<SEC-DOCUMENT>0001193125-12-067478.txt : 20120217
<SEC-HEADER>0001193125-12-067478.hdr.sgml : 20120217
<ACCEPTANCE-DATETIME>20120217162159
ACCESSION NUMBER:		0001193125-12-067478
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20120213
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20120217
DATE AS OF CHANGE:		20120217

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FARMER BROTHERS CO
		CENTRAL INDEX KEY:			0000034563
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS FOOD PREPARATIONS & KINDRED PRODUCTS [2090]
		IRS NUMBER:				950725980
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-34249
		FILM NUMBER:		12622933

	BUSINESS ADDRESS:	
		STREET 1:		20333 S NORMANDIE AVE
		CITY:			TORRANCE
		STATE:			CA
		ZIP:			90502
		BUSINESS PHONE:		3107875200

	MAIL ADDRESS:	
		STREET 1:		20333 SOUTH NORMANDIE AVENUE
		CITY:			TORRANCE
		STATE:			CA
		ZIP:			90502
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d302325d8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<TITLE>Form 8-K</TITLE>
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 <P STYLE="line-height:0px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P>
<P STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P STYLE="margin-top:4px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="5"><B>UNITED STATES </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="5"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="3"><B>Washington, D.C. 20549 </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center>
<P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="5"><B>FORM 8-K
</B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="4"><B>CURRENT REPORT </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="3"><B>PURSUANT TO SECTION 13 OR 15(d) OF THE </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="3"><B>SECURITIES EXCHANGE ACT OF 1934
</B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="3"><B>Date of Report (Date of earliest event reported): February&nbsp;13, 2012 </B></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="6"><B>Farmer Bros. Co. </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>(Exact Name of Registrant as Specified in Charter) </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center>
<P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Delaware</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>001-34249</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>95-0725980</B></FONT></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(State or Other Jurisdiction</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="1"><B>of Incorporation)</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(Commission</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="1"><B>File Number)</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(I.R.S. Employer</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="1"><B>Identification No.)</B></FONT></P></TD></TR>
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<TD VALIGN="top" COLSPAN="3" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>20333 South Normandie Avenue, Torrance, California</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="3" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>90502</B></FONT></TD></TR>
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<TD VALIGN="top" COLSPAN="3" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(Address of Principal Executive Offices)</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" COLSPAN="3" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(Zip Code)</B></FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>(310) 787-5200 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="1"><B>(Registrant&#146;s telephone number, including area code) </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Not
Applicable </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>(Former name or former address, if changed since last report) </B></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Check the appropriate box below if the Form&nbsp;8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425) </FONT></TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></TD></TR></TABLE>
<P STYLE="font-size:8px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="line-height:0px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P>
<P STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Item&nbsp;1.01. Entry into a Material Definitive Agreement. </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Amended and Restated Employment Agreements </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><I>Jeffrey A. Wahba </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">On February&nbsp;13, 2012, Farmer Bros. Co., a Delaware
corporation (the &#147;Company&#148;), and Jeffrey A. Wahba entered into a Second Amended and Restated Employment Agreement (the &#147;2012 Wahba Employment Agreement&#148;), pursuant to which Mr.&nbsp;Wahba will continue to serve as Interim
Co-Chief Executive Officer of the Company until the employment commencement date of a permanent Chief Executive Officer of the Company. In addition, he will continue to serve as Treasurer and Chief Financial Officer of the Company. The 2012 Wahba
Employment Agreement supersedes the Amended and Restated Employment Agreement, effective as of April&nbsp;19, 2011, as amended, between the Company and Mr.&nbsp;Wahba (the &#147;2011 Wahba Employment Agreement&#148;), with the exception that the
equity awards under the 2011 Wahba Employment Agreement which were previously disclosed on Form 8-K filed with the SEC on April&nbsp;6, 2011, will continue to be subject to the terms and conditions of the 2011 Wahba Employment Agreement. The 2011
Wahba Employment Agreement was filed as Exhibit 10.1 to the Company&#146;s Current Report on Form 8-K filed with the SEC on May&nbsp;23, 2011. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Pursuant to the 2012 Wahba Employment Agreement, Mr.&nbsp;Wahba will receive a base salary of $350,000 per annum through December&nbsp;31, 2012. On January&nbsp;1, 2013, his annual base salary will revert
to $305,000 unless otherwise mutually agreed. Mr.&nbsp;Wahba will continue to be entitled to participate in the Farmer Bros. Co. 2005 Incentive Compensation Plan (the &#147;Incentive Plan&#148;), with a Target Award (as defined in the Incentive
Plan) generally equal to fifty-five percent (55%)&nbsp;of his base annual salary. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Pursuant to the 2012 Wahba Employment
Agreement and the 2011 Wahba Employment Agreement, and in accordance with the provisions of the Farmer Bros. Co. 2007 Omnibus Plan (the &#147;Omnibus Plan&#148;), Mr.&nbsp;Wahba received the equity awards described below under Item&nbsp;5.02(e). The
equity awards will vest on the one (1)&nbsp;year anniversary of the grant date, provided Mr.&nbsp;Wahba is then employed by the Company, subject to accelerated vesting in the case of death, &#147;Permanent Incapacity,&#148; termination of employment
for other than &#147;Cause,&#148; or resignation for &#147;Good Reason,&#148; as such terms are defined in the applicable employment agreement. The equity awards under the 2012 Wahba Employment Agreement will also be accelerated on December&nbsp;31,
2012 if Mr.&nbsp;Wahba is then employed by the Company or if he has resigned without Good Reason effective December&nbsp;31, 2012 upon at least ninety (90)&nbsp;days&#146; prior notice. These awards were granted to Mr.&nbsp;Wahba by the Compensation
Committee in order to retain and motivate Mr.&nbsp;Wahba during the CEO transition period. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mr.&nbsp;Wahba&#146;s employment
may be terminated by the Company at any time with or without Cause or upon Mr.&nbsp;Wahba&#146;s resignation with or without Good Reason, death or Permanent Incapacity. Upon certain events of termination, Mr.&nbsp;Wahba is entitled to severance
benefits, including base salary continuation for one (1)&nbsp;year, partially Company-paid COBRA coverage for one (1)&nbsp;year, and an amount equal to 100% of his Target Award under the Incentive Plan, prorated for the partial fiscal year in which
the termination date occurs. Receipt of any severance amounts is conditioned upon execution of a general release of claims against the Company. The Company will also pay a prorated portion of the Target Award in the event of death or
disability.</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The foregoing description does not purport to be complete and is qualified in its entirety by the full text of the
2012 Wahba Employment Agreement which is attached hereto as Exhibit&nbsp;10.1 and incorporated herein by reference. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Patrick G. Criteser </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">On February&nbsp;13, 2012, the Company and Patrick G. Criteser entered into an Amended and Restated Employment Agreement (the &#147;2012 Criteser Employment Agreement&#148;), pursuant to which
Mr.&nbsp;Criteser will continue to serve as Interim Co-Chief Executive Officer of the Company until the employment commencement date of a permanent Chief Executive Officer of the Company. In addition, he will continue to serve as President and Chief
Executive Officer of Coffee Bean International, Inc., a subsidiary of the Company. The 2012 Criteser Employment Agreement supersedes the Employment Agreement, effective as of April&nbsp;19, 2011, between the Company and Mr.&nbsp;Criteser (the
&#147;2011 Criteser Employment Agreement&#148;), with the exception that the equity awards under the 2011 Criteser Employment Agreement which were previously disclosed on Form 8-K filed with the SEC on April&nbsp;6, 2011, will continue to be subject
to the terms and conditions of the 2011 Criteser Employment Agreement. The 2011 Criteser Employment Agreement was filed as Exhibit 10.2 to the Company&#146;s Current Report on Form 8-K filed with the SEC on May&nbsp;23, 2011. </FONT></P>

