Document:

EMPLOYMENT AGREEMENT

EXHIBIT 10.14

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT

(the “Agreement”) is made and entered into as of this 6th day of November,

2001, by and between MB Financial Bank, N.A., (the “Bank”) and Ronald Santo

(the “Employee”).

 

A.    The Bank desires that the

Employee provide services for the benefit of the Bank and its affiliates and

the Employee desires to accept such employment with the Bank.

 

B.    The Employee serves as

Chairman and Group President of the Bank.

 

C.    The Bank and the Employee

acknowledge that the Employee will be a member of the senior management team of

the Bank and, as such, will participate in implementing the Bank’s business

plan.

 

D.    In the course of employment

with the Bank and MidCity Financial Corporation (“MidCity”), the Employee has

had and will continue to have access to certain confidential information that

relates to or will relate to the business of the Bank and its affiliates.

 

E.     The Bank desires that any

such information not be disclosed to other parties or otherwise used for

unauthorized purposes.

 

NOW THEREFORE,

in consideration of the foregoing and of the respective covenants and

agreements of the parties herein, it is AGREED as follows:

 

1.                                       Definitions.

 

(a)                                  The

term “Change in Control” means the occurrence of any of the following events:

(i)            any person (as such term is defined

in Section 3 of the Securities and Exchange Act of 1934 (the “Act”) and

used in Rule 13d-5 of the Securities and Exchange Commission (the “SEC”) under

the Act) or group (as such term is defined in Section 13(d) of the Act), other

than a subsidiary or any employee benefit plan (or any related trust) of the

Bank or a subsidiary, becomes the beneficial owner of fifty percent (50%) or

more of the common stock of the Bank or of Voting Securities representing fifty

percent (50%) or more of the combined voting power of all Voting Securities of

the Bank;

 

(ii)           individuals who, as of the Effective

Date, constitute the Board of Directors (the “Incumbent Directors”) cease for

any reason to constitute at least a majority of the Board of Directors;

provided that any individual who becomes a director after the Effective Date

whose election, or nomination for election by the Bank’s stockholders, was

approved by a vote or written consent of at least two-thirds of the directors then

comprising the Incumbent Directors shall be considered an Incumbent Director,

but excluding, for this purpose, any such individual whose initial assumption

of office is in connection with an actual or threatened election contest

relating to the election of the directors of the Bank (as such terms are used

in Rule 14a-11 of the SEC under the Act); or

 

 

(iii)          approval

by the stockholders of the Bank and

the consummation of any of the following transactions:

 

(A) a merger,

reorganization or consolidation (“Merger”) with respect to which the

individuals and entities who were the respective beneficial owners of the

Voting Securities of the Bank immediately before such Merger do not, after such

Merger, beneficially own, directly or indirectly, more than seventy-five

percent (75%) of the Voting Securities of the corporation resulting from such

Merger, or

 

(B) the

sale or other disposition of all or substantially all of the assets of the

Bank.

 

(b)           The term “Date of Termination” means

the date upon which the Employee’s employment with the Bank ceases, as

specified in a notice of termination pursuant to Section 8 of this Agreement.

 

(c)           The term “Effective Date” means

November 6, 2001.

 

(d)           The term “Involuntary Termination”

means the termination of the employment of Employee (i) by the Bank without his

express written consent; or (ii) by the Employee by reason of any of the

following actions unless consented to in writing by the Employee: (i) the

occurrence of a ten percent (10%) or greater reduction in the aggregate value

of the Employee’s annual Base Salary, bonus opportunity, and benefits,

excluding any profit sharing; (ii) the assignment to the Employee of any duties

inconsistent with, and commonly (in the banking industry) considered beneath

the Employee’s position, or a change in the Employee’s status, offices, titles

and reporting relationships, authority, duties or responsibilities, or any

other action by the Bank, in each case if the assignment, change or action

results in a significant diminution in the Employee’s position, authority,

duties or responsibilities; or (iii) a required relocation of the Employee to a

location more than thirty-five (35) miles from the Employee’s then existing job

location to which the Employee does not consent to in writing.  In determining whether an assignment, change

or action described in clause (ii) above constitutes Involuntary Termination,

due consideration will be given to the size of the organization and other facts

and circumstances surrounding the Employee’s situation before and after the

assignment, change or action.  For

example, if the Employee is moved to a position that carries a title generally

considered to be of a lower degree, but he is working in a larger division or

company than before the change, has more employees reporting to him, or has

authority for projects controlling more dollars, or if other circumstances

exist that suggest the Employee’s new position is not a demotion, then an

Involuntary Termination will not be deemed to have occurred.

