Document:

Form of Non-Employee Director Stock Unit Agreement

 

Exhibit 10.3

FORM OF

REPUBLIC SERVICES, INC.

NON-EMPLOYEE DIRECTOR STOCK UNIT AGREEMENT

     THIS STOCK UNIT AGREEMENT, dated as of this [   ] day of [            ], between Republic
Services, Inc., a Delaware corporation (“the Company”) and [           ] (the “Director”), is
made pursuant and subject to the provisions of the Company’s 1998 Stock Incentive Plan, as amended
and restated effective January 29, 2004, and any future amendments thereto (the “Plan”). The Plan,
as it may be amended from time to time, is incorporated herein by reference.

     1. Definitions. All capitalized terms used herein but not expressly defined shall have the
meaning ascribed to them in the Plan. All references to the Company herein shall also be deemed to
include references to any and all entities directly or indirectly controlled by the Company and
which are consolidated with the Company for financial accounting purposes.

     2. Award of Stock Units. Subject to the terms and conditions of the Plan and subject
further to the terms and conditions herein set forth, the Company on this date awards to the
Director [           ] Stock Units (referred to as “Stock Units” herein and referred to as
Phantom Stock in the Plan).

     3. Terms and Conditions. This award of Common Stock is subject to the following terms
and conditions:

               A. Payment for Stock Units. Except as otherwise provided in subparagraph B hereof, at
the time the Director’s service on the Board terminates, the Director shall receive one share of
Common Stock for each Stock Unit awarded hereunder, free and clear of the restrictions set forth in
this Agreement, except for any restrictions necessary to comply with federal and state securities
laws. Certificates representing such shares shall be delivered to the Director as promptly as
practical following the Director’s becoming entitled to receive such shares.

               B. Hypothetical Nature of Stock Units. The Stock Units awarded herein do not
represent an equity security of the Company and do not carry any voting or dividend rights, except
the right to receive additional Stock Units in lieu of dividends as set forth herein.

               C. Dividends. Director shall receive additional Stock Units or fractional Stock Units
each time a dividend or other distribution is paid on the Company’s Common Stock. The number of
Stock Units awarded for a cash dividend or non-cash dividend other than a stock dividend shall be
determined by (a) multiplying the number of Stock Units held by the Director pursuant to this
Agreement as of the dividend payment date by the amount of the dividend per

 

 

share of Common Stock and (b) dividing the product so determined by the Fair Market Value of
the Common Stock on the dividend payment date. The number of Stock Units awarded for a stock
dividend shall be determined by multiplying the number of Stock Units held by the Director pursuant
to this Agreement as of the dividend payment date by the number of additional shares of Common
Stock actually paid as a dividend per share of Common Stock. Any additional Stock Units awarded
pursuant to this Section 3.C. shall be awarded effective the day following the date the dividend
was paid.

               D. Unforeseeable Financial Emergency. If the Director experiences an Unforeseeable
Financial Emergency, the Director may petition the Committee to receive the payment of shares of
Common Stock for all or part of his Stock Units prior to termination of his service on the Board.
The Director shall only receive shares of Common Stock as necessary to satisfy the Unforeseeable
Financial Emergency to the extent deemed necessary by the Committee (excluding the Director, if the
Director is a member of the Committee). “Unforeseeable Financial Emergency” shall mean an
unanticipated emergency that is caused by an event beyond the control of the Director that would
result in severe financial hardship to the Director resulting from (i) a sudden and unexpected
illness or accident of the Director or a dependent of the Director, (ii) a loss of the Director’s
property due to casualty, or (iii) such other extraordinary and unforeseeable circumstances arising
as a result of events beyond the control of the Director, all as determined in the sole discretion
of the Committee.

               E. Tax. The Company shall make any required tax filings with the Internal Revenue
Service and the appropriate State taxing authorities, if any, in connection with the award of
Common Stock hereunder. The Director is responsible for the payment of any taxes resulting from
the award of Stock Units or receipt of Common Stock hereunder.

