Document:

Unassociated Document

EXECUTIVE TEAM INCENTIVE PLAN

Section 1:    DEFINITIONS

	
1.1  

	
Board:  the board of directors of the Company.

	
1.2  

	
CEO:  Chief Executive Officer of the Company.

	
1.3  

	
Code: the Internal Revenue Code of 1986, as amended.

	
1.4  

	
Compensation Committee: the Compensation Committee of the Board, which shall consist solely of three or more members of the Board who are not employees of the Company and who otherwise qualify as “independent directors” within the meaning of the Nasdaq Listing rules.

	
1.5  

	
Company: Sandy Spring Bancorp, Inc. and its subsidiaries.

	
1.6  

	
Corporate Goals:  the goal(s) or combined goal(s) determined by the Compensation Committee, in its discretion, to be applicable to a Participant with respect to payments hereunder.  As determined by the Compensation Committee, the Corporate Goals applicable to a payment hereunder may provide for a targeted level or levels of achievement using one or more of the following measures: (a) revenue, (b) net income, (c) efficiency ratio, (d) average loan growth, (e) average deposit growth, (f) average core deposit growth, (g) net interest margin, (h) fee based revenue growth, (i) non-performing assets as a percentage of total assets, (j) return on average equity, (k) return on average assets, (j) earnings per share, or such similar objectively determinable financial or other measures as may be adopted by the Compensation Committee.  The Corporate Goals may be based on absolute target numbers or relative results in one or more such categories compared to a prior period.  The measures which constitute the Corporate Goals may, at the discretion of the Compensation Committee, be based on pro forma numbers and may, as the Compensation Committee specifies, either include or exclude the effect of payment of the bonuses under this Plan and any other bonus plans of the Company.  The Corporate Goals may differ from Participant to Participant.  In establishing a Corporate Goal, the Compensation Committee may provide that the attainment of the Corporate Goal shall be measured by appropriately adjusting the evaluation of Corporate Goal performance to exclude (i) any extraordinary non-recurring items as described in Accounting Standards Codification 225-20-20 or in management’s discussion and analysis of financial conditions and results of operations appearing in the Company’s annual report to stockholders for the applicable year, or (ii) the effect of any changes in accounting principles affecting the Company’s or a business unit’s reported results.

	
1.7  

	
Disability: the termination of employment of a Participant due to the Participant’s permanent disability as determined pursuant to the Company’s long-term disability plan under which the Participant is covered.

 

  

  

  

 

	
1.8  

	
Eligible Employee or Employee: any regular full-time, active employee, as defined by the Company’s existing policy, of the Company at the level of executive vice president or above, as determined by the Company and reported on the payroll records of the Company.  Eligible Employee excludes every other individual, including employees classified as temporary under the Company’s policies, leased employees, consultants, and independent contractors (including freelancers), regardless of whether a court or administrative agency subsequently determines that such individuals are common law employees.

	
1.9  

	
Maximum Award:  means the maximum amount awarded to any individual Participant in the Performance Period, as established by the Compensation Committee.  The Maximum Award may differ from Participant to Participant.

	
1.10  

	
Normal Retirement:  termination of a Participant’s employment due to the Participant’s termination at or after attainment of normal retirement eligibility under the general applicable retirement plan of the Company.

	
1.11  

	
Participant:  an Eligible Employee who is designated by the Compensation Committee to participate in the Plan.

	
1.12  

	
Performance Period:  the fiscal year beginning January 1 and ending December 31.

	
1.13  

	
Plan:  this Sandy Spring Leadership Incentive Plan, as amended and restated.

	
1.14  

	
Plan Year:  the fiscal year beginning January 1 and ending December 31.

	
1.15  

	
Target Award:  the target award payable under the Plan to a Participant for the Performance Period expressed as a specific dollar amount or as a percentage of base salary, as determined by the Compensation Committee in accordance with Section 4.2.

