Document:

Exhibit

EXHIBIT 10.19

Texas Capital Bancshares, Inc. Nonqualified Deferred Compensation Plan

1.   Establishment of Plan.  Texas Capital Bancshares, Inc. (the “Company”) adopts and establishes an unfunded deferred compensation plan for a select group of management or highly compensated employees of the Company and its Affiliates, which shall be known as the Texas Capital Bancshares, Inc. Nonqualified Deferred Compensation Plan (the “Plan”).

2.   Purpose of Plan. The purpose of the Plan is to provide a select group of management or highly compensated employees (within the meaning of Sections 201(2), 301(a)(3) and
401(a)(1) of ERISA) of the Company, who contribute significantly to the future business success of the Company, with non-qualified deferred compensation benefits through the deferral of Base Salary and Bonus Compensation and through Discretionary Contributions, and as such it is intended that the Plan be exempt from the participation, vesting, funding, and fiduciary responsibility requirements of Title I of ERISA.  This Plan is also intended to qualify for simplified reporting under U.S. Department of Labor
Regulation Section 2530.104-23, which provides for an alternative method of compliance for plans described in such regulation.  The Plan shall be administered and interpreted to the extent possible in a manner consistent with that intent.

3.   Definitions.

3.1       “Acceleration Event” is defined in Section 11.1 hereof.

3.2       “Account” means an account maintained by the Company in the name of the Participant to reflect the Participant's interest under the Plan.  An Account may include either or both of the following:  (a) an Elective Deferral Account, and (b) a Discretionary Contribution Account.  Each Participant’s Account may have as many subaccounts (based on the type of contribution credited to the subaccount, vesting or distribution provisions applicable to the subaccount, or any other factors) as the Committee may determine to be appropriate.

3.3       “Affiliate” means any corporation, trade, or business treated as a single employer with the Company under Section 414(b) or (c) of the Code, and any other entity specifically designated by the Committee as an “Affiliate” for purposes of the Plan.  With the permission of the Company, Affiliates may adopt the Plan for their own employees.

3.4       “Award Agreement” means a written document provided by the Company to a Participant specifying the terms and conditions of any Discretionary Contribution to be made by the Company to the Participant’s Account for any period(s).

3.5       “Base Salary” means the annual rate of base pay paid by the Company or an Affiliate to or for the benefit of the Participant for services rendered.  The committee

may adopt such rules as it deems appropriate for the determination of a Participant’s Base
Salary.

3.6       “Beneficiary” means any person or entity entitled under Section 15.8 to receive Plan benefits upon or after a Participant's death.

3.7       “Board” means the Board of Directors of the Company, as constituted from time to time.

3.8       “Bonus Compensation” means any cash compensation earned by a Participant for services rendered by a Participant under any bonus or cash incentive plan maintained by the Company or an Affiliate.  The Committee may adopt such rules as it deems appropriate for the determination of Participants’ Bonus Compensation.

3.9       “Cause” means, except as may otherwise be provided in the Participant’s Award Agreement, termination of the Participant’s termination of employment upon the occurrence of any of the following events: (i) any act of fraud, misappropriation or embezzlement by the Participant with respect to any aspect of the Company’s business; (ii) the material breach by the Participant of any employment agreement between the Company and the Participant, including any protective covenants contained in any such agreement  (including, without limitation, a refusal to follow the Company or its designee’s lawful directives which are not inconsistent with the duties of the Participant’s position and the provisions of his or her employment agreement); (iii) the conviction of the Participant by a court of competent jurisdiction of a felony or of a crime involving moral turpitude; (iv) the intentional and material breach by the Participant of any non- disclosure or non-competition/non-solicitation provision of any agreement to which the Participant and the Company or any of its parent and affiliate companies are parties; (v) the intentional failure by the Participant to perform in all material respects  his or her duties and responsibilities (other than as a result of death or disability) and the failure of the Participant to cure the same in all material respects within fifteen (15) days after written notice thereof from the Company; (vi) the illegal use of drugs by the Participant’s during his or her employment by the Company that, in the determination of the Company’s Board, substantially interferes with the Participant’s performance of his or
her duties for the Company; (viii) acceptance of employment with any other employer except upon written permission of the Company’s Board; or (ix) the material breach by the Participant of his or her fiduciary duties to the Company. The Company shall provide the Participant with a written notice of termination (and in the case, of an event described in (ii) and (viii), thirty (30) days within which the Participant may cure such event constituting “Cause” before such termination is effective) which can be provided on the date of termination.

3.10     “Change in Control” means any of the following, but only to the extent such occurrence is a “Change in Control” under Section 409A of the Code with respect to the Participant:

(i)         on the date that any “Person” (as defined below), other than (A) the Company or any of its subsidiaries, (B) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, (C) an underwriter temporarily holding stock pursuant to an offering of such stock, or (D) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of the Company’s stock, acquires ownership of the Company’s stock that, together with stock held by such Person, constitutes more than 50% of the total fair market value or total voting power of the Company’s stock.  However, if any Person is considered to own already more than 50% of the total fair market value or total voting power of the Company’s stock, the acquisition of additional stock by the same Person is not considered to be a Change in Control.  In addition, if any Person has effective control of the Company through ownership of 50% or more of the total voting power of the Company’s stock, the acquisition of additional control of the Company by the same Person is not considered to cause a Change
in Control pursuant to this Section 3.10; or

(ii)       on the date during any 12-month period when a majority of members of the Board is replaced by directors whose appointment or election is not endorsed by a majority of the Board before the date of the appointment or election; provided, however, that any such director shall not be considered to be endorsed by the Board if his or her initial assumption of office occurs as a result of an actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

(iii)      on the date a plan of reorganization, merger, consolidation, sale of all or substantially all of the assets of the Company or similar transaction occurs or is effectuated in which the Company is not the resulting entity; provided, however, that such an event listed above will be deemed to have occurred or to have been effectuated upon receipt of all required regulatory approvals not
including the lapse of any required waiting periods.  However, there is no Change in Control when there is such a transfer to (i) a shareholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s stock; (ii) an entity, at least 50% of the total value or voting power of the stock of which is owned, directly or indirectly, by the Company; (iii) a Person that owns directly or indirectly, at least 50% of the total value or voting power of the Company’s outstanding stock; or (iv) an entity, at least 50% of the total value or voting power of the stock of which is owned by a Person that owns, directly or indirectly, at least 50% of the total value or voting power of the Company’s outstanding stock.

For purposes of subparagraphs (i), (ii) and (iii) above:

“Person” shall have the meaning given in Section 7701(a)(1) of the Code. Person shall include more than one Person acting as a group as defined by the Treasury Regulations issued under Section 409A of the Code.

“Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Securities Exchange Act of 1934, as amended.

The provisions of this Section 3.10 shall be interpreted in accordance with the requirements of the Treasury Regulations under Section 409A of the Code. Notwithstanding anything to the contrary contained herein, a Change in Control for purposes of this Plan shall not include any of the events described herein if the event is in connection with (1) a complete dissolution or liquidation of the Company; (2) a Title 11 bankruptcy proceeding, the appointment of a trustee or receiver or the conversion of a case involving the Company to a case under Chapter 7; or (3) any Distressed Sale of the Company’s Assets or Stock.

3.11     “Claimant” has the meaning set forth in Section 16.

3.12     “Code” means the Internal Revenue Code of 1986, as amended, or any successor statute.

3.13     “Committee” means the Company’s Human Resources Committee.

3.14     “Company” means Texas Capital Bancshares, Inc., a Delaware corporation, or any successor thereto.  If an Affiliate has adopted the Plan, “Company” includes such Affiliate, to the extent the context so requires.

3.15     “Deferral Election” means an election by an Eligible Employee to defer Base Salary and/or Bonus Compensation. A Participant must make a new Deferral Election with respect to each Plan Year during which he or she wants to defer any amount of Base Salary or Bonus Compensation.

3.16     “Determination Date” means the last Valuation Date preceding the payment date.