     4. No Right to Renomination. Nothing in this Agreement shall confer upon the Director
any right to be renominated by the Board as a director of the Company.

     5. Change of Control or Capital Structure. Subject to any required action by the
shareholders of the Company, the number of Stock Units covered by this award shall be
proportionately adjusted as the Committee shall determine to be equitably required for any increase
or decrease in the number of issued and outstanding shares of Common Stock of the Company resulting
from any stock dividend (but only on the Common Stock), stock split, subdivision, combination,
reclassification, recapitalization or general issuance to the holders of Common Stock of rights to
purchase Common Stock at substantially below fair market value or any change in the number of such
shares outstanding effected without receipt of cash or property or labor or services by the Company
or for any spin-off, spin-out, split-up, split-off or other distribution of assets to shareholders.

     In the event of a Change of Control, the provisions of Section 13.03 of the Plan shall apply
to this Stock Unit Award. Upon a Change of Control, the Stock Units awarded herein shall be
cancelled and the Director shall receive a cash payment for each Stock Unit equal to the greater of
(1) the closing price of the Company’s Common Stock on or nearest the date on which the Change of
Control is deemed to occur, or (2) the highest per share price for shares of the Company’s Common
Stock actually paid in connection with the Change of Control.

 

 

     The award of Stock Units pursuant to the Plan shall not affect in any way the right or power
of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or
business structure or to merge or to consolidate or to dissolve, liquidate or sell, or transfer all
or any part of its business or assets.

     6. Governing Law. This Agreement shall be governed by and constructed in accordance
with the laws of the State of Delaware, without regard to its principles of conflict of laws. The
parties agree that any action, suit or proceeding arising out of or relative to this Agreement or
the relationship of Optionee and the Company, shall be instituted only in the state or federal
courts located in Broward County in the State of Florida, and each party waives any objection which
such party may now or hereafter have to such venue or jurisdictional court in any action, suit, or
proceeding. Any and all services of process and any other notice in any such action, suit or
proceeding shall be effective against any party if given by mail (registered or certified where
possible, return receipt requested), postage prepaid, mailed to such party at the address set forth
herein.

     7. Conflicts. In the event of any conflict between the provisions of the Plan and the
provisions of this Agreement, the provisions of the Plan shall govern.

     8. Director Bound by Plan. The Director hereby acknowledges receipt of a copy of the
Plan and agrees to be bound by all the terms, conditions and provisions thereof.

     9. Binding Effect. Subject to the limitations stated herein and in the Plan, this
Agreement shall be binding upon and inure to the benefit of the legatees, distributees and personal
representatives of the Director and the successors of the Company.

     10. Counterparts. This Agreement may be signed in any number of counterparts, each of
which shall be an original, with the same effect as if the signatures thereto and hereto were upon
the same instrument.

 

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by a duly authorized
officer, and the Director has affixed his or her signature hereto.

	 	 	 
	

	 	REPUBLIC SERVICES, INC.
	 
	 	 
	

	 	

	 
	 	 
	

	 	DIRECTOREX-10.5 Employment Agreement

 

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”), made and entered into as of February 10, 2005 (the
“Effective Date”) by and between Douglas J. Hertha, a resident of the State of Georgia
(“Employee”), and SouthCrest Financial Group, Inc., a Georgia corporation (“Employer”).

W I T N E S S E T H:

     WHEREAS, Employer desires to employ Employee as its Senior Vice President and Chief Financial
Officer and Employee desires to accept such employment;

     NOW, THEREFORE, in consideration of the employment of Employee by Employer, of the premises
and the mutual promises and covenants contained herein, and of other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, agree as follows:

          1. Employment and Duties.

          1.1 Position. Employer hereby employs Employee to serve as its Senior Vice President and
Chief Financial Officer and to perform such duties and responsibilities as are customarily
performed by persons acting in such capacity. During the term of this Agreement (as defined in
Section 2 herein), Employee will devote substantially all of his full time and effort to his duties
hereunder.