 

(e)           The terms “Termination for Cause” and

“Terminated For Cause” mean termination of the employment of the Employee with

the Bank because of the Employee’s willful malicious conduct which is

prejudicial to the best interests of the Bank, 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

which is substantially injurious to the Bank. 

No act or failure to act by the Employee shall be considered willful

unless the Employee acted or failed to act in bad faith and without a

reasonable belief that his action or failure to act was in the best interest of

the Bank.  The Employee shall not be

deemed to have been Terminated for Cause unless and until there shall have been

delivered to the Employee a copy of a resolution, duly adopted by the

affirmative vote of not less than a majority of the entire 

 

2

 

membership of the Board of

Directors at a meeting of the Board duly called and held for such purpose

(after reasonable notice to the Employee and an opportunity for the Employee,

together with the Employee’s counsel, to be heard before the Board), stating

that in the good faith opinion of the Board of Directors the Employee has

engaged in conduct described in the preceding sentence and specifying the

particulars thereof in detail.

 

(f)            The term “Voluntary Termination”

shall mean termination of employment by the Employee voluntarily as set forth

in Section 6(e) of this Agreement.

 

(g)           The

term “Voting Securities” shall mean

those securities of a corporation that are entitled to vote generally in the

election of directors of such corporation.

 

2.             Term.  The term of this Agreement shall be a period

of three years commencing on the Effective Date, subject to earlier termination

as provided herein (“Term”).

 

3.             Employment.  The Employee is employed as the Group

President and Chairman of the Bank.  As

such, the Employee shall render such management services as are specified by

the Board of Directors of the Bank (the “Board of Directors”) and Chief

Executive Officer of MB Financial, Inc. and are customarily performed by

persons situated in similar executive capacities consistent with the Employee’s

duties as of the date of this Agreement. 

The Employee shall also render services to any subsidiary or

subsidiaries of the Bank as requested by the Board of Directors from time to

time.  The Employee shall devote his

best efforts and reasonable time and attention to the business and affairs of

the Bank to the extent necessary to discharge his responsibilities

hereunder.  The Employee may (i) serve

on charitable boards or committees at the Employee’s discretion without consent

of the Board of Directors and, in addition, on such corporate boards as are

approved in a resolution adopted by a majority of the Board of Directors, and

(ii) manage personal investments, so long as such activities do not interfere

materially with performance of his responsibilities hereunder.

 

4.             Compensation.

 

(a)           Salary.  The Bank shall pay the Employee an annual

base salary of not less than $250,000.00 (the “Base Salary”), payable in

substantially equal installments in accordance with the Bank’s payroll policy

from time to time in effect.  The amount

of Base Salary may, in the sole discretion of the Bank, be increased from time

to time but shall not be decreased.  The

Employee’s salary and other compensation hereunder shall be subject to any

payroll or other deductions as may be required to be made pursuant to law,

government order, or by agreement with, or consent of, the Employee.  

 

(b)           Signing Bonus.  Upon the execution of this Agreement, the

Bank shall pay the Employee a signing bonus in an amount equal to $300,000 (the

“Signing Bonus”).  The foregoing

notwithstanding, upon a termination of the Employee’s employment pursuant to

Sections 6(d) or 6(e) at anytime prior to the third anniversary of the

Effective Date, he shall forfeit the net after-tax Signing Bonus on a prorated

basis.  Such prorata forfeited amount

shall be determined by multiplying the net after-tax Signing Bonus by a

fraction, the numerator of which shall be equal to the number of days remaining

in the Term as of the date of employment termination and the denominator of

which shall be equal to 1,095.

 

(c)           Bonus.  The Employee shall be eligible to

participate in such bonus programs, if any, as may be established and awarded

by the Board of Directors in its sole 

 

3

 

discretion for the executive

officers of the Bank; provided, however, that if any such bonuses are awarded

to any executive officer for a given year, the Employee shall be entitled to a

minimum guaranteed bonus of sixty thousand dollars ($60,000.00) for such year.

