Document:

exhibit10_3a.htm

    Exhibit 10.3A

     

     

    MB
Financial Bank, N.A.

     

    Change in Control Severance
Agreement

     

    This
Severance Agreement, (the “Agreement”) is entered
into as of September 1, 2008 (the “Effective Date”), by and between MB Financial
Bank, N.A., a national banking association (the “Company”) and Burton J.
Field  (the “Executive”);

     

    Witnesseth
That:

     

           Whereas, the Executive is
employed by the Company, and the Company desires to provide protection to
Executive in connection with any change in control of the Company.

     

    Now,
Therefore, it is hereby agreed by and between the parties, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, as
follows:

     

    Article
I.                      Establishment
and Purpose

     

    1.1           Term of the
Agreement.  Unless expired earlier as provided in Section 1.3
or terminated by the Company pursuant to Section 2.4, this Agreement will
commence on the Effective Date and remain in effect for an initial term of three
years which will be automatically extended for one year on each anniversary of
the Effective Date. In addition, if a Change in Control occurs while this
Agreement is effective, this Agreement will remain irrevocably in effect for the
greater of twenty-four months from the date of the Change in Control or until
all benefits have been paid to the Executive hereunder, and will then
expire.

     

    1.2           Purpose of the
Agreement.  The purpose of this Agreement is to advance the
interests of the Company by providing the Executive with an assurance of
equitable treatment, in terms of compensation and economic security, in the
event of an acquisition or other Change in Control of the Company.  An
assurance of equitable treatment will enable the Executive to maintain
productivity and focus during a period of significant uncertainty that is
inherent in an acquisition or other Change in Control.  Further, the
Company believes that agreements of this kind will aid it in attracting and
retaining the highly qualified, high-performing professionals who are essential
to its success.

     

    1.3           Contractual Right to
Benefits.  This Agreement establishes and vests in the
Executive a contractual right to the benefits to which he or she is entitled
hereunder, enforceable by the Executive against the Company.  However,
nothing in this Agreement will require or be deemed to require the Company to
segregate, earmark, or otherwise set aside any funds or other assets to provide
for any payments to be made under it.

     

    Subject
to Section 3.2, the Company will retain the right to terminate the Executive’s
employment at any time prior to a Change in Control of the
Company.  If the Executive’s employment is terminated prior to a
Change in Control of the Company, this Agreement will no longer be applicable to
the Executive, and any and all rights and obligations of the Company and the
Executive under this Agreement will cease.  Notwithstanding the
foregoing, if the effective date of a Change in Control occurs within six months
following the effective date of an involuntary termination without Just Cause,
the Executive's termination may be deemed to be a Qualifying Termination
pursuant to Section 3.2 of this Agreement as of the date of the Change in
Control.

     

    Article
II.                     Definitions
and Construction

     

    2.1           Definitions.  Whenever
used in the Agreement, the following terms have the meanings set forth below
and, when the meaning is intended, the initial letter of the word is
capitalized.

     

    
      	
               
      

            	
              (a)

            	
              “Average
      Annual Bonus” means the Executive’s actual average annual bonus earned
      over the two complete fiscal years prior to the Effective Date of
      Termination, or, if shorter, over the Executive’s entire period of
      employment.  However, if the Executive’s period of employment is
      less than one year, the average bonus will be considered
    zero.

            

    

     

    
      	
               
      

            	
              (b)

            	
              “Base
      Salary” means the average annual salary received by the Executive during
      the 24-month period immediately preceding the Effective Date of
      Termination.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (c)

            	
              “Beneficial
      Owner” has the meaning ascribed to that term in Rule 13d-3 of the General
      Rules and Regulations under the Exchange Act, namely, any person, who
      directly or indirectly, through any contract, arrangement, understanding
      or otherwise, has or shares voting power, which includes the power to vote
      or direct the voting of securities, and/or investment power, which
      includes the power to dispose of, or direct the disposition of, a
      security.

            

    

     

    
      	
               
      

            	
              (d)

            	
              “Beneficiary”
      means the persons or entities designated or deemed designated by
      the  Executive pursuant to Section 8.2
  herein.

            

    

     

    
      	
               
      

            	
              (e)

            	
              “Board”
      means the Board of Directors of the
Company.

