non-Compete Agreement in any   material respect and does not cure such breach (if curable) within twenty (20) days after written notice   from Company or, if notice and cure have previously taken place regarding a similar breach, if a similar   breach recurs.            3.    Termination by Company Without Cause.  The Company shall have the right to  terminate this Agreement and Executive’s employment hereunder at any time without Cause (and not for  death or disability) by written notice to Executive.                4.    Termination by Executive for Good Reason.  Executive shall have the right to   terminate this Agreement and Executive’s employment hereunder for Good Reason, subject to the notice   and cure provisions provided below. For the purpose of this Agreement, “Good Reason” means:                        (a)   any material breach of this Agreement by the Company;                  (b)   a substantial reduction of responsibilities assigned to Executive; or                         (c)   a reduction in Executive’s base salary, other than as part of an across-the-board   salary reduction generally imposed on executives of the Company.                   A termination of employment by the Executive for one of the reasons set forth above shall not constitute   Good Reason unless (i) Executive notifies the Company of the existence of the condition constituting   Good Reason within ninety (90) days after the initial existence of the condition; (ii) the Company is given   at least twenty (20) days after being notified of the existence of the condition to remedy the condition;   (iii) the Company has failed to remedy the condition within the allotted cure period; and (iv) the   termination of the Agreement is effective no later than five (5) months after the initial existence of the   condition.                  5.    Termination by Executive Without Good Reason.  Executive shall have the right to   terminate this Agreement and Executive’s employment hereunder at any time without Good Reason by   written notice to the Company, provided that Executive shall make reasonable best efforts to give   sufficient notice and otherwise assist in an orderly transition to a new CEO.  In that regard, for purposes   of this Agreement, an “Approved Retirement” means Executive’s voluntary termination of this     Executive Employment Agreement     - 3 -  

 

 Agreement and Executive’s employment hereunder, or termination by mutual agreement of the Company   and Executive, if each of the following conditions have been met: (i) Executive and the Board agree in   advance to a transition period to allow for an orderly transition of Executive’s duties in connection with a   decision of Executive to retire; (ii) Executive continues to perform his duties under this Agreement,   remains in good standing with the Company, and fully cooperates with the Board in the recruitment of a   successor CEO during the transition period; and (iii) the Board determines in its reasonable, good faith  discretion that Executive has successfully transitioned his duties and responsibilities to the selected  successor CEO by the date of Executive’s termination of employment at the end of the transition period.      B.    Effect of Termination.              1.    Resignation from All Positions; Date of Termination.  Upon termination of   Executive’s employment hereunder for any reason, Executive shall be deemed to have resigned from all   positions that Executive holds as an officer or member of the Board (or a committee thereof) of the   Company or any of its affiliates or benefit plans.  For purposes of this Agreement, Executive’s “date of   termination” is the last day of Executive’s employment with the Company determined in accordance with   the Company’s payroll and personnel records, but subject to the requirements of Section III.G.12   (regarding a Code Section 409A “separation from service”), if applicable.                  2.    Payments Due Upon Any Termination of Employment. In the event of Executive’s   termination of employment hereunder for any reason, Executive shall be entitled to receive the following   payments and benefits (the “Accrued Obligations”):                  (a)   Any base salary accrued but unpaid through the date of termination;                  (b)   The annual bonus, if any, earned for performance for the prior year which has not   yet been paid as of the date of termination, provided that such bonus shall not be payable in case of a   termination by the Company for Cause under Section II.A.2 above or by Executive without Good Reason   under Section II.A.5 above;                  (c)   Reimbursement for any unreimbursed business expenses that have been properly   incurred by Executive prior to the date of Executive’s termination and that are or have been submitted in   accordance with the applicable Company policy; and                  (d)   Such employee benefits, if any, as to which Executive may be entitled under the   employee benefit plans of the Company.                  3.    Severance Payments for Termination Without Cause or With Good Reason.  In case   of termination of Executive’s employment with the Company either (i) by the Company without Cause   under Section II.A.3 above, or (ii) by Executive for Good Reason under Section II.A.4 above (in each   case, a “Qualifying Termination”), Executive shall be entitled to the following payments and benefits, in   addition to the Accrued Obligations, subject to the requirements of Section II.B.5 below:                        (a)   Cash Severance.  Executive shall receive cash severance payments at a rate equal   to his pro-rated base salary at the time of the Qualifying Termination for a period of eighteen (18)   months, in accordance with the Company’s normal payroll practices.  Payments shall commence upon the   first payroll date after the release required by Section II.B.5 below becomes effective, and in no event   later than the 75th day following the date of the Qualifying Termination, with any payments otherwise     Executive Employment Agreement     - 4 -  

