Document:

EXHIBIT 10.12

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(the “Agreement”) is made by CHEMICAL FINANCIAL CORPORATION, a Michigan corporation (the “Corporation”)
and ROBERT S. RATHBUN (“Executive”). The parties agree as follows.

WHEREAS, the Board
of Directors of the Corporation believes that the future services of Executive as provided in this Agreement will be of great value
to the Corporation; and

WHEREAS, the Corporation
owns and operates a wholly owned subsidiary, Chemical Bank (“Bank”), which is engaged in the general business of banking;
and

WHEREAS, the Board
of Directors of the Corporation has determined that it is in the best interests of the Corporation, its shareholders and the Bank
to secure Executive’s continued services and to ensure Executive’s continued dedication and objectivity in the event
of any potential or occurrence of, or negotiation or other action that could lead to, or create the possibility of, a Change in
Control (as hereafter defined) of the Corporation, without concern as to whether Executive might be hindered or distracted by personal
uncertainties and risks created by any such possible Change in Control, and to encourage Executive’s full attention and dedication
to the Corporation and the Bank, the Board of Directors has authorized the Corporation to enter into this Agreement; and

WHEREAS, Executive
is willing to serve in the employ of the Corporation and the Bank on a full-time basis as an at-will employee as provided in this
Agreement.

NOW, THEREFORE, the
parties agree as follows.

1.        Effective
Date and Term. This Agreement will take effect as of the Effective Time of the Corporation’s acquisition of Talmer Bancorp,
Inc. (“Talmer”), as defined in the Agreement and Plan of Merger dated as of January 25, 2016, between Chemical and
Talmer (the “Merger Agreement”) (“Effective Date”). If the merger of the Corporation and Talmer does not
close, this Agreement shall be null and void. The initial term of this Agreement shall be two years, and, at the end of the initial
term, the term shall automatically be extended by another year on each anniversary of the Effective Date unless either party gives
the other notice (as provided in Section 15) of intention to terminate this Agreement at least thirty (30) days before an anniversary
of the Effective Date, in which case this Agreement shall terminate at the end of the then-current term without any further extension;
provided, however, that:

(a)        except
for termination as provided above pursuant to notice from Executive to the Corporation, this Agreement will not terminate during
an “Active Change in Control Proposal Period” (as defined in Section 10), even if the Corporation has given Executive
notice of intention to terminate this Agreement;

(b)        except
for termination as provided above pursuant to notice from Executive to the Corporation, upon the occurrence of a “Change
in Control” (as defined in Section 9), the term of this Agreement shall automatically be extended until the second 

    	 		 

     

    

anniversary
of the effective date of the Change in Control, even if the Corporation has given notice of intention to terminate this Agreement;
and

(c)        termination
of this Agreement shall not affect the obligations of either party accrued before termination of this Agreement, including Executive’s
obligations under Sections 11, 12 and 13.

2.        Employment.
Executive will serve as: (A) Executive Vice President Chief Operating Officer – Customer Experience of the Corporation; (the
“principal position”); and (B) in such positions with Affiliates (defined for purposes of this Agreement as any organizations
controlling, controlled by or under common control with the Corporation) as reasonably requested by the Corporation, provided that
the duties of such positions are consistent with Executive’s responsibilities in Executive’s principal position (together,
the “Employment”). As used in this Agreement, the term “Corporation” includes the Bank, unless the context
clearly requires otherwise.

Executive will serve
the Corporation and the Bank well and faithfully during the Employment and will devote Executive’s best reasonable full time
business efforts to the Employment, except that Executive may engage in civic and professional activities, service on boards of
directors, and similar activities as long as such activities do not constitute a conflict of interest or impair Executive’s
performance of the duties of the Employment. The Employment may be terminated during the term of this Agreement as provided in
Sections 4 and 5.

3.        Compensation.
Executive will be compensated during the Employment as follows:

(a)       Salary.
Executive’s annual salary (“Salary”) will be $330,000.00, prorated for any partial year, subject to required
payroll deductions and payable in weekly, bi-weekly or semi-monthly installments pursuant to the Corporation’s normal payroll
practices. Such Salary shall be subject to review annually commencing in 2017 and will be subject to adjustment pursuant to the
Corporation’s normal procedures.

(b)       Bonus.
Executive will participate in any bonus programs for senior executives of the Corporation or the Bank, at a level commensurate
with Executive’s principal position.

(c)       Equity
Plans. Executive will participate in any stock option or other equity based compensation programs (“Equity Plans”)
offered by the Corporation, at a level commensurate with Executive’s principal position.

(d)        Fringe
Benefits. Executive will participate in health and dental, life insurance, short and long term disability insurance, retirement
and other employee fringe benefit programs covering the Corporation’s salaried employees as a group, and in any programs
applicable to senior executives of the Corporation or the Bank. The terms of applicable insurance policies and benefit plans in
effect from time to time will govern with regard to specific issues of coverage and benefit eligibility. All benefit programs are
subject to change from time to time in the Corporation’s discretion, except that Executive will at all times receive the
following specific benefits:

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i.              
Thirty (30) days of paid time off per year, to be taken in the year earned, and which may
not be accumulated or carried forward except as permitted by Corporation policy. Such paid time off shall be subject to review
annually commencing in 2017 and Executive’s days of paid time off per year shall be subject to adjustment pursuant to the
Corporation’s normal procedures. 

ii.            
Reimbursement of expenses incurred to purchase or lease an executive automobile not to exceed
$900.00 per month. Executive will be responsible for payment of all other expenses related to the automobile, such as fuel expenses,
automobile insurance, maintenance and repair costs. Such automobile expense reimbursement shall be subject to review annually
commencing in 2017 and subject to adjustment pursuant to the Corporation’s normal procedures. 

iii.           
Reimbursement of up to $_____ per year for country club membership dues. Reimbursement is
to be paid according to the Corporation’s standard reimbursement policies and procedures, but not later than March 15 of
the year following the year in which the expense was incurred.

(e)        Business
Expenses. The Corporation will reimburse Executive for reasonable ordinary and necessary business expenses incurred in the
course of the Employment, for fees and expenses of Executive’s attendance in the course of the Employment at banking related
conventions and similar events, for reasonable professional association and seminar expenses, and for any additional expenses authorized
by the Corporation, subject to Executive’s submission of proper documentation for tax and accounting purposes. Reimbursement
under this section and Sections 3(d)(ii)-(iv) will be paid within thirty (30) days after Executive submits documentation as provided
by this Section, provided that payments may not be made after March 15 of the calendar year following the calendar year in which
the expenses were incurred.

