Document:

Exhibit 10.1

 

 

	
 
    	
May 1, 2012
    

 

 

Max Senechal

21 Erie Street

Cambridge, MA 02139

 

Re:  Employment Agreement

 

Dear Max:

 

We are pleased to offer the following terms in connection with your continued employment by Metabolix, Inc. (the “Company”).

 

1.              Employment.

 

1.1.         General.  The Company will employ you, and you will be employed by the Company, as Vice President, Biobased Chemicals, of the Company, reporting to the Company’s Chief Executive Officer,  and you shall have the responsibilities, duty and authority commensurate with that position.  You will also perform such reasonable other and/or different services for the Company, in addition to your primary duties as Vice President, Biobased Chemicals, may be assigned to you from time to time.  You agree that if your employment hereunder ends for any reason, you will tender to the Company your resignation of all offices with the Company as of the date of your termination, such resignation not being relevant to the issue of the reason for your termination under this Agreement.

 

1.2.         Devotion to Duties.  While you are employed hereunder, you will use your best efforts, skills and abilities to perform faithfully all duties assigned to you pursuant to this Agreement and will devote your full business time and energies to the business and affairs of the Company.  While you are employed hereunder, you will not undertake any other employment from any person or entity without the prior written consent of the Company.

 

2.              Term.  This Agreement shall continue until termination as provided in Section 4.  The term of this Agreement shall be referred to as the “Agreement Term.”

 

3.              Compensation.

 

3.1.         Base Salary.  While you are employed hereunder, the Company will pay you a base salary at the annual rate of no less than $221,450 per year (the “Base Salary”).  You shall be eligible for an annual salary increase in the good faith determination of the Company and the Compensation Committee of its Board of Directors. The Company will pay such

 

 

 

Base Salary on a semi-monthly basis in accordance with the Company’s normal payroll practices and will deduct from each monthly salary payment all amounts required to be deducted or withheld under applicable law or under any employee benefit plan in which you participate.

 

3.2.         Bonus Opportunity.  You will be eligible to receive an annual cash bonus in an amount of up to 120% of the Base Salary, based upon the Company’s good faith assessment of your achievement of individual goals, and of the Company’s achievement of its goals, which assessment shall be done by the Company’s Compensation Committee in conjunction with the Company’s Chief Executive Officer.  Individual goals for each calendar year will be established, and modified, in good faith by you and the Chief Executive Officer in conjunction with the Company’s Compensation Committee.  The Company expects that the annual target bonus opportunity will be in the range of 60% of your Base Salary for performance fully meeting those expectations.  To the extent the Company awards you a cash bonus, the bonus, if payable, shall be calculated and paid no later than two and a half months following the later of the close of the calendar or Company fiscal year to which such bonus relates.  In order to receive an annual bonus, you must be employed at the time of a timely payment.  For your first year of employment, and any other partial year, your cash bonus will be awarded on a pro rata basis.

 

3.3.         Fringe Benefits.  You will be entitled to participate in all employee benefit plans which the Company provides or may establish for the benefit of its senior executives (for example, group life, disability, medical, dental and other insurance, retirement, pension, profit-sharing and similar plans) (collectively, the “Fringe Benefits”).  Your eligibility to participate in the Fringe Benefits and receive benefits thereunder will be subject to the plan documents governing such Fringe Benefits.  Nothing contained herein will require the Company to establish or maintain any Fringe Benefits.

 

4.              Termination.  This Agreement shall terminate upon the occurrence of any of the following, subject to the applicable provisions of Section 5 below:

 

4.1.         Termination by You or by the Company Without Cause.  You may terminate this Agreement at any time upon not less than 30 days prior written notice to the Company.  The Company may terminate this Agreement, without Cause, at any time upon written notice to you.

 

4.2.         Termination for Cause.  This Agreement shall terminate, at the election of the Company, for Cause upon written notice by the Company to you.  For the purposes of this Section, “Cause” for termination shall be limited to the following:

 

a)             Your conviction of a felony; or

 

b)             Your commission of fraud, or misconduct that results in material and demonstrable damage to the business or reputation of the Company; or

 

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c)              Your willful and continued failure to perform your duties hereunder (other than such failure resulting from your incapacity due to disability, as defined herein) within 10 business days after the Company delivers a written demand for performance to you that specifically identifies the actions to be performed.

 

4.3.         Death or Disability.  This Agreement shall terminate upon your death or disability. If you shall be disabled so as to be unable to perform the essential functions of your position under this Agreement with or without reasonable accommodation, the Board may remove you from any responsibilities and/or reassign you to another position with the Company during the period of such disability, and such reassignment shall not trigger a Good Reason termination as provided herein.  Notwithstanding any such removal or reassignment, you shall continue to receive your Base Salary (less any disability pay or sick pay benefits to which you may be entitled under the Company’s policies) and benefits under this Agreement (except to the extent that you may be ineligible for one or more such benefits under applicable plan terms) for a period of three months, and your employment may be terminated by the Company at any time thereafter.  Nothing in this Section shall be construed to waive your rights, if any, under existing law including, without limitation, the Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et seq. and the Americans with Disabilities Act, 42 U.S.C. §12101 et seq.

