Document:

Exhibit 108

		
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			Exhibit 10.8
		

		
			March 24, 2016
		

		
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			Mark J. Barry
		

		
			Chief Marketing and Strategy Officer
		

		
			ServiceMaster Global Holdings, Inc.
860 Ridge Lake Blvd.
		

		
			Memphis, TN 38120
		

		
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			Re:  Separation and Consulting Agreement
		

		
			Dear Mark:
		

		
			This letter will follow-up on our recent discussions, and will confirm the terms of your retirement from ServiceMaster.  We respect and are grateful for your dedicated service and appreciate your willingness to continue to provide services to the Company as a consultant during the next two years.  
		

		
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			This Separation and Consulting Agreement (“Agreement”) is made and entered into by you, Mark J. Barry (collectively referred to as “you”), on behalf of yourself, your heirs, executors, administrators, successors and assigns and ServiceMaster Global Holdings, Inc., on behalf of itself, its divisions, subsidiaries, affiliates, related companies, predecessors, successors, assigns, and their respective officers, directors, employees, insurers, stockholders, and agents (collectively referred to as “Company” or “ServiceMaster”). 
		

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

		
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				 1.
			Resignation from Employment. You have resigned from ServiceMaster, effective as of the close of business on Thursday, March 31, 2016 (“Resignation Date”).  Effective as of the Resignation Date, you acknowledge that you will no longer hold the position of Chief Marketing & Strategy Officer of the Company, nor any other officer, director or employee position with any of the entities that comprise the Company.  You acknowledge that, from and after the Resignation Date, you shall no longer be authorized to conduct business on behalf of ServiceMaster, including but not limited to entering into contracts on behalf of ServiceMaster.  You agree that, as requested by ServiceMaster from time to time following the Resignation Date, you will execute such other documents as may be necessary to consummate the transactions contemplated by the Agreement.  Your resignation from ServiceMaster shall be treated as a termination “without cause” for purposes of (a) the equity securities that you currently hold, (b) any other applicable compensatory agreements to which you and ServiceMaster are parties and (c) the employee benefit plans of ServiceMaster in which you participate.  By entering into this Agreement, you confirm that you have no disagreement with the Company on any matter relating to the Company’s operations, policies or practices and know of no violations of law or Company policy that have not been reported through the appropriate channels in accordance with Company policy.

			
	
			
				 2.
			Officer Indemnity.  To the extent required or permitted under Delaware law, the Company will indemnify you for any claims or suits that may be brought against you arising from your service as an executive officer of the Company.

		
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				 3.
			 Consulting Arrangement. From April 1, 2016 through March 31, 2018 (the “Consulting Term”), you will provide ongoing consulting advice to ServiceMaster, at the request and direction of ServiceMaster’s 
		

		 

		

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			Chief Executive Officer.  You agree to provide up to 30 hours of consulting services per month, on an as need basis.  ServiceMaster agrees to pay you a consulting fee of $100,000 per year for your services, payable monthly.  ServiceMaster also will reimburse your reasonable travel expenses, if any, incurred to provide such consulting services.  

		
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				 4.
			Equity Grants.   Any unvested restricted stock units (“RSUs”), performance shares (“PSUs”) or stock options held by you as of your Resignation Date are forfeited and will be cancelled.   Two business days following the public release of ServiceMaster’s financial results for the first quarter of 2016, you will be released from any applicable insider trading restrictions.  However, ServiceMaster reserves the right to re-impose such trading restrictions as it reasonably deems necessary to comply with applicable securities laws and regulations in the event that you become aware of any material, non-public information.  

		
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				 5.
			Accrued Wages and Benefits.  

		
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				 a.
			Accrued Wages. You will be paid any accrued unpaid wages (including any accrued, unused vacation time) through the last day of employment, in your final paycheck or in accordance with state law.

			
	
			
				 b.
			Deferred Compensation and Incentive Plans.   If you participate in any profit sharing, bonus, deferred compensation or incentive plans, your eligibility to participate will end on your Resignation Date.  Any amounts to be paid, distributed, rolled over, or held under such plans will be paid, distributed, rolled over, or held in accordance with the terms of such plans and applicable rules and regulations.