3.17     “Disabled or Disability” means that a Participant is: (a) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (b) by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company; or (c) determined to be totally disabled by the Social Security Administration.

3.18     “Distressed Sale of the Company’s Assets or Stock” means a sale effected for the purpose of avoiding bankruptcy or receivership, or any sale that is recommended to the Company by the Office of the Comptroller of Currency (or any other similar governmental agency with regulatory or oversight authority over the Company).

3.19     “Discretionary Contribution” means an amount that the Company contributes to the Plan on behalf of a Participant pursuant to Section 6.

3.20     “Discretionary Contribution Account” means a separate account maintained for a Participant to which are credited any Discretionary Contributions made for the Participant and Investment Option earnings allocable thereto, and to which are debited any Investment Option losses, distributions, and any other appropriate charges.  A Participant’s Discretionary Contribution Account may include as many subaccounts as
the Committee determines is appropriate.

3.21     “Distribution Date” means a date specified by a Participant in his or her Election Notice, or specified by the Company in an Award Agreement or in a bonus plan or agreement, for the payment of all or a portion of the Participant's Account.

3.22     “Effective Date” means December 1, 2015.

3.23     “Election Notice” means the notice or notices prescribed from time to
time by the Committee for making Deferral Elections under the Plan. The Election Notice shall include the amount or percentage of Base Salary and/or Bonus Compensation to be deferred (subject to any minimum or maximum amounts established by the Committee from time to time); the Distribution Date(s) for the amounts to be deferred; the form of payment (lump sum or installments) for the amounts to be deferred; and any selected Investment Options. Each Election Notice shall become irrevocable as of the last day of the Election Period.

3.24           “Election Period” means the period established by the Committee for each Plan Year during which Deferral Elections for such Plan Year must be made in accordance with the requirements of Section 409A of the Code, as follows:

(a) General Rule.  Except as provided in (b) and (c) below, the Election Period shall end, and a Deferral Election shall become irrevocable to the extent required by Section 409A of the Code, no later than the last day of the Plan Year immediately preceding the Plan Year in which the deferred Base Salary or Bonus Compensation would otherwise be paid.

(b) Performance-based Compensation.  If any Bonus Compensation constitutes “performance-based compensation” within the meaning of Treas. Reg. Section 1.409A-1(e), then the Election Period for such amount shall end no later than six months before the end of the Plan Year during which the Bonus Compensation is

earned (but in no event later than the date on which the amount of the Bonus
Compensation becomes readily ascertainable).

(c) New Eligible Employees.  The Election Period for a new Eligible Employee shall end no later than thirty (30) days after the Employee first becomes eligible to participate in the Plan; any such election shall apply only with respect to compensation earned after the date of the Deferral Election.

3.25           “Elective Deferrals” means amounts of Base Salary and/or Bonus Compensation that a Participant elects to have credited to his or her Elective Deferral Account instead of being paid to him or her currently.

3.26           “Elective Deferral Account” means a separate account maintained for each Participant to which are credited the Participant’s Elective Deferrals pursuant to Section 5 and Investment Option earnings allocable thereto, and to which are debited any Investment Option losses, distributions, and any other appropriate charges.  A Participant’s Elective Deferral Account may include as many subaccounts as the Committee determines is appropriate.

3.27           “Eligible Employee” means an Employee who is selected by the Committee to participate in the Plan. Participation in the Plan is limited to a select group of the Company's management or other highly compensated employees.

3.28           “Employee” means an employee of the Company.

3.29           “Entry Date” means, with respect to an Eligible Employee, the first day of the pay period commencing on or following the effective date of such Eligible Employee's eligibility to participate in the Plan.

3.30           “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

3.31           “FICA Amount” has the meaning set forth in Section 11.1(c).

3.32           “Good Reason” means, except as may otherwise be provided in the Participant’s Award Agreement, the occurrence of any of the following events: (i) without  his or her express written consent, the assignment of the Participant to a position, duties or responsibilities substantially inferior to  his or her position, duties, or responsibilities with the Company as set forth in his or her employment agreement or offer letter with the Company; (ii) the change of the location where the Participant is based (“Base Location”) at the time the Participant begins participating in this Plan to a location which is more than fifty (50) miles from  his or her Base Location, without the
Participant’s written consent; or (iii) a reduction by the Company in the Participant’s base
salary as then in effect when such Participant begins participating in this Plan, unless such reduction is a proportionate reduction of the compensation of the Participant and all

other senior officers of the Company as a part of a company-wide effort to enhance the financial condition of the Company.  The Participant shall give the Company thirty (30) business days’ notice of an intent to terminate his or her employment for “Good Reason”, and provide the Company with thirty (30) calendar days after receipt of such notice from the Participant to remedy the alleged violation.  In the event the Company does not cure the violation, if the Participant does not terminate his or her employment within sixty (60) days following the last day of the Board’s cure period, the occurrence of the violation
shall not subsequently serve as Good Reason for the Participant to terminate his or her employment.

3.33           “Investment Option” means an investment fund or index, including any interest-bearing account or stock account, selected or created by the Committee and made available to Participants, or required by the Committee, for the deemed investment of the Participants’ Accounts or any portion(s) of the Participants’ Accounts.

3.34           “Participant” means an Eligible Employee who participates in the Plan
by filing an Election Notice in accordance with Section 5.1 and/or having a Discretionary Contribution credited to his or her Account, and any former Eligible Employee who continues to have an amount credited to his or her Account.

3.35           “Payment Event” has the meaning set forth in Section 9.1.

3.36           “Plan” means this Texas Capital Bancshares, Inc. Nonqualified Deferred
Compensation Plan, as amended from time to time.

3.37           “Plan Year” means the twelve consecutive month period that begins on
January 1 and ends on the following December 31.  The Plan’s first plan year shall be
2016.

3.38           “Re-deferral Election” has the meaning set forth in Section 5.4.

3.39           “Separation from Service” has the meaning set forth in Section
409A(a)(2)(A)(i) of the Code and Treas. Reg. Section 1.409A-1(h), including the default presumptions thereunder.

3.40           “State, Local and Foreign Tax Amount” has the meaning set forth in
Section 11.1(f).

3.41           “Unforeseeable Emergency” means a severe financial hardship of the Participant resulting from (a) an illness or accident of the Participant, the Participant's spouse, or the Participant's dependent; (b) a loss of the Participant's property due to casualty; or (c) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, all as determined in the sole discretion of the Committee.

3.42           “Valuation Date” means each business day of the Plan Year.

4.   Eligibility; Participation.

4.1   Requirements for Participation. Before the beginning of each Plan Year, the Committee shall determine the Employees who shall be Eligible Employees for such Plan Year. Any such Eligible Employee may participate in the Plan commencing as of the first day of such Plan Year. Additionally, the Committee may determine during the Plan Year that an Employee who was not designated as an Eligible Employee before the beginning of the Plan Year shall become an Eligible Employee effective as of a specified date
during the current Plan Year, in which case the Election Period rules for new Eligible Employees set forth in the definition of Election Period shall apply.  If an Employee is selected for participation in the Plan for one Plan Year, it does not guarantee participation in the Plan for any future Plan Years.

4.2   Election to Participate; Benefits of Participation. An Eligible Employee becomes a Participant by making a Deferral Election in accordance with Section 5 or having a Discretionary Contribution credited to his or her Account.

4.3   Cessation of Participation. If a Participant ceases to be an Eligible Employee for a Plan Year, then the Participant's Deferral Elections shall no longer be effective and the Participant shall not be eligible to receive any further Discretionary Contributions. However, such Participant's Account shall continue to be credited with any earnings and losses of the Participant’s Investment Options until the applicable Determination Date.

