Document:

qex102.htm

 

 

MEMORANDUM OF EMPLOYMENT

 

 

Effective:  August 1, 2013

 

 

	
NAME:

	
 JAN F. NIEMAN

 

 

The parties to this Memorandum of Employment (“Agreement”) are JAN F. NIEMAN and Quaker Chemical Corporation, a Pennsylvania corporation (“Quaker” or the “Company”).

 

You have been employed by Quaker or one of its affiliates since 1992, most recently as the Vice President & Managing Director of Asia Pacific.  Effective August 1, 2013 you are appointed Quaker’s Vice President, Global Leader–Grease/Fluid Power/Mining and Quaker wishes to adjust your compensation and enter into this Agreement containing certain covenants in connection with this appointment.

 

NOW THEREFORE in consideration of the mutual promises and covenants herein contained and intending to be legally bound hereby the parties hereto agree as follows:

 

1.      Duties

 

Effective as of the date written above, Quaker agrees to employ you and you agree to serve as Quaker’s Vice President, Global Leader Grease/Fluid Power/Mining, located at our Conshohocken, PA facility.  You shall perform all duties consistent with such position as well as any other duties that are assigned to you from time to time by Quaker’s Chief Executive Officer.  You agree that during the term of your employment with Quaker to devote your knowledge, skill, and working time solely and exclusively to the business and interests of Quaker and its subsidiaries. Any and all prior employment or other agreements, with the exception of the June 27, 2007 Change of Control agreement, are hereby terminated and have no further legal effect.

 

  

  

  

 

2.      Compensation

 

Your base salary will be determined from time to time by the Compensation / Management Development Committee Meeting of the Board of Directors, in consultation with the Chief Executive Officer. In addition, you will be entitled to participate, to the extent eligible, in any of Quaker’s annual and long term incentive plans, retirement savings plan (401k plan), stock purchase plan, and will be entitled to vacations, paid holidays, and medical, dental, and other benefits as are made generally available by Quaker Chemical Corporation to its full-time U.S. employees.  During your employment with Quaker, your salary will not be reduced by Quaker without your prior written consent.

 

3.        Term of Employment.

 

Your employment with Quaker may be termin­ated on thirty (30) days' written notice by either party, with or without cause or reason whatsoever.  Within thirty (30) days after termination of your employment, you will be given an accounting of all monies due you.

 

4.       Covenant Not to Disclose

 

You acknowledge that the identity of Quaker's (and any of Quaker's affiliates’) customers, the requirements of such customers, pricing and payment terms quoted and charged to such customers, the identity of Quaker's suppliers and terms of supply (and the suppliers and related terms of supply of any of Quaker's customers for which management services are being provided), information concerning the method and conduct of Quaker's (and any affiliate’s) business such as formulae, formulation information, application technology, manufacturing information, marketing information, strategic and marketing plans, financial information, financial statements (audited and unaudited), budgets, corporate practices and procedures, research and development efforts, and laboratory test methods and all of Quaker's (and its affiliates’) manuals, documents, notes, letters, records, and computer programs are Quaker's trade secrets ("Trade Secrets") and are Quaker’s (and/or any of its affiliates’, as the case may be) sole and exclusive property.  You agree that at no time during or following your employment with Quaker will you appropriate for your own use, divulge or pass on, directly or through any other individual or entity or to any third party, any Quaker Trade Secrets. Upon termination of your employment with Quaker and prior to final payment of all monies due to you under Paragraph 2 or at any other time upon Quaker's request, you agree to surrender immediately to Quaker any and all materials in your possession or control which include or contain any Quaker Trade Secrets.

 

  

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5.       Covenant Not to Compete

 

In consideration of your employment with Quaker and the training you are to receive from Quaker, you agree that during your employment with Quaker and for a period of one (1) year thereafter, regardless of the reason for your termination, you will not:

 

a.           directly or indirectly, together or separately or with any third party, whether as an employee, individual proprietor, partner, stockholder, officer, director, or investor, or in a joint venture or any other capacity whatsoever, actively engage in business or assist anyone or any firm in business as a manufacturer, seller, or distributor of chemical specialty products which are the same, like, similar to, or which compete with Quaker (or any of its affiliates’) products or services; and

 

            b.                      at the Chemical Management Services sites to which you are, have, or will specifically ever be assigned in the future, directly or indirectly, together or separately or with any third party, whether as an employee, individual proprietor, partner, stockholder, officer, director, or investor, or in a joint venture or any other capacity whatsoever, actively engage in business or assist anyone or any firm in business as a provider of chemical management services which are the same, like, similar to, or which compete with Quaker (or any of its affiliates’) services; and

 

c.           recruit or solicit any Quaker employee or otherwise induce such employee to leave Quaker’s employ, or to become an employee or otherwise be associated with you or any firm, corporation, business, or other entity with which you are or may become associated; and

 

d.           solicit or induce any of Quaker's suppliers of products and/or services (or a supplier of products and/or services of a customer who is being provided or solicited for the provision of chemical management services by Quaker) to terminate or alter its contractual relationship with Quaker (and/or any such customer).

 

The parties consider these restrictions reasonable, including the period of time during which the restrictions are effective.  However, if any restriction or the period of time specified should be found to be unreasonable in any court proceeding, then such restriction shall be modified or the period of time shall be shortened as is found to be reasonable so that the foregoing covenant not to compete may be enforced.  You agree that in the event of a breach or threatened breach by you of the provisions of the restrictive covenants contained in Paragraph 4 or in this Paragraph 5, Quaker will suffer irreparable harm, and monetary damages may not be an adequate remedy.  Therefore, if any breach occurs, or is threatened, in addition to all other remedies available to Quaker, at law or in equity, Quaker shall be entitled as a matter of right to specific performance of the covenants contained herein by way of temporary or permanent injunctive relief.  In the event of any breach of the restrictive covenant contained in this Paragraph 5, the term of the restrictive covenant shall be extended by a period of time equal to that period beginning on the date such violation commenced and ending when the activities constituting such violation cease.