 

Notwithstanding the foregoing, if and only to the extent that your disability is a trigger for the payment of deferred compensation, as defined in Section 409A of the Code, “disability” shall have the meaning set forth in Section 409A(a)(2)(C) of the Code.

 

5.              Effect of Termination.

 

5.1.         Termination for Cause, Death, Disability or Voluntary Resignation.  In the event (i) you are terminated for Cause; (ii) you are terminated for death or Disability; or (iii) you voluntarily resign (other than for Good Reason), unless otherwise specifically provided herein, you, or your estate, shall be eligible only to receive (i) the portion of your Base Salary as has accrued prior to the effectiveness of such termination and has not yet been paid, (ii) an amount equal to the value of your accrued unused vacation days, and (iii) reimbursement for expenses properly incurred by you on behalf of the Company prior to such termination if such expenses are properly documented in accordance with Company policy and practice and submitted for reimbursement within 30 days of the termination date (collectively, the “Accrued Obligations”).  Such amounts will be paid promptly after termination in accordance with Massachusetts law and in no event more than 45 days after the date on which your employment terminates.

 

5.2.         Termination Without Cause or Resignation for Good Reason.  In the event that (i) you are terminated without Cause; or (ii) you resign for Good Reason, and contingent on your executing a complete release of claims against the Company with standard exceptions for vested benefits and equity interests, rights to indemnification, and exceptions for all claims

 

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not waivable under applicable law, and provided you do not revoke the release (a fully effective release is hereafter, the “Release”) within thirty (30) days after the date of termination, you shall be entitled, in addition to the Accrued Obligations, to receive:

 

a)             continuation of your Base Salary in effect at the time of termination for a period of twelve (12) months, commencing on the 37th day after the date on which your employment terminates (provided the Release is effective prior to such date), payable in accordance with the Company’s normal payroll practices, provided that the first payment will include all amounts which would have been paid in the 37 days following your termination of employment.

 

b)             payment of COBRA premiums to maintain medical and dental benefits, if any, in effect at the time of termination until the earlier of (x) 12 months following the termination and (y) the date you become insured under a medical insurance plan providing similar benefits to that of the Company plan.

 

5.3.         Additional Benefits upon Termination in Connection With a Change of Control.  In the event that your employment is terminated by the Company without Cause or by you for Good Reason (each as defined herein) within 12 months immediately following or 6 months immediately prior to a Change of Control, then, in addition to the Accrued Obligations, and contingent on your executing a complete release of claims against the Company, and provided you do not revoke the release (a fully effective release is hereafter, the “Release”) within thirty (30) days after the date of termination, you shall be entitled, in addition to the Accrued Obligations, to receive:

 

a)             continuation of your Base Salary in effect at the time of termination for a period of twelve (12) months, commencing on the 37th day after the date on which your employment terminates (provided the Release is effective prior to such date), payable in accordance with the Company’s normal payroll practices, provided that the first payment will include all amounts which would have been paid in the 37 days following your termination of employment.

 

b)             payment of COBRA premiums to maintain medical and dental benefits, if any, in effect at the time of termination until the earlier of (x) 12 months following the termination and (y) the date you become insured under a medical insurance plan providing similar benefits to that of the Company plan.

 

c)              full vesting of all unvested equity, including but not limited to any options or restricted stock granted to you under the 2006 Stock Plan or any authorized successor stock plan, provided that the conditions to vesting other than the passage of time have been satisfied.

 

5.4.         Excise Tax.  You agree that the payments and benefits hereunder, and under all other contracts, arrangements or programs that apply to you (the “Company Payments”), shall be reduced to an amount that is one dollar less than the amount that would trigger an excise tax under Section 4999 of the Code, as determined in good faith by the

 

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Company’s independent public accountants, provided, however, that the reduction shall occur only if the reduced Company Payments received by you (after taking into account further reductions for applicable federal, state and local income, social security and other taxes) would be greater than the unreduced Company Payments to be received by you minus (i) the excise tax payable with respect to such Company Payments under Section 4999 of the Code; and (ii) all applicable federal, state and local income, social security and other taxes on such Company Payments.  You and the Company agree to cooperate in good faith with each other in connection with any administrative or judicial proceedings concerning the existence or amount of golden parachute penalties with respect to payments or benefits that you receive. In the event that such payments are required to be reduced pursuant to this Section, such payments shall be reduced in the following order:  (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits, and to the extent any payment is to be made over time (e.g., in installments, etc.), then the payments shall be reduced in reverse chronological order.

 

5.5.         “Change of Control”.  As used herein, a “Change of Control” shall occur or be deemed to have occurred only upon any one or more of the following events:

 

a)             any “person” (as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) becomes a “beneficial owner” (as such term is defined in Rule 13d-3 promulgated under the Exchange Act) (other than the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any corporation owned, directly or indirectly, by the stockholders of the Company, in substantially the same proportions as their ownership of stock of the Company), directly or indirectly, of securities of the Company, representing fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities; or

 

b)             persons who, as of the Commencement Date, constituted the Company’s Board of Directors (the “Incumbent Board”) cease for any reason including, without limitation, as a result of a tender offer, proxy contest, merger, consolidation or similar transaction, to constitute at least a majority of the Board of Directors, provided that any person becoming a director of the Company subsequent to the Commencement Date whose election was approved by at least a majority of the directors then comprising the Incumbent Board shall, for purposes of this Section, be considered a member of the Incumbent Board; or

 

c)              the consummation of a merger or consolidation of the Company with any other corporation or other entity, other than (1) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving

 

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entity outstanding immediately after such merger or consolidation or (2) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no “person” (as hereinabove defined) acquires more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities; or

 

d)             the stockholders of the Company approve a plan of complete liquidation of  the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets.