          1.2 Other Business Activities. The parties agree that the Employee shall be free to engage in
other non-competitive business activities and ventures during the term of this Agreement, so long
as any such other business activities and ventures do not conflict or compete with the business of
Employer or prevent the Employee from the faithful performance of his duties hereunder.

     2. Term.

     Subject to the provisions of Section 12 of this Agreement, the period of Employee’s employment
under this Agreement shall be deemed to have commenced as of the Effective Date, and shall continue
for a period of three (3) years, unless the Employee dies before the end of such three (3) years,
in which case the period of employment shall continue until the end of the month of such death.
The Agreement shall automatically renew on each anniversary of the Effective Date such that upon
each such anniversary, the term of the Agreement shall continue for three (3) years, unless any
party shall deliver to the other party such party’s written notice of non-renewal no later than
ninety (90) days prior to any such anniversary.

          3. Compensation.

     For all services to be rendered by Employee during the term of this Agreement,

          3.1 Base Salary. Employer shall pay Employee an annual base salary equal to $110,000 (the
“Base Salary”), less normal withholdings, payable in equal monthly or more frequent installments as
are customary under Employer’s payroll practices from time to time. Employer’s Board of Directors
shall review Employee’s Base Salary annually and may increase Employee’s Base Salary from year to
year during the term of this Agreement. Any Base Salary increase (regardless of form), will be
determined by the Employer’s Board of Directors after taking into account, among other things,
changes in the cost of living, Employee’s performance and the performance of Employer. Any action
or review by the Board of Directors may be delegated to an appropriate committee thereof. Employee
shall be entitled to annual incentive compensation in such amount and subject to such criteria as
the parties mutually agree as set forth on Exhibit A attached hereto.

     4. Expenses.

     So long as Employee is employed hereunder, Employee is entitled to receive reimbursement for,
or seek payment directly by Employer of, all reasonable expenses which are consistent with the
normal policy of Employer in the performance of Employee’s duties hereunder, provided that Employee
accounts for such expenses in writing in accordance with Employer’s reimbursement policies as may
be adopted from time to time.

          5. Employee Benefits.

          So long as Employee is actively employed hereunder, Employee will be entitled to participate
in the employee benefit, option, bonus and any other compensation programs as may be available from
time to time to executives of the Employer similarly situated to Employee, as well as the items set
forth on Exhibit A attached hereto.

          6. Vacation.

     Employee shall be entitled to three (3) weeks annual vacation.

          7. Confidentiality.

 

 

     In Employee’s position as an employee of Employer, Employee has had and will have access to
confidential information, trade secrets and other proprietary information of vital importance to
Employer and has and will also develop relationships with customers, employees and others who deal
with Employer which are of value to Employer. Employer requires as a condition to Employee’s
employment with Employer that Employee agree to certain restrictions on Employee’s use of the
proprietary information and valuable relationships developed during Employee’s employment with
Employer. In consideration of the terms and conditions contained herein, the parties hereby agree
as follows:

          7.1 The parties mutually agree and acknowledge that Employer may entrust Employee with highly
sensitive, confidential, restricted and proprietary information concerning various Business
Opportunities (as hereinafter defined), customer lists, and personnel matters. Employee
acknowledges that he shall bear a fiduciary responsibility to Employer to protect such information
from use or disclosure that is not necessary for the performance of Employee’s duties hereunder, as
an essential incident of Employee’s employment with Employer.

          7.2 For the purposes of this Section, the following definitions shall apply:

               7.2.1 “Trade Secret” shall mean the identity and addresses of customers of Employer, the whole
or any portion or phase of any scientific or technical information, design, process, procedure,
formula or improvement that is valuable and secret (in the sense that it is not generally known to
competitors of Employer) and which is defined as a “trade secret” under Georgia law pursuant to the
Georgia Trade Secrets Act.

               7.2.2 “Confidential Information” shall mean any data or information, other than Trade Secrets,
which is material to Employer and not generally known by the public. Confidential Information
shall include, but not be limited to, Business Opportunities of Employer (as hereinafter defined),
the details of this Agreement, Employer’s business plans and financial statements and projections,
information as to the capabilities of Employer’s employees, their respective salaries and benefits
and any other terms of their employment and the costs of the services Employer may offer or provide
to the customers it serves, to the extent such information is material to Employer and not
generally known by the public.