			
	
			
				 c.
			Group Health Insurance. If you participate in the ServiceMaster Health and Welfare Benefit Plan, your eligibility to participate will end on your Resignation Date.  You will become eligible for continuation of coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) on the first day following the last day of employment.  You are solely responsible for the payment of any premiums for COBRA coverage.

			
	
			
				 6.
			Confidential Information. You acknowledge and agree that your employment with ServiceMaster created a relationship of confidence and trust between you and ServiceMaster with respect to all Confidential Information.  You represent, warrant and agree that (a) you have not used or disclosed any Confidential Information other than as necessary in the ordinary course of performing your duties as a ServiceMaster employee for the benefit of ServiceMaster, and (b) you will keep in confidence and trust all Confidential Information known to you, and will not use or disclose such Confidential Information without the prior written consent of ServiceMaster.  As used in this Agreement, “Confidential Information” means all information belonging to ServiceMaster, which is of value to ServiceMaster and which is not publicly known.   Confidential Information includes information you developed in the course of your employment with ServiceMaster, as well as other information to which you may have had access in connection with your employment.  Confidential Information also includes the confidential information of others with whom ServiceMaster has a business relationship.  Nothing in this Agreement, however, shall be construed to prevent you from providing truthful information or testimony in response to a valid subpoena, court order, the request of any government agency or as otherwise required by law.

		
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				 7.
			Return of ServiceMaster Property.   On or before your Resignation Date, you agree to return to ServiceMaster all ServiceMaster property, equipment and materials, including, but not limited to, any laptop computer and peripherals; any cell phone or other portable computing device; any telephone calling cards; keys; 
		

		 

		

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			ServiceMaster identification card; any credit or fuel cards; and all tangible written or graphic materials (and all copies) relating in any way to ServiceMaster or its business, including, without limitations, documents, manuals, customer lists and reports, as well as all data contained on computer files, “thumb” drives, “cloud” services, or other data storage device, or home or personal computers and/or e-mail or internet accounts; provided, that, if the return of any such tangible written or graphic materials is impracticable, then you shall destroy such materials and shall certify such destruction to the Company at its request.   Notwithstanding anything herein to the contrary, you may retain possession of your Company-provided iPad tablet computer; provided that any Confidential Information relating to ServiceMaster that may be stored on the iPad is permanently deleted.

			
	
			
				 8.
			Assistance. You agree that, subject to reimbursement by ServiceMaster of reasonable costs and expenses, you will cooperate fully with ServiceMaster and its counsel with respect to any matter (including, but not limited to litigation, investigation or government proceeding) which relates to matters with which you were involved during your employment with ServiceMaster. You further agree to notify ServiceMaster’s General Counsel immediately upon your being asked to assist or supply information to any person or entity regarding any civil claim or possible claim against any member of ServiceMaster, and also to give such notice in the event you do in fact assist or supply information to any such person or entity.

			
	
			
				 9.
			Assignment of Inventions and Copyrights.  You hereby assign, transfer and release, without royalty or any other consideration except as expressly set forth herein, all worldwide right, title and interest you may have or acquire (including copyright and “moral rights”) in and to all work product, inventions, discoveries, know-how, processes, data and other items (“Materials”) resulting from your services under this Agreement.  To the extent any Materials are not assignable, you waive, disclaim and agree that you will not enforce against ServiceMaster any rights you may have to such Materials.  

			
	
			
				 10.
			Independent Contractor Relationship.  During the Consulting Term, you will be an independent contractor and nothing contained herein shall be deemed to make you an employee of ServiceMaster or to empower you to bind or obligate ServiceMaster in any way.  You are solely responsible for paying all of your own tax obligations, as well as those due for any employee/subcontractor permitted to work for you hereunder.