 

  

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6.        Contractual Restrictions

 

You represent and warrant to Quaker that: (a) there are no restrictions, agreements, or understandings to which you are a party that would prevent or make unlawful your employment with Quaker and (b) your employment by Quaker shall not constitute a breach of any contract, agreement, or understanding, oral or written, to which you are a party or by which you are bound.

 

7.       Inventions

 

All improvements, modifications, formulations, processes, discoveries or inventions ("Inventions"), whether or not patentable, which were originated, conceived or developed by you solely or jointly with others (a) during your working hours or at Quaker’s expense or at Quaker's premises or at a customer’s premises or (b) during your employment with Quaker and additionally for a period of one year thereafter, and which relate to (i) Quaker’s business or (ii) any research, products, processes, devices, or machines under actual or anticipated development or investigation by Quaker at the earlier of (i) that time or (ii) as the date of termination of employment, shall be Quaker’s sole property.  You shall promptly disclose to Quaker all Inventions that you conceive or become aware of at any time during your employment with Quaker and shall keep complete, accurate, and authentic notes, data and records of all Inventions and of all work done by you solely or jointly with others, in the manner directed by Quaker. You hereby transfer and assign to Quaker all of your right, title, and interest in and to any and all Inventions which may be conceived or developed by you solely or jointly with others during your employment with Quaker.  You shall assist Quaker in applying, obtaining, and enforcing any United States Letters Patent and Foreign Letters Patent on any such Inventions and to take such other actions as may be necessary or desirable to protect Quaker's interests therein.  Upon request, you shall execute any and all applications, assignments, or other documents that Quaker deems necessary and desirable for such purposes.  You have attached hereto a list of unpatented inventions that you have made or conceived prior to your employment with Quaker, and it is agreed that those inventions shall be excluded from the terms of this Agreement.

 

	
8.  

	
Termination.

 

Quaker, in its sole discretion, may terminate your employment at any time and for any reason, including Cause (as defined herein).  If you incur a Separation from Service by action of Quaker for any reason other than Cause, death, disability or normal retirement age, Quaker agrees to:

 

  

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a.           Provide you with reasonable outplacement assistance, either by providing the services in-kind, or by reimbursing reasonable expenses actually incurred by you in connection with your Separation from Service.  The outplacement services must be provided during the one-year period following your Separation from Service.  If any expenses are to be reimbursed, you must request the reimbursement within eighteen months of your Separation from Service and reimbursement will be made within 30 days of your request.

 

b.           Pay you one year's severance in twenty-four semi-monthly installments commencing on the Payment Date and continuing on Quaker's normal semi-monthly payroll dates each month thereafter, each of which is equal to your semi-monthly base salary at the time of your Separation from Service, provided you sign a Release within 45 days of the later of the date you receive the Release or your Separation from Service. Continuation of medical and dental coverage’s will be consistent with current Quaker severance program in place at the time of termination,

 

“Separation from Service” means your separation from service with Quaker and its affiliates within the meaning of Treas. Reg. §1.409A-1(h) or any successor thereto.

 

           “Cause” means your employment with Quaker has been terminated by reason of (i) your willful and material breach of this Memorandum of Employment, (ii) dishonesty, fraud, willful malfeasance, gross negligence, or other gross misconduct, in each case relating to the performance of your duties hereunder which is materially injurious to Quaker, or (iii) conviction of or plea of guilty or nolo contendere to a felony.

 

“Payment Date” means (x) the 60th day after your Separation from Service or (y) if you are a specified employee (as defined in Treas. Reg. §1.409A-1(i)) as of the date of your Separation from Service, and the severance described in subsection (b) is deferred compensation subject to section 409A of the Code, the first business day of the seventh month following the month in which your Separation from Service occurs.  If the Payment Date is described in clause (y), the amount paid on the Payment Date shall include all monthly installments that would have been paid earlier had clause (y) not been applicable, plus interest at the Wall Street Journal Prime Rate published in the Wall Street Journal on the date of your Separation from Service (or the previous business day if such day is not a business day), for the period from the date payment would have been made had clause (y) not been applicable through the date payment is made.

 

“Release” means a release (in a form satisfactory to Quaker) of any and all claims against Quaker and all related parties with respect to all matters arising out of your employment with Quaker, or the termination thereof (other than for claims for any entitlements under the terms of this Memorandum of Employment or any plans or programs of Quaker under which you have accrued a benefit) that Quaker provides to you no later than ten days after your Separation from Service.  If a release is not provided to you within this time period, the severance shall be paid even if you do not sign a release.

 

  

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9.           Miscellaneous

 

This Agreement constitutes the entire integrated agreement concerning the subjects covered herein.  In case any provision of this Agreement shall be invalid, illegal, or otherwise unenforceable, the validity, legality, and enforceability of the remaining provisions shall not thereby be affected or impaired.  You may not assign any of your rights or obligations under this Agreement without Quaker’s prior written consent.  This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Pennsylvania without regard to any conflict of laws.  This Agreement shall be binding upon you, your heirs, executors, and administrators and shall inure to the benefit of Quaker as well as its successors and assigns.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written.

 

 

 

	
ATTEST:

	  	
QUAKER CHEMICAL CORPORATION

	  	  	  
	  	  	  
	
/s/ Ashley A. Miller                                                      

	  	
/s/ Michael F. Barry 

	  	  	  
	  	  	  
	  	  	  
	
WITNESS:

	  	  
	  	  	  
	  	  	  
	
/s/ Robert T. Traub 

	  	
/s/ Jan F. Nieman                                                      

	  	  	
Jan F. Nieman

 

 

  

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ADDENDUM 1

	
Base Salary:

	
Your salary will be payable on a semi-monthly basis at the rate of

$13,254.50, which is annualized at $318,108.00.  You will be eligible for your next salary increase in 2014.

 

	
Annual and Long-

Term Bonuses:

	
For your position, you are eligible to participate in the Global Annual Incentive Plan (“GAIP”) with target and maximum award percentages for 2013 under the GAIP of 33% and 60%, respectively, of your base salary, dependent upon Quaker’s financial results and personal objectives to be determined.