<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Pursuant to the 2012 Criteser Employment Agreement, Mr.&nbsp;Criteser will receive a base
salary of $350,000 per annum through December&nbsp;31, 2012. On January&nbsp;1, 2013, his annual base salary will revert to $256,250 unless otherwise mutually agreed. Mr.&nbsp;Criteser will continue to be entitled to participate in the Incentive
Plan, with a Target Award generally equal to fifty-five percent (55%)&nbsp;of his base annual salary. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Pursuant to the 2012
Criteser Employment Agreement and the 2011 Criteser Employment Agreement, and in accordance with the provisions of the Omnibus Plan, Mr.&nbsp;Criteser received the equity awards described below under Item&nbsp;5.02(e). The equity awards will vest on
the one (1)&nbsp;year anniversary of the grant date, provided Mr.&nbsp;Criteser is then employed by the Company, subject to accelerated vesting in the case of death, &#147;Permanent Incapacity,&#148; termination of employment for other than
&#147;Cause,&#148; or resignation for &#147;Good Reason,&#148; as such terms are defined in the applicable employment agreement, however the vesting of thirty-five thousand (35,000)&nbsp;shares subject to the equity award under the 2012 Criteser
Employment Agreement will be accelerated on June&nbsp;29, 2012 if Mr.&nbsp;Criteser is then employed by the Company or if he has resigned without Good Reason effective June&nbsp;29, 2012 upon at least thirty (30)&nbsp;days&#146; prior notice; and
the vesting of the remaining thirty-five thousand (35,000)&nbsp;shares subject to this award will be accelerated upon Mr.&nbsp;Criteser&#146;s resignation effective after June&nbsp;29, 2012 and prior to December&nbsp;31, 2012, on a pro rata basis
based on the number of services days completed in calendar year 2012 after June&nbsp;29, 2012 , or on December&nbsp;31, 2012 provided Mr.&nbsp;Criteser is then employed by the Company. These awards were granted to Mr.&nbsp;Criteser by the
Compensation Committee in order to retain and motivate Mr.&nbsp;Criteser during the CEO transition period. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mr.&nbsp;Criteser&#146;s employment may be terminated by the Company at any time with or without Cause or upon Mr.&nbsp;Criteser&#146;s
resignation with or without Good Reason, death or Permanent Incapacity. Upon certain events of termination, Mr.&nbsp;Criteser is entitled to severance benefits, including base salary continuation for one (1)&nbsp;year, partially Company-paid COBRA
coverage for one (1)&nbsp;year, and an amount equal to 100% of his Target Award under the Incentive Plan, prorated for the partial fiscal year in which the termination date occurs. Receipt of any severance amounts is conditioned upon execution of a
general release of claims against the Company. The Company will also pay a prorated portion of the Target Award in the event of death or disability.</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">The foregoing description does not purport to be complete and is qualified in its entirety by the full text of the 2012 Criteser Employment Agreement, which is attached hereto as Exhibit&nbsp;10.2 and
incorporated herein by reference. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Item&nbsp;5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of
Certain Officers; Compensatory Arrangements of Certain Officers. </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">(e)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">The disclosure in Item&nbsp;1.01 above is incorporated herein by reference. </FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">On February&nbsp;13, 2012, in accordance with the 2012 Wahba Employment Agreement, 2011 Wahba Employment Agreement, 2012 Criteser Employment Agreement, 2011 Criteser Employment Agreement and the Letter
Agreement, effective as of April&nbsp;19, 2011, between the Company and Mark A. Harding, the Company&#146;s Senior Vice President of Operations (the &#147;Harding Letter Agreement&#148;), which was filed as Exhibit 10.3 to the Company&#146;s Current
Report on Form 8-K filed with the SEC on May&nbsp;23, 2011, the Compensation Committee made the following equity awards under the Omnibus Plan: </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1px solid #000000;width:20pt"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Name</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="border-bottom:1px solid #000000;width:37pt"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Agreement</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Shares&nbsp;of<BR>Common&nbsp;Stock<BR>Issuable Upon<BR>Exercise&nbsp;of&nbsp;Options</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Shares of<BR>Restricted&nbsp;Stock</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD></TR>


<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Jeffrey&nbsp;A.&nbsp;Wahba</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">2012 Wahba Employment Agreement</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">50,000</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">20,000</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">2011 Wahba Employment Agreement</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">15,000</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Patrick&nbsp;G.&nbsp;Criteser</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">2012 Criteser Employment Agreement</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">70,000</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">2011 Criteser Employment Agreement</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">15,000</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mark&nbsp;A.&nbsp;Harding</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Harding Letter Agreement</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">20,000</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#151;&nbsp;&nbsp;</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The stock options have an exercise price equal to $10.82 per share, which was the closing price of the
Company&#146;s common stock as reported on the Nasdaq Global Market on February&nbsp;13, 2012, the date of grant.&nbsp;The </FONT></P>

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<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
stock options have a seven year term expiring on February&nbsp;13, 2019. The stock options and restricted stock vest on February&nbsp;13, 2013, subject to accelerated vesting in the case of
death, permanent incapacity and certain events relating to termination of employment as provided in the applicable employment agreement or arrangement and the award agreement. The stock options were granted under the Omnibus Plan pursuant to the
Company&#146;s form of Stock Option Grant Notice and Stock Option Agreement, which was previously filed as Exhibit 10.1 to the Company&#146;s Current Report on Form 8-K filed with the SEC on February&nbsp;26, 2008 and incorporated herein by
reference. The award of restricted stock was granted under the Omnibus Plan pursuant to the Company&#146;s form of Restricted Stock Award Grant Notice and Restricted Stock Award Agreement, which was previously filed as Exhibit 10.2 to the
Company&#146;s Current Report on Form 8-K filed with the SEC on February&nbsp;26, 2008 and incorporated herein by reference. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Item&nbsp;9.01. Financial Statements and Exhibits. </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>(d)</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Exhibits</B> </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE" ALIGN="center">


<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD WIDTH="90%"></TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1px solid #000000;width:39pt"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Exhibit&nbsp;No.</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="border-bottom:1px solid #000000;width:39pt"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Description</B></FONT></P></TD></TR>


<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP><FONT STYLE="font-family:Times New Roman" SIZE="2">10.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Second Amended and Restated Employment Agreement, effective as of February 13, 2012, by and between Farmer Bros.&nbsp;Co. and Jeffrey A. Wahba*</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP><FONT STYLE="font-family:Times New Roman" SIZE="2">10.2</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Amended and Restated Employment Agreement, effective as of February 13, 2012, by and between Farmer Bros.&nbsp;Co. and Patrick G. Criteser*</FONT></TD></TR>
</TABLE> <P STYLE="line-height:8px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">*Management</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">contract or compensatory plan or arrangement. </FONT></TD></TR></TABLE>

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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>SIGNATURE </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dated: February&nbsp;17, 2012 </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE">


<TR>
<TD WIDTH="6%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="92%"></TD></TR>


<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0px;margin-bottom:1px; margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">FARMER BROS. CO.</FONT></P></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/S/ JEFFREY A. WAHBA</FONT></P></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT STYLE="font-family:Times New Roman" SIZE="2">Jeffrey A. Wahba</FONT></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT STYLE="font-family:Times New Roman" SIZE="2">Interim Co-Chief Executive Officer, Chief Financial Officer and Treasurer</FONT></TD></TR>
</TABLE></DIV>

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<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>EXHIBIT&nbsp;INDEX </B></FONT></P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE" ALIGN="center">


<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD WIDTH="90%"></TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1px solid #000000;width:39pt"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Exhibit&nbsp;No.</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="border-bottom:1px solid #000000;width:39pt"><FONT STYLE="font-family:Times New Roman" SIZE="1"><B>Description</B></FONT></P></TD></TR>