 

(d)           Options.  The Employee shall be eligible to

participate in and receive option grants under the MB Financial, Inc. 1997

Omnibus Incentive Plan or any successor plan thereto to the extent the Board of

Directors, in its sole discretion, authorizes such option grants for any

executive officer of the Bank in a given year.

 

(e)           Other Benefits.  During the Term of this Agreement, the Bank

shall:

 

(i)            permit the Employee to participate

to the same extent as other executive officers of the Bank in all life

insurance, disability insurance, medical, dental or health insurance, vacation,

savings, pension and retirement plans and other benefit plans or programs

maintained by the Bank for the benefit of its employees;

 

(ii)           pay the cost of the Employee’s

membership dues and service charges at the Ruth Lake Country Club;

 

(iii)          permit the Employee to participate in

the Bank’s automobile leasing program on terms comparable to those provided to

other executive officers of the Bank;

 

(iv)          pay the premiums on Principal

Financial Group supplemental life insurance policy number 34613562 with a face

value of $265,322 which is attached hereto as Exhibit A (the “Principal

Policy”), or such other similar supplemental life insurance policy as may be

maintained by the Bank for the benefit of the Employee;

 

(v)           pay the premiums on the existing

Principal Financial Group Key Man Adjustable Life Policy number 34913608, which

is attached as Exhibit B hereto (the “Key Man Policy”) or, if the Bank

elects to cease paying such premiums at anytime, permit the Employee to

purchase the Key Man Policy for its then current cash surrender value; and

 

(vi)          continue to permit the Employee to pay

the premiums on the Met Life Policy number 0056368170 (the “Met Life Policy”)

through a deduction from his profit sharing, or through such other method as

mutually agreed to by the Bank and the Employee.

 

(f)            The Employee shall be entitled to

receive prompt reimbursement for all reasonable expenses incurred by the

Employee in performing services under this Agreement in accordance with the

policies and procedures applicable to the executive officers of the Bank,

provided that the Employee accounts for such expenses as required under such

policies and procedures.

 

5.             Vacations; Leave.  The Employee shall be entitled (i) to annual

paid vacation of four weeks in accordance with the policies established by the

Board of Directors for executive officers, and (ii) to voluntary leaves of

absence, with or without pay, from time to time at such times and upon such

conditions as the Board of Directors may determine in its discretion.

 

4

 

6.             Termination of Employment.

 

(a)           Involuntary Termination.  If the Employee experiences an Involuntary

Termination, such termination of employment shall be subject to the Bank’s

obligations under this Section 6.  In

the event of Involuntary Termination, then, subject to Section 6(b) of this

Agreement, the Bank shall, as liquidated damages (i) during the remaining Term

of this Agreement, pay to the Employee monthly one-twelfth of the Base Salary

at the annual rate in effect immediately prior to the Date of Termination and

one-twelfth of the average annual amount of cash bonus of the Employee, based

on the average amounts of cash bonus earned by the Employee for the two full

fiscal years preceding the Date of Termination; (ii) provide the benefits set

forth in Section 6(f) of this Agreement on the terms set forth therein provided

that during the remaining Term of this Agreement, the Bank shall pay the

same portion of the cost of benefits under Section 6(f) as it would have paid

if no termination of employment had occurred; (iii) if the Employee is not

fully vested under any other benefit plan or arrangement in which he is a

participant as of the Date of Termination (except for any tax-qualified

“employee pension plan” as defined in Section 3(2) of the Employee Retirement

Income Security Act of 1974, as amended, including any “multiemployer plan” as

defined in Section 3(37) of such Act but excluding any supplemental executive

retirement plan), deem the Employee to be fully vested therein and the Bank

shall guarantee that he shall receive benefits thereunder accordingly; (iv)

provide the Employee the opportunity to purchase the Key Man Policy for its

then cash surrender value and transfer ownership of the Principal Policy to the

Employee at no cost to him (i.e., with no obligation to pay the cash surrender

value); and (v) during the remaining Term of this Agreement, continue the group

term life insurance (or, if the Bank is unable to provide such group term life

insurance, the Employee shall be permitted to convert such coverage to an

individual insurance policy) provided by the Bank at the same premium cost to

the Employee and at the same coverage level as in effect immediately prior to

the Involuntary Termination.

