Document:

10-Q

Exhibit 10.1

AMENDMENT TO CERTAIN EQUITY AWARDS AND AGREEMENTS
PURSUANT TO THE CONAGRA FOODS, INC.
2015 VOLUNTARY RETIREMENT PROGRAM AND 2015 SG&A REDUCTION PROGRAM
This Amendment is adopted by ConAgra Foods, Inc., a Delaware corporation (the “Company”), effective as of October 14, 2015.
WHEREAS,  the Company previously granted stock options, restricted stock units and performance shares (collectively “Equity Awards”) to certain employees pursuant to the terms of the ConAgra Foods 2008 Performance Share Plan (the “Performance Share Plan”), and the ConAgra Foods 2009 Stock Plan and ConAgra Foods 2014 Stock Plan (collectively, the “Stock Plans”); 
WHEREAS, the Company has approved (a) the “2015 Voluntary Retirement Program” pursuant to which eligible employees accepted into the program will be granted a voluntary retirement incentive under either the ConAgra Foods, Inc. Pension Plan for Salaried Employees or the ConAgra Foods, Inc. Nonqualified Pension Plan (2015 Voluntary Retirement Program) and (b) the “2015 SG&A Reduction Program,” described in the Company’s Current Report on Form 8-K/A filed with the Securities and Exchange Commission on October 1, 2015 and including reductions in positions and the relocation of the Company’s headquarters; and
WHEREAS, as permitted by the terms of the Performance Share Plan, the Stock Plans and the related Equity Awards, the Company now desires to amend the outstanding Equity Awards, as hereinafter set forth: 
		
	1.
	Each employee who applies for and is accepted for participation in the 2015 Voluntary Retirement Program shall be a “VRP Participant.”  Provided that such VRP Participant executes and does not revoke the release of claims required by the 2015 Voluntary Retirement Program and otherwise meets the terms and conditions of such Program, the outstanding Equity Awards held by such VRP Participant as of his or her Separation from Service with the Company shall be subject to the following: (a) the VRP Participant’s attained age and years of service shall each be increased by three additional years solely for purposes of applying the Early Retirement, Normal Retirement and Retirement provisions thereon, (b) any requirement under an Equity Award that a VRP Participant hold such Award for twelve (12) months following the Date of the Grant shall be waived for purposes of determining vesting under the Early Retirement and Normal Retirement provisions thereon, and (c) all vesting of Equity Awards for the VRP Participant under the Early Retirement provisions of the Stock Plans shall be determined on a pro rata basis by a fraction, the numerator of which is the total number of calendar days during which the Participant was employed by the Company during the period beginning on the Date of Grant and ending on the Separation from Service and the denominator of which is the total number of calendar days beginning on the Date of the Grant and ending on the Vesting Date.

		
	2.
	Each employee who becomes entitled to and receives supplemental unemployment benefits under the ConAgra Foods, Inc. Supplemental Unemployment Benefits Plan in connection with the 2015 SG&A Reduction Program shall be a “Severance Participant.”  Provided that such Severance Participant executes and does not revoke the release of claims required by the 2015 SG&A Reduction Program and otherwise meets the terms and conditions of such Program, the outstanding Equity Awards held by the Severance Participant under the Stock Plans as of his or her Separation from Service with Company shall be subject to the following: (a) any requirement under an Equity 

Award that a Severance Participant hold such Award for twelve (12) months following the Date of the Grant shall be waived for purposes of determining vesting under the provisions addressing an involuntary termination due to position elimination or reduction in force, and (b) if more favorable to the Participant than the existing Award terms, all vesting of Equity Awards for the Severance Participant under the provisions addressing an involuntary termination due to position elimination or reduction in force shall be determined on a prorated basis, measured in days, and rounded to the nearest whole share.  For the avoidance of doubt, the provisions in this Paragraph 2 shall not apply to Equity Awards under the Performance Share Plan or with respect to Paragraph 2(b) any Equity Award that provides for full vesting upon an involuntary termination due to position elimination or reduction in force.
		
	3.
	This amendment shall not apply to any VRP Participant or Severance Participant who is an executive officer of the Company or an individual at the Vice President level or above who reports directly, on a full-time basis, to the Chief Executive Officer.

Capitalized terms used throughout this Amendment which are not otherwise defined herein shall have the same meanings as set forth in the applicable Stock Plan and Equity Award.
In all other respects, the Equity Awards shall remain subject to the original terms and conditions of grant.
IN WITNESS WHEREOF, the Company has caused this Amendment to be adopted by its authorized officer.

CONAGRA FOODS, INC.