4.       Termination
of the Employment Without Severance Pay. Executive shall not be entitled to any further compensation from the Corporation or
any Affiliate after termination of the Employment as permitted by this Section 4, except (A) unpaid Salary installments through
the Employment termination date, (B) any vested benefits accrued as of the date of termination of the Employment under the terms
of any written Corporation or Bank employment, compensation or benefit program; and (C) any rights of Executive to indemnification
under the provisions of the Articles of Incorporation or Bylaws of the Corporation or the Bank or any indemnification agreement
entered into between Executive and the Corporation or any Affiliate (together, the “Vested Rights”).

(a)        Death.
The Employment will terminate automatically upon Executive’s death.

(b)        Disability.
The Corporation may terminate the Employment due to Executive’s “Permanent Disability”, as defined and provided
for in this Section 4(b). If Executive has been unable by reason of physical or mental disability to properly perform 

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Executive’s
duties hereunder for a period of one hundred eighty (180) days, the Corporation may give Executive notice of its intention to terminate
the Employment due to Permanent Disability. If Executive wishes to contest the existence of termination due to Permanent Disability,
he must give the Corporation notice of Executive’s disagreement within ten (10) days after receipt of the notice from the
Corporation, and he must promptly submit to examination by three physicians who are reasonably acceptable to both Executive and
the Corporation (with consultation from other physicians as determined by those three). If (A) within sixty (60) days after receipt
by Executive of the notice from the Corporation, two of such physicians shall issue their written statement to the effect that
in their opinion, based on their diagnosis, Executive is capable of resuming Executive’s employment and devoting Executive’s
full time and energy to discharging Executive’s duties within sixty (60) days after the date of such statement, and (B) Executive
does in fact within such sixty (60) day period resume the Employment and properly perform Executive’s duties hereunder, then
the Employment shall not be terminated due to Permanent Disability. It is understood that the Corporation has the right to terminate
the Employment due to Executive’s disability without meeting the standards in this Section 4(b), but in that event the termination
shall be deemed to be a termination of the Employment pursuant to Section 5(a).

(c)        Termination
by Corporation for Cause. The Corporation may terminate the Employment for “Cause”, defined as (i) removal by order
of a regulatory agency having jurisdiction over the Corporation or the Bank, (ii) Executive’s conviction of, or plea of no
contest to, a felony, (iii) Executive’s gross misconduct, or (iv) Executive’s willful and repeated failure to perform
Executive’s duties under this Employment Agreement. The Corporation may only terminate the Employment for Cause under (iii)
and (iv) above if the failure has not been cured by Executive within thirty (30) days after the Corporation gives notice thereof
to Executive; it being expressly understood that negligence or bad judgment shall not constitute “Cause” so long as
such act or omission shall be without intent of personal profit and is reasonably believed by Executive to be in or not adverse
to the best interests of the Corporation.

(d)        Discretionary
Termination by Executive. Executive may terminate the Employment at will, with at least thirty (30) days advance notice. If
Executive gives such notice of termination, the Corporation may (but need not) relieve Executive of some or all of Executive’s
offices and responsibilities for part or all of such notice period, provided that Executive’s Salary and benefits are continued
for the lesser of thirty (30) days or the remaining period of the Employment.

(e)        Termination
of Employment after Termination of This Agreement. If Executive continues to be employed by the Corporation or the Bank after
termination of this Agreement as provided in Section 1, Executive’s employment shall be terminable by either party at will
without any Severance Pay.

5.        Termination
With Severance Pay. Executive shall not be entitled to any further compensation from the Corporation or any Affiliate after
termination of the Employment as permitted by this Section 5, except (A) Vested Rights; and (B) Severance Pay under Section 6 or
the Change in Control Severance under Section 7, whichever is applicable.

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(a)        Discretionary
Termination by Corporation. The Corporation may terminate the Employment during the term of this Agreement at will, with at
least thirty (30) days advance notice to Executive. Any termination of Executive’s Employment by the Corporation under Section
4 that is found not to meet the standards of such Section will be considered to have been a termination under this Section 5(a).

(b)       Termination
by Executive for Good Reason. Executive may terminate the Employment during the term of this Agreement for “Good Reason”
if there is a material negative change to the employment relationship between Executive and the Corporation because: (i) Executive
is removed from any of Executive’s principal positions; (ii) the status, authority or responsibility of Executive’s
principal positions is materially diminished; (iii) Executive’s Salary as then in effect is materially reduced without a
corresponding reduction in the salaries of the Corporation and Bank’s other executives, (iv) the Corporation requires Executive
be based in a facility that is more than sixty (60) miles from the facility where Executive is located immediately prior to the
relocation or any substantial increase in the business travel required of Executive; or (v) any material breach by the Corporation
or the Bank, or any successor, of its obligations to Executive under this Agreement.

Executive
may not terminate the employment for “Good Reason” unless:

A.       Executive
notifies the CEO in writing, within 60 days after Executive becomes aware of the act or omission constituting Good Reason, that
the act or omission in question constitutes Good Reason and explaining why Executive considers it to constitute Good Reason;

B.       the
Corporation fails, within 30 days after notice from Executive under A. above, to revoke the action or correct the omission and
make Executive whole; and

C.       Executive
gives notice of termination within 30 days after expiration of the 30-day period under B. above.

6.       Severance
Pay.  The Corporation will pay and provide Executive with the payments and benefit continuation provided in this Section 6
(“Severance Pay”) if Executive’s Employment is terminated during the term of this Agreement as provided in Section
5 in a manner that constitutes a “separation from service” as that term is defined by Section 409A of the Internal
Revenue Code of 1986 (the “Code”) and Executive is not entitled to the Change in Control Severance under Section 7.
If Executive becomes entitled to Severance Pay under this Section 6, and subsequently becomes entitled to the Change in Control
Severance under Section 7, the amount of the lump sum Cash Payment under Section 7(a) shall be reduced by the amount of Severance
Pay already received by Executive under this Section 6, and no further Severance Pay will be payable under this Section 6.

