Document:

Exhibit

Exhibit 10.2

CONSULTING AGREEMENT

This CONSULTING AGREEMENT (this “Agreement”), dated as of May 30, 2020, is entered into by and between Phillip Tighe (“Consultant”), and Blue Bird Corporation, a Delaware corporation (“Company”). 
BACKGROUND
A.    In recognition of Consultant’s skills, expertise and knowledge, and particularly his experience with Company and in the industry, most recently having served as Company’s Chief Financial Officer prior to his retirement, and his intimate knowledge of Company’s business, financial affairs, practices and policies, Company desires to retain Consultant as an independent contractor to provide certain consulting and advisory services for a period of time.
B.    Consultant desires to provide such services to Company on the terms and conditions described in this Agreement.
NOW, THEREFORE, in consideration of the mutual promises and conditions contained herein, and other good and valuable consideration, the adequacy of which the parties hereby acknowledge, the parties hereto agree as follows:
AGREEMENT
1.Engagement of Consultant.  Company hereby engages Consultant, and Consultant hereby accepts such engagement, upon the terms and conditions described in this Agreement, beginning July 1, 2020 (the “Engagement Date”).  

2.Term of Agreement.  The term of this Agreement will begin on the Engagement Date and will continue until May 31, 2021, except as otherwise provided in this Agreement.  The parties may agree in writing to terminate this Agreement earlier, or to extend the term of Agreement, at any time.  Notwithstanding the foregoing, the term of this Agreement may be terminated by Consultant at any time upon fifteen (15) days’ prior written notice to Company.  The period from the Engagement Date until the termination of the term of this Agreement will be referred to as the “Term.” 

3.Consultant’s Services.  Consultant shall provide consulting and advisory services to Company during the Term, as reasonably requested by Company, on matters with respect to which Consultant’s experience and expertise may be deemed helpful to Company.  Such services may include, without limitation, providing assistance, advice and counsel as requested by Company from time to time with respect to and in connection with Company’s transition to a new Chief Financial Officer; Consultant’s presence at Company’s headquarters location to consult with, advise and otherwise assist Company management or its Board of Directors; participation in meetings (telephonic or in person) with Company personnel and/or others, at Company’s headquarters or elsewhere; and reviewing and/or assisting in preparation of reports, documents, information, filings or other similar papers.  Consultant agrees to provide such services promptly and professionally.  Company agrees to provide Consultant with such support as Company deems to be reasonably necessary for Consultant to perform the consulting and advisory services under this Agreement, including without limitation the use of office space on Company’s premises and any necessary administrative or secretarial support when Consultant is required to be present at Company’s headquarters location.  

4.Time Commitment.  Consultant agrees to be available to provide a substantial level of services to or for the benefit of Company pursuant to this Agreement, and Consultant acknowledges that his presence at Company’s headquarters location for a considerable amount of time could be required in connection with such services.  Accordingly, Consultant agrees not to accept other employment, engage in business or provide consulting or similar services other than to Company during the Term, except to the extent that such activities would not be contrary to the provisions of this Agreement (and the terms of any other agreement between Consultant and Company) and would not materially interfere with Consultant’s performance of the consulting services under this Agreement.  

5.Compensation.  In consideration of the consulting and advisory services to be rendered by Consultant pursuant to this Agreement, Company shall pay Consultant at the monthly rate of $33,333.33, such amount to be paid promptly following the end of each month.  

6.Reimbursement of Expenses.  With prior approval of Company, Consultant shall be entitled to reimbursement for reasonable business expenses Consultant incurs in connection with the services provided to Company under this Agreement including, without limitation, all reasonable travel-related expenses incurred on Company’s behalf, e.g., in connection with travel from Consultant’s residence to Company’s headquarters location.  