            

    

     

     (f)          The
term “Change in Control” means (1) any Person is or becomes the Beneficial Owner
directly or indirectly of securities of the Parent or the Company representing
35% or more of the combined voting power of the Parent’s or the Company’s
outstanding securities entitled to vote generally in the election of directors;
(2) individuals who were members of the Parent Board on the Effective Date (the
“Incumbent Parent Board”) cease for any reason to constitute at least a majority
thereof, provided
that any person becoming a member of the Parent Board subsequent to the
Effective Date (a) whose appointment as a director by the Parent Board was
approved by a vote of at least three-quarters of the directors comprising the
Incumbent Parent Board, or (b) whose nomination for election as a member of the
Parent Board by the Corporation’s stockholders was approved by the Incumbent
Parent Board or recommended by the nominating committee serving under the
Incumbent Parent Board, shall be considered a member of the Incumbent Parent
Board; (3) consummation of a plan of reorganization, merger or consolidation
involving the Parent or the Company or the securities of either, other than (a)
in the case of the Parent, a transaction at the completion of which the
stockholders of the Parent immediately preceding completion of the transaction
hold more than 60% of the outstanding securities of the resulting entity
entitled to vote generally in the election of its directors or (b) in the case
of the Company, a transaction at the completion of which the Parent holds more
than 50% of the outstanding securities of the resulting institution entitled to
vote generally in the election of its directors; (4) consummation of a sale or
other disposition to an unaffiliated third party or parties of all or
substantially all of the assets of the Parent or the Company or approval by the
stockholders of the Parent or the Company of a plan of complete liquidation or
dissolution of the Parent or the Company; provided that for
purposes of clause (1), the term “Person” shall not include the Parent, any
Executive benefit plan of the Parent or the Company, or any corporation or other
entity owned directly or indirectly by the stockholders of the Parent in
substantially the same proportions as their ownership of stock of the
Parent.  Each event comprising a “Change in Control” is intended to
constitute a “change in ownership or effective control,” or a “change in the
ownership of a substantial portion of the assets,” of the Parent or the Company
as such terms are defined for purposes of Section 409A of the Code and
“Change in Control” as used herein shall be interpreted consistently
therewith.

     

    
      	
               
      

            	
              (g)

            	
              “Code”
      means the Internal Revenue Code of 1986, as
  amended.

            

    

     

    
      	
               
      

            	
              (h)

            	
              “Company”
      means MB Financial Bank, N.A., a national banking association, or any
      successor thereto that adopts the Agreement, as provided in Section 8.1
      herein.

            

    

     

    
      	
               
      

            	
              (i)

            	
              “Compensation
      Committee” means the Compensation Committee of the Board of Directors of
      the Parent Company.

            

    

     

    
      	
               
      

            	
              (j)

            	
              “Director”
      means a member of the Board or of the Parent Board, as the case may
      be.

            

    

     

    
      	
               
      

            	
              (k)

            	
              “Disability”
      means a physical or mental condition that would entitle the Executive to
      benefits under the Company’s long-term disability plan, or if the Company
      maintains no such plan, then under the federal Social Security
      laws.

            

    

     

    
      	
               
      

            	
              (l)

            	
              “Effective
      Date of Termination” means the date on which a Qualifying Termination
      occurs which triggers Severance Benefits
  hereunder.

            

    

     

    
      	
               
      

            	
              (m)

            	
              “Exchange
      Act” means the Securities Exchange Act of 1934, as amended from time to
      time, or any successor to it.

            

    

     

    
      	
               
      

            	
              (n)

            	
              “Expiration
      Date” means the date the Agreement expires, as provided in Section 1.1
      herein.

            

    

     

    
      
        
        

      

      
        - 2
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              (o)

            	
              “Good
      Reason” means (i) the occurrence of a ten percent or greater reduction in
      the aggregate value of the Executive’s annual Base Salary, bonus
      opportunity, and benefits excluding profit sharing; (ii) the assignment to
      the Executive of any duties inconsistent with, and commonly (in the
      banking industry) considered beneath, the Executive’s position, or a
      change in the Executive’s status, offices, titles and reporting
      relationships, authority, duties or responsibilities, or any other action
      by the Company, in each case if the assignment, change or action results
      in a significant diminution in the Executive’s position, authority, duties
      or responsibility; or (iii) a required relocation of the Executive to a
      location more than fifty miles from the Executive’s then existing job
      location to which the Executive does not consent to in
      writing.  In determining whether an assignment, change or action
      described in clause (ii) above constitutes Good Reason, due consideration
      will be given to the size of the organization and other facts and
      circumstances surrounding the Executive’s situation before and after the
      assignment, change or action.  For example, if the Executive is
      moved to a position that carries a title generally considered to be of a
      lower degree, but he or she is working in a larger division or company
      than before the change, has more Executives reporting to him or her, or
      has authority for projects controlling more dollars, or if other
      circumstances exist that suggest the Executive’s new position is not a
      demotion, then Good Reason will not exist for the Executive to terminate
      his or her employment.

            

    

     

    
      
      

    

    
      	
               
      

            	
              (p)

            	
              “Just
      Cause” means a termination of the Executive’s employment by the Company,
      for which no Severance Benefits are payable, as provided in Article
      IV.

            

    

     

    
      	
               
      

            	
              (q)

            	
              “Parent”
      means MB Financial, Inc., a Maryland corporation, or any direct parent of
      a successor of the Company that adopts the Agreement as provided in
      Section 8.1.