 

You are also eligible to participate in the Long-Term Performance Incentive Plan (“LTIP”).  Your award for the 2013-2015 performance period includes an even mix of time-based restricted stock, stock options, and a cash award. Your award is as follows: 796 shares of restricted stock, 2130 stock options and a target cash award of $46,419.  The exact cash award will be determined by performance over the three-year period based on relative total shareholder returns against a pre-determined peer group.

 

All incentive compensation awards are made at the Company’s discretion, are subject to change, and require the approval of the Compensation Committee.

 

	
Relocation:

	
You are eligible for relocation benefits for a move to the greater Philadelphia / Conshohocken area, as noted below.  You will be eligible for household goods move (packing, moving and unpacking) through Quaker’s third party relocation company.  In addition, you are eligible for reimbursement for closing costs on the purchase of a new home (in the greater Philadelphia / Conshohocken area), $13,500 for miscellaneous expenses or up to three (3) months of temporary housing with an allowance of up to $4,500.00 per month, as well as up to three (3) months of household storage of up to $5,000.00 per month.

 

If you desire to return to The Netherlands anytime after a five year period from the date of this Agreement, every effort will be made to find a mutually suitable position based in The Netherlands.   In such event, you will be responsible to pay for any relocation expenses associated with this move.

 

 

 

 

  

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Financial Planning:

	
You will be eligible to be reimbursed for up to $3,500.00 per calendar year for expenses incurred for financial planning and/or tax preparation.

 

	
Benefits:

	
Quaker offers a Flexible Benefits Program.  This gives you the opportunity to choose from a variety of options creating a customized benefits package.  The following benefits are part of the program.  In each of these areas, you are offered a range of options so you may choose the ones that make the most sense for your personal situation.

 

· Medical

· Dental

· Life & AD&D Insurance

· Long-term Disability

· Health Care and Dependent Care Flexible Spending Accounts (FSAs)

 

In addition to these flexible benefits, Quaker also offers the following benefit plans:

 

Retirement Savings Plan (401K)

 

	
Vacation / Holidays:

	
You will be eligible for 30 days vacation per calendar year while you are working in the U.S. In addition your will be eligible for 111⁄2 paid regional holidays.

 

 

Page 8 of 8TBI 10Q 06.28.13 EX 10.1

EXHIBIT 10.1

TRUEBLUE, INC.
NONQUALIFIED DEFERRED COMPENSATION PLAN

Amended, Restated, and Effective December 1, 2012 

SECTION 1
INTRODUCTION AND DEFINITIONS

1.1    Nature of the Plan.  Effective June 1, 2006, TrueBlue, Inc. (formerly known as Labor Ready, Inc.) established a nonqualified, unfunded, deferred compensation plan for the purpose of allowing a select group of management or highly compensated employees of the Company and certain of its affiliates to defer Compensation that would otherwise be paid to those employees and to receive discretionary employer matching and other discretionary contributions that may be awarded from time to time.  The Plan is intended to be “unfunded” within the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).  Accordingly, it is intended that the Plan be a “top hat plan” that is exempt from the requirements of Parts II, III and IV of Title I of ERISA pursuant to §§ 201(2), 301(a)(3) and 401(a)(1) of ERISA.  The Plan was amended and restated effective December 1, 2010, to explain the rules for Deferral Elections and Employer contributions for Plan Years starting on or after January 1, 2011. The Plan is hereby amended and restated effective December 1, 2012 to revise the definition of Eligible Employee, clarify matching contribution eligibility, and, for contributions made to the Plan in Plan Years starting on or after January 1, 2013, to revise the definition of Seniority Date. 

1.2    Definitions.  The following words and phrases shall have the following meanings, unless a different meaning is plainly required by the context.  Any masculine terminology used in the Plan shall also include the feminine gender and the definition of any terms in the singular shall also include the plural.

Account shall mean a Company internal bookkeeping account in the name of a Participant to which Eligible Compensation deferred by or otherwise allocated to the Participant under this Plan shall be credited, plus deemed investment earnings and gains and minus deemed losses and expenses.  A Participant's Account shall include his or her Elective Deferral Account, Matching Contribution Account, Discretionary Employer Contribution Account, and any Specified Date Accounts.

Active Participant shall mean an employee who is eligible to participate in the Plan for a Plan Year, as described in Section 3.1

Annual Bonus shall mean the bonus that an active Participant earns during one calendar year and is paid in the following calendar year, provided such bonus is considered “performance based compensation” under Code Section 409A and the Treasury Regulations thereunder and is remuneration the amount of, or entitlement to, is contingent on the satisfaction of preestablished organizational or individual performance criteria relating to a performance period of at least 12 consecutive months.  

Beneficiary shall mean the person or persons designated as such by the Participant to receive all or a part of the Participant's vested Account balance in the event of the Participant's death prior to the full payment thereof.  Each such designation shall be filed with the Company in a form acceptable to the Company and shall become effective only when received by the Company.  Designated persons or entities shall not be considered Beneficiaries until the death of the Participant.  If a Participant becomes divorced after having named his or her spouse as a Beneficiary, the prior designation of the spouse as Beneficiary shall be void.  After the divorce, the Participant may, in his or her discretion, designate his or her ex-spouse as a Beneficiary by filing a new beneficiary designation form with the Company.

Board shall mean the Board of Directors of the Company.

Change of Control shall mean a change in the ownership or effective control of the Company or the Participant's Employer, or in the ownership of a substantial portion of the assets of the Company or the Participant's Employer.  The definition of “Change of Control” shall be construed in a manner consistent with Code Section 409A(a)(2)(A)(v) and the Treasury Regulations thereunder and applicable guidance.     

Code shall mean the Internal Revenue Code of 1986, as amended from time to time.    

Committee shall mean the Company's Benefits Committee.

Company shall mean TrueBlue, Inc.

Compensation shall mean an employee's gross salary, wages and bonuses for personal services actually rendered in the course of employment with the Employer prior to reductions for the Participant's elective contributions under this Plan, or any other plan of the Employer permitting elective deferrals.  

