Document:

Exhibit 10.1

 

AGREEMENT OF IRREVOCABLE UNDERTAKING

 

To:   Ensco plc (“Ensco”) 

 

January 28, 2019

 

Acquisition of Rowan Companies plc (“Rowan”)

 

We the undersigned understand that Ensco is considering the Acquisition substantially on the terms and conditions set out or referred to in the transaction agreement entered into between Ensco and Rowan dated October 7, 2018 with such amendments as are necessary to implement an increase in the exchange ratio of Class A ordinary shares of $0.10 each in the capital of Ensco (“Ensco Ordinary Shares”) for each Class A ordinary share of $0.15 in the capital of Rowan (“Rowan Ordinary Shares”) held at completion of the Acquisition from 2.215 to 2.75 (as so amended, the “Transaction Agreement”).

 

All references in this undertaking to the “Acquisition” shall:

 

(i)            mean the proposed acquisition by or on behalf of Ensco or a company nominated by Ensco (an “Ensco Nominee”)  of all of the outstanding Rowan Ordinary Shares (in consideration for the issue of 2.75 Ensco Ordinary Shares for each Rowan Ordinary Share held at completion of the Acquisition (the “Revised Consideration”)), to be implemented by way of a scheme of arrangement (under Part 26 of the Companies Act 2006) of the all of the outstanding Rowan Ordinary Shares (referred to in this undertaking as the “Scheme”) and, if made by or on behalf of an Ensco Nominee, all references to “Ensco” shall be deemed to include that Ensco Nominee; and

 

(ii)           include any revision or variation in the terms of any acquisition as referred to in paragraph (i) above except as to any reduction in the Revised Consideration from 2.75 Ensco Ordinary Shares for each Rowan Ordinary Share.

 

We understand that, for the purposes of implementing the Acquisition, Ensco shareholders will be required to vote to approve an ordinary resolution authorising the allotment and issuance of Ensco Ordinary Shares pursuant to the Transaction Agreement (the “Transaction Consideration Allotment Resolution”).  We understand that completion of the Acquisition will be conditional upon, among other things, approval of the Transaction Consideration Allotment Resolution by Ensco shareholders.

 

We further understand that, for the purposes of implementing the Acquisition, Ensco will convene a shareholders’ meeting (such meeting, including any adjournment or postponement thereof, being the “Ensco General Meeting”) to consider and, if thought fit, approve the Transaction Consideration Allotment Resolution and any other resolutions considered necessary or desirable in connection with the Acquisition.

 

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In consideration of Ensco agreeing to consider proceeding with the Acquisition at the Revised Consideration and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), we hereby agree as follows:

 

1.             Warranties and undertakings

 

We irrevocably and unconditionally undertake, represent and warrant to Ensco that:

 

(i)            we are the beneficial owner of (or are otherwise able to control the exercise of all rights attaching to, including voting rights and the ability to procure the transfer of), and/or are the registered holder of: (a) the number of Rowan Ordinary Shares set out in Schedule 1 (the “Rowan Shares”, which expression shall include any other shares in Rowan issued after the date hereof and attributable to or derived from such shares); and (b) the number of Ensco Ordinary Shares set out in Schedule 1 (the “Ensco Shares”, which expression shall include any other shares in Ensco issued after the date hereof and attributable to or derived from such shares) (Rowan Shares and Ensco Shares together being the “Shares”);

 

(ii)           we are not interested in any shares or other securities of Rowan or Ensco other than those of which details are set out below;

 

(iii)          we are able to transfer the Shares free from all liens, equities, charges, encumbrances, options, rights of pre-emption, and any other third party rights and interests of any nature;

 

(iv)          we shall not prior to the earlier of the Acquisition closing or the Transaction Agreement being terminated in accordance with its terms (“Termination”):

 

(a)           sell, transfer, charge, encumber, grant any option over or otherwise dispose of or permit the sale, transfer, charging or other disposition or creation or grant of any other encumbrance or option of or over all or any of such Shares or interest in such Shares (except, in the case of the Rowan Shares, under the Acquisition), or accept any other offer in respect of all or any of such Shares; or

 

(b)           (other than pursuant to the Acquisition) enter into any agreement or arrangement or permit any agreement or arrangement (in each case, whether or not conditional and whether to take effect before or after closing of the Acquisition or Termination) to be entered into or incur any obligation or permit any obligation to arise:

 

(I)           in relation to, or operating by reference to, shares or other securities of Rowan or Ensco; or

 

(II)          to do all or any of the acts referred to in paragraph (a) above; or

 

(III)        which would or might restrict or impede the closing of the Acquisition;

 

