Document:

EX-10.1

 Exhibit 10.1 

Execution Version 
 SETTLEMENT
AGREEMENT 
 This Settlement Agreement (the “Agreement”), dated as of September 23, 2020 (the “Agreement
Date”), is made between and among the Paragon Litigation Trust and Noble Corporation plc, Noble Corporation Holdings Ltd, Noble Corporation, Noble FDR Holdings Limited, Noble Holding International Limited, Noble Holding (U.S.) LLC, and
Noble International Finance Company (collectively, the “Noble Defendants”). These entities will be referred to collectively as “Parties,” and individually as a “Party.” 

WHEREAS, on July 31, 2020, the Noble Defendants and certain of their affiliates (the “Debtors”) filed voluntary petitions under chapter
11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”); 

WHEREAS, the Paragon Litigation Trust brought claims in the United States Bankruptcy Court for the District of Delaware (the “Delaware
Court”) in an action styled Paragon Litigation Trust v. Noble Corporation plc, et al., Adv. Proc. No. 17-51882 (the “Action”), asserting (i) claims against the Noble
Defendants and two other Noble affiliates for actual and constructive fraudulent transfer, debt recharacterization and unjust enrichment, and (ii) claims against certain current and former directors and/or officers of either Noble Corporation
plc or Paragon Offshore plc (the “D&O Defendants”) for breach of fiduciary duty and aiding and abetting breach of fiduciary duty, all of which are subject to indemnification agreements with Noble; 

WHEREAS, the Noble Defendants and the D&O Defendants deny the allegations asserted against them in the Action; 

WHEREAS, this Agreement is the result of the Parties’ good faith efforts to mediate their disputes with were led by former bankruptcy judge Kevin Gross
serving as mediator; 
 WHEREAS, the Parties desire to fully and finally settle the disputes among them in the Action on the terms set forth in this
Agreement and allow the Paragon Litigation Trust’s claims to proceed against the D&O Defendants in the Delaware Court; 
 WHEREAS, the Debtors will
seek approval by the Bankruptcy Court of their entry into this Agreement; 
 NOW THEREFORE, in exchange for certain consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties agree as follows: 
  

	1.	 Definitions. 

  

	 	1.1.	 “Allowed Paragon Claim” shall have the meaning ascribed to it in
Section 2.1 of the Agreement. 

  

	 	1.2.	 “Approval Motion” shall mean the motion filed with the Bankruptcy Court pursuant to Rule 9019
of the Federal Rules of Bankruptcy Procedure seeking approval of the Noble Defendants’ entry into the Agreement and the specific findings of fact and conclusions of law identified below in Section 6.1. 

	 	1.3.	 “Approval Order” shall mean the order entered by the Bankruptcy Court approving the Noble
Defendants’ entry into the Agreement. For the avoidance of doubt, the Approval Order need not include the specific findings of fact and conclusions of law identified in the second sentence of Section 6.1. 

 

	 	1.4.	 “Claims” shall mean any and all claims, cross-claims, causes of action, counterclaims,
actions, demands, damages, losses, attorneys’ fees, costs, expenses, and liabilities, of whatever nature, whether known or unknown, accrued or unaccrued, direct or indirect, at law or in equity, now existing or that might arise hereafter,
including, without limitation, any “claim” as defined in section 101 of the Bankruptcy Code. 

  

	 	1.5.	 “Covenant” shall have the meaning ascribed to it in Section 8.1.2 of
the Agreement. 

  

	 	1.6.	 “Delaware Dismissal Order” shall mean a joint motion and proposed order seeking the dismissal
of all Claims against all parties other than the D&O Defendants with prejudice, with each party to bear its own costs, expenses and attorneys’ fees. 

  

	 	1.7.	 “Dollar” shall mean United States Dollar. 

 

	 	1.8.	 “Effective Date” shall mean the date that the Bankruptcy Court enters the Approval Order (as
defined above) and such order becomes a final non-appealable order. 

  

	 	1.9.	 “Global Resolution” shall mean the full settlement and release of all claims brought by the
Paragon Litigation Trust against all of the defendants in the Action (including the Noble Defendants and the D&O Defendants), the Noble Defense Cost Claim (as defined below) and the Noble Indemnity Claim (as defined below).

  

	 	1.10.	 “Initial Payment” shall mean the payment made by Noble pursuant to
Section 2.2(a) or Section 2.2(b)(i) of this Agreement. 

  

	 	1.11.	 “Insurers” shall mean the insurers who issued the Insurance Policies. 

 

	 	1.12.	 “Insurance Policies” shall mean all of the D&O liability insurance policies issued by
various Insurers to Noble Corporation plc, as the named insured, for the policy period August 1, 2014 to August 1, 2024, which are listed on Appendix 1.  

 

	 	1.13.	 “Noble” shall mean Noble Corporation plc and its direct and indirect subsidiaries.

  

	 	1.14.	 “Noble Bankruptcy Proceedings” shall refer to the jointly administered Chapter 11 cases
associated with the lead case styled In re: Noble Corporation PLC, et al., Bankruptcy Case No. 20-33826 (DRJ), in the Bankruptcy Court. 

 

	 	1.15.	 “Noble Defense Cost Claim” shall mean any Claim against the Insurers for any amounts paid by
or on behalf of the Noble Defendants that are or may be covered under the Insurance Policies, in each case, relating to reasonable costs, expenses, 

  
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charges and fees incurred in defending or investigating the Paragon Litigation Trust’s Claims against the Noble Defendants and/or the D&O Defendants, including but not limited to
(a) legal fees and expenses; (b) expert, forensic auditor, consultant or witness fees and expenses; (c) mediator or arbitrator fees and expenses; (d) costs of attachment or similar bonds incurred in the investigation of or
defense of or appeal of any claim; (e) fees and expenses of any vendor or service provider, including, without limitation, any document vendor, electronic discovery vendor, database vendor, document review vendor, data recovery vendor, court
reporter or investigative service; or (f) other costs, charges, fees and expenses incurred in the defense, investigation, settlement or appeal of any of the Paragon Litigation Trust’s Claims. 

 

	 	1.16.	 “Noble Indemnity Claim” shall mean any Claim held by the Noble Defendants against the Insurers
or which may be paid under the Insurance Policies with respect to reimbursement of the Allowed Paragon Claim. 

  

	 	1.17.	 “Paragon Defense Cost Recovery” shall mean any amounts payable to the Paragon Litigation Trust
pursuant to Section 3.1 of the Agreement. 

  

	 	1.18.	 “Paragon Indemnity Recovery” shall mean any gross proceeds recovered by Noble from the
Insurers pursuant to the Noble Indemnity Claim that shall be paid to the Paragon Litigation Trust. 

  

	 	1.19.	 “Paragon Recovery Cap” shall mean eighty-five million Dollars (USD $85,000,000).

  

	 	1.20.	 “Plan” shall mean the Joint Plan of Reorganization of Noble Corporation plc and its Debtor
Affiliates, filed in the Bankruptcy Court on September 4, 2020 as Docket No. 259, as amended, modified, or supplemented from time to time. 

  

	 	1.21.	 “Subsequent Payments” shall mean any payments made by Noble to the Paragon Litigation Trust
pursuant to Section 2.2(b)(ii)
 and 2.2(b)(iii). 

  

	2.	 Allowed Paragon Claim. 

 

	 	2.1.	 The Claims asserted by the Paragon Litigation Trust against each of the Noble Defendants in the Action shall be
allowed as a prepetition unsecured claim in the Noble Bankruptcy Proceedings in the aggregate amount of $85 million (the “Allowed Paragon Claim”). The Allowed Paragon Claim shall not be subject to reconsideration under 11
U.S.C. § 502(j) or otherwise. 