 

(b)           Release.  The Employee agrees that his right to

receive the liquidated damages described in Paragraph 6(a) shall be

conditioned upon his execution of an agreement substantially in the form of

Exhibit C which is attached hereto that (1) waives any rights the Employee

may otherwise have against the Bank and (2) releases the Bank from actions,

suits, claims, proceedings and demands related to the period of employment

and/or the termination of employment.

 

(c)           Change in Control.  Upon a Change of Control of the Bank and the

occurrence of any of the Qualifying Events described in Section 6(c)(i), the

Employee shall, in lieu of any salary and benefits described in Section 6(a)

and in lieu of any other severance pay or benefits to which the Employee may be

entitled under any severance or termination plan, program, practice or

arrangement of the Bank, be entitled to receive the salary and benefits

described in Section 6(c)(ii) (the “Severance Benefits”) on the terms as set

forth herein.  The Employee will not be

entitled to any benefits described under this Section 6(c) if his employment

terminates for the reasons specified in Sections 6(d), 6(e), 6(g), 6(h) or 6(i)

of this Agreement:

 

(i)            Qualifying Events.  Upon the occurrence of any one of the

following events within twenty four (24) calendar months after a Change of

Control of the Bank (a “Qualifying Event”), the Employee shall be entitled to

the Severance Benefits as described in Section 6(c)(ii):

 

5

 

(A)          an Involuntary Termination;

 

(B)           the failure or refusal of a successor

company (including, but not limited to, an individual, corporation,

association, or partnership) to assume the Bank’s obligations under this

Agreement; or

 

(C)           a material breach by the Bank or any

successor of any of the provisions of this Agreement, which continues following

written notice of such breach from the Employee and a reasonable opportunity of

at least fifteen (15) business days to cure.

 

In addition to

the foregoing Qualifying Events, a termination of the Employee’s employment by

the Bank pursuant to Section 6(a) will trigger the payment of the Severance

Benefits under this Agreement if the Employee’s employment is terminated by the

Bank during the Term pursuant to Section (a) within six months prior to a

Change of Control of the Bank and either (i) the termination was at the request

or direction of any person or entity who has entered into an agreement with the

Bank the consummation of which agreement would constitute a Change of Control,

or (ii) the Employee reasonably demonstrates that the termination is otherwise

in connection with or in anticipation of the Change of Control.  Further, if a Change of Control

of the Bank occurs prior to the expiration of the Term, the provisions of this

Section 6(c) shall continue in effect until the later of (i) the

expiration of the Term or (ii) a period of twenty–four (24) months

following the Change of Control.

 

(ii)           Severance Benefits.  Upon the occurrence of a Qualifying Event

described in Section 6(c)(i), the Employee shall be entitled to receive the

following Severance Benefits:

 

(A)          an amount equal to the Employee’s

annual Base Salary multiplied by 2.99;

 

(B)           an amount equal to $299,000

 

(C)           an amount equal to the Employee’s

Average Annual Bonus multiplied by 2.99. 

For purposes of this Section 6(c), “Average Annual Bonus” shall mean the

Employee’s actual average bonus earned over the three complete fiscal years

immediately prior to a Qualifying Event, or, if shorter, over the Employee’s

entire period of employment with the Bank or MidCity; provided, however, that

if the Employee’s period of employment is less than one (1) year, the Average

Annual Bonus shall be deemed to be zero;

 

(D)          immediate vesting and payment of the

Employee’s benefits, if allowed under the applicable plan document, if any,

under any and all non-qualified retirement plans of the Bank (or their

affiliates) in which the Employee participates;

 

(E)           continuation of the group term life

insurance (or, if the Bank is unable to provide such group term life insurance,

the Employee shall be permitted to convert such coverage to an individual

insurance policy) provided by the Bank at the same premium cost to the Employee

and at the same coverage level as in effect immediately prior to the Qualifying

Event until the third anniversary of the Qualifying Event, without regard to

the federal income tax consequences of that continuation; and

 

6

 

(F)           the health benefits on the terms as

specified in Section 6(f).

 

(G)           the opportunity to purchase the Key

Man Policy for its then cash surrender value and the Bank will transfer

ownership of the Principal Policy to the Employee at no cost (i.e., with no

obligation to pay the cash surrender value).