Compensation Threshold shall mean the dollar limit for the definition of a highly compensated employee under Code Section 414(q)(1)(B) (as adjusted by the Secretary of the Treasury).

Deferral Election shall mean the agreement executed by an eligible employee whereby an Eligible Employee elects to defer a portion of the applicable calendar year's Eligible Compensation and contains such other information as is required by the Committee including an election as to the form of payment and date, if the employee desires to credit amounts to a Specified Date Account.  The applicable calendar year shall be the Plan Year that begins after the Plan Year in which the Deferral Election is made.  

Disability - a Participant is disabled if the Committee determines that either of the following applies:

(i)    The Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or

(ii)    The Participant is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of the Company.

The foregoing definition of Disability shall be construed in a manner consistent with Code Section 409A(a)(2)(C) and the Treasury Regulations thereunder and applicable IRS guidance.

Discretionary Employer Contribution Account shall mean the amount an Employer decides in its sole discretion to credit a Participant's Account pursuant to Section 3.3.2 plus deemed investment earnings and gains and minus deemed investment losses and expenses, except to the extent that a Participant has made a timely election to have some or all of his or her discretionary employer contributions for  a Plan Year (plus deemed investment earnings and gains and mines deemed investment losses and expenses) credited to a Specified Date Account.

Elective Deferral Account shall mean the amount of Eligible Compensation a Participant elects to defer to this Plan pursuant to Section 3.2 plus deemed investment earnings and gains and minus deemed investment losses and expenses, except to the extent that a Participant has made a timely election to have some or all of his or her Eligible Compensation deferred for  a Plan Year (plus deemed investment earnings and gains and minus deemed investment losses and expenses) credited to a Specified Date Account.

Eligible Compensation shall mean an Active Participant's base salary, sales commissions, Incentive Bonus, Annual Bonus, and other bonuses that may be paid to Eligible Employees by Employer.  

Eligible Employee shall mean 

		
	(a)
	an employee of the Employer who is a Highly Compensated Employee; 

		
	(b)
	a newly hired employee of the Employer whose base salary is reasonably expected, upon commencement of employment, to exceed the Compensation Threshold during the Plan Year, regardless of whether or not the employee received Compensation in excess of the Compensation Threshold in the prior Plan Year; and

		
	(c)
	an employee promoted during the prior Plan Year whose base salary is reasonably expected, upon the effective date of the promotion, to exceed the Compensation Threshold during the Plan Year, regardless of whether or not the employee received Compensation in excess of the Compensation Threshold in the prior Plan Year.  

Notwithstanding the foregoing, employees who provide temporary labor or services to the Employer's clients (i.e., are paid from a payroll system for temporary workers) are not eligible to participate in the Plan even if they are Highly Compensated Employees.             

Employer shall mean the Company and affiliates of the Company for whom an eligible employee performs services.  An affiliate is a corporation or other entity that has been designated by the Committee as a participating employer in this Plan and thus such affiliate's employees who otherwise meet the eligibility threshold would be eligible to participate in the Plan.

Highly Compensated Employee shall mean an employee who

(a)     was a five percent owner (as defined in Code Section 416(i)) during the current Plan Year or prior Plan Year; or 
(b)    received Compensation during the prior Plan Year in excess of the dollar limit for the definition of a highly compensated employee under Code Section 414(q)(1)(B) (as adjusted by the Secretary of the Treasury).; or 
(c)    received Compensation during two of the past three Plan Years that was in excess of the dollar limit under Code Section 414(q)(1)(B) for such Plan Years and is expected to receive Compensation during the next Plan Year that will exceed the dollar limit under Code Section 414(q)(1)(B) for that Plan Year. 
For purposes of this definition of Highly Compensated Employee, the term “Compensation” means the sum of all amounts treated as compensation under Code Section 415(c)(3). 
Hour of Service shall mean an hour of service as defined in ERISA under 29 United States Code Section 2530.200b-2.

Incentive Bonus shall mean amounts paid to an Active Participant that are in addition to the Active Participant's base salary and are not an Annual Bonus including, but not limited to brand bonuses, Net 

Operating Income Bonuses, and other incentive pay that is paid in periodic installments throughout the calendar year.  

Matching Contribution Account shall mean the amount of employer match credited to a Participant's Account pursuant to Section 3.3.1 plus deemed investment earnings and gains and minus deemed investment losses and expenses, except to the extent that a Participant has made a timely election to have some or all of his or her employer matching contributions for  a Plan Year (plus deemed investment earnings and gains and mines deemed investment losses and expenses) credited to a Specified Date Account. 

Participant shall mean an Eligible Employee who becomes a Participant in this Plan in accordance with the provisions of Section 3.  An Eligible Employee who has become a Participant shall be considered to continue as a Participant in this Plan until the date of the Participant's death (or other event set forth in section 5.2) or, if earlier, the date when the Participant incurs a Separation from Service and upon which the Participant no longer has any Account under this Plan (that is, the Participant has received a payment of all of the Participant's Account).  However, a Participant may only defer Eligible Compensation to the Plan received in Plan Years in which the Participant is an Eligible Employee.

Plan shall mean this nonqualified and unfunded program established and maintained by the Company for the benefit of Participants eligible to participate therein, as set forth in this Plan document.  The Plan shall be referred to as the TrueBlue, Inc. Nonqualified Deferred Compensation Plan.

Plan Year shall mean the calendar year (i.e., the twelve month period beginning on each January 1 and ending on the following December 31).  

Seniority Date shall, for contributions made to the Plan on or after January 1, 2013, mean the date on which the Participant has attained age 65 or attained age 40 and completed 5  years of service with the Employer.         
 
Separation from Service shall mean a termination of employment with the employee's Employer or the employee's death.  The term Separation from Service shall be construed in a manner consistent with Code Section 409A(a)(2)(A)(i) and the Treasury Regulations thereunder and applicable guidance from the Internal Revenue Service (“IRS”).