  

	 	2.2.	 The Plan shall provide that the Allowed Paragon Claim shall be placed into its own class, which shall receive
the following treatment: (a) if a Global Resolution is reached on or before October 1, 2020, cash in the amount of ten million Dollars (USD $10,000,000); or, alternatively, (b) if a Global Resolution is not reached on or before
October 1, 2020, (i) cash in the amount of seven million five hundred thousand Dollars (USD $7,500,000), (ii) the Paragon Defense Cost Recovery, and (iii) the Paragon Indemnity Recovery. 

  
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	 	2.3.	 Notwithstanding anything to the contrary in this Agreement or in the Plan, aggregate payments from and/or on
behalf of the Noble Defendants to the Paragon Litigation Trust in respect of the Allowed Paragon Claim pursuant to this Agreement shall not exceed the Paragon Recovery Cap. For the avoidance of doubt, all recoveries from the Noble Defense Cost Claim
and the Noble Indemnity Claim in excess of the Paragon Recovery Cap shall be retained by Noble. 

  

	3.	 The Noble Defense Cost Claim. 

 

	 	3.1.	 Any recovery in respect of the Noble Defense Cost Claim shall be paid in accordance with the below waterfall:

  

	 	3.1.1.	 The first ten million Dollars (USD $10,000,000) in gross proceeds recovered from the Insurers shall be paid to
the Paragon Litigation Trust. 

  

	 	3.1.2.	 The next one million Dollars (USD $1,000,000) in gross proceeds recovered from the Insurers shall be retained
by Noble for reimbursement of Noble’s attorney’s fees, costs, and expenses incurred in connection with the prosecution of the Noble Defense Cost Claim and the Noble Indemnity Claim. To the extent that such fees, costs, and expenses do not
total one million Dollars (USD $1,000,000) at the conclusion of Noble Defense Cost Claim and the Noble Indemnity Claim, the excess shall flow through the waterfall pursuant to Section 3.1.3 and 3.1.4.

  

	 	3.1.3.	 The next fifteen million Dollars (USD $15,000,000) in gross proceeds recovered from the Insurers shall be paid
to Noble. 

  

	 	3.1.4.	 All recovery from the Insurers in respect of the Noble Defense Cost Claim in excess of the amounts set forth in
Section 3.1.1 through Section 3.1.3 shall be divided evenly between the Paragon Litigation Trust and Noble. 

 

	4.	 The Noble Indemnity Claim. Any gross proceeds recovered from the Insurers in respect of the Noble
Indemnity Claim (the Paragon Indemnity Recovery) shall be paid to the Paragon Litigation Trust. 

  

	5.	 Pursuit of Claims. Noble shall use commercially reasonable efforts to pursue and/or settle on
commercially reasonable terms the Noble Defense Cost Claim and the Noble Indemnity Claim, taking into consideration input from the Paragon Litigation Trust, the costs of continuing the litigation, the likelihood of success, and such other factors as
determined by the Parties. In no event shall the breach of this Section 5 (a) subject Noble to money damages, or (b) excuse the Paragon Litigation Trust’s performance pursuant to
Section 8.1 (which shall remain subject to the satisfaction of the Condition Precedent). The Bankruptcy Court shall retain jurisdiction to determine Noble’s compliance with this Section 5.
 

  

	6.	 Bankruptcy Court Approval / Timing of Payments. 

 

	 	6.1.	 As soon as reasonably practicable, and no later than fourteen (14) days after the Agreement Date, Noble
shall seek approval of its entry into this Agreement by 

  
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filing the Approval Motion with the Bankruptcy Court. The Approval Motion, or, if required, a separate adversary proceeding, shall seek a finding by the Bankruptcy Court that
Section 8.1 does not eliminate, relieve, or otherwise limit the Insurers’ obligations to Noble or the D&O Defendants or prejudice the rights of Noble or the D&O Defendants with respect to the Insurance
Policies. 

  

	 	6.2.	 If, pursuant to the Approval Order, the Bankruptcy Court determines that the payments in connection with this
Agreement may be made immediately, the Noble Defendants shall pay or cause to be paid to the Paragon Litigation Trust (a) the Initial Payment no later than ten (10) business days after the Effective Date, and (b) the Subsequent
Payments no later than ten (10) business days after such amounts are received by the Noble Defendants. 

  

	 	6.3.	 If, pursuant to the Approval Order, the Bankruptcy Court determines that all payments made pursuant to this
Agreement may be made only pursuant to a Plan, the Noble Defendants shall pay or cause to be paid to the Paragon Litigation Trust (a) the Initial Payment on or about the effective date of the Plan, and (b) the Subsequent Payments no later
than ten (10) business days after such amounts are received by the Noble Defendants. 

  

	7.	 Taxes. All taxes imposed as a result of this Agreement or the performance hereunder shall be paid by the
Party required to do so under applicable law. 

  

	8.	 Covenants of the Paragon Litigation Trust. 

 

	 	8.1.	 If the Paragon Litigation Trust receives, in aggregate, at least seventeen million and five hundred thousand
Dollars (USD $17,500,000) in respect of the Initial Payment, the Subsequent Payments, and/or from any other source excluding any insurance recoveries from the Action against the D&O Defendants (the “Condition Precedent”):

  

	 	8.1.1.	 the Paragon Litigation Trust shall limit its damages claim against the D&O Defendants to, and shall not
seek to recover from the D&O Defendants in excess of, two hundred million Dollars (USD $200,000,000) less (a) any amounts paid by the Insurers in connection with the Noble Defense Cost Claim and Noble Indemnity Claim, (b) fees, costs
and expenses incurred by the D&O Defendants in connection with the Action from and after the execution date of this Agreement, and (c) any other depletion of the insurance policy limits only to the extent any such depletion is expressly
permitted under the Insurance Policies. 

  

	 	8.1.2.	 the Paragon Litigation Trust covenants that any liability on account of Claims held against the D&O
Defendants shall be satisfied solely by and to the extent of any recovery from the Insurance Policies (the “Covenant”); provided that to the extent such Covenant is determined by the Bankruptcy Court or any other court or tribunal
of competent jurisdiction to in any way eliminate, relieve or otherwise limit the Insurers’ obligations to the Noble Defendants or the D&O Defendants or to prejudice the rights of the Noble Defendants or the D&O Defendants under the
Insurance Policies, the Covenant shall be null and void ab initio. 

  
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	 	8.2.	 In addition to, and without limiting Section 8.1, if Noble is actively pursuing in
good faith the Noble Defense Cost Claim or the Noble Indemnity Claim: (a) the Paragon Litigation Trust will not seek to collect any damages from the D&O Defendants individually, and (b) any judgment obtained by the Paragon Litigation
Trust shall provide that it is expressly subject to Section 8.1.1.  

  

	9.	 Actions in the Delaware Court 

 

	 	9.1.	 As soon as practicable after the Initial Payment is paid, and not later than five (5) business days thereafter,
the Parties shall direct their respective counsel to file with the Delaware Court in the Action the Delaware Dismissal Order, substantially in the form attached hereto as Exhibit A.  

 

	 	9.2.	 In accordance with the instructions delivered at the pre-trial
conference held on September 3, 2020, the trial in the Delaware Court against the D&O Defendants shall commence no earlier than November 30, 2020. 