 

5.6.         Definition of Good Reason.  As used in this Agreement, ‘Good Reason’ means that you have complied with the ‘Good Reason Process’ (hereinafter defined) following the occurrence of any of the following events:  (i) a material diminution in your responsibilities, authority or duties or the assignment to you of duties materially inconsistent with this Agreement; (ii) a diminution in your Base Salary below the minimum Base Salary set forth herein; (iii) a material change in the geographic location at which you provide services to the Company with the relocation of your principal place of business beyond 40 road miles from the Company’s Cambridge, MA offices being material;  (iv) the material breach of this Agreement by the Company; or (v) a change in your reporting relationship to the Chief Executive Officer as set forth herein ‘Good Reason Process’ shall mean that (i) you reasonably determine in good faith that a ‘Good Reason’ condition has occurred; (ii) you notify the Company in writing of the occurrence of the Good Reason condition within 60 days of the occurrence of such condition; (iii) you cooperate in good faith with the Company’s efforts, for a period not less than 30 days following such notice (the ‘Cure Period’), to remedy the condition; (iv) notwithstanding such efforts, the Good Reason condition continues to exist; and (v) you terminate your employment within 60 days after the end of the Cure Period.  If the Company permanently cures the Good Reason condition during the Cure Period, Good Reason shall be deemed not to have occurred.

 

5.7.         Separation from Service.  Notwithstanding anything set forth in Sections 4 and 5 of this Agreement, a termination of employment shall be deemed not to have occurred until such time as you incur a “separation from service” with the Company in accordance with Section 409A(a)(2)(A)(i) of the Code and the applicable provisions of Treasury Regulation Section 1.409A-1(h).

 

5.8.         Section 409A.  Anything in this Agreement to the contrary notwithstanding, if at the time of your ‘separation from service,’ the Company determines that the you are a ‘specified employee’ within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that you become entitled to under this Agreement on account of your separation from service would be considered deferred compensation subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one day after your separation from service, or (B) your death.  If any such delayed cash payment is otherwise payable on an installment basis, the first

 

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payment shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the application of this provision, and the balance of the installments shall be payable in accordance with their original schedule.  Solely for purposes of Section 409A of the Code, each installment payment described in Section 5 is considered a separate payment.

 

6.              Taxes.  All payments required to be made by the Company to you under this Agreement shall be subject to the withholding of such amounts for taxes and other payroll deductions as the Company may reasonably determine it should withhold pursuant to any applicable law or regulation.  To the extent applicable, it is intended that this Agreement be exempt from, or comply with, the provisions of Section 409A of the Code, and this Agreement shall be construed and applied in a manner consistent with this intent.  In the event that any severance payments or benefits hereunder are determined by the Company to be in the nature of nonqualified deferred compensation payments, you and the Company hereby agree to take such actions as may be mutually agreed to ensure that such payments or benefits comply with the applicable provisions of Section 409A of the Code and the official guidance issued thereunder.  Notwithstanding the foregoing, the Company does not guarantee the tax treatment or tax consequences associated with any payment or benefit arising under this Agreement.

 

7.              Disclosure to Future Employers.  You will provide, and the Company, in its discretion, may similarly provide, a copy of the covenants contained in the Employee Noncompetition, Confidentiality and Inventions Agreement to any business or enterprise which you may, directly or indirectly, own, manage, operate, finance, join, control or in which you may participate in the ownership, management, operation, financing, or control, or with which you may be connected as an officer, director, employee, partner, principal, agent, representative, consultant or otherwise.

 

8.              Representations.  You hereby represent and warrant to the Company that you understand this Agreement, that you enter into this Agreement voluntarily and that your employment under this Agreement will not conflict with any legal duty owed by you to any other party.

 

9.              General.

 

9.1.                Notices.  All notices, requests, consents and other communications hereunder which are required to be provided, or which the sender elects to provide, in writing, will be addressed to the receiving party’s address set forth above or to such other address as a party may designate by notice hereunder, and will be either (i) delivered by hand, (ii) sent by overnight courier, or (iii) sent by registered or certified mail, return receipt requested, postage prepaid.  All notices, requests, consents and other communications hereunder will be deemed to have been given either (i) if by hand, at the time of the delivery thereof to the receiving party at the address of such party set forth above, (ii) if sent by overnight courier, on the next business day following the day such notice is delivered to the courier service, or (iii) if sent by registered or certified mail, on the 5th business day following the day such mailing is made.

 

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9.2.                Entire Agreement.  This Agreement, together with any Stock Option Agreements executed by you and the Company (either prior to or in conjunction with this Agreement) and your Employee Noncompetition, Confidentiality and Inventions Agreement, embody the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof.  No statement, representation, warranty, covenant or agreement of any kind not expressly set forth in this Agreement will affect, or be used to interpret, change or restrict, the express terms and provisions of this Agreement.