(a) Amount
and Duration of Severance Pay. Subject to the other provisions of this Section, Severance Pay will consist of:

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i.       Severance.
Payment of an amount equal to one times the sum of (A) Executive’s then-current Salary (disregarding any reduction in Salary
that constitutes Good Reason) and (B) the sum of Executive’s cash bonuses under the Corporation’s executive annual
incentive plan for each of the most recent three complete calendar years of Executive’s employment by the Corporation (or
such lesser number of complete calendar years as Executive has been employed by the Corporation) divided by three (or the lesser
number of complete calendar years for which Executive has been employed by the Corporation), payable in equal installments over
fifty-two (52) weeks following the week in which the Employment terminates (the “Severance Pay Period”) pursuant to
the Corporation’s normal payroll process, subject to required payroll withholding;

ii.       Health
Coverage Payment. The Corporation will pay Executive a lump sum equal to twelve (12) times the Corporation’s monthly
contribution towards Executive’s then current employee and dependent health, prescription drug and dental coverage elections,
payable in the first payroll occurring on or after the tenth business day after the date Executive’s Employment terminates,
subject to required payroll withholding. If Executive is not enrolled in the Corporation’s health, prescription drug and
dental plans, then the monthly contribution will be based on the Corporation’s contribution towards family coverage for such
plans determined at the time employment terminates. Although the right to payment under this paragraph is based on the Corporation’s
health, prescription drug and/or dental plan at the time employment terminates and is intended to fund payment for health coverage,
the payment is not required to be used for health coverage and Executive may use the payment for any purpose;

iii.       Acceleration
of Vesting. Effective at the time of termination of employment, all unvested stock options and stock previously issued to Executive
as to which rights of ownership are subject to forfeiture shall immediately vest; all risk of forfeiture of the ownership of stock
or stock options and restrictions on the exercise of options shall lapse; and, Executive shall be entitled to exercise any or all
options, such that the underlying shares will be considered outstanding at the time of the termination of employment; and

iv.       Outplacement
Services. The Corporation will provide Executive with executive-level outplacement services through an outplacement services
firm selected by the Company with the Executive’s approval, which shall not be withheld if the firm selected is reputable,
for a period not to exceed twelve (12) months after Executive’s termination date. The timing of outplacement services to
be received shall be determined by the Executive, provided that all costs under this subsection must be incurred, and all applicable
payments to the outplacement firm made, within twelve months following Executive’s termination of employment.

Executive will receive the Severance
Pay provided in Section 6(a) notwithstanding any other earnings that Executive may have, and subject to offset only as provided
in Section 6(c). If Executive dies during the Severance Pay Period, the Severance Pay under Section 

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6(a) will continue for the
remainder of the Severance Pay Period for the benefit of Executive’s designated beneficiary (or Executive’s estate
if Executive fails to designate a beneficiary).

(b)        Conditions
to Severance Pay. To be eligible for Severance Pay, Executive must meet the following conditions: (i) Executive must comply
with Executive’s obligations under this Agreement that continue after termination of the Employment; (ii) Executive must
promptly sign and continue to honor a release, in form acceptable to the Corporation, of any and all claims arising out of or relating
to Executive’s employment or its termination and that Executive might otherwise have against the Corporation, the Corporation’s
Affiliates, or any of their officers, directors, employees and agents, provided that the release will not waive Executive’s
right to claims or rights related to (A) this Agreement; (B) unpaid salary through the employment termination date; (C) unpaid
expense reimbursements for authorized business expenses incurred before the employment termination date; (D) any Equity Plan benefits;
(E) benefit plans (for example to convert life insurance); (F) any rights under the terms of any qualified retirement plan covering
Executive; and (G) rights of indemnification under the Corporation’s Articles of Incorporation or Bylaws or any indemnification
agreement entered into between Executive and the Corporation or any Affiliate (in addition, the release does not affect Executive’s
right to cooperate in an investigation by the Equal Employment Opportunity Commission), (iii) Executive must resign upon written
request by Corporation from all positions with or representing the Corporation or any Affiliate, including but not limited to,
membership on boards of directors; and (iv) Executive must provide the Corporation for a period of six (6) months after the Employment
termination date with consulting services regarding matters within the scope of Executive’s former duties upon request by
the Corporation’s Chief Executive Officer; provided, however, that Executive will only be required to provide those services
by telephone at Executive’s reasonable convenience and without substantial interference with Executive’s other activities
or commitments.

(c)        Reductions
to Severance Pay. The Severance Pay due to Executive under Section 6(a)(i) for any week will be reduced (but not below zero)
by: (i) any disability benefits to which Executive is entitled for that week under any disability insurance policy or program of
the Corporation or any Affiliate (including but not limited to worker’s disability compensation); (ii) any severance pay
payable to Executive under any other agreement or Corporation policy; (iii) any payment due to Executive under the Federal Worker
Adjustment and Retraining Notification Act or any comparable state statute or local ordinance; and (iv) up to $5,000 of expenses
owed by Executive to the Corporation from debt incurred in the ordinary course of the service relationship.

(d)       Delay
in Payment to a Specified Employee. Notwithstanding any other timing provision in this Section 6, if, at the time any payment
that is not exempt from Section 409A would commence due to a separation from service, and Executive is a “specified employee”
as that term is defined by Section 409A of the Code, then no such payment under this Agreement may be paid before the date that
is six months after Executive’s separation from service (or, if earlier, the individual’s death). Payments that are
not exempt from Section 409A and that Executive would otherwise have been entitled 

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during those six months will be accumulated
and paid on the first payroll date after six months following Executive’s separation from service (or, if earlier, the individual’s
death). All payments that are exempt from Section 409A, or that would otherwise be made more than six months following Executive’s
separation from service, will be made in accordance with the general timing provisions described above.

7.       Change
in Control Severance. The Corporation will make the payments provided for in this Section 7 if Executive’s Employment
is terminated under Section 5 during the term of this Agreement in a manner that constitutes a “separation from service”
as that term is defined by Section 409A of the Code, and such termination of Employment occurs either (i) within two years after
the date of a Change in Control or (ii) within six months before the date of a Change in Control.

(a)        Amount
and Payment of Cash Payment. The Corporation will make a cash payment (the “Cash Payment”) to Executive in an amount
equal to one times the sum of (A) Executive’s then-current Salary (disregarding any reduction in Salary that constitutes
Good Reason) and (B) the sum of Executive’s cash bonuses under the Corporation’s [executive annual incentive plan]
for each of the most recent three complete calendar years of Executive’s employment by the Corporation (or such lesser number
of complete calendar years as Executive has been employed by the Corporation) divided by three (or the lesser number of complete
calendar years for which Executive has been employed by the Corporation). The Cash Payment shall be paid to Executive in a single
lump sum in the first payroll occurring on or after the tenth business day after the date Executive’s Employment terminates.
If Executive dies after becoming entitled to the Cash Payment but before it has been paid in full, any remaining Cash Payments
will be made to Executive’s designated beneficiary (or Executive’s estate if Executive fails to designate a beneficiary).