               7.2.3 “Business Opportunities” shall mean any specialized information or plans of Employer
concerning the provision of financial services to the public, together with all related information
concerning the specifics of any contemplated financial services regardless of whether Employer has
contacted or communicated with such target person or business.

               7.2.4 Notwithstanding the definitions of Trade Secrets, Confidential Information, and Business
Opportunities set forth above, Trade Secrets, Confidential Information, and Business Opportunities
shall not include any information:

                    (i) that is or becomes generally known to the public;

                    (ii) that is already known by Employee or is developed by Employee after termination of
employment through entirely independent efforts;

                    (iii) that Employee obtains from an independent source having a bona fide right to use and
disclose such information;

                    (iv) that is required to be disclosed by law, except to the extent eligible for special
treatment under an appropriate protective order; or

                    (v) that Employer’s Board of Directors approves for release.

          7.3 Employee shall not, without the prior approval of Employer’s Board of Directors, during
his employment with Employer and for so long thereafter as the information or data remain Trade
Secrets, use or disclose, or negligently permit any unauthorized person who is not an employee of
Employer to use, disclose, or gain access to, any Trade Secrets of Employer, its affiliates, or of
any other person or entity making Trade Secrets available for Employer’s use.

          7.4 Employee shall not, without the prior written consent of Employer, during his employment
with Employer and for a period of twenty-four (24) months thereafter as long as the information or
data remains competitively sensitive, use or disclose, or negligently permit any unauthorized
person who is not employed by Employer to use, disclose, or gain access to, any Confidential
Information to which the Employee obtained access by virtue of his employment with Employer, except
as provided in Section 7.2 of this Agreement.

          8. Observance of Security Measures.

     During Employee’s employment with Employer, Employee is required to observe all security
measures adopted to protect Trade Secrets, Confidential Information, and Business Opportunities of
Employer.

          9. Return of Materials.

     Upon the request of Employer and, in any event, upon the termination of his employment with
Employer, Employee shall deliver to Employer all memoranda, notes, records, manuals or other
documents, including all copies of such materials containing Trade Secrets or Confidential
Information, whether made or compiled by Employee or furnished to him from any source by virtue of
his employment with Employer.

          10. Severability.

     Employee acknowledges and agrees that the covenants contained in Sections 7, 8, 9 and 14 of
this Agreement shall be construed as covenants independent of one another and distinct from the
remaining terms and conditions of this Agreement,

 

 

and severable from every other contract and course of business between Employer and Employee, and
that the existence of any claim, suit or action by Employee against Employer, whether predicated
upon this or any other agreement, shall not constitute a defense to Employer’s enforcement of any
covenant contained in Sections 7, 8, 9 and 14 of this Agreement.

     11. Specific Performance.

     Employee acknowledges and agrees that the covenants contained in Sections 7, 8, 9 and 14 of
this Agreement shall survive any termination of employment, as applicable, with or without Cause
(as defined in Section 12 hereof), at the instigation or upon the initiative of either party.
Employee further acknowledges and agrees that the ascertainment of damages in the event of
Employee’s breach of any covenant contained in Sections 7, 8, 9 and 14 of this Agreement would be
difficult, if at all possible. Employee therefore acknowledges and agrees that Employer shall be
entitled in addition to and not in limitation of any other rights, remedies, or damages available
to Employer in arbitration, at law or in equity, upon submitting whatever affidavit the law may
require, and posting any necessary bond, to have a court of competent jurisdiction enjoin Employee
from committing any such breach.