			
	
			
				 11.
			Non-Compete/Non-Solicitation/Non-Interference.  During the Consulting Term, you shall not, directly or indirectly (whether as owner, stockholder, director, officer, employee, principal, agent, consultant, independent contractor, partner or otherwise), in North America or any other geographic area in which ServiceMaster or any subsidiary of ServiceMaster is then conducting business:

		
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				 a.
			 own, manage, operate, control, participate in, perform services for, or otherwise carry on, a business similar to or competitive with the business conducted by ServiceMaster or any subsidiary of ServiceMaster, provided that the foregoing shall not prohibit  your passive ownership of less than 1% of any class of voting securities of a public or privately-held company which would otherwise be prohibited under this Section;

		
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				 b.
			attempt to induce any employee of ServiceMaster or any subsidiary of ServiceMaster to terminate his or her employment with ServiceMaster or any subsidiary of ServiceMaster for any purpose whatsoever, or attempt directly or indirectly, in connection with any business to which this section applies, to solicit the trade or business of any current or prospective customer, supplier or partner of ServiceMaster or any subsidiary of ServiceMaster; 

		
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				 c.
			engage in any activity which is contrary, inimical or harmful to the interests of ServiceMaster or any subsidiary of ServiceMaster, including but not limited to (i) violations of ServiceMaster policies, (ii) disclosure or misuse of any confidential information or trade secrets of ServiceMaster or a subsidiary of ServiceMaster, (iii) participation in any activity not approved by the Board which could reasonably be foreseen as contributing to or resulting in a change in control and (iv) conduct related to employment for which either criminal or civil penalties may be sought; or

		
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				 d.
			interfere with ServiceMaster’s relations with any of its customers, franchisees, subcontractors, consultants, vendors or business partners.  

		
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			This Agreement is in addition to and does not supersede any other agreements prohibiting competition with ServiceMaster.   Failure to abide by this Agreement or other such agreements with the Company will give the Company (in addition to any other remedies which may be available to the Company) the right, exercised in its sole and absolute discretion, to (a) suspend or cancel the consulting fees specified above, and (b) obtain a refund for any such consulting fees already made (collectively, “Company Rights”). You understand and recognize that, as a result of your executive role with ServiceMaster, you had contact with, and developed and furthered relationships with, customers and/or prospective customers, and had access to secret, proprietary and confidential information regarding ServiceMaster and its businesses, including Confidential Information (as defined above), and therefore understand and agree that (i) both the nature of this covenant and the scope of this covenant (as well as the covenants in this Agreement) are reasonable and necessary for the protection of ServiceMaster, including its secret, proprietary and confidential information, goodwill and customer relationships and (ii) that ServiceMaster will be irreparably harmed by the breach of any covenants in this Agreement, entitling it to seek injunctive and other equitable relief.
		

		
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				 12.
			No Conflict of Interest.  During the Consulting Term, you shall not enter into any relationship or affiliation, or engage in any activity which may constitute a conflict of interest with ServiceMaster.  You shall immediately notify ServiceMaster in writing if at any time during the Consulting Term you become aware of a potential conflict of interest arising between you and ServiceMaster.   

			
	
			
				 13.
			Non-Disparagement.  You agree that you will refrain from taking actions or making statements, written or oral, which criticize, disparage or defame the business, goodwill or reputation of ServiceMaster (including its products and services), its directors, officers, executives, subsidiaries, parent entities, and/or employees or making statements which could adversely affect the morale of other employees.  Nothing in this Agreement, however, shall be construed to prevent you from providing truthful testimony or information in response to any valid subpoena, court order, the request of any government agency or as otherwise required by law.

			
	
			
				 14.
			Release and Covenant Not to Sue.  

			
	
			
				 a.
			Release. In exchange for the consideration provided to you in this Agreement, you hereby release and forever discharge ServiceMaster, its past and present parent entities, subsidiaries, divisions, limited partnerships, affiliated corporations, successors and assigns,  as well as their respective past and present directors, managers, officers, partners, agents, employees, insurers, attorneys, servants, and each of them, separately and collectively (“Releasees”), from any and all claims, charges, complaints, liens, demands, causes of action, obligations, damages and liabilities, known or unknown, suspected or unsuspected, whether or not mature or ripe (“Claims”), that you ever had and now have against any of the Releasees, including, but not 
		

		 

		

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			limited to, Claims arising out of or in any way related to your employment with or separation from the Company.  This includes, but is not limited to, Claims based on statutes, torts, contracts and common law, Claims for discrimination, wrongful discharge, harassment, retaliation, and unpaid wages, Claims arising under Title VII of the Civil Rights Act of 1964, the Fair Labor Standards Act (“FLSA”), Family Medical Leave Act (“FMLA”), the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Worker Adjustment and Retraining Notification Act, the Employee Retirement Income Security Act, and any other federal, state or local law or regulation governing the employment relationship.  You understand that this Agreement includes a release of all known and unknown claims through your Resignation Date.  