(b)       Health
Coverage Payment. The Corporation will pay Executive a lump sum equal to twelve (12) times the Corporation’s monthly
contribution towards Executive’s then current employee and dependent health, prescription drug and dental coverage elections,
payable in the first payroll occurring on or after the tenth business day after the date Executive’s Employment terminates,
subject to required payroll withholding. If Executive is not enrolled in the Corporation’s health, prescription drug and
dental plans, then the monthly contribution will be based on the Corporation’s contribution towards family coverage for such
plans determined at the time employment terminates. Although the right to payment under this paragraph is based on the Corporation’s
health, prescription drug and/or dental plan at the time employment terminates and is intended to fund payment for health coverage,
the payment is not required to be used for health coverage and Executive may use the payment for any purpose.

(c)       Acceleration
of Vesting. Effective at the time of termination of employment, all unvested stock options and stock previously issued to Executive
as to which rights of ownership are subject to forfeiture shall immediately vest; all risk of forfeiture of the ownership of stock
or stock options and restrictions on the exercise of options shall lapse; and, Executive shall be entitled to exercise any or all
options, such 

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that the underlying shares will be considered outstanding at the time of the termination of employment.

(d)       Outplacement
Services. The Corporation will provide Executive with executive-level outplacement services through an outplacement services
firm selected by the Company with the Executive’s approval, which shall not be withheld if the firm selected is reputable,
for a period not to exceed twelve (12) months after Executive’s termination date. The timing of outplacement services to
be received shall be determined by the Executive, provided that all costs under this subsection must be incurred, and all applicable
payments to the outplacement firm made, within twelve months following Executive’s termination of employment.

(d)       Reductions
to Cash Payment. Executive will receive the Cash Payment notwithstanding any other earnings that Executive may have and without
offset of any kind except required payroll deductions.

8.       Parachute
Cap. Notwithstanding anything in this Agreement to the contrary, any payment, benefit, or amount payable or benefit to be provided
to Executive, whether pursuant to this Agreement or otherwise, that is a “Parachute Payment” as defined in Section
280G(b)(2) of the Internal Revenue Code (the “Code”), will be reduced to the extent necessary so that the benefits
payable or to be provided to Executive under this Agreement that are treated as Parachute Payments as well as any payments or benefits
provided outside of this Agreement that are so treated will not cause the Corporation or any Affiliate to have paid an “Excess
Parachute Payment” as defined in Section 280G(b)(1) of the Code. If it is established that an “Excess Parachute Payment”
has occurred or will occur under this Agreement or otherwise, any remaining Parachute Payments to be made will be reduced to ensure
that the total payments to Executive do not exceed 2.99 times Executive’s “base amount” as defined in Section
280G(b)(3) of the Code. The lump sum cash severance payment under Section 7(a) will be reduced to comply with this Section 8 only
to the extent necessary to ensure that the total payments to Executive do not exceed 2.99 times Executive’s “base amount”
as defined in Section 280G(b)(3) of the Code.

9.       Definition
of Change in Control. As used in this Agreement, the term “Change in Control” means any of the occurrences listed
in (a) below, subject to (b) below.

(a)        A
Change in Control means the occurrence of a change in the ownership of effective control of the Corporation or a change in the
ownership of a substantial portion of the assets of the Corporation as provided by Treasury Regulation § 1.409A-3(i)(5), which
includes the occurrence of any of the following events:

(i)       The
acquisition, by a person or persons acting as a group, of stock of the Corporation that together with stock held by such person
or group constitutes more than 50% of the total fair market value or total voting power of the stock of the Corporation.

(ii)       The
majority of members of the Board of Directors of the Corporation are replaced during any twelve month period by directors whose

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appointment or election is not endorsed by a majority of the members of the Board of Directors prior to the date of appointment
or election.

(iii)       The
acquisition, by a person or persons acting as a group, of the Corporation’s assets that have a total gross fair market value
equal to or exceeding 50% of the total gross fair market value of the Corporation’s assets in a single transaction or within
a twelve month period ending with the most recent acquisition. For the purpose of this section, gross fair market value means the
value of the assets of the Corporation, or the value of the assets being disposed of, determined without regard to any liabilities
associated with such assets.

The parties agree that the merger
between the Corporation and Talmer pursuant to the Merger Agreement does not constitute a Change in Control under this Agreement
and does not trigger any payments that may otherwise be required by this Section and Executive waives any right to any payment
under this Agreement as a result of that merger.

(b)        Notwithstanding
the foregoing, no trust department or designated fiduciary or other trustee of such trust department of the Corporation or a subsidiary
of the Corporation, or other similar fiduciary capacity of the Corporation with direct voting control of the stock shall be treated
as a person or group within the meaning of subsection (a)(i) hereof. Further, no profit-sharing, employee stock ownership, employee
stock purchase and savings, employee pension, or other employee benefit plan of the Corporation or any of its subsidiaries, and
no trustee of any such plan in its capacity as such trustee, shall be treated as a person or group within the meaning of subsection
(a)(i) hereof.

10.        Definition
of “Active Change in Control Proposal Period”. As used in this Agreement the term “Active Change in Control
Proposal Period” shall mean any period:

(a)        during
which the Board of Directors of the Corporation has authorized solicitation by the Corporation of offers for a transaction which,
if consummated, would constitute a Change in Control; or

(b)        during
which the Corporation has received a proposal for a transaction which, if consummated, would constitute a Change in Control, and
the Board of Directors has not determined to reject such proposal without any counter-offer or further discussions; or

(c)        during
which any proxy solicitation or tender offer with regard to the securities of the Corporation is ongoing, if the intent of such
proxy solicitation or tender offer is to cause the Corporation to solicit offers for or enter into a transaction that would constitute
a Change in Control.

11.       Confidentiality,
Return of Property. Executive has obtained and may obtain confidential information concerning the business, operations, financial
affairs, organizational and personnel matters, policies, procedures and other non-public matters of Corporation and its Affiliates,
and those of third-parties that is not generally disclosed to persons not employed by 

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Corporation or its subsidiaries. Such information
(referred to herein as the “Confidential Information”) may have been or may be provided in written form or orally.
Executive shall not disclose to any other person the Confidential Information at any time during or after termination of the Employment,
except that during the Employment Executive may use and disclose Confidential Information as reasonably required by the Employment.
Upon termination of the Employment, Executive will deliver to the Corporation any and all property owned or leased by the Corporation
or any Affiliate and any and all Confidential Information (in whatever form) including without limitation all customer lists and
information, financial information, business notes, business plans, documents, keys, credit cards and other Corporation-provided
equipment. Executive’s commitments in this Section will continue in effect after termination of the Employment and after
termination of this Agreement. The parties agree that any breach of Executive’s covenants in this Section would cause the
Corporation irreparable harm, and that injunctive relief would be appropriate.