 

9.3.                Modifications and Amendments.  The terms and provisions of this Agreement may be modified or amended only by written agreement executed by the parties hereto.

 

9.4.                Waivers and Consents.  The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by written document executed by the party entitled to the benefits of such terms or provisions.  No such waiver or consent will be deemed to be or will constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether or not similar.  Each such waiver or consent will be effective only in the specific instance and for the purpose for which it was given, and will not constitute a continuing waiver or consent.

 

9.5.                Assignment.  The Company shall cause its rights and obligations hereunder to be assumed by any person or entity that succeeds to all or substantially all of the Company’s business or that aspect of the Company’s business in which you are principally involved and may assign its rights and obligations hereunder to any Company affiliate.  You may not assign your rights and obligations under this Agreement without the prior written consent of the Company and any such attempted assignment by you without the prior written consent of the Company will be void; provided, however, in the event of your death, your rights, compensation and benefits under this Agreement shall inure to the benefit of your estate, such that, for example, stock issuable to you, and awards and payments payable to you, shall be issued and paid to your estate.

 

9.6.                Governing Law.  This Agreement and the rights and obligations of the parties hereunder will be construed in accordance with and governed by the law of Massachusetts, without giving effect to the conflict of law principles thereof.

 

9.7.                Jury Waiver. You and the Company agree to waive trial by jury in connection with any action arising from or relating to this Agreement.

 

9.8.                Severability.  The parties intend this Agreement to be enforced as written.  However, if any portion or provision of this Agreement is to any extent declared illegal or unenforceable by a duly authorized court having jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, will not be affected thereby, 

 

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and each portion and provision of this Agreement will be valid and enforceable to the fullest extent permitted by law.

 

9.9.                Headings and Captions.  The headings and captions of the various subdivisions of this Agreement are for convenience of reference only and will in no way modify or affect the meaning or construction of any of the terms or provisions hereof.

 

9.10.         Acknowledgments.  You recognize and agree that the enforcement of the Noncompetition, Nondisclosure and Inventions Agreement is necessary to ensure the preservation, protection and continuity of the business, trade secrets and goodwill of the Company.  You agree that, due to the proprietary nature of the Company’s business, the restrictions set forth in the Noncompetition, Confidentiality and Inventions Agreement are reasonable as to time and scope.

 

9.11.         Counterparts.  This Agreement may be executed in two or more counterparts, and by different parties hereto on separate counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

 

9.12.         Conditions.  This Agreement is subject to and contingent upon the Company’s receipt of proof that you have appropriate authorization to work in the United States as required by U.S. laws and regulations, and upon satisfactory completion of a background check.

 

If you accept the above terms, please so indicate by signing and returning to us the enclosed copy of this Agreement.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
METABOLIX,   INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Richard P. Eno
    
	
 
    	
Name:
    	
Richard   P. Eno
    
	
 
    	
Title:   
    	
President   & CEO
    
				

 

Accepted and Agreed:

 

 

	
/s/ Max Senechal
    	
 
    	
5/17/2012
    
	
Max Senechal
    	
 
    	
Date
    

 

9Exhibit 10.1

 

SCBT Financial Corporation — Executive Performance Plan

 

PURPOSE - The purpose of the SCBT Financial Corporation Executive Performance Plan (this “Executive Performance Plan” or this “Plan”, which terms includes any Annex attached hereto or that may hereafter be attached hereto) is to establish reasonable goals and objectives in light of the economic environment while promoting the long-term growth and financial success of SCBT Financial Corporation and its subsidiaries (the “Company”) by (1) attracting and retaining key officers and employees of outstanding ability, (2) strengthening the Company’s capability to develop, maintain, and direct a competent management team, (3) providing an effective means for selected key officers and employees to acquire and maintain ownership of Company stock, and (4) providing incentive compensation opportunities competitive with those of other major corporations.

 

This Executive Performance Plan describes the terms pursuant to which the Company plans to distribute cash bonuses and issue stock options and restricted stock to certain of the Company’s key officers and employees.  The stock options and restricted stock described in this Executive Performance Plan will be reserved for issuance under, and will be issued pursuant to, the SCBT Financial Corporation Omnibus Stock and Performance Plan.  The actual issuance of stock options and restricted stock will be made pursuant to separate agreements that will be entered into between the Company and each participant under the SCBT Financial Corporation Omnibus Stock and Performance Plan.  Capitalized terms not defined in this Executive Performance Plan shall have the definitions attributed to such terms in the SCBT Financial Corporation Omnibus Stock and Performance Plan.

 

TERM - This Executive Performance Plan is intended to cover the fiscal year ending on December 31, 2012. In addition, the Compensation Committee of the Board (the “Committee”) of the Company may determine in its discretion whether to apply this plan in any subsequent years (in which case the Compensation Committee will attached new Annex A and/or Annex B to this Plan with respect to any such year), or to implement a different incentive plan, or no incentive plan, in any subsequent year.   The Committee anticipates that the cash bonus and/or the stock options and restricted stock grants under the Executive Performance Plan for 2012 would be paid out and/or issued in January 2013, based on the achievement of specified performance goals for the year 2012, and otherwise based on the Committee’s evaluation of individual performance (and the Committee anticipates that in any subsequent year in which this Plan applies, the cash bonus and/or the stock options and restricted stock grants under the Executive Performance Plan would be paid out and/or issued in January of the subsequent year, based on the achievement of specified performance goals for the applicable performance year, and otherwise based on the Committee’s evaluation of individual performance).