 

(iii)          Payment of Severance Benefits.  The Severance Benefits described in Sections

6(c)(ii)(A) and (B) will be paid in cash to the Employee in a single lump sum

as soon as practicable following the Qualifying Event, but in no event more

than thirty (30) days after the Qualifying Event, provided, however, that the

Employee executes the agreement described in Paragraph 6(b).

 

(iv)          Excise Tax.  If a Change of Control of the Bank occurs

and the Bank determines pursuant to Sections 280G and 4999 of the Code that a

golden parachute excise tax is due upon payment of the benefits described in

6(c)(ii), the Employee’s Severance Benefits under this Section 6(c) will be

reduced to such amount as is necessary to avoid the excise tax.  To achieve such reduction, the Employee

shall, subject to the Bank’s approval, which approval shall not be unreasonably

withheld, determine what amounts constituting the parachute payments shall be

reduced, eliminated, or postponed.  If the

Internal Revenue Service (the “Service”) adjusts the computation made by the

Bank pursuant to the preceding sentence, and that adjustment either is

acceptable to the Bank or is finally determined to be correct, so that the

Employee is liable for the payment of an excise tax under Sections 280G and

4999 of the Code, or so that the Employee does not receive the full benefit he

would have received in the absence of such adjustment, the Bank will reimburse

the Employee for the full amount necessary to make the Employee whole,

including the value of Severance Benefits that were erroneously limited, the

value of the excise tax, all corresponding interest and penalties due to the

Service, and the Employee’s Federal, State and local income tax due on these

reimbursement payments.

 

(d)           Termination for Cause.  In the event of Termination for Cause, the

Bank shall have no further obligation to the Employee under this Agreement

after the Date of Termination.

 

(e)           Voluntary Termination.  The Employee may terminate his employment

voluntarily (including his voluntary retirement or due to disability) at any

time by a notice pursuant to Section 7 of this Agreement.  Except as may be provided in Section 6(f) of

this Agreement, in the event that the Employee voluntarily terminates his

employment other than by reason of any of the actions that constitute

Involuntary Termination under Section 6(a) of this Agreement (“Voluntary

Termination”), the Bank shall be obligated to the Employee for the amount of

his Base Salary and benefits only through the Date of Termination, at the time

such payments are due (accrued vacation shall be payable within seven days

after the Date of Termination), and the Bank shall have no further obligation

to the Employee under this Agreement except a final annual bonus in an amount

consistent with the Bank’s year-end bonus practices, provided that the

Board of Directors shall determine the amount of such bonus in good faith at

the time of the Employee’s termination, which bonus shall be pro-rated taking into

consideration the portion of the year elapsed prior to termination, and the

Bank shall pay such bonus in cash on the Date of Termination, and in no event

shall such pro-rata bonus amount be less than the pro-rata amount of the

minimum bonus described in Section 4(c). 

In addition, the 

 

7

 

Employee shall be provided the

option of purchasing the Principal Policy and the Key Man Policy for each of

their respective cash surrender values. 

If the Employee’s employment with the Bank ends due to Voluntary

Termination, the Employee will not be entitled to receive Severance Benefits

under this Agreement, except as otherwise provided in Paragraph 6(f).

 

(f)            Health Benefits.  Notwithstanding any other provision of this

Agreement, upon cessation of the Employee’s service as an employee of the Bank

(or any successor) or any of its affiliates for any reason other than death or

Termination for Cause, the Bank (or any successor, directly or through its

affiliates) shall provide or make available to the Employee thereafter until

his sixty-fifth birthday or the current Medicare eligibility age, the same

health insurance, hospitalization, medical, dental, prescription drug and other

health benefits as he would have been eligible for if he had continued to serve

as an executive officer of the Bank (or any successor), for the benefit of

himself and his dependents and beneficiaries who would have been eligible for

such benefits if the Employee had continued to serve as an executive officer of

the Bank (or any successor), on terms as favorable to the Employee as to other

executive officers of the Bank (or any successor) from time to time, including

amounts of coverage and deductibles, provided  that the Employee

shall pay during the Term of this Agreement the same portion of the cost of

such benefits and insurance as he would pay if employed by the Bank (or a

successor) during the Term of this Agreement (even if his employment is

terminated during the Term) and the Employee shall pay the full cost of such

benefits and insurance after the Term of this Agreement ends; provided  further

that the Bank’s obligations under this Section 6(f) shall be reduced to

the extent that, and so long as, the Employee receives such benefits on no less

favorable terms from another employer. 