5.   Election Procedures.

5.1   Deferral Election. An Eligible Employee may elect to defer Base Salary and/or Bonus Compensation by completing an Election Notice and filing it with the Committee during the Election Period. The Election Notice must specify:

(a)   The amount or percentage of Base Salary and/or Bonus Compensation to be deferred (subject to any minimum and/or maximum amounts established by the Committee);

(b)   To the extent permitted by the Committee, the Distribution Date(s) for any applicable portion(s) of the Participant's Account attributable to such Deferral Election;

(c)   To the extent permitted by the Committee, the form of payment for any applicable portion(s) of the Participant's Account attributable to such Deferral Election; and

(d)   To the extent permitted by the Committee and not provided for in any separate investment election, the Investment Option in which any applicable portion(s) of

the Participant’s Account attributable to such Deferral Election are to be treated as having
been invested.

5.2   Base Salary Deferrals. A Participant may elect to defer receipt of up to 75% of the Participant's Base Salary for any Plan Year by making a Deferral Election in accordance with this Section 5. Base Salary deferrals shall be credited to a Participant's Elective Deferral Account as of the date the Base Salary would otherwise have been paid. The Committee may change the maximum Deferral Election percentage for Base Salary deferrals from time to time, and may set a minimum Deferral Election percentage.

5.3   Bonus Compensation Deferrals.

(a)   A Participant may elect to defer receipt of up to 75% of the Participant's Bonus Compensation for any Plan Year by making a Deferral Election in accordance with this Section 5. Bonus Compensation deferrals shall be credited to the Participant's Elective Deferral Account as of the date the Bonus Compensation otherwise would have been paid.  The Committee may change the maximum Deferral Election percentage for Bonus Compensation deferrals from time to time, and may set a minimum Deferral Election percentage.

(b)   The Company may, as part of a bonus plan or agreement under which Bonus Compensation may be earned, require that all or a portion of such Bonus Compensation be deferred, in which case the Bonus Compensation, or applicable portion of the Bonus Compensation, shall be credited by the Committee to the Participant’s Elective Deferral Account.

5.4   Re-deferrals; Changing the Form of Payment. The Participant may make an election to re-defer all or a portion of the amounts in his or her Account until a later Distribution Date, or to change the form of payment (a “Re-deferral Election”), provided that the following requirements are met:

(a)   The re-deferral election is made at least twelve (12) months before the original Distribution Date;

(b)   The Distribution Date for the re-deferred amount is at least five years later than the original Distribution Date;

(c)   The re-deferral election will not take effect for at least twelve (12) months after the re-deferral election is made; and

(d)   The re-deferral election otherwise complies with the requirements of
Section 409A of the Code.

For purposes of this Section 5.4, all payments, including any individual installment payments, shall be treated as separate payments under Section 409A of the Code.

6.   Discretionary Contributions. Each Plan Year the Company may, but need not, make a Discretionary Contribution to the Plan on behalf of a Participant in such amount as the Company shall determine in its sole and complete discretion. Any Discretionary Contribution may be credited to the Participant's Discretionary Contribution Account
after the end of the Plan Year for which the Discretionary Contribution is made. The Company is under no obligation to make any Discretionary Contributions for a Plan Year. Discretionary Contributions need not be uniform among Participants.

7.   Accounts and Investment Options.

7.1   Establishment of Accounts. The Committee shall establish and maintain an Account for each Participant. The Committee may establish as many subaccounts on behalf of any Participant as deemed necessary by the Committee.

7.2   Investment Options. The Committee shall select the Investment Options for the deemed investment of Participants’ Accounts. The Committee may change, discontinue, or add Investment Options at any time, in its sole and complete discretion. To the extent permitted by the Committee, a Participant may make changes to his or her investment selections in accordance with procedures established by the Committee.  The Company may require that some or all of the portions of a Participant’s Account be invested in an Investment Option selected by the Committee.

7.3   Adjustments for Deemed Investment Earnings. Each Account shall be adjusted for earnings or losses based on the performance of the Investment Options selected for it, as if the Account were actually invested in such Investment Option(s), even though it will not actually be so invested. Earnings and losses shall be computed on each Valuation Date. The amount paid to a Participant on the payment date shall be determined as of the applicable Determination Date.

7.4   Nature of Accounts. Accounts are not actually invested in the Investment Options and do not correspond to any segregated assets of the Company. A Participant's Account is solely a device for the measurement and determination of the amounts of compensation to be paid to the Participant pursuant to the Plan.

7.5   Statements. Each Participant shall be provided with a statement setting out the amounts credited to his or her Account, which shall be delivered at intervals determined by the Committee.

8.   Vesting.

8.1   Vesting of Base Salary and Bonus Compensation Deferrals. Participants shall be fully vested at all times in their Base Salary and Bonus Compensation deferrals and any earnings thereon.

8.2   Vesting of Discretionary Contributions.

(a)   In the event the Company elects to make a Discretionary Contribution for a Plan Year, the Company shall establish the vesting schedule that shall apply to such Discretionary Contribution, which shall be set forth in the Award Agreement for each Participant who is eligible to receive a Discretionary Contribution for such Plan Year. The vesting schedule for Discretionary Contributions made on behalf of different Participants need not be the same, and the vesting schedule for Discretionary Contributions made with respect to different Plan Years also need not be the same.

(b)   Except to the extent otherwise provided in Section 8.2(c) or (d) below, or in an applicable Award Agreement, the nonvested (i.e., forfeitable) portion of a Participant’s Account shall be forfeited (such that no amount shall ever be due or payable to the Participant with respect to such portion, and no substitute or compensatory payment for the loss of such amount shall ever be due or payable to the Participant) upon the Participant’s voluntary or involuntary Separation from Service for any reason.

(c)   Notwithstanding the provisions of Sections 8.2 (a) and (b) immediately above, except to the extent otherwise provided in an applicable Award Agreement, the portion of a Participant’s Account attributable to Discretionary Contributions shall be
100% vested (i.e., 0% forfeited) upon the Participant’s (a) death or (b) Disability.

(d)   Notwithstanding the provisions of Sections 8.2(a) and (b) above, except to the extent otherwise provided in an applicable Award Agreement, the nonvested (i.e., forfeitable) portion(s) of a Participant’s Account attributable to Discretionary Contributions shall be 100% vested (i.e., 0% forfeited) if on or during the 18-month period immediately following a Change in Control the Participant incurs a Separation from Service (i) due to the Company’s termination of the Participant’s employment without Cause or (ii) due to the Participant’s termination of his or her employment for Good Reason.

9.   Payment of Participant Accounts.

9.1   In General. Payment of the vested portion of a Participant's Account shall be made (or, in the case of installments, begin to be made) on the earliest to occur of the following events (each a “Payment Event”):

(a)   The Distribution Date specified for any portion of the Account; (b)   The Participant's Separation from Service;
(c)   The Participant's death; or

(d)   The Participant's Disability.

9.2   Timing of Payments Other than on Account of Separation from Service. Except as otherwise provided in this Section 9, payments shall be made (or, in the case of installment payments, begin to be made) within 90 days following a Payment Event.

9.3   Timing of Payments on Account of Separation from Service. Payments made on
account of a Participant’s Separation from Service shall be made (or, in the case of annual installment payments, commence to be made) in January of the calendar year following the calendar year in which the Participant Separated from Service, if the Participant’s Separation from Service occurs in January, February, March, April, May, or June, and otherwise in July of the calendar year following the calendar year in which the Participant Separated from Service.

9.4   Mandatory Deferral of Payment During Clawback Period.  To the extent consistent with the requirements of Section 409A of the Code, at the time Bonus Compensation is required to be deferred by the Company or a Discretionary Contribution is contributed by the Company, the Company may in any applicable bonus plan or agreement, or in any Award Agreement, provide that any portion of the Participant’s Account attributable to Bonus Compensation that was required by the Company to be deferred under the Plan, or attributable to Discretionary Contributions, as the case may
be, whether or not vested, shall be distributed only after the lapse of any period during with the Company may have the right, or may be required, to reclaim such amount from the Participant pursuant to a Company clawback policy or any applicable federal or other law.

9.5   Form of Payment. If and to the extent permitted by the Committee, a Participant may specify the form(s) of payment (lump sum or annual installments) for amounts credited to his or her Account; the Committee may also specify the form of payment and prescribe rules for default forms of payment if a Participant fails to timely elect a permissible form of payment.  To the extent the Committee permits or requires annual installment payments, the amount of each payment shall be calculated by dividing the value as of the last Determination Date preceding the date of payment of the portion of the Participant’s Account being distributed by the number of annual installments remaining.

