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EXHIBIT 10.24

July 7, 2020

Sandra Rowland
[ADDRESS ON FILE WITH THE COMPANY]

Dear Sandra:

We are pleased to present you with this offer of employment with Xylem Inc. (“Xylem”) for the position of Senior Vice President & Chief Financial Officer reporting directly to Patrick Decker, Xylem’s President and Chief Executive Officer. You will be based at our headquarters location in Rye Brook, NY. This offer is contingent upon the Board of Directors’ appointment of you as Chief Financial Officer which we expect to occur on or about July 22, 2020. Your start date will as mutually agreed thereafter.

•Base Salary: You will be compensated on a bi-weekly basis in the amount of $26,923.08 which is equivalent to $700,000 annually. Annual merit increases are normally scheduled for March of each year and are at the discretion of the Leadership Development and Compensation Committee of the Board (“LDCC”). You will be able to participate in the merit increase program beginning in 2021. This position is considered Exempt and not entitled to overtime compensation as provided by Federal Law.

•Incentive Plan: You will be eligible for participation in the Annual Incentive Plan (AIP) beginning with performance year 2020 according to the approved parameters of the plan and provided targets are met and approved by the LDCC. Your incentive target will be 80% of base salary. For 2020, you will be eligible for the full year (i.e. not pro-rated) incentive; approved incentive awards are typically paid in March based on performance from the previous calendar year.

•Annual Long-Term Incentive Plan: You will be eligible to participate in the Xylem Long-Term Incentive Plan (LTIP) and will have an annual target award of $1,700,000 to be provided as 50% Performance Share Units (PSUs), 25% Restricted Stock Units (RSUs) and 25% Stock Options. RSUs and Stock Options vest one-third after each year and the PSUs vest 100% after three years and payable based on the Company’s performance. Subsequent annual grants may vary based on individual performance and market competitiveness and are subject to approval by the LDCC.

Your first annual LTIP award will be made effective on the date of hire. In the event the date of hire is within a trading restriction period (e.g. insider black-out period), the RSU grant will be made on the first trading day following the lapse of the trading restriction. The vesting terms, performance targets and grant agreement will be consistent as other senior executives’ most recent annual LTIP award granted on February 27, 2020.

•Benefit Plans: A complete benefits package will be made available to you and your eligible dependents, which includes immediate enrollment in medical plans and subject to any enrollment waiting periods as defined by certain life insurance coverage plans. You will also be required to bring in the original birth certificate(s) for your dependent children (if applicable) and your marriage certificate (if applicable) if you wish to cover your dependents under any Xylem sponsored benefit program (i.e., health insurance). A benefits summary is attached for your reference. You will be scheduled for a comprehensive benefit orientation during your first week of employment.

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For purposes of our benefit plans, you will be considered a Band A Executive, including under the Xylem Senior Executive Severance Pay Plan and the Xylem Special Senior Executive Severance Pay Plan.

•Paid Time Off (PTO): Xylem provides Paid Time off (PTO) to benefits-eligible employees to enable time off from work for rest and relaxation and to balance their lives. Paid Time Off provides a single bank of hours employees can use for sick, vacation and/or other personal reasons. You will accrue paid time off at the bi-weekly accrual rate of 7.08 hours per pay period (equivalent to 23 days annually) beginning on your date of hire and is based on total eligible hours worked and/or utilized during each pay period. Below is the PTO accrual schedule for completed years of service.

																					
	Completed Years of Service		Bi-Weekly
Accrual Rate
(Full-Time)		Equivalent Days Annually 
(Full-Time)		Hourly Accrual Rates
	Senior Exec, New Hire		7.08 hours		23 days (184 hours)		0.089
	15		7.70 hours		25 days (200 hours)		0.097
	25		9.24 hours		30 days (240 hours)		0.116

•Holidays: Xylem recognizes twelve paid holidays per calendar year for eligible employees. Some of these are floating holidays, which may be assigned and are pro-rated based upon date of hire.

