Document:

Exhibit

Exhibit 10.2

THIRD AMENDMENT TO AMENDED & RESTATED
EXECUTIVE ENTRUSTMENT AGREEMENT

This Third Amendment to Amended & Restated Executive Entrustment Agreement ("Third Amendment") is entered into effective March 29, 2017, by and between Callaway Golf K.K., a company organized and existing under the laws of Japan (the "Company") and Alex Boezeman ("Director").

A.    The Company and Director are parties to that certain Amended & Restated Executive Entrustment Agreement entered into as of March 24, 2014, as amended March 24, 2015 and March 22, 2016 (collectively the "Agreement").

B.    The Company and Director desire to amend the Agreement pursuant to Section 14 of the Agreement.

NOW, THEREFORE, in consideration of the foregoing and other consideration, the value and sufficiency of which are acknowledged, the Company and Director agree as follows:

		
	1.
	Term.  Section 2 of the Agreement is amended to read:

“2.  TERM.  The term of the Engagement under this Agreement originally commenced on March 24, 2014, was extended by appointment of the shareholders through March 2017, and now by appointment of the shareholders of the Company in March 2017, shall be extended through the date of the ordinary general meeting of shareholders of the Company to be held in March 2018.  Thereafter it may be renewed as agreed between the parties and subject to reappointment as a director by the Company’s shareholders.”  

2.Compensation.  Section 3.1 of the Agreement is amended to read:  

“3.1  Remuneration.  Effective March 1, 2017, the Company shall pay to the Director an annual gross remuneration of JPY40,056,637, prorated for any partial years of employment.”

3.But for the amendments contained herein, and any other written amendments properly executed by the parties, the Agreement shall otherwise remain unchanged.

IN WITNESS WHEREOF, the parties have executed this Third Amendment on the dates set forth below, to be effective as of the date first set forth above.  

	
			
	DIRECTOR
	 
	COMPANY

	 
	 
	Callaway Golf K.K

	 
	 
	 

	/s/ Alex Boezeman
	 
	By:  /s/ Patrick S. Burke

	Alex Boezeman
	 
	Patrick S. Burke, Director

	 
	 
	 

	Dated: March 31, 2017
	 
	Dated: March 29, 2017Blueprint

Exhibit 10.1

 

 

AMENDMENT TO

PARAGON COMMERCIAL BANK

SALARY CONTINUATION AGREEMENT

FOR

MATTHEW C. DAVIS

 

This
AMENDMENT TO PARAGON COMMERCIAL
BANK SALARY CONTINUATION AGREEMENT (this
“Amendment”) is entered into as of this
26th day
of April, 2017, by and between Paragon Commercial Bank, a
North Carolina-chartered
bank (the “Bank”), and Matthew C. Davis, an executive
of the Bank (the “Executive”).

 

WHEREAS, the Bank and the Executive are
parties to two Paragon Commercial Bank Salary Continuation
Agreements, each dated December 29, 2016, (collectively, the
“Agreement”) under which the Bank has agreed to provide
a salary continuation benefit to the Executive, and

 

WHEREAS, TowneBank, the Bank, and
Paragon Commercial Corporation (“Paragon”) have entered into the Agreement and Plan of
Reorganization dated as of April 26, 2017 (the “Merger
Agreement”), under which the Bank will merge with and into
TowneBank, with TowneBank being the surviving corporation (the
“Merger”);

 

WHEREAS, in connection with the Merger,
TowneBank, the Bank and Executive are entering into an Employment
Agreement, dated as of April 26, 2017, conditioned upon
consummation of the Merger, and under which TowneBank is assuming
all of Paragon’s obligations under the
Agreement;

 

WHEREAS, the Merger is a Change in
Control within the meaning of Section 1.5 of the Agreement, and
will result in full vesting of the Executive’s Accrued
Benefit under the Agreement upon consummation of the
Merger;

 

WHEREAS, the parties may amend the
Agreement under Section 8.1 thereof and now wish to do so in
connection with the Merger; and

 

WHEREAS, in accordance with Section 8.5
of the Agreement, the parties intend that this Amendment shall be
binding on and inure to the benefit of TowneBank, upon consummation
of the Merger, as successor of the Bank.

 

NOW THEREFORE, in consideration of these
premises and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the
Executive and the Bank hereby
agree as follows.

 

Section 1.17 “Voluntary Termination with Good
Reason” is amended, effective upon consummation of the
Merger and you being employed by Paragon Bank on the effective date
of the Merger, as evidenced by the date and time shown on the
certificate of merger issued by the Virginia State Corporation
Commission effecting the Merger (the “Merger Date”), to
add a new subsection (z) to the end thereof, such that the amended
Section 1.17 reads as follows:

 

 

 

 

 

“Voluntary
Termination with Good Reason” means a voluntary Separation
from Service by the Executive within 24 months after a Change in
Control if the following conditions (x) and (y) are satisfied, but
subject to condition (z):

 

(x)           a
voluntary Separation from Service by the Executive will be
considered a Voluntary Termination for Good Reason if any of the
following occur without the Executive’s advance written
consent –

 

(1)    
a material diminution of the Executive’s base
salary,

 

(2) a material
diminution of the Executive’s authority, duties, or
responsibilities,

 

(3) a material
diminution in the authority, duties, or responsibilities of the
supervisor to whom the Executive is required to
report,

 

(4) a material
diminution in the budget over which the Executive retains
authority,

 

(5) a material change
in the geographic location at which the Executive must perform
services for the Bank, or

 

(6) any other action or
inaction that constitutes a material breach by the Bank of the
agreement under which the Executive provides services to the
Bank.