            

    

     

    
      	
               
      

            	
              (r)

            	
              “Parent
      Board” means the Board of Directors of the
  Parent.

            

    

     

    
      	
               
      

            	
              (s)

            	
              “Person”
      means a natural person, company, or government, or a political
      subdivision, agency, or instrumentality of a government, including a
      “group” as defined in Section 13(d) of the Exchange Act.  When
      two or more persons act as a partnership, limited partnership, syndicate
      or other group for the purpose of acquiring the securities of the Company,
      they will be deemed a Person for purposes of the
      Agreement.  “Person” will be construed in the same manner as
      under Section 3(a)(9) of the Exchange Act, and “group” will be construed
      in the same manner as under Section 13(d) of the Exchange
    Act.

            

    

     

    
      	
               
      

            	
              (t)

            	
              “Qualifying
      Termination” means any of the events described in Section 3.2, the
      occurrence of which triggers the payment of Severance
      Benefits.

            

    

     

    
      	
               
      

            	
              (u)

            	
              “Severance
      Benefit” means the payment of severance compensation as provided in
      Article III.

            

    

     

    2.2           Gender and
Number.  Except where otherwise indicated by the context, any
masculine term used herein also includes the feminine, the plural includes the
singular, and the singular includes the plural.

     

    2.3           Severability.  If
any provision of this Agreement is held to be illegal or invalid for any reason,
the illegality or invalidity will not affect the remaining parts of this
Agreement, and this Agreement will be construed and enforced as if the illegal
or invalid provision had not been included.

     

    2.4           Amendment or
Termination.  The provisions of this Agreement may be amended
by written agreement between the Company and the Executive, with any material
amendment approved by the Compensation Committee or the
Board.  Subject to the final sentence of Section 1.1, the Company may
terminate this Agreement by written resolution of the Compensation Committee or
the Board, effective as of a date at least twelve months following the date the
Company gives written notice to the Executive of its intent to terminate the
Agreement.

     

    2.5           Applicable Law.  To
the extent not preempted by the laws of the United States, the laws of the State
of Illinois, without regard to its conflict of laws provisions, will be the
controlling law in all matters relating to this Agreement.

     

    Article
III.                    Severance
Benefits

     

    3.1           Right to Severance
Benefits.  Subject to the provisions hereof, the Executive will
be entitled to receive from the Company Severance Benefits as described in
Section 3.3 if there has been a Change in Control of the Company and if any of
the events designated within Section 3.2 occur.  The Executive will
not be entitled to receive Severance Benefits if his or her employment with the
Company ends due to death, disability, voluntary retirement, a voluntary
termination by the Executive without Good Reason, or due to an involuntary
termination by the Company for Just Cause.

     

    
      
         

      

      
        - 3
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    3.2           Qualifying
Terminations.  The occurrence of any one of the following
events within twenty-four calendar months after a Change in Control of the
Company will trigger the payment of Severance Benefits under this
Agreement:

     

    (a)           an
involuntary termination of the Executive’s employment without Just
Cause;

     

    
      	
               
      

            	
              (b)

            	
              a
      voluntary termination of the Executive’s employment with the Company, for
      Good Reason;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      failure or refusal of a successor company (including, but not limited to,
      an individual, corporation, association, or partnership) to assume the
      Company’s obligations under this Agreement, as required by Section 8.1;
      and

            

    

     

    
      	
               
      

            	
              (d)

            	
              a
      breach by the Company or any successor company of any of the provisions of
      this Agreement.

            

    

     

    In
addition, an involuntary termination without Just Cause will trigger the payment
of Severance Benefits under this Agreement if the Executive’s employment is
terminated by the Company without Just Cause within six months prior to a Change
in Control that actually occurs during the term of this Agreement and either (i)
the termination was at the request or direction of a Person who has entered into
an agreement with the Company the consummation of which would constitute a
Change in Control, or (ii) the Executive reasonably demonstrates that the
termination is otherwise in connection with or in anticipation of the Change in
Control.

     

    3.3           Description of Severance
Benefits.  If the Executive becomes entitled to receive
Severance Benefits, as provided in Sections 3.1 and 3.2, the Company will pay to
the Executive and provide him or her with the following:

     

    
      	
               
      

            	
              (a)

            	
              an
      amount equal to the Executive’s annual Base Salary multiplied by two;

            

    

     

    
      	
               
      

            	
              (b)

            	
              an
      amount equal to the Executive’s Average Annual Bonus multiplied by two;

            

    

     

    
      	
               
      

            	
              (c)

            	
              immediate
      vesting of the Executive's benefits, if any, under any and all
      non-qualified retirement plans of the Company (or its affiliates) in which
      the Executive participates; and

            

    

     

    
      	
               
      

            	
              (d)

            	
              continuation
      of the welfare benefits of medical, dental or other health coverage,
      long-term disability, and group term life insurance at the same premium
      cost to the Executive and at the same coverage level as in effect as of
      the Executive’s Effective Date of Termination until the second anniversary of
      the Effective Date of Termination, without regard to the federal income
      tax consequences of that
continuation.