 

 scheduled to be made during the period before the release becomes effective to be made at the same time   as the first payment.                  (b)   Pro Rata Annual Bonus. Executive shall also receive any short-term or other   incentive payments which are applicable to Executive and based solely on the year in which the   Qualifying Termination occurs, provided that (i) any amount of such incentive which is based on   Executive’s individual performance shall remain subject to any discretionary judgments of the Board as   provided in the applicable plan or agreement, and (ii) any incentive payment whether based on Company   or the individual performance of Executive shall be prorated based on the months of service actually   performed by Executive during the applicable fiscal year.  For avoidance of doubt this section is not   intended to apply to (x) equity incentive awards which are addressed in Section II.B.3(d) below, or (y)   any incentive plan which is based on Company or individual performance in more than one fiscal year, it   being the intent that if such a plan is subsequently adopted by the Company that any benefit payable   under such plan would be addressed in the plan or in a specific amendment to this agreement.  Any such   payment shall be made by no later than March 15 of the year following the year of the Qualifying   Termination.                  (c)   Continued Health Care. If, in connection with such Qualifying Termination,   Executive elects to continue health care coverage for Executive and his family pursuant to the   Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), then the Company shall reimburse   Executive for up to (18) eighteen months on an after-tax basis the portion of Executive's COBRA  premiums for such coverage that exceeds the amount that Executive would have incurred in premiums for  coverage under the Company's health plan if then employed by the Company.                    (d)   Equity Vesting.  As to any outstanding, unvested equity award granted to   Executive under a Company equity compensation plan, except to the extent that the applicable award   agreement or equity compensation plan provides for better treatment, such awards shall be subject to the   following vesting provisions upon a Qualifying Termination, and notwithstanding any contrary provision  in the applicable award agreement:                        (i)   For any award that is scheduled to vest based solely on continued         employment with the Company, the award shall vest upon the Qualifying Termination to the         extent is was scheduled to vested during the eighteen (18) month period immediately following         the date of the Qualifying Termination.                              (ii) For any award that is scheduled to vest based on attainment of specified        performance goals over a performance period, the award shall vest and be paid after the end of        the applicable performance period based on actual performance results, and shall be pro rated for        the portion of the performance period employed, and for that purpose Executive shall be deemed        to have continued employment with the Company for a period of eighteen (18) months following        the date of the Qualifying Termination.                4.    Approved Retirement. In case of Executive’s Approved Retirement, Executive shall be  entitled to the following payments and benefits, in addition to the Accrued Obligations, depending on the  date of such termination and subject to the requirements of Section II.B.5 below:       Executive Employment Agreement     - 5 -  

 

            (a)   Continued Health Care.                       (i)   If the date of termination for the Approved Retirement occurs before the       fifth anniversary of the date of this Agreement, and if, in connection with such termination,       Executive elects to continue health care coverage for Executive and his family pursuant to       COBRA, then the Company shall reimburse Executive for up to (18) eighteen months on an after-      tax basis the portion of Executive's COBRA premiums for such coverage that exceeds the amount       that Executive would have incurred in premiums for coverage under the Company’s health plan if       then employed by the Company.                                        (ii) If the date of termination for the Approved Retirement occurs on or after       the fifth anniversary of the date of this Agreement, the Company shall continue group health plan       coverage for Executive and his family sponsored by the Company at the same level of employer       contribution as is provided to similarly situated active employees until Executive has reached age       65. Executive acknowledges and understands that the value of coverage under the Company’s       group health plan is imputed income for federal tax purposes and that Executive must remit to the       Company by the first day of each month, a payment equal to the current employee contribution       rate. To maintain coverage under the Company’s group health plan and comply with Section       105(h) of the Internal Revenue Code of 1986, as amended (“Code”), Executive must remit to the       Company by the first day of each month, a payment equal to the Company’s tax withholding       liability on imputed income and the current employee contribution rate. The entitlement of       Executive under this Section shall be conditioned upon Executive not being eligible to elect       coverage under another employer’s group health plan.  Notwithstanding anything to the contrary       in this Section, coverage under the Company’s group health plan pursuant to this Section shall       cease if the Company determines in its sole discretion that such reimbursement or coverage       cannot be continued without (A) not complying with applicable law, including but not limited to,       Section 2716 of the Public Health Services Act and Section 105(h) of the Code, (B) incurring an       excise or penalty tax, or (C) breaching the terms of any applicable stop-loss or other agreement       insuring the group health plan. If permitted by applicable law, the Company will provide       Executive a taxable payment equal to the cost of coverage provided under this Section, as       applicable for the remainder of the time specified in this Section.  The Company shall not be       liable for any claims if an insurer denies a claim by Executive or his spouse. Executive       acknowledges and agrees that termination of coverage under this Section may not be a qualifying       event for purposes of COBRA or coverage under a state or federal health exchange.                 (b)   Equity Vesting.  As to any outstanding, unvested equity award granted to  Executive under a Company equity compensation plan, except to the extent that the applicable award  agreement or equity compensation plan provides for better treatment, such awards shall be subject to the  following vesting provisions upon an Approved Retirement, and notwithstanding any contrary provision  in the applicable award agreement:                      (i)   If the date of termination for the Approved Retirement occurs on or after        the second anniversary of this Agreement and before the fifth anniversary of this Agreement:                            (A)  For any award that is scheduled to vest based solely on             continued employment with the Company, the award shall vest upon the termination of             employment to the extent is was scheduled to vested during the twelve (12) month period             immediately following the date of the termination of employment for the Approved             Retirement.    Executive Employment Agreement     - 6 -  