 

EQUITY TYPE - Two equity instruments are anticipated to be used in the Executive Performance Plan: stock options and restricted stock.  The Committee’s intent is to use incentive stock options (as defined in IRC § 422) whenever practical.  All equity awards described in this Executive Performance Plan will be issued under and pursuant to the terms of the SCBT Financial Corporation Omnibus Stock and Performance Plan, unless another equity plan has been duly adopted in accordance with applicable law and stock exchange requirements, in which case the Committee may also elect to issue stock options or restricted stock under such equity plan.

 

PARTICIPANTS - The Committee shall have the discretion to designate the key officers and employees who will participate in the Executive Performance Plan.

 

AWARDS - The Committee anticipates that three types of awards will be granted pursuant to this Executive Performance Plan, one of which is cash based and two of which are equity based (stock options and restricted stock).  The Company intends to reserve a number of shares of Common Stock for the annual award of stock options and annual grant of restricted stock to each participant.  However, the actual issuance or grant of options or restricted stock to each participant would likely be made at the beginning of the year following the applicable performance year, or as soon thereafter as practicable.  The Executive Performance Plan is primarily composed of performance-based opportunities but does permit individual performance bonus payments (including individual performance

 

 

bonus payments for extraordinary events and/or performance).  Individual performance bonus payments are based on the Committee’s evaluation of the individual’s performance, provided that the Committee has no obligation to pay any such bonuses.  The Company’s achievement of certain performance goals, and the Committee’s evaluation of individual performance, will determine the actual amount of stock options and restricted stock that may be issued, and the issuance would be made during or after January of the year immediately following the relevant performance year.

 

ANNUAL PERFORMANCE GOALS

 

Under the Executive Performance Plan, performance-based opportunities may be based on levels of, maintenance of or changes in (or ratios or per share amounts based on) any of the following (as determined by the Committee, in its discretion): non-performing asset levels; the classified assets/capital ratio; regulatory ratings; net income; loans; deposits; earnings before extraordinary, nonrecurring and/or unusual items; net operating income; operating earnings; consolidated total revenue; market share; earnings before taxes; stock price; return on equity, tangible equity, or assets; total shareholders’ return; levels of expenses; overhead ratios;  efficiency ratios; loan quality (including classified assets); net charge offs, including ratios of charge-total loans or other measures; customer satisfaction scores; economic value added; and/ or any such other measures of soundness, profitability and/or growth as the Committee deems to be appropriate.  The performance-based Executive Performance Plan goals for a particular year shall be determined by the Committee and set forth on Annex A.

 

ANNUAL INDIVIDUAL PERFORMANCE BONUS OPPORTUNITY

 

Individual Performance bonus payments/issuances (including bonus payments/issuances for extraordinary events and/or performance), if any, are determined based on the Committee’s evaluation of individual performance.  The Committee may take into consideration, among other factors, team building, customer relations, strategic initiatives or other factors, as the Committee may deem to be appropriate in its discretion.

 

NEW PARTICIPANTS - If an executive joins the Company during an applicable Plan year, the Board may elect to include the new executive in the Executive Performance Plan for such year.  The executive would be awarded a pro rata annual award for such year.

 

TERMINATION OF EMPLOYMENT - Unless determined otherwise by the Committee, each option and restricted stock agreement will contain substantially the following provisions:

 

(a)  If the termination of employment is voluntary on the part of the participant and without written consent of the Company, or is by the Company with cause (as such term is defined in the participant’s employment agreement with the Company as then in effect, if any), the participant will (i) be entitled to retain all vested restricted stock but will forfeit any unvested awards and (ii) have 90 days to exercise any vested stock options but will forfeit any unvested options.

 

(b)  If the termination of employment is by the Company without cause, the participant will (i) be entitled to retain all vested and unvested shares of restricted stock (and all unvested awards will vest immediately upon termination) and (ii) have 90 days to exercise any vested stock options but will forfeit any unvested options.

 

(c)  If termination is due to the participant’s death or retirement (defined as normal retirement at age 65 or a total of 25 years of service with the Company), (i) the participant (or the participant’s beneficiary) will receive not only the vested shares of restricted stock but also the number of shares earned but unvested (the remaining shares will vest upon the participant’s death or disability), and (ii) all outstanding stock options will vest upon the participant’s death or disability and the participant (or the participant’s beneficiary) will have one year (in the case of disability) and two years (in the case of death) to exercise the stock options.

 

 

(d)  In the event of a change in control, all earned but unvested shares of restricted stock and unvested stock options will become fully vested immediately.

 

STOCK OPTION AND RESTRICTED STOCK AGREEMENTS - The Company will prepare separate stock option and restricted stock agreements to reflect the issuance of the stock options and restricted stock described in this Executive Performance Plan.  The Company reserves full discretion to establish the terms of each such agreement, including terms that may be different from or inconsistent with those described in this Executive Performance Plan.  To the extent the terms of any such agreement prepared by the Company are inconsistent with the terms of this Executive Performance Plan, the terms of the individual agreement shall control.