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(v)           prior to the earlier of the Acquisition closing or Termination, we shall not, without the consent of Ensco, convene or requisition, or join in convening or requisitioning, any general or class meeting of Rowan or Ensco;

 

(vi)          we shall not: directly or indirectly solicit or encourage any person other than Ensco to make any offer for any shares or other securities of Rowan; or directly or indirectly solicit or encourage any person to make any offer for any shares or other securities of Ensco; or take any action which is or may be prejudicial to the successful outcome of the Acquisition or which would or might have the effect of preventing any of the conditions of the Acquisition from being fulfilled; and we will immediately inform you of any approach by a third party which may lead to an offer for Rowan or Ensco;

 

(vii)         prior to the earlier of the Acquisition closing  or Termination, we agree that any shares, securities or interest therein acquired by us or by our affiliates shall be deemed to be included in the expression “Ensco Shares” or “Rowan Shares” (as the case may be) for the purposes of this undertaking; and

 

(viii)        we have full power and authority and the right (free from any legal or other restrictions), and will at all times continue to have all relevant power and authority and the right, to enter into and perform our obligations under this undertaking in accordance with their terms.

 

2.             Scheme

 

We irrevocably and unconditionally undertake, if the Acquisition is implemented by way of the Scheme, to Ensco that:

 

(i)            we shall exercise, or, where applicable, procure the exercise of, all voting rights attaching to Rowan Shares as follows on any resolution (whether or not amended and whether put on a show of hands or a poll) which is proposed at any general meeting of Rowan (including any adjournment or postponement thereof) (the “Rowan General Meeting”) or at any meeting of holders of shares in Rowan convened by a Court (including any adjournment or postponement thereof) (“Court Meeting”) which:

 

(a)           is necessary to implement the Acquisition, in favour of the resolution;

 

(b)           might reasonably be expected to have any positive impact on the fulfilment of any condition to the Acquisition, in favour of the resolution;

 

(c)           might reasonably be expected to impede or frustrate the Acquisition in any way (which shall include any resolution to approve a scheme of arrangement relating to the acquisition of any shares in Rowan by a third party), against the resolution; or

 

(d)           might otherwise impact on the success of the Acquisition, only in accordance with Ensco’s instructions;

 

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(ii)           we shall exercise, or, where applicable, procure the exercise of, all rights attaching to Rowan Shares to requisition or join in the requisitioning of any general meeting of Rowan for the purposes of voting on any resolution referred to under paragraph (i) above, or to require Rowan to give notice of any such meeting, only in accordance with Ensco’s instructions;

 

(iii)          for the purpose of voting on any resolution referred to under paragraph (i) above, we shall, if required by Ensco, execute any form of proxy required by Ensco appointing any person nominated by Ensco to attend and vote at the relevant meetings; and

 

(iv)          without prejudice to paragraph (iii),

 

and in the absence of any such requirement by Ensco,

 

we shall after the posting of any proxy statement

 

(including any supplement or amendment to the joint proxy statement dated 11 December 2018 which was first mailed or otherwise delivered to Ensco shareholders and Rowan shareholders on or about 12 December 2018)

 

to be sent to shareholders of Rowan and/or Ensco concerning the Acquisition (the “Proxy Statement”)

 

(and without prejudice to any right we have to attend and vote in person at the Court Meeting and the General Meeting to implement the Acquisition)

 

return, or procure the return of, if applicable, the signed forms of proxy enclosed with the Proxy Statement (completed and signed and voting in favour of the resolutions to implement the Acquisition) in accordance with the instructions printed on those forms of proxy and, if applicable, take or procure the taking of any action which may be required by Rowan or its nominated representative in order to make a valid proxy appointment and give valid proxy instructions (voting in favour of the resolutions to implement the Acquisition), as soon as possible and in any event within seven days after the posting of the Proxy Statement.

 

3.             Ensco General Meeting

 

We irrevocably and unconditionally undertake to Ensco that:

 

(i)            we shall exercise, or, where applicable, procure the exercise of, all voting rights attaching to Ensco Shares as follows on any resolution (whether or not amended and whether put on a show of hands or a poll and including, for the avoidance of doubt, the Transaction Consideration Allotment Resolution) which is proposed at the Ensco General Meeting which:

 

(a)           is necessary to implement the Acquisition, in favour of the resolution;

 

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(b)           might reasonably be expected to have any positive impact on the fulfilment of any condition to the Acquisition, in favour of the resolution; or

 

(c)           might otherwise impact on the success of the Acquisition, only in accordance with Ensco’s instructions;

 

(ii)           for the purpose of voting on any resolution referred to under paragraph (i) above, we shall, if required by Ensco, execute any form of proxy required by Ensco appointing any person nominated by Ensco to attend and vote at the relevant meetings; and