12.       Inventions,
Discoveries and Improvements. Executive hereby agrees to assign and transfer to the Corporation, its successors and assigns,
Executive’s entire right, title and interest in and to any and all inventions, discoveries, trade secrets and improvements
thereto which he may discover to develop, either solely or jointly with others, during Executive’s employment hereunder and
for a period of one year after termination of such employment, which would relate in any way to the business of the Corporation
or any Affiliate of the Corporation, together with all rights to letters patent, copyrights or trademarks which may be granted
with respect thereto. Immediately upon making or developing any invention, discovery, trade secret or improvement thereto, Executive
shall notify the Corporation thereof and shall execute and deliver to the Corporation, without further compensation, such documents
as may be necessary to assign and transfer to the Corporation Executive’s entire right, title and interest in and to such
invention, discovery, trade secret or improvement thereto, and to prepare or prosecute applications for letters patent with respect
to the same in the name of the Corporation. Executive’s obligations under this Section 12 shall continue in effect, as to
inventions, discoveries and improvements covered by this Section 12, notwithstanding any termination of the employment or this
Agreement.

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13.        Noncompetition
and Nonsolicitation.

(a)       In
view of Executive’s importance to the success of the Corporation, Executive and Corporation agree that the Corporation would
likely suffer significant harm from Executive’s competing with Corporation during the Employment and for some period of time
thereafter. Accordingly, Executive agrees that Executive shall not engage in competitive activities either: (A) while employed
by Corporation; or (B) if Executive’s Employment is terminated during the term of this Agreement, during the Restricted Period
(as defined below). Executive shall be deemed to engage in competitive activities if he shall, without the prior written consent
of the Corporation, (i) in any county in which the Corporation has a branch office, ATM, loan processing center or any other facility,
and all contiguous counties, (including the municipalities therein), render services directly or indirectly, as an employee, officer,
director, consultant, advisor, partner or otherwise, for any organization or enterprise which competes directly or indirectly with
the business of Corporation or any of its Affiliates in providing financial products or services (including, without limitation,
banking, insurance, or securities products or services) to consumers and businesses, or (ii) directly or indirectly acquires any
financial or beneficial interest in (except as provided in the next sentence) any organization which conducts or is otherwise engaged
in a business or enterprise in any county in which the Corporation has a branch office, ATM, loan processing center or any other
facility, and all contiguous counties, (including all municipalities therein) which competes directly or indirectly with the business
of Corporation or any of its Affiliates in providing financial products or services (including, without limitation, banking, insurance
or securities products or services) to consumers and businesses. Notwithstanding the preceding sentence, Executive shall not be
prohibited from owning less than 1 percent of any class of publicly traded securities of a competitor. For purposes of this Section
13 the term “Restricted Period” shall equal twelve (12) months, commencing as of the date of termination of Executive’s
Employment during the term of this Agreement by the Corporation without Cause or by Executive without Good Reason before a Change
in Control or by either the Corporation or Executive for any reason after a Change in Control. For the avoidance of doubt, the
Restricted Period shall not apply following a termination of Executive’s Employment during the term of this Agreement by
the Corporation with Cause or by Executive with Good Reason.

(b)        While
employed by Corporation and during the Restricted Period, Executive agrees that Executive shall not, in any manner directly (i)
solicit by mail, by telephone, by personal meeting, or by any other means, any customer or prospective customer of Corporation
to whom Executive provided services, or for whom Executive transacted business, or whose identity become known to Executive in
connection with Executive’s services to Corporation (including employment with or services to any predecessor or successor
entities), to transact business with a person or an entity other than the Corporation or its Affiliates or reduce or refrain from
doing any business with the Corporation or its Affiliates or (ii) interfere with or damage (or attempt to interfere with or damage)
any relationship between Corporation or any of its Affiliates and any such customer or prospective customer, or any shareholder
of the Corporation. The term “solicit” as used in this Section 13 means any communication of any kind whatsoever, 

    	 	-12-	 

     

    

inviting,
encouraging or requesting any person to take or refrain from taking any action with respect to the business of Corporation or any
of its Affiliates.

(c)        While
employed by Corporation and during the Restricted Period, Executive agrees that Executive shall not, in any manner directly solicit
any person who is an employee of Corporation or any of its Affiliates to apply for or accept employment or a business opportunity
with any other person or entity.

(d)        The
parties agree that nothing herein shall be construed to limit or negate the common law of torts or trade secrets where it provides
broader protection than that provided herein.

(e)       If
Executive’s Employment is terminated during the term of this Agreement, Executive’s obligations under this Section
shall survive termination of this Agreement.

14.        Successors;
Binding Agreement.

(a)       This
Agreement shall not be terminated by any merger or consolidation of the Corporation whereby the Corporation is or is not the surviving
or resulting corporation or as a result of any transfer of all or substantially all of the assets of the Corporation. In the event
of any such merger, consolidation, or transfer of assets, the provisions of this Agreement shall be binding upon the surviving
or resulting corporation or the person or entity to which such assets are transferred.

(b)       The
Corporation agrees that concurrently with any merger, consolidation or transfer of assets constituting a Change in Control, it
will cause any successor or transferee unconditionally to assume, by written instrument delivered to Executive (or Executive’s
beneficiary or estate), all of the obligations of the Corporation hereunder. Failure of the Corporation to obtain such assumption
prior to the effective date of any Change in Control shall be a material breach of the Corporation’s obligations to Executive
under this Agreement.

(c)       This
Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If Executive shall die while any amounts would be payable to Executive
hereunder had Executive continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with
the terms of this Agreement to such person or persons appointed in writing by Executive to receive such amounts or, if no person
is so appointed, to Executive’s estate.

15.       Notice.
For purposes of this Agreement, all notices and other communications required or permitted hereunder shall be in writing and shall
be deemed to have been duly given when delivered or received by facsimile transmission or five (5) days after deposit in the United
States mail, certified and return receipt requested, postage prepaid, addressed as follows:

	 	If to the Corporation:	Chemical Financial Corporation
	 	 	Attn:CEO
	

    	 	-13-	 

     

    

	 	 	333 East Main Street, P.O. Box 569
	 	 	Midland, Michigan 48640-0569
	 	 	 
	 	If to Executive:	
        Robert S. Rathbun

        ________________

        ________________

 

Either party may change its address
for notices by notice to the other party.