     12. Termination.

     During the term of this Agreement, Employee’s employment, including without limitation, except
as otherwise provided in Section 12 of this Agreement, all compensation, salary, expenses
reimbursement, and employee benefits may be terminated as follows:

          12.1 At the election of Employer for Cause;

          12.2 At Employee’s election upon Employer’s breach of any material provision of this
Agreement;

          12.3 “Cause” shall mean (i) material dishonesty, gross negligence or willful misconduct by
Employee in the performance of his duties hereunder which conduct results in material financial or
reputational harm to Employer or its affiliates; (ii) conviction (from which no appeal may be, or
is, timely taken) of Employee of a felony; (iii) initiation of suspension or removal proceedings
against Employee by federal or state regulatory authorities acting under lawful authority pursuant
to provisions of federal or state law or regulation which may be in effect from time to time; (iv)
knowing violation by Employee of federal or state banking laws or regulations; or (v) refusal by
Employee to perform a duly authorized and lawful written directive of Employer’s President and
Chief Executive Officer and/or Board of Directors.

          12.4 Upon Employee’s death, or, at the election of either party, upon Employee’s disability as
determined in accordance with the standards and procedures under Employer’s then-current long-term
disability insurance coverage provided by Employer, or, if such disability insurance coverage
provided by Employer is not then in place, upon Employee’s disability resulting in his inability to
perform the duties described in Section 1.1 of this Agreement for a period of one hundred eighty
(180) consecutive days.

          12.5 If this Agreement is terminated either (i) by Employer at any time for any reason other
than for Cause or (ii) upon Employer’s breach of this Agreement, then Employer shall pay to
Employee as Employer’s sole remaining obligation to Employee under this Agreement the sum of the
following: (i) Employee’s Base Salary for the remaining months of the term of this Agreement at
the Base Salary rate then in effect; (ii) the cost of COBRA health continuation coverage for
Employee for the lesser of (a) the remaining months of the term of this Agreement, or (b) the
period during which Employee is entitled to COBRA health continuation coverage from the Employer;
and (iii) the cost for term life insurance coverage for Employee for the remaining months of the
term of this Agreement in an amount not to exceed the monthly cost of premiums for such coverage in
effect on the effective date of termination.

          12.6 If the Agreement is terminated either for Cause or by Employee pursuant to Section 12.4
of this Agreement, Employee shall receive no further compensation or benefits, other than
Employee’s Base Salary and other compensation as accrued through the effective date of such
termination.

     13. Notice.

     All notice provided for herein shall be in writing and shall be deemed to be given when
delivered in person or deposited in the United States Mail, registered or certified, return receipt
requested, with proper postage prepaid and addressed as follows:

	 	 	 
	Employer:

	 	SouthCrest Financial Group, Inc.

600 North Glynn Street

Suite B

Fayetteville, Georgia 30214

	Employee:

	 	Douglas J. Hertha

123 Chadwick Drive

Peachtree City, Georgia 30269

 

 

	 	 	 
	with a copy to:

	 	Powell Goldstein LLP

One Atlantic Center

Fourteenth Floor

1201 West Peachtree Street NW

Atlanta, Georgia 30309-3488

Attn: Walter G. Moeling, IV, Esquire

     14. Covenant Not to Compete and Not to Solicit.

          14.1 For purposes of this Section 14, Employer and Employee conduct the following business in
the following geographic areas:

               14.1.1 Employer is engaged in the business of commercial banking (“Business of Employer”).

               14.1.2 As of the Effective Date, Employer conducts the Business of Employer from its main
office located at 600 North Glynn Street, Suite B, Fayetteville, Georgia 30214 (the “Holding
Company Office”).

               14.1.3 Employee has established business relationships and performs the duties described in
Section 1.1 of this Agreement in the geographic area covered by Fayette, Meriwether, Polk and Upson
Counties, Georgia (the “Restricted Area”), and will work primarily in the Restricted Area while in
the employ of Employer.

          14.2 Employee covenants and agrees that both during the term of this Agreement and for a
period of one (1) year after the termination of his employment with Employer for any reason other
than a resignation pursuant to Section 15.3 of this Agreement, Employee shall not, directly or
indirectly, as principal, agent, trustee, consultant or through the agency of any corporation,
partnership, association, trust or other entity or person, on Employee’s own behalf or for others,
provide the duties described in Section 1.1 of this Agreement for any entity or person conducting
the Business of Employer within the Restricted Area.