BY: _/s/ Charisse Brock_________________                   
Name:    Charisse Brock
Title: Senior Vice President, Human ResourcesExhibit 10.1

 

First Amendment
 to
 Employment Agreement

 

THIS FIRST AMENDMENT TO EMPLOYMENT AGREEMENT (“Amendment”) is made this 31st day of December, 2015, by and among Peoples Security Bank and Trust Company, a Pennsylvania bank and trust company (the “Bank”), Peoples Financial Services Corp., a Pennsylvania corporation (“Parent”), and Craig W. Best (the “Executive”).

 

WHEREAS, the Bank (as successor by merger to Penn Security Bank & Trust), Parent (as successor by merger to Penseco Financial Services Corporation) and Executive are parties to that certain Employment Agreement effective as of January 3, 2011 (the “Original Agreement” and, as amended hereby, the “Agreement”); and

 

WHEREAS, the parties desire to amend the Original Agreement as set forth herein.

 

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

 

Amendment of Appendix B.  Appendix B of the Agreement is hereby amended by deleting the existing Appendix B attached to the Original Agreement in its entirety and inserting in lieu thereof the amended and restated Appendix B attached to this Amendment.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above.

 

	
 
    	
PEOPLES   SECURITY BANK AND TRUST COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael L. Jake
    
	
 
    	
Name:
    	
Michael   L. Jake
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Risk Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PEOPLES   FINANCIAL SERVICES CORP.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert W. Naismith
    
	
 
    	
Name:
    	
Robert   W. Naismith
    
	
 
    	
Title:
    	
Chairman   of the Compensation Committee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ CRAIG   W. BEST
    
	
 
    	
CRAIG   W. BEST
    

 

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Appendix B

Executive Stock Ownership Guidelines

 

Executive is required to own shares of the common stock of Parent having a fair market value equal to or greater than Executive’s Base Salary.

 

·              Shares held through a 401(k) plan and vested shares allocated to Executive’s ESOP account;

 

·              shares acquired by exercise of stock options and vested shares acquired by stock awards; and

 

·              shares held by Executive’s immediate family members,

 

shall be included in the total of shares owned for purposes of these Guidelines.

 

2Exhibit 10.2

 

SEPARATION AND RELEASE AGREEMENT

 

THIS SEPARATION AND RELEASE AGREEMENT (this “Release”) is made, effective as of the latest date signed below, by and between Gregory D. Misterman (the “Employee”) and Peoples Security Bank and Trust Company (the “Company”).

 

WHEREAS, Employee’s employment with Company terminated as of December 31, 2015 (“Termination Date”); and

 

WHEREAS, Company has agreed to pay Employee certain amounts and to provide Employee with certain benefits subject to the terms of this Release.

 

NOW THEREFORE, in consideration of these premises and the mutual promises contained herein, and intending to be legally bound hereby, the parties agree as follows:

 

1.             Consideration; Acknowledgements.

 

1.1.         Employee acknowledges and agrees that Employee’s employment with Company and all of its affiliates terminated effective as of the Termination Date.  In connection with the termination of Employee’s employment, in consideration of Employee’s execution of this Release and subject to Employee’s continuous compliance with the terms of this Release:

 

1.1.1.      Company will pay Employee severance in the gross amount of ninety-three thousand five hundred dollars and no cents ($93,500.00), subject to applicable withholdings.  The severance payments will be made in accordance with the Company’s normal payroll schedule; and

 

1.1.2.      Company will pay, on Employee’s behalf, for executive outplacement assistance for Employee at an outplacement service chosen by the Company for up to a maximum amount of thirty thousand dollars and no cents ($30,000.00).

 

1.1.3.      Employee acknowledges that: (i) in the absence of his execution of this Release, the payment, rights and benefits specified in Section 1.1 above would not otherwise be due to Employee; (ii) Employee has no entitlement under any severance or similar arrangement maintained by the Company or any of its affiliates; (iii) Employee has no other equity interest in the Company or any of its affiliates; and (iv) except as otherwise provided specifically in this Release, the Company does not and will not have any other liability or obligation to Employee.  The severance and other benefits described in Section 1.1 above are expressly conditioned on this Release becoming irrevocable by the 30th day following the Termination Date.  The severance and other benefits described in Section 1.1 will begin to be paid or provided (as applicable) as soon as administratively practicable after the Release becomes irrevocable, provided that if the 30 day period described above begins in one taxable year and ends in a second taxable year such payments or benefits shall not commence until the second taxable year.