 

(iii)          without prejudice to paragraph (iii), and in the absence of any such requirement by Ensco, we shall after the posting of any Proxy Statement (and without prejudice to any right we have to attend and vote in person at the Ensco General Meeting to implement the Acquisition), return, or procure the return of, if applicable, the signed forms of proxy enclosed with the Proxy Statement (completed and signed and voting in favour of the Transaction Consideration Allotment Resolution and any other resolutions to implement the Acquisition) in accordance with the instructions printed on those forms of proxy and, if applicable take or procure the taking of any action which may be required by Ensco or its nominated representative in order to make a valid proxy appointment and give valid proxy instructions (voting in favour of the Transaction Consideration Allotment Resolution and any other resolutions to implement the Acquisition), as soon as possible and in any event within seven days after the posting of the Proxy Statement.

 

4.             Miscellaneous

 

(i)            The obligations and provisions set out in this undertaking apply equally to the persons from whom we are to procure votes in favour of the resolutions to implement the Acquisition pursuant to paragraphs 2(i) and 3(i) above and we shall procure the observance by such persons of the terms hereof as if they were each specifically a party hereto.

 

(ii)           We consent to the issue of any announcement incorporating references to us and to this undertaking made by Ensco or Rowan in connection with the Acquisition.  We understand that, if the Acquisition proceeds, the particulars of this undertaking may be contained in the Proxy Statement or in any other document or announcement required in connection with the Acquisition by Ensco or Rowan.  We undertake to provide you with all such further information in relation to our interest and that of any person connected with us as you may require in order to comply with the rules and requirements of the U.S Securities and Exchange Commission, the New York Stock Exchange, the Companies Act 2006 and any other legal or regulatory requirements for inclusion in the Proxy Statement (or any other document or announcement required in connection with the Acquisition).

 

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(iii)          We undertake to publicly support the Acquisition and shall, within 24 hours of Ensco publicly announcing the Acquisition, publicly issuein a form agreed with Ensco, a press release stating that we support the Acquisition and that we shall vote or, where applicable, procure the voting of, Rowan Shares in favour of the Acquisition at the Rowan General Meeting and the Court Meeting and vote, or where applicable, procure the voting of, Ensco Shares in favour of the Acquisition at the Ensco General Meeting.

 

(iv)          We shall refrain from any act, filings or statements that would reasonably be expected to adversely affect the Acquisition.

 

(v)           We shall use reasonable endeavours to assist Ensco and/or Rowan at such time and in such ways as Ensco may reasonably request to secure a recommendation in favour of the Acquisition by proxy advisory services (including Institutional Investor Services (“ISS”) and Glass Lewis) and by institutional investors in Ensco and/or Rowan provided that we shall not be obliged to incur any non-de-minimis out of pocket costs or expenses for such purpose.  Without prejudice to our obligations set out in the preceding sentence, within 24 hours of Ensco announcing the Acquisition we shall contact ISS: to confirm our support for the Acquisition; to confirm that we shall vote or, where applicable, procure the voting of, Rowan Shares in favour of the Acquisition at the Rowan General Meeting and the Court Meeting and vote, or where applicable, procure the voting of, Ensco Shares in favour of the Acquisition at the Ensco General Meeting; and to encourage ISS to publicly state that it firmly recommends the Acquisition.

 

(vi)          This undertaking shall not oblige Ensco to proceed with the Acquisition but shall cease to have any effect:

 

(a)           if Ensco shall not have announced an intention to proceed with the Acquisition (for the avoidance of doubt, at the Revised Consideration) by 8.00 a.m. (New York time) on Tuesday January 29, 2019; or

 

(b)           on the date of Termination.

 

This undertaking shall terminate and we shall cease to be bound by the obligations in this undertaking if the consideration for the issue of Ensco Ordinary Shares for each Rowan Ordinary Share is reduced from 2.75 Ensco Ordinary Shares for each Rowan Ordinary Share.

 

(vii)         We agree that, if we fail to comply with any of the undertakings contained herein, damages may not be an adequate remedy and accordingly Ensco may be entitled to the remedies of specific performance, injunction or other equitable relief.

 

(viii)        This undertaking shall be governed by and construed in accordance with English law.  Any matter, claim or dispute, whether contractual or non-contractual, arising out of or in connection with this undertaking is to be

 

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governed by and determined in accordance with English law and shall be subject to the exclusive jurisdiction of the English courts.