 

	 	10.	 The Noble Bankruptcy Proceedings. 

 

	 	10.1.	 The Paragon Litigation Trust may file proofs of claim in the Noble Bankruptcy Proceedings, which the Paragon
Litigation Trust agrees shall be resolved in accordance with this Agreement. 

  

	 	10.2.	 The Paragon Litigation Trust shall not object to, delay, impede, or take any other action to interfere with,
delay, or postpone acceptance, confirmation, or implementation of the Plan, provided that such Plan is consistent with this Agreement in all respects, it being understood that the Plan filed by the Debtors in the Bankruptcy Court on
September 4, 2020 is consistent with this Agreement (subject to any modifications required by this Agreement and any other modifications that are not inconsistent with this Agreement). 

 

	 	10.3.	 As long as votes have been solicited in a manner that complies with the requirements of sections 1125 and 1126
of the Bankruptcy Code, the Paragon Litigation Trust shall vote its claim with respect to the Initial Payment and Subsequent Payments in favor of the Plan, and shall not change or withdraw such vote. 

 

	11.	 Mutual Releases. 

 

	 	11.1.	 The Paragon Litigation Trust, on behalf of itself and its current and former beneficiaries, representatives,
litigation trust management, attorneys, agents, partners, employees, trustees, representatives, predecessors, successors, and assigns, forever unconditionally and irrevocably releases, discharges, and holds harmless Noble, its current and former
direct and indirect subsidiaries and 

  
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divisions, and their respective representatives, advisors, investment banks, attorneys, agents, partners, officers, shareholders, directors, employees, customers, representatives, predecessors,
successors, assigns, and Affiliates – past, present, and future – from any and all Claims arising out of or based on any act or omission occurring from the beginning of time up to and including the Effective Date. Notwithstanding the
foregoing, nothing herein shall release (a) a Party from any obligation, promise, covenant, act, or agreement set forth in this Agreement; (b) any Claim that has been asserted against the D&O Defendants in the Action; and (c) the
Insurers. 

  

	 	11.2.	 Noble, on behalf of itself and its current and former beneficiaries, representatives, attorneys, agents,
partners, employees, trustees, representatives, predecessors, successors, and assigns, forever unconditionally and irrevocably releases, discharges, and holds harmless the Paragon Litigation Trust, its current and former direct and indirect
subsidiaries and divisions, and their respective representatives, advisors, investment banks, attorneys, agents, partners, officers, shareholders, directors, employees, customers, representatives, predecessors, successors, assigns, and Affiliates
– past, present, and future – from any and all Claims arising out of or based on any act or omission occurring from the beginning of time up to and including the Effective Date. Notwithstanding the foregoing, nothing herein shall release
(a) a Party from any obligation, promise, covenant, act, or agreement set forth in this Agreement; (b) any Claim that has been asserted against the D&O Defendants in the Action; and (c) the Insurers. 

 

	 	11.3.	 Each Party acknowledges and agrees that it intends to release and discharge the Claims set forth above,
irrespective of whether such Claims are known or unknown to any or all Parties, and irrespective of whether such Claims, if actually unknown to a Party, could or could not have been discovered by that Party through the exercise of reasonable
diligence. The Parties knowingly, voluntarily, intentionally, and expressly waive any and all rights and benefits under any and all laws (including but not limited to statutes, ordinances, administrative regulations, and principles of common law) of
any federal, state, province, territory, county, city, municipality, or any other political subdivision of the United States or any foreign country, that would restrict in any fashion the full scope of enforceability of the releases set forth in
this Section 11.  

  

	 	11.4.	 All rights under Section 1542 of the California Civil Code, or any analogous state or federal law, are
hereby expressly WAIVED by the Parties, if applicable, with respect to any of the claims, injuries, or damages described in the releases set forth in Section 11. Section 1542 of the California Civil Code reads as
follows: 

 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT
TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.” 

  
 7 

	12.	 Condition Precedent. The occurrence of the Effective Date shall be a condition precedent to the
effectiveness of this Agreement. 

  

	13.	 No Admission of Liability. Each Party acknowledges and agrees that this Agreement is a compromise
settlement that is not in any respect, for any purpose, to be deemed or construed to be an express or implied admission of any liability or wrongdoing in the Action or otherwise. 

 

	14.	 Representations and Warranties. 

 

	 	14.1.	 Noble represents and warrants that it is not aware of any Claims other than those related to or arising out of
the Action that have been or could be made under the Insurance Policies. 

  

	 	14.2.	 The Parties represent and warrant that they have the full right and power to grant the releases set forth in
this Agreement and have not sold, assigned, transferred, hypothecated, pledged, or encumbered, or otherwise disposed of, in whole or in part, voluntarily or involuntarily, any Claim released pursuant to this Agreement. 

 

	15.	 Further Assurances. The Parties agree to cooperate as reasonably necessary and to take all reasonable
steps to effectuate this Agreement and the termination of the Claims against the Noble Defendants in the Action in accordance with this Agreement. 

  

	16.	 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties,
their successors-in-interest, heirs and permitted assigns. For the avoidance of doubt, upon the effective date of the Plan, all of Noble Corporation plc’s rights
and obligations under this Agreement shall be assumed by Reorganized Parent (as defined in the Plan). 

  

	17.	 Integrated Agreement. This Agreement constitutes the entire understanding and contract between the
Parties with respect to the subject matter referred to herein. Any and all other representations, understandings, covenants, or agreements, whether oral, written, or implied, are merged into and superseded by the terms of this Agreement.

  

	18.	 No Oral Modifications. No provision of this Agreement can be waived, modified, amended, or supplemented
except in a writing that expressly references this Agreement and is signed by an authorized representative of each Party to be bound. 

  

	19.	 Notice. All notices that are required or that may be permitted to be given pursuant to the terms of this
Agreement shall be in writing and shall be sufficient in all respects if given in writing and delivered by courier, by facsimile, by email, by registered mail, and/or by certified mail, return receipt requested, as follows: 

If to the Paragon Litigation Trust: 

Tim Daileader 
 Chief Operating
Officer 
 Drivetrain, LLC 
 410
Park Avenue 
 Suite 900 
 New
York, NY 10022 
 E-mail: tdaileader@drivetrainllc.com 

  
 8 

 With copy to: 

Kirkland & Ellis LLP 

300 North LaSalle 
 Chicago, IL
60654 
 Attention: Jeffrey J. Zeiger 

Facsimile: (312) 862-2200 

E-mail: jzeiger@kirkland.com 

If to Noble: 
 Noble Corporation
plc 
 13135 Dairy Ashford, Suite 800 

Sugar Land, TX 77478 
 Attention:
William Turcotte, General Counsel 
 With copies to: 

Skadden, Arps, Slate, Meagher & Flom LLP 

155 N. Wacker Drive 
 Chicago, IL
60606 
 Attention: George Panagakis 

Facsimile: (312) 407-8586 

E-mail: george.panagakis@skadden.com 

and 
 Skadden, Arps, Slate,
Meagher & Flom LLP 
 One Manhattan West 

New York, NY 10001 
 Attention:
George Zimmerman 
 Facsimile: (917) 777-2047 

E-mail: george.zimmerman@skadden.com 

Any such notices shall be effective upon receipt by the listed addressees. The Parties may change their addresses for notice purposes by
sending a notice of such changes to the other Parties in accordance with the terms of this Section. 
  

	20.	 Independent Advice. Each Party warrants and represents that it has received independent legal advice
from such Party’s attorney with respect to the rights and obligations arising from, and the advisability of executing, this Agreement. 