 

2.             Release and Covenant Not to Sue.

 

2.1.1.      Employee hereby fully and forever releases and discharges Company, its parent corporation, Peoples Financial Services Corp., and its direct and indirect subsidiaries and all of their respective predecessors and successors, assigns, stockholders, affiliates, and the officers, directors, trustees, employees, agents and attorneys, past and present of Company, its subsidiaries, shareholders or affiliates (each of the foregoing persons or entities is referred to herein as a “Released Person”) from any and all claims, demands, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations, controversies, debts, costs, expenses, damages, judgments, orders and liabilities, of whatever kind or nature, direct or indirect, in law, equity or otherwise, whether known or unknown, which Employee now has, or hereafter can, shall or may have for, upon or by reason of any act, transaction, practice, conduct, matter, cause or thing of any kind or nature whatsoever (“Claim”) arising or occurring through the date of this Release, including, but not limited to, any Claim arising out of Employee’s employment by Company or the termination thereof, any Claim under the Age Discrimination in Employment Act, 29 U.S.C. § 621, et seq., the Employee Retirement Income Security Act, 29 U.S.C. § 1001, et seq., any Claim based upon alleged wrongful or retaliatory discharge or breach of contract, any Claim

 

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for additional wages or other compensation, any Claim for attorneys’ fees, and any other Claim under any other federal, state or local statute, ordinance, regulation, or under any contract, tort or common law theory.

 

2.1.2.      Employee represents that Employee has not filed a lawsuit, or initiated arbitration, mediation or any other administrative proceeding against a Released Person and that Employee has not assigned any Claim against a Released Person.  Employee further promises not to initiate a lawsuit, arbitration or mediation, or to bring any other Claim against the other arising out of or in any way related to Employee’s employment by Company or the termination of that employment.  This Release will not prevent Employee from filing a charge with the Equal Employment Opportunity Commission (or similar state agency) or participating in any investigation conducted by the Equal Employment Opportunity Commission (or similar state agency); provided, however, that any claim by Employee for personal relief in connection with such a charge or investigation (such as reinstatement or monetary damages) would be barred.

 

2.1.3.      The foregoing will not be deemed to release Company from claims solely to enforce this Release.

 

3.             Return of Equipment and Property.  Employee will deliver all Company property and equipment in Employee’s possession or under Employee’s control, regardless of its location, such as, but not limited to, files, documents and any copies thereof in whatever form (including electronic), computer equipment, software, fax machines, credit cards, telephone charge cards, cellular phones, keys, security passes, passwords, automobiles, and any other Company property to a Company representative by the Termination Date; provided, however, Employee is permitted to retain the Company issued cell phone (including the cell phone number) and iPad.

 

4.             Non-Disparagement.  Employee will not disparage any Released Person or otherwise take any action which could reasonably be expected to adversely affect the personal or professional reputation of any Released Person.

 

5.             Cooperation.  Employee further agrees that, subject to reimbursement of his reasonable expenses, he will cooperate fully with Company and its counsel with respect to any matter (including litigation, investigations, or governmental proceedings) in which Employee was in any way involved during his employment with Company.  Employee shall render such cooperation in a timely manner on reasonable notice from Company.

 

6.             Rescission Right.  Employee acknowledges and represents that Employee (a)  has read and understands the terms of this Release in its entirety, (b) has entered into this Release knowingly and voluntarily, without any duress or coercion; (c) has been advised orally and is hereby advised in writing to consult with an attorney with respect to this Release before signing it; (d) was provided with at least twenty-one (21) calendar days after receipt of the Release to consider its terms before signing it; and (e) has seven (7) calendar days from the date of signing this Release to terminate and revoke this Release, in which case this Release shall be unenforceable, null and void.  The Release will become effective after the expiration of the seven day revocation period if Employee does not terminate and revoke the Release within such time.  Employee may revoke this Release during those seven (7) days by providing written notice of revocation to the Company’s CEO at the Company’s primary business address.

 

7.             Violation.  If Employee violates or challenges the enforceability of any provisions of the Restrictive Covenants or this Release, no further payments, rights or benefits under Section 1.1 hereof will be due to Employee.