<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP><FONT STYLE="font-family:Times New Roman" SIZE="2">10.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Second Amended and Restated Employment Agreement, effective as of February 13, 2012, by and between Farmer Bros.&nbsp;Co. and Jeffrey A. Wahba*</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP><FONT STYLE="font-family:Times New Roman" SIZE="2">10.2</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Amended and Restated Employment Agreement, effective as of February 13, 2012, by and between Farmer Bros.&nbsp;Co. and Patrick G. Criteser*</FONT></TD></TR>
</TABLE> <P STYLE="line-height:8px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000;width:10%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">*Management</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">contract or compensatory plan or arrangement. </FONT></TD></TR></TABLE>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>d302325dex101.htm
<DESCRIPTION>SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT
<TEXT>
<HTML><HEAD>
<TITLE>Second Amended and Restated Employment Agreement</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Exhibit 10.1 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>SECOND AMENDED AND RESTATED </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>EMPLOYMENT AGREEMENT </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>(Farmer Bros. Co. / Wahba) </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">THIS SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this &#147;Agreement&#148;) is made and entered into effective as of February&nbsp;13, 2012 (the &#147;Effective Date&#148;), between FARMER BROS.
CO., a Delaware corporation (the &#147;Company&#148;), and JEFFREY A. WAHBA (&#147;Wahba&#148;) who agree as follows: </FONT></P>
<P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>RECITALS </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, the Company and Wahba are parties to that certain Amended and Restated Employment Agreement entered into effective as of
April&nbsp;19, 2011, as amended (the &#147;Existing Agreement&#148;), whereby Wahba was employed as an Interim Co-Chief Executive Officer of the Company and the Treasurer and Chief Financial Officer of the Company. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, pending the hiring of a permanent Chief Executive Officer of the Company, the Company and Wahba desire to amend and restate the
Existing Agreement on the terms and conditions set forth herein. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, this Agreement supersedes the Existing Agreement in
its entirety except as set forth in Section&nbsp;6D below. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>AGREEMENT </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">NOW, THEREFORE, for good and valuable consideration, receipt and adequacy of which are hereby acknowledged, Wahba and the Company do
hereby agree as follows: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">1. <U>Employment</U>. The Company hereby employs Wahba, and Wahba accepts employment from the
Company, on the terms and conditions herein stated. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">2. <U>Term of Employment</U>. The term of this Agreement will commence on
the Effective Date and shall end when terminated under Section&nbsp;8 below. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">3. <U>Duties</U>. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">A. On the Effective Date and until the employment commencement date of a permanent Chief Executive Officer of the Company (the &#147;CEO
Commencement Date&#148;), Wahba shall continue to serve as an Interim Co-Chief Executive Officer of the Company, reporting to the Audit Committee (the &#147;Committee&#148;) of the Board of Directors (the &#147;Board&#148;) and, subject to the
oversight and control of the Committee and the Board, shall have responsibility for the Company&#146;s legal, accounting, finance, human resources, corporate support functions, green coffee purchasing and operation of the Spice Products division
along with such shared general powers, duties and responsibilities as are typically vested in a chief executive officer, including without limitation the shared responsibility for the development and implementation of the Company&#146;s strategic
plans and the shared responsibility for the overall management of the Company. Wahba agrees that this Agreement shall serve as written notice of resignation as Interim Co-Chief Executive Officer of the Company effective as of the CEO Commencement
Date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">B. Wahba shall continue to serve as Treasurer and Chief Financial Officer of the Company, reporting to the Board of
Directors. As such his general responsibilities shall continue to </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
include oversight responsibility for all financial (including treasury functions), accounting, and compliance functions of the Company. Compliance responsibilities include oversight
responsibility for compliance with the Company&#146;s obligations under tax, securities and other applicable laws. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">C. Wahba
shall also continue to serve as the Company&#146;s Chief Compliance Officer under the Company&#146;s Code of Conduct and Ethics and in such capacity shall also report to the Board. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">D. In addition to his general duties and responsibilities, Wahba shall also perform such other duties as are consistent with his
position(s) and as are directed by the Committee or the Board. Wahba shall devote to the Company&#146;s business substantially all of his working time. The foregoing notwithstanding, Wahba may continue to serve as a director of The Henry Wine Group
and Lightworks Optics, Inc., so long as they are not publicly-held companies, and so long as such service does not, in the reasonable judgment of the Board, adversely affect the Company. Service as a director of other for-profit organizations shall
require approval of the Board. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">E. If Wahba is still employed by the Company on the CEO Commencement Date and not otherwise
appointed as permanent Chief Executive Officer or as permanent Co-Chief Executive Officer, his title will revert to Treasurer and Chief Financial Officer, he will have such duties as are specified in subsection B, C and D above, and he will report
to the permanent Chief Executive Officer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">4. <U>Base Salary</U>. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">A. Wahba shall receive a base salary of $350,000 per annum through December&nbsp;31, 2012, payable in accordance with the Company&#146;s
normal payroll practices. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">B. On January&nbsp;1, 2013, Wahba&#146;s annual base salary shall revert to $305,000 unless
otherwise set by mutual written agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">C. If Wahba is selected as the permanent Chief Executive Officer or as permanent
Co-Chief Executive Officer, compensation will be set by mutual written agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">D. The annual base salary amount shall be
reviewed each year by the Company and may be adjusted upward or downward by the Company from time to time but shall not be reduced below the amount applicable under Section&nbsp;4A, 4B or 4C, as applicable. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">5. <U>Bonuses</U>. Wahba shall be entitled to participate in the Company&#146;s 2005 Incentive Compensation Plan or any successor plan
(&#147;Plan&#148;) each year so long as the Plan remains in effect and one or more of the Company&#146;s other executive officers who are full-time Company employees (&#147;Senior Executives&#148;) also participate. Under the terms of the Plan, the
Compensation Committee of the Board will, in its discretion, determine the Performance Criteria, as defined in the Plan, and all other variables by which Wahba&#146;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%)&nbsp;(the &#147;Applicable Percentage&#148;) of Wahba&#146;s base annual salary; provided, however, if after fiscal 2012 Wahba&#146;s base annual salary changes during a fiscal year,
Wahba&#146;s Target Award for that year shall be equal to the Applicable Percentage of twelve (12)&nbsp;times the average actual monthly base salary for such fiscal year. Wahba&#146;s Target Award for fiscal 2012 shall be the Applicable Percentage
of $350,000. Except as provided otherwise in this Section&nbsp;5, Wahba&#146;s participation in the Plan is subject to all Plan terms and conditions. Under the terms of the Plan, no bonus is earned until awarded by the Compensation Committee after
completion of the fiscal year, and the Compensation Committee may, in its discretion, reduce, entirely eliminate or increase the bonus indicated by the Performance Criteria and other Plan factors. Section&nbsp;9C(iii) is not affected by this
</FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">2 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
Section&nbsp;5. Bonuses awarded by the Compensation Committee under the Plan will be paid within ten (10)&nbsp;days after the Company files with the Securities and Exchange Commission its Form
10-K report for the fiscal year for which the bonus was awarded notwithstanding anything to the contrary in the Plan. Wahba acknowledges receipt of a copy of the Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">6. <U>Grants of Non-Qualified Stock Options</U> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">A. <U>Incentive Grant</U>. In
accordance with the provisions of the Farmer Bros. Co. 2007 Omnibus Plan (the &#147;Omnibus Plan&#148;), upon full execution of this Agreement or, if such day falls within a blackout period under the Company&#146;s Insider Trading Policy
(&#147;Blackout Period&#148;), on the first business day following the end of such Blackout Period, Wahba shall be granted fifty thousand (50,000)&nbsp;non-qualified stock options with a seven (7)&nbsp;year term at an exercise price equal to the
closing price of the Company&#146;s common stock on the grant date (the &#147;Incentive Grant&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">B. <U>Retention
Grant</U>. In accordance with the Omnibus Plan, upon full execution of this Agreement, or if such day falls within a Blackout Period, on the first business day following the end of such Blackout Period, Wahba shall be granted twenty thousand
(20,000)&nbsp;shares of restricted stock in the Company (&#147;Retention Grant&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">C. <U>Public Information</U>.
Notwithstanding the foregoing, the Incentive Grant will be delayed during such period as there exists, in the opinion of the Company&#146;s counsel, material information concerning the Company which has not been publicly disclosed. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">D. <U>Vesting</U>. The Incentive Grant and Retention Grant will vest on the one year anniversary of the grant date, provided Wahba is
then employed by the Company, subject to accelerated vesting in the case of death, &#147;Permanent Incapacity,&#148; termination of employment for other than &#147;Cause,&#148; or resignation for &#147;Good Reason,&#148; as such terms are defined
below. In addition, the Incentive Grant and Retention Grant will be accelerated on December&nbsp;31, 2012 if Wahba is then employed by the Company or if he has resigned without Good Reason effective December&nbsp;31, 2012 upon at least ninety
(90)&nbsp;days&#146; prior written notice to the Board. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">E. <U>Grant Agreements</U>. The Incentive Grant will be evidence by a
Grant Notice and Stock Option Agreement and the Retention Grant will be evidenced by a Grant Notice and Restricted Stock Agreement, both to be consistent with this Section&nbsp;6 and in the Company&#146;s usual form. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">F. <U>Prior Incentive and Retention Grants</U>. Nothing herein affects the Incentive Grant and Retention Grant to Wahba under Sections 6A
and 6B, respectively, of the Existing Agreement, which shall continue to be subject to the terms and conditions of the Existing Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">7. <U>Benefits</U> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">A. The Company will provide to Wahba all benefits and
perquisites provided by the Company from time to time to its Senior Executives, subject to the eligibility requirements and the terms and conditions of the benefit plans and perquisite policies. Included benefits and perquisites presently consist of
paid days off, group health insurance (PPO or HMO), participation in the Omnibus Plan, life insurance, business travel insurance, qualified retirement plan (subject to the pending pension freeze), 401(k) plan, employee stock ownership plan, cell
phone, company credit card, and expense reimbursement, and may include use of an automobile or an automobile allowance in accordance with Company policy for Senior Executives. Not all of the foregoing benefits are 100% Company paid. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">3 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">B. The Incentive Grant and Retention Grant are in lieu of any other grants under the Omnibus
Plan in fiscal year 2012. Thereafter, Wahba shall be entitled to such future grants under the Omnibus Plan as are awarded to him by the Compensation Committee in its discretion. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">C. The Company reserves the right to alter or discontinue any or all such benefits and perquisites, provided they are so altered or
discontinued as to all Senior Executives. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">8. <U>Termination</U> </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">A. Wahba&#146;s employment is terminable by the Company for good and sufficient cause (&#147;Cause&#148;), which shall consist only of:
(i)&nbsp;a repeated refusal to follow reasonable directions from the Committee, the Board or the permanent Chief Executive Officer, as applicable, after a warning; (ii)&nbsp;a material breach of any of Wahba&#146;s fiduciary duties to the Company (a
breach involving dishonesty or personal gain shall be deemed material regardless of the amount involved); (iii)&nbsp;conviction of a felony; (iv)&nbsp;commission of a willful violation of any law, rule or regulation involving moral turpitude;
(v)&nbsp;commission of a willful or grossly negligent act, omission or course of conduct which has a material adverse effect on the Company; or (vi)&nbsp;commission of a material breach by Wahba of this Agreement which breach, if curable, is not
cured within a reasonable time after written notice from the Committee, the Board or the permanent Chief Executive Officer, as applicable, describing the nature of the breach in reasonable detail. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">B. Wahba&#146;s employment shall terminate upon Wahba&#146;s resignation, with or without &#147;Good Reason,&#148; as defined below,
death or Permanent Incapacity. &#147;Permanent Incapacity&#148; shall be deemed to have occurred if Wahba has been unable to perform substantially all of his employment duties under Section&nbsp;3 on a substantially full time basis by reason of a
mental or physical condition for a period of ninety (90)&nbsp;consecutive days or for more than one hundred eighty days (180)&nbsp;in any period of three hundred sixty-five (365)&nbsp;consecutive days. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Good Reason shall exist only (i)&nbsp;on the Company&#146;s material breach of this Agreement, (ii)&nbsp;on a material reduction in
Wahba&#146;s responsibilities, duties or authority, other than as contemplated by Section&nbsp;3A, or (iii)&nbsp;on a relocation of Wahba&#146;s principal place of employment more than fifty (50)&nbsp;miles from its present location; provided,
however, that any such condition in subsections (i)&nbsp;through (iii)&nbsp;shall not constitute Good Reason unless both (x)&nbsp;Wahba provides written notice to the Company describing the condition claimed to constitute Good Reason in reasonable
detail within ninety (90)&nbsp;days of the initial existence of such condition, and (y)&nbsp;the Company fails to remedy such condition within thirty (30)&nbsp;days of receiving such written notice thereof; and provided, further, that in all events
the termination of Wahba&#146;s employment with the Company shall not be treated as a resignation for Good Reason unless such resignation occurs not more than one (1)&nbsp;year following the initial existence of the condition claimed to constitute
Good Reason. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">C. Wahba&#146;s employment shall terminate at the election of the Company at any time without Cause. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">9. <U>Payments upon Termination</U>. The following amounts are payable upon termination of Wahba&#146;s employment, as applicable:
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">A. In the event of a termination for any reason, base salary at the then existing rate, shall be prorated and paid through
the effective termination date, along with accrued and unused paid days off (subject to the Company&#146;s paid days off policy). </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">4 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">B. If termination is due to Wahba&#146;s death or Permanent Incapacity, the Company shall
also pay to Wahba upon termination an additional lump sum severance amount equal to the Target Award under the Plan which is applicable to Wahba for the fiscal year in which termination is effective or, if termination takes place before a Target
Award for the then current fiscal year has been assigned to Wahba, the Applicable Percentage of Wahba&#146;s then annual base salary, in either case prorated for the partial fiscal year ending on the effective termination date. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">C. If termination occurs (x)&nbsp;at the election of the Company without Cause, (y)&nbsp;by Wahba&#146;s resignation for Good Reason, or
(z)&nbsp;by Wahba&#146;s resignation for other than Good Reason tendered during the period October&nbsp;1, 2012 through December&nbsp;31, 2012; provided such resignation under clause (z)&nbsp;is subject to a minimum of ninety (90)&nbsp;days&#146;
prior written notice to the Board and Wahba&#146;s reasonable cooperation in the transition of his duties during such notice period, Wahba will receive as severance: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">(i) base salary continuation at the rate in effect on the date of termination notice for a period of one (1)&nbsp;year; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">(ii) partially Company-paid COBRA coverage under the Company&#146;s health care plan for himself and his spouse for one (1)&nbsp;year after the effective termination date (the Company will pay the same
percentage of the coverage cost that it would have paid had Wahba&#146;s employment not terminated); and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(iii) an amount
equal to one hundred percent (100%)&nbsp;of Wahba&#146;s Target Award under the Plan for the fiscal year in which the termination is effective, computed by applying the Applicable Percentage to the aggregate base salary amount paid to Wahba for the
fiscal year in which the termination became effective through the effective termination date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Wahba is not obligated to seek
other employment as a condition to receipt of the payments called for by this Section&nbsp;9C, and Wahba&#146;s earnings, income or profits from other employment or business activities after termination of his employment shall not reduce the
Company&#146;s payment obligations under this Section&nbsp;9C. Subject to Section&nbsp;9D and Section&nbsp;14J(ii), the amount referred to in clause 9C(i) above shall be paid in installments in accordance with the Company&#146;s standard payroll
practices commencing in the month following the month in which Wahba&#146;s Separation from Service occurs, and the amount referred to in clause 9C(iii) above shall be paid in a lump sum within thirty (30)&nbsp;days after the end of the
Company&#146;s fiscal year in which Wahba&#146;s Separation from Service occurs. As used herein, a &#147;Separation from Service&#148; occurs when Wahba dies, retires, or otherwise has a termination of employment with the Company that constitutes a
&#147;separation from service&#148; within the meaning of Treasury Regulation Section&nbsp;1.409A-1(h)(1), without regard to the optional alternative definitions available thereunder. Salary continuation payments shall commence, and the additional
severance amount shall be paid, only when the release required by Section&nbsp;9D below has become effective. For the avoidance of doubt, Wahba shall not be entitled to any severance pursuant to this Section&nbsp;9C if he resigns effective prior to
January&nbsp;1, 2013 without Good Reason or is terminated at any time for Cause. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">D. As conditions to receiving the applicable
payments under Section&nbsp;9C above, Wahba must execute and deliver to the Company within twenty-one (21)&nbsp;days following the termination of his employment (or such longer period as may be required under applicable law) a general release of
claims against the Company other than claims to the payments called for by this Agreement, such release to be in form and content substantially as attached hereto as <U>Exhibit A</U>, and said release shall have become effective under applicable
laws, including the Age Discrimination in Employment Act of 1967, as amended. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">5 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">E. All benefits other than the entitlement to payments under Section&nbsp;9C shall terminate
automatically upon termination of Wahba&#146;s employment except to the extent otherwise provided in the Company benefit plans or by law. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">F. Except as provided in this Section&nbsp;9 or by applicable Company benefit plans or laws, Wahba shall not be entitled to any payments of any kind in connection with the termination of his employment by
the Company. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">10. <U>Resignation from Directorships and Officerships</U>. Notwithstanding Wahba&#146;s continued employment
hereunder, the appointment of someone other than Wahba to the position of permanent sole Chief Executive Officer or Wahba&#146;s ceasing to serve as co-Chief Executive Officer shall constitute Wahba&#146;s resignation from the Board of Directors of
the Company. In addition, the termination of Wahba&#146;s employment for any reason shall constitute Wahba&#146;s resignation (i)&nbsp;from the Board of Directors of the Company; (ii)&nbsp;from any director, officer, or employee position Wahba has
with the Company or any of its subsidiaries; and (iii)&nbsp;from all fiduciary positions Wahba holds with respect to any employee benefit plans or trusts established by the Company. Wahba agrees that this Agreement shall serve as written notice of
resignation in the foregoing circumstances. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">11. <U>Employee Handbook and Company Policies</U>. So long as he is employed by
the Company, Wahba shall comply with, and shall be entitled to rights as set forth in the Company&#146;s Employee Handbook which may be revised from time to time and other Company policies as in effect and communicated to Wahba from time to time. In
the event that there is a conflict or contradiction between the contents of the Employee Handbook or other such Company policies and the provisions of this Agreement, then the provisions of this Agreement will prevail. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">12. <U>Confidential Information, Intellectual Property</U> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">A. Wahba acknowledges that during the course of his employment with the Company, he will be given or will have access to non-public and confidential business information of the Company which will include
information concerning pending or potential transactions, financial information concerning the Company, information concerning the Company&#146;s product formulas and processes, information concerning the Company&#146;s business plans and
strategies, information concerning Company personnel and vendors, and other non-public proprietary information of the Company (all collectively called &#147;Confidential Information&#148;). All of the Confidential Information constitutes &#147;trade
secrets&#148; under the Uniform Trade Secrets Act. Wahba covenants and agrees that during and after the term of his employment by the Company he will not disclose such information or any part thereof to anyone outside the Company or use such
information for any purpose other than the furtherance of the Company&#146;s interests without the prior written consent of the Committee, the Board or the permanent Chief Executive Officer, as applicable. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">B. Wahba further covenants that for a period of two (2)&nbsp;years after his employment by the Company terminates, he will not, directly
or indirectly, overtly or tacitly, induce, attempt to induce, solicit or encourage (i)&nbsp;any customer or prospective customer of the Company to cease doing business with, or not to do business with, the Company or (ii)&nbsp;any employee of the
Company to leave the Company. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">C. The Company and Wahba agree that the covenants set forth in this Section&nbsp;12 are
reasonably necessary for the protection of the Company&#146;s Confidential Information and that a breach of the foregoing covenants will cause the Company irreparable damage not compensable by monetary damages, and that in the event of such breach
or threatened breach, at the Company&#146;s election, an action may be brought in a court of competent jurisdiction seeking a temporary restraining order and a </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">6 </FONT></P>