16.       Amendment
and Waiver. No provisions of this Agreement may be amended, modified, waived or discharged unless the waiver, modification,
or discharge is authorized by the Corporation’s Board of Directors, or a committee of the Board of Directors, and is agreed
to in a writing signed by Executive and by the CEO. No waiver by either party at any time of any breach or non-performance of this
Agreement by the other party shall be deemed a waiver of any prior or subsequent breach or non-performance.

17.        Severability.
The invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of any other
provision of this Agreement, which will remain in full force and effect. If a court of competent jurisdiction ever determines that
any provision of this Agreement (including, but not limited to, all or any part of the non-competition covenant in this Agreement)
is unenforceable as written, the parties intend that the provision shall be deemed narrowed or revised in that jurisdiction (as
to geographic scope, duration, or any other matter) to the extent necessary to allow enforcement of the provision. The revision
shall thereafter govern in that jurisdiction, subject only to any allowable appeals of that court decision.

18.       Entire
Agreement. No agreements or representations, oral or otherwise, express or implied, with respect to Executive’s Employment
with the Corporation or any of the subjects covered by this Agreement have been made by either party that are not set forth expressly
in this Agreement, and this Agreement supersedes any pre-existing employment agreements and any other agreements on the subjects
covered by this Agreement; provided, however, except as expressly modified hereby, this Agreement shall not affect Executive’s
rights under any retirement and health and welfare plans in which Executive participates which are maintained by the Corporation
or its Affiliates.

19.        Governing
Law. The validity, interpretation, and construction of this Agreement are to be governed by Michigan laws, without regard to
choice of law rules. The parties agree that any judicial action involving a dispute arising under this Agreement will be filed,
heard and decided in the Midland County Circuit Court. The parties agree that they will subject themselves to the personal jurisdiction
and venue of either court, regardless of where Executive or the Corporation may be located at the time any action may be commenced.
The parties agree that the locations specified above are mutually convenient forums and that each of the parties conducts business
in Midland County.

20.       Section
409A. This Agreement is intended to be exempt from Section 409A of the Internal Revenue Code partially as an involuntary separation
pay plan as that term is understood under Treasury Regulation § 1.409A-1(b)(9) and partially as providing for short-term 

    	 	-14-	 

     

    

deferrals
as that term is understood under Treasury Regulation § 1.409A-1(b)(4) and shall be interpreted and operated consistently with
those intentions. To the extent Section 409A is found to be applicable to this Agreement, this Agreement is to be interpreted to
comply with Section 409A and shall be interpreted and operated consistently with those intentions, including but not limited to,
any applicable six-month delay in payment if Executive is a specified employee of the Corporation.

21.        Counterparts.
This Agreement may be signed in original or by fax in counterparts, each of which shall be deemed an original, and together the
counterparts shall constitute one complete document.

Signature Page to Follow

    	 	-15-	 

     

    

The parties made this Agreement effective as of the Effective Date
in Section 1.

 

 

	 	CHEMICAL BANK	 

 

	 	By	/s/ David B. Ramaker	 

	 	 	David B. Ramaker, Chairman, Chief Executive Officer and President

 

	 	Date:	8-31-16	 

 

 

 

	 	CHEMICAL FINANCIAL CORPORATION

 

	 	By	/s/ David B. Ramaker	 

	 	 	David B. Ramaker, Chairman, Chief Executive Officer and President

 

	 	Date:	8-31-16	 

 

 

 

	 	EXECUTIVE	 

 

	 	By	/s/ Robert S. Rathbun	 

	 	 	Robert S. Rathbun

 

	 	Date:	8-31-16	 

 

 

 

 

[signature page to Employment Agreement]

 

 

    	 	-16-Exhibit

Exhibit 10.4

SEPARATION AND RELEASE AGREEMENT

This Separation and Release Agreement (“Agreement”), dated this 29th day of December, 2016, is made by and between PRA GROUP, INC (“PRA”) and Michael J. Petit (“Employee”) (collectively the “Parties”).

RECITALS:

WHEREAS, Employee has been employed with PRA as the President, Insolvency Investment Services, pursuant to an Employment Agreement dated December 19, 2014 (“Employment Agreement”);

WHEREAS, the Employment Agreement contains various restrictive covenants, all of which survive Employee’s separation from service for any reason;

WHEREAS, the Parties to this Agreement desire to resolve any issues and/or potential claims arising out of the cessation of Employee’s employment in a mutually satisfactory and confidential manner and to reaffirm Employee’s post-employment restrictive covenants as set forth in the Employment Agreement.

AGREEMENT:

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein, and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Parties do hereby covenant and agree as follows:

		
	1.
	Termination of Employment and Severance Benefits.

A.    Employee’s employment with PRA will cease on February 6, 2017 (the “Termination Date”).

B.     Notwithstanding the foregoing, Employee at his request shall be placed on a voluntary administrative leave as of January 13, 2017 (the “Separation Date”) which shall continue up to the Termination Date.  While on voluntary administrative leave, Employee shall be relieved of his work duties, shall not attend or be present at any of the Company’s facilities, will not have access to any Company systems, and will not have the authority to act on behalf of the Company.  Additionally, while on voluntary administrative leave, Employee acknowledges that he will not be entitled to any additional wages and he will not accrue any additional benefits with the exception that Employee will remain on the Company’s health insurance plan, at the current coverage levels, and be entitled to receive any equity grants that vest on or before the Termination Date.  At the Termination Date, Employee will be eligible for Cobra Benefits.
  
C.    PRA agrees to pay Executive $1,800,000 as lump sum payment as a part of the Separation process (“Severance Payment”), provided that Employee does not revoke his acceptance of this Agreement pursuant to Section 13 herein.  Employee acknowledges and agrees that the Severance Payment shall be paid to him less any and all deductions and withholdings that PRA is required by law to make from wage payments, and in accordance with PRA’s regular payroll procedures.  PRA will pay the Severance Payment to Employee on January 27, 2017.

D.    Employee shall only be entitled to the Severance Payment as consideration for this Agreement.   All other compensation set forth in Section 4 of the Employment Agreement is hereby forfeited by Employee.  Additionally, any rights Employee may have to any employee benefit plans or programs of 

PRA shall be determined in accordance with the terms of such compensation arrangements or plans and programs or otherwise pursuant to applicable law.  

E.    Employee shall be entitled to continue his health insurance coverage through COBRA.  Executive will be required to pay for his COBRA coverage directly. A COBRA subsidy will be provided to the employee in the amount of $15,893 following the Termination Date.

F.    Employee acknowledges and agrees that the payments and performances described in this Agreement are all that he shall be entitled to receive from PRA as an employee, except for vested benefits, if any, to which he may be entitled under PRA’s ERISA employee benefit plans. 