  
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	21.	 Construction of Ambiguities. Because all Parties have participated in drafting, reviewing and editing
the language of this Agreement, no presumption for or against any Party arising out of drafting all or any part of this contract shall be applied in any action whatsoever. 

 

	22.	 Headings. The subject headings used in this Agreement are included for purposes of convenience only and
shall not affect the construction or interpretation of any provisions of this document. 

  

	23.	 Execution. This Agreement may be executed and delivered in any number of counterparts. When each Party
has signed and delivered at least one counterpart to all other Parties, each counterpart shall be deemed an original and all counterparts, taken together, shall constitute one and the same agreement, which shall be binding and effective on the
Parties hereto in accordance with the terms of this Agreement as of the date the counterparts are delivered; electronic delivery is acceptable to all Parties. This Agreement may be executed using electronic signatures and exchanged via electronic
means, with the same force and effect as original signatures for all purposes. 

  

	24.	 Enforceability. When effective under the conditions and other terms of this Agreement, this Agreement
shall be valid and binding upon the Parties, and shall be fully enforceable against each of them, in accordance with its terms. Any person executing this Agreement on behalf of any Party hereto does hereby personally represent and warrant to the
other Party or Parties that he/she has the authority to execute this Agreement on behalf of, and fully bind, such Party or, in the case of the Noble Defendants, will have such authority upon entry of the Approval Order. 

 

	25.	 Governing Law. This Agreement shall be governed by, and interpreted, construed, and enforced in
accordance with, the laws of the State of New York. 

  

	26.	 Third-Party Beneficiaries. The D&O Defendants, Noble Holding International (Luxembourg) S.à
r.l., and Noble Holding International (Luxembourg NHIL) S.à r.l. are third-party beneficiaries of this Agreement. Other than the persons and entities referred to in the immediately preceding sentence, there are no third-party beneficiaries of
this Agreement, and, for the avoidance of doubt, this Agreement is not intended to benefit, or discharge any duties and obligations otherwise binding upon the Insurers by the terms and conditions of the Insurance Policies. 

 

	27.	 Retention of Jurisdiction and Choice of Venue. Any dispute arising from or related to this Agreement
shall be decided solely and exclusively by the Bankruptcy Court, which shall retain exclusive jurisdiction to hear and determine such dispute. To the extent the Bankruptcy Court determines that it is unable or unwilling to exercise jurisdiction over
any such dispute, such dispute shall be decided by the United States District Court for the Southern District of Texas, or if such court determines that it is unable or unwilling to exercise jurisdiction over any such dispute, such dispute shall be
brought to a state court located in the Borough of Manhattan, New York and the Parties shall endeavor to have this matter heard by and/or transferred to the Supreme Court, Commercial Division. The Parties consent to the entry of a final judgment by
the Bankruptcy Court in any dispute with respect to the interpretation or enforcement of this Agreement and waive any objections thereto under Article III of the United States Constitution and section 157 of title 28 of the United State Code. The
Parties waive their right to a jury trial in connection with any dispute related to or arising out of this Agreement. 

  
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	 	28.	 Severability. If any provision of this Agreement is unenforceable, such provision will be changed and
interpreted to accomplish the objectives of such provision to the greatest extent possible under applicable law and the remaining provisions will continue in full force and effect. To the extent that any provision of this Agreement is held
unenforceable and is not so reformed, the Parties agree to negotiate in good faith an enforceable substitute provision for any invalid or unenforceable provision that most nearly achieves the intent of such provision. 

[Remainder of Page Intentionally Left Blank] 

  
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 Each of the Parties hereby agrees to this Agreement on the date set forth below: 

 

									
	Paragon Litigation Trust	 		 	Noble Corporation Holdings Ltd
			
	/s/ Alan J. Carr	 		 	/s/ Brad A. Baldwin
	By:	 	Alan J. Carr	 		 	By:	 	Brad A. Baldwin
	Title:	 	Litigation Trust Management	 		 	Title:	 	Director
	Date:	 	September 23, 2020	 		 	Date:	 	22 September 2020
			
	Noble Corporation plc	 		 	Noble Holding International Limited
			
	/s/ Robert W. Eifler	 		 	/s/ Brad A. Baldwin
	By:	 	Robert W. Eifler	 		 	By:	 	Brad A. Baldwin
	Title:	 	President & CEO	 		 	Title:	 	Director
	Date:	 	9/22/2020	 		 	Date:	 	22 September 2020
			
	Noble Corporation	 		 	Noble International Finance Company
			
	/s/ Brad A. Baldwin	 		 	/s/ Brad A. Baldwin
	By:	 	Brad A. Baldwin	 		 	By:	 	Brad A. Baldwin
	Title:	 	Director	 		 	Title:	 	Director
	Date:	 	22 September 2020	 		 	Date:	 	22 September 2020
				
	Noble FDR Holdings Limited	 		 		 	
				
	/s/ Brad A. Baldwin	 		 		 	
	By:	 	Brad A. Baldwin	 		 		 	
	Title:	 	Director	 		 		 	
	Date:	 	22 September 2020	 		 		 	
				
	Noble Holding (U.S.) LLC	 		 		 	
				
	/s/ Laura D. Campbell	 		 		 	
	By:	 	Laura D. Campbell	 		 		 	
	Title:	 	President	 		 		 	
	Date:	 	September 22, 2020	 		 		 	

  
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 Exhibit A 

IN THE UNITED STATES BANKRUPTCY COURT 

FOR THE DISTRICT OF DELAWARE 
  

			
	 In re

 
 PARAGON OFFSHORE PLC,

 
 Debtor.
	  	 Chapter 11
  

Bankr. Case No. 16-10386 (CSS)

	 	
	 PARAGON LITIGATION TRUST,

 
 Plaintiff,

 
 v.

 
 NOBLE CORPORATION PLC, NOBLE CORPORATION HOLDINGS LTD, NOBLE CORPORATION, NOBLE HOLDING
INTERNATIONAL (LUXEMBOURG) S.à r.l., NOBLE HOLDING INTERNATIONAL (LUXEMBOURG NHIL) S.à r.l., NOBLE FDR HOLDINGS LIMITED, NOBLE HOLDING INTERNATIONAL LIMITED, NOBLE HOLDING (U.S.) LLC, NOBLE INTERNATIONAL FINANCE COMPANY, MICHAEL A. CAWLEY,
JULIE H. EDWARDS, GORDON T. HALL, JON A. MARSHALL, JAMES A. MACLENNAN, MARY P. RICCIARDELLO, JULIE J. ROBERTSON, and DAVID WILLIAMS,
  

Defendants.
	  	Adv. Proc. No. 17-51882 (CSS)

 ORDER 

Upon consideration of the Settlement Agreement between the Paragon Litigation Trust (the “Trust”) and Noble Corporation plc
(“Noble”), Noble Corporation Holdings Ltd. (“Noble Holdings Cayman”), Noble Corporation (“Noble Cayman”), Noble FDR Holdings Limited (“FDR”), Noble Holding International Limited (“NHIL Cayman”),
Noble Holding U.S. 

 
LLC (“Noble Holding U.S.”), and Noble International Finance Company (“Noble International,”), it is hereby ordered that the Trust’s claims against Noble, Noble Holdings
Cayman, Noble Cayman, FDR, NHIL Cayman, Noble Holding U.S., Noble International, Noble Holding International (Luxembourg) S.à.r.l. (“NHIL 1”), and Noble Holding International (Luxembourg NHIL) S.à.r.l. (“NHIL 2”,
together with Noble, Noble Holdings Cayman, Noble Cayman, FDR, NHIL Cayman, Noble Holding U.S., Noble International, and NHIL 1, the “Corporate Defendants”) asserted in Counts I – V and VIII of the First Amended Complaint are
dismissed with prejudice. The Trust and the Corporate Defendants shall bear their own attorneys’ fees and costs. 