Specified Date Account shall mean the amount a Participant elects to defer to a specified date, plus deemed investment earnings and gains and minus deemed investment losses and expenses. 

        
SECTION 2

ADMINISTRATION

2.1.    Administration.  This Plan shall be administered by the Committee.  The Committee shall have full discretionary power and authority to administer and interpret the Plan, determine all factual and legal questions under the Plan (including, without limitation, interpreting the Plan and determining a Participant's eligibility to participate in the Plan and the amount of benefits, if any, owed to the Participant or his or her Beneficiary), maintain records, determine deemed investment sources and generally be responsible for seeing that the purposes of the Plan are accomplished.  Determinations by the Committee shall be final and binding on all parties with respect to all matters relating to the Plan.  The Committee may from time to time adopt such rules and procedures as it deems appropriate to assist in the administration of the Plan.  The Committee may delegate all or part of its administrative duties to one or more persons, whether or not such persons are members of the Committee or employees of the Company.

2.2.    Books and Records.  The Committee shall maintain records of each Participant's Account balance.

2.3.    Liability.  No current or former member of the Committee and no director, officer or member of the Board of the Company or its affiliates shall be liable to any persons for any actions taken under the Plan, or for any failure to effect any of the objectives or purposes of the Plan, by reason of insolvency or otherwise.  Neither the officers nor any current or former member of the Committee or the Board of Directors of the Company or any of its affiliates in any way secures or guarantees the payment of any benefit or amount which may become due and payable hereunder to or with respect to any Participant.  Each Participant and other person entitled at any time to payments hereunder shall look solely to the assets of the Employer for such payments as an unsecured, general creditor.  Nothing herein shall be construed to give a Participant, Beneficiary or any other person or persons any right, title, interest or claim in or to any specific asset, fund, reserve, account or property of any kind whatsoever owned by the Employer or in which it may have any right, title or interest now or in the future.  After benefits shall have been paid to or with respect to a Participant or Beneficiary (as applicable) and such payment purports to cover in full the benefit hereunder, such former Participant or Beneficiary or other person or persons, as the case may be, shall have no further right or interest in the other assets of the Employer and its affiliates in connection with this Plan.

SECTION 3

ELIGIBILITY; DEFERRAL ELECTION; EMPLOYER CONTRIBUTIONS

3.1.    Eligibility.  An employee who is an Eligible Employee for a Plan Year shall be eligible to participate in the Plan for the Plan Year. A Participant who is a Highly Compensated Employee for one Plan Year will cease to be an Active Participant for a subsequent Plan Year if he or she is no longer a Highly Compensated Employee.  

3.2.    Deferral Elections.  An Active Participant may elect to participate for each Plan Year by completing a Deferral Election in a form prescribed by the Committee, signing it and returning it to the Committee, or the Committee's designee, within the time periods prescribed below.  The Deferral Election shall authorize the Employer to withhold from the Active Participant's Eligible Compensation a designated percentage amount to be deferred up to the maximum amount described below. 

3.2.1    Base Salary, Commissions, Incentive Bonuses, and other bonuses.  To be effective for a Plan Year, a Deferral Election to defer a portion of an Active Participant's base salary, commission, Incentive Bonus or other bonus must be returned no later than the December 31 immediately preceding the Plan Year. All such Deferral Elections are irrevocable for the Plan Year for which the Deferral Election is made and cannot be changed or revoked after December 31 prior to the Plan Year. An Active Participant who completed a Deferral Election shall be permitted to increase, decrease or eliminate such election on or before December 31 immediately preceding the Plan Year.  For example, employees of the Employer who in 2010 have Compensation of at least $110,000 will be eligible to enroll in the Plan and complete a Deferral Election no later than December 31, 2010 to defer Eligible Compensation that would otherwise be earned and paid in 2011.  For administrative purposes, the Committee may set deadlines for submitting Deferral Election prior to December 31 of the preceding year. 

3.2.2    Annual Bonuses.  An irrevocable Deferral Election may be made on or before the date that is six months before the end of the performance period, provided that the employee performs services continuously from the later of the beginning of the performance period or the date the performance 

criteria are established through the date an election is made under this Section 3.2.2, and provided further that in no event may an election to defer an Annual Bonus be made after such compensation has become readily ascertainable.  For example, if the performance period is January 1, 2011 through December 31, 2011, a Deferral Election relating to the Annual Bonus for that performance period shall be made no later than June 30, 2011. 

3.2.3    First Year Eligibility.  An Active Participant who first becomes eligible to participate in the Plan during a Plan Year may make a Deferral Election within 30 days after the date the employee becomes an Eligible Employee with respect to Eligible Compensation paid for services to be performed after the election.  For an Annual Bonus, where a deferral election is made in the first year of eligibility but after the beginning of the performance period, the election must apply only to the portion of the Annual Bonus paid for services performed after the election.  

3.2.4    Invalid Elections.  A Deferral Election completed by an employee who is not an Eligible Employee as of December 31 shall be automatically null and void as of such date.  For example, if an employee completed a Deferral Election in December 2012 in anticipation of being a Highly Compensated Employee by the end of 2012 and the employee, in fact, did not earn more than the Compensation Threshold by December 31, 2012 and did not earn more than the Compensation Threshold in two of the last three Plan Years, the Deferral Election completed in December 2012 for the 2013 Plan Year would be null and void on December 31, 2012.

3.2.5    Maximum Deferral.  The Deferral Election shall authorize the Employer to withhold from the Active Participant's Eligible Compensation a designated percentage amount to be deferred to a maximum of seventy-five percent (75%) of the Active Participant's annual base salary and one-hundred percent (100%) of the Active Participant's Annual Bonus, Incentive Bonus, other bonuses, or commissions. 