9.6   Medium of Payment. All payments under the Plan shall be made in cash.

10. Payments Due to Unforeseeable Emergency.

10.1 Request for Payment. If a Participant suffers an Unforeseeable Emergency, he or she may submit a written request to the Committee for payment of a portion of the vested portion of his or her Account.

10.2 No Payment If Other Relief Available. The Committee will evaluate the
Participant's request for payment due to an Unforeseeable Emergency, taking into

account the Participant's circumstances and the requirements of Section 409A of the Code. In no event will payments be made pursuant to this Section 10 to the extent that the Participant's hardship can be relieved (a) through reimbursement or compensation by insurance or otherwise or (b) by liquidation of the Participant's assets, to the extent that liquidation of the Participant's assets would not itself cause severe financial hardship.

10.3 Limitation on Payment Amount. The amount of any payment made on account of an Unforeseeable Emergency shall not exceed the amount reasonably necessary to satisfy the Participant's financial need, including amounts necessary to pay any Federal, state, or local income taxes or penalties reasonably anticipated to result from the payment, as determined by the Committee.

10.4 Timing and Form of Payment. Payment on account of an Unforeseeable Emergency shall be made from a Participant's Account in the form of a lump sum as soon as practicable and in any event within 30 days following the Committee's determination that an Unforeseeable Emergency exists.

10.5 Cessation of Deferrals. If during a Plan Year a Participant receives payment on account of an Unforeseeable Emergency, the Participant may make no more Elective Deferrals for the remainder of the Plan Year.

11. Acceleration Events.

11.1 Permissible Acceleration Events. Notwithstanding anything in the Plan otherwise to the contrary, the Committee, in its sole discretion, may accelerate payment of all or a portion of a Participant's vested Account upon the occurrence of any of the events (“Acceleration Events”) set forth in this Section 11. The Committee's
determination of whether payment may be accelerated in accordance with this Section 11
shall be made in accordance with Treas. Reg. Section 1.409A-3(j)(4).

(a)   Domestic Relations Orders. The Committee may accelerate payment of a Participant's vested Account to the extent necessary to comply with a domestic relations order (as defined in Section 414(p)(1)(B) of the Code).

(b)   Limited Cashouts. The Committee may accelerate payment of a
Participant's vested Account to the extent that (i) the aggregate amount in the Participant's Account does not exceed the applicable dollar amount under Section 402(g)(1)(B) of the Code, (ii) the payment results in the termination of the Participant's entire interest in the Plan and any plans that are aggregated with the Plan pursuant to Treas. Reg. Section
1.409A-1(c)(2), and (iii) the Committee's decision to cash out the Participant's Account is evidenced in writing no later than the date of payment.

(c)   Payment of Employment Taxes. The Committee may accelerate payment of all or a portion of a Participant's vested Account (i) to pay the Federal Insurance

Contributions Act (FICA) tax imposed under Sections 3010, 3121(a) and 3121(v)(2) of the Code (the “FICA Amount”), or (ii) to pay the income tax at source on wages imposed under Section 3401 of the Code or the corresponding withholding provisions of applicable state, local, or foreign tax laws as a result of the payment of the FICA Amount and the additional income tax at source on wages attributable to the pyramiding
Section 3401 wages and taxes; provided, however, that the total payment under this Section 11.1(c) shall not exceed the FICA Amount and the income tax withholding related to the FICA Amount.

(d)   Payment Upon Income Inclusion. The Committee may accelerate payment
of all or a portion of a Participant's vested Account to the extent that the Plan fails to meet the requirements of Section 409A of the Code with respect to the Participant; provided, however, that the amount accelerated shall not exceed the amount required to be included in income as a result of the failure to comply with Section 409A of the Code.

(e)   Termination of the Plan. The Committee may accelerate payment of all or a portion of a Participant's vested Account upon termination of the Plan in accordance with Treas. Reg. Section 1.409A-3(j)(4)(ix).

(f)   Payment of State, Local or Foreign Taxes. The Committee may accelerate payment of all or a portion of the vested portion of a Participant's Account for:

		
	(i)
	the payment of state, local, or foreign tax obligations arising from participation in the Plan, to the extent that such tax obligations relate to an amount deferred under the Plan before the amount is paid or made available to the Participant (the “State, Local and Foreign Tax Amount”); provided, however, that the accelerated payment amount shall not exceed the taxes due as a result of participation in the Plan; and/or

(ii)  the payment of income tax at source on wages imposed under Section
3401 of the Code as a result of such payment and the payment of the additional income tax at source on wages imposed under Section 3401 of the Code attributable to the additional Section 3401 wages and taxes; provided however, that the accelerated payment amount shall not exceed the aggregate of the State, Local, and Foreign Tax Amount and the income tax withholding related to such amount.

(g)   Certain Small Offsets. The Committee may accelerate payment of all or a portion of the Participant's vested Account to satisfy a debt of the Participant to the Company incurred in the ordinary course of the service relationship between the Company and the Participant; provided, however, the amount accelerated shall not
exceed $5,000 in any taxable year of the Participant and the payment shall be made at the

same time and in the same amount as the debt otherwise would have been due and collected from the Participant.

(h)   Bona Fide Disputes as to Right to Payment. The Committee may accelerate payment of all or a portion of a Participant's vested Account where the payment is part of a settlement between the Company or an Affiliate and the Participant of an arm's length, bona fide dispute as to the Participant's right to the deferred amount.

12. Section 162(m) of the Code. If the Committee reasonably anticipates that if a payment were made as scheduled under the Plan it would result in a loss of the Company's tax deduction due to the application of Section 162(m) of the Code, such payment can be delayed and paid (a) during the Participant's first taxable year in which the Committee reasonably anticipates that the Company's tax deduction will not be limited or eliminated by the application of Section 162(m) of the Code or (b) subject to Section 9.3, during the period beginning with the Participant's Separation from Service and ending on the later of the last day of the Company's taxable year in which the Participant separates from service or the 15th day of the third month following the Participant's Separation from Service. Notwithstanding the foregoing, no payment under the Plan may be deferred in accordance with this Section 12 unless all scheduled payments to the Participant that could be delayed in accordance with Treas. Reg. Section
1.409A-2(b)(7)(i) are so delayed.

13. Plan Administration.

13.1 Administration By Committee. The Plan shall be administered by the
Committee, which shall have the authority to:

(a)   construe and interpret the Plan and apply its provisions;

(b)   promulgate, amend and rescind rules and regulations relating to the administration of the Plan;

(c)   authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan;

(d)   determine minimum or maximum amounts that Participants may elect to defer under the Plan;

(e)   select the Investment Options that will be available for the deemed investment of Accounts under the Plan and establish procedures for permitting Participants to change their Investment Options;

(f)   select, subject to the limitations set forth in the Plan, those Employees who shall be Eligible Employees;

(g)   evaluate whether a Participant who has requested payment from his or her Account on account of an Unforeseeable Emergency has experienced an Unforeseeable Emergency and the amount of any payment necessary to satisfy the Participant's need with respect to such Unforeseeable Emergency;

(h)   calculate deemed investment earnings and losses;

(i)   interpret, administer, reconcile any inconsistency in, correct any defect in, and/or supply any omission in the Plan and any instrument, Election Notice, or agreement relating to the Plan; and

(j)   exercise discretion to make any and all other determinations that it determines to be necessary or advisable for the administration of the Plan.

13.2 Non-Uniform Treatment. The Committee's determinations under the Plan need not be uniform and any such determinations may be made selectively among Participants. Without limiting the generality of the foregoing, the Committee shall be entitled, among other things, to make nonuniform and selective determinations with regard to: (a) the terms or conditions of any Elective Deferral; (b) the availability of Investment Options; (c) vesting provisions for Discretionary Contributions.