 

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Yours faithfully,

 

	
 
    	
 
    
	
/s/ Massey Roborough, Partner
    	
 
    
	
 
    	
 
    
	
On behalf of Odey Asset Management LLP as   investment manager for
    	
 
    
	
 
    	
 
    
	
Odey Investments plc — Odey Absolute Return   (Irl) Fund
    	
 
    
	
Odey Investments plc — Odey Swan Fund
    	
 
    
	
LF Odey Funds — LF Odey Absolute Return   Fund
    	
 
    
	
LF Odey Investment Funds — LF Odey Opus   Funds
    	
 
    
	
Odey Investment Funds plc — Odey Allegra   International Fund
    	
 
    
	
Odey Investments   Funds — Odey Allegra Developed Markets Fund
    
	
Odey Investment Funds plc — Odey Pan   European Fund,
    	
 
    
	
Fedex Corporation Employees’ Pension Trust
    	
 
    
	
Odey European Inc.
    	
 
    
	
OEI Mac Inc.
    	
 
    
	
Odey Master ICAV — Odey Absolute Return   Focus Fund
    	
 
    

 

8

 

We acknowledge and agree to the terms of this undertaking.

 

	
/s/ Carl G. Trowell
    	
 
    
	
Name: Carl G. Trowell (President and Chief   Executive Officer)
    	
 
    
	
 
    	
 
    
	
On behalf of Ensco plc
    	
 
    
	
 
    	
 
    
	
Date
    	
 
    
	
 
    	
 
    
	
28/1/2019
    	
 
    

 

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Schedule 1
 The Shares

 

Ensco Shares

 

* Registered holder: Odey Investments plc — Odey Absolute Return (Irl) Fund, LF Odey Funds — LF Odey Absolute Return Fund

 

* Beneficial holder: Odey Investments plc — Odey Absolute Return (Irl) Fund, LF Odey Funds LF Odey Absolute Return Fund

 

Number of shares: 422,500

 

Rowan Shares

 

* Registered holder: Odey Investment Funds plc — Odey Allegra International Fund, Odey  Master ICAV — Odey Absolute Return Focus Fund, Odey Investments Funds — Odey Allegra  Developed Markets Fund, Odey Investments plc — Odey Absolute Return (Irl) Fund, LF Odey  Funds — LF Odey Absolute Return Fund, Fedex Corporation Employees’ Pension Trust, Odey  European Inc., OEI Mac Inc., Odey Investment Funds plc — Odey Pan European Fund, LF Odey  Investment Funds — LF Odey Opus Funds, Odey Investments plc — Odey Swan Fund

 

* Beneficial holder: Odey Investment Funds plc — Odey Allegra International Fund, Odey  Master ICAV — Odey Absolute Return Focus Fund, Odey Investments Funds — Odey Allegra  Developed Markets Fund, Odey Investments plc — Odey Absolute Return (Irl) Fund, LF Odey  Funds — LF Odey Absolute Return Fund, Fedex Corporation Employees’ Pension Trust, Odey  European Inc., OEI Mac Inc., Odey Investment Funds plc — Odey Pan European Fund, LF Odey  Investment Funds — LF Odey Opus Funds, Odey Investments plc — Odey Swan Fund

 

Number of shares: 11,380,635

 

10Exhibit

Exhibit 10.1

ATTACHMENT A  

SEPARATION AND RELEASE AGREEMENT

This Separation and Release Agreement (“Agreement”) is between Mary M. Kleiman (“Kleiman" or “Employee”) and Federal Home Loan Bank of Indianapolis, its parent, subsidiary and affiliated companies or entities, all current and former officers, directors, employees, agents, attorneys and contractors for these companies, (herein collectively referred to as "FHLBI" or "Bank").  Kleiman and FHLBI are collectively referred to as the "Parties".  
In consideration of the mutual promises described herein, the Parties agree as follows:
1.    In exchange for Employee entering into this Agreement, FHLBI agrees to provide to Employee the following separation benefits:
		
	(a)
	Six (6) months separation pay, payable in one lump sum of One Hundred Sixty Nine Thousand, Six Hundred Thirty Seven Dollars ($169,637); less applicable taxes and deductions.  This payment shall be made within twenty-one (21) days after the effective date of this Agreement as defined in Paragraph 22. 

		
	(b)
	A lump sum payment of Eleven Thousand, Five Hundred Ninety Seven Dollars and Forty Cents ($11,597.40), less applicable taxes and deductions, which represents the approximate equivalent of the cost of Employee group health, dental, and vision benefit continuation coverage for six (6) months.    This payment shall be made within twenty-one (21) days after the effective date of this Agreement as defined in Paragraph 22.

		
	(c)
	A lump sum payment of Sixteen Thousand, Nine Hundred Sixty Three dollars and Seventy Cents ($16,963.70), less applicable taxes and deductions, which represents the approximate equivalent of the cost of the Bank’s 401(k) Safe Harbor Matching contribution in the amount of 6% and a Basic, Non-elective contribution in the amount of 4% based on the amount set forth in Paragraph 1(a) above.  This payment shall be made within twenty-one (21) days after the effective date of this Agreement as defined in Paragraph 22.