Exhibit 10.2

7.Relationship.  The parties stipulate and agree that Consultant is an independent contractor and not an employee with respect to the services to be performed hereunder.  Notwithstanding any provision hereof to the contrary, nothing in this Agreement shall be construed as giving Company primary direction or control over the judgment of Consultant as to the time, location, manner or method in which he performs the services hereunder.  This Agreement describes the work to be performed by Consultant, but does not reserve to Company primary direction or control in the time, location, manner or method in which such services are to be performed.  This Agreement sets forth the goals of the relationship and standards to be satisfied by Consultant, but does not create the relationship of an employer and employee.  Consultant shall have full discretion and authority regarding the manner in which he performs the services described in this Agreement, without further notice, consent or approval of any party, except as otherwise expressly provided in this Agreement.  Neither party will hold Consultant out to the public as an employee or agent of Company or as having authority to bind Company.  Consultant will not be eligible for any employee benefits of any type whatsoever provided under Company plans, policies or programs with respect to services provided pursuant to this Agreement, and will not be subject to or eligible under any employment policies relating to common law employees (regardless of the status of Consultant for tax or other purposes).

8.Violations of Agreement; Other Company Agreements and Policies; Rules and Regulations.  Consultant agrees to comply with all Company policies, programs, arrangements and agreements to which he is subject or a party, and any rules and regulations that may apply with respect to Consultant’s work.  If Company determines that Consultant has materially violated any of the terms of this Agreement, or of any other Company policy, program, arrangement or agreement, including without limitation the provisions of any employment or similar agreement, confidentiality, noncompetition and/or nonsolicitation or similar agreement regarding restrictive covenants, or other agreement with Company, or a Company code of conduct or other Company written policy generally applicable to executive employees, or applicable rule or regulation, while a Company employee or during the Term, Company may terminate this Agreement after giving Consultant written notice, and a reasonable opportunity to cure.  Upon any such early termination, Consultant will not be eligible to receive any additional amounts of compensation under this Agreement.  

9.Withholding; Taxes.  Consultant and Company agree that Consultant is not an employee for federal or state tax purposes.  Consultant acknowledges that Company shall not withhold from the amounts payable to Consultant hereunder, any amounts for federal or state income taxes, social security payments, or other withholdings.  Consultant agrees to report all income derived from Company pursuant to this Agreement to the appropriate federal, state and local agencies and to pay all taxes owing with respect to same.

10.Section 409A Compliance.  Amounts payable pursuant to this Agreement are intended either to be exempt from Section 409A of the Internal Revenue Code of 1986, as amended, and regulations thereunder (“Section 409A”), to the extent an exemption(s) is available, or to comply with the provisions of Section 409A.  This Agreement shall be interpreted to avoid any penalty or sanctions under Section 409A.  Accordingly, all provisions herein, or incorporated by reference, shall be construed and interpreted to the maximum extent permitted to be exempt from or compliant with Section 409A and, if necessary, any such provision shall be deemed amended to comply with Section 409A and regulations thereunder.  In connection therewith:

a.It is intended that each installment of the payments hereunder shall be treated as a separate “payment” for purposes of Section 409A.

b.If as of Consultant’s employment termination date from Company, Consultant is a “specified employee” (within the meaning of Section 409A(a)(2)(B) or any successor provision thereto), then with regard to any payment or provision of benefit that is subject to Section 409A as deferred compensation and is due upon or as a result of Consultant’s “separation from service,” notwithstanding any contrary provision under this Agreement, such payment or benefit shall not be made or provided, to the extent making or providing such payment or benefit would result in additional taxes or interest under Section 409A, until the date with is the earlier of (A) expiration of the six‐month period measured from such “separation from service,” and (B) the date of Consultant’s death (the “Delay Period”).  Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this section (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to Consultant in a lump‐sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them in this Agreement.

c.While this Agreement is intended to be exempt from or compliant with Section 409A, Company neither makes nor has made any representation, warranty or guarantee of any federal, state or local tax consequences of Consultant’s entitlements under this Agreement, including, but not limited to, under Section 409A.

11.Worker’s Compensation and Unemployment Insurance.  Consultant is not entitled to worker’s compensation benefits or unemployment compensation benefits provided by Company.  If required by law, Consultant shall maintain worker’s compensation insurance.