            

    

     

            
The treatment of any options held by the Executive will be subject to the terms
of the plan or plans under which they were granted.  Benefits under
subsection 3.3(d) will be discontinued prior to the end of the second anniversary of the
Effective Date of Termination if the Executive receives substantially similar
benefits in the aggregate from a subsequent employer, as determined by the
Compensation Committee.  Continued medical, dental or other health
benefits under subsection 3.3(d) will count toward any COBRA continuation
coverage period that may apply to the Executive.

     

    Article
IV.                    Just
Cause or Retirement

     

    4.1           Just Cause.  Nothing
in this Agreement will be construed to prevent the Company from terminating the
Executive’s employment for Just Cause.  If the Company does so, no
Severance Benefits will be payable to the Executive under this
Agreement.

     

    Just
Cause will be defined to include, but will not be limited to, willful, malicious
conduct by the Executive that is prejudicial to the best interests of the
Company, including theft, embezzlement, the conviction of a criminal act,
disclosure of trade secrets, a gross dereliction of duty, or other grave
misconduct on the part of the Executive that is injurious to the
Company.

     

    4.2           Retirement.  If the
Executive’s employment with the Company ends due to voluntary retirement, the
Executive: (i) will not be entitled to receive Severance Benefits under this
Agreement; and (ii) will not be eligible to participate in a Company-sponsored
severance plan or arrangement at any time following his or her
retirement.

     

    
      
         

      

      
        - 4
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    Article
V.                     Form
and Timing of Severance Benefits

     

    5.1           Form and Timing of Severance
Benefits.  The Severance Benefits described in Sections 3.3(a)
and (b) will be paid in cash to the Executive in a single lump sum as soon as
practicable following the Effective Date of Termination, but in no event more
than thirty days after the Effective Date of Termination.  The vesting
of benefits under Section 3.3(c) shall occur on the Effective Date of
Termination.

     

    The
Severance Benefits described in subsection 3.3(d) will be provided by the
Company to the Executive immediately upon the Effective Date of Termination and
will continue to be provided until the second anniversary of the
Effective Date of Termination.  However, the Severance Benefits
described in subsection 3.3(d) will be discontinued prior to the end of the
two-year period
immediately upon the Executive's receiving similar benefits from a subsequent
employer, as determined by the Compensation Committee.

     

    5.2          Withholding of
Taxes.  The Company will withhold from any amounts payable
under this Agreement all Federal, state, city, or other taxes that are legally
required.

     

    Article
VI.                    Tax
Gross Up Agreement

     

    6.1           Tax Gross Up
Agreement.  Contemporaneously with entering into this
Agreement, the Executive and Parent have entered into a Tax Gross-Up Agreement
to make the Executive whole in certain circumstances described therein from the
excise tax, if any, imposed under Section 280(G) of the Code.

     

    Article
VII.                  Other
Rights and Benefits Not Affected

     

    7.1           Other
Benefits.  Except as provided in this Section below, neither
the provisions of this Agreement nor the Severance Benefits provided for
hereunder will reduce any amounts otherwise payable, or in any way diminish the
Executive’s rights as an Executive of the Company, whether existing now or
hereafter, under any benefit, incentive, retirement, stock option, stock bonus,
stock purchase plan, or any employment agreement, or other Agreement or
arrangement.  Notwithstanding the foregoing, if the Executive is also
a covered Executive under a severance plan of the Company or one of its
affiliates, the Executive will be entitled to receive the Severance Benefits
provided under this Agreement in lieu of any severance pay or other benefits
provided under that severance plan.  Benefits provided under this
Agreement will not increase any amounts otherwise payable under any other
arrangement, if that other arrangement does not provide that severance benefits
will be taken into account in determining benefits.

     

    7.2           Employment
Status.  This Agreement does not constitute a contract of
employment or impose on the Executive or the Company any obligation to retain
the Executive as an Executive, to change the status of the Executive’s
employment, or to change the Company’s policies regarding termination of
employment.

     

    Article
VIII.                 Successors

     

    8.1           Successors.  The
Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation, or otherwise) of all or substantially all of the business
and/or assets of the Company or of any division or subsidiary thereof to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place.  Failure of the Company to obtain such an
assumption and agreement prior to the effectiveness of any such succession will
be a breach of this Agreement and will entitle the Executive to compensation
from the Company in the same amount and on the same terms as he or she would be
entitled hereunder if terminated voluntarily for Good Reason, except that, for
the purposes of implementing the foregoing, the date on which any succession
becomes effective will be deemed the Effective Date of Termination.

     

    This
Agreement will inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees, and legatees.  If the Executive dies while any
amount would still be payable to him or her hereunder had he or she continued to
live, any such amount, unless otherwise provided herein, will be paid in
accordance with the terms of this Agreement, to the Executive’s devisee,
legatee, or other designee, or if there is no such designee, to the Executive’s
estate.

