SEC Contract Filing

Filing Date: 2017-02-23

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>ex103siersemploymentagreem.htm
<DESCRIPTION>EXHIBIT 10.3 EMPLOYMENT AGREEMENT-SIERS
<TEXT>
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<div><a name="sF40DB10E52A2ED70186D5E844AD0097D"></a></div><div></div><div><br></div><div style="line-height:120%;text-align:right;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Exhibit 10.3</font></div><div style="line-height:120%;text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">EMPLOYMENT AGREEMENT</font></div><div style="line-height:120%;text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">(Farmer Bros. Co. / Siers)</font></div><div style="line-height:120%;padding-bottom:14px;text-align:center;text-indent:432px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;text-decoration:underline;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;padding-bottom:14px;text-align:justify;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">This Employment Agreement (&#8220;Agreement&#8221;) is made and entered into as of February 17, 2017 between FARMER BROS. CO., a Delaware corporation (the &#8220;Company&#8221;), and SCOTT SIERS (&#8220;Siers&#8221;), who agree as follows:</font></div><div style="line-height:120%;padding-bottom:14px;text-align:justify;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">1.&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Employment</font><font style="font-family:inherit;font-size:11pt;">: The Company hereby employs Siers, and Siers accepts employment from the Company, on the terms and conditions herein stated.</font></div><div style="line-height:120%;padding-bottom:14px;text-align:justify;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">2.&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Term of Employment:</font><font style="font-family:inherit;font-size:11pt;">&#32;The term of Siers&#8217;s employment under this Agreement will commence on February 20, 2017 (the &#8220;Commencement Date&#8221;) and shall end when terminated under Section 7 below.</font></div><div style="line-height:120%;padding-bottom:14px;text-align:justify;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">3.&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Duties</font><font style="font-family:inherit;font-size:11pt;">: Siers shall serve as the Company&#8217;s Senior Vice President and General Manager &#8211; Direct Ship, reporting to the Chief Executive Officer (&#8220;CEO&#8221;). As such, his general responsibilities include general management and leadership of the Company&#8217;s national sales/direct ship organization including strategy, planning, organizational design, and process improvement. In addition to his general responsibilities, Siers shall also perform such other duties as are consistent with his position and as are directed by the Company&#8217;s CEO or Board of Directors (&#8220;Board&#8221;). Siers shall devote to the Company&#8217;s business substantially all of his working time. Service as a director of organizations shall require approval of the Board. </font></div><div style="line-height:120%;padding-bottom:14px;text-align:justify;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">4.&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Base Salary</font><font style="font-family:inherit;font-size:11pt;">: Siers shall receive an annual base salary of $290,000 payable in accordance with the Company&#8217;s normal payroll practice. The annual base salary amount shall be reviewed annually by the Company and can be adjusted upward or downward by the Company from time to time but shall not be reduced below $290,000 per annum.</font></div><div style="line-height:120%;padding-bottom:14px;text-align:justify;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">5.&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Bonuses</font><font style="font-family:inherit;font-size:11pt;">: Siers shall be entitled to participate in the Company&#8217;s 2005 Incentive Compensation Plan, as the same may be amended from time to time, or any successor plan (&#8220;Plan&#8221;) each year, commencing with the Company&#8217;s 2017 fiscal year, so long as the Plan remains in effect and one or more of the Company&#8217;s other executive officers who are full-time Company employees (&#8220;Senior Executives&#8221;) also participate. Under the terms of the Plan, the Compensation Committee will, in its discretion, determine the Performance Criteria, as defined in the Plan, and all other variables by which Siers&#8217;s bonus for such year under the Plan will be measured. The Target Award, as defined in the Plan, shall be an amount equal to fifty-five percent (55%) (the &#8220;Applicable Percentage&#8221;) of Siers&#8217;s base annual salary, except that the Applicable Percentage for fiscal 2017 shall be </font><font style="font-family:inherit;font-size:11pt;font-style:italic;">prorated</font><font style="font-family:inherit;font-size:11pt;">&#32;based on Siers&#8217;s Commencement Date. The Applicab