Exhibit 10.2

12.Governing Law and Venue.  This Agreement shall be interpreted in all respects by the internal laws of the State of Georgia, and the venue for the resolution of any disputes (location of any lawsuit) shall be solely in the state and federal courts in Georgia. 

13.Company Documents, Information, or Property.  Consultant agrees that, on or before the Termination Date, Consultant will have returned to the Company any and all documents relating to the Company or its business operations (and any and all copies thereof, whether in paper form or electronic form), computer equipment, badges, credit cards, and any other Company property in Consultant’s possession or control.  

14.Waiver.  The waiver by either party of a breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach by such other party.

15.Assignment.  Neither Company nor Consultant shall make or purport to make any assignment or other transfer of this Agreement or any of the rights granted to it or him under this Agreement without the prior written consent of the other party, and no such assignment or transfer shall be effective without consent of such other party.  

16.Severability.  If any part of this Agreement, for any reason, is declared invalid by an arbitrator or a court of competent jurisdiction, such decision or determination will not affect the validity of any remaining portion, and such remaining portion will remain in force and effect as if this Agreement had been executed with the invalid portion eliminated; but at the same time, the provision declared invalid will not be invalidated in its entirety, but will be observed and performed by the parties to the extent such provision is valid and enforceable.  

17.Section Headings.  Section and other headings contained in this Agreement are for reference purposes only and are in no way intended to describe, interpret, define or limit the scope, extent or intent of this Agreement or any provision hereof.

18.Complete Agreement.  This Agreement constitutes the entire agreement between Company and Consultant and supersedes all previous and contemporaneous written and oral agreements regarding services to be provided during the Term, and no other representations, statements, inducements, negotiations or commitments, oral or written, with respect to Consultant’s engagement that are not contained in this Agreement will be binding upon the parties.  Any subsequent alteration or modification to this Agreement must be made in writing and signed by both parties.  

19.Counterparts.  This Agreement may be executed in separate counterparts, each of which shall be deemed an original and both of which shall constitute one agreement, and the signature of either party to a counterpart shall be deemed to be a signature to, and may be appended to, the other counterpart.  

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.

CONSULTANT:

	
					
	/s/ Phillip Tighe
	 
	 
	 
	 

	Phillip Tighe
	 
	 
	 
	 

COMPANY:

	
			
	/s/ Tom Roberts
	 
	 

	By: Tom Roberts
	 
	 

	Title: Chief Administrative OfficerExhibit

Exhibit 10.3

April 28, 2020

Dear Jeff,
Blue Bird is pleased to confirm our offer of employment as outlined in this Letter Agreement. 

Your Position

Upon Board approval, you will be appointed Chief Financial Officer, effective June 1, 2020. As we have discussed, your employment will begin on May 1, 2020. You will report to Phil Horlock, President and Chief Executive Officer.

Salary 

Your annual salary will be $450,000, payable on the 10th and 25th of each month.  

Bonus 

You will be eligible to participate in the annual Blue Bird Management Incentive Bonus Plan (“MIP”) with a target of 75% of your base salary. Funding of the MIP is based on achievement of financial metrics approved by the Compensation Committee. The Compensation Committee has discretion to substantially increase the payout of the MIP bonus if the Company’s performance exceeds the target financial metrics.  For the current fiscal year, you will be eligible to participate in the MIP on a pro rata basis based on your start date. 

Equity Awards 

You will be eligible to participate in Blue Bird’s annual Long-Term Incentive Equity Plan (“LTI”) with a target of 75% of your base salary. The Compensation Committee reviews Your LTI Awards will be a mix of stock options (25%) and restricted stock units (75%).  The LTI Awards vest annually in equal tranches over three years and are subject to a performance vesting requirement established by the Board.  The Compensation Committee will review recommendations for the FY2021 LTI Awards in December. 