          14.3 Employee covenants and agrees that both during the term of this Agreement and for a
period of one (1) year after the termination of his employment with Employer for any reason,
Employee will not enter into, and will not participate in, any plan or arrangement to cause any
employee of the Employer to terminate his or her employment with Employer, and, Employee further
agrees that for a period of at least one (1) year after the termination of employment by any
employee of Employer, Employee will not hire such employee in connection with any business
initiated by Employee or any other person, firm or corporation. Employee further agrees that
information as to the capabilities of Employer’s employees, their salaries and benefits, and any
other terms of their employment is Confidential Information and proprietary to the Employer.

          14.4 Employee and Employer shall periodically amend this Agreement by updating the address
referenced in Section 14.1.2 of this Agreement so that it at all times lists the then current
geographic area served by Employer for which Employee performs the duties described in Section 1.1
of this Agreement.

          14.5 The covenants contained in this Section 14 shall be construed as agreements severable
from and independent of each other and of any other provision of this or any other contract or
agreement between the parties hereto. The existence of any claim or cause of action by Employee
against Employer, whether predicated upon this or any other contract or agreement, shall not
constitute a defense to the enforcement by Employer of said covenants.

     15. Change in Control.

     None of the benefits provided in Section 15 of this Agreement shall be payable to Employee
unless (i) there shall have been a Change in Control of Employer, as set forth in this Section 15,
and (ii) Employee is employed by Employer when the Change in Control occurs.

          15.1 “Change in Control” shall be deemed to have occurred if:

               15.1.1 During the term of this Agreement, the individuals constituting Employer’s Board of
Directors immediately following the Effective Date (the “Beginning Board”) cease for any reason to
constitute at least a majority of said Board, provided that in making such determination, a
director elected by or on the recommendation of the Beginning Board shall be deemed to be a member
of such Beginning Board, excluding, for this purpose, any director whose assumption of office
occurs as a result of an actual or threatened election contest or proxy contest with respect to the
election or removal of directors; or

               15.1.2 If (i) a notice or an application is filed with the Federal Reserve Board (“FRB”)
pursuant to Regulation “Y” of the FRB under the Change in Bank Control Act or the Bank Holding
Company Act or with the Georgia Department of Banking and Finance (the “Department”) pursuant to
the Financial Institutions Code of Georgia for permission to acquire control of Employer or any of
its banking affiliates, or (ii) more than twenty-five percent (25%) of Employer’s outstanding
common stock or equivalent in voting power of any class or classes of outstanding securities of
Employer entitled to vote in elections of directors shall be acquired by any corporation or other
person, or group. “Group” shall mean persons who act in concert as described in Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended; or

               15.1.3 Employer shall become a subsidiary of another corporation or shall be merged or
consolidated into another corporation and (i) less than a majority of the outstanding voting shares
of the parent or surviving corporation after such acquisition, merger or consolidation are owned
immediately after such acquisition, merger or consolidation by the

 

 

owners of the voting shares of Employer immediately before such acquisition, merger or
consolidation, or (ii) a person or entity (excluding any corporation resulting from such business
combination or any employee benefit plan or related trust of Employer or such resulting
corporation) beneficially owns or controls twenty-five percent (25%) or more of the combined voting
power of the then outstanding securities of such corporation, except to the extent that such
ownership existed prior to the business combination, or (iii) less than a majority of the members
of the board of directors of the corporation resulting from such business combination were members
of the Employer’s Board of Directors at the time of the execution of the initial agreement for such
merger or consolidation; or

               15.1.4 Substantially all of the assets of Employer shall be sold to another entity other than
a sale to a wholly-owned subsidiary of Employer; or

               15.1.5 The sale or transfer of any of the stock or substantially all of the assets of Employer
regardless of the form of the transaction, other than a sale or transfer to a wholly-owned
subsidiary of Employer.