Section 2:    OBJECTIVE

The Plan is an annual incentive program designed to reward Participants whose performance during the Plan Year enabled the Company to achieve favorable business results.  The Plan focuses Participant efforts on the achievement of specific goals in support of Company’s business strategies and provides for an opportunity to receive annual payouts based on individual and corporate performance.

Section 3:    ELIGIBILITY

	
3.1  

	
The Compensation Committee, in its sole discretion, shall select the Employees who shall be Participants for any Performance Period.  Participation in the Plan is in the sole discretion of the Compensation Committee, and shall be on a Performance Period by Performance Period basis.  Accordingly, an Employee who is a Participant for a given Performance Period is not guaranteed or assured of being selected for participation in any subsequent Performance Period.

 

  

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3.2  

	
No employee hired after October 1 shall be eligible for an award for the Plan Year in which he or she was hired.  Incentive awards for Participants hired between January 1 and October 1 will be pro-rated based on the employee’s date of hire (i.e. based on base salary actually earned in the year).

	
3.3  

	
To be eligible to receive an award, a Participant must be employed by the Company and actively performing his or her job through the date of determination of the amount of the actual award for the Performance Period, except as provided below in the event of death, Disability or Normal Retirement.

	
3.4  

	
If a Participant dies or terminates employment due to Disability or Normal Retirement during the Plan Year, the Employee may be eligible for a prorated payout for the portion of the year the Participant was employed by the Company subject to and in accordance with Section 6.6.  A Participant on military leave will be treated as actively at work for purposes of Section 3.3 to the extent required by applicable law.

Section 4:    INCENTIVE AWARDS

	
4.1  

	
The Compensation Committee, in its sole discretion, shall establish the Corporate Goals for all Participants for the Performance Period.  Such Corporate Goals shall be set forth in writing.  Corporate Goals for any Participant may be revised after the beginning of the Plan Year to reflect changing business priorities or changes in the Participant’s job or role.

	
4.2  

	
The Compensation Committee, in its sole discretion, shall establish a Target Award and a Maximum Award for each Participant. Such Target Award and Maximum Award shall be set forth in writing.

	
4.3  

	
The Compensation Committee, in its sole discretion, shall establish a payout formula or payout matrix in order to determine the actual award (if any) to be paid to Participants.  The formula or matrix may differ from Participant to Participant.  Each payout formula or matrix (i) shall be in writing, (ii) shall be based on a comparison of actual performance to the Corporate Goals, (iii) shall provide for the payment of a Participant’s Target Award if the Corporate Goals for the Performance Period are achieved, and (iv) may provide for an actual award greater than or less than the Participant’s Target Award, depending upon the extent to which actual performance exceeds or falls below the Corporate Goals.  Notwithstanding the foregoing or any other provision in the Plan, the actual award to be paid out shall not exceed the Maximum Award.

 

Section 5:   PAYOUT DETERMINATION

	
5.1

	
Following the Performance Period, the Compensation Committee will determine the amount of individual awards for each Participant based on the achievement of the applicable previously designated Corporate Goals and application of the payout formula or matrix.

 

  

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5.2

	
Participation in the Plan does not guarantee the Participant the payment of an award.  Notwithstanding any contrary provision of the Plan, the Compensation Committee, in its sole discretion, may eliminate or reduce the actual award payable to any Participant below that which otherwise would be payable under the payout formula or matrix, including discretion that is exercised through the establishment of additional objective or subjective goals.

	
5.3

	
Final incentive award payouts shall be paid only upon certification by the Compensation Committee of the extent to which the Corporate Goals, and any other material terms for the applicable Plan Year, have been satisfied.

Section 6:   AWARD ADMINISTRATION

	
6.1  

	
Awards shall be paid as soon as practical after the end of the Plan Year, but no later than March 15 of the subsequent Plan Year.

	
6.2  

	
Award payments shall be made to Participants in cash, provided that the Compensation Committee may, in its discretion, with respect to any Performance Period and with respect to one or more Participants, provide that all or any portion of awards to such Participants shall be paid in Company common stock or awards in respect of Company common stock pursuant to an equity plan maintained by the Company to the extent permitted by the terms of such plan.