As with all new hires, this offer is contingent on the verification of credentials and other information, including the completion of a criminal history check and, if applicable a credit history check. Your employment is also dependent upon a satisfactory pre-employment drug screening, yet in light of the current COVID-19 circumstances, we are suspending the drug screening requirement. Your employment is also contingent upon satisfactory completion of a customary directors and officers questionnaire. We also require presentation of documentation verifying your identity and legal ability to work in the United States (I-9). A form describing the verification requirements and information needed for documentation is enclosed. The information must be provided within three (3) days of your hire date.

Additionally, your employment is contingent on your not having entered into a signed agreement with a previous employer that contains a non-competition clause that might affect your ability to accept employment with Xylem. If you have entered into such an agreement, please forward a copy of it to me so we can do a legal review from our side. Your employment and compensation with Xylem are “at will” in that they can be terminated with or without cause, and with or without notice, at any time, at the option of either the Company or yourself. This offer does not constitute a contract of employment or an agreement for a definite or specified period of employment.

At Xylem, our corporate compass is our Code of Conduct. We are committed to conducting business according to the highest ethical standards, treating all employees with respect, creating fair workplaces, and ensuring that our co-workers help us strengthen and protect our reputation as a great employer, business partner and community member. Our Code of Conduct sets the rules that outline the appropriate business conduct and expected behaviors of all our employees. Each employee will take a required training within three (3) days of their hire date.

Enclosed with this offer is our Business Proprietary Information Agreement, please review this document carefully, and sign and return a copy along with your acceptance of our offer.

Sandra, we are confident you will contribute a great deal to our organization and look forward to having you join the team. Please acknowledge your acceptance of our offer as per terms above, by signing a copy of this letter and sending a scanned copy back to me at Kairus.Tarapore@xyleminc.com no later than July 17, 2020.
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Sincerely,

/s/ Kairus Tarapore
Kairus Tarapore
SVP & Chief Human Resources Officer

The above offer is accepted subject to the foregoing conditions.

									
	/s/ Sandra Rowland		July 13, 2020
	Sandra Rowland		Date

Cc: Patrick Decker

Enclosures
•Business Proprietary Information Agreement
•Xylem 2020 Employee Benefits Summary
•Xylem Retirement Savings Plan and Supplemental Retirement Savings Plan Quick Reference
•Xylem Stock Ownership Guidelines
•Xylem Senior Executive Severance Pay Plan
•Xylem Special Senior Executive Severance Pay Plan
•Xylem 2020 Executive Compensation Brochure
•2020 Equity Grant Agreements
3fusb-ex101_7.htm

Exhibit 10.1

FIRST US BANCSHARES, INC. 

2021 CASH INCENTIVE PROGRAM

 

1.Purpose and Administration of the 2021 Cash Incentive Program.  The First US Bancshares, Inc. 2021 Cash Incentive Program (the “2021 Cash Incentive Program”) has been established by First US Bancshares, Inc. (together with its subsidiaries, the “Company”) to encourage and reward outstanding performance from its executive officers and certain other key employees by making a portion of their cash compensation dependent on the achievement of certain performance objectives.  Subject to applicable law, all designations, determinations, interpretations and other decisions under or with respect to the 2021 Cash Incentive Program or any bonus award hereunder shall be within the sole and absolute discretion of the Compensation Committee (the “Compensation Committee”) of the Board of Directors (the “Board”) of the Company, may be made at any time and shall be final, conclusive and binding upon all persons.  Designations, determinations, interpretations and other decisions made by the Compensation Committee with respect to the 2021 Cash Incentive Program or any bonus award hereunder, including, but not limited to, the application of the recoupment policy described herein, need not be uniform and may be made selectively among Eligible Participants, whether or not such Eligible Participants are similarly situated.

2.Participation.  All executive officers and certain other key employees of the Company are eligible to receive a bonus award pursuant to the 2021 Cash Incentive Program (each, an “Eligible Participant”).  Each Eligible Participant selected by the Compensation Committee to receive a bonus award under the 2021 Cash Incentive Program is referred to herein as a “Participant.”