 

8.             Tax Withholding.  All payments made, and benefits provided, hereunder shall be net of all legally required taxes and other withholdings.  You shall be solely responsible for all taxes that result from your receipt of the payments and benefits to be provided under this Release and the Company does not make any representation, warranty or guarantee of any federal, state or local tax consequence to you as part of your receipt of any payment or benefit hereunder, including, but not limited to, under Section 409A.  Notwithstanding any provision to the contrary, all provisions of this Release shall be construed and interpreted to comply with Section 409A and if necessary, any provision shall be held null and void to the extent such provision (or part thereof) fails to comply with Section 409A or regulations thereunder.  For purposes of the limitations on nonqualified deferred compensation under Section 409A, each payment of compensation under this Release shall be treated as a separate payment of compensation for purposes of applying the Section 409A deferral election rules and the exclusion from Section 409A for certain short-term deferral amounts.  Any amounts payable under this Release solely on account of an involuntary separation from service within the meaning of Section 409A shall be excludible from the requirements of Section 409A, either as involuntary separation pay or as short-term deferral amounts (e.g., amounts payable under the schedule prior to March 15 of the calendar year following the

 

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calendar year of involuntary separation) to the maximum possible extent.  To the extent that deferred compensation subject to the requirements of Section 409A becomes payable under this Release to a “specified employee” (within the meaning of Section 409A) on account of separation from service, any such payments shall be delayed by six months to the extent necessary to comply with the requirements of Section 409A.  Further, any reimbursements or in-kind benefits provided under this Release that are subject to Section 409A shall be made or provided in accordance with the requirements of Section 409A, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the period of time specified in the employment agreement, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, (iii) the reimbursement of an eligible expense will be made no later than the last day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

 

9.             Confidentiality.  Employee agrees that the terms of this Release shall remain completely confidential.  Except to the extent otherwise required by law, Employee agrees that Employee has not and will not to disclose, in whole or in part, the existence, negotiation, or any of the terms of this Release.  However, Employee may disclose the terms of this Release to Employee’s attorney, spouse and financial advisors, if any, provided that Employee takes all reasonable measures to assure that those individuals do not disclose the terms of this Release to a third party except as otherwise required by law.  Employee acknowledges and agrees that this confidentiality obligation is an essential term of this Release.  Employee acknowledges and agrees that, except as permitted by this Section 9, any disclosure of the terms of this Release by Employee or by any individual to whom Employee reveals the terms of this Release as permitted herein shall constitute a material breach of this Release.

 

10.                               Miscellaneous.

 

10.1.1.    No Admission of Liability.  This Release is not to be construed as an admission of any violation of any federal, state or local statute, ordinance or regulation by Company, or of any violation of any duty owed by Company to Employee.  Company specifically denies any such violations.

 

10.1.2.    Successors and Assigns.  This Release shall inure to the benefit of and be binding upon Company and Employee and their respective successors, permitted assigns, executors, administrators and heirs.  Employee may not make any assignment of this Release or any interest herein, by operation of law or otherwise.  Company may assign this Release to (i) any successor to all or substantially all of its assets and business by means of liquidation, dissolution, merger, consolidation, transfer of assets, or otherwise, and (ii) any of its affiliates.

 

10.1.3.    Severability.  Whenever possible, each provision of this Release will be interpreted in such manner as to be effective and valid under applicable law.  However, if any provision of this Release is held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provision, and this Release will be reformed, construed and enforced as though the invalid, illegal or unenforceable provision had never been herein contained.

 

10.1.4.    Entire Agreement; Amendments.  Except as otherwise provided herein, this Release contains the entire agreement and understanding of the parties hereto relating to the subject matter hereof, and merge and supersede all prior and contemporaneous discussions, agreements and understandings of every nature relating to the subject matter hereof.  This Release may not be changed or modified, except by an agreement in writing signed by each of the parties hereto.  Employee has not relied on any representation or statement made by Company or its affiliates as to the subject matter, basis or effect of this Release except as stated in the Release and has entered into this Release voluntarily.

 

10.1.5.    Governing Law.  This Release shall be governed by, and enforced in accordance with, the laws of the Commonwealth of Pennsylvania without regard to the application of the principles of conflicts of laws.

 

10.1.6.    Counterparts and Facsimiles.  This Release may be executed, including execution by facsimile signature, in multiple counterparts, each of which shall be deemed an original, and all of which together shall be deemed to be one and the same instrument.

 

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IN WITNESS WHEREOF, Company has caused this Release to be executed by its duly authorized officer, and Employee has executed this Release, in each case on the dates indicated below.

 

	
 
    	
Peoples   Security Bank and Trust Company
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael L. Jake
    
	
 
    	
 
    
	
 
    	
Name &   Title: EVP/CRO
    
	
 
    	
 
    
	
 
    	
Date:   1-5-16
    
	
 
    	
 
    
	
 
    	
Gregory   D. Misterman
    
	
 
    	
 
    
	
 
    	
/s/ Gregory   D. Misterman
    
	
 
    	
 
    
	
 
    	
Date:   1/4/16
    

 

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