 

                                  (B)   For any award that is scheduled to vest based on attainment of               specified performance goals over a performance period, the award shall vest and be paid               after the end of the applicable performance period based on actual performance results,               and shall be pro rated for the portion of the performance period employed, and for that               purpose Executive shall be deemed to have continued employment with the Company for               a period of twelve (12) months following the date of the termination of employment for               the Approved Retirement.                                          (ii) If the date of termination for the Approved Retirement occurs on or after        the fifth anniversary of this Agreement:                              (A)   For any award that is scheduled to vest based solely on              continued employment with the Company, the award shall vest in full upon the date of              the date of the termination of employment for the Approved Retirement.                                  (B)   For any award that is scheduled to vest based on attainment of              specified performance goals over a performance period, the award shall vest and be paid              after the end of the applicable performance period based on actual performance results as              if Executive had remained employed through the end of the applicable performance              period (i.e., without pro rating the award).                5.    Conditions to Severance Payments.  As conditions precedent to being entitled to  receive the payments set forth in Sections II.B.3 or 4, Executive must: (i) within twenty-one (21) days of  the termination of Executive’s employment, sign and deliver and thereafter not revoke a release in the  form of Exhibit B to this Agreement in accordance with its terms or a form otherwise acceptable to the  Company; (ii) be and remain in full compliance with all provisions of this Agreement; and (iii) be and  remain in full compliance with the Amended Non-Competition Agreement and any other covenants in  this and in any other agreements between the Company and Executive.   The Company shall have no  obligation to make any payments or provide any benefits to Executive under Sections II.B.3 or 4 unless  and until the effective date of the Waiver and Release Agreement, as defined therein.                  6.    No Duplication of Severance Benefits.  In the event that any payments or benefits  become due and payable to Executive under the Change-in-Control Agreement, such payments shall  control over the severance payments and benefits under this Agreement, to the extent necessary to avoid  duplication of benefits.  In that regard, the provisions of the Change-in-Control Agreement regarding the  potential cutback in certain payments to avoid excise taxes under Section 4999 of the Code, related to  “excess parachute payments” within the meaning of Section 280G of the Code, shall control with respect  to any payment under this Agreement, if applicable.   III.  Additional Terms and Conditions    A.    Arbitration. The Company and Executive agree that any claim arising out of or relating to this  Agreement, or the breach of this Agreement, or Executive’s application, employment, or termination of  employment, shall be submitted to and resolved by binding arbitration under the Federal Arbitration Act.   The Company and Executive agree that all claims shall be submitted to arbitration including, but not  limited to, claims based on any alleged violation of Title VII or any other federal or state laws; claims of  discrimination, harassment, retaliation, wrongful termination, compensation due or violation of civil  rights; or any claim based in tort, contract, or equity.  Any arbitration between the Company and     Executive Employment Agreement     - 7 -  

 

 Executive will be administered by the American Arbitration Association under its Employment   Arbitration Rules then in effect.  The award entered by the arbitrator will be based solely upon the law   governing the claims and defenses pleaded, and will be final and binding in all respects.  Judgment on the   award may be entered in any court having jurisdiction.  The Company agrees to pay for the arbiter’s fees  where required by law.       B.     Reimbursement. If Executive ever possesses or controls any Company funds (including, without  limitation, cash and travel advances, overpayments made to Executive by the Company, amounts received  by Executive due to the Company’s error, unpaid credit or phone charges, excess sick or vacation pay, or  any debt owed the Company for any reason, including misuse or misappropriation of company assets),  Executive will remit them to the Company corporate headquarters in Tacoma, Washington, daily for the  entire period of Executive’s possession or control of such Company funds unless directed otherwise in  writing.  At any time upon request, and at the time when Executive’s employment ends for any reason,  even without request, Executive shall fully and accurately account to Company for any Company funds  and other property in Executive’s possession or control.  If Executive fails to do so, Executive hereby  authorizes the Company (subject to any limitations under applicable law) to make appropriate deductions  from any payment otherwise due Executive (including, without limitation, Executive’s paycheck, salary,  bonus, commissions, expense reimbursements and benefits), in addition to all other remedies available to   Company.      C.   Clawback Policy.  All compensation payable to Executive under this Agreement shall be subject  to the requirements of the Company’s Clawback Policy, as the same may be in effect from time to time,  as well as any other compensation recovery requirements of applicable law.     D.    Background Investigation and Review of Company Property.            1.    Background Information.  Executive agrees that at any time during employment the  Company may, subject to any applicable legal requirements, investigate Executive’s background for any  relevant information on any subject which might have a bearing on job performance including, but not  limited to, employment history, education, financial integrity and credit worthiness, and confirm that  Executive has no criminal record during the last ten years. Executive shall sign any and all documents  necessary for the Company to conduct such investigation.  For this purpose, Executive specifically  authorizes the Company to obtain any credit reports, background checks and other information which  may be useful. Executive acknowledges and, except as may be limited by applicable law, agrees to abide  at all times by the terms of the Company’s drug and alcohol policy.  Executive understands that failure to  comply with the Company’s policies, including its drug and alcohol policies, may result in termination of  employment.          2.    Right to Inspect Company Property.  Executive acknowledges and agrees that unless  otherwise expressly prohibited by law, the Company has the complete right to review, inspect and  monitor all Company property, including, without limitation, email, voicemail, and computer property of  the Company, and to review, inspect and monitor Executive’s use of the internet or other computer related  transmission of information including, without limitation, the identity and use of USB and other computer  related drives.  Executive acknowledges that Executive has no expectation of privacy in he Company’s  property, including, without limitation, email, voicemail, and computer property.        Executive Employment Agreement     - 8 -  