13.3 Committee Decisions Final. Subject to Section 16, all decisions made by the Committee pursuant to the provisions of the Plan shall be final and binding on the Company and the Participants, unless such decisions are determined by a court having jurisdiction to be arbitrary and capricious.

13.4 Indemnification. No member of the Committee or any designee shall be liable for any action, failure to act, determination, or interpretation made in good faith with respect to the Plan, except for any liability arising from his or her own willful malfeasance, gross negligence, or reckless disregard of his or her duties.  Without limiting the generality of the foregoing sentence, any decision or action taken by the Committee in reasonable reliance upon information supplied to it by the Board, the Company, legal counsel, or the Company’s independent accountants shall be deemed to have been taken in good faith.  The Committee or any such employee, officer or director of the Company may from time to time consult with counsel who may be counsel to the Company or other counsel, with respect to its obligations or duties hereunder, or with respect to any action, proceeding or question of law, and shall not be held liable with respect to any action taken or omitted, in good faith, pursuant to the advice of such counsel.  To the fullest extent permitted by applicable law, the Company shall indemnify and save harmless the Board and each member of the Committee against any and all expenses, liabilities and claims (including legal fees incurred to investigate or defend against such liabilities and claims) arising out of their discharge in good faith of responsibilities under or incident to the Plan.  Expenses and liabilities arising out of willful misconduct shall not be covered under this indemnity.  This indemnity shall not

preclude such further indemnities as may be available under insurance purchased by the Company or provided by the Company under any bylaw, agreement, vote of stockholders or disinterested directors or otherwise, as such indemnities are permitted under applicable law.  Notwithstanding any other provision of this Agreement, to the extent that any payment made pursuant to this Section 13.4 is not exempt from Section 409A pursuant to the application of Department of Treasury Regulation Section 1.409A-1(b)(10) or other applicable exemption (a “409A Payment”), the following provisions of this Section 13.4 shall apply with respect to such 409A Payment:  The Company shall make a 409A Payment due under this Section 13.4 by the last day of the taxable year of the indemnitee following the taxable year in which the applicable legal fees and expenses were incurred; the legal fees or expenses that are subject to reimbursement pursuant to this Section 13.4 shall not be limited as a result of when the fees or expenses are incurred; the amounts of legal fees or expenses that are eligible for reimbursement pursuant to this Section 13.4 during a given taxable year of the indemnitee shall not affect the amount of expenses eligible for reimbursement in any other taxable year; and the right to reimbursement pursuant to this Section 13.4 is not subject to liquidation or exchange for another benefit.

13.5 Delegation of Authority.  The Committee may delegate some or all of its powers with respect to the administration of the Plan to one or more employees of the Company. Any actions taken by any employees pursuant to such delegation of authority shall be deemed to have been taken by the Committee.  Although an employee of the Company to whom the Committee delegates the authority to perform specified functions under the Plan may be eligible to participate in the Plan, all decisions with respect any such employee’s participation in the Plan shall be made solely and exclusively by the Committee.

14. Amendment and Termination.

The Board may, at any time, and in its discretion, alter, amend, modify, suspend, or terminate the Plan or any portion thereof; provided, however, that no such amendment, modification, suspension or termination shall, without the consent of a Participant, adversely affect such Participant's rights with respect to amounts credited to or accrued in his or her Account, whether or not vested, and provided, further, that, no payment of benefits shall occur upon termination of the Plan unless the requirements of Section 409A of the Code have been met.

15. Miscellaneous.

15.1 No Employment or Other Service Rights. Nothing in the Plan or any instrument executed pursuant to the Plan shall confer upon any Participant any right to continue to serve the Company or interfere in any way with the right of the Company to terminate the Participant's employment or service at any time, with or without notice, and with or without Cause.

15.2 Limitation of Rights.  Nothing in this Plan shall be construed to: (i) give any individual who is employed by the Company or any entity under common ownership or control with the Company any right to be a Participant;  (ii) give a Participant any rights, other than as an unsecured general creditor the Company with respect to any amount credited to his or her Account, until such amount is actually distributed to him or her; (iii) give a Participant or any other person any interest in any fund, reserve or any specific asset of the Company or any entity under common ownership or control with the Company; or (iv) create a fiduciary relationship between the Participant and the
Company.

15.3 Tax Withholding. The Company shall have the right to deduct from any amounts otherwise payable under the Plan any Federal, state, local, or other applicable taxes required to be withheld.

15.4 Governing Law. Except to the extent that Federal law may require otherwise, the Plan shall be administered, construed, and governed in all respects under and by the laws of Texas, without reference to the principles of conflicts of law.

15.5 Section 409A of the Code.

(a)   The Company intends that the Plan comply with the requirements of Section 409A of the Code, and the Plan shall be operated and interpreted consistent with that intent. Notwithstanding the foregoing, the Company makes no representation that the Plan will comply with Section 409A of the Code in form or operation, and the Company shall have no liability to any Participant for any failure to comply with Section 409A of the Code.

(b)   This Plan shall constitute an “account balance plan” as defined in Treas. Reg. Section 31.3121(v)(2)-1(c)(1)(ii)(A). For purposes of Section 409A of the Code, all amounts deferred under this Plan shall be aggregated with amounts deferred under other account balance plans of the Company.

15.6 General Assets; Rabbi Trust. All amounts provided under the Plan shall be paid from the general assets of the Company, and no separate fund shall be established to secure payment. Notwithstanding the foregoing, the Company may, but need not, establish a “rabbi trust” to assist it in funding any Plan obligations.  The assets of any “rabbi trust” established under the Plan shall at all times be subject to the claims of the Company's general creditors. Whether or not a rabbi trust is established by the Company to assist it in funding Plan obligations, the Plan is intended to be “unfunded” for purposes of ERISA and the Code.  The Company’s obligations to Participants under the Plan,
including as recorded in Participants’ Accounts, are merely unfunded unsecured promises by the Company to pay money to the Participants in the future.  No Participant has by virtue of his or her Account any right to, or prior claim on, any assets of the Company, regardless of the extent to which such assets may be associated practically with the

operations of the Plan.  The Plan does not comprise or include a trust of which the Participants or their Beneficiaries are beneficiaries.  The rights of Participants and Beneficiaries to payment from the Company with respect to amounts credited to their Accounts are merely the rights of unsecured general creditors of the Company for compensation for services performed.

15.7 No Warranties. Neither the Company nor the Committee warrants or represents that the value of any Participant's Account will increase. Each Participant assumes the risk in connection with the deemed investment of his or her Account.

15.8 Beneficiary Designation.

(a)   Each Participant under the Plan may from time to time name any Beneficiary or Beneficiaries to receive the Participant's interest in the Plan in the event of the Participant's death. Each such designation will revoke all prior designations by the same Participant, shall be in a form reasonably prescribed by the Committee, and shall be effective only when filed by the Participant in writing with the Company during the Participant's lifetime. If a Participant fails to designate a Beneficiary, then the
Participant's estate shall be his or her Beneficiary.

(b)   Notwithstanding any provision of Section 15.8(a) that might otherwise be to the contrary, any portion of a deceased Participant’s Account that constitutes a surviving spouse’s community or other marital property shall be paid only to such surviving spouse, unless the surviving spouse has consented in writing to the Participant’s designation of a person other than the surviving spouse to receive such portion or makes a disclaimer of such portion that meets the requirements of the Code.  Additionally, if a Participant designates as his or her beneficiary a person who, after the Participant’s death, is convicted of, or pleads guilty or nolo contendere to, the Participant’s homicide, and
such person’s conviction or plea is not overturned on appeal or withdrawn, then the Participant’s designation of such person as his or her Beneficiary shall be deemed to have been revoked by the Participant before he or she died.

15.9 No Assignment. Neither a Participant nor any other person shall have any right to sell, assign, transfer, pledge, anticipate, or otherwise encumber, transfer, hypothecate or convey any amounts payable hereunder prior to the date that such amounts are paid (except for the designation of beneficiaries pursuant to Section 15.8 or a domestic relations order under Section 11.1(a)).