	
6.3  

	
Participants on paid leaves of absence are eligible to receive an award prorated for the period of time they were on paid status and actively performing their jobs.  Payouts to those Participants on such paid leaves of absences at the time of payout are at the discretion of the Compensation Committee.

	
6.4  

	
Extraordinary occurrences may be considered by the Compensation Committee when assessing performance results and adjustments may be made to the performance measures at the discretion of the Compensation Committee to ensure that the objectives of the Plan are served.

 

	
6.5  

	
Awards payable under the Plan may not be assigned, transferred or subjected to liens except as otherwise provided by law.

	
6.6  

	
Except as provided in Section 6.7, if a Participant’s employment is terminated before December 31 of the Plan Year for reasons other than death, Disability or Normal Retirement, the Participant shall not be paid any award of the Plan Year in which employment terminates.  If such employment is terminated as a result of Disability or death, a prorated payout for the portion of the Plan Year the Participant was employed by the Company may, at the sole discretion of the Compensation Committee be made to the Participant or, in the event of death, to the Participant’s estate.  If a Participant’s employment is terminated as a result of a Normal Retirement, the Participant may, at the sole discretion of the Compensation Committee, be paid a pro-rata award for the Plan Year.  All payments made pursuant to this Section shall be subject to the attainment of the applicable Corporate Goals for the Participant for the relevant Plan Year and shall be payable at the time awards are otherwise payable, if at all, for such Plan Year.

 

  

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6.7  

	
Upon termination of a Participant’s employment under a severance plan or agreement, a prorated payment may be made at the sole discretion of the Compensation Committee; provided that the incentive awards shall be payable only upon attainment of the applicable Corporate Goals for the Participant for the relevant Plan Year and shall be payable at the time awards are otherwise payable, if at all, for such Plan Year.  Any payment under this Section 6.7 shall be conditioned upon the Participant’s prior execution and non-revocation of a severance agreement and release in the form provided by the Company within the time specified by such severance agreement and release form.

	
6.8  

	
Participation in the Plan does not confer any right to employment nor create an employment contract or agreement of any sort with any Participant.

Section 7:   FUNDING; NO CREATION OF TRUST

	
  

	
Amounts paid under the Plan shall be paid from the general funds of the Company, and each Participant shall be no more than an unsecured general creditor of the Company with no special or prior right to any assets of the Company for payment of any obligations hereunder.  Nothing contained in the Plan shall be deemed to create a trust of any kind for the benefit of any Participant, or create any fiduciary relationship between the Company and any Participant with respect to any assets of the Company.

Section 8:   GENERAL

	
8.1  

	
Notwithstanding any other provision of this Plan to the contrary, any award granted, and/or amount payable or paid hereunder shall be subject to potential cancellation, rescission, recoupment, payback or other action in accordance with the terms of the Company’s Clawback Policy, as it may exist from time to time, to the extent the Clawback Policy applies to such award or amount.  By accepting an award or the payment of any amount under the Plan, each Participant agrees and consents to the Company’s application, implementation and enforcement of (i) the Clawback Policy and any future amendment of the Clawback Policy or similar policies that may apply to the Participant and (ii) any provision of applicable law relating to cancellation, rescission, payback or recoupment of compensation and expressly agrees that the Company may take such actions as are permitted under the Clawback Policy or any similar policy as applicable to any Participant or applicable law without further consent or action being required by such Participant.  To the extent that the terms of this Plan and the Clawback Policy conflict, then the terms of the Clawback Policy shall prevail.

	
8.2  

	
The Plan shall be administered by the Compensation Committee. The Compensation Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all or part of its authority and powers under the Plan to one or more directors and/or officers of the Company.  The Compensation Committee shall have all discretion and authority necessary or appropriate to administer the Plan and to interpret the provisions of the Plan.  The decisions of the Compensation Committee, or any delegate of the Compensation Committee, regarding the interpretation and administration of the Plan are final and binding on all parties.