          15.2 In the event of a Change in Control of Employer, if Employer terminates Employee without
Cause, or if Employer takes any action specified in Section 15.3 of this Agreement during the term
of this Agreement following the date of occurrence of a Change in Control of Employer (“Termination
of Employment”), Employer shall pay Employee a lump sum cash payment in an amount equal to the
product of one (1) multiplied by Employee’s annual compensation from Employer, including salary,
bonuses, all perquisites, and all other forms of compensation paid to Employee for his benefit or
the benefit of his family, however characterized, for the fiscal year during the term of this
Agreement for which such compensation was highest (“Employee’s Annual Salary”). The payment
provided for in this Section 15.2 shall be due and payable to Employee within thirty (30) days
after the date of the Termination of Employment. In no event shall payment(s) described in this
Section exceed the amount permitted by Section 280G of the Internal Revenue Code, as amended (the
“Code”). Therefore, if the aggregate present value (determined as of the date of the Change in
Control in accordance with the provisions of Section 280G of the Code) of both the severance
payment and all other payments to the Employee in the nature of compensation which are contingent
on a change in ownership or effective control of Employer or in the ownership of a substantial
portion of the assets of Employer (the “Aggregate Severance”) would result in a “parachute
payment,” as defined under Section 280G of the Code, then the Aggregate Severance shall not be
greater than an amount equal to 2.99 multiplied by Employee’s “base amount” for the “base period,”
as those terms are defined under Section 280G of the Code. In the event the Aggregate Severance is
required to be reduced pursuant to this Section, the Employee shall be entitled to determine which
portions of the Aggregate Severance are to be reduced so that the Aggregate Severance satisfies the
limit set forth in the preceding sentence.

          15.3 During the remaining term of this Agreement following the effective date of a Change in
Control, if Employer takes any of the following actions, such action shall be deemed to be a
termination by Employer without Cause. Those actions are: (i) a material reduction in Employee’s
Base Salary, bonus provisions or other perquisites as were in effect immediately prior to a Change
in Control of Employer, (ii) a material change in Employee’s status, offices, titles or reporting
requirements, duties or responsibilities with Employer as in effect immediately prior to the
effective date of the Change in Control, (iii) a failure by Employer to increase Employee’s Base
Salary annually in accordance with an established procedure, or (iv) due to Employer’s requirement
that Employee relocate his principal place of business by more than twenty five (25) miles from the
Holding Company Office. In any such event, Employee shall be entitled to all payments provided for
in Section 15.2 of this Agreement.

     16. Miscellaneous.

          16.1 This Agreement constitutes and expresses the whole agreement of the parties in reference
to the employment of Employee by Employer, and there are no representations, inducements, promises,
agreements, arrangements, or undertakings oral or written, between the parties other than those set
forth herein.

          16.2 This Agreement shall be governed by the laws of the State of Georgia. The parties agree
that the Superior Court of Upson County, Georgia, shall have jurisdiction of any case or
controversy arising under or in connection with this Agreement and shall be a proper forum in which
to adjudicate such case or controversy. The parties consent to the jurisdiction of such court.

          16.3 Should any clause or any other provision of this Agreement be determined to be void or
unenforceable for any reason, such determination shall not affect the validity or enforceability of
any clause or provision of this Agreement, all of which shall remain in full force and effect.

          16.4 Time is of the essence in this Agreement.

          16.5 This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their successors and assigns. This Agreement shall not be assignable by any other parties hereto
without the prior written consent of the other parties.

          16.6 This Agreement may be executed in multiple counterparts, each of which shall be deemed an
original and all of which taken together shall constitute but a single instrument.

 

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
written above.

	 	 	 
	/s/Ann Hindman

Witness	 	
“Employee”

/s/ Douglas J. Hertha (SEAL)

Douglas J. Hertha

	 	 	
“Employer”

	ATTEST	 	
SouthCrest Financial Group, Inc.

	/s/Ann Hindman

	 	
By: /s/ Larry T. Kuglar

Its: President, CEO

	(CORPORATE SEAL)	 	 

 

 

EXHIBIT A

Annual Incentive Compensation

[To be mutually agreed upon]

Perquisites

[Customary perquisites to be added]

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