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preliminary injunction against such breach or threatened breach notwithstanding the arbitration and reference provisions of Section&nbsp;14F below. Upon the court&#146;s decision on the
application for a preliminary injunction, the court action shall be stayed and the remainder of the dispute submitted to arbitration or reference under Section&nbsp;14F. The prevailing party in such legal action shall be entitled to recover its
costs of suit including reasonable attorneys&#146; fees. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">D. The Company shall own all rights in and to the results, proceeds
and products of Wahba&#146;s services hereunder, including without limitation, all ideas and intellectual property created or developed by Wahba and which is related to Wahba&#146;s employment. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">13. <U>Integration with Change in Control Severance Agreement</U>. If Wahba becomes eligible for benefits under Section&nbsp;3 of the
Change in Control Severance Agreement previously entered into between Wahba and the Company(the &#147;Change in Control Severance Agreement&#148;), the benefits provided by Section&nbsp;4 of the Change in Control Severance Agreement shall be in lieu
of, and not in addition to, the benefits provided by Section&nbsp;9C of this Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">14. <U>Miscellaneous </U> </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">A. This Agreement, the Change in Control Severance Agreement and Indemnification Agreement previously entered into between Wahba and the
Company, contain the entire agreement of the parties on the subject of Wahba&#146;s employment by the Company, all prior and contemporaneous agreements, promises or understandings being merged herein. This Agreement can be modified only by a writing
signed by both parties hereto. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">B. Wahba cannot assign this Agreement or delegate his duties hereunder. Subject to the
preceding sentence, this Agreement shall bind and inure to the benefit of the parties hereto, their heirs, personal representatives, successors and assigns. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">C. No waiver of any provision or consent to any exception to the terms of this Agreement shall be effective unless in writing and signed by the party to be bound and then only to the specific purpose,
extent and instance so provided. This Agreement may be executed in counterparts (and by facsimile signature), each of which shall be deemed an original but all of which together shall constitute one and the same agreement. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">D. Each party shall execute and deliver such further instruments and take such other action as may be necessary or appropriate to
consummate the transactions herein contemplated and to carry out the intent of the parties hereto. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">E. This Agreement shall be
construed in a fair and reasonable manner and not pursuant to any principle requiring that ambiguities be strictly construed against the party who caused same to exist. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">F. (i) All disputes arising under or in connection with this Agreement, shall be submitted to a mutually agreeable arbitrator, or if the parties are unable to agree on an arbitrator within fifteen
(15)&nbsp;days after a written demand for arbitration is made by either party, to JAMS/Endispute (&#147;JAMS&#148;) or successor organization, for binding arbitration in Los Angeles County by a single arbitrator who shall be a former California
Superior Court judge. Except as may be otherwise provided herein, the arbitration shall be conducted under the California Arbitration Act, Code of Civil Procedure 1280 et seq. The parties shall have the discovery rights provided in Code of Civil
Procedure 1283.05 and 1283.1. The arbitration hearing shall be commenced within ninety (90)&nbsp;days after the selection of an arbitrator by mutual agreement or, absent such mutual agreement, the filing of the application with JAMS by either
</FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">7 </FONT></P>