If, while the Employee is covered by the Bank’s health benefits pursuant

to this Section 6(f), the Employee dies or the Employee attains his sixty-fifth

birthday or the then current Medicare eligibility age, the Employee’s spouse

shall be entitled to continue such benefits until her 65th birthday

or the then current Medicare eligibility age. 

The Bank’s obligations under this Section 6(f) shall survive the Term of

this Agreement.  Commencing on the

Employee’s sixty-fifth birthday or the then current Medicare eligibility age,

and the Employee’s eligibility for Medicare Parts A and B, the Bank will

provide the Employee and his spouse with coverage under a Medicare Supplemental

Insurance plan and a long term care insurance plan obtained by the Bank for the

Employee and his spouse, provided, however, that the aggregate annual cost of

the premiums on such plans to be paid by the Bank shall not exceed $10,000.

 

(g)           Death.  In the event of the death of Employee during

the Term of this Agreement and prior to any termination of employment, the Bank

shall pay to the Employee’s estate, or such person as the Employee may have

previously designated in writing, the Base Salary which was not previously paid

to the Employee and which he would have earned if he had continued to be

employed under this Agreement through the last day of the calendar month in

which the Employee died, and a bonus (prorated in accordance with the portion

of the fiscal year expired as of the date of his death) in an amount consistent

with the Bank’s year-end bonus practices as determined by the Board of

Directors in good faith, which bonus shall be paid within 90 days after the

death of the Employee, and in no event shall such pro-rata bonus amount be less

than the pro-rata amount of the minimum bonus described in Section 4(c).

 

(h)           Disability.  If the Employee becomes entitled to benefits

under the terms of the then-current disability plan, if any, of the Bank (a

“Disability Plan”), he shall be entitled to 

 

8

 

receive such group and other

disability benefits, if any, as are then provided by the Bank for executive

officers.  In the event of such

disability, this Agreement shall not be suspended, except that (i) the Bank’s

obligation to pay the Base Salary to the Employee shall be reduced in

accordance with the amount of disability income benefits received by the

Employee, if any, pursuant to this Section 6(h) or the policies described in

Section 4(e)(i) such that on an after-tax basis, the Employee shall realize

from the sum of disability income benefits and a portion of the Base Salary (if

any) the same amount as he would realize on an after-tax basis from the Base

Salary if the Bank’s obligation to pay salary were not reduced pursuant to this

Section 6(h); and (ii) upon a resolution adopted by a majority of the

disinterested members of the Board of Directors, the Bank may discontinue

payment of the Base Salary beginning six months following a determination that

the Employee has become entitled to benefits under a Disability Plan or

otherwise unable to fulfill his duties under this Agreement.

 

(i)            Regulatory Action.  Notwithstanding any other provisions of this

Agreement, if the Employee is removed and/or permanently prohibited from

participating in the conduct of the Bank’s affairs by an order issued under

Section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S. C.

Section 1818(e)(4) and (g)(1), all obligations of the Bank under this Agreement

shall terminate as of the effective date of the order, but vested rights of the

parties shall not be affected.

 

7.             Notice of Termination.  Subject to the provisions of Section 1(e) of

this Agreement, in the event that the Bank desires to terminate the employment

of the Employee during the Term of this Agreement, the Bank shall deliver to

the Employee a written notice of termination, stating whether such termination

constitutes Termination for Cause or Involuntary Termination, setting forth in

reasonable detail the facts and circumstances that are the basis for the

termination, and specifying the date upon which employment shall terminate,

which date shall be at least 30 days after the date upon which the notice is

delivered, except in the case of Termination for Cause.  In the event that the Employee determines in

good faith that he has experienced an Involuntary Termination of his

employment, he shall send a written notice to the Bank stating the

circumstances that constitute such Involuntary Termination and the date upon

which his employment shall have ceased due to such Involuntary

Termination.  In the event that the

Employee desires to effect a Voluntary Termination, he shall deliver a written

notice to the Bank, stating the date upon which employment shall terminate,

which date shall be at least 90 days after the date upon which the notice is

delivered, unless the parties agree to a date sooner.