15.10         Expenses. The costs of administering the Plan shall be paid and borne by the Company.

15.11 Severability. If any provision of the Plan is held to be invalid, illegal, or unenforceable, whether in whole or in part, such provision shall be deemed modified to

the extent of such invalidity, illegality, or unenforceability, and the remaining provisions shall not be affected.

15.12 Headings and Subheadings. Headings and subheadings in the Plan are for convenience only and are not to be considered in the construction of the provisions hereof.

15.13 Electronic Documents and Delivery.  Any reference in this Plan to any document to be provided to or by, or to any communication to or by, a Participant, including any reference to any notice, notification, election, election form, or statement, includes such documents and communications in electronic form, delivered electronically, to the extent that the Committee chooses to use and/or accept electronic documents and communications.  Electronic signatures shall have under the Plan the fullest force and effect permitted by applicable law.

15.14 Set-Offs and Recoupments.  If as of the date that payment would otherwise be made under Section 9 in connection with any Payment Event a Participant or Beneficiary owes an outstanding monetary obligation to the Company, including any loan, judgment, claim for damages, or clawback of any kind and under any legal or equitable principle or policy, including any statute or regulation, the Company may satisfy all or part of such outstanding monetary obligation by taking all or part of the amount that would otherwise be distributed to the Participant or Beneficiary in connection with such Payment Event. To the extent required by applicable law, the Company shall treat any such taken amount as compensation income of the Participant or Beneficiary, subject to tax reporting and withholding.

16. Claims Procedures.

16.1 Filing a Claim. Any Participant or other person claiming an interest in the Plan (the “Claimant”) may file a claim in writing with the Committee. The Committee shall review the claim itself or appoint an individual or entity to review the claim.

16.2 Claim Decision. The Claimant shall be notified within ninety (90) days after the claim is filed whether the claim is approved or denied, unless the Committee determines that special circumstances beyond the control of the Plan require an extension of time, in which case the Committee may have up to an additional ninety (90) days to process the claim. If the Committee determines that an extension of time for processing is required, the Committee shall furnish written or electronic notice of the extension to the Claimant before the end of the initial ninety (90) day period. Any notice of extension shall describe the special circumstances necessitating the additional time and the date by which the Committee expects to render its decision.

16.3 Notice of Denial. If the Committee denies the claim, it must provide to the
Claimant, in writing or by electronic communication, a notice which includes:

(a)   The specific reason(s) for the denial;

based;
 
(b)   Specific reference to the pertinent Plan provisions on which such denial is

(c)   A description of any additional material or information necessary for the Claimant to perfect his or her claim and an explanation of why such material or information is necessary;

(d)   A description of the Plan's appeal procedures and the time limits applicable to such procedures, including a statement of the Claimant's right to bring a civil action under Section 502(a) of ERISA following a denial of the claim on appeal; and

(e)   If an internal rule was relied on to make the decision, either a copy of the internal rule or a statement that this information is available at no charge upon request.

16.4 Appeal Procedures. A request for appeal of a denied claim must be made in writing to the Committee within sixty (60) days after receiving notice of denial. The decision on appeal will be made within sixty (60) days after the Committee's receipt of a request for appeal, unless special circumstances require an extension of time for processing, in which case a decision will be rendered not later than one hundred twenty (120) days after receipt of a request for appeal. A notice of such an extension must be provided to the Claimant within the initial sixty (60) day period and must explain the special circumstances and provide an expected date of decision. The reviewer shall afford the Claimant an opportunity to review and receive, without charge, all relevant documents, information, and records and to submit issues and comments in writing to the Committee. The reviewer shall take into account all comments, documents, records and other information submitted by the Claimant relating to the claim regardless of whether the information was submitted or considered in the initial benefit determination.

16.5 Notice of Decision on Appeal. If the Committee denies the appeal, it must provide to the Claimant, in writing or by electronic communication, a notice which includes:

(a)   The specific reason(s) for the denial;

based;
 
(b)   Specific references to the pertinent Plan provisions on which such denial is

(c)   A statement that the Claimant may receive on request all relevant records at no charge;

(d)   A description of the Plan's voluntary procedures and deadlines, if any;

and
 
(e)   A statement of the Claimant's right to sue under Section 502(a) of ERISA;

(f)   If an internal rule was relied on to make the decision, either a copy of the internal rule or a statement that this information is available at no charge upon request.

16.6 Claims Procedures Mandatory. The internal claims procedures set forth in this Section 16 are mandatory. If a Claimant fails to follow these claims procedures, or to timely file a request for appeal in accordance with this Section 16, the denial of the Claim shall become final and binding on all persons for all purposes.

IN WITNESS WHEREOF, Texas Capital Bancshares, Inc. has adopted this Plan as of the Effective Date written above.
TEXAS CAPITAL BANCSHARES, INC.

By:_

Name:

Title:trip-ex1024_652.htm

 

Exhibit 10.24

 

February 15, 2016                     

 

 

 

Mr. Dermot Halpin

 

 

Dear Dermot:

 

We are pleased to extend you this offer of continued employment as President, Vacation Rentals of TripAdvisor, LLC (the “Company”).  This offer may be accepted by countersigning where indicated at the end of this letter.  

Duties and Extent of Service

As President, Vacation Rentals you will have responsibility for performing those duties as are customary for, and are consistent with, such position, as well as those duties as the Company may from time to time designate (consistent with your role). You shall report directly to the Company’s Chief Executive Officer.  You agree to abide by the rules, regulations, instructions, personnel practices and policies of the Company and any changes therein which may be adopted from time to time by the Company.  Except for vacations and absences due to temporary illness, you will be expected to devote your full business time and effort to the business and affairs of the Company.  Notwithstanding the foregoing, you may serve as a board member or consultant to one other entity with the prior written consent of the Company.  

Compensation

In consideration of your continued employment with the Company, effective as of October 1, 2015, the Company will pay you a base salary of $390,000, payable in accordance with the Company’s standard payroll practices, as applicable.  You will, for each calendar year, also be eligible to receive an annual discretionary bonus targeted at 50% of your base salary for the applicable year, subject to meeting individual and Company objectives, as determined by the Board of Directors of TripAdvisor, Inc., a Delaware corporation (“TripAdvisor”).  Such annual bonuses will be paid to you at the same time that bonuses are paid to other Company executives and you shall be eligible for a full annual bonus if you are employed as of the last day of the applicable calendar year.

 

Additional Benefits

You will be entitled to participate in such employee benefit plans and fringe benefits as may be offered or made available by the Company from time to time to its employees and to persons who are at the VP1 level or below.  You will also be entitled to paid vacation 

 

annually, based on your seniority (including prior service) in accordance with the Company’s standard policies, provided, however, that you shall accrue at least 28 days of paid vacation each calendar year.  In addition, you will be entitled to a personal travel allowance of $20,000 per year, grossed up for taxes, and the Company agrees to reimburse you for expenses associated with the preparation and filing of tax returns for years 2015 and 2016.  

Your participation in such employee benefit plans and fringe benefits, and the amount and nature of the benefits to which you shall be entitled thereunder or in connection therewith, shall be subject to the terms and conditions of such employee benefit plans and fringe benefits.