3.Calculation and Payment of Awards. 

Target Awards.  The target bonus award payable to each Participant under the 2021 Cash Incentive Program shall be determined by the Compensation Committee based on the performance objectives, or key performance indicators, set forth on Schedule A hereto (the “Performance Goals”).  The Performance Goals are designed to provide market competitive payout percentages for their achievement.

Award Calculation.  The bonus awards to be paid pursuant to the 2021 Cash Incentive Program (each, an “Award”) shall be calculated based on the Performance Goals.  As soon as practicable following the end of the 2021 fiscal year, the Compensation Committee shall determine and certify whether and to what extent the Performance Goals have been met, as well as the amount of the Award that each Participant has earned under the 2021 Cash Incentive Program.

Payment of Awards.  Awards pursuant to the 2021 Cash Incentive Program will be paid solely in cash.  All amounts due to Participants under the 2021 Cash Incentive Program shall be paid as soon as administratively feasible after the end of the 2021 fiscal year, and, in any event, no later than March 15, 2022.  Except as the Compensation Committee may otherwise determine in its sole and absolute discretion, termination of a Participant’s employment prior to the end of the 2021 fiscal year will result in the forfeiture of the Award by the Participant, and no payments shall be made with respect thereto.  

Withholding.  The 2021 Cash Incentive Program is not a “qualified” plan for federal income tax purposes, and any payments are subject to applicable tax withholding requirements.

4.Adjustments for Extraordinary, Unusual or Nonrecurring Events.  The Compensation Committee, in its sole discretion, may make adjustments in the terms and conditions of, and the Performance Goals included in, bonus awards under the 2021 Cash Incentive Program in recognition of extraordinary, unusual or nonrecurring events affecting any Participant, the Company or the financial statements of the Company (including, but not limited to: corporate transactions; restructuring and/or other nonrecurring charges; unusual, nonrecurring gain or loss; branch activity; and other business conditions); in the event of changes in applicable laws, regulations or accounting principles; or in the event that the Compensation Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the 2021 Cash Incentive Program.  The Compensation Committee, in its sole discretion, may take into account the impact of such extraordinary, unusual or nonrecurring events (positive or negative) in determining a Participant’s relative achievement of the Performance Goals.  The Compensation Committee may also adjust performance targets 

 

 

or bonus awards downward to avoid unwarranted windfalls.  The Compensation Committee shall endeavor, but shall not be required, to apply equally to all Participants any such adjustments or determinations.

5.Recoupment Policy.  The Company may recover from any Participant any incentive compensation awarded or paid pursuant to the 2021 Cash Incentive Program based on (i) achievement of financial results that were subsequently the subject of a restatement due to material noncompliance with any financial reporting requirement under either GAAP or the federal securities laws, other than as a result of changes to accounting rules and regulations, or (ii) a subsequent finding that the financial information or the Performance Goals used by the Compensation Committee to determine the amount of the incentive compensation were materially inaccurate, in each case regardless of individual fault.  In addition, the Company may recover any incentive compensation awarded or paid pursuant to the 2021 Cash Incentive Program based on a Participant’s conduct that is not in good faith and that materially disrupts, damages, impairs or interferes with the business of the Company.  This recoupment policy applies to any incentive compensation earned or paid to a Participant pursuant to the 2021 Cash Incentive Program.  Subsequent changes in status, including retirement or termination of employment, do not affect the Company’s rights to recover compensation under this recoupment policy.  The Compensation Committee will administer this recoupment policy and exercise its discretion and business judgment in the fair application of this recoupment policy based on the facts and circumstances as it deems relevant in its sole and absolute discretion.  More specifically, the Compensation Committee shall determine in its sole and absolute discretion any appropriate amounts to recoup, the Participants from whom such amounts shall be recouped (which need not be all Participants who received the incentive compensation at issue) and the timing and form of recoupment; provided, however, that only incentive compensation paid or settled within three years prior to the Compensation Committee taking action under this Section 5 shall be subject to recoupment; provided further, that any recoupment pursuant to clause (i) or clause (ii) of the first sentence of this paragraph shall not exceed the portion of any applicable incentive compensation paid hereunder that is in excess of the amount of performance-based or incentive compensation that would have been paid or granted based on the actual, restated financial statements or actual level of the applicable financial or performance objectives as determined by the Compensation Committee in its sole and absolute discretion.