 

 E.    ASSIGNMENT OF INVENTIONS.             1.    Inventions Assignment.  Executive shall make prompt and full disclosure to the   Company, shall hold in trust for the sole benefit of the Company, and does assign exclusively to the  Company all right, title and interest in and to any and all inventions, discoveries, designs, developments,  improvements, copyrightable material and trade secrets (collectively herein “Inventions”) that Executive  solely or jointly may conceive, develop, author, reduce to practice or otherwise produce during  Executive’s employment with the Company.           2.    Outside Inventions.  Executive’s obligation to assign shall not apply to any Invention  about which Executive can prove all the following:  (a) it was developed entirely on Executive’s own  time; (b) no equipment, supplies, facility, services or trade secret information of the Company was used in  its development; (c) it does not relate (i) directly to the business of the Company or its affiliates or (ii) to   the actual or demonstrably anticipated business, research or development of the Company or its affiliates;   and (d) it does not result from any work performed by Executive for the Company or its affiliates.    Executive shall attach a list of all existing Inventions meeting these requirements to this Agreement.   F.     COMPLIANCE WITH LAWS AND COMPANY’S CODE OF CONDUCT.            1.    Commitment to Compliance.  The Company is committed to providing equal   employment opportunity for all persons regardless of race, color, gender, creed, religion, age, marital or   family status, national origin, citizenship, mental or physical disabilities, veteran status, ancestry,   citizenship, HIV or AIDS, sexual orientation, on-the-job-injuries, or the assertion of any other legally   enforceable rights, or other protected status under applicable law.  Equal opportunity extends to all   aspects of the employment relationship, including hiring, transfers, promotions, training, termination,   working conditions, compensation, benefits, and other terms and conditions of employment.  The   Company is likewise committed to ensuring that employees are accurately paid for all hours worked.            2.    Duty to Comply with the Law.  Executive agrees to and shall comply with all federal,   state and local laws and regulations, including, without limit, equal employment opportunity laws and   wage and hour laws.  Executive agrees to and shall immediately notify the Company if Executive   becomes aware of a violation of the law, or suspects a violation of the law has or will occur.  Executive   acknowledges that Executive may be held personally liable for intentional violations.            3.    Duty to Comply with Company’s Code of Conduct. Executive acknowledges and   agrees that it is Executive’s duty to be familiar with the Company’s Code of Conduct, and to comply with   all of its respective provisions.     G.    MISCELLANEOUS.            1.    Integration.  Except with respect to the Amended Non-Competition Agreement, Change-  in-Control Agreement and Indemnification Agreement, (i) no promises or other communications made by   either the Company or Executive are intended to be, or are, binding unless they are set forth in this   Agreement inclusive of Exhibits; and (ii) this Agreement inclusive of Exhibits contains the entire   agreement between the parties with respect to Executive’s employment by the Company and replaces and   supersedes the 2014 Employment Agreement in its entirety.  This Agreement may not be modified except   by a written instrument signed by an appropriate officer of the Company and by Executive.          Executive Employment Agreement     - 9 -  

 