     

    8.2           Beneficiaries.  The
Executive’s beneficiary under the qualified defined contribution plan of the
Company or an affiliate in which the Executive participates will be his or her
Beneficiary under this Agreement, unless the Executive otherwise designates a
Beneficiary in the form of a signed writing acceptable to the Compensation
Committee.  The Executive may make or change such a designation at any
time.

     

    
      
         

      

      
        - 5
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    Article
IX.                    Administration

     

    9.1          Administration.  This
Agreement will be administered by the Compensation Committee.  In that
capacity, the Compensation Committee, to the extent not contrary to the express
provisions of the Agreement, is authorized in its discretion to interpret this
Agreement, to prescribe and rescind rules and regulations, to provide conditions
and assurances deemed necessary and advisable, to protect the interests of the
Company, and to make all other determinations necessary or advisable for the
administration of this Agreement and similar Agreements.

     

    In
fulfilling its administrative duties hereunder, the Compensation Committee may
rely on outside counsel, independent accountants, or other consultants to render
advice or assistance.

     

    9.2          
 Indemnification and
Exculpation.  The members of the Board and the Parent Board,
its agents and officers, directors, and Executives of the Company and its
affiliates will be indemnified and held harmless by the Company against and from
any and all loss, cost, liability, or expense that may be imposed upon or
reasonably incurred by them in connection with or resulting from any claim,
action, suit, or proceeding to which they may be a party or in which they may be
involved by reason of any action taken or failure to act under this Agreement
and against and from any and all amounts paid by them in settlement (with the
Company’s written approval) or paid by them in satisfaction of a judgment in any
such action, suit, or proceeding.  The foregoing provision will not
apply to any person if the loss, cost, liability, or expense is due to that
person’s gross negligence or willful misconduct.

     

    Article
X.                    
Legal Fees and Arbitration

     

    10.1         Legal Fees and
Expenses.  The Company (or, in the event of the acquisition of
substantially all of the assets of the Company, the acquirer of those assets)
will pay all legal fees, costs of litigation, and expenses directly related to
legal fees and costs of litigation incurred in good faith by the Executive as a
result of the Company’s refusal to provide the Severance Benefits to which the
Executive becomes entitled under this Agreement, or as a result of the Company’s
contesting the validity, enforceability, or interpretation of this Agreement,
but in each case only if the Executive ultimately prevails in litigation
conducted as a result of the refusal or contest.

     

    10.2         Arbitration.  The
Executive and the Company will have the right and option to elect (in lieu of
litigation) to have any dispute or controversy arising under or in connection
with this Agreement settled by arbitration, conducted before a panel of three
arbitrators sitting in a location selected by the Executive within fifty miles
from the location of his or her job, in accordance with rules of the American
Arbitration Association then in effect.  Judgment may be entered on
the award of the arbitrator in any court having jurisdiction.  All
expenses of arbitration, including the fees and expenses of the counsel for the
Executive, will be split between the Company and the Executive, unless the
Executive prevails, in which case the Company will bear the expenses of the
arbitration.  Notwithstanding the right of the Executive or the
Company to elect to enter into arbitration, the Company and the Executive may
mutually agree to resolve any dispute or controversy arising under or in
connection with the Agreement in a court of law, in lieu of
arbitration.

     

    Article
XI.                    Exclusivity
of Severance Benefits

     

    11.1         Exclusivity of Severance
Benefits.  Subject to Section 7.1, if the Company is
contractually obligated to pay to the Executive any severance benefits pursuant
to another agreement, plan, program, policy, or any other change of control
agreement,  the terms and provisions of the program under which the
aggregate level of severance benefits is the highest (as determined by the
Executive) will operate to completely replace and supersede the terms and
provisions of this Agreement and/or all other programs that provide for the
payment of severance benefits.

     

    
      
         

      

      
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    Article
XII.                  Code
Section 409A

     

             
12.1        Code Section
409A.  The intent of the parties is that payments and benefits
under this Agreement comply with Internal Revenue Code Section 409A and the
regulations and guidance promulgated thereunder (collectively “Code Section
409A”) and, accordingly, to the maximum extent permitted, this Agreement shall
be interpreted to be in compliance therewith.  If the Executive
notifies the Company (with specificity as to the reason therefore) that the
Executive believes that any provision of this Agreement would cause the
Executive to incur any additional tax or interest under Code Section 409A and
the Company concurs with such belief or the Company (without any obligation
whatsoever to do so) independently makes such determination, the Company shall,
after consulting with the Executive, reform such provision to try to comply with
Code Section 409A through good faith modifications to the minimum extent
reasonably appropriate to conform with Code Section 409A.  To the
extent that any provision hereof is modified in order to comply with Code
Section 409A, such modification shall be made in good faith and shall, to the
maximum extent reasonably possible, maintain the original intent and economic
benefit to the Executive and the Company of the applicable provision without
violating the provisions of Code Section 409A.