 

(y)           the
Executive must give notice to the Bank of the existence of one or
more of the conditions described in clause (x) within 90 days after
the initial existence of the condition, and the Bank shall have 30
days thereafter to remedy the condition. In addition, the
Executive’s voluntary termination because of the existence of
one or more of the conditions described in clause (x) must occur
within 24 months after the earlier of the initial existence of the
condition or the Change in
Control.

 

(z)           The
Participant and the Bank agree that Participant’s entering
into the Employment Agreement with TowneBank, dated April 26, 2017,
shall constitute advance written consent to any diminution or
change under items (2) through (4) of clause (x) that arises from
Participant’s position, title, supervisor, authorities,
duties, or responsibilities as they exist as of the Merger Date;
provided that the foregoing consent shall not be deemed given for
any subsequent material diminutions or changes occurring after the
Merger Date and not contemplated by the Participant and the Bank as
of the Merger Date.

 

 

 

 

References to Parties. All references to
“Paragon Commercial Bank,”
the “Bank” or to “Paragon Commercial
Corporation” in the Agreement shall be amended to substitute
“TowneBank.”

 

Effectiveness of this Amendment.
Notwithstanding anything in this Amendment to the contrary, in the
event that the Merger Agreement is terminated pursuant to its terms
prior to the Merger Date, this Amendment will expire and be of no
further force or effect on the date of termination of the Merger
Agreement.

 

IN WITNESS WHEREOF, the Executive and a
duly authorized officer of the Bank

have
executed this Amendment as of the date first written
above.

 

 

	EXECUTIVE:

	

 

	

 

	
PARAGON
COMMERCIAL BANK	

 

	 

	

 

	

 

	
 

	

 

	 

	

 

	

 

	
 

	

 

	/s/ Matthew C.
Davis	

 

	

 

	/s/ Robert C.
Hatley	

 

	
Matthew C.
Davis

	

 

	

 

	Robert C.
Hatley	

 

	
Title 

	

 

	

 

	President and Chief
Executive Officer	

 

 

 

 

 

 

 

 

 

[Signature page – Amendment to Paragon Commercial Bank Salary
Continuation Agreement for Matthew C. Davis]Exhibit

Exhibit 10.1

CONSENT MEMORANDUM

May 5, 2017

Dasan Zhone Solutions, Inc.
7195 Oakport Street
Oakland, California  94621
Attention:  Kirk Misaka, Chief Financial Officer

		
	Re:
	(i)  Credit and Security Agreement, dated March 13, 2012 (as heretofore amended, the “Domestic Credit Agreement”), among Dasan Zhone Solutions, Inc. (f/k/a Zhone Technologies, Inc.) and ZTI Merger Subsidiary III, Inc. (collectively, the “Borrowers”), Premisys Communications, Inc., Zhone Technologies International, Inc., Paradyne Networks, Inc., Paradyne Corporation, and Dasan Network Solutions, Inc. (collectively, the “Guarantors”), and Wells Fargo Bank, National Association (the “Lender”), and (ii) Credit and Security Agreement (Ex-Im Subfacility), dated March 13, 2012 (as heretofore amended, the “Ex-Im Credit Agreement”; and together with the Domestic Credit Agreement, collectively, the “Credit Agreements”), among the Borrowers, the Guarantors, and Lender

Ladies and Gentlemen:

Reference is made to the above-described Credit Agreements.  The Borrowers and the Guarantors are sometimes collectively referred to in this letter agreement as the “Loan Parties.”  Capitalized terms used but not defined in this letter agreement shall have the meanings set forth in the Domestic Credit Agreement.

The Credit Agreements (including, but not necessarily limited to, Schedule 6.1 thereto) require that the Borrowers provide audited annual financial statements within 120 days after the end of each fiscal year.  Borrowers and the Guarantors hereby request that Lender extend the due date for the annual audited financial statements and related items required by Schedule 6.1 of the Credit Agreements (collectively, the “2016 Annual Statement Items”) for the fiscal year ending December 31, 2016, from April 30, 2017 to June 30, 2017 (the “Extension”).