3.2.6.  Specified Date Elections.  An Active Participant may elect, at the time of a Deferral Election, a specific taxable year upon which she or he will receive the Eligible Compensation deferred in the Plan Year that the election applies to, as adjusted for deemed investment returns, which shall be at least two years from the date the amount is credited to the Participant's Specified Date Account.  If a Participant elects a specified date, he or she must also elect whether the Specified Date Account will be distributed upon such taxable year in a single lump sum or in installments over a term of up to five years beginning on such taxable year. Notwithstanding the foregoing if, prior to the specified date, a Participant dies, become Disabled, Separates from Service prior to the Participant's Seniority Date, or there is a Change of Control, the Participant's Account will be paid at the time and in the form specified for such event in Section 5 and Section 6 below.  

3.2.7  Form of Payment.  An Active Participant shall, at the time of the Deferral Election, elect whether to receive his or her Account following a Separation from Service on or after his or her Seniority Date in a single lump sum or in installments over a term not to exceed ten years.  For all other payment events, the Participant's Account shall be paid in a single lump sum pursuant to Sections 5 and 6. 
 
3.3    Employer Contributions.

3.3.1.  Matching Contributions.

An Active Participant shall be eligible to earn matching contributions under this Plan.  Matching contributions will only be made on elective deferrals of Eligible Compensation made to this Plan.  Notwithstanding the foregoing, if a Participant contributes to both this 

Plan and a 401(k) plan sponsored by an Employer in the same Plan Year and receives a matching contribution under the 401(k) plan, the Participant is not eligible to receive a matching contribution under this Plan for that Plan Year.

The Company will determine in its sole discretion each year whether a match will be made for a Plan Year, which classes of Participants will be eligible to earn a match and the amount of any such match.  Matching contribution formulas can be different for different classes of employees, and different for employees of the Company versus employees of certain affiliates of the Company.  Matching contributions shall be 100% vested when made.            

         3.3.2    Discretionary Employer Contributions

Each Employer may, in its sole discretion, from time to time award one or more Active Participants additional credits to their Accounts.  Which Active Participants shall receive such an award, the amount of such an award, and the vesting schedule, if any, that is applicable to the award, are determined by the Employer making the award in its sole discretion.  An Employer that chooses to make an employer contribution award need not (i) give an award to each Active Participant it employs, or (ii) award the same dollar amount or percentage of Eligible Compensation to each Active Participant receiving an award.

3.3.3    Form and Time of Payment of Employer Contributions.  

A Participant's elections for a distribution on a specified date and for a distribution following a Separation from Service after attaining his or her Seniority Date shall also apply to employer contributions made for the same Plan Year.  For example, if a Participant elected to defer 25% of his or her Eligible Compensation earned in 2011 and to receive such amount (plus deemed investment earnings and gains and minus deemed losses and expenses on such amount) on January 1, 2015, employer contributions made for 2011 would also be distributed on January 1, 2015.  

3.4    FICA Taxes.  Amounts due for FICA taxes and other similar taxes and fees on the elected deferrals or employer contributions will be withheld from the Participant's remaining salary and bonuses. 

3.5    Cancellation Due to Unforeseeable Emergency.  A Participant may elect to cancel the Participant's Deferral Election due to an unforeseeable emergency.  The Deferral Election must be cancelled, not merely postponed or otherwise delayed.  Any subsequent Deferral Election will be subject to the provisions governing initial deferral elections.  For this purposes, an “unforeseeable emergency” means an unforeseeable emergency as defined in Section 7.1.1.

        
SECTION 4

DEFERRED COMPENSATION ACCOUNT

4.1.    Account.  Each Participant shall have an Account in this Plan.  Amounts withheld by the Employer pursuant to Section 3.2 or otherwise credited pursuant to Section 3.3 shall be credited to the Participant's Account as of a date determined by the Committee.  A Participant's “Account balance” shall be all amounts credited to the Participant's Account under this Section 4.1 plus any adjustments made under Section 4.2.  A Participant's Account shall be 100% vested and nonforfeitable at all times.  

4.2.    Deemed Investment Return; Expenses.  From time to time, the Committee in its sole and exclusive discretion shall designate the investment funds that will be available to Participants as deemed investment options under the Plan (“investment funds”).  
            
Participants' Accounts will be credited with investment earnings and gains and debited with investment losses and expenses based upon the performance of the investment funds into which they elect to have their Accounts deemed invested and any deemed expenses which are charged to the Accounts.   The Committee may change the funds that are investment funds at any time in its sole discretion by designating new funds as investment funds and removing existing funds from the list of investment funds.  The Company is not required to actually invest any money in the investment funds, but instead the investment funds are merely used to calculate the deemed investment returns to be credited and debited to a Participant's Account from time to time by multiplying the rate of investment return in the Participant's investment funds against the Participant's Account balance.  If the Company does invest its assets in one or more of the investment funds, such investments shall be owned solely by the Company and neither the Participant nor his or her beneficiary shall have any interest in or claim against such investments.  The Committee shall decide in its sole discretion how often Participants' Accounts will be adjusted to reflect the investment results of the investment funds and any deemed expenses charged to the Accounts, and the method of applying the investment performance of the investment funds and the deemed expenses against Account balances. 
        
            
SECTION 5

PAYMENT AMOUNT, TIME AND MANNER OF PAYMENT

5.1.    Specified Date Accounts.  If a Participant has elected a specified date, pursuant to Section 3.2.1, the Participant's Specified Date Account shall be distributed or begin to be distributed on the specified date in the form elected by the Participant.  

5.2.    Payment Events.  A Participant's Account shall mature and be payable on the earliest to occur of the following events:
 
(a)the Participant's death;

(b)the Participant's Disability;

(c)the Participant's Separation from Service prior to the Participant's Seniority Date; provided however that in the case of any Specified Employee, the distribution may not be made before the date which is 6 months after the date of the Participant's Separation from Service (or, if earlier, the date of death or Disability of the Participant).  A “Specified Employee” is a key employee (as defined in Code section 416(i) without regard to paragraph (5) thereof) of the Company or any affiliate thereof, if the stock of the Company is publicly traded on an established securities market or otherwise.  “Specified Employee” shall be construed in a manner consistent with Code Section 409A(a)(2)(B)(i) and the Treasury Regulations thereunder and applicable IRS guidance; or

(d)a Change of Control (if elected by the Participant in his or her Deferral Election). 