     

    If the
Executive is deemed on the date of “separation from service” to be a “specified
Executive” within the meaning of such terms under Code Section 409A(a)(2)(B),
then with regard to any payment or the provision of any benefit that is
specified as subject to this Section, such payment or benefit shall be made or
provided at the date which is the earlier of (A) the expiration of the six
(6)-month period measured from the date of such “separation from service” of the
Executive, and (B) the date of the Executive’s death (the “Delay
Period”).  Upon the expiration of the Delay Period, all payments and
benefits delayed pursuant to this Section 12.1 (whether they would have
otherwise been payable in a single sum or in installments in the absence of such
delay) shall be paid or reimbursed to the Executive in a lump sum, and any
remaining payments and benefits due under this Agreement shall be paid or
provided in accordance with the normal payment dates specified for them
herein.  Whenever a payment is to be made promptly after a date, it
shall be made within sixty (60) days thereafter.

     

    With regard to any provision herein
that provides for reimbursement of expenses or in-kind benefits: (i) the right
to reimbursement or in-kind benefits is not subject to liquidation or exchange
for another benefit, and (ii) the amount of expenses eligible for reimbursement
or in-kind benefits provided during any taxable year shall not effect the
expenses eligible for reimbursement or in-kind benefits to be provided in any
other taxable year, provided that the foregoing shall not be violated with
regard to expenses covered by Code Section 105(h) that are subject to a limit
related to the period in which the arrangement is in effect.  Any
expense or other reimbursement payment made pursuant to this Agreement or any
plan, program, agreement or arrangement of the Company referred to herein, shall
be made on or before the last day of the taxable year following the taxable year
in which such expense or other payment to be reimbursed.

     

    In Witness
Whereof, the Executive has executed this Agreement and the Company has
caused this Agreement to be executed by a resolution of the Board, as of the day
and year first above written.

     

    
      	 MB
      FINANCIAL BANK, N.A.	 	 	 EXECUTIVE
	 	 	 	 
	 By: /s/ Jill E. York	 	 	 By: /s/ Burton J. Field
	 Its: Vice
      President and Chief Financial Officer	 	 	 Burton J.
      Field
	 	 	 	 
	 	 	 	 

    

     

     

    
      
        
        

      

      
        - 7
-ex10_54.htm

    
      

    

    EXHIBIT
10.54

    

    AMENDMENT

    TO
THE

    RESTRUCTURING
AGREEMENT

    

    This Amendment to the Restructuring
Agreement (the “Amendment”) is made and entered into this 31st day of
October, 2008 and is by and among by and among AMERALIA, INC., a Utah
corporation (“AmerAlia”), NATURAL SODA HOLDINGS, INC., a
Colorado corporation (“Holdings”), NATURAL SODA, INC., a Colorado
corporation (“Soda”), BILL H.
GUNN (“Gunn”), ROBERT
VAN MOURIK (“van Mourik”), SENTIENT USA  RESOURCES
FUND, L.P., a Delaware limited partnership (“Sentient I”), SENTIENT USA RESOURCES FUND II,
L.P., a Delaware limited partnership (“Sentient II”) and SENTIENT GLOBAL RESOURCES FUND III,
L.P., a Cayman Islands limited partnership (“Sentient III”).

    

    Background
Statement

    

    The parties executed and delivered a
Restructuring Agreement effective as of September 25, 2008 (the “Restructuring
Agreement”) related to a restructuring of the indebtedness owed by Holdings and
AmerAlia, the issuance of additional equity in Holdings and AmerAlia, and the
other matters described therein. All capitalized terms not defined herein shall
have the same meanings ascribed to them in the Restructuring Agreement. The
parties hereto have agreed to modify the Restructuring Agreement as provided
herein.

    

    Agreement

    

    For and in consideration of the
agreements contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree to
amend the Restructuring Agreement as follows:

    

    1.            Section 3(a) of the
Restructuring Agreement is amended and restated in its entirety to read as
follows:

    