Exhibit 10.1

		
	(d)
	A lump sum payment, less applicable taxes and deductions, of the 2018 Annual Award to which she is entitled as a Level I participant in the FHLBI Incentive Compensation Plan adopted January 19, 2018 (as amended, “Incentive Plan”).  This lump sum payment is expected to be made not later than March 15, 2019 and Employee acknowledges that all payments under the Incentive Plan are subject to the approval by the Bank’s Board of Directors and review and non-objection by the Federal Housing Finance Agency (“Finance Agency”).

		
	(e)
	Additional lump-sum payments, less applicable taxes and deductions, of the  Deferral Awards (as defined in the Incentive Plan and collectively referred to in this Agreement as "Deferral Payments") as a Level I Participant under the Incentive Plan. These additional lump-sum Deferral Payments will occur as earned and distributed per the terms and conditions of the Incentive Plan, and are expected to be made not later than March 15th of the year following the year in which they are earned. The first Deferral Payment is anticipated to be distributed on or before March 15, 2019, and the last Deferral Payment is anticipated to be distributed on or before March 15, 2022, all in accordance with the terms and conditions of the Incentive Plan. These Deferral Payments are subject to the approval by the Bank's board of directors and a review and non-objection by the Finance Agency (consistent with the terms of the Incentive Plan and Finance Agency regulations).  

		
	(f)
	Outplacement services known as the Career Assistance Program will be provided for a three (3) month period.  Outplacement service must be initiated on or before February 1, 2019.  Outplacement services will be provided by HRD Advisory Group and will be billed directly to the Bank.  Payment for any such services extending beyond three (3) months shall be the responsibility of Employee.

1.The Parties agree that this Agreement and any payments made pursuant to this Agreement are subject to the prior review and non-objection by the Finance Agency and that the Finance Agency has not completed its review or issued its non-objection to the Bank.  

Exhibit 10.1

2.After the payments and consideration to Employee are made as outlined in paragraph 1, FHLBI shall have no other obligations or liabilities to Employee.  Employee receipt of the separation benefits provided herein shall constitute a complete settlement, satisfaction and waiver of any and all claims Employee may have against FHLBI and FHLBI shall have no responsibility to Employee or her beneficiaries concerning the payment of wages, profit sharing, bonus, or any other compensation or benefit that may have been available to Employee as a result of her employment at FHLBI.
3.In exchange for the foregoing benefits,  Employee irrevocably and unconditionally releases and forever discharges (i) FHLBI, (ii) its parent, subsidiary or affiliated entities, (iii) all of their present or former directors, officers, employees, agents, attorneys and contractors as well as (iv) all predecessors, successors and assigns thereof (collectively the "Released Parties") from any and all actions, charges, claims, demands, damages or liabilities of any kind or character whatsoever, known or unknown, discovered or undiscovered, matured or unmatured, which Employee now has or may have had through the effective date of this Agreement, that arise out of or relate in any manner to Employee’s employment with FHLBI, the separation thereof, or any contract, plan, policy, or program, oral or written, between Employee and the Released Parties, or any potential claim described in this Agreement, or any other matter or claim from whatever cause based upon facts pre-existing to or existing at the time of the execution of this Agreement.
4.Without limiting the generality of the foregoing release, it shall include: (i) all claims or potential claims arising under any federal, state or local laws relating to the Parties’ employment relationship, including any claims Employee may possess pursuant to the Civil Rights Act of 1964, as amended, 42 U.S.C. §2000(d), et seq.; the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701 et seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; the Indiana Civil Rights Law, as amended, I.C. 22-9-1, et seq.; the Indiana Wage Claim Statutes, I.C. 22-2-5-1 et seq.; and I.C. 22-2-9-1 et seq.; the Equal Pay Act, 29 U.S.C. § 206(d) et seq.; the Fair Labor Standards Act, 29 U.S.C. § 201 et seq.; the Occupational Safety and Health Act, 29 U.S.C. § 652 et seq.; the National Labor Relations Act, 29 U.S.C. § 141 et seq.; the Immigration Reform and Control Act, 8 U.S.C. § 1101 et seq.; the Americans with Disabilities 