			
	
			
				 b.
			Limitation of Release.  Nothing in this Agreement will prohibit you from filing a charge of discrimination with the National Labor Relations Board, the Equal Employment Opportunity Commission (“EEOC”) or an equivalent state civil rights agency, but you agree and understand that you are expressly waiving your right to monetary compensation or damages thereby if any such agency elects to pursue a claim on your behalf.  Further, nothing in this Agreement shall be construed to waive any right that is not subject to waiver by private agreement under federal, state or local employment or other laws, such as claims for workers’ compensation or unemployment benefits or any claims that may arise after your Resignation Date.

			
	
			
				 c.
			Covenant Not To Sue.  To the extent that any Claims covered by the scope of the release herein is not subject to waiver by applicable law (including, without limitation, any Claims arising under or related to FMLA, FLSA, and any other local, state or federal statute governing employment and/or the payment of wages and benefits), you hereby covenant and agree not to sue or otherwise seek any remedy or other form of relief against any of the Releasees relating to such Claims.

			
	
			
				 d.
			Representations.  You represent that you have been provided all benefits due under the Family and Medical Leave Act and that you have received all wages due, including overtime pay, premium pay, vacation pay, bonus pay, commissions, or other compensation, and that you have received all appropriate meals and rest breaks to which you were entitled, in compliance with the Fair Labor Standards Act and applicable state and local law, that you have no known workplace injuries or occupational diseases, and that you have not made any report of or opposed any fraud or other wrong doing at the Company and that you have not been retaliated against for reporting or opposing any alleged fraud or other wrongdoing at the Company.  

			
	
			
				 15.
			Termination.

		
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				 a.
			Cause.  ServiceMaster may terminate this Agreement for Cause.  “Cause” is defined as (i) your repeated failure to substantially perform your duties hereunder (including by reason of a disability); (ii) your material breach of this Agreement; or (iii) your intentional misconduct, illegal conduct, or gross negligence which is materially injurious to the Company.  In the event that ServiceMaster terminates this Agreement for Cause, ServiceMaster shall have no further obligation to you, except for payment of a pro-rated consulting fee through the date of termination.  You shall remain obligated to comply with your Non-Compete, Non-Interference and Non-Solicitation obligations through the remaining two-year Consulting Term of this Agreement.

		
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				 b.
			Without Cause.  ServiceMaster may terminate this Agreement at any time without Cause.  In that ServiceMaster terminates this Agreement without Cause, ServiceMaster shall have no further obligation to you, except for payment of a pro-rated consulting fee through the date of termination.  In the event this Agreement is terminated without Cause, you shall have no further obligation to ServiceMaster under the Non-Compete, Non-Interference and Non-Solicitation provisions of this Agreement.

		

		

		 

		

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				 c.
			Survival of Provisions.  The provisions set forth in paragraphs 6 (Confidential Information), 8 (Assistance), 9 (Assignment of Inventions and Copyrights), 13 (Non-Disparagement) and 14 (Release) shall survive any expiration or termination of this Agreement. 

			
	
			
				 16.
			Severability.  You and ServiceMaster agree that to the extent that any portion of this Agreement may be held to be invalid or legally unenforceable, the remaining portions will not be affected and will be given full force and effect. 

		
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				 17.
			Dispute Resolution.  Any dispute or controversy between you and ServiceMaster, whether arising out of or relating to this Agreement, the breach of this Agreement, or otherwise, shall be resolved in accordance with the ServiceMaster We Listen Dispute Resolution Plan in effect on your Resignation Date.  Notwithstanding the foregoing, you agree that ServiceMaster may seek a temporary restraining order and/or preliminary injunction in any court of competent jurisdiction, without the posting of a bond, in order to preserve the status quo or to enforce the covenants in this Agreement.  

			
	
			
				 18.
			Notices.  All notices required hereunder will be in writing and will be deemed given upon receipt if delivered personally (receipt of which is confirmed) or by courier service promising overnight delivery (with delivery confirmed the next day) or three (3) business days after deposit in the U.S. Mail, certified with return receipt requested.  All notices will be addressed as follows: 

			
					
						If to you:

					
						Mark J. Barry

					
						XXX XXXXX

					
						XXXXXX, XX XXXXX

					
					
						 

					
					
						If to ServiceMaster:

					
						ServiceMaster Global Holdings, Inc.