    a.            Purchase of AmerAlia Common
Stock.  At the Closing, Sentient I shall purchase 15,277,778
shares of AmerAlia Common Stock at a purchase price of $ 0.36 per share for a
total purchase price of $5,500,000. At the Second Closing (as defined in Section
5 below), Sentient I shall purchase 12,149,628 shares of AmerAlia Common Stock
at a purchase price of $ 0.36 per share for a
total purchase price of $4,373,866. The proceeds from the subscription amounts
paid at the Closing shall be used in the following priority: (i) to pay the
obligations described in Section 9.a.i that are not converted into AmerAlia
Common Stock, (ii) to pay any amounts that must be paid as a condition of
Closing, and (iii) as working capital reserve for AmerAlia.  The
proceeds from the subscription amounts paid at the Second Closing shall be used
in the following priority: (x) as working capital reserve for AmerAlia of
$1,000,000, (y) as a reserve to be used to solely fund AmerAlia's share of the
previously discussed and agreed upon anticipated capital calls of Holdings
(AmerAlia’s share of which is $2,880,000), and (z) as additional working capital
for AmerAlia (including the payment of any remaining obligations under Section
9a).  Any deviation from these priorities will require the prior
written consent of Sentient, which may be withheld by it in its sole
discretion. Upon delivery of the purchase price to AmerAlia such shares
shall be issued to Sentient I and shall be fully paid and non-assessable. In
addition, at any time, and from time to time, during the thirty-six (36) months
following Closing, Sentient I shall have the right to purchase up to a total of
5,500,000 additional shares of
AmerAlia Common Stock (the “Additional Shares”) at a price of $.36 per share.
Until the Second Closing, upon no less than thirty (30) days’ prior written
notice to Sentient I, AmerAlia will have the right to force Sentient I to
purchase up to 1,895,708 shares (for a total purchase price of $682,455) of the
Additional Shares solely for the purpose of providing additional working capital
for AmerAlia. Except as provided in the preceding sentence, AmerAlia will not
have the right to force Sentient I to purchase all or any part of the Additional
Shares.  Sentient I’s right to purchase the Additional Shares is only to be
exercised to resolve obligations of AmerAlia that exist at Closing and are not
discharged as of Closing, and then only if the holders of such unpaid
obligations pursue or, by written demand from counsel or a collector, threaten
to pursue claims against AmerAlia (or its affiliates). Prior to exercising this
option Sentient I will provide AmerAlia with ten days' prior written notice
of its intent to exercise this right to purchase stock, if AmerAlia doesn't
either pay off the obligation or enter into some other arrangement with the
creditor protecting AmerAlia from claims from that creditor for at least 24
months. If exercised, the proceeds from the purchase are to be used solely to
pay the obligation to the creditor named in the notice (or the holder of the
obligation referenced).

    

      
        
           

        

        
          Page 1 of
4

          
            

          

        

        
           

        

      

    

     

    2.            Section 5 of the
Restructuring Agreement is amended and restated in its entirety to read as
follows:

    

    5.            Closing. The Closing will
occur on October 31, 2008, at the offices of Holland & Hart, LLP, 8390 E.
Crescent Parkway, Suite 400, Greenwood Village, CO 80111, or at such other time
and place as the parties may agree (the “Closing”). At the Closing, the steps
described in Sections 3 and 4 of the Restructuring Agreement will occur. All
transactions occurring at the Closing will be deemed to have taken place
simultaneously as part of a single transaction and no transaction will be deemed
to have been completed and no document, certificate, or instrument deemed to
have been delivered until all transactions have been completed and all
documents, instruments, and certificates have been delivered.  The
transfers that take place at Closing will be deemed to be effective as of the
opening of business on the date of Closing. A second closing (the “Second
Closing”) will occur on or before December 5, 2008, or at such other time and at
such place as the parties may agree. At the Second Closing, the payment of money
and issuance of shares described in Section 3(a) as occurring at the Second
Closing shall occur. All transactions occurring at the Second Closing will be
deemed to have taken place simultaneously as part of a single transaction and no
transaction will be deemed to have been completed and no document, certificate,
or instrument deemed to have been delivered until all transactions have been
completed and all documents, instruments, and certificates have been
delivered.  The transfers that take place at Second Closing will be
deemed to be effective as of the opening of business on the date of the Second
Closing.

    

    3.            The initial sentence of
Section 6 of the Restructuring Agreement is amended and restated in its entirety
to read as follows:

    

    6.            Conditions. The obligations of
Sentient I to close the transactions contemplated by this Agreement at the
Closing shall be subject to the conditions precedent set forth in Sections 6.a.
through 6.o., any one or more of which may be waived by Sentient I in its
unfettered discretion. The obligations of Sentient I to close the transactions
contemplated by this Agreement at the Second Closing shall be subject to the
satisfaction of the conditions precedent set forth in subsections 6.d., 6.e.,
and 6.p any one or more of which may be waived by Sentient I in its unfettered
discretion.

    
      
         

      

      
        Page 2 of
4

        
          

        

      

      
         

      

    

    4.            Section 6.p. of the
Restructuring Agreement is amended and restated in its entirety to read as
follows:

    

    p.            EE Kinder
Obligations.  Obligations to EE Kinder Co. that have accrued
prior to the Second Closing shall have been satisfied by payment, conversion
into AmerAlia Common Stock, or a combination of payment and
conversion.

    

    5.            At the Second Closing,
AmerAlia, van Mourik and Gunn shall deliver to the Sentient Entities a
certificate concerning the matters described in Section 9.g. of the
Restructuring Agreement dated as of the Second Closing.