        
5.3.    Form of Payment.  Distribution of the Participant's Account due pursuant to a payment event described in Section 5.2 (less applicable tax withholdings) will be made in one cash lump sum within 

30 days after the Participant's Account matures.  If a Participant's Separation from Service occurs after the Participant has attained his or her Seniority Date and the Participant's Account exceeds $5,000, the Participant's Account shall be paid in a single lump sum or installments shall commence within 30 days after the Separation from Service in accordance with the Participant's specified date election made at the time of the Deferral Election.  If a Participant's Separation from Service occurs after the Participant has attained his or her Seniority Date but the Participant's vested Account balance is $5,000 or less, his or her vested Account Balance shall be distributed in a single lump sum within 30 days after the Separation from Service. 

5.4.    Withholding.  The Company may withhold from any payments under Sections 5, 6 or 7 of this Plan any deductions required by law.

5.5.    Payment by Employing Entity.  A Participant's Payment Amount shall be payable by the Employer for whom the Participant was most recently employed when the Account matured.  

SECTION 6

DEATH OR DISABILITY

6.1.    Payment.  A Participant's Payment Amount payable on the Participant's death or disability are subject to the following provisions:

6.2.    Death.  On death, the Payment Amount shall be paid by single cash lump sum to the Beneficiary within 30 days after the Participant's death.

6.3.    Beneficiaries.  An amount payable on death of a Participant shall be paid to the Participant's surviving Beneficiary or Beneficiaries or, if there are none, to the Participant's estate.

6.4.    Beneficiary Designation.  A Participant shall submit to the Company upon first becoming a Participant and at such other times as the Participant desires, on a form provided by the Committee, a written designation of the beneficiary or beneficiaries to whom payment of the Participant's vested Account under the Plan shall be made in the event of the Participant's death.  Beneficiary designations shall become effective only when received by the Company.  Beneficiary designations first received by the Company after the Participant's death, and any designations in effect at the time a valid subsequent designation is received by the Company, shall be invalid and have no effect.

6.5.    Disability.  The Payment Amount shall be paid by a single cash lump sum to the Participant within 30 days after the date the Committee determines the Participant has incurred a Disability.

        
SECTION 7

WITHDRAWALS

7.1    Distributions for Unforeseeable Emergencies.  A Participant may request a distribution of amounts from the vested Account balance before his or her Account has matured in the event the Participant has an unforeseeable emergency, subject to the limitations set forth herein:

7.1.1.     “Unforeseeable emergency” means a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant's spouse, or a dependent (adas defined in section 152(a) of the Code) of the Participant, loss of the Participant's property due to 

casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.

7.1.2.    A Participant who receives a distribution due to an unforeseeable emergency pursuant to this Section shall have any Deferral Election that is in effect under this Plan for the Plan Year in which the distribution is received cancelled for the remainder of the Plan Year.

7.1.3.    The amounts distributed with respect to an emergency shall not exceed the amounts necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant's assets (to the extent the liquidation of such assets would not itself cause severe financial hardship), and the fact that any Deferral Election in effect for the Participant for the Plan Year in which the distribution for the unforeseeable emergency will be made will be cancelled for the remainder of such Plan Year.

7.1.4.    The Committee shall establish guidelines and procedures for implementing withdrawals consistent with Code Section 409A(a)(2)(B)(ii) and the Treasury Regulations thereunder and any applicable IRS guidance.  An application shall be written, be signed by the Participant and include a statement of facts causing the unforeseeable emergency and any other facts required by the Committee.

7.1.5.    The withdrawal amount and date shall be fixed by the Committee.  The Committee may require a minimum advance notice and may limit the amount, time and frequency of withdrawals.

The foregoing shall be construed in a manner consistent with Code Section 409A(a)(2)(B)(ii) and the Treasury Regulations thereunder and applicable IRS guidance.

SECTION 8

AMENDMENT; TERMINATION

8.1.    Amendment and Termination.  The Plan may be amended or terminated at any time through action by the Board or by the Committee; provided, however, that no amendment, discontinuance or termination of the Plan will, without the consent of any persons affected thereby, alter or impair the rights of any Participant or Beneficiary accrued prior to such amendment, discontinuance, or termination.  No amendment, discontinuance or termination of the Plan shall affect or otherwise accelerate the timing, form and manner of benefits payments of Account balances in existence as of the date such amendment, discontinuance or termination is adopted by the Board or Committee, but instead such payments shall occur in accordance with the terms of the Plan in effect at the time such resolution is adopted.  Freezing or terminating this Plan shall not cause the vesting of Account balances under this Plan to be accelerated unless the amendment expressly states that vesting shall be accelerated.

8.2.    Payment.  If the Internal Revenue Service issues a final ruling that any amounts deferred or otherwise credited under this Plan will be subject to current income tax due to a failure to comply with Code Section 409A, all amounts to which the ruling is applicable shall be paid to the Participants within 30 days after such final ruling.

SECTION 9

CLAIMS PROCEDURE

9.1.    Initial Claim.  Any person (“Claimant”) claiming a benefit or requesting an interpretation, ruling or information under the Plan shall present the request in writing to the Committee. The Committee may, in its discretion and at any stage of the claims process, hold one or more hearings.  The Claimant may, at the Claimant's own expense, have an attorney or other representative act on the Claimant's behalf; provided that a written authorization is presented to the Committee.  

9.2.    Timing of Initial Decision.  Within 90 days after the Claimant delivers the claim (45 days in the case of a claim based upon Disability), the Claimant will receive either: (a) a decision; or (b) a notice for extension describing special circumstances requiring additional time to process the claim (up to 180 days from the day the Claimant delivered the claim or, in the case of a claim based upon Disability, up to two 30-day extensions for a total maximum processing time of 105 days from the day the Claimant delivered the claim).  Any notice for extension will describe the special circumstances (such as the need to hold a hearing) requiring more time and the date by which the Committee expects to render a decision.  