 

  

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8.3  

	
All awards to be paid under the Plan shall be subject to all applicable withholding taxes, including federal and state income and employment taxes.  The Participant’s employer shall withhold such taxes in accordance with applicable tax law.

	
8.4  

	
The Plan may be amended or terminated at any time for any reason by the Compensation Committee.  In particular and without limitation, the Compensation Committee may at any time amend or add to the provisions of the Plan and the terms of participation in the Plan as it considers necessary or desirable to take account or of to comply with relevant law or regulation or for any other reason.

	
8.5  

	
Each provision of this Plan is severable and if any provision is determined to be invalid or unenforceable, the validity and enforceability of the remaining provisions shall not be affected thereby.

	
8.6  

	
The laws of the state of Maryland shall control all matters relating to the Plan.

# # # #

Approved and Recommended for Adoption to the Board by the Compensation Committee on March 3, 2011.

Approved and duly Adopted by the Board on March 30, 2011.

 

  

6Unassociated Document

PROMISSORY NOTE

	
$25,000.00

	
March 30, 2011

 

The undersigned, Ascend Acquisition Corp., a Delaware corporation (hereinafter called "Maker" or the “Corporation”), whose address for purposes hereof is 970 West Broadway, PMB 402, Jackson, Wyoming 83001, for value received, without grace, in the manner, on the dates and in the amounts herein stipulated, promises to pay to the order of Jonathan J. Ledecky (hereinafter called "Payee"), at 970 West Broadway, PMB 402, Jackson, Wyoming 83001, or at such other place as Payee may hereafter designate, the sum of TWENTY FIVE THOUSAND DOLLARS ($25,000.00), in lawful money of the United States of America, with interest at the rate herein specified.

SECTION 1.  INTEREST ACCRUAL.  The unpaid principal amount from time to time outstanding hereunder shall bear interest from and after the date hereof until such amount is paid in full at a fixed rate per annum equal FIVE PERCENT (5%).  Interest on this Note shall be computed on the basis of a 365-day year for the actual number of days elapsed.

SECTION 2.  PAYMENT OBLIGATION AND PREPAYMENT.  The unpaid principal balance of this Note with all accrued but unpaid interest thereon shall be due and payable in full on DEMAND, or in the event there is no demand, on or before midnight on fifth annual anniversary of the date of this Note (the “Maturity Date”).

The principal amount of this Note and all accrued interest thereon may be prepaid in cash at any time.  Any payment shall be applied first, to accrued interest, and second, to principal.  No further interest will accrue on the portion of this Note to be prepaid from and after the date fixed for prepayment if payment of the prepayment amount has been made or duly provided for.

At any time prior to the Maturity Date and prior to payment or redemption of this Note, and, in the event that the Corporation elects to redeem or pay this Note prior to maturity, within ten days after Payee’s receipt of any redemption or prepayment notice, Payee may at his sole discretion convert the entire principal amount of this Note, or any portion thereof, together with accrued and unpaid interest, if any, into shares of common stock of the Corporation (“Common Stock”) at the conversion price as defined in section 3.5 below, subject to adjustments as described below (the “Conversion Price”).  The right to convert this Note by Payee after it is called for redemption will terminate at the close of the tenth day following receipt by Payee of a redemption notice; provided that such period for Conversion may be extended by the Corporation at its sole and absolute discretion.

SECTION 3.  CONVERSION.

3.1           Conversion. On a date (the "Conversion Date") on which any amount remains outstanding on this Note and on which Payee gives to Maker written notice that Payee wishes for the entire principal amount of this Note, or any portion thereof, together with accrued and unpaid interest, if any, to be converted into Maker’s Common, this Note shall, without any action required on the part of either Maker or Payee, automatically convert into, and Payee shall be entitled to receive in lieu of payment of the indebtedness evidenced hereby, a number of shares of Common Stock equal to the quotient of (a) a sum equal to the outstanding principal amount of and accrued interest on this Note that Maker desires to so convert, divided by (b) the "Conversion Price" (as defined in Section 3.5 below) in effect at the Conversion Date.