    

    6.            Sentient I agrees that it
will not cause or permit Holdings to make the previously discussed and
agreed-upon capital call at any time prior to the Second Closing without the
prior written approval of AmerAlia. The provisions of this Section shall
terminate if the Second Closing does not occur as a result of any breach of the
Agreement by AmerAlia or any failure of AmerAlia to satisfy any condition
precedent to Sentient I’s duty to close.

    

    7.            Either Sentient I or
AmerAlia shall have the right (but not the obligation) to terminate the
obligation to proceed with the Second Closing if the Second Closing has not
occurred ninety (90) days from the date scheduled (the “Second Closing Outside
Date”); provided that, such termination right shall not be available to any
party whose breach of a representation, warranty, covenant or agreement, or
failure to satisfy a condition precedent under this Agreement caused the failure
of the Closing to occur by the Second Closing Outside Date.  The
Second Closing Outside Date may be extended only by the written agreement of
Sentient I and AmerAlia. Any termination of the obligation to proceed with the
Second Closing under this Section shall not affect the release described in
Section 10.a, of the Restructuring Agreement, or any of the transactions
occurring at or as a result of the original Closing, nor shall it affect any
rights or remedies resulting from the breach of any agreement contained
herein.

    

    8.            Except as herein expressly
modified or amended, all the terms and conditions of the Restructuring Agreement
are hereby ratified, affirmed, and approved.  This Amendment shall be
binding upon and inure to the benefit of each of the parties to the
Restructuring Agreement and their respective successors and assigns, whether
voluntary by act of the parties or involuntary by operation of law. This
Amendment may be executed in several counterparts, each of which may be deemed
an original, and all of such counterparts together shall constitute one and the
same Amendment.

    

      
        
           

        

        
          Page 3 of
4

          
            

          

        

        
           

        

      

    

     

    IN
WITNESS WHEREOF, the parties have executed this Agreement to be effective as of
the date set forth in the introductory paragraph.

     

    
      

      
        
          
            	
                    AMERALIA,
      INC

                  	 
      	
                    NATURAL
      SODA HOLDINGS, INC.

                  
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                    By:

                  	
                    /s/
      Bill H. Gunn

                  	 
      	
                    By:

                  	
                    /s/
      Bill H. Gunn

                  
	
                    Name:

                  	
                    Bill
      H. Gunn

                  	 
      	
                    Name:

                  	
                    Bill
      H. Gunn

                  
	
                    Title:

                  	
                    President

                  	 
      	
                    Title:

                  	
                    President

                  
	 
      	 
      	 
      	 
      	 
      
	
                    NATURAL
      SODA, INC.

                  	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                    By:

                  	
                    /s/
      Bill H. Gunn

                  	 
      	 
      	 
      
	
                    Name:

                  	
                    Bill
      H. Gunn

                  	 
      	 
      	 
      
	
                    Title:

                  	
                    President

                  	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                    VAN
      MOURIK

                  	 
      	 
      	
                    GUNN

                  
	 
      	 
      	 
      	 
      	 
      
	 
      	
                    /s/
      Robert van Mourik

                  	 
      	 
      	
                    /s/
      Bill H. Gunn

                  
	 
      	
                    Robert
      van Mourik, individually

                  	 
      	 
      	
                    Bill
      H. Gunn, individually

                  
	 
      	 
      	 
      	 
      	 
      
	
                    SENTIENT
      USA  RESOURCES FUND, L.P.

                  	 
      	
                    SENTIENT
      USA  RESOURCES FUND II, L.P.

                  
	
                    By:

                  	
                    Sentient
      Executive MLP 1, Limited,

                  	 
      	
                    By:

                  	
                    Sentient
      Executive MLP 1, Limited,

                  
	 
      	
                    General
      Partner

                  	 
      	 
      	
                    General
      Partner

                  
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                    By:

                  	
                    /s/
      Gregory Link

                  	 
      	
                    By:

                  	
                    /s/
      Gregory Link

                  
	
                    Name:

                  	
                    Gregory
      Link

                  	 
      	
                    Name:

                  	
                    Gregory
      Link

                  
	
                    Title:

                  	Director	 
      	
                    Title:

                  	Director
	 
      	 
      	 
      	 
      	 
      
	
                    SENTIENT
      GLOBAL RESOURCES FUND III, LP

                  	 
      	 
      	 
      
	
                    By:

                  	
                    Sentient
      GP III, L.P., General Partner

                  	 
      	 
      	 
      
	 
      	
                    By:
      Sentient Executive GP III,

                  	 
      	 
      	 
      
	 
      	
                    Limited,
      General Partner

                  	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                    By:

                  	
                    /s/
      Gregory Link

                  	 
      	 
      	 
      
	
                    Name:

                  	
                    Gregory
      Link

                  	 
      	 
      	 
      
	
                    Title:

                  	Director	 
      	 
      	 
      

          

        

      

       

       

      Page 4 of 4

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