 

DODD-FRANK ACT COMPLIANCE - The Dodd-Frank Act requires the SEC to direct the national securities exchanges and national securities associations to prohibit the listing of any security of an issuer that does not, among other things,  implement a policy (a “claw-back policy”) providing, among other things, that, in the event that the issuer is required to prepare an accounting restatement due to the material noncompliance of the issuer with any financial reporting requirement under the securities laws, the issuer will recover from any current or former executive officer of the issuer who received incentive-based compensation (including stock options awarded as compensation) during the 3-year period preceding the date on which the issuer is required to prepare an accounting restatement, based on the erroneous data, in excess of what would have been paid to the executive officer under the accounting restatement.  If and when SCBT adopts any such claw-back policy, any cash payments or equity awards under this Plan shall be subject to such claw-back policy if and to the extent provided in such claw-back policy.

 

MISCELLANEOUS - This Executive Performance Plan (which term includes any Annex attached hereto) is a statement of current intention only, and it does not create any legally binding rights in favor of any officer or employee of the Company to receive cash bonuses, stock options or restricted stock from the Company.  Any bonus payment/issuance under this Executive Performance Plan for 2012 performance shall be made before March 14, 2013; and if the Executive Performance Plan is applied in any subsequent year, then any bonus payment/issuance under this Executive Performance Plan for such year shall be made on or before March 14 of the year immediately subsequent to the performance year.  This timing requirement shall be binding, notwithstanding that the rest of the provisions of this Executive Performance Plan are non-binding, on the Company.  A participant must be employed by the Company on the date of payment/issuance in order to receive a payment/issuance under the Executive Performance Plan, unless the Committee determines otherwise in its sole discretion in a specific instance.  The Committee has the right to interpret this Executive Performance Plan in its sole discretion, and its interpretations shall be binding on any participants.  The Committee can modify, amend or terminate this Executive Performance Plan at any time.  This Executive Performance Plan is not intended to be exclusive; the Company may provide compensation in any other manner that it chooses.

 

 

ANNEX A

 

SCBT EXECUTIVE PERFORMANCE PLAN

 

STRUCTURE OF AWARDS FOR 2012 PERFORMANCE

 

For 2012, the Executive Performance Plan shall have cash and equity components:

 

1.                                      Cash Incentive: For 2012, the Executive Performance Plan will pay out 50% in the form of cash.  The amount of cash will be paid out 75% based upon applicable corporate goals and objectives for 2012 and 25% based upon an assessment of individual performance, also referred to herein as an individual performance bonus.  The specific amounts of cash paid out will depend upon the specific officer level.

 

2.                                      Equity Incentive: In addition to cash, for 2012 the Executive Performance Plan will pay out 50% in the form of equity.  The equity will be made up of both restricted stock and stock options as follows:

 

·              Restricted Stock: Of the equity granted, 75% will be in the form of restricted stock.  Of the total opportunity (cash & equity) for a given level, this will represent 37.5% of the total 100% opportunity level.  All 100% of the restricted stock will be granted based upon achievement of 2012 corporate goals and objectives.  The 30-day moving average of SCBT’s stock price will be utilized to determine the value of restricted stock and, accordingly, in calculating how many shares of restricted stock will be issued under the Executive Performance Plan for 2012.  Restricted stock will have four (4) year cliff vesting.

 

·              Stock Options: The remaining 25% of equity will be granted in the form of stock options, representing 12.5% of the total opportunity for a given level. Each stock option will have an exercise price equal to SCBT’s stock price on the grant date and will be valued based on the stock option’s fair value computed by SCBT’s financial reporting software in accordance with FASB ASC Topic 718. Stock options will be granted based upon an assessment of individual performance.  Stock options will vest 25% per year on the anniversary of the grant date.

 

Performance-Based Goals & Objectives: The specific 2012 goals and objectives are provided below.   The goals and objectives are predicated upon threshold performance where 50% of the opportunity is paid, target where 100% of the opportunity is paid, and maximum, where 170% of the opportunity is paid.

 

Individual Performance Bonus:  While goals & objectives dictate 75% of how the 2012 Executive Performance Plan will pay out with respect to the Cash Incentive component and Equity Incentive component, the other 25% will be based on assessment of individual performance for the Stock Options component and a portion of the Cash Incentive component.  The Stock Option component will be 100% based on individual evaluations.  The Committee may take into consideration, among other factors, team building, leadership development, other strategic initiatives and other qualitative and quantitative performance criteria as the Committee may deem to be appropriate in its judgment.  This is done to allow the Committee to, among other things, take into account actions, circumstances and events which are not necessarily formulaic in nature.