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party hereto, and a decision shall be rendered by the arbitrator within thirty (30)&nbsp;days after the conclusion of the hearing. The arbitrator shall have complete authority to interpret this
Section&nbsp;14F and to render any and all relief, legal and equitable, appropriate under California law, including the award of punitive damages where legally available and warranted. The arbitrator shall award costs of the proceeding, including
reasonable attorneys&#146; fees and the arbitrator&#146;s fee and costs, to the party determined to have substantially prevailed. Judgment on the award can be entered in a court of competent jurisdiction. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(ii) The foregoing notwithstanding, if the amount in controversy exceeds $200,000, exclusive of attorneys&#146; fees and costs, the
matter shall be litigated in the Los Angeles County Superior Court as a regular non-jury civil action except that a former California Superior Court Judge selected by the parties or by JAMS, as hereinabove provided, shall be appointed as referee to
try all issues of fact and law, without a jury, pursuant to California Code of Civil Procedure &#167;638 et seq. The parties hereto expressly waive a trial by jury. Judgment entered on the decision of the referee shall be appealable as a judgment of
the Superior Court. The prevailing party shall be entitled to receive its reasonable attorneys&#146; fees and costs from the other party. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">G. Payments to Wahba are subject to payroll deductions and withholdings if and to the extent required by law. Salary payments will be reduced on a dollar-for-dollar basis by payments received by Wahba for
disability under governmental or Company paid disability insurance programs. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">H. All provisions of this Agreement which must
survive the termination of this Agreement to give them their intended effect shall so survive. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">I. If any provision of this
Agreement is determined to be unenforceable as illegal or contrary to public policy, it shall be deemed automatically amended to the extent necessary to render it enforceable provided the intent of the parties as expressed herein will not thereby be
frustrated. Otherwise the unenforceable provision shall be severed from the remaining provisions which shall remain in effect. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">J. (i) It is intended that any amounts payable under this Agreement shall either be exempt from or comply with Section&nbsp;409A of the
Internal Revenue Code (including the Treasury regulations and other published guidance relating thereto) (&#147;Code Section&nbsp;409A&#148;) so as not to subject Wahba to payment of any additional tax, penalty or interest imposed under Code
Section&nbsp;409A. The provisions of this Agreement shall be construed and interpreted to avoid the imputation of any such additional tax, penalty or interest under Code Section&nbsp;409A yet preserve (to the nearest extent reasonably possible) the
intended benefit payable to Wahba. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(ii) Notwithstanding any provision of this Agreement to the contrary, if Wahba is a
&#147;specified employee&#148; within the meaning of Treasury Regulation Section&nbsp;1.409A-1(i) as of the date of Wahba&#146;s Separation from Service, Wahba shall not be entitled to any payment or benefit pursuant to Section&nbsp;9C until the
earlier of (i)&nbsp;the date which is six (6)&nbsp;months after Wahba&#146;s Separation from Service for any reason other than death, or (ii)&nbsp;the date of Wahba&#146;s death. Any amounts otherwise payable to Wahba upon or in the six
(6)&nbsp;month period following Wahba&#146;s Separation from Service that are not so paid by reason of this Section&nbsp;14J(ii) shall be paid (without interest) as soon as practicable (and in all events within thirty (30)&nbsp;days) after the date
that is six (6)&nbsp;months after Wahba&#146;s Separation from Service (or, if earlier, as soon as practicable, and in all events within thirty (30)&nbsp;days, after the date of Wahba&#146;s death). The provisions of this Section&nbsp;14J(ii) shall
only apply if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Code Section&nbsp;409A. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">(iii) To the extent that any benefits pursuant to Section&nbsp;9C(ii) or reimbursements pursuant to Section&nbsp;7 are taxable to Wahba, any reimbursement payment due to Wahba
</FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">8 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
pursuant to such provision shall be paid to Wahba on or before the last day of Wahba&#146;s taxable year following the taxable year in which the related expense was incurred. The benefits and
reimbursements pursuant to such provisions are not subject to liquidation or exchange for another benefit and the amount of such benefits and reimbursements that Wahba receives in one taxable year shall not affect the amount of such benefits or
reimbursements that Wahba receives in any other taxable year. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">[SIGNATURE PAGE FOLLOWS] </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">9 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">IN WITNESS WHEREOF, the parties have executed this Amended and Restated Employment Agreement
as of the date first above written. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Company: </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="48%"></TD>
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<TD WIDTH="2%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="48%"></TD></TR>