For avoidance of doubt, the Company may set off the amounts of any such required recoupment against any amounts otherwise owed by the Company to a Participant as determined by the Compensation Committee in its sole and absolute discretion, solely to the extent that any such offset complies with the requirements of Section 409A of the Internal Revenue Code, as amended (the “Code”), and the guidance issued thereunder.

If any restatement of the Company’s financial results indicates that the Company should have made higher performance-based payments than those actually made under the 2021 Cash Incentive Program for the period affected by the restatement, then the Compensation Committee shall have the discretion, but not the obligation, to cause the Company to make appropriate incremental payments to affected Participants then-currently employed by the Company.  The Compensation Committee will determine, in its sole and absolute discretion, the amount, form and timing of any such incremental payments, which shall be no more than the difference between the amount of performance-based compensation that was paid or awarded and the amount that would have been paid or granted based on the actual, restated financial statements.

6.No Right to Employment.  The grant of an Award under the 2021 Cash Incentive Program shall not be construed as giving a Participant the right to be retained in the employ of the Company.

7.Non-transferability.  A person’s rights and interests under the 2021 Cash Incentive Program, including any Award previously made to such person or any amounts payable under the 2021 Cash Incentive Program, may not be assigned, pledged or transferred, except in the event of the Participant’s death to a designated beneficiary or, in the absence of such designation, by will or the laws of descent or distribution.

8.No Trust or Fund Created.  Neither the 2021 Cash Incentive Program nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company and a Participant or any other person.  To the extent that any person acquires a right to receive payments from the Company pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company.

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9.No Rights to Awards.  No person shall have any claim to be granted any Award, and there is no obligation for uniformity of treatment among Participants.  The terms and conditions of Awards, if any, need not be the same with respect to each Participant. 

10.Compliance with Legal Requirements.  The 2021 Cash Incentive Program and the granting of Awards shall be subject to all applicable federal and state laws, rules and regulations, and to such approvals by any regulatory or governmental agency as may be required.

11.Section 409A of the Internal Revenue Code.  It is intended that payments under the 2021 Cash Incentive Program qualify as short-term deferrals exempt from the requirements of Section 409A of the Code.  In the event that any Award does not qualify for treatment as an exempt short-term deferral, it is intended that such amount will be paid in a manner that satisfies the requirements of Section 409A of the Code.  The 2021 Cash Incentive Program shall be interpreted and construed accordingly.  

12.Amendment or Termination of the 2021 Cash Incentive Program.  The Compensation Committee may, at any time, amend, suspend or terminate the 2021 Cash Incentive Program, in whole or in part, and if suspended or terminated, may reinstate the 2021 Cash Incentive Program, in the Compensation Committee’s sole and absolute discretion.

13.Interpretation and Governing Law.  The 2021 Cash Incentive Program shall be governed by and interpreted and construed in accordance with the internal laws of the State of Delaware, without reference to principles of conflicts or choices of laws.  In the event that the terms of the 2021 Cash Incentive Program are inconsistent with the terms of any written agreement between a Participant and the Company, the terms of such written agreement shall govern the Participant’s participation in the 2021 Cash Incentive Program.