 

 

2012 SCBT Performance Plan Levels

 

	
 
    	
 
    	
Total
    	
 
    	
Formula-Based Levels
    	
 
    	
Individual Evaluation(1)
    	
 
    
	
 
    	
 
    	
Opportunity
    	
 
    	
Threshold
    	
 
    	
Target
    	
 
    	
Max
    	
 
    	
Threshold
    	
 
    	
Target
    	
 
    	
Max
    	
 
    
	
Payout as a % of Target
    	
 
    	
100
    	
%
    	
50
    	
%
    	
100
    	
%
    	
170
    	
%
    	
50
    	
%
    	
100
    	
%
    	
170
    	
%
    
	
Cash Incentive
    	
 
    	
50
    	
%
    	
18.75
    	
%
    	
37.5
    	
%
    	
63.75
    	
%
    	
6.25
    	
%
    	
12.5
    	
%
    	
21.25
    	
%
    
	
Restricted Stock
    	
 
    	
37.5
    	
%
    	
18.75
    	
%
    	
37.5
    	
%
    	
63.75
    	
%
    	
0
    	
%
    	
0
    	
%
    	
0
    	
%
    
	
Stock Options
    	
 
    	
12.5
    	
%
    	
0
    	
%
    	
0
    	
%
    	
0
    	
%
    	
6.25
    	
%
    	
12.5
    	
%
    	
21.25
    	
%
    

 

(1)         25% of the annual incentive plan (cash) opportunity, and the stock option portion of the long-term incentive plan (which stock options represent 25% of the long-term incentive opportunity), are based on individual evaluations, which may reflect qualitative and quantitative criteria as described in this Plan, and such criteria, the individual evaluations, the level of individual performance that constitutes threshold, target and maximum individual performance, and any related payout amounts (which amounts could be less than the threshold amount or could be between the threshold, target or maximum amounts) will be determined by the Committee in its sole judgment.

 

PERFORMANCE GOALS FOR 2012 - Three categories of performance goals will be used:  Soundness, Profitability, and Asset Growth.  The amount of cash bonus and restricted stock issued will depend on the level achieved for each performance goal.  Each award level will increase upon achievement of performance goals at the threshold, target or maximum level.  Payout will be prorated for performance between the levels of threshold, target and maximum.  For example, if non-performing assets are 2.195% (the mid point between threshold and target performance) then 75% (the mid point between the threshold and target payout) of target will be paid, as opposed to paying at the threshold level (50% of target for achieving the 2.00% threshold performance).  The Committee will approve the performance goals and confirm their achievement for each particular cash bonus or grant of restricted stock or stock options prior to making that cash bonus or particular grant, as applicable.

 

Overall Plan Triggers:  The performance-based payouts will only be made if both (i) the bank receives a composite rating from the principal bank regulator that is at least as high as the Company’s most recent rating, and (ii) aggregate net income for 2012 covers aggregate dividends paid in respect of 2012 performance (i.e., dividends paid in the second, third and fourth quarters of 2012 and the first quarter of 2013).

 

The “Soundness” goal is measured based on the following components:  (i) reduction in NPAs as a percentage of total assets by 7.4% (threshold), 12.7% (target), or 18.0% (maximum) as of December 31, 2012, compared to December 31, 2011; and (ii) maintaining an asset quality rating from the principal bank regulator that is at least as high as the Company’s most recent rating (achieving this objective results in a maximum payout under this soundness subcategory clause (ii), and there is no payout under this soundness subcategory clause (ii) if this objective is not achieved).  The “Soundness” goal is weighted at 25% of the total performance-based opportunity under the Executive Performance Plan (with the percentage of non-performing assets determining 12.5% of the total performance-based opportunity and the asset quality rating determining 12.5% of the total performance-based opportunity).

 

 

The “Profitability” goal is achieved by reaching earnings per share of 86.5% of the budgeted amount (threshold), reaching 100% of the budgeted amount (target), or reaching 113.5% of the budgeted amount (maximum).  The “Profitability” goal is weighted at 50% of the total performance-based opportunity under the Executive Performance Plan for 2012.

 

The “Asset Growth” goal is measured by increasing the percentage growth in total assets in 2012, compared to the percentage growth in total assets in 2011, by 2.4% (threshold), 14.3% (target) or 26.2% (maximum).  The “Asset Growth” goal is weighted at an aggregate of 25% of the total performance-based opportunity under the Executive Performance Plan.

 

The performance goals and associated payouts are summarized in the chart below.

 

2012 SCBT Formula-Based Plan Goals

 

	
 
    	
 
    	
Soundness
   (25%)
    	
 
    	
Profitability
   (50%)
    	
 
    	
Growth
   (25%)
    	
 
    
	
 
    	
 
    	
% Decrease
   in NPA Level
   (12.5%)
    	
 
    	
Asset
   Quality(1)
   (12.5%)
    	
 
    	
EPS
   (as a % of budget)
    	
 
    	
% Increase in
   % Growth in Assets
   over 2011
   % Growth in Assets
    	
 
    
	
Threshold
    	
 
    	
 7.4%
    	
 
    	
See footnote 1
    	
 
    	
 86.5%
    	
 
    	
2.40%
    	
 
    
	
Target
    	
 
    	
12.7%
    	
 
    	
 
    	
 
    	
  100%
    	
 
    	
14.3%
    	
 
    
	
Maximum
    	
 
    	
18.0%
    	
 
    	
 
    	
 
    	
113.5%
    	
 
    	
26.2%
    	
 
    

 

(1)         The “Asset Quality” component of Soundness is achieved by maintaining an asset quality rating from the principal bank regulator that is at least as high as the Company’s most recent rating (achieving this objective results in a maximum payout under this soundness subcategory clause, and there is no payout under this soundness subcategory if this objective is not achieved).