Exhibit 10.1

Act of 1990, 42 U.S.C. § 12101 et seq.; the Family and Medical Leave Act of 1993, 29 U.S.C. § 2611 et seq.; the Age Discrimination in Employment Act, as amended, 29 U.S.C. § 621 et seq.; and any other federal, state or local laws governing the Parties’ employment relationship; (ii) any claims on account of, arising out of or in any way connected with Employee employment with FHLBI or leaving of that employment, (iii) any claims alleged or which could have been alleged in any charge or complaint against FHLBI; (iv) any claims relating to the conduct of any employee, officer, director, agent or other representative of FHLBI; (v) any claims of discrimination, harassment or retaliation on any basis; (vi) any claims arising from any legal restrictions on an employer's right to separate its employees; (vii) any claims for personal injury, compensatory or punitive damages or other forms of relief; and (viii) all other causes of action sounding in contract, tort or other common law basis, including (a) the breach of any alleged oral or written contract, (b) negligent or intentional misrepresentations, (c) defamation, (d) wrongful discharge, (e) interference with contract or business relationship or (f) negligent or intentional infliction of emotional distress.
5.The Parties agree that nothing contained herein shall purport to waive or otherwise affect any of Employee’s rights or claims that may arise after Employee signs this Agreement.  It is further understood by the Parties that nothing in this Agreement shall affect any rights Employee may have under any Pension Plan, Savings Plan (i.e., 401(k) plan) provided by FHLBI as of the date of Employee’s termination, such items to be governed exclusively by the terms of the applicable plan documents.
6.Employee also agrees not to sue any of the Released Parties with respect to any claims, demands, liabilities or obligations released by this Agreement.  The Parties agree, however, that nothing in this Agreement shall:
		
	(a)
	Prevent Employee from challenging under the Older Workers Benefit Protection Act (29 U.S.C. § 626) the knowing and voluntary nature of Employee release of any age claims in this Agreement, in court or before the Equal Employment Opportunity Commission (“EEOC”); or

Exhibit 10.1

		
	(b)
	Prevent Employee from reporting possible violations of federal, state, or local law or regulation to any governmental agency or entity or making other disclosures that are protected under the whistleblower provisions of federal, state or local law or regulation;

		
	(c)
	Prevent Employee from filing an administrative charge with or participating in an investigation by the EEOC or any other federal, state or local agency. 

7.Notwithstanding Employee’s right to file an administrative charge with the EEOC or any other federal, state, or local agency, Employee agrees that with her release of claims in this Agreement, she has waived, to the extent allowed by law, any right she may have to recover monetary or other personal relief in any proceeding based in whole or in part on claims released by Employee in this Agreement.  For example, Employee waives any right to monetary damages or reinstatement if an administrative charge is brought against the Bank whether by Employee, the EEOC, or any other person or entity, including but not limited to any federal, state, or local agency.  Further, with Employee’s release of claims in this Agreement, Employee specifically assigns to the Bank Employee’s right to any recovery arising from any such proceeding.
8.The Parties acknowledge that it is their mutual and specific intent that the above waiver fully comply with the requirements of the Older Workers Benefits Protection Act (29 U.S.C. § 626) and any similar laws governing release of claims.  Accordingly, Employee hereby acknowledges that:
		
	(a)
	Employee has carefully read and fully understands all of the provisions of this Agreement and that Employee has entered into this Agreement knowingly and voluntarily;

		
	(b)
	The Separation Benefits offered in exchange for Employee’s release of claims exceed in kind and scope that to which Employee would have otherwise been entitled;

		
	(c)
	Employee is advised by this Agreement to consult with an attorney of her choice prior to signing this Agreement; and

		
	(d)
	Employee has been offered a period of twenty-one (21) days within which to review and consider this Agreement.   Employee acknowledges that she may waive all or any part of this 

Exhibit 10.1

twenty-one (21) day consideration period by signing this Agreement prior to the expiration of the period.  However, if this Agreement is not executed by the twenty-first (21th) day, the terms offered by FHLBI in this Agreement are withdrawn and any later execution of this Agreement by Employee is void.  The parties agree that changes to this Agreement, whether material or immaterial, do not restart the running of this consideration period.
9.FHLBI and Employee specifically reserve any and all rights to bring an action to remedy a breach of this Agreement.
10.Employee agrees not to make or publish any statement (orally or in writing) or instigate, assist, or participate in the making or publication of any statement that is in any way critical, negative, or derogatory or would libel, slander, or disparage or expose to contempt, or ridicule: (1) the FHLBI; (2) its products, services, affairs, or operations; or (3) the FHLBI’s directors, officers, agents, representatives, employees, job candidates or shareholders. However, the provisions of this Paragraph shall not interfere with the Employee’s rights as described in Paragraph 7, above.  Employee understands and agrees that this Paragraph 11 is of the utmost importance to the Bank and is a material provision of this Agreement.
11.Employee shall keep the terms, amount and fact of this Agreement completely confidential and promises not to disclose any information concerning this Agreement or the terms of this settlement to anyone other than her immediate family and lawyers and financial advisors, who will be informed of and bound by this confidentiality clause.  Employee shall respond to any inquiry about the status of her separation only by stating that the parties have mutually agreed to terminate their relationship on an amicable basis, unless required to say more by a court or agency that has power to require her to testify further.  Employee acknowledges that revealing any other information would cause FHLBI injury and damages.  Employee understands and agrees that this confidentiality provision is of the utmost importance to FHLBI and is a material provision of this Agreement.
12.Employee agrees that, upon a material breach of paragraphs 4, 5, 7, 11 or 12, of this Agreement, FHLBI shall have an automatic and unfettered right to terminate and cease any of the payments and other 