G.    The Parties hereby incorporate herein the restrictive covenants set forth in the Employment Agreement at Sections 11 and 12; except that, the parties hereby agree that the definition of “Business”, as defined in the Employment Agreement be revised to only include “those businesses that are engaged (directly or indirectly) in the buying and/or servicing of insolvency or bankruptcy debt in the United States, Canada, United Kingdom and Germany”  (altogether the “Restrictive Covenants”) and Employee covenants that these restrictions are reasonable and do not affect his ability to earn a living.  Employee further acknowledges that this Agreement and its Severance Payment set forth herein are additional consideration to support the Restrictive Covenants and that the Restrictive Covenants will survive pursuant to the Employment Agreement even if Employee revokes his acceptance of this Agreement.  

		
	2.
	Consideration.

Employee hereby agrees and acknowledges that the Severance Payment provided for in Paragraph 1 of this Agreement is more than PRA is required to do under its normal employment policies and procedures and that it is in addition to anything of value to which he is entitled.

3.Complete Release.

Employee hereby knowingly and voluntarily releases and forever discharges PRA, any related companies, and the former and current employees, officers, agents, directors, shareholders, investors, attorneys, affiliates, successors and assigns of any of them (the “Released Parties”) from all liabilities, claims, demands, rights of action or causes of action Employee had, has or may have against any of the Released Parties through the date this Agreement is executed including, but not limited to, any claims or demands based upon or relating to Employee’s employment with PRA, the cessation of that employment, and the terms and conditions of the Employment Agreement.  The release provided for under this Paragraph 3 includes, but is not limited to, a release of any rights or claims Employee may have under Title VII of the Civil Rights Act of 1964, as amended, which prohibits discrimination in employment based on race, color, national origin, religion or sex; the Age Discrimination in Employment Act of 1967, which prohibits discrimination on the basis of age; the Americans with Disabilities Act, as amended, which prohibits discrimination against otherwise qualified disabled individuals; the Family and Medical Leave Act; or any other federal, state or local laws or regulations involving employment.  This release also includes, but is not limited to, a release by Employee of any claims against the Released Parties for wrongful discharge, breach of contract, or any other statutory, common law, tort, contract, or negligence claim that Employee had, has or may have against any of the Released Parties through the date this Agreement is executed.  This release covers both claims that Employee knows about and those claims he may not know about that occurred prior to the execution of this Agreement.

This release does not include, however, a release of rights, if any, to payment of vested benefits under the PRA’s ERISA employee benefit plans or the right, if any, to continuation in the PRA’s medical plans as provided by COBRA.

The Parties acknowledge and agree that this is a general release and it is to be broadly construed as a release by Employee of all claims; provided that notwithstanding the foregoing, this Agreement shall not be construed to prohibit the exercise of any rights by either party that such party may not waive or release as a matter of law or under applicable public policy.  Employee further acknowledges and agrees that he has been paid and/or received all compensation, commissions, wages, bonuses and/or benefits to which he is entitled except as provided for in this Agreement.

		
	4.
	No Future Lawsuits.

Employee promises never to file a lawsuit asserting any claims that are released in Paragraph 3 of this Agreement.  In the event Employee breaches this Paragraph 4, Employee shall immediately return to PRA any payments made under Paragraph 1 of this Agreement, and shall pay to PRA all of its expenses incurred as a result of such breach, including but not limited to, reasonable attorney’s fees and expenses.  Nothing within this Agreement shall be construed to prohibit Employee from filing any administrative complaints concerning his employment.  However, should Employee file such a claim he warrants and represents that he will not be entitled to any further relief.

5.Non-Release of Future Claims.

This Agreement does not waive or release any rights or claims that Employee may have that arise after the date he signs this Agreement.  

6.Disclaimer of Liability.

This Agreement and the payments and performances hereunder are made to assist Employee in making the transition from employment with PRA, and are not and shall not be construed to be an admission of liability, an admission of the truth of any fact, or a declaration against interest on the part of PRA.

7.Confidentiality.

 Employee covenants and agrees that he will not disclose to any person or organization the existence and terms of this Agreement itself or any discussions or negotiations related to or giving rise to this Agreement.  Notwithstanding the restrictions contained in this Paragraph 7, Employee will be permitted to make necessary disclosures to his spouse, attorneys and/or accountants concerning the terms of this Agreement, provided they agree to be bound by the terms of this promise of confidentiality and Employee takes all reasonable steps to ensure their compliance.  

8.Return of Information & Property.

Employee agrees to return by January 13, 2017  to PRA, and in good condition less ordinary wear and tear, all of PRA property in his possession or under his control including, but not limited to, all copies of all files and documentation (electronic and paper) relating to the PRA’s business.

9.No Claim for Reinstatement.

Employee agrees to waive and abandon any claim to reinstatement with PRA or any of its affiliated entities.  Employee further agrees not to apply for any position of employment with PRA in the future and agrees that this Agreement shall be sufficient justification for rejecting any such application.

10.Statements Regarding PRA and/or Employment.  

Employee agrees not to do or say anything that reasonably may be expected to have the effect of criticizing or disparaging PRA, any director of PRA, any of PRA’s employees, officers or agents, or diminishing 

or impairing the goodwill and reputation of PRA.  Employee further agrees not to assert that any current or former employee, agent, director or officer of PRA has acted improperly or unlawfully with respect to Employee or any other person regarding employment.  Notwithstanding the foregoing, nothing in this Agreement shall preclude Executive from complying with applicable law or government regulations.  

Nothing contained in this Agreement shall limit or restrict the Employee’s ability or right to report securities law violations to the Securities and Exchange Commission and any other federal agencies without PRA’s prior approval and without having to forfeit any resulting whistleblower award, if applicable.

		
	11.
	Defend Trade Secrets Act.

For purposes of the Confidential/Trade Secret Provisions of Employee’s Employment Agreement, previously incorporated herein at paragraph 1(f) Employee shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secrets if: (i) the disclosure of the trade secret is made in confidence to a government official, either directly or indirectly, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law; (ii) the disclosure of the trade secret is made in a complaint or other document filed in a lawsuit, if such filing is made under seal; or (iii) if an individual files a lawsuit alleging retaliation by an employer for reporting a suspected violation of law, if the disclosure of the trade secret is made to the attorney of the individual or used in the court proceeding so long as the filing of any document containing the trade secret is under seal and the trade secret is not disclosed except under court order.

12.Period for Review and Consideration of Agreement.

Employee understands that he has been given a period of twenty-one (21) days to review and consider this Agreement before signing it and Employee acknowledges that this Agreement was presented to him on November 18, 2016.  Employee further understands that he may use as much or as little of this 21-day period as he wishes prior to signing.  