       2.    Choice of Law.  The Company and Executive agree that this Agreement and all  interpretations of the provisions of this Agreement will be governed by the laws of the State of  Washington, without regard to choice of law principles.           3.    Venue and Consent to Jurisdiction. Where the parties have mutually waived their right   to arbitration in writing or have not sought to enforce their right to compel arbitration, or where a   temporary and/or preliminary or permanent injunction may be necessary to protect the interests of either   party, Executive and the Company hereby irrevocably and unconditionally submit to the jurisdiction of   the Washington State Superior Court for Peirce County or the United States District Court, Western   District of Washington at Tacoma, or to any court in any location where Executive is threatening to   breach or is engaged in breaching the Agreement; Executive and the Company consent to submit to venue   and personal jurisdiction of the courts identified herein, and agree to waive any claim that any such suit,   action, or proceeding has been brought in an inconvenient forum. Executive and the Company agree that   the choice of venue lies solely in the discretion of the Company.                    4.    No Wavier of Rights. A waiver by the Company of the breach of any of the provisions   of this Agreement by Executive shall not be deemed a waiver by the Company of any subsequent breach,   nor shall recourse to any remedy hereunder be deemed a waiver of any other or further relief or remedy   provided for herein.  No waiver shall be effective unless made in writing and signed by the General   Counsel of the Company.  The Agreement shall be enforceable regardless of any claim Executive may   have against the Company.            5.    Severability.  The provisions of this Agreement are intended to be severable from each   other.  No provision will be invalid because another provision is ruled invalid or unenforceable.  If any   provision in this Agreement is held to be unenforceable in any respect, such unenforceability shall not   affect any other provision of this Agreement and shall be re-written to provide the maximum effect   consistent with the intent of the provision.            6.    Binding Effect and Assignability.  This Agreement shall be binding upon and inure to   the benefit of the parties hereto and their respective heirs, personal representatives, successors, assigns,   affiliated entities, and any party-in-interest.  Executive agrees and understands that, should the Company  be acquired by, merge with, or otherwise combine with another corporation or business entity, the  surviving entity will have all rights to enforce the terms of this Agreement as if it were the Company itself  enforcing the Agreement.  The Company reserves the right to assign this Agreement to its affiliates, an  affiliated company or to any successor-in-interest to the Company’s business without notifying Executive,  and Executive hereby consents to any such assignment.  All terms and conditions of this Agreement will  remain in effect following any such assignment.  Notwithstanding the foregoing, Executive may not  assign this Agreement.            7.    Non-Disparagement. At all times during the Executive’s employment with the Company  and following termination of that employment by either Executive or the Company, Executive shall not  publicly disparage the Company or its subsidiaries or any of their respective directors, officers or  employees.   Executive shall not be in breach of this provision by providing information as required by  law or legal compulsion.           8.    Survival.  Notwithstanding any provision of this Agreement to the contrary, the parties’  respective rights and obligations under Sections II.B and III do and shall survive any termination of  Executive’s employment and/or the assignment of this Agreement by the Company to any successor in  interest or other assignee.      Executive Employment Agreement    - 10 -  

 

        9.    Withholding Taxes. The Company may withhold from any amounts payable under this  Agreement such Federal, state and local taxes as may be required to be withheld pursuant to any  applicable law or regulation.                10.   Attorney’s Fees. In any suit or proceeding to enforce the terms of this Agreement,  Executive and the Company agree that the prevailing party in any such dispute shall be paid and  indemnified by the non-prevailing party for and against all expenses of every nature and character  incurred by in pursuing such suit or proceeding including, without limitation, all reasonable attorneys’  fees, costs and disbursements.                11.   Headings for Convenience Only.  The headings used in this Agreement are intended for  convenience or reference only and will not in any manner amplify, limit, modify or otherwise be used in  the construction or interpretation of any provision of this Agreement.  References to Sections are to  Sections of this Agreement.  Any reference in this Agreement to a provision of a statute, rule or regulation  will also include any successor provision thereto.                12.   Section 409A.  This Agreement and any payments provided hereunder are intended to  comply with, or be exempt from, Section 409A of the Code (“Section 409A”).  The Agreement shall in all  respects be interpreted, operated, and administered in accordance with this intent.  Payments provided  under the Agreement may only be made upon an event and in a manner that complies with Section 409A  or an applicable exemption, including to the maximum extent possible, exemptions for separation pay due  to an involuntary separation from service and/or short-term deferrals.  Any payments provided under the  Agreement to be made upon a termination of service that constitute deferred compensation subject to  Section 409A shall only be made if such termination of service constitutes a “separation from service”  under Section 409A.  Each separate payment provided under the Agreement shall be treated as a separate  identified payment for purposes of Section 409A.  To the extent required by Section 409A, each  reimbursement or in-kind benefit provided under the Agreement shall be provided in accordance with the  following: (i) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during  each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be  provided, in any other calendar year, (ii) any reimbursement of an eligible expense shall be paid to  Executive on or before the last day of the calendar year following the calendar year in which the expense  was incurred, and (iii) any right to reimbursements or in-kind benefits under the Agreement shall not be  subject to liquidation or exchange for another benefit.  If Executive is a “specified employee” under  Section 409A at the time of Executive’s termination of service, any payments to be made upon a  termination of service that constitute deferred compensation subject to Section 409A and that are  scheduled to be made within six months following Executive’s termination date shall be delayed, without  interest, and paid in a lump sum on the earlier of (i) the first payroll date to occur following the six-month  anniversary of Executive’s termination date, or (ii) Executive’s death, and any payments otherwise  scheduled to be made thereafter shall be made in accordance with their original schedule.  The Company  makes no representations or warranties that the payments provided under the Agreement comply with, or  are exempt from, Section 409A, and in no event shall the Company be liable for any portion of any taxes,  penalties, interest, or other expenses that may be incurred by Executive on account of non-compliance  with Section 409A.     EXECUTIVE ACKNOWLEDGES AND AGREES THAT EXECUTIVE HAS READ AND  UNDERSTANDS THIS AGREEMENT, THAT EXECUTIVE HAS BEEN GIVEN AN  OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL CONCERNING THE TERMS OF    Executive Employment Agreement    - 11 -  