<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dated: February&nbsp;13, 2012</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT STYLE="font-family:Times New Roman" SIZE="2">FARMER BROS. CO.,</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" COLSPAN="3"><FONT STYLE="font-family:Times New Roman" SIZE="2">a Delaware corporation</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ PATRICK G. CRITESER</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Patrick G. Criteser</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interim Co-Chief Executive Officer</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Wahba:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dated: February&nbsp;13, 2012</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ JEFFREY A. WAHBA</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jeffrey A. Wahba</FONT></TD></TR>
</TABLE> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">[Signature Page to Amended and
Restated </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">Employment Agreement (Farmer Bros. Co. / Wahba)] </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>EXHIBIT A </U></B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">FORM OF RELEASE AGREEMENT </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">I understand that my position with Farmer Bros. Co. (the &#147;Company&#148;) terminated effective &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 20&nbsp;&nbsp;&nbsp;&nbsp;(the
&#147;Separation Date&#148;). The Company has agreed that if I choose to sign this Agreement, the Company will pay me severance benefits (minus the standard withholdings and deductions) pursuant to the terms of the Second Amended and Restated
Employment Agreement entered into effective as of February&nbsp;13, 2012 (&#147;Employment Agreement&#148;) between myself and the Company. I understand that I am not entitled to this severance payment unless I sign this Agreement. I understand that
in addition to this severance, the Company will pay me all of my accrued salary and paid days off, to which I am entitled by law regardless of whether I sign this release. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">In consideration for the severance payment I am receiving under this Agreement, I acknowledge and agree that I am bound by the provisions of Sections 12A and 12B of my Employment Agreement and hereby
release the Company and its current and former officers, directors, agents, attorneys, employees, stockholders, and affiliates from any and all claims, liabilities, demands, causes of action, attorneys&#146; fees, damages, or obligations of every
kind and nature, whether they are known or unknown, arising at any time prior to the date I sign this Agreement. This general release includes, but is not limited to: all federal and state statutory and common law claims, claims related to my
employment or the termination of my employment or related to breach of contract, tort, wrongful termination, discrimination, wages or benefits, or claims for any form of compensation. This release is not intended to release any claims I have or may
have against any of the released parties for (a)&nbsp;indemnification as a director, officer, agent or employee under applicable law, charter document or agreement, (b)&nbsp;severance and other termination benefits specifically provided for in my
Employment Agreement which constitutes a part of the consideration for this release, (c)&nbsp;health or other insurance benefits based on claims already submitted or which are covered claims properly submitted in the future, (d)&nbsp;vested rights
under pension, retirement or other benefit plans, or (e)&nbsp;in respect of events, acts or omissions occurring after the date of this Release Agreement. In releasing claims unknown to me at present, I am waiving all rights and benefits under
Section&nbsp;1542 of the California Civil Code, and any law or legal principle of similar effect in any jurisdiction: &#147;A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of
executing the release, which if known by him must have materially affected his settlement with the debtor.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">I
acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under the federal Age Discrimination in Employment Act of 1967, as amended (&#147;ADEA&#148;). I also acknowledge that the consideration given for the waiver
in the above paragraph is in addition to anything of value to which I was already entitled. I have been advised by this writing, as required by the ADEA that: (a)&nbsp;my waiver and release do not apply to any claims that may arise after my signing
of this Agreement; (b)&nbsp;I should consult with an attorney prior to executing this release; (c)&nbsp;I have twenty-one (21)&nbsp;days within which to consider this release (although I may choose to voluntarily execute this release earlier);
(d)&nbsp;I have seven (7)&nbsp;days following the execution of this release to revoke the Agreement; and (e)&nbsp;this Agreement will not be effective until the eighth day after this Agreement has been signed both by me and by the Company.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">I accept and agree to the terms and conditions stated above: </FONT></P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
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<TR>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jeffrey A. Wahba</FONT></TD></TR>
</TABLE></DIV> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">[Exhibit A to Amended
and Restated </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">Employment Agreement (Farmer Bros. Co. / Wahba)] </FONT></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>d302325dex102.htm
<DESCRIPTION>AMENDED AND RESTATED EMPLOYMENT AGREEMENT
<TEXT>
<HTML><HEAD>
<TITLE>Amended and Restated Employment Agreement</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Exhibit 10.2 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>AMENDED AND RESTATED </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>EMPLOYMENT AGREEMENT </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>(Farmer Bros. Co. / Criteser) </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this &#147;Agreement&#148;), is made and entered into effective as of February&nbsp;13, 2012 (the &#147;Effective Date&#148;), between FARMER BROS. CO., a
Delaware corporation (the &#147;Company&#148;), and PATRICK G. CRITESER (&#147;Criteser&#148;) who agree as follows: </FONT></P>
<P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>RECITALS </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, the Company and Criteser are parties to that certain Employment Agreement entered into effective as of April&nbsp;19, 2011 (the
&#147;Existing Agreement&#148;), whereby Criteser was employed as an Interim Co-Chief Executive Officer of the Company and the President and Chief Executive Officer of the Company&#146;s subsidiary, Coffee Bean International, Inc. (&#147;CBI&#148;).
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, pending the hiring of a permanent Chief Executive Officer of the Company, the Company and Criteser desire to amend
and restate the Existing Agreement on the terms and conditions set forth herein. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">WHEREAS, this Agreement supersedes the
Existing Agreement in its entirety except as set forth in Section&nbsp;6D below. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>AGREEMENT </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">NOW, THEREFORE, for good and valuable consideration, receipt and adequacy of which are hereby acknowledged, Criteser and the Company do
hereby agree as follows: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">1. <U>Employment</U>. The Company hereby employs Criteser, and Criteser accepts employment from the
Company, on the terms and conditions herein stated. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">2. <U>Term and Location of Employment</U>. The term of this Agreement
will commence on the Effective Date and shall end when terminated under Section&nbsp;8 below. During the Term Criteser shall work out of the Company&#146;s offices in Torrance, California and from CBI&#146;s offices in Portland, Oregon as necessary
for the performance of Criteser&#146;s duties. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">3. <U>Duties</U>. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">A. On the Effective Date and until the employment commencement date of a permanent Chief Executive Officer of the Company (the &#147;CEO
Commencement Date&#148;), Criteser shall continue to serve as an Interim Co-Chief Executive Officer of the Company, reporting to the Audit Committee (the &#147;Committee&#148;) of the Board of Directors (the &#147;Board&#148;) and, subject to the
oversight and control of the Committee and the Board, shall have responsibility for all sales and marketing functions of the Company and CBI, including, without limitation, route sales, and for all Company manufacturing and distribution operations
other than the Spice Products division operations, along with such shared general powers, duties and responsibilities as are typically vested in a chief executive officer, including without limitation the shared responsibility for the development
and implementation of the Company&#146;s strategic plans and the shared responsibility for the overall management of the Company. Criteser agrees that this Agreement shall serve as written notice of resignation as Interim Co-Chief Executive Officer
of the Company effective as of the CEO Commencement Date. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">B. Criteser shall continue to serve as President and Chief Executive Officer of CBI, and in
such capacity shall report to the CBI board of directors. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">C. In addition to his general duties and responsibilities, Criteser
shall also perform such other duties as are consistent with his position(s) and as are directed by the Committee or the Board. Criteser shall devote to the Company&#146;s business substantially all of his working time. Service as a director of a
for-profit organization shall require approval of the Board. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">D. If Criteser is still employed by the Company on the CEO
Commencement Date and not otherwise appointed as permanent Chief Executive Officer or as permanent Co-Chief Executive Officer, his title will revert to President and Chief Executive Officer of CBI with the duties attendant to that position and this
Agreement will be assigned by the Company to CBI and assumed by CBI. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">4. <U>Base Salary</U>. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">A. Criteser shall receive a base salary of $350,000 per annum through September&nbsp;30, 2012, payable in accordance with the
Company&#146;s normal payroll practices. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">B. On October&nbsp;1, 2012, Criteser&#146;s annual base salary shall revert to
$256,250 unless otherwise set by mutual written agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">C. If Criteser is selected as the permanent Chief Executive
Officer or as permanent Co-Chief Executive Officer, compensation will be set by mutual written agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">D. The annual base
salary amount shall be reviewed each year by the Company and may be adjusted upward or downward by the Company from time to time but shall not be reduced below the amount applicable under Section&nbsp;4A, 4B or 4C, as applicable. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">5. <U>Bonuses</U>. Criteser shall be entitled to participate in the Company&#146;s 2005 Incentive Compensation Plan or any successor plan
(&#147;Plan&#148;) each year so long as the Plan remains in effect and one or more of the Company&#146;s other executive officers who are full-time Company employees (&#147;Senior Executives&#148;) also participate. Under the terms of the Plan, the
Compensation Committee of the Board will, in its discretion, determine the Performance Criteria, as defined in the Plan, and all other variables by which Criteser&#146;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%)&nbsp;(the &#147;Applicable Percentage&#148;) of Criteser&#146;s base annual salary; provided, however, if Criteser&#146;s base annual salary changes during the fiscal year,
Criteser&#146;s Target Award shall be equal to the Applicable Percentage of twelve (12)&nbsp;times the average actual monthly base salary for such fiscal year. Except as provided otherwise in this Section&nbsp;5, Criteser&#146;s participation in the
Plan is subject to all Plan terms and conditions. Under the terms of the Plan, no bonus is earned until awarded by the Compensation Committee after completion of the fiscal year, and the Compensation Committee may, in its discretion, reduce,
entirely eliminate or increase the bonus indicated by the Performance Criteria and other Plan factors. Criteser acknowledges receipt of a copy of the Plan. Section&nbsp;9C(iii) is not affected by this Section&nbsp;5. Bonuses awarded by the
Compensation Committee under the Plan will be paid within ten (10)&nbsp;days after the Company files with the Securities and Exchange Commission its Form 10-K report for the fiscal year for which the bonus was awarded notwithstanding anything to the
contrary in the Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">6. <U>Grants of Non-Qualified Stock Options and Award of Restricted Stock</U> </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">A. <U>Incentive Grant</U>. In accordance with the provisions of the Farmer Bros. Co. 2007 Omnibus Plan (the &#147;Omnibus Plan&#148;),
upon full execution of this Agreement or, if such day falls within a </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">2 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
blackout period under the Company&#146;s Insider Trading Policy (&#147;Blackout Period&#148;), the first business following the end of such Blackout Period, Criteser shall be granted seventy
thousand (70,000)&nbsp;non-qualified stock options at an exercise price equal to the closing price of the Company&#146;s common stock on the grant date (the &#147;Incentive Grant&#148;). </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">B. <U>Public Information</U>. Notwithstanding the foregoing, the Incentive Grant will be delayed during such period as there exists, in
the opinion of the Company&#146;s counsel, material information concerning the Company which has not been publicly disclosed. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">C. <U>Vesting</U>. The Incentive Grant will vest on the one year anniversary of the grant date, provided Criteser is then employed by the
Company, subject to accelerated vesting in the case of death, &#147;Permanent Incapacity,&#148; termination of employment for other than &#147;Cause,&#148; or resignation for &#147;Good Reason,&#148; as such terms are defined below. In addition, the
vesting of thirty-five thousand (35,000)&nbsp;of the stock options subject to the Incentive Grant will be accelerated on June&nbsp;29, 2012 if Criteser is then employed by the Company or if he has resigned without Good Reason effective June&nbsp;29,
2012 upon at least thirty (30)&nbsp;days prior written notice to the Board; and the vesting of the remaining thirty-five thousand (35,000)&nbsp;stock options subject to the Incentive Grant will be accelerated upon Criteser&#146;s resignation