Subject to the terms hereof, Lender hereby consents to the Extension for the 2016 Annual Statement Items, subject to the following terms and conditions:  (i) Lender shall have received the countersignatures of the Borrowers and Guarantors on this letter agreement agreeing to the terms and conditions of this letter agreement; (ii) all representations and warranties of the Borrowers and the Guarantors in the Loan Documents and this letter agreement shall be true and correct in all material respects as of the date hereof (except for such representations and warranties that by their terms expressly speak as of an earlier date, in which case such representations and warranties shall continue to be true and correct in all material respects as of such earlier date); (iii) Borrowers shall deliver to Lender, no later than five (5) days after receipt by Borrowers (or any Borrower’s board of directors), a copy of the investigation report (relating to sales practices and internal controls) produced by Latham & Watkins LLP; and (iv) no later than June 8, 2017, Borrowers shall deliver to Lender the NASDAQ’s consent to or approval of the extension of the due date (to at least June 30, 2017) for submission of the Borrowers’ final 10-K report for the fiscal year ending December 31, 2016.  With respect to the foregoing clauses (iii) and (iv), Borrowers’ failure to timely comply with either such requirement shall constitute an immediate Event of Default under the Credit Agreements and other Loan Documents.  

In order to induce Lender to execute and deliver this letter agreement, the Loan Parties hereby (i) represent and warrant that no Default or Event of Default exists on the date hereof, (ii) ratify and confirm all of the Obligations of the Loan Parties pursuant to the Loan Documents, and (iii) acknowledge that no investigation by Lender shall affect any representations or warranties made by the Loan Parties in this letter agreement or the right of Lender to rely upon them.

Except as expressly set forth herein, (i) the Loan Documents remain in full force and effect, (ii) this letter agreement shall not be deemed to be a waiver, amendment or modification of, or consent to or departure from, any provisions of the Credit Agreements or any other Loan Document or to be a waiver of any Default or Event of Default under the Loan Documents whether arising before or after the date hereof or as a result of the transactions contemplated hereby (except for the specific consent referenced above in this letter agreement), and (iii) this letter agreement shall not preclude the future exercise of any right, remedy, power or privilege available to Lender whether under the Credit Agreements, the other Loan Documents or otherwise and shall not be construed or deemed to be a satisfaction, novation, cure, modification, amendment or release of the Obligations, Credit Agreements, or other Loan Documents.

To further induce Lender to enter into this letter agreement, the Loan Parties each hereby absolutely and unconditionally releases and forever discharges Lender, and any and all participants, parent corporations, subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns thereof, together with all of the present and former directors, officers, agents, attorneys, and employees of any of the foregoing, from any and all claims, demands or causes of action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under any state or federal law or otherwise, which any Loan Party has had, now has or has made claim to have against any such person for or by reason of any act, omission, matter, cause or thing whatsoever arising from the beginning of time to and including the date of this letter agreement, whether such claims, demands and causes of action are matured or unmatured or known or unknown.  It is the intention of the Loan Parties in executing this release that the same shall be effective as a bar to each and every claim, demand and cause of action specified and in furtherance of this intention each Loan Party waives and relinquishes all rights and benefits under Section 1542 of the Civil Code of the State of California, which provides:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MIGHT HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
The parties acknowledge that each may hereafter discover facts different from or in addition to those now known or believed to be true with respect to such claims, demands, or causes of action and agree that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts.

This letter agreement (i) constitutes the entire understanding of the parties with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, with respect hereto are expressly superseded hereby, (ii) shall be governed by and construed in accordance with the laws of the State of California, and (iii) shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto.  This letter agreement may be executed in one or more counterparts (which taken together shall constitute one and the same instrument) and by facsimile or email (pdf) transmission, which facsimile or pdf signatures shall be considered original executed counterparts.

This letter agreement shall be deemed to be a “Loan Document” for purposes of the Credit Agreements and the other Loan Documents.

[signatures on following pages]

Kindly acknowledge your agreement with the terms and conditions of this letter agreement, by executing one copy of this letter in the space provided and returning it to Lender.

Very truly yours,

DASAN ZHONE SOLUTIONS, INC.        ZTI MERGER SUBSIDIARY III, INC.

By:  /s/ KIRK MISAKA                By:  /s/ KIRK MISAKA     
Name:  Kirk Misaka                     Name:  Kirk Misaka 
Title:  Chief Financial Officer                Title:  Chief Financial Officer

PREMISYS COMMUNICATIONS, INC.        ZHONE TECHNOLOGIES 
                            INTERNATIONAL, INC.

By:   /s/ KIRK MISAKA                By:   /s/ KIRK MISAKA     
Name:  Kirk Misaka                     Name:  Kirk Misaka 
Title:  Chief Financial Officer                Title:  Chief Financial Officer

PARADYNE NETWORKS, INC.            PARADYNE CORPORATION

By:   /s/ KIRK MISAKA                By:   /s/ KIRK MISAKA     
Name:  Kirk Misaka                     Name:  Kirk Misaka 
Title:  Chief Financial Officer                Title:  Chief Financial Officer

DASAN NETWORK SOLUTIONS, INC.

By:   /s/ KIRK MISAKA     
Name:  Kirk Misaka                      
Title:  Chief Financial Officer                

[signatures continued on next page]

Acknowledged and agreed to by Lender
as of the date first above written:

WELLS FARGO BANK, NATIONAL ASSOCIATION

By:  /s/ HARRY L. JOE      
Name:  Harry L. Joe
Title:  Authorized Signatory

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