 

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Schedule A

 

Performance Objectives

 

The cash bonus opportunity is based on the achievement of certain specified levels of financial performance of the Company, as well as an individual discretionary component.  The performance objectives, as well as the weightings for each of the objectives, are set forth in the following table.  Each Participant’s cash incentive payment is subject to reduction (up to 35% of the total cash bonus opportunity) based on deterioration of the Company’s regulatory ratings or other negative regulatory findings

				
	
Performance Objective
	
Weighting for James F.  House
	
Weighting for Thomas S. Elley
	
Weighting for William C.  Mitchell

	
Consolidated pre-tax income
	
25.0%
	
25.0%
	
25.0%

	
Consolidated pre-tax return on average assets (“ROAA”) 
	
30.0%
	
30.0%
	
25.0%

	
Consolidated pre-tax return on average tangible equity (“ROATE”)
	
25.0%
	
25.0%
	
0.0%

	
Net loan growth in indirect lending (“Loan Growth”)
	
0.0%
	
0.0%
	
30.0%

	
Discretionary Component1
	
20.0%
	
20.0%
	
20.0%

	
     Total
	
100.0%
	
100.0%
	
100.0%

	
Potential reduction based on deterioration of the Company’s regulatory ratings or other regulatory findings
	
(35.0%)
	
(35.0%)
	
(35.0%)

	
	 

	
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 Factors considered in determining the Discretionary Component may include, but are not limited to, contribution to the long-term profitability and growth of the Company, achievement of strategic projects or initiatives, commitment to integrity and the values of the Company, improvement in total shareholder return, successful expansion efforts, balance sheet management, gains on peer group comparisons, successful implementation of reorganization strategies and successful implementation of cost control strategies.

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The individual threshold, target and maximum bonus opportunities for the Company’s executive officers participating in the 2021 Cash Incentive Program are as follows:

				
	
Name
	
Threshold

(% of Base Salary)
	
Target

(% of Base Salary)
	
Maximum

(% of Base Salary)

	
James F. House
	
22.5%
	
45.0%
	
67.5%

	
Thomas S. Elley
	
17.5%
	
35.0%
	
52.5%

	
William C. Mitchell
	
17.5%
	
35.0%
	
52.5%

 

Under the 2021 Cash Incentive Program, the Company’s named executive officers will receive 100% of their target bonus opportunity if the Company’s final consolidated pre-tax income, ROAA, ROATE and Loan Growth for 2021 are 100% of the Company’s budgeted consolidated pre-tax income, ROAA, ROATE (for Messrs. House and Elley) and Loan Growth (for Mr. Mitchell) for the year, and if the named executive officers receive 100% of the Discretionary Component.  The named executive officers will receive 50% of their target bonus opportunity if the Company achieves a threshold level of performance (approximately 70% of the Company’s budgeted consolidated pre-tax income, 70% of the Company’s budgeted ROAA, 70% of the Company’s budgeted ROATE (for Messrs. House and Elley), and 70% of the Company’s budgeted Loan Growth (for Mr. Mitchell)), and if the named executive officers receive 80% of the Discretionary Component.  The named executive officers will receive 150% of their target bonus opportunity if the Company achieves a maximum level of performance (approximately 120% of the Company’s budgeted consolidated pre-tax income, 120% of the Company’s budgeted ROAA, 120% of the Company’s budgeted ROATE (for Messrs. House and Elley) and 120% of the Company’s budgeted Loan Growth (for Mr. Mitchell)), and if the named executive officers receive 120% of the Discretionary Component.

The performance objectives and relative weightings for the Company’s other executive officers – Eric H. Mabowitz, Executive Vice President, Chief Risk Officer, of the Bank, and Beverly J. Dozier, Vice President, Secretary and Assistant Treasurer of the Company and Senior Vice President, Corporate Secretary, Thomasville Market Executive, of the Bank – are identical to those for Mr. House and Mr. Elley.  The individual threshold, target and maximum bonus opportunities for Mr. Mabowitz and Ms. Dozier are 15%, 30% and 45% of base salary, respectively.

 

Payouts between the threshold and maximum amounts will be calculated by the Compensation Committee using straight-line interpolation.

 

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