Sign-on LTI Award  

On your start date you will receive a special LTI Award of 7,500 stock options and 7,500 RSUs (“Sign-on LTI Award’). The first tranche of the Sign-on LTI Award will vest on December 11, 2020, the date on which the first tranche of the Company’s fiscal year 2020 LTI Awards vest, and will not be subject to a performance vesting component. The remaining tranches of the Sign-on LTI Award will vest in accordance with the terms of the Company’s fiscal year 2020 LTI Awards. The exercise price of the stock options will be based on the grant date, which will be your start date. 

Exhibit 10.3

Severance

If you are terminated without cause, you will be eligible to receive up to 12 months of base salary and continued group health insurance. This severance benefit is subject to the terms of our standard severance agreement, a copy of which has been provided to you. 

Withholding

All pay, incentives and other compensation shall be subject to applicable withholdings for federal, state and local taxes and shall be payable in accordance with State and Federal law and the Company’s regular payroll policies.

Your Benefits

While employed by the Company, you may be entitled to participate in certain benefit plans. Benefits details and eligibility requirements are available in Human Resources.  Employees are eligible for benefits after 90 days of continuous service as of their date of hire.
		
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	Medical benefits through Blue Cross/Blue Shield 

		
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	Pharmacy benefits administered by CVS/Caremark

		
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	Optional Dental coverage is offered through Delta Dental

		
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	Optional vision coverage is offered by Blue Cross Blue Shield  

		
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	Flexible Spending Accounts and Dependent Care options

		
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	Life insurance and AD&D are administered by MetLife 

		
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	The Blue Bird 401(k) Plan is administered by MassMutual Financial  

		
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	Annual auto allowance of $11,760.

To ensure that there is no coverage gap in your group medical insurance, Blue Bird will provide reimbursement for your COBRA coverage, net of your normal monthly contribution, until you become eligible for coverage under Blue Bird’s plans. 

Expense Reimbursement

You shall be entitled to receive reimbursement for all appropriate traveling and other business expenses incurred by you in connection with your duties under this Agreement, in accordance with the policies of the Company in effect from time to time.

Relocation

Our offer includes temporary corporate housing arrangements for six months, move of household goods to your final home in Georgia, and a one-time payment of $50,000.00 to help with any other relocation related expenses.  This will be administered through relocation assistance company, Lexicon. We will send you additional information separately. As discussed, our expectation is that you will move to the Macon area within one year of your start date. 

Employment at Will 

Notwithstanding anything in this Letter Agreement to the contrary, your employment by the Company will be at will and may be terminated at any time, subject to the Company’s generally applicable employment policies. 

Amendment or Termination of Plans or Practices

The Company continues to reserve the right to modify, amend or terminate any of the employee benefit plans or practices described in these materials.  In all cases, the plan rules are the exclusive source for determining rights and benefits under a benefit or compensation plan and those plans shall govern if there is conflict with these materials.  

Exhibit 10.3

E-Verify

As a federal contractor, we are required to verify the eligibility of all new hires to the Department of Homeland Security utilizing the E-Verify website.  As such, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States.  Such documentation must be provided to us within three (3) business days from your date of hire, or our employment relationship with you may be terminated.  If you are unsure what documents are acceptable, please contact me prior to your start date for the current list.

Disclosure, Confidentiality, Non-Compete and Non-Solicitation 

If you have not already done so, we ask that you disclose to the Company any and all agreements relating to your prior employment that may affect your eligibility to be employed by the Company or limit the manner in which you may be employed. It is the Company’s understanding that any such agreements will not prevent you from performing the duties of your position and you represent that such is the case. Moreover, you agree that, during the term of your employment with the Company, you will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which the Company is now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company. Similarly, you agree not to bring any third-party confidential information to the Company, including that of your former employer, and that in performing your duties for the Company you will not in nay way utilize any such information. 

We look forward to welcoming you at Blue Bird.  To accept our offer, please email a signed copy of this letter to felix.lin@blue-bird.com.

Sincerely,
/s/ Felix Lin
Felix Lin
Vice President - HR and External Affairs
Blue Bird Corporation

	
					
	/s/ Jeffery L. Taylor
	 
	April 29, 2020
	 
	 

	Jeffrey L. Taylor
	 
	Date

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