		
	13.
	Encouragement to Consult with Attorney.

Employee is encouraged to consult with an attorney before signing this Agreement. Employee understands that whether or not to do so is his decision.

14.Employee’s Right to Revoke Agreement.

Employee may revoke this Agreement within seven (7) days of his signing it.  Revocation can be made by delivering a written notice of revocation to Christopher Lagow at the address set forth in Section 18 herein.  For this revocation to be effective, written notice must be received by Mr. Lagow no later than close of business on the seventh (7th) day after Employee signs this Agreement.  If Employee has not revoked the Agreement, the eighth (8th) day after Employee signs this Agreement shall be the “Effective Date” for purposes of this Agreement.

15.Invalid Provisions.

The invalidity or unenforceability of any particular provision of this Agreement shall not affect the validity or enforceability of any other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted.

16.Acknowledgment.

Employee acknowledges that he has signed this Agreement freely and voluntarily without duress of any kind.  Employee further acknowledges that he has conferred with an attorney or has knowingly and voluntarily chosen not to confer with an attorney about the Agreement.

17.Entire Agreement.

Except as specifically provided for herein, this Agreement contains the entire understanding of the Parties concerning the subjects it covers and it supersedes all prior understandings and representations of the Parties.  PRA has made no promises to Employee other than those set forth herein.  This Agreement may not be modified or supplemented except by a subsequent written agreement signed by all parties.

18.Notices.

All notices and other communications hereunder shall be in writing and shall be deemed to have been given if delivered personally or sent by facsimile transmission, overnight courier, or certified, registered or express mail, postage prepaid. Any such notice shall be deemed given when so delivered personally or sent by facsimile transmission (provided that a confirmation copy is sent by overnight courier), one day after deposit with an overnight courier or, if mailed, five days after the date of deposit in the United States mails, as follows (or to another address specified in writing by the recipient prior to the sending of such notice or communication):

If to the Company, to:                PRA Group, Inc.
150 Corporate Boulevard
Norfolk, Virginia 23502
Attn: General Counsel
Fax: (757) 321-2518

If to Employee, to:                [Intentionally Omitted]  

		
	19.
	Jointly Drafted

Employee and the Company have both participated in negotiating and drafting this agreement, so if any ambiguity arises, this Agreement is to be construed as if the parties had drafted it jointly.

		
	20.
	Successors; Binding Effect.

Except as otherwise provided herein, this Agreement shall be binding upon, and inure to the benefit of, PRA and its successors and assigns and Employee. "Successors and assigns" shall mean, in the case of PRA, any parent, subsidiary or affiliate of PRA or any successor to PRA pursuant to a merger, consolidation, sale or other transfer of all or substantially all of the assets or equity of PRA.

21.No Assignment:

Except as contemplated by Section 18 above, this agreement shall not be assignable or otherwise transferable by either party.

22.Fees and Expenses.

Either party may, at its own expense, institute an action or proceeding to enforce the rights the party may have under this Agreement, to obtain a declaration of a party's rights or obligations hereunder, to set aside any provision hereof, for damages by reason of any alleged breach of any provision of this Agreement, or for any other judicial remedy. In any such action or proceeding the prevailing party shall be entitled to reimbursement of all of its costs and expenses incurred in connection therewith, including, but not limited to, reasonable attorneys' fees and disbursements.

23.Governing Law.

This Agreement shall be governed by the laws of the Commonwealth of Virginia.  With the exception of any breach of the Restrictive Covenant by the Employee, the Parties Agree that any and all disputes, claims or controversies arising out of or related to this Agreement, shall be submitted to binding arbitration.  Unless the parties agree otherwise, any mediation and/or arbitration shall take place in Norfolk, Virginia, and shall be administered by, and pursuant to the rules of the American Arbitration Association and its rules for employment disputes.  PRA agrees to pay any filing fees and the cost of the arbitrator.

24.Section 409A of the Internal Revenue Code.

Any benefit, payment or other right provided for under this Agreement shall be provided or made in such manner, at such time, in such form and subject to such election procedures (if any) as complies with the applicable requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the "Code") and the regulations and other authority promulgated pursuant to Section 409A of the Code to avoid a failure described in Code Section 409A(a)(1), including, without limitation, deferring payment until the occurrence of a specified payment event described in Code Section 409A(a)(2). Accordingly, notwithstanding any other provision hereof or document pertaining hereto, (x) this Agreement shall be so construed and interpreted to meet all applicable requirements of Code Section 409A, and (y) without limiting the generality of the foregoing, but more specifically:

(a)    All references to a termination of employment and separation from service shall mean and be administered to comply with the definition of "separation from service" in Code Section 409A.

(b)    If Employee is a "specified employee" (as defined under Code Section 409A) at the time of separation from service, then to the extent that any amount payable under this Agreement constitutes "deferred compensation" under Code Section 409A (and is not otherwise excepted from Code Section 409A coverage, whether by virtue of being considered "separation pay" or a "short term deferral" or otherwise) and is payable to Employee based upon a separation from service (other than death or "disability" as defined under Code Section 409A), such amount shall not be paid until the first to occur of (i) the first day following the six-month anniversary of Employee's separation from service, or (ii) Employee's death.

(c)    All expense reimbursements provided for under this Agreement shall comply with Code Section 409A and shall be subject to the following requirements: (i) the amount of expenses eligible for reimbursement during Employee's taxable year may not affect the expenses eligible for reimbursement to be provided in another taxable year; (ii) the reimbursement of any eligible expense must be effected by December 31 following the taxable year in which the expense was incurred; and (iii) the right to reimbursement is not subject to liquidation or exchange for another benefit.

(d)    Any right to a series of installment payments shall be treated as a right to a series of separate payments for purposes of Code Section 409A.

PLEASE READ THIS AGREEMENT CAREFULLY.  IT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.  BY YOUR SIGNATURE BELOW, YOU ARE ACKNOWLEDGING THAT YOU HAVE READ THIS AGREEMENT, UNDERSTAND IT, AND ARE VOLUNTARILY ENTERING INTO IT.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the dates stated below.

Michael J. Petit

	
				
	December 30, 2016
	By:
	 
	/s/ Michael J. Petit

	 
	 
	 
	Michael J. Petit

PRA Group, Inc.

	
				
	December 30, 2016
	By:
	 
	/s/ Christopher D. Lagow

	 
	 
	 
	Christopher D. Lagow

	 
	 
	 
	Senior Vice President, General Counsel and Assistant Secretary

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