  
 2vabk-ex101_7.htm

 

Exhibit 10.1

 

 

FORM OF AMENDED AND RESTATED MANAGEMENT CONTINUITY AGREEMENT

 

This Amended and Restated Management Continuity Agreement, dated as of September 28, 2020 (“Agreement”), by and between Virginia National Bankshares Corporation, a Virginia corporation (the “Company”), and ____________ (the “Executive”), supersedes and amends and restates in its entirety that certain Management Continuity Agreement, dated as of March 2, 2017, by and between the Company and the Executive.

 

1.Purpose

 

The Company recognizes that the possibility of a Change in Control exists and the uncertainty and questions that it may raise among management may result in the departure or distraction of management personnel to the detriment of the Company and its shareholders.  Accordingly, the purpose of this Agreement is to encourage the Executive to continue employment with the Company and/or its affiliates or successors in interest by merger or acquisition after a Change in Control by providing reasonable employment security to the Executive and to recognize the prior service of the Executive in the event of a termination of employment under certain circumstances after a Change in Control.

 

2.Term of the Agreement

 

The term of this Agreement is effective on September 28, 2020 (the “Effective Date”) and will continue until December 31, 2021; provided however, that on December 31, 2020 and each December 31st thereafter (each such December 31st referred to as the “Renewal Date”), this Agreement will be automatically extended for an additional calendar year so as to terminate two (2) years from such Renewal Date. The Agreement will not, however, be extended if the Company gives the Executive written notice of such non-renewal before the Renewal Date (the initial and any extended term of this Agreement is referred to as the “Change in Control Period”). 

 

3.Employment after a Change in Control

 

If a Change in Control of the Company, as defined in Section 12(a), occurs during the Change in Control Period and the Executive is employed by the Company on the date the Change in Control occurs (the “Change in Control Date”), the Company will continue to employ the Executive in accordance with the terms and conditions of this Agreement for the period beginning on the Change in Control Date and ending on the second anniversary of such date (the “Employment Period”).  If a Change in Control occurs on account of a series of transactions, the Change in Control Date is the date of the last of such transactions.

4.Terms of Employment

 

(a)Position and Duties.  During the Employment Period, (i) the Executive’s position, position title, authority, reporting structure, duties and responsibilities will be  the same in all material respects with the most significant of those held, exercised and assigned to the Executive by the Company at any time during the twelve (12) month period immediately preceding the Change in Control Date and (ii) the Executive’s services will be performed at either the location where the Executive was performing his services immediately preceding the Change in Control Date or any office that is the headquarters of the Company prior to the Change in Control and is less than thirty-miles (30) miles from such location.

 

(b)Compensation. 

 

(i)Base Salary.  During the Employment Period, the Executive will receive an annual base salary (the “Annual Base Salary”) at least equal to the highest base annualized salary paid or payable to the Executive by the Company and its affiliated companies during the twelve (12) month period immediately preceding the Change of Control Date.  During the Employment Period, the Annual Base Salary will be reviewed at least annually and will be increased at any time and from time to time as will be substantially consistent with increases in base salary generally awarded in the ordinary course of business to other peer executives of the Company and its affiliated companies, but may not be decreased. Any increase in the Annual Base Salary will not serve to limit or reduce any other obligation to the Executive under this Agreement.  The Annual Base Salary will not be reduced after any such increase, and the term Annual Base Salary as used in this Agreement will refer to the Annual Base Salary as so increased.  The term “affiliated companies” includes any company controlled by, controlling or under common control with the Company during the twelve (12) months immediately preceding the Change of Control Period.

 

(ii)Annual Bonus.  In addition to the Annual Base Salary, the Executive will be awarded for each year ending during the Employment Period and for which the Executive is employed on the last day of the year an annual bonus (the “Annual Bonus”) in one lump sum cash payment at least equal to the average annual bonus paid or payable, including by reason of any deferral, for the two (2) years immediately preceding the year in which the Change in Control Date occurs.  Each such Annual Bonus will be paid no later than two and one-half (2 1⁄2) months after the end of the year for which the Annual Bonus is awarded.

 

(iii)Incentive, Savings and Retirement Plans.  During the Employment Period, the Executive will be entitled to participate in all incentive (including stock incentive), savings and retirement, insurance plans, policies and programs applicable generally to other peer executives of the Company and its affiliated companies, but in no event will such plans, policies and programs provide the Executive with incentive opportunities, savings opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate, than those provided by the Company and its affiliated 

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companies for the Executive under such plans, policies and programs as in effect at any time during the twelve  (12) months immediately preceding the Change in Control Date.

 

(iv)Welfare Benefit Plans.  During the Employment Period, the Executive and/or the Executive’s family, as the case may be, will be eligible for participation in and will receive all benefits under welfare benefit plans, policies and programs provided by the Company and its affiliated companies to the extent applicable generally to other peer executives of the Company and its affiliated companies, but in no event will such plans, policies and programs provide the Executive with benefits that are less favorable, in the aggregate, than the most favorable of such plans, policies and programs in effect at any time during the twelve (12) months immediately preceding the Change in Control Date.

 

(v)Fringe Benefits.  During the Employment Period, the Executive will be entitled to fringe benefits in accordance with the most favorable plans, policies and programs of the Company and its affiliated companies in effect for the Executive at any time during the twelve  (12) months immediately preceding the Change in Control Date or, if more favorable to the Executive, as in effect generally from time to time after the Change in Control Date with respect to other peer executives of the Company and its affiliated companies.

 

(vi)Paid Time Off.  During the Employment Period, the Executive will be entitled to paid time off in accordance with the most favorable plans, policies and programs of the Company and its affiliated companies in effect for the Executive at any time during the twelve (12) months immediately preceding the Change in Control Date or, if more favorable to the Executive, as in effect generally from time to time after the Change in Control Date with respect to other peer executives of the Company and its affiliated companies.

 

5.Termination of Employment Following a Change in Control

 

(a)Death or Disability.  The Executive’s employment will terminate automatically upon the Executive’s death during the Employment Period.  If the Company determines in good faith that a Disability of the Executive has occurred during the Employment Period, it may terminate the Executive’s employment.  For purposes of this Agreement, “Disability” means the Executive’s inability to perform the essential functions of his/her position with the Company on a full time basis for one hundred eighty (180) consecutive days or a total of at least two hundred forty (240) days in any twelve (12) month period as a result of the Executive’s incapacity due to physical or mental illness (as determined by an independent physician selected by the Board of Directors of the Company (sometimes referred to herein as the “Board”)).

 

(b)Cause.  The Company may terminate the Executive’s employment during the Employment Period for Cause.  For purposes of this Agreement, “Cause” means (i) gross incompetence, gross negligence, or willful misconduct in connection with the performance of the Executive’s duties or breach of a fiduciary duty owed to the Company or any affiliated company; 

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(ii) conviction of or entering of a guilty plea or a plea of no contest with respect to a felony or a crime of moral turpitude or commission of an act of embezzlement or fraud against the Company or any affiliated company; (iii) any material breach by the Executive of a material term of this Agreement, including, without limitation, material failure to perform a substantial portion of his/her duties and responsibilities hereunder; or (iv) deliberate dishonesty of the Executive with respect to the Company or any affiliated company. 