 

3.2           Issuance of Certificates. As promptly after the Conversion Date as reasonably practicable and after Payee’s surrender of this Note marked "Cancelled", Maker shall instruct its transfer agent to issue and deliver to Payee at the address of Payee set forth above, without any charge to Payee, a certificate or certificates (issued in the name of Payee) for the number of full shares of Common Stock of Maker issuable upon the conversion of this Note.

 

  

  

  

 

3.3           Status on Conversion. Upon conversion of this Note, Payee shall be deemed to have become the stockholder of record of the shares of Common Stock into which this Note is converted on the Conversion Date (unless the transfer books of Maker are closed on that date, in which event Payee shall be deemed to have become the stockholder of record on the next succeeding day on which the transfer books are open and the conversion shall be at the rate in effect on such date).

3.4           Elimination of Fractional Interests. No fractional shares of Common Stock shall be issued upon conversion of this Note, nor shall Maker be required to pay cash in lieu of fractional interests, it being the intent of the parties that all fractional interests shall be eliminated and that all issuances of Common Stock shall be rounded up to the nearest whole share.

3.5           Conversion Price.

(a)           The initial Conversion Price of this Note shall be $0.19.

(b)            The Conversion Price shall be adjusted from time to time as follows: if Maker shall at any time after the date hereof (i) issue any shares of Common Stock by way of a dividend or other distribution on any stock of Maker and without consideration, or (ii) subdivide or combine its outstanding shares of Common Stock, the Conversion Price shall be adjusted (to the nearest full cent) by multiplying (x) the Conversion Price in effect immediately prior to the adjustment by (y) a fraction, the numerator of which is the total number of shares of Common Stock outstanding immediately before the issuance of shares, and the denominator of which is the total number of shares of Common Stock outstanding immediately after such issuance or sale.  For the purposes of any computation to be made in accordance with this Section 3, shares of Common Stock issuable by way of dividend or other distribution on any stock of Maker shall be deemed to have been issued immediately after the opening of business on the day following the record date for the determination of stockholders entitled to receive such dividend or other distribution.

3.6           Effect of Reclassification, Consolidation, Merger, etc.  In case of the reclassification or change of outstanding shares of Common Stock (other than a change in par value, or from no par value to par value or vice versa, or as a result of a subdivision or combination), or in the case of any consolidation or merger of Maker with or into a corporation (other than a consolidation or merger into which Maker is the surviving corporation and which does not result in any reclassification or change of outstanding shares of Common Stock except a change as a result of a subdivision or combination of such shares or a change in par value as described above), or in the case of a sale or conveyance to another corporation of all or substantially all of the assets of Maker, this Note shall be converted on the Conversion Date into the kind and number of shares of stock and/or other securities or property receivable upon such reclassification, change, consolidation, merger, sale or conveyance by a holder of the number of shares of Common Stock into which this Note might have been converted immediately before the time of determination of the stockholders of Maker entitled to receive such shares of stock and/or other securities or property. Maker shall be obligated to retain and set aside, or otherwise make fair provision for exercise of the right of Payee to receive, the shares of stock and/or other securities or property provided for in this Section 3.6.

 

3.7           Certificate Concerning Adjusted Conversion Price. Whenever the Conversion Price is adjusted pursuant to this Section 3, Maker promptly shall: (i) place on file at its principal executive office an officer's certificate signed by the chief financial officer or controller of Maker showing in appropriate detail the facts requiring such adjustment, the computation thereof, and the adjusted Conversion Price, and shall exhibit the certificate from time to time to Payee of this Note if Payee desires to inspect the same; and (ii) mail or cause to be mailed to Payee, in the manner provided for giving notice pursuant to this Note, a notice stating that such adjustment has been made and setting forth the adjusted Conversion Price.