 

8.             Covenant Not to Compete.  The Employee agrees that his services are

special and unique, and of an unusual and extraordinary character which gives

them peculiar value for which monetary damages cannot provide adequate

compensation.  In consideration of the

Bank’s entering into this Agreement, the Employee hereby agrees that during the

Non-Compete Period (as defined below), he shall not without the prior written

consent of the Bank:

 

(1)                                  serve

as a director, officer, or employee of, or directly or indirectly, as a

consultant, independent contractor or otherwise, provide any personal services

to any institution insured by the Federal Deposit Insurance Corporation or any

affiliate of such an institution which institution or affiliate has an office

in Cook County, Illinois or adjacent counties in Illinois; or

 

9

 

(2)                                  solicit,

or directly or indirectly cause to be solicited, any employee of the Bank to

leave his or her employment; or

 

(3)                                  solicit,

or directly or indirectly cause to be solicited, customers of the Bank for the

purpose of offering loans or other financing services to such customers.

 

The term

“Non-Compete Period” shall mean (i) in the event of Termination for Cause, the

period of three years following the Date of Termination, (ii) in the event of

Involuntary Termination not following a Change in Control, the period of the

remaining Term of this Agreement, (iii) in the event of Involuntary Termination

following a Change in Control which occurs during the Term of this Agreement,

the period of the lesser of one year or the remaining Term of this Agreement,

(iv) in the event of Voluntary Termination not following a Change in Control,

the period of 18 months, and (v) in the event of Voluntary Termination

following a Change in Control which occurs during the Term of this Agreement,

the period of one year following the Date of Termination.  The provisions of this Section 8 shall

survive expiration of the Term of this Agreement.

 

If any

provision of this Section 8, as applied to any party or to any circumstances,

is adjudged by a court to be invalid or unenforceable, the same shall in no way

affect any other provision of this Section 8 or any other part of this

Agreement, the application of such provision in any other circumstances or the

validity or enforceability of this Agreement. 

If any such provision, or any part thereof, is held to be unenforceable

because of the duration of such provision or the area covered thereby, the

parties agree that the court making such determination shall have the power to

reduce the duration and/or area of such provision, and/or to delete specific words

or phrases, and in its reduced form such provision shall then be enforceable

and shall be enforced.  Upon breach of

any provision of this Section 8, the Bank shall be entitled to injunctive

relief, since the remedy at law would be inadequate and insufficient.  In addition, the Bank shall be entitled to

such damages as it can show it has sustained by reason of such breach.

 

9.             Attorneys’ Fees. The Bank

shall pay all legal fees and related expenses (including the costs of experts,

evidence and counsel) incurred by the Employee as a result of (i) the

Employee’s contesting or disputing any termination of employment, or (ii) the

Employee’s seeking to obtain or enforce any right or benefit provided by this

Agreement or by any other plan or arrangement maintained by the Bank (or any

successor) or an affiliate under which the Employee is or may be entitled to

receive benefits; provided that the Bank’s obligation to pay such fees

and expenses is subject to the Employee’s prevailing with respect to the

matters in dispute in any proceeding initiated by the Employee or the

Employee’s having been determined to have acted reasonably and in good faith

with respect to any proceeding initiated by the Bank.

 

10.           No Assignments Except by Operation

of Law in Certain Mergers.

 

(a)           This Agreement is personal to each of

the parties hereto, and neither may assign or delegate any of its rights or

obligations hereunder without first obtaining the written consent of the other

party except that, by operation of law in a merger in which the Bank is a party

but not the resulting entity, the Bank’s obligations may be assigned to and

assumed by the resulting entity of such a merger; provided, however, that the

Bank shall require any successor or 

 

10

 

assign (other than by operation

of law in a merger in which the Bank is a party but not the resulting entity)

by an assumption agreement in form and substance satisfactory to the Employee,

to expressly assume and agree to perform this Agreement in the same manner and

to the same extent that the Bank would be required to perform it if no such

succession or assignment had taken place. 