					
						860 Ridge Lake Boulevard

					
						Memphis, TN  38120

					
						Attn: SVP, Human Resources

				

		
			Or to such other address as either party will have furnished to the other in writing.
		

			
	
			
				 19.
			Governing Law and Venue.  The interpretation, construction and performance of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware without regard to the principle of conflicts of laws.  Subject to the arbitration provisions herein, any judicial proceeding arising from and relating to this Agreement shall be brought in courts having competent jurisdiction located in the State of Tennessee, which shall be the exclusive forum for resolving such disputes.  Both parties consent to the personal jurisdiction of such courts for the purposes of this Agreement.  

			
	
			
				 20.
			Income Taxation.   You understand that the Company has not provided any advice regarding the tax liability resulting from this Agreement and you shall not rely upon any representations or policies of the Company related to taxation. You are advised to seek the advice of your own personal tax advisor or counsel as to the taxability of the consulting fees.  

			
	
			
				 21.
			Successors and Assigns.  This Agreement shall inure to the benefit of and be enforceable by ServiceMaster and its successors and assigns and by you and your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  This Agreement shall not be terminated by any merger or consolidation of ServiceMaster whereby ServiceMaster is or is not the surviving or resulting corporation or as a result of any transfer of all or substantially all of the assets of ServiceMaster.  In the event 
		

		 

		

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			of any such merger, consolidation or transfer of assets, the provisions of this Agreement shall be binding upon the surviving or resulting corporation or the person or entity to which such assets are transferred.

		
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				 22.
			Entire Agreement. You and ServiceMaster agree that this Agreement constitutes the complete understanding between you and ServiceMaster regarding the matters herein and that no other promises or agreements, express or implied, will be binding between you and ServiceMaster unless signed in writing by you and ServiceMaster.  This Agreement fully supersedes and replaces any and all prior agreements or understandings, if any, between you and ServiceMaster on any matter that is addressed in this Agreement with the exception of confidentiality/non-solicitation/non-compete issues except as stated herein. 

		
			Sincerely,
		

		
			/s/ Susan Hunsberger
		

		
			
Susan Hunsberger
		

		
			Senior Vice President, Human Resources
		

		
			ServiceMaster Global Holdings, Inc.
		

		
			
		

		
			Accepted and agreed this 29th day of March, 2016.
		

		
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			/s/ Mark J. Barry___________________________
Mark J. Barry
		

		
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			7ex10-2.htm

Exhibit 10.1

 

	

 

 

January 5, 2016

 

 

John R. Rogers

3601 Head of Pond Rd.

New Albany, OH 43054

 

Dear Randy,

 

We are pleased to have you serve in the position of President and Chief Executive Officer of USA Truck, Inc. (the "Company"). The following outlines the terms of employment, but does not constitute a contract of employment or a guarantee of employment. This offer is subject to final approval by the Company's Board of Directors.

 

Compensation

 

	 	
•
	
Your current annual base salary will be $425,000, which will be paid in monthly installments on the last business day of each month in the amount of $35,416.67.

 

	 	
•
	
You will participate in the established Company Management Bonus Plan. For 2016, you will be entitled to:

 

	 	
•
	
a cash bonus of up to 150% of your pro-rated base salary for 2016 with a target of 80% thereof, depending upon performance relative to goals predetermined by the Executive Compensation Committee of the Company’s Board of Directors (the “Committee”); 

 

	 	
•
	
an equity grant of restricted shares of the Company’s common stock equal to 40% of your annualized base salary for 2016; provided, that if the date upon which your employment with the Company commences is on or after February 1, 2016, this equity grant shall be based on (a) your annualized base salary for 2016, times (b) the number of days employed by the Company in 2016, divided by (c) 334. The number of restricted shares awarded will be based upon your annualized base salary or prorated base salary over such 334 days, as the case may be, and the closing price of the Company’s common stock on the day before your employment with the Company begins. Vesting of this award depends upon performance relative to goals predetermined by the Committee, and is subject to additional time vesting. The Committee will determine whether such performance goals have been achieved in early 2017, following receipt of the Company’s 2016 full-year results, at which time some or all of the restricted shares may be forfeited if the performance goals are partially achieved or are not achieved. The remaining restricted shares will then vest ratably over a period of 4 years following such determination. For example, if the Committee determines on January 31, 2017, that the performance goals have been achieved at the 50% level, half of the restricted shares will be forfeited, and the remaining restricted shares will vest in 4 equal installments beginning on January 31, 2018;