3.8           Reservation and Listing of Shares for Issuance. Maker shall reserve and keep available out of its authorized and unissued shares of Common Stock, for the purpose of effecting the conversion of this Note, such number of its duly authorized shares as shall from time to time be sufficient to effect the conversion of this Note. Maker covenants that all shares of Common Stock issued upon conversion of this Note in compliance with the terms hereof will be duly and validly issued and fully paid and non-assessable.  As long as this Note shall be outstanding, Maker shall use its reasonable best efforts to cause all shares of Common Stock issuable upon conversion of this Note to be listed (subject to official notice of issuance) on all securities exchanges on which the Common Stock is then listed, if any.

 

  

  

  

 

3.9           Investment Intent, Restrictions on Transfer, Legends etc. Payee acknowledges that this Note and the Common Stock to be issued upon conversion have not been registered under the Securities Act of 1933, as now in force or hereafter amended, or any successor legislation (the "Act"), and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Note or any Common Stock issued upon conversion in the absence of (i) an effective registration statement under the Act as to this Note or the Common Stock and registration or qualification of this Note or the Common Stock under any applicable blue sky or state securities law then in effect, or (ii) an opinion of counsel, satisfactory to Maker, that such registration and qualification are not required.  Without limiting the generality of the foregoing, unless the offering and sale of Common Stock issued upon conversion to be issued shall have been effectively registered under the Act, Maker shall be under no obligation to issue the shares covered by such conversion unless and until Payee shall have executed an investment letter in form and substance satisfactory to Maker, including a warranty at the time of such exercise that he is acquiring such shares for his own account, for investment and not with a view to, or for sale in connection with, the distribution of any such shares, in which event Payee shall be bound by the provisions of a legend to such effect on the certificate(s) representing Common Stock to be issued upon conversion.  In addition, without limiting the generality of the foregoing, Maker may delay issuance of Common Stock to be issued upon conversion until completion of any action or obtaining of any consent, which Maker believes necessary or advisable under any applicable law (including without limitation state securities or "blue sky" laws).

3.10           Registration Rights.  The Corporation hereby agrees that promptly after consummation by the Corporation of a merger, stock exchange, asset acquisition or other form of business combination, it shall file a registration statement covering the resale by the Payee of the shares of Common Stock issuable upon conversion of this Note and use its best efforts to have such registration statement declared effective by the Securities and Exchange Commission as soon as possible.

SECTION 4. DEFAULTS AND REMEDIES.

Time is of the essence concerning this Note.  If this Note is not timely paid at maturity, then Payee may institute in any court of competent jurisdiction an action for collection.  In such event, Maker agrees to pay all expenses incurred, including reasonable attorneys' fees, all of which shall become a part of the principal hereof.

Maker and each and all other liable parties expressly and specifically, (i) severally waive grace, presentment for payment, demand for payment, notice of intent to accelerate and notice of acceleration, notice of dishonor, protest and notice of protest, notice of nonpayment, and any and all other notices, the filing of suit and diligence in collecting this Note or enforcing any of the security herefor, (ii) severally agree to any substitution, subordination, exchange or release of any security held for the payment of this Note or any other obligation to Payee and release of any party primarily or secondarily liable hereon, (iii) severally agree that Payee shall not be required first to institute suit or exhaust Payee's remedies hereon against Maker or other parties liable hereon or to enforce Payee's rights against them or any security herefor in order to enforce payment of this Note by any of them, and (iv) severally agree to any extension or postponement of time of payment of this Note and to any other indulgence with respect hereto without notice thereof to any of them.

SECTION 5. MISCELLANEOUS.

The invalidity, or unenforceability in particular circumstances, of any provision of this Note shall not extend beyond such provision or such circumstances and no other provision of this Note shall be affected thereby.

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE AND THE APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

IN WITNESS WHEREOF, the undersigned has set his hand hereunto as of as of the day and year first above written.

 

	  	
ASCEND ACQUISITION CORP.  

	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	
By:

	
 /s/ Jonathan J. Ledecky

	  
	  	  	
Jonathan J. Ledecky, Chief Executive Officer

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