 

(c)Good Reason.  The Executive’s employment may be terminated during the Employment Period by the Executive for Good Reason. The Executive must provide written notice to the Company of the existence of the event or condition constituting such Good Reason within one hundred and twenty (120) days of the Executive becoming aware of the event or condition alleged to constitute Good Reason.  Upon delivery of such notice by the Executive, the Company shall have a period of thirty (30) days during which it may remedy in good faith the event or condition constituting Good Reason, to the Executive’s satisfaction and the Executive’s employment shall continue in effect during the thirty (30) day period.  In the event the Company shall remedy in good faith the event or condition constituting Good Reason, then such notice of termination shall be null and void, and the Company shall not be required to pay the amount due to the Executive under Section 6(a).  If the Company has not remedied the event or condition constituting Good Reason during the thirty (30) day cure period and the Executive does not terminate his/her employment for Good Reason within ninety (90) days thereafter by providing the Company with a Notice of Termination (as such term is defined herein), then the Executive will deemed to have waived his/her right to terminate for Good Reason with respect to such grounds.  

 

For purposes of this Agreement, “Good Reason” means:

 

(i)a material reduction in the Executive’s duties or authority or any of the employment characteristics as described in Section 4(a);

 

(ii)a failure by the Company to comply with any of the provisions of Section 4(b);

 

(iii)the Company’s requiring the Executive to be based at any office or location other than that described in Section 4(a)(ii);

 

(iv)the failure by the Company to comply with and satisfy Section 7(b); or

 

(v)the Company fails to honor any term or provision of this Agreement.

 

Notwithstanding the foregoing, Good Reason shall not include any resignation by the Executive where Cause for the Executive’s termination by the Company exists. 

 

(d)Notice of Termination.  Any termination during the Employment Period by the Company or by the Executive for Good Reason shall be communicated by written Notice 

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of Termination to the other party hereto.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon.

(e)Date of Termination.  “Date of Termination” means (i) if the Executive’s employment is terminated by the Company for Cause, or by the Executive for Good Reason, the date of receipt of the Notice of Termination or any later date specified therein, as the case may be, (ii) if the Executive’s employment is terminated by the Company other than for Cause or Disability, the date specified in the Notice of Termination (which shall not be less than thirty (30) nor more than sixty (60) days from the date such Notice of Termination is given unless the Executive otherwise agrees), and (iii) if the Executive’s employment is terminated for Disability, thirty (30) days after Notice of Termination is given, provided that the Executive shall not have returned to the full-time performance of his/her duties during such thirty (30) day period.

 

(f)Resignation of All Other Positions.  Effective upon the termination of the Executive’s employment for any reason, the Executive shall be deemed to have resigned from all positions the Executive holds as an officer or member of the Board of Directors (or a committee thereof) of the Company or any of its affiliates.

 

6.Compensation Upon Termination

 

(a)Termination Without Cause or for Good Reason.  In the event the Executive’s employment with the Company terminates or is terminated during (i) the six (6) months immediately preceding a Change in Control, or (ii) during the Employment Period, unless such termination in either case is or was (A) by the Company for Cause or (B) by the Executive other than for Good Reason, the Executive shall be entitled to the following benefits; provided with respect to the payments set forth in paragraphs (ii), (iii) and (iv) below, the Executive (or the legal representative of the Executive or the Executive’s estate) signs a release and waiver of claims in favor of the Company, its affiliates and their respective officers and directors in the form attached hereto as Attachment A, and such release has become effective (the “Release”) (for avoidance of doubt, no release is required in connection with the payments set forth in paragraph (i) below).

 

(i)Accrued Obligations.  The Accrued Obligations are the sum of:  (1) the Executive’s Annual Base Salary through the Date of Termination at the rate in effect just prior to the time a Notice of Termination is given;  (2) the amount, if any, of any incentive or bonus compensation theretofore earned which has not yet been paid;  (3) the product of the Annual Bonus paid or payable, including by reason of deferral, for the most recently completed year and a fraction, the numerator of which is the number of days in the current year through the Date of Termination and the denominator of which is 365; and (4) any benefits or awards (including both the cash and stock components) which pursuant to the terms of any plans, policies or programs have been earned or become payable, but which have not yet been paid to the Executive (but not including amounts that previously had been deferred at the Executive’s request, which amounts will be paid in accordance with the Executive’s existing directions).  The Accrued Obligations will be paid to the Executive in a lump sum cash payment within ten (10) days after the Date of Termination;

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(ii)Salary Continuance Benefit.  The Salary Continuance Benefit is an amount equal to two (2) times the Executive’s Final Compensation.  For purposes of this Agreement, “Final Compensation” means the Annual Base Salary in effect at the Date of Termination, plus an amount equal to the average Annual Bonus paid or payable for the two (2) most recently completed years and any amounts contributed by the Executive during the most recently completed year pursuant to a salary reduction agreement or any other program that provides for pre-tax salary reductions or compensation deferrals.   The Salary Continuance Benefit will be paid to the Executive in a lump sum cash payment on the first regular payroll date following the sixtieth (60th) day after the Date of Termination, provided that on or before such date the Release has been executed and any period in which the Executive may revoke such Release has expired, without such Release having been revoked; and 

 

(iii)Welfare Continuance Benefit.  For eighteen (18) months following the Date of Termination, the Executive and his/her eligible dependents will continue to be covered under all health and dental plans, disability plans, life insurance plans (including split dollar endorsement agreements related to Bank Owned Life Insurance policies), and all other welfare benefit plans (as defined in Section 3(1) of the Employee Retirement Income Security Act) (“Welfare Plans”) in which the Executive and his/her dependents were participating immediately prior to the Date of Termination (the “Welfare Continuance Benefit”) to the extent permissible under the terms of the respective Welfare Plans and applicable law.  Health and medical coverage will be provided under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”).  The Executive will pay only that portion of the COBRA premiums that he was paying as an active employee prior to the Date of Termination.  The Company will pay any additional premium costs.  Notwithstanding the foregoing, the Welfare Continuance Benefit as to any Welfare Plan will cease if and when the Executive has obtained coverage under one or more welfare benefit plans of a subsequent employer that provides for substantially equal or greater benefits to the Executive and his/her dependents with respect to the specific type of benefit; and

 

(iv)401(k) Contributions.  A lump sum cash payment equal to the total contributions made by the Company to the Executive’s account in the Company sponsored 401(k) retirement savings plan during the two-year period prior to termination of employment.  This payment will be paid to the Executive on the first regular payroll date following the 60th day after the Date of Termination, provided that on or before such date the Release has been executed and any period in which the Executive may revoke such Release has expired, without such Release having been revoked.

 

(b)Death.  If the Executive dies during the Employment Period while employed, this Agreement will terminate without any further obligation on the part of the Company under this Agreement, other than for (i) payment of the Accrued Obligations (which shall be paid to the Executive’s beneficiary designated in writing or his/her estate, as applicable, in a lump sum cash payment within thirty (30) days of the date of death); (ii) the timely payment of the Welfare Continuance Benefit to the Executive’s spouse and other dependents; and (iii) the timely payment of all death and retirement benefits pursuant to the terms of any plan, policy or 

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arrangement of the Company and its affiliated companies. If the Executive dies after the Date of Termination, but prior to the expiration of the Welfare Continuance Benefit period, the Executive’s spouse and other dependents will be entitled to the remaining payment of the Welfare Continuance Benefit due to the Executive under Section 6(a)(iii).