9.3.    Content of Initial Decision.  If the Claimant's claim is denied in whole or in part, the Claimant will receive a written notice specifying: (a) the reasons for the denial; (b) the Plan provisions on which the denial is based; (c) any additional information needed from the Claimant in connection with the claim and the reason such information is needed; and (d) an explanation of the claims review procedure and the applicable time limits, including a statement of the claimant's right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on appeal.  The time limits for making a decision on the Claimant's claim will be frozen until any necessary additional information is received by the Committee.
 
9.4.    Appeal.  To appeal a benefit claim decision, the Claimant must deliver the Claimant's written request for review to the Committee within 60 days (180 days for the denial of a claim based upon Disability) of the date the Claimant received the initial claim denial. The Claimant's written request for review may (but is not required to) include issues, comments, documents, and other records the Claimant wants considered in the review.  All the information the Claimant submits will be taken into account on appeal, even if it was not reviewed as part of the initial decision.  The Claimant may ask to examine or receive free copies of all pertinent Plan documents, records, and other information relevant to the Claimant's claim by asking the Committee.  If the Claimant fails to deliver the written request for review to the Committee within 60 days (180 days for a Disability claim) of the date the Claimant received the initial claim denial, the Claimant shall forever forfeit his or her right to appeal the claim either to the Committee or to a court.

9.5.    Timing of Decision Upon Appeal.  Within 60 days (45 days for a claim based upon Disability) after the Claimant delivers the request for review, the Claimant will receive either: (a) a decision; or (b) a notice for extension describing special circumstances requiring additional time to process the Claimant's claim (up to 120 days from the day the Claimant delivered the request for review or, in the case of a claim based upon Disability, up to 90 days from the day the Claimant delivered the request for review).  Any notice for extension will describe the special circumstances (such as the need to hold a hearing) requiring more time and the date by which the Committee expects to render a decision on appeal.  

9.6.    Content of Decision Upon Appeal.  The decision on the Claimant's  appeal will be in writing and will specify:  (a) the reasons for the decision;  (b) the Plan provisions on which the decision is based; and (c) any documents, records or other information relevant to the Claimant's claim.  

9.7.    Final Decision.  All decisions on appeal are final and binding on all parties.

    
SECTION 10

GENERAL PROVISIONS

10.1.    Attorneys' Fees.  If a suit or action is instituted to enforce any rights under this Plan, the prevailing party may recover from the other party reasonable attorneys' fees at trial and on any court appeal.

10.2.    Notices.  Any notice under this Plan shall be in writing and shall be effective when actually delivered or, if mailed, when deposited as first class mail postage prepaid.  Mail shall be directed to the Company at the address stated in this Plan, to the Participant's last known home address shown in the Company's records, or to such other address as a party may specify by notice to the other parties.  Notices to an Employer or the Committee shall be sent to the Company's address.

10.3.    Nontransferability.  The rights of a Participant under this Plan are personal.  Except for the limited provisions of Section 6, no interest of a Participant or one claiming through a Participant may be directly or indirectly assigned, alienated, pledged, transferred or encumbered and no such interest shall be subject to seizure by legal process, attachment, garnishment, execution following judgment or in any other way subjected to the claims of any creditor.  The foregoing limitation precludes, among other things, a Participant who is getting (or has gotten) a divorce from transferring any portion of his or her interest under this Plan to his or her spouse or ex-spouse (except by naming the spouse or ex-spouse as a Beneficiary pursuant to Section 6).

10.4.    Not an Employment Contract.  This Plan is not and shall not be deemed to constitute a contract of employment between the Company and any employee or other person, nor shall anything herein contained be deemed to give any employee or other person any right to be retained in the Company's employ or in any way limit or restrict the Company's right or power to discharge any employee or other person at any time and to treat him without regard to the effect which such treatment might have upon the employee as a Participant in the Plan.

10.5.    Successors.  Amounts payable under this Plan shall be an obligation of the Employer and successors of the Employer and shall constitute mere unfunded, unsecured promises by the Employer to pay cash compensation to the Participants.  The Company and its affiliates that constitute the Employer shall be jointly and severally liable for benefit payments to Participants under this Plan.  In the event a Participant's employer becomes insolvent, a Participant may bring a claim for benefits under this Plan against the Company or any affiliate of the Company that is an Employer under this Plan. 

10.6.    Incompetence.  The Committee may decide that because of the mental or physical condition of a person entitled to payments, or because of other relevant factors, it is in the person's best interest to make payments to others for the benefit of the person entitled to payment.  In that event, the Committee may in its discretion direct those payments to be made as follows:

(a)    To a parent or spouse or a child of legal age;

(b)    To a legal guardian; or

(c)    To one furnishing maintenance, support, or hospitalization.

10.7.    Governing Law.  Except to the extent that federal law is controlling the Plan shall be construed and entered in accordance with and governed by the laws of the State of Washington.  Invalidation of any one of the provisions of the Plan for any reason shall in no way affect the other provisions hereof, and all such other provisions shall remain in full force and effect.

10.8.    Unsecured General Creditor.  Any amount allocated to a Participant's Account balance under this Plan shall be an unfunded, unsecured promise of the Employer to make payments in the future.  Participants and their beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interest or claims in any property or assets of the Employer or any affiliate thereof.  Any and all of the Employer's assets shall be, and remain, the general, unpledged, unrestricted assets of the Employer.  One or more of the entities constituting the Employer may choose (but are not required) to contribute assets to a rabbi trust, the assets of which will be subject to the claims of such entity's creditors in the event of insolvency.  The Employer may, but shall not be required to, establish a reserve of assets to provide funds for payments under this Plan.  Establishing a reserve or rabbi trust shall have no effect on the operation of this Plan or upon the status of Participants as unsecured general creditors of the Employer.  Rights to payments will not be limited to assets held in any reserve or rabbi trust.

10.9.  Effective Date.  This amended and restated Plan shall be effective December 1, 2012.

TRUEBLUE, INC.

Date Signed:  November 14, 2012            By:  /s/ Kimberly A. Cannon                        
                            
Its:   EVP, Chief Human Resource Officer

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