 

THIS AGREEMENT, AND THAT EXECUTIVE AGREES TO THE TERMS OF THIS  AGREEMENT.   IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as  of the date first above written.         EXECUTIVE                           COMPANY    By:   /s/ Patrick Beharelle               By:   /s/ James E. Defebaugh            Name: Patrick Beharelle                  Name:  James E. Defebaugh                Date: Sept. 18, 2018                      Title: EVP, General Counsel & Secretary     By signing this Agreement, I accept and acknowledge  Date: Sept. 18, 2018       that I will abide by the terms and conditions of this  Agreement.  I agree and understand that nothing in   this Agreement shall confer any right with respect   continuation of employment by the Company, nor shall  it interfere in any way with my right or the Company’s   right to terminate my employment at any time, with   or without cause.    Executive Employment Agreement    - 12 -  

 

                                                                                     EXHIBIT A                                                                                (OFFER LETTER)                                                                 Executive Employment Agreement                                                         - 13 -  

 

                                      September 13, 2018      Patrick Beharelle   1 W. Superior Unit # 4302   Chicago, IL 60654      Dear Patrick,      It is my pleasure to extend the following promotional offer to you on behalf of TrueBlue.  We trust that your   knowledge, skills and experience will continue to be a valuable asset to our organization. This offer is based upon   the following terms:      Position:                    President and Chief Executive Officer    Reporting to:                 The TrueBlue Board of Directors    Base Salary:                  $700,000 ($26,923.08 per pay period) paid on a bi-weekly basis and subject to                                applicable taxes.      Annual Bonus:                 $700,000 (100% of base salary)    Annual Equity Grant:          $2,100,000 (300% of base salary)    Promotional Equity Grant:     $280,000 (40% of base salary)    Effective Start Date:         September 1, 2018    Promotional Equity Grant:  You will receive a one-time award of restricted shares having a value of 40% of base  salary. The number of shares you receive will be based on the grant value divided by the average closing price of the  previous 60 trading days of the stock on the grant date.  Shares will be granted on September 14, 2018. Restricted  shares will vest equally over four years on the anniversary date of the grant and per the terms of the grant agreement.    Annual Equity Grant:  You will be eligible for an annual equity award currently expected to be 300% of base  salary.  Annual equity grants are typically granted in February and actual award values and equity components are  subject to the approval of the Board.    Annual Bonus Plan:        1)  8/12ths of your 2018 annual bonus will be calculated based on your current bonus plan of 75% at target          (25% for individual objectives and 50% for TBI EBITDA growth), and annual base salary of $600,000.           (Target 75% x $600,000 = $450,000 x 8/12 = $300,000 bonus at target)      2)  The other 4/12ths of your 2018 annual bonus will be calculated based on your new bonus, 100% at target          (50% for individual objectives and 50% for TBI EBITDA growth), and new base salary, $700,000.  (Target          100% x $700,000 = $700,000 x 4/12 = $233,333 bonus at target)      3)  Beginning Jan 1, 2019, you will be eligible to participate in our annual TrueBlue Executive Bonus Plan.          Your total target annual bonus payout in 2019 will be   100% of your base salary.    The details of the 2019 bonus plan will be provided to you once it is finalized in December.    Health & Welfare Benefits:  Your current benefits program selections will remain in place.       Executive Employment Agreement             - 14 -  

 