Exhibit 10.1

consideration agreed to be provided to Employee under this Agreement, including but not limited to the payments and consideration contained in paragraph 1 of this Agreement.  Employee further agrees that in the event of a material breach of paragraphs 4, 5, 7, 11 or 12 of this Agreement or any of their terms and conditions by Employee, she will be required to repay to FHLBI  all but One Thousand Dollars ($1,000.00) of the Separation Benefits paid to her by FHLBI, (if such repayment is not otherwise prohibited by applicable law) with the express understanding that Employee’s retention of the One Thousand Dollars ($1,000.00) is adequate legal consideration for the continued release of claims provide in Sections 4, 5, and 7 of this Agreement.
13.Employee warrants under penalty of perjury that:
		
	(a)
	Prior to signing this Agreement she has raised with FHLBI any and all concerns and information she has regarding any possible legal and/or ethical issues in connection with FHLBI business, including, but not limited to any potential violations of FHLBI policies and any applicable federal, state or local statutes, ordinances, rules, or regulations.  

		
	(b)
	She has no knowledge of any fact, document, or other information, that may indicate that Bank or any of its employees, agents, or officers have violated any FHLBI policy or any applicable federal, state or local statutes, ordinances, rules, or regulations, nor is she aware of others who claim to, or in her opinion, have such facts or information.  

		
	(c)
	She has no basis or reason to believe the Bank or any of its employees, agents or officers may have violated any FHLBI policy or any applicable federal, state, or local statutes, ordinances, rules or regulations.  

14.Employee agrees not to seek re-employment with FHLBI, its successors, or assigns at any time in the future and agrees that any such application shall not be entitled to consideration, unless the FHLBI agrees in writing to waive this provision.
15.The Parties represent and acknowledge that in executing this Agreement, they did not rely and have not relied upon any representations or statements made by any of the other Parties, or by any of 

Exhibit 10.1

the other Parties’ agents, representatives or attorneys with regard to the subject matter, basis or effect of this Agreement.
16.This Agreement shall be binding upon the Parties and upon their heirs, administrators, representatives, executors, successors and assigns, and shall inure to the benefit of the respective Parties and to their administrators, representatives, executors, successors and assigns.
17.Should any provision of this Agreement be declared or be determined by any court of competent jurisdiction to be unenforceable or invalid, the validity of the remaining parts, terms or provisions of this Agreement shall not be affected thereby and the unenforceable or invalid part, term or provision shall be deemed modified to eliminate the invalid part, and, as so modified, such part, term or provision shall be deemed as part of this Agreement as though originally contained herein.  Each party also agrees that, without receiving further consideration, they will sign and deliver such documents and do anything else that is necessary in the future to make the provisions of this Agreement effective.
18.No waiver of any condition or covenant contained in this Agreement or failure to exercise a right or remedy by any of the Parties hereto shall be considered to imply or constitute a further waiver by such Party of the same or any other condition, covenant, right or remedy.
19.This Agreement is made and entered into in the State of Indiana and shall in all respects be interpreted, enforced and governed by the laws of the State of Indiana without respect to its decisions on conflict of laws.  Any lawsuit commenced to enforce the terms of this Agreement shall be commenced in a court of competent jurisdiction in the State of Indiana, and if in federal court, in the U.S. District Court for the Southern District of Indiana, Indianapolis Division.  The language of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against either of the Parties.
20.With the exception of the Mandatory Mutual Agreement to Arbitrate (“Arbitration Agreement”), that the parties have already agreed to, this Agreement sets forth the entire agreement between the Parties and fully supersedes any and all prior conversations, agreements, or understandings between the Parties pertaining to this subject matter.  This Agreement may be modified only by a writing executed by 