Failure of the Bank to obtain such an assumption agreement prior to the

effectiveness of any such succession or assignment shall be a breach of this

Agreement and shall entitle the Employee to compensation and benefits from the

Bank in the same amount and on the same terms as the compensation pursuant to

Section 6(a), Section 6(c) and Section 6(f) hereof.  For purposes of implementing the provisions of this Section 11,

the date on which any such succession becomes effective shall be deemed the

Date of Termination.

 

(b)           This Agreement and all rights of the

Employee hereunder shall inure to the benefit of and be enforceable by the

Employee’s personal and legal representatives, executors, administrators,

successors, heirs, distributees, devisees and legatees.

 

11.           Notice.  For the purposes of this Agreement, notices

and all other communications provided for in this Agreement shall be in writing

and shall be deemed to have been duly given when personally delivered or sent

by certified mail, return receipt requested, postage prepaid, to the Bank at

its home office, to the attention of the Board of Directors with a copy to the

Secretary of the Bank, or, if to the Employee, to such home or other address as

the Employee has most recently provided in writing to the Bank.

 

12.           Amendments.  No amendments or additions to this Agreement

shall be binding unless in writing and signed by both parties.

 

13.           Headings.  The headings used in this Agreement are

included solely for convenience and shall not affect, or be used in connection

with, the interpretation of this Agreement.

 

14.           Severability.  The provisions of this Agreement shall be deemed

severable and the invalidity or unenforceability of any provisions shall not

affect the validity or enforceability of the other provisions hereof.

 

15.           Governing Law.  This Agreement shall be governed by the laws

of the State of Illinois.

 

16.           Attorney’s Fees.  The Bank shall be solely responsible for

payment of any and all legal fees incurred by Employee in the preparation,

negotiation and execution of this Agreement.

 

11

 

17.           Successors to Code Sections.  All provisions of this Agreement referring

to sections of the U.S.C. (United State Code) or to the Internal Revenue Code

shall be deemed to refer to successor code sections in the event of renumbering

of code sections.

 

IN WITNESS

WHEREOF, the parties have executed this Agreement as of the day and year first

above written.

 

	

  Attest:

  	

   

  	

  MB Financial

  Bank, N.A.

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  /s/ Doria L.

  Koros

  	

   

  	

   

  	

   

  
	

  Secretary

  	

   

  	

  By:

  	

  /s/ Burton

  J. Field

  	

   

  
	

   

  	

   

  	

  Its:

  	

  President

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  EMPLOYEE:

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  /s/ Ronald

  Santo

  	

   

  
	

   

  	

   

  	

  Ronald Santo

  	

   

  
							

 

12Exhibit 10

Exhibit 10.9

 

ARNOLD E. DITRI

 

 

 

May

9, 2002

 

 

 

 

Mr. Robert Voelk

Chief Executive Officer

Omtool, Ltd

8 Industrial Way

Salem, NH 03079

 

 

 

Dear Bob,

 

                Outlined

below is the role that would best allow me to help you increase the overall

success and shareholder value for Omtool. I would plan to spend an average of

two days per month working with you on:

 

	

  •

  	

   

  	

  Corporate business and

  strategic development;

  
	

   

  	

   

  	

   

  
	

  •

  	

   

  	

  Advisory activities in the

  areas of Marketing and Sales; and

  
	

   

  	

   

  	

   

  
	

  •

  	

   

  	

  Consulting services with

  you and Omtool management.

  

 

                My

proactive involvement with the Company would also enable me to be a sounding

board on key senior management decisions and problems.

 

                As

we discussed, Bob, I normally bill at an hourly rate. My current rate will be

provided to you from time to time. My actual out of pocket expenses, while

minimal, would be billed separately. Services will be provided as agreed

mutually between Omtool and me.

 

                It

has been my experience, Bob, that building complete trust and open cooperation

between senior company managers and the Board of Directors is best achieved by

creating a strong common sense of winning. This proposal, I hope, will help me

work effectively with you and your Omtool team.

 

	

  Regards,

  
	

   

  
	

   

  
	

  /s/ Arnold E. Ditri

  

 

 

 

 

 

DITRI MANAGEMENT LLC, 2 WALSH LANE, GREENWICH, CT 06830 (203)

661-1701

FAX: (203) 622-0554 

E-MAIL: ARNOLDDITRI@AOL.COM

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]