effective after June&nbsp;29, 2012 and prior to December&nbsp;31, 2012, on a pro rata basis based on the number of service days completed in calendar year 2012 after June&nbsp;29, 2012 divided by one hundred eighty five (185)&nbsp;days. In addition,
the remaining thirty-five thousand (35,000)&nbsp;stock options subject to the Incentive Grant will be accelerated on December&nbsp;31, 2012 if Criteser is then employed by the Company. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">D. <U>Grant Agreement</U>. The Incentive Grant will be evidence by a Grant Notice and Stock Option Agreement consistent with this
Section&nbsp;6 and in the Company&#146;s usual form. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">E. <U>Prior Incentive and Retention Grants and Award</U>. Nothing herein
affects the Incentive Grant, Retention Grant and Award to Criteser under Sections 6A, 6B and 6C, respectively, of the Existing Agreement, which shall continue to be subject to the terms and conditions of the Existing Agreement. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">7. <U>Benefits</U> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">A. The Company will provide to Criteser all benefits and perquisites provided by the Company from time to time to its Senior Executives, subject to the eligibility requirements and the terms and
conditions of the benefit plans and perquisite policies. Included benefits and perquisites presently consist of paid days off, group health insurance (PPO or HMO), participation in the Omnibus Plan, life insurance, business travel insurance,
qualified retirement plan (subject to pension freeze), 401(k) plan, employee stock ownership plan, cell phone, company credit card, and expense reimbursement, and may include use of an automobile or an automobile allowance in accordance with Company
policy for Senior Executives. Not all of the foregoing benefits are 100% Company paid. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">B. The Incentive Grant is in lieu of
any other grants under the Omnibus Plan in fiscal year 2012. Thereafter, Criteser shall be entitled to such future grants under the Omnibus Plan as are awarded to him by the Compensation Committee in its discretion. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">C. The Company reserves the right to alter or discontinue any or all such benefits and perquisites, provided they are so altered or
discontinued as to all Senior Executives. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">3 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">8. <U>Termination</U> </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">A. Criteser&#146;s employment is terminable by the Company for good and sufficient cause (&#147;Cause&#148;), which shall consist only
of: (i)&nbsp;a repeated refusal to follow reasonable directions from the Committee, the Board or the permanent Chief Executive Officer, as applicable, after a warning; (ii)&nbsp;a material breach of any of Criteser&#146;s fiduciary duties to the
Company (a breach involving dishonesty or personal gain shall be deemed material regardless of the amount involved); (iii)&nbsp;conviction of a felony; (iv)&nbsp;commission of a willful violation of any law, rule or regulation involving moral
turpitude; (v)&nbsp;commission of a willful or grossly negligent act, omission or course of conduct which has a material adverse effect on the Company; or (vi)&nbsp;commission of a material breach by Criteser of this Agreement which breach, if
curable, is not cured within a reasonable time after written notice from the Committee or the Board or the permanent Chief Executive Officer, as applicable, describing the nature of the breach in reasonable detail. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">B. Criteser&#146;s employment shall terminate upon Criteser&#146;s resignation, with or without &#147;Good Reason,&#148; as defined
below, death or Permanent Incapacity. &#147;Permanent Incapacity&#148; shall be deemed to have occurred if Criteser has been unable to perform substantially all of his employment duties under Section&nbsp;3 on a substantially full time basis by
reason of a mental or physical condition for a period of ninety (90)&nbsp;consecutive days or for more than one hundred eighty days (180)&nbsp;in any period of three hundred sixty-five (365)&nbsp;consecutive days. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Good Reason shall exist only (i)&nbsp;on the Company&#146;s material breach of this Agreement, (ii)&nbsp;on a material reduction in
Criteser&#146;s responsibilities, duties or authority, other than as contemplated by Section&nbsp;3A, or (iii)&nbsp;on a relocation of Criteser&#146;s place(s) of employment to someplace other than either or both of Los Angeles County or the greater
Portland, Oregon area; provided, however, that any such condition in subsections (i)&nbsp;through (iii)&nbsp;shall not constitute Good Reason unless both (x)&nbsp;Criteser provides written notice to the Company describing the condition claimed to
constitute Good Reason in reasonable detail within ninety (90)&nbsp;days of the initial existence of such condition, and (y)&nbsp;the Company fails to remedy such condition within thirty (30)&nbsp;days of receiving such written notice thereof; and
provided, further, that in all events the termination of Criteser&#146;s employment with the Company shall not be treated as a resignation for Good Reason unless such resignation occurs not more than one (1)&nbsp;year following the initial existence
of the condition claimed to constitute Good Reason. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">C. Criteser&#146;s employment shall terminate at the election of the
Company at any time without Cause. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">9. <U>Payments upon Termination</U>. The following amounts are payable upon termination of
Criteser&#146;s employment, as applicable: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">A. In the event of a termination for any reason, base salary at the then existing
rate, shall be prorated and paid through the effective termination date, along with accrued and unused paid days off (subject to the Company&#146;s paid days off policy). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">B. If termination is due to Criteser&#146;s death or Permanent Incapacity, the Company shall also pay to Criteser upon termination an additional lump sum severance amount equal to the Target Award under
the Plan which is applicable to Criteser for the fiscal year in which termination is effective or, if termination takes place before a Target Award for the then current fiscal year has been assigned to Criteser, the Applicable Percentage of
Criteser&#146;s then annual base salary, in either case prorated for the partial fiscal year ending on the effective termination date. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">4 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">C. If termination occurs (x)&nbsp;at the election of the Company without Cause, (y)&nbsp;by
Criteser&#146;s resignation for Good Reason, or (z)&nbsp;by Criteser&#146;s resignation for other than Good Reason tendered during the period May&nbsp;30, 2012 through December&nbsp;31, 2012; provided such resignation under clause (z)&nbsp;is
subject to a minimum of thirty (30)&nbsp;days&#146; notice and Criteser&#146;s reasonable cooperation in the transition of his duties during such notice period, Criteser will receive as severance: </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(i) base salary continuation at the rate in effect on the date of termination notice for a period of one (1)&nbsp;year; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(ii) partially Company-paid COBRA coverage under the Company&#146;s health care plan for himself and his spouse for one (1)&nbsp;year
after the effective termination date (the Company will pay the same percentage of the coverage cost that it would have paid had Criteser&#146;s employment not terminated), and </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(iii) an amount equal to one hundred percent (100%)&nbsp;of Criteser&#146;s Target Award under the Plan for the fiscal year in which the
termination is effective, computed at the salary rate in effect on the effective termination date, such amount to be prorated for the partial fiscal year in which the termination is effective.</FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Criteser is not obligated to seek other employment as a condition to receipt of the payments called for by this Section&nbsp;9C, and
Criteser&#146;s earnings, income or profits from other employment or business activities after termination of his employment shall not reduce the Company&#146;s payment obligations under this Section&nbsp;9C. Subject to Section&nbsp;9D and
Section&nbsp;13J(ii), the amount referred to in clause 9C(i) above shall be paid in installments in accordance with the Company&#146;s standard payroll practices commencing in the month following the month in which Criteser&#146;s Separation from
Service occurs, and the amount referred to in clause 9C(iii) above shall be paid in a lump sum within thirty (30)&nbsp;days after the end of the Company&#146;s fiscal year in which Criteser&#146;s Separation from Service occurs. As used herein, a
&#147;Separation from Service&#148; occurs when Criteser dies, retires, or otherwise has a termination of employment with the Company that constitutes a &#147;separation from service&#148; within the meaning of Treasury Regulation
Section&nbsp;1.409A-1(h)(1), without regard to the optional alternative definitions available thereunder. Salary continuation payments shall commence, and the additional severance amount shall be paid, only when the release required by
Section&nbsp;9D below has become effective. For the avoidance of doubt, Criteser shall not be entitled to any severance pursuant to this Section&nbsp;9C if he resigns effective prior to June&nbsp;29, 2012 without Good Reason or is terminated at any
time for Cause. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">D. As a condition to receiving the applicable payments under Section&nbsp;9C above, Criteser must execute and
deliver to the Company within twenty-one (21)&nbsp;days following the termination of his employment (or such longer period as may be required under applicable law) a general release of claims against the Company other than claims to the payments
called for by this Agreement, such release to be in form and content substantially as attached hereto as <U>Exhibit A</U>, and said release shall have become effective under applicable laws, including the Age Discrimination in Employment Act of
1967, as amended. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">E. All benefits other than the entitlement to payments under Section&nbsp;9C shall terminate automatically
upon termination of Criteser&#146;s employment except to the extent otherwise provided in the Company benefit plans or by law. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">F. Except as provided in this Section&nbsp;9 or by applicable Company benefit plans or laws, Criteser shall not be entitled to any
payments of any kind in connection with the termination of his employment by the Company. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">5 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">10. <U>Employee Handbook and Company Policies</U>. So long as he is employed by the Company,
Criteser shall comply with, and shall be entitled to rights as set forth in the Company&#146;s Employee Handbook which may be revised from time to time and other Company policies as in effect and communicated to Criteser from time to time. In the
event that there is a conflict or contradiction between the contents of the Employee Handbook or other such Company policies and the provisions of this Agreement, then the provisions of this Agreement will prevail. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">11. <U>Confidential Information, Intellectual Property</U> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">A. Criteser acknowledges that during the course of his employment with the Company, he will be given or will have access to non-public and confidential business information of the Company and CBI which
will include information concerning pending or potential transactions, financial information concerning the Company and CBI, information concerning the Company&#146;s and CBI&#146;s product formulas and processes, information concerning the
Company&#146;s and CBI&#146;s business plans and strategies, information concerning Company and CBI personnel and vendors, and other non-public proprietary information of the Company and CBI (all collectively called &#147;Confidential
Information&#148;). All of the Confidential Information constitutes &#147;trade secrets&#148; under the Uniform Trade Secrets Act. Criteser covenants and agrees that during and after the term of his employment by the Company he will not disclose
Confidential Information or any part thereof to anyone outside the Company or CBI or use such Confidential Information for any purpose other than the furtherance of the Company&#146;s interests without the prior written consent of the Committee, the
Board or the permanent Chief Executive Officer, as applicable. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">B. Criteser further covenants that for a period of two
(2)&nbsp;years after his employment by the Company terminates, he will not, directly or indirectly, overtly or tacitly, induce, attempt to induce, solicit or encourage (i)&nbsp;any customer or prospective customer of the Company or CBI to cease
doing business with, or not to do business with, the Company or CBI or (ii)&nbsp;any employee of the Company or CBI to leave the Company or CBI. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">C. The Company and Criteser agree that the covenants set forth in this Section&nbsp;11 are reasonably necessary for the protection of the Company&#146;s Confidential Information and that a breach of the
foregoing covenants will cause the Company irreparable damage not compensable by monetary damages, and that in the event of such breach or threatened breach, at the Company&#146;s election, an action may be brought in a court of competent
jurisdiction seeking a temporary restraining order and a preliminary injunction against such breach or threatened breach notwithstanding the arbitration and reference provisions of Section&nbsp;13F below. Upon the court&#146;s decision on the
application for a preliminary injunction, the court action shall be stayed and the remainder of the dispute submitted to arbitration or reference under Section&nbsp;13F. The prevailing party in such legal action shall be entitled to recover its
costs of suit including reasonable attorneys&#146; fees. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">D. The Company shall own all rights in and to the results, proceeds
and products of Criteser&#146;s services hereunder, including without limitation, all ideas and intellectual property created or developed by Criteser and which is related to Criteser&#146;s employment. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">12. <U>Termination of Change in Control Severance Agreement</U>. The Change in Control Severance Agreement previously entered into
between Criteser and the Company is terminated on the CEO Commencement Date if Criteser is not appointed as permanent Chief Executive Officer or permanent co-Chief Executive Officer, and thereafter shall be of no further force or effect. </FONT></P>