 

(c)Disability.  If the Executive’s employment is terminated because of the Executive’s Disability during the Employment Period, this Agreement will terminate without any further obligation on the part of the Company under this Agreement, other than for (i) payment of the Accrued Obligations (which shall be paid to the Executive in a lump sum cash payment within thirty (30) days of the Date of Termination; (ii) the timely payment of the Welfare Continuance Benefit; and (iii) the timely payment of all disability and retirement benefits pursuant to the terms of any plan, policy or arrangement of the Company and its affiliated companies. 

 

(d)Cause; Other than for Good Reason.  If the Executive’s employment is terminated for Cause during the Employment Period, this Agreement will terminate without further obligation to the Executive other than the payment to the Executive of the Annual Base Salary through the Date of Termination, plus the amount of any compensation previously deferred by the Executive.  If the Executive terminates employment during the Employment Period, excluding a termination for Good Reason, this Agreement will terminate without further obligation to the Executive other than for the Accrued Obligations (which will be paid in a lump sum in cash within thirty (30) days of the Date of Termination) and any other benefits to which the Executive may be entitled pursuant to the terms of any plan, program or arrangement of the Company and its affiliated companies.

 

(e)Potential Limitation of Payments and Benefits.  

 

(i)Subject to subsection (ii) below, in the event that the aggregate value of the payments and benefits to which the Executive may be entitled under this Agreement or any other agreement, plan, program or arrangement in connection with a Change in Control (the “Change in Control Termination Benefits”) would subject the Executive to the excise tax (the “Excise Tax”) imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), then the Change in Control Termination Benefits shall be reduced in a manner determined by the Company (by the minimum possible amount) that is consistent with the requirements of Section 409A of the Code until no amount or benefit payable to the Executive will be subject to the Excise Tax. 

 

(ii)Notwithstanding the foregoing, no reduction in the Change in Control Termination Benefits shall be made if the Executive’s Net After-Tax Benefit (as defined below) assuming such reduction was not made exceeds by $25,000 or more of the Executive’s Net After-Tax Benefit assuming such reduction was made.

 

(iii)“Net After-Tax Benefit” shall mean the amount of the Change in Control Termination Benefits which the Executive receives or is then entitled to receive, 

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less the amount of all applicable taxes payable by the Executive with respect to the Change in Control Termination Benefits, including any Excise Tax.

 

(iv)All calculations and determinations under this Section 6(e) shall be made by an independent accounting firm or independent tax counsel appointed by the Company (the “Tax Advisor”) whose determinations shall be conclusive and binding on the Company and the Executive for all purposes.  The Tax Advisor may rely on reasonable, good faith assumptions and approximations concerning the application of Section 280G and Section 4999 of the Code.  The Company shall bear all costs of the Tax Advisor.

 

7.Binding Agreement; Successors

 

(a)This Agreement will be binding upon and inure to the benefit of the Executive (and his/her personal representative), the Company and any successor organization or organizations which shall succeed to substantially all of the business and property of the Company, whether by means of merger, consolidation, acquisition of all or substantially of all of the assets of the Company or otherwise, including by operation of law.

 

(b)The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly 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.

 

(c)For purposes of this Agreement, the term “Company” includes any subsidiaries of the Company and any corporation or other entity which is the surviving or continuing entity in respect of any merger, consolidation or form of business combination in which the Company ceases to exist; provided, however, that for purposes of determining whether a Change in Control has occurred herein, the term “Company” refers to Virginia National Bankshares Corporation or its successors.

 

8.Fees and Expenses; Mitigation

 

(a) The Company will pay or reimburse the Executive for all costs and expenses, including, without limitation, court costs and reasonable attorneys’ fees, incurred by the Executive at any time after the Effective Date (i) in the Company’s contesting or disputing any termination of the Executive’s employment hereunder or (ii) in the Company’s seeking to obtain or enforce any right or benefit provided by this Agreement, in each case provided the Executive is the prevailing party in a proceeding brought in a court of competent jurisdiction.  The Company shall reimburse the foregoing costs and expenses (but no more than 30 days) after the Executive submits a claim for reimbursement with proper documentation of the costs and expenses.  

 

(b)The Executive shall not be required to mitigate the amount of any payment the Company becomes obligated to make to the Executive in connection with this Agreement, by 

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seeking other employment or otherwise.  The amount of any payment provided for in Section 6 shall not be reduced, offset or subject to recovery by the Company by reason of any compensation earned by the Executive as the result of employment by another employer after the Date of Termination, or otherwise.

 

9.No Employment Contract

 

Nothing in this Agreement will be construed as creating an employment contract between the Executive and the Company prior to a Change in Control.

 

10.Survival of Certain Restrictive Covenants

 

Section 7 of the Revised Non-Disclosure, Non-Solicitation and Non-Competition Agreement dated as of May 18, 2020, between the Company and the Executive (the “Loyalty Agreement”) with respect to the Executive’s covenants concerning non-competition will not apply to the Executive after the Executive ceases to be employed by the Company following a Change in Control, unless the Executive is entitled to receive any severance benefits provided for in Section 6(a) of this Agreement in connection with the termination of his/her employment without Cause or for Good Reason in which case the restrictions imposed by Section 7 in the Loyalty Agreement will continue to apply.  The non-disclosure, customer non-solicitation, customer non-service, customer non-interference and employee non-solicitation restrictions in Sections 2 through 6 of the Loyalty Agreement  together with the other provisions of the Loyalty Agreement, except to the extent Section 7 of the Loyalty Agreement may not apply as provided above, will survive the termination of the Executive’s employment and are incorporated into and made a part of this Agreement as though the Loyalty Agreement was set forth in full in this Agreement.

 

11.Notice

 

Any notices and other communications provided for by this Agreement will be sufficient if in writing and delivered in person, or sent by registered or certified mail, postage prepaid (in which case notice will be deemed to have been given on the third day after mailing), or by overnight delivery by a reliable overnight courier service (in which case notice will be deemed to have been given on the day after delivery to such courier service).  Notices to the Company shall be directed to the Secretary of the Company, with a copy directed to the Chairman of the Board of the Company.  Notices to the Executive shall be directed to his/her last known address.

 

12.Definition of a Change in Control

 

(a)No benefits shall be payable hereunder unless there shall have been a Change in Control of the Company as set forth below.  For purposes of this Agreement, a “Change in Control” means:

 

(i)The acquisition by any Person of beneficial ownership of thirty percent (30%) or more of the then outstanding shares of common stock of the Company, 

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provided that an acquisition directly from the Company (excluding an acquisition by virtue of the exercise of a conversion privilege) shall not constitute a Change in Control;

 

(ii)Individuals who constitute the Board on the date of this Agreement (the “Incumbent Board”) cease to constitute a majority of the Board, provided that any director whose nomination was approved by a vote of at least two-thirds of the directors then comprising the Incumbent Board will be considered a member of the Incumbent Board; provided however, that any director whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of the Company shall not be considered a member of the Incumbent Board;

 

(iii)Consummation by the Company of a reorganization, merger, share exchange or consolidation (a “Reorganization”) other than a Reorganization involving only the Company and one or more affiliated companies; or  

 

(iv)Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company, or the consummation of a sale or other disposition of all or substantially all of the assets of the Company.

 

(b)For purposes of this Agreement, “Person” means any individual, entity or group (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934 (the “Exchange Act”), other than any employee benefit plan (or related trust) sponsored or maintained by the Company or any affiliated company, and “beneficial ownership” has the meaning given the term in Rule 13d-3 under the Exchange Act.