Confidentiality, Non-Competition, Non-Solicitation and Assignment    

 

(a)You acknowledge that while employed by the Company you will occupy a position of trust and confidence. The Company has provided and shall continue to provide you with Confidential Information (as defined below).  You shall hold in a fiduciary capacity for benefit of the Company and its subsidiaries and affiliates, and shall not, except as may be required to perform your duties hereunder or as required by applicable law, without limitation in time, communicate, divulge, disseminate, disclose to others or otherwise use, whether directly or indirectly, any Confidential Information. “Confidential Information” shall mean information about the Company or any of its subsidiaries or affiliates, and their respective businesses, employees, consultants, contractors, suppliers, clients and customers that is not disclosed by the Company or any of its subsidiaries or affiliates for financial reporting purposes and that was learned by you in the course of employment by the Company or any of its subsidiaries or affiliates, including (without limitation) any proprietary knowledge, trade secrets, data, formulae, processes, methods, research, secret data, costs, names of users or purchasers of their respective products or services, business methods, operating procedures or programs or methods of promotion and sale, information relating to accounting or tax strategies and data, information and client and customer lists and all papers, resumes, and records (including computer records) of the documents containing such Confidential Information. For purposes of this agreement, information shall not cease to be Confidential Information merely because it is embraced by general disclosures for financial reporting purposes or because individual features or combinations thereof are publicly available. Notwithstanding the foregoing provisions, if you are required to disclose any such confidential or proprietary information pursuant to applicable law or a subpoena or court order, you shall promptly notify the Company in writing of any such requirement so that the Company may seek an appropriate protective order or other appropriate remedy or waive compliance with the provisions hereof.  You shall reasonably cooperate with the Company to obtain such a protective order or other remedy. If such order or other remedy is not obtained prior to the time you are required to make the disclosure, or the Company waives compliance with the provisions hereof, you shall disclose only that portion of the confidential or proprietary information which he is advised by counsel that he is legally required to so disclose.  You acknowledge that such Confidential Information is specialized, unique in nature and of great value to the Company and its subsidiaries or affiliates, and that such information gives the Company and its subsidiaries or affiliates a competitive advantage. You agree to deliver or return to the Company, at the Company’s request at any time or upon termination or expiration of your employment, all documents, computer tapes and disks, plans, initiatives, strategies, records, lists, 

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data, drawings, prints, notes and written information (and all copies thereof) created by or on behalf of the Company or its subsidiaries or affiliates or prepared by you in the course of your employment by the Company and its subsidiaries or affiliates. As used in this Agreement, “subsidiaries” and “affiliates” shall mean any company that directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the Company.  The term control (including the terms controlling, controlled by and under common control with) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract, or otherwise.

 

(b)In consideration of the Company’s promise to disclose, and disclosure of, its Confidential Information and other good and valuable consideration provided hereunder, the receipt and sufficiency of which you hereby acknowledge, you agree and covenant that from the date hereof and until nine months beyond your date of Termination of Employment from the Company or any of its subsidiaries or affiliates for any reason (the “Restricted Period”), you shall not, directly or indirectly, engage in, assist or become associated with a Competitive Activity.  For purposes of this agreement, (i) a “Competitive Activity” means, at the time of your termination, any business or other endeavor in any jurisdiction of a kind being conducted by the Company or any of its subsidiaries or affiliates (or demonstrably anticipated by the Company or its subsidiaries or affiliates and, for avoidance of doubt, such affiliates to exclude Liberty Media Corporation, Liberty Interactive Corporation, Liberty TripAdvisor Holdings, Inc. or any of their respective subsidiaries), in any jurisdiction as of the date hereof or at any time thereafter; and (ii) you shall be considered to have become “associated with a Competitive Activity” if you becomes directly or indirectly involved as an owner, principal, employee, officer, director, independent contractor, representative, stockholder, financial backer, agent, partner, advisor, lender, or in any other individual or representative capacity with any individual, partnership, corporation or other organization that is engaged in a Competitive Activity. Notwithstanding the foregoing, (i) you may make and retain investments during the Restricted Period, for investment purposes only, in less than 5% of the outstanding capital stock of any publicly-traded corporation engaged in a Competitive Activity if stock of such corporation is either listed on a national stock exchange or on the NASDAQ National Market System if you are not otherwise affiliated with such corporation; (ii) you may serve as an employee or partner (or otherwise invest or hold an ownership interest) in an investment firm that has an ownership interest in a partnership, corporation or other organization that is engaged in a Competitive Activity, provided that such ownership interest does not constitute greater than 20% of such investment firm’s total assets under management and you are not directly involved with the provision of direction or management of such entity engaged in the Competitive Activity, including the investment decisions thereof; and (iii) you may serve as an employee of or partner (or otherwise hold an ownership interest) in a consultancy or investment bank engaged in providing advisory services to entities engaged in Competitive Activities, provided that you are not directly involved in the provision of the advisory services to such entities engaged in the Competitive Activity.  Notwithstanding the foregoing, to the extent that, solely due to a change in scope of the business of the Company or any of its subsidiaries or affiliates (e.g., by virtue of an acquisition or strategic change), you have become “associated with a Competitive Activity” (i.e., for purposes of clarity, your activity prior to such change in scope was permissible under this section), then you shall have a reasonable period of time, not to exceed 12 months, to cure such association with a Competitive Activity, including by resignation (if personal services), liquidation or 

- 3 -

 

unwinding (if investment-related) or eliminating any activity or involvement with such entity engaged in the Competitive Activity, in all cases on such terms as are reasonably acceptable to the Company.  

 

(c)You recognize that you will possess Confidential Information about other employees, officers, directors, agents, consultants and independent contractors of the Company and its subsidiaries or affiliates relating to their education, experience, skills, abilities, compensation and benefits, and inter-personal relationships with suppliers to and customers of the Company and its subsidiaries or affiliates. You recognize that the information you will possess about these employees, officers, directors, agents, consultants and independent contractors is not generally known, is of substantial value to the Company and its subsidiaries or affiliates in developing their respective businesses and in securing and retaining customers, and will be acquired by you because of your business position with the Company. You agree (i) that, during the Restricted Period, you will not, directly or indirectly, hire or solicit or recruit the employment or services of (i.e., whether as an employee, officer, director, agent, consultant or independent contractor), or encourage to change such person’s relationship with the Company or any of its subsidiaries or affiliates, any employee, officer, director, agent, consultant or independent contractor of the Company or any of its subsidiaries or affiliates, provided, however, that a general solicitation of the public for employment (and any hiring pursuant thereto) shall not constitute a solicitation hereunder so long as such general solicitation is not designed to target, or does not have the effect of targeting, any employee, officer, director, agent, consultant or independent contractor of the Company or any of its subsidiaries or affiliates, provided, further, that the hiring, solicitation or engagement (i.e., on a non-exclusive basis) of third-party professional advisors (e.g., law firms, accountancies) shall not constitute recruitment hereunder and (ii) that you will not convey any Confidential Information or trade secrets about any employees, officers, directors, agents, consultants and independent contractors of the Company or any of its subsidiaries or affiliates to any other person except within the scope of your duties ereunder.

 

(d)During the Restricted Period, you shall not, without the prior written consent of the Company, directly or indirectly, solicit, attempt to do business with, or do business with any customers of, suppliers (including providers of travel inventory) to, business partners of or business affiliates of the Company or any of its subsidiaries or affiliates (collectively, “Trade Relationships”) on behalf of any entity engaged in a Competitive Activity, or encourage (regardless of who initiates the contact) any Trade Relationship to use the services of any competitor of the Company or its subsidiaries or affiliates, or encourage any Trade Relationship to change its relationship with the Company or its subsidiaries or affiliates.

 

(e)All Executive Developments (as defined below) shall be made for hire by you for the Company or any of its subsidiaries or affiliates. “Executive Developments” means any idea, discovery, invention, design, method, technique, improvement, enhancement, development, computer program, machine, algorithm or other work or authorship, in each case, (i) that (A) relates to the business or operations of the Company or any of its subsidiaries or affiliates, or (B) results from or is suggested by any undertaking assigned to you or work performed by you for or on behalf of the Company or any of its subsidiaries or affiliates, whether created alone or with others, during or after working hours and (ii) that is conceived or developed during the Term. All Confidential Information and all Executive Developments shall remain the sole 

- 4 -

 

property of the Company or any of its subsidiaries or affiliates. You shall acquire no proprietary interest in any Confidential Information or Executive Developments developed or acquired during the Term. To the extent you may, by operation of law or otherwise, acquire any right, title or interest in or to any Confidential Information or Executive Development, you hereby assign to the Company all such proprietary rights. You shall, both during and after the Term, upon the Company’s request, promptly execute and deliver to the Company all such assignments, certificates and instruments, and shall promptly perform such other acts, as the Company may from time to time in its reasonable discretion deem necessary or desirable to evidence, establish, maintain, perfect, enforce or defend the Company’s rights in Confidential Information and Executive Developments.