 

PERFORMANCE-BASED (FORMULA-BASED) CASH INCENTIVE -  Annex B shows the applicable percentage of each participant’s base salary that the participant is eligible to receive if the performance-based goals of the Company are achieved at the threshold (50% of target opportunity), target, or maximum (170% of target opportunity) levels.

 

INDIVIDUAL PERFORMANCE-BASED CASH INCENTIVE - Participants would also be eligible for an individual evaluation-based cash incentive based on service in 2012.  The Committee will set the level of such cash payouts that any participant receives, if any, up to a maximum payout of one-third (1/3) of the value of the maximum performance-based cash opportunity level for the particular participant based on performance in 2012 (regardless of whether any of the performance-based goals have been achieved).

 

PERFORMANCE-BASED (FORMULA-BASED) EQUITY INCENTIVE - Annex B shows the applicable percentage of the each participant’s base salary that the participant would be eligible to receive in shares of restricted stock if the performance-based goals of the Company are achieved at the threshold (50% of

 

 

target opportunity), target, or maximum (170% of target opportunity) levels.   Dividends paid and voting rights will be attached to all shares of restricted stock issued under the Executive Performance Plan for 2012.

 

INDIVIDUAL PERFORMANCE-BASED EQUITY INCENTIVE — Participants would also be eligible for an individual evaluation -based equity incentive (stock options) based on service in 2012.  The Committee will set the level of such grants of stock options that any participant receives, if any, up to a maximum value (determined as set forth in the Executive Performance Plan) of one-third (1/3) of the value of the maximum performance-based equity (restricted stock) opportunity level for the particular participant based on performance in 2012 (regardless of whether any of the performance-based goals have been achieved).

 

Any merger or acquisition related activity awards payout may result in adjustments to the 2012 Executive Performance Plan, to be determined by the Committee.

 

POTENTIAL CLAW-BACKS: If and when SCBT adopts any claw-back policy, any cash payments or equity awards under this Plan may be made subject to any such claw-back policy if and to the extent determined by the Committee.

 

 

ANNEX B

 

SCBT EXECUTIVE PERFORMANCE PLAN

 

2012 PERFORMANCE PLAN OPPORTUNITIES

 

	
 
    	
 
    	
 
    	
 
    	
AIP Opportunity (1)
    	
 
    	
LTI Opportunity (1)
    	
 
    	
Total Opportunity
   (AIP + LTI) (1)
    	
 
    
	
Name
    	
 
    	
Position
    	
 
    	
Thresh
    	
 
    	
Target
    	
 
    	
Max
    	
 
    	
Thresh
    	
 
    	
Target
    	
 
    	
Max
    	
 
    	
Thresh
    	
 
    	
Target
    	
 
    	
Max
    	
 
    
	
Payout Spread
    	
 
    	
 
    	
 
    	
(50
    	
)%
    	
(100
    	
)%
    	
(170
    	
)%
    	
(50
    	
)%
    	
(100
    	
)%
    	
(170
    	
)%
    	
(50
    	
)%
    	
(100
    	
)%
    	
(170
    	
)%
    
	
Robert Hill 
    	
 
    	
President and CEO
    	
 
    	
26.0
    	
%
    	
52.0
    	
%
    	
88.0
    	
%
    	
26.0
    	
%
    	
52.0
    	
%
    	
88.0
    	
%
    	
52.0
    	
%
    	
104.0
    	
%
    	
176.0
    	
%
    
	
John Pollok 
    	
 
    	
Senior EVP, CFO
    	
 
    	
25.0
    	
%
    	
50.0
    	
%
    	
84.0
    	
%
    	
25.0
    	
%
    	
50.0
    	
%
    	
84.0
    	
%
    	
50.0
    	
%
    	
100.0
    	
%
    	
168.0
    	
%
    
	
John Windley 
    	
 
    	
President of SCBT, N.A.
    	
 
    	
21.5
    	
%
    	
43.0
    	
%
    	
73.0
    	
%
    	
21.5
    	
%
    	
43.0
    	
%
    	
73.0
    	
%
    	
43.0
    	
%
    	
86.0
    	
%
    	
146.0
    	
%
    
	
Joe Burns 
    	
 
    	
Sr. EVP, Chief Risk Off.
    	
 
    	
21.5
    	
%
    	
43.0
    	
%
    	
73.0
    	
%
    	
21.5
    	
%
    	
43.0
    	
%
    	
73.0
    	
%
    	
43.0
    	
%
    	
86.0
    	
%
    	
146.0
    	
%
    

 

(1)         25% of the annual incentive plan (cash) opportunity, and the stock option portion of the long-term incentive plan (which stock options represent 25% of the long-term incentive opportunity), are based on individual evaluations, which may reflect qualitative and quantitative criteria as described in the Executive Performance Plan, and such criteria, the individual evaluations, the level of individual performance that constitutes threshold, target and maximum individual performance, and any related payout amounts  (which amounts could be less than the threshold amount or could be between the threshold, target or maximum amounts) will be determined by the Committee in its sole judgment.

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