 

(c)The Company and the Executive acknowledge and agree that this Agreement shall apply to each and any Change in Control of the Company or its successor(s) that may occur during the Change in Control Period, and that each and any Change in Control of the Company shall have different, separate and distinct Change in Control Dates and Employment Periods, respectively, other than a Change in Control as described in Sections 12(a)(i) and (iii) effected as a share exchange, in which case the Change in Control Date and the Employment Period, respectively, shall be the same with respect to both sections.

 

13.Miscellaneous

 

No provision of this Agreement may be amended, modified, waived or discharged unless such amendment, modification, waiver or discharge is agreed to in a writing signed (a) by the Executive and (b) for the Company by either the Chairman of the Board, Chairman of the Compensation Committee, Chief Executive Officer, or President of the Company; provided, however, the Executive may not sign on behalf of the Company even if he/she holds one of the identified positions with the Company.  This Agreement replaces and supersedes any prior agreements, written or oral, relating to the subject matter hereof, and all such agreements are hereby terminated and are without any further legal force or effect.  No waiver by either party hereto at any time of any breach by the other party hereto of, or of compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent 

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time.  No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party that are not expressly set forth in this Agreement.  

 

14.Governing Law

 

The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the Commonwealth of Virginia.  The Company and the Executive submit to the exclusive jurisdiction and venue of any state or federal court located within the Commonwealth of Virginia for resolution of any such claims, causes of action or disputes arising out of or relating to or concerning this Agreement.

 

15.Validity 

 

The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

 

16.Deferred Compensation Omnibus Provision

 

(a)It is intended that payments and benefits under this Agreement that are considered to be deferred compensation subject to Section 409A of the Code shall be provided and paid in a manner, and at such time and in such form, as complies with the applicable requirements of Section 409A of the Code to avoid the unfavorable tax consequences provided for therein for non-compliance.  Notwithstanding any other provision of this Agreement, the Company’s Compensation Committee or Board of Directors is authorized to amend this Agreement, to amend or void any election made by the Executive under this Agreement and/or to delay the payment of any monies and/or provision of any benefits in such manner as may be determined by it to be necessary or appropriate to comply with Section 409A of the Code or to comply with an exception from Section 409A if that is the intent of the provision.  For purposes of this Agreement, all rights to payments and benefits hereunder shall be treated as rights to receive a series of separate payments and benefits to the fullest extent allowed by Section 409A of the Code.

 

(b)If the Executive is deemed on the date of separation of service with the Company to be a “specified employee,” as defined in Section 409A(a)(2)(B) of the Code, then payment of any amount or provision of any benefit under this Agreement that is considered deferred compensation subject to Section 409A of the Code shall not be made or provided prior to the earlier of (A) the expiration of the six (6) month period measured from the date of separation of service or (B) the date of death (the “409A Deferral Period”).

 

(c)In the case of benefits that are subject to Section 409A of the Code, the Executive may pay the cost of benefit coverage, and thereby obtain benefits, during the 409A Deferral Period and then be reimbursed by the Company when the 409A Deferral Period ends.  On the first day after the end of the 409A Deferral Period, all payments delayed pursuant to this Section 16 (whether they would have otherwise been payable in a single lump sum or in 

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installments in the absence of such deferral) 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 as originally scheduled.

 

(d)“Termination of employment” shall have the same meaning as “separation of service,” as that phrase is defined in Section 409A of the Code (taking into account all rules and presumptions provided for in the Section 409A regulations).

 

17.Clawback  

 

The Executive agrees that any incentive-based compensation or award that he/she receives, or has received, from the Company or its Affiliates under this Agreement or otherwise, will be subject to clawback by the Company as may be required by applicable law or stock exchange listing requirement and on such basis as the Board of Directors of the Company determines, but in no event with a look-back period of more than two (2) years, unless required by applicable law or stock exchange listing requirement.

 

 

 

[Signatures follow on next page.]

 

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IN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument by Virginia National Bankshares Corporation by its duly authorized officer, and by the Executive, as of the date first above written.

 

 

VIRGINIA NATIONAL BANKSHARES CORPORATION

 

 

 

By: /s/ Steve W. Blaine

           Steven W. Blaine

           Chairman, Compensation Committee

 

 

 

 

EXECUTIVE:

 

 

 

_______________________

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Attachment A

 

RELEASE

 

For good and valuable consideration, the receipt of which is hereby acknowledged, 

______________ (“Employee”), hereby irrevocably and unconditionally releases, acquits, and forever discharges Virginia National Bankshares Corporation or successor entity (the “Company”) and each of its agents, directors, members, affiliated entities, officers, employees, former employees, attorneys, and all persons acting by, through, under or in concert with any of them (collectively “Releasees”) from any and all charges, complaints, claims, liabilities, grievances, obligations, promises, agreements, controversies, damages, policies, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses of any nature whatsoever, known or unknown, suspected or unsuspected, including, but not limited to, any rights, claims or causes of action arising out of, or related to, (a) Employee’s employment or termination of employment, (b) any alleged violations or breaches of any contracts, express or implied, or any tort, or any legal restrictions on the Company’s right to terminate employees, or (c) any federal, state or other governmental statute, regulation, law or ordinance, including without limitation (1) Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991; (2) the Americans with Disabilities Act; (3) 42 U.S.C. § 1981; (4) the federal Age Discrimination in Employment Act (age discrimination); (5) the Older Workers Benefit Protection Act; (6) the Equal Pay Act; (7) the Family and Medical Leave Act; (8) the Employee Retirement Income Security Act;       (9) the False Claims Act; (10) the Fair Labor Standards Act; (11) Consolidated Omnibus Budget Reconciliation Act of 1985; (12) the National Labor Relations Act; (13) the Virginia Workers’ Compensation Act; and (14) the Virginia Commission on Human Rights Act (“Claim” or “Claims”), which Employee now has, owns or holds, or claims to have, own or hold, or which Employee at any time heretofore had owned or held, or claimed to have owned or held, against each or any of the Releasees at any time up to and including the date of the execution of this Release.

 

Employee hereby acknowledges and agrees that the execution of this Release and the cessation of Employee’s employment and all actions taken in connection therewith are in compliance with the federal Age Discrimination in Employment Act and the Older Workers Benefit Protection Act and that the releases set forth above shall be applicable, without limitation, to any claims brought under these Acts. Employee further acknowledges and agrees that:

 

(a)The Release given by Employee is given solely in exchange for the consideration set forth in Section 6(a)(ii), Section 6(a)(iii) and Section 6(a)(iv) of the Management Continuity Agreement between the Company and Employee to which this Release was initially attached, and such consideration is in addition to anything of value which Employee was entitled to receive prior to entering into this Release;

 

(b)By entering into this Release, Employee does not waive rights or claims that may arise after the date this Agreement is executed;

 

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(c)Employee has been advised to consult an attorney prior to entering into this Release, and this provision of the Release satisfies the requirements of the Older Workers Benefit Protection Act that Employee be so advised in writing;

 

 (d)Employee has been offered forty-five (45) days from receipt of this Release within which to consider whether to sign this Release; and

 

(e)For a period of seven (7) days following Employee’s execution of this Release, Employee may revoke this Release and it shall not become effective or enforceable until such seven (7) day period has expired.

 

No waiver or default of any term of this Release shall be deemed a waiver of any subsequent breach or default of the same or similar nature.

 

This Release is made and shall be enforced pursuant to the laws of the Commonwealth of Virginia, except where such laws of the Commonwealth of Virginia are preempted by federal law.

 

Should any part of this Release be found to be void, that determination will not affect the remainder of this Release.

 

This release shall be binding upon the heirs and personal representatives of Employee and shall inure to the benefit of the successors and assigns of the Company.

 

 

 

Date: _______________________________________

 

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