 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">6 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">13. <U>Miscellaneous </U> </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">A. This Agreement and Indemnification Agreement previously entered into between Criteser and the Company, contain the entire agreement of
the parties on the subject of Criteser&#146;s employment by the Company, all prior and contemporaneous agreements, promises or understandings being merged herein. This Agreement can be modified only by a writing signed by both parties hereto.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">B. Criteser cannot assign this Agreement or delegate his duties hereunder. Subject to the preceding sentence, this Agreement
shall bind and inure to the benefit of the parties hereto, their heirs, personal representatives, successors and assigns. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">C.
No waiver of any provision or consent to any exception to the terms of this Agreement shall be effective unless in writing and signed by the party to be bound and then only to the specific purpose, extent and instance so provided. This Agreement may
be executed in counterparts (and by facsimile signature), each of which shall be deemed an original but all of which together shall constitute one and the same agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">D. Each party shall execute and deliver such further instruments and take such other action as may be necessary or appropriate to consummate the transactions herein contemplated and to carry out the
intent of the parties hereto. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">E. This Agreement shall be construed in a fair and reasonable manner and not pursuant to any
principle requiring that ambiguities be strictly construed against the party who caused same to exist. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">F. (i) All disputes
arising under or in connection with this Agreement, shall be submitted to a mutually agreeable arbitrator, or if the parties are unable to agree on an arbitrator within fifteen (15)&nbsp;days after a written demand for arbitration is made by either
party, to JAMS/Endispute (&#147;JAMS&#148;) or successor organization, for binding arbitration in Los Angeles County by a single arbitrator who shall be a former California Superior Court judge. Except as may be otherwise provided herein, the
arbitration shall be conducted under the California Arbitration Act, Code of Civil Procedure 1280 et seq. The parties shall have the discovery rights provided in Code of Civil Procedure 1283.05 and 1283.1. The arbitration hearing shall be commenced
within ninety (90)&nbsp;days after the selection of an arbitrator by mutual agreement or, absent such mutual agreement, the filing of the application with JAMS by either party hereto, and a decision shall be rendered by the arbitrator within thirty
(30)&nbsp;days after the conclusion of the hearing. The arbitrator shall have complete authority to interpret this Section&nbsp;13F and to render any and all relief, legal and equitable, appropriate under California law, including the award of
punitive damages where legally available and warranted. The arbitrator shall award costs of the proceeding, including reasonable attorneys&#146; fees and the arbitrator&#146;s fee and costs, to the party determined to have substantially prevailed.
Judgment on the award can be entered in a court of competent jurisdiction. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(ii) The foregoing notwithstanding, if the amount
in controversy exceeds $200,000, exclusive of attorneys&#146; fees and costs, the matter shall be litigated in the Los Angeles County Superior Court as a regular non-jury civil action except that a former California Superior Court Judge selected by
the parties or by JAMS, as hereinabove provided, shall be appointed as referee to try all issues of fact and law, without a jury, pursuant to California Code of Civil Procedure &#167;638 et seq. The parties hereto expressly waive a trial by jury.
Judgment entered on the decision of the referee shall be appealable as a judgment of the Superior Court. The prevailing party shall be entitled to receive its reasonable attorneys&#146; fees and costs from the other party. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">7 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">G. Payments to Criteser are subject to payroll deductions and withholdings if and to the
extent required by law. Salary payments will be reduced on a dollar-for-dollar basis by payments received by Criteser for disability under governmental or Company paid disability insurance programs. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">H. All provisions of this Agreement which must survive the termination of this Agreement to give them their intended effect shall so
survive. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">I. If any provision of this Agreement is determined to be unenforceable as illegal or contrary to public policy, it
shall be deemed automatically amended to the extent necessary to render it enforceable provided the intent of the parties as expressed herein will not thereby be frustrated. Otherwise the unenforceable provision shall be severed from the remaining
provisions which shall remain in effect. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">J. (i) It is intended that any amounts payable under this Agreement shall either be
exempt from or comply with Section&nbsp;409A of the Internal Revenue Code (including the Treasury regulations and other published guidance relating thereto) (&#147;Code Section&nbsp;409A&#148;) so as not to subject Criteser to payment of any
additional tax, penalty or interest imposed under Code Section&nbsp;409A. The provisions of this Agreement shall be construed and interpreted to avoid the imputation of any such additional tax, penalty or interest under Code Section&nbsp;409A yet
preserve (to the nearest extent reasonably possible) the intended benefit payable to Criteser. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(ii) Notwithstanding any
provision of this Agreement to the contrary, if Criteser is a &#147;specified employee&#148; within the meaning of Treasury Regulation Section&nbsp;1.409A-1(i) as of the date of Criteser&#146;s Separation from Service, Criteser shall not be entitled
to any payment or benefit pursuant to Section&nbsp;9C until the earlier of (i)&nbsp;the date which is six (6)&nbsp;months after Criteser&#146;s Separation from Service for any reason other than death, or (ii)&nbsp;the date of Criteser&#146;s death.
Any amounts otherwise payable to Criteser upon or in the six (6)&nbsp;month period following Criteser&#146;s Separation from Service that are not so paid by reason of this Section&nbsp;13J(ii) shall be paid (without interest) as soon as practicable
(and in all events within thirty (30)&nbsp;days) after the date that is six (6)&nbsp;months after Criteser&#146;s Separation from Service (or, if earlier, as soon as practicable, and in all events within thirty (30)&nbsp;days, after the date of
Criteser&#146;s death). The provisions of this Section&nbsp;13J(ii) shall only apply if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Code Section&nbsp;409A. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2">(iii) To the extent that any benefits pursuant to Section&nbsp;9C(ii) or reimbursements pursuant to Section&nbsp;7 are taxable to
Criteser, any reimbursement payment due to Criteser pursuant to such provision shall be paid to Criteser on or before the last day of Criteser&#146;s taxable year following the taxable year in which the related expense was incurred. The benefits and
reimbursements pursuant to such provisions are not subject to liquidation or exchange for another benefit and the amount of such benefits and reimbursements that Criteser receives in one taxable year shall not affect the amount of such benefits or
reimbursements that Criteser receives in any other taxable year. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">[SIGNATURE PAGE FOLLOWS] </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">8 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the date first
above written. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Company: </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dated: February&nbsp;13, 2012</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" COLSPAN="5"><FONT STYLE="font-family:Times New Roman" SIZE="2">FARMER BROS. CO.,</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" COLSPAN="5"><FONT STYLE="font-family:Times New Roman" SIZE="2">a Delaware corporation</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD></TR>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;/s/ JEFFREY A. WAHBA</FONT></P></TD></TR>
<TR>
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<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Jeffrey A. Wahba</FONT></TD></TR>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Interim Co-Chief Executive Officer, Treasurer</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">and Chief Financial Officer</FONT></P></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Criteser:</FONT></TD>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dated: February&nbsp;13, 2012</FONT></TD>
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<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;/s/ PATRICK G. CRITESER</FONT></P></TD></TR>
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<TD VALIGN="top" COLSPAN="3"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;Patrick G. Criteser</FONT></TD></TR>
</TABLE> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">[Signature Page to Employment
Agreement </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">(Farmer Bros. Co. / Criteser)] </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>EXHIBIT A </U></B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">FORM OF RELEASE AGREEMENT </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">I understand that my position with Farmer Bros. Co. (the &#147;Company&#148;) terminated effective &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 20&nbsp;&nbsp;&nbsp;&nbsp; (the
&#147;Separation Date&#148;). The Company has agreed that if I choose to sign this Agreement, the Company will pay me severance benefits (minus the standard withholdings and deductions) pursuant to the terms of the Amended and Restated Employment
Agreement entered into effective as of February&nbsp;13, 2012 (&#147;Employment Agreement&#148;) between myself and the Company. I understand that I am not entitled to this severance payment unless I sign this Agreement. I understand that in
addition to this severance, the Company will pay me all of my accrued salary and paid days off, to which I am entitled by law regardless of whether I sign this release. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">In consideration for the severance payment I am receiving under this Agreement, I acknowledge and agree that I am bound by the provisions of Sections 11A and 11B of my Employment Agreement and, except as
provided otherwise below, hereby release the Company and its current and former officers, directors, agents, attorneys, employees, stockholders, and affiliates from any and all claims, liabilities, demands, causes of action, attorneys&#146; fees,
damages, or obligations of every kind and nature, whether they are known or unknown, arising at any time prior to the date I sign this Agreement. This general release includes, but is not limited to: all federal and state statutory and common law
claims, claims related to my employment or the termination of my employment or related to breach of contract, tort, wrongful termination, discrimination, wages or benefits, or claims for any form of compensation. This release is not intended to
release any claims I have or may have against any of the released parties for (a)&nbsp;indemnification as a director, officer, agent or employee under applicable law, charter document or agreement, (b)&nbsp;severance and other termination benefits
specifically provided for in my Employment Agreement which constitutes a part of the consideration for this release, (c)&nbsp;health or other insurance benefits based on claims already submitted or which are covered claims properly submitted in the
future, (d)&nbsp;vested rights under pension, retirement or other benefit plans, or (e)&nbsp;in respect of events, acts or omissions occurring after the date of this Release Agreement. In addition, if any stockholder of the Company brings suit
against me, including any suit brought derivatively, I am not releasing any claim that I may have against such stockholder, hereby reserving my right to assert such claim against such stockholder by cross-complaint, setoff, or separate action. In
releasing claims unknown to me at present, I am waiving all rights and benefits under Section&nbsp;1542 of the California Civil Code, and any law or legal principle of similar effect in any jurisdiction: &#147;A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.&#148; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under the federal Age Discrimination in
Employment Act of 1967, as amended (&#147;ADEA&#148;). I also acknowledge that the consideration given for the waiver in the above paragraph is in addition to anything of value to which I was already entitled. I have been advised by this writing, as
required by the ADEA that: (a)&nbsp;my waiver and release do not apply to any claims that may arise after my signing of this Agreement; (b)&nbsp;I should consult with an attorney prior to executing this release; (c)&nbsp;I have twenty-one
(21)&nbsp;days within which to consider this release (although I may choose to voluntarily execute this release earlier); (d)&nbsp;I have seven (7)&nbsp;days following the execution of this release to revoke the Agreement; and (e)&nbsp;this
Agreement will not be effective until the eighth day after this Agreement has been signed both by me and by the Company. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">I
accept and agree to the terms and conditions stated above: </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Patrick G. Criteser</FONT></TD></TR>
</TABLE></DIV> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">[Exhibit A to Employment
Agreement </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">(Farmer Bros. Co. / Criteser)] </FONT></P>
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