    Paid Time Off:  You will be eligible to accrue 30 days of time off each year with increases based upon the length of   employment.  TrueBlue also recognizes six holidays per year.  PTO combines vacation, personal holiday and sick   days into one flexible bank of time that you can use to take paid time off from work.      Nothing in this offer letter is intended to be a contract of employment or a promise of specific treatment in specific   situations.  This offer letter does not change your at-will employment status and TrueBlue reserves the right to   modify your compensation, title or continued employment as circumstances dictate.      Employment and Related Agreements: Upon your acceptance of this employment offer you will be offered an at-  will employment agreement (the “Employment Agreement”) providing for, among other things, severance in the   event your employment were to be terminated by the Company without cause or by you with good reason (as   defined in the Employment Agreement).  Nothing in this offer letter itself is intended to be a contract of employment   or a promise of specific treatment in specific situations unless expressly set forth herein, nor does this offer letter   change your employment at-will status if you accept it.        We are excited about continuing our mutually rewarding employment relationship.  If you have any questions   regarding this offer letter, please contact me.      Sincerely,    /Steve Cooper/    Steve Cooper  Chairman of the Board (elect)      I have read and accept the terms of this employment offer.          ______________________________________                          _______________      Signature                                                                       Date                                                                                                                 Executive Employment Agreement             - 15 -  

 

                                   EXHIBIT B                                                               (SAMPLE) WAIVER AND RELEASE OF CLAIMS         This Release of Claims (“Release”) is hereby executed by ___________________ (“Executive”) in   accordance with the Employment Agreement between Executive and Company___________, Inc.   (“Employer”), dated _____________________ (“Employment Agreement”).                                                                RECITALS                                            A.    Employer and Executive are parties to the Employment Agreement.    B.    The Employment Agreement provides for certain payments and benefits to Executive upon  termination of Executive’s employment under certain circumstances, provided that Executive signs and  delivers to Employer upon such termination a Release in substantially the form of this Release, and does  not revoke the same.    C.    Executive desires for Employer to make payments in accordance with the Employment  Agreement and therefore executes this Release.                                        TERMS      1.    Waiver, Release and Covenant.  On behalf of Executive and Executive’s marital community,   heirs, executors, administrators and assigns, Executive expressly waives, releases, discharges and acquits   any and all claims against Employer and its present, former and future affiliates, related entities,   predecessors, successors and assigns, and all of their present, former and future officers, directors,   stockholders, employees, agents, partners, and members, in their individual and representative capacities   (collectively “Released Parties”) that arise from or relate to Executive’s employment with Employer   and/or the termination of such employment (“Released Claims”).  This waiver and release includes any   and all Released Claims (including claims to attorneys’ fees), damages, causes of action or disputes,   whether known or unknown, based upon acts or omissions occurring or that could be alleged to have   occurred before the execution of this Release.  Released Claims include, without limitation, claims for   wages, employee benefits, and damages of any kind whatsoever arising out of any:  contract, express or   implied; tort; discrimination; wrongful termination; any federal, state, local or other governmental statute   or ordinance, including, without limitation, Title VII of the Civil Rights Act of 1964, as amended; the   Civil Rights Act of 1991; the Age Discrimination in Employment Act, as amended (“ADEA”); the   Americans with Disabilities Act of 1990, the Rehabilitation Act of 1973; the Family and Medical Leave   Act; the Employee Retirement Income Security Act of 1974, including but not limited to claims under   Company-sponsored severance and termination pay plans, if any; and any other legal limitation on the   employment relationship.  Executive also covenants and promises never to file, press or join in any   complaint or lawsuit for personal relief or any amounts of any nature based on any Released Claim and   agrees that any such claim, if filed by Executive, shall be dismissed, except that this covenant and   promise does not apply to any claim of Executive challenging the validity of this Release in connection   with claims arising under the ADEA and/or the Older Workers’ Benefit Protection Act of 1990   (“OWBPA”).  Executive represents and warrants that he is the sole owner of all Released Claims and has   not assigned, transferred, or otherwise disposed of Executive’s right or interest in those matters.    Notwithstanding the foregoing, this waiver and release does not apply to claims that arise after the date   that the release is executed, claims to vested benefits under ERISA, workers’ compensation claims or any     Executive Employment Agreement    - 16 -  

 