 

 

 

 

 
	

  

 

	 	
•
	
an equity grant of restricted shares of the Company’s common stock equal to 150% of your annualized base salary for 2016; provided, that if the date upon which your employment with the Company commences is on or after February 1, 2016, this equity grant shall be based on (a) your annualized base salary for 2016, times (b) the number of days employed by the Company in 2016, divided by (c) 334. The number of restricted shares awarded will be based upon your annualized base salary or prorated base salary over such 334 days, as the case may be, and the closing price of the Company’s common stock on the day before your employment with the Company begins. Vesting of this award depends upon attainment of the return on invested capital goals for the period 2016-2018 as described on Exhibit A. The Committee will determine whether and to what extent such performance goals have been achieved in early 2019, following receipt of the Company’s 2018 full-year results, and this equity grant, if earned, will vest on the date of such determination; and,

 

	 	
•
	
in the event of a Change in Control as defined in Exhibit B hereto, any unvested time vested shares would become fully vested and any unvested performance vested shares would vest in an amount equal to the number of restricted shares that would vest based upon achievement of the target level of any related performance criteria over the applicable performance period, as more fully described in, and subject to, the award agreement relating to such shares.

 

	 	
•
	
You will be paid a cash signing bonus of $150,000 on the date the Company pays its 2015 cash bonuses to its senior executives, but in no event later than March 31, 2016, subject to your being employed by the Company on that date.

 

	 	
•
	
You will receive an initial equity grant equal to $300,000, based on the closing price of the Company’s common stock on the date your employment with the Company begins, of which $75,000 will vest on June 30, 2016 and $225,000 will vest in three equal annual installments, beginning on the first anniversary of the grant date.

 

	 	
•
	
You will receive an initial equity grant of $250,000 based on the closing price of the Company’s common stock on the date your employment with the Company begins, which will vest in its entirety if the closing price of the Company’s common stock is $50.00 per share or higher on five of the twenty trading days immediately preceding the third anniversary of the grant date. If the closing price of the common stock is greater than $45.00 per share and less than $50.00 per share on five of the twenty trading days in such period, the number of shares vested shall be prorated from 50% to 100% based upon the average volume weighted closing price of the common stock during such twenty day period between $45.00 per share and $50.00 per share. 

 

	 	
•
	
You will be appointed to serve as a Class II non-independent director on the Company’s Board of Directors, with a term expiring in 2018, subject to reelection at the end of the appointed term. You will receive no additional compensation for serving on the Company's Board of Directors.

 

	 	
•
	
You may be required to serve as an officer and/or director of one or more subsidiaries of the Company, for which you will receive no additional compensation.

 

 

 

 

 

	

 

 

	 	
•
	
Your position with the Company requires that you establish temporary housing in the Ft. Smith/Van Buren, Arkansas area within your first 14 days of employment and full-time residence in the Ft. Smith/Van Buren, Arkansas area for you and your family not later than June 30, 2016. To assist with your interim residency and timely relocation, you will receive an allowance of up to $60,000 for out-of-pocket relocation expenses incurred in moving to the Ft. Smith/Van Buren, Arkansas area.

 

	 	
•
	
You will be provided a laptop and smart phone at the Company's expense.

 

	 	
•
	
All payments provided for hereunder will be subject to required withholding of federal, state and local income, excise, and employment-related taxes. 

 

Benefits

 

	 	
•
	
You will receive four weeks paid vacation per year.

 

	 	
•
	
You are eligible for, and may participate in, the Company's 401(k) Plan subject to Company policies and the terms of that plan as in effect from time to time.

 

	 	
•
	
You are eligible for, and may participate in, the Company's Employee Stock Purchase Plan subject to Company policies and the terms of that plan as in effect from time to time.

 

	 	
•
	
The Company is currently a sponsor of the Arkansas Best Federal Credit Union and you may be eligible to participate in programs made available to the Company's employees. 