Exhibit 10.1

both Parties.  The parties re-affirm herein that, unless expressly provided for in the Arbitration Agreement, this Agreement shall be enforced under the terms of the Arbitration Agreement.
21.For a period of seven (7) calendar days following  her execution of this Agreement, Employee may revoke this Agreement personally or through her attorney by notice to Kania Lottie, First Vice President - Director of Human Resources, at FHLBI.  If such notice is oral, either by telephone or in person, it shall be confirmed immediately in writing.  If Employee does not so revoke this Agreement within seven (7) calendar days following her execution of the Agreement, this Agreement shall become effective on the eighth (8th) calendar day following Employee’s execution of this Agreement.  
22.Employee agrees to voluntarily cooperate with the Bank in connection with any legal matters, including but not limited to pending or future litigation, proceeding, or other matter which may be filed against or by the Bank with any agency, court, or other tribunal and concerning or relating to any matter falling within Employee’s knowledge or former area of responsibility.  Employee agrees to provide reasonable assistance and completely truthful information and testimony in such matters including, without limitation, facilitating and assisting in the preparation of any underlying defense, responding to discovery requests, preparing for and attending deposition(s) as well as appearing in court to provide truthful testimony.  The Bank agrees at its discretion to reimburse Employee for all reasonable out-of-pocket expenses incurred at the request of the Bank associated with such assistance and testimony.
23.The parties to this Agreement have not shifted responsibility for medical treatment to Medicare in contravention of 42 U.S.C. § 1395y(b).   The parties have made every effort to adequately protect Medicare’s interest and incorporate such into the settlement terms, and to comply with both federal and state law.  The parties acknowledge and understand that any present or future action or decision by the Centers for Medicare and Medicaid Services or Medicare on this settlement, or Employee’s eligibility or entitlement to Medicare or Medicare payments, will not render this release void or ineffective, or in any way affect the finality of this settlement.

Exhibit 10.1

Employee agrees to waive any and all private causes of action for damages against the Bank pursuant to 42 U.S.C § 1395y(b)(3)(A).
Employee affirms that Employee has made no claim of illness or injury against the Bank, nor is Employee aware of any facts supporting any claims against the Bank under which the Bank could be liable for medical expenses incurred by Employee before or after the execution of this Agreement.  Furthermore, Employee is aware of no medical expenses which Medicare has paid and for which the Bank is or could be liable now or in the future.  Employee agrees and affirms that, to the best of Employee’s knowledge, no liens of any governmental entities, including those for Medicare conditional payments, exists. 
24.By making this Agreement, neither Employee nor the Released Parties admit that they have done anything wrong, including the commission of any tort, breach of contract, or violation of any federal, state or local statute, law, or ordinance.  Neither the existence of this Agreement nor any of its terms shall be admitted into evidence in any proceeding except for the purpose of enforcing the provisions of this Agreement.
25.This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, fully enforceable counterpart for all purposes, but all of which shall constitute one and the same instrument.
26.Any action by any of the Released Parties to enforce any obligation or duty owed to them under this Agreement may be brought by FHLBI, its successor or assign without joinder of other affiliates of that corporation.
27.Employee is solely responsible for paying the appropriate taxes owed on the moneys being paid under this Agreement.
28.Because neither side can represent what position the Internal Revenue Service, or any other government entity, will take with respect to these payments, it is mutually agreed that each side will be responsible for any miscalculations for which it is legally responsible without indemnification or any other recourse from the other side.  If it is subsequently determined that Employee should have paid taxes on any 

Exhibit 10.1

amount which she did not pay taxes, the interest and penalties are her responsibility alone.  The Parties expressly waive the right to seek indemnification or reimbursement from the other as the result of any government decision on the taxability of the amounts paid in settlement.
29.It is expressly agreed that this is a final Agreement and that in the event the Internal Revenue Service, or any other government entity, determines that Employee owes more taxes, she has no right to seek additional sums from FHLBI, even though the amount paid will decrease by the amounts owed to the government.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

Exhibit 10.1

	
				
	Date:      
	January 4, 2019
	 
	/s/ MARY M. KLEIMAN

	 
	 
	 
	Mary M. Kleiman

	 
	 
	 
	 

	 
	 
	 
	 

	Date:      
	January 17, 2019
	 
	/s/ CINDY L. KONICH

	 
	 
	 
	Cindy L. Konich

	 
	 
	 
	President - Chief Executive Officer

	 
	 
	 
	 

	 
	 
	 
	 

	Date:      
	January 17, 2019
	 
	/s/ DERON J. STREITENBERGER

	 
	 
	 
	Deron J. Streitenberger

	 
	 
	 
	Executive Vice President - Chief Business Operations Officer

AFFIRMATION

I affirm under the penalties of perjury under the laws of the State of Indiana that the statements made by me in Paragraph 14 of this Agreement are true and accurate.

                    
    
/s/ MARY M. KLEIMAN
Mary M. Kleiman

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