 

At-Will Employment; Termination Without Cause; Resignation With Good Reason

Please note that this offer letter is not a contract of employment for any specific or minimum term and that the employment offered hereby is terminable at will.  This means that our employment relationship is voluntary and based on mutual consent.  You may resign your employment with or without Good Reason (as defined below), and the Company likewise may terminate your employment, at any time, with or without Cause (as defined in Section 1(h)(ii) of TripAdvisor’s 2011 Stock and Annual Incentive Plan, as amended (the “2011 Plan”)) and with written notice.  Any prior oral or written representations to the contrary are void, and any future representations to the contrary are also void and should not be relied upon unless they are contained in a formal written employment contract signed by an officer of the Company and expressly stating the Company’s intent to modify the at-will nature of your employment.  

“Good Reason” shall mean the occurrence of any of the following without your prior written consent: (A) the Company’s material breach of any material provision of this offer letter, (B) the material reduction in your title, duties, reporting responsibilities (provided that a change in reporting structure shall not be considered Good Reason so long as the individual you are directly reporting to has a title and job level that is higher than yours) or level of responsibilities as President, Vacation Rentals and VP1 of the Company, (C) the material reduction in your annual base salary or your total annual compensation opportunity, or (D) the relocation of your principal place of employment more than 20 miles outside the Needham, Massachusettes area, provided that in no event shall your resignation be for “Good Reason” unless (x) an event or circumstance set forth in clauses (A) through (D) shall have occurred and you provide the Company with written notice thereof within 30 days after you have knowledge of the occurrence or existence of such event or circumstance, which notice specifically identifies the event or circumstance that you believe constitutes Good Reason, (y) the Company fails to correct the circumstance or event so identified within 30 days after receipt of such notice, and (z) you resign within 90 days after the date of delivery of the notice referred to in clause (x) above.

Upon a Termination of Employment (as defined in the 2011 Plan) by the Company for other than Cause, death or Disability (as defined in the 2011 Plan), or by you for Good Reason (as defined above), then: 

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i.the Company shall continue to pay you your base salary then in effect in accordance with normal payroll practices (but disregarding any reduction in base salary that constituted Good Reason) for six months following the date of termination; 

ii.the Company shall pay for your (and your dependents) continued participation in all Company group health, medical, dental and vision plans that you were covered by as of immediately before your Termination of Employment with such coverage extending for six months commencing on the first day of the calendar month following the month of the Terminaton of Employment;

iii.(1) if at such time Stephen Kaufer is the Chief Executive Officer (or similarly situated position) of the Company, the Company will consider in good faith the acceleration of any of your compensation awards based on, or in the form of, TripAdvisor equity (e.g. restricted stock, restricted stock units, stock options or similar instruments) (“Equity Awards”) that are outstanding and unvested at the time of such termination but which would, but for a Termination of Employment, have vested during the six months following such termination (such period, the “Equity Acceleration Period”) or (2) if at such time Stephen Kaufer is not the Chief Executive Officer (or similarly situated position) of the Company, the Company will, subject to the approval of the Compensation Committee, procure an acceleration of any of your Equity Awards that are outstanding and unvested at the time of such termination but which would, but for a Termination of Employment, have vested during the Equity Acceleration Period; provided, in either case, nothing herein shall be a contractual entitlement to any acceleration of equity nor is the acceleration guaranteed; provided, further, that any amount that would vest under this provision but for the fact that outstanding performance conditions have not been satisfied shall vest (and, with respect to awards other than stock options and stock appreciation rights, settle) only if, and at such point as, such performance conditions are satisfied; and provided, further, that if any Equity Awards made subsequent to the Effective Date of this Agreement specifies a more favorable post-termination vesting schedule for such equity, the terms of the award agreement for such Equity Award shall govern.  

iv.The payment to you of the severance pay or benefits described in this section is contingent upon you signing and not revoking a separation and release of the Company and its affiliates in a form substantially similar to that used for senior executives of the Company (the “Release”), and your compliance with the restrictive covenants set forth in this section (other than any non-compliance that is immaterial, does not result in harm to the Company or its affiliates, and, if curable, is cured by you promptly after receipt of notice thereof given by the Company). The Release shall be delivered by the Company to you within ten (10) days following your employment termination date and must become effective no later than sixty (60) days following your Termination of Employment or such earlier date required by the Release (such deadline, the “Release Deadline”). If the Release does not become effective by the Release Deadline, you will forfeit any rights to severance. In no event will severance payments or benefits (other than any Accrued Obligations) be 

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paid or provided until the Release becomes effective and irrevocable but in no event shall you forfeit Equity Awards that had vested through the date of Termination of Employment other than the Equity Awards for which the vesting was accelerated pursuant to this offer letter.  Upon the Release becoming effective and irrevocable, any payments delayed from the date of Termination of Employment through the effective date of the Release will be payable in a lump sum without interest as soon as administratively practicable after the Release Deadline and all other amounts will be payable in accordance with the payment schedule applicable to each payment or benefit. In the event the termination occurs at a time during the calendar year where the Release could become effective in the calendar year following the calendar year in which termination occurs, then any severance payments or benefits that would be considered Deferred Payments (as defined below) will commence to be paid on the first payroll date to occur during the calendar year following the calendar year in which such termination occurs, or, if later, the Release Deadline.  You acknowledge and agree that the Company’s payment of severance pay and benefits (except Accrued Obligations) constitutes good and valuable consideration for such Release.

Governing Law; Waiver of Jury Trial and Punitive Damages

This offer letter and all matters or issues related hereto shall be governed by and construed under the laws of the Commonwealth of Massachusetts, without reference to principles of conflicts of laws.  Any and all disputes between the parties which may arise pursuant to this letter will be heard and determined before an appropriate federal court in Massachusetts, or, if not maintainable therein, then in an appropriate Massachusetts state court.  The parties acknowledge that such courts have jurisdiction to interpret and enforce the provisions of this letter, and the parties consent to, and waive any and all objections that they may have as to, personal jurisdiction and/or venue in such courts.  EACH PARTY HEREBY WAIVES ANY RIGHT TO A JURY TRIAL AND TO CLAIM OR RECOVER PUNITIVE DAMAGES.

Entire Agreement; Amendment

This offer letter sets  forth the sole and entire agreement and understanding between the Company and you with respect to the specific matters contemplated and addressed herein.  No prior agreement, whether written or oral (including, without limitation, that letter, effective November 29, 2011, between you and TripAdvisor Ltd.), shall be construed to change or affect the operation of this offer letter in accordance with its terms, and any provision of any such prior agreement which conflicts with or contradicts any provision of this offer letter is hereby revoked and superseded.  In the event of any conflict in terms between this offer letter and any other agreement between you and the Company or any Company plan or policy, the terms of this offer letter shall prevail and govern.  This offer letter and any payments or benefits provided to you shall be interpreted, construed, and administered to comply with Internal Revenue Code Section 409A (“409A”) and to avoid the imposition of any 409A taxes upon you.

This offer letter may be amended or terminated only by a written instrument executed both by you and the Company.

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Please acknowledge your acceptance of this offer and the terms of this offer letter by signing below and returning a copy to me.

 

	
 
	
 
	
Sincerely,

	
 
	
 
	
 

	
 
	
 
	
TRIPADVISOR LLC

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Seth J. Kalvert

	
 
	
 
	
Name:
	
Seth J. Kalvert

	
 
	
 
	
Title:
	
SVP, General Counsel and Secretary

 

I hereby acknowledge that I have had a full and adequate opportunity to read, understand and discuss the terms and conditions contained in this offer letter prior to signing hereunder.

 

	
/s/ Dermot Halpin
	
 
	
 

	
DERMOT HALPIN
	
 
	
 

	
 
	
 
	
 
	
 

	
Date:
	
February 15, 2016
	
 
	
 

 

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