 other claims that may not be released under this Release in accordance with applicable law.        2.    Acknowledgment of Sufficiency of Consideration.  Executive acknowledges and agrees that in   the absence of Executive’s execution of this Release, Employer is not obligated to provide Executive with   the payment and benefits described in the Employment Agreement, and that the payment and benefits set   forth in the Employment Agreement are adequate consideration for the covenants and release herein.      3.    Covenants and Obligations under Employment Agreement.  Nothing in this Release supersedes or   restricts any obligations that Executive owes to Employer, including, without limitation, the obligation to   protect Employer’s interests in Confidential Information and trade secrets and inventions under the   Employment Agreement and/or under applicable law, and/or Company’s Non-Competition Agreement   executed by Executive.  Executive agrees to comply with all covenants that Executive has entered into   with Company.    4.    Non-Disparagement.  At all times during the Executive’s employment with Company and   following termination of that employment by either Executive or Company, Executive agrees not to make   any statements, written or verbal, or cause or encourage others to make any statements, written or verbal,   including but not limited to any statements made via social media, on websites or blogs, that defame,   disparage the Company or its Subsidiaries or any of their respective directors, officers or employees.     Executive will not be in breach of this provision by providing information as required by law or legal   compulsion.            Executive further understands and agrees that this paragraph is a material provision of this   Agreement and that any breach of this paragraph shall be a material breach of this Agreement, and that   the Company would be irreparably harmed by violation of this provision.      5.    Disclosure. Executive acknowledges and warrants that s/he is not aware of, or that s/he has fully   disclosed to the Company, any matters for which Executive was responsible or which came to   Executive’s attention as an employee of the Company that might give rise to, evidence, or support any   claim of illegal conduct, regulatory violation, unlawful discrimination, or other cause of action against the   Company.      6.    Company Property. All records, files, lists, including computer generated lists, data, drawings,   documents, equipment and similar items relating to the Company’s business that Executive generated or   received from the Company remains the Company’s sole and exclusive property. Executive agrees to   promptly return to the Company all property of the Company in his/her possession. Executive further   represents that s/he has not copied or caused to be copied, printout, or caused to be printed out any   documents or other material originating with or belonging to the Company. Executive additionally  represents that s/he will not retain in her/his possession any such documents or other materials.      7.     Review and Revocation Period.  Executive has a period of seven (7) calendar days after   delivering the executed Release to Employer to revoke the Release.  To revoke, Executive must deliver a  notice revoking Executive’s agreement to this Release to the General Counsel of Employer.  This Release  shall become effective on the eighth day after delivery of this executed Release by Executive to Employer   (“Effective Date”), provided that Executive has not revoked the Release.  Employer shall have no   obligation to provide Executive with any payment or benefits as described in the Employment Agreement   if Executive revokes this Release.      8.    Governing Law.  This Release shall be interpreted in accordance with the law of the State of     Executive Employment Agreement    - 17 -  

 

Washington, without regard to the conflicts of law provisions of such laws.    9.    Severability.  If any provision of this Release constitutes a violation of any law or is or becomes  unenforceable or void, then such provision, to the extent only that it is in violation of law, unenforceable  or void, shall be deemed modified to the extent necessary so that it is no longer in violation of law,  unenforceable or void, and such provision will be enforced to the fullest extent permitted by law.  If such  modification is not possible, such provision, to the extent that it is in violation of law, unenforceable or  void, shall be deemed severable from the remaining provisions of this Release, which shall remain  binding.    10.   Knowing and Voluntary Agreement.  Executive hereby warrants and represents that (a) Executive  has carefully read this Release and finds that it is written in a manner that he understands; (b) Executive  knows the contents hereof; (c) Executive has been advised to consult with Executive’s personal attorney  regarding the Release and its effects and has done so; (d) Executive understands that Executive is giving  up all Released Claims and all damages and disputes that have arisen before the date of this Release,  except as provided herein; (e) Executive has had ample time to review and analyze this entire Release; (f)  Executive did not rely upon any representation or statement concerning the subject matter of this Release,  except as expressly stated in the Release; (g) Executive has been given at least twenty-one (21) days to  consider this Release and seven (7) days to revoke this Release; (h) Executive understands the Release’s  final and binding effect; (i) Executive has signed this Release as Executive’s free and voluntary act.    11.       Arbitration and Venue.  Employer and Executive agree that any claim arising out of or relating to  this Release of Claims, or the breach of this Release of Claims, shall be submitted to and resolved by  binding arbitration under the Federal Arbitration Act, except for claims where a temporary and/or  preliminary or permanent injunction may be necessary to protect the interests of Employer, or the  employee.  Employer and Executive agree that all claims shall be submitted to arbitration including, but  not limited to, claims based on any alleged violation of Title VII or any other federal or state laws; claims  of discrimination, harassment, retaliation, wrongful termination, compensation due or violation of civil  rights; or any claim based in tort, contract, or equity.  Any arbitration between Employer and Executive  will be administered by the American Arbitration Association under its Employment Arbitration Rules  then in effect.  The award entered by the arbitrator will be based solely upon the law governing the claims  and defenses pleaded, and will be final and binding in all respects.  Judgment on the award may be  entered in any court having jurisdiction.  In any such arbitration, neither Executive nor Employer shall be  entitled to join or consolidate claims in arbitration or arbitrate any claim as a representative or member of  a class.  Employer agrees to pay for the arbiter’s fees where required by law.  Where the parties have  mutually waived their right to arbitration in writing or have not yet sought to enforce their right to compel  arbitration, venue for any legal action in connection with this Release of Claims will be limited  exclusively to the Washington State Superior Court for Pierce County, or the United States District Court  for the Western District of Washington at Tacoma. Executive and Company agrees to submit to the  personal jurisdiction of the courts identified herein, and agrees to waive any objection to personal  jurisdiction in these courts including but not limited to any claim that any such suit, action or proceeding  has been brought in an inconvenient forum.                                                                           END OF EXHIBIT B                           (SAMPLE) RELEASE OF CLAIMS      Executive Employment Agreement    - 18 -

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