 

	 	
•
	
You are eligible for, and may participate in, the Company's Medical, Dental and Vision and Prescription Drug plans subject to Company policies and the terms of those plans as in effect from time to time. The Company will reimburse you for any COBRA premium payments for you and your eligible dependents under your former employer's health insurance plan until you are eligible to participate in the Company's Medical, Dental and Vision and Prescription Drug plans.

 

	 	
•
	
You will receive $1,000 per year to be applied towards premium payments on a supplemental term life insurance or you may choose to receive it as wages in your monthly payroll check (at the rate of $83.33 per month). 

 

Confidential Information or Trade Secrets

 

	 	
•
	
You will observe all rules, regulations, and security requirements of the Company concerning the safety of persons and property. You agree that you will comply with the Company's employee handbook, Code of Business Conduct and Ethics Policy, the Open Door Policy, the Whistleblower Policy, and any other policies of the Company as they relate to employees or directors of the Company.

 

 

 

 

 

	

 

 

Severance and Change in Control Agreement

 

	 	
•
	
You and the Company will enter into an agreement providing severance and change in control benefits on the date hereof in the form of Exhibit B attached hereto and incorporated by reference herein.

 

This letter does not create an express or implied contract of employment or any other contractual commitment. This letter contains the complete, final, and exclusive embodiment of the understanding between you and the Company regarding the terms of your employment and supersedes in all respects any prior or other agreement or understanding, written or oral, between you and the Company with respect to the subject matter of this letter. Your employment relationship with the Company is on an at-will basis, which means that either you or the Company may terminate the employment relationship at any time for any or no reason, consistent with applicable law. Notwithstanding the terms of this letter, the Company shall have the right change its compensation, welfare, benefit, incentive, and employment plans, policies, and terms from time to time. 

 

You represent and warrant that your signing of this letter and the performance of your obligations under it (including, without limitation, your employment with the Company and your performance of services for the Company) will not breach or be in conflict with the covenant not to compete (a copy of which has been provided to the company) and similar obligations by which you are bound. The Company acknowledges that you are required to provide your current employer sixty (60) days’ notice of termination of your employment (the “Notice Requirement”), which could delay commencement of your employment with the Company. You agree that you will endeavor to secure a full or partial waiver of the Notice Requirement from your current employer. You agree that you will not disclose to or use on behalf of the Company any proprietary information of another person or entity without that person's or entity's consent.

 

We ask that you acknowledge your acceptance of the terms of this letter by signing below and faxing or emailing the signed letter to my attention.

 

Sincerely,

 

 

 

 

Robert A. Peiser

Chairman of the Board

 

	
 
	
Agreed and Accepted

	
 
	
 

	
 
	
 

	
 
	
/s/ John R. Rogers

	
 
	
John R. Rogers

 

 

 

 

 

	

 

 

 

Exhibit A

 

Restricted shares will vest in an amount equal to the product of (i) the number of shares granted and (ii) the percentage between 50% and 150% corresponding linearly to the level achievement of the ROIC between 8% and 12%, as set forth in the table below (with fractional shares rounded to the nearest whole share). 

 

Performance Period: January 1, 2016 – December 31, 2018

 

	
Vesting Level 
	
ROIC(1) Performance Goal
	
Performance-Vested Shares Issued

	
-
	
Less than 8%
	
0

	
Minimum (50% of performance-

vested shares vest)
	
At least 8%
	
50% of performance-vested shares

	
Target (100% of performance-

vested shares vest)
	
Greater than or equal to 10%
	
↕ (linear)

100% of performance-vested shares

	
Maximum (150% of performance-

vested shares vest)
	
Greater than or equal to 12%
	
↕ (linear)

150% of performance-vested shares

 

	
(1)
	
Returned on Invested Capital ("ROIC") is calculated as follows, based upon consolidated financial results for the Company:

 

 

	
ROIC =
	
(tax-affected operating income)

	  	
(total assets) — (cash on hand)

 

Adjustment by the Committee. The Committee retains the sole and absolute discretion to make any adjustment to the Performance Goal it deems necessary for any unusual, extraordinary, non-recurring, or similar events occurring during the Performance Period.

 

 

 

 

 

	

 

 

 

Exhibit B

 

[Severance and Change In Control Agreement Attached]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}]]