Document:

Exhibit

Exhibit  10.1

AGREEMENT REGARDING 
CANCELLATION OF EMPLOYMENT AGREEMENTS 
AND RELEASE OF CLAIMS

This Agreement Regarding Cancellation of Employment Agreements and Release of Claims (this “Agreement  and Release”), dated and effective as of March 5, 2019 (the “Effective Date”, by and among BankFinancial Corporation (the “Company”), BankFinancial, National Association, formerly known as BankFinancial, F.S.B. (the “Bank”) and James J. Brennan (“Executive”) has been entered into to resolve any and all claims between the parties relating to the cancellation of the Executive’s employment agreements.

WITNESSETH

Whereas, the Bank and Executive are parties to that certain Amended and Restated Employment Agreement dated May 6, 2008, as most recently amended on June 18, 2018  (the “Bank Employment Agreement”); and

WHEREAS, the Company and Executive are parties to that certain Employment Agreement dated October 20, 2008, as most recently amended on June 18, 2018 (the “Company Employment Agreement,” and collectively with the Bank Employment Agreement, the “Employment Agreements”); and

WHEREAS, the Employment Agreements provide that Executive will be entitled to resign for “Good Reason” (as defined in the Employment Agreements) and receive a severance payment in the event the Bank Board and/or the Company Board decide not to, or fail to, elect or re-elect or appoint or reappoint Executive as General Counsel, Secretary and Executive Vice President of the Corporate Affairs Division of the Bank and the Company (the “Executive Positions”) or fail to extend the Employment Period (as defined in the Employment Agreements) for an additional year; and

WHEREAS, the Bank and the Company desire to undertake an internal reorganization and restructure certain corporate positions, including the cessation of Executive’s service as the Executive Vice President and General Counsel of the Bank and the Company, the transfer of the Executive to a different non-executive position or positions in the Bank and the Company from the Executive Positions he presently holds with a commensurate reduction of working hours, base salary and certain benefits, and to terminate his Employment Agreements without severing Executive’s employment in an “at-will” non-executive capacity; and

WHEREAS, the Bank and the Company realize that such corporate action would entitle Executive to resign and receive a payment of certain severance benefits and the Bank and the Company desire to retain Executive in the employ of the Bank and the Company and have offered to make the payments to Executive to which he would otherwise be entitled on a termination for Good Reason, provided Executive remains in the employ of the Bank and the Company for an indefinite period of time as an “at will” employee in a non-executive capacity and enters into a release of claims with respect to any further payments or benefits under the Employment Agreements and any amounts he may be due for incentive compensation and bonuses; and

WHEREAS, Executive has agreed to the terms and conditions of the offer and is willing to enter into this Agreement and Release regarding said payments and Executive’s release of claims under the Employment Agreements.

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it is agreed as follows:

1.    Acknowledgment of Payment, Release and Waiver.
(a)In consideration of the payment of Eight Hundred and Eighty Six Thousand Five Hundred and Seventy Eight Dollars and 00/100 ($886,578.00) less applicable withholding taxes (the “Payment”) on the Effective Date, Executive, the Bank and the Company hereby agree that the Employment Agreements shall terminate without any further action of the Bank, the Company or Executive.  For the avoidance of doubt, effective as of the Effective Date, Executive shall no longer be entitled to any special benefits or perquisites to which he was entitled under the Employment Agreements, including but not limited to the payment or reimbursement of club dues, an automobile allowance or use of an automobile owned or leased by the Bank or the Company or such other benefits or perquisites set forth in the Employment Agreements that were specifically available to Executive under said Employment Agreements and not otherwise available to senior employees of the Bank and the Company.  

(b)Executive shall cease to be the Executive Vice President and General Counsel of the Bank and the Company on the Effective Date, and he shall not be in charge of any business unit, division or function of the Bank or the Company.  Following the Effective Date, Executive shall serve as an “at will” employee of the Bank and Company in a non-executive capacity.  Executive shall continue to serve as secretary to the Bank and the Company at the will of their respective Boards, but his role as secretary will only be ministerial in nature and shall not involve any policy-making functions.

2.     Release and Waiver.

(a)Upon and as a condition of the receipt by Executive of the Payment, Executive, for himself and for his heirs, successors and assigns, hereby releases completely and forever discharges the Bank and the Company, their present and former shareholders, present and former officers, directors, and managers, present and former attorneys, consultants, present and former agents, and the predecessors, successors, and assigns of all or any of them (collectively, their “Affiliates”), from any obligation under the Employment Agreements and any amounts Executive may be due for incentive compensation and bonuses.  For the avoidance of doubt, Executive hereby releases the Bank, the Company and their Affiliates from any and all claims, demands, causes of actions and liabilities arising out of the Employment Agreements and the termination thereof, including, but not limited to, claims, demands, causes of action and liabilities for wages, back pay, front pay, attorney's fees, other sums of money, insurance, benefits, or contracts; and all claims, demands, causes of actions and liabilities arising out of or under the statutory, common law or other rules, orders or regulations of the United States or any State or political subdivision thereof relating to the termination of the Employment Agreements, whether now existed or hereinafter enacted or adopted, including the Age Discrimination in Employment Act and the Older Workers Benefit Protection Act, and no further payments,  benefits or rights shall be due Executive under said Employment Agreements. 
(b)This Agreement and Release shall not affect Executive's rights or benefits as an employee “at will”: (i) to the payment of base salary determined by the Bank in its sole discretion; (ii) to receive those benefits, including incentive compensation, available to employees of the Bank and the Company on the same payment terms and conditions regarding eligibility and vesting as are available to other similarly situated employees; (iii) in any equity compensation which has previously been granted to him, or (iv) the Bank’s 401(k) Plan in which he currently participates, subject to the terms and conditions of said plan.   Notwithstanding anything to the contrary set forth herein, this Agreement and Release shall not terminate Executive’s right to indemnification, advancement and insurance to the extent set forth in Section 19(a) of the Employment Agreements and under applicable law, or the obligations of Executive under Section 8 of the Employment Agreements that by their terms survive the termination of the Employment Agreements.

3.    General Provisions.

(a)    Heirs, Successors and Assigns.  The terms of this Agreement and Release shall be binding upon the parties hereto and each of their respective heirs, successors and assigns.

         (b)    Final Agreement.  This Agreement and Release represents the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior understandings, written or oral.  The terms of this Agreement and Release may be changed, modified or discharged only by an instrument in writing signed by the parties hereto. 

(c)     Governing Law.  This Agreement and Release shall be construed, enforced and  interpreted in accordance with and governed by the laws of the State of Illinois, without reference to its principles of conflicts of law.

(d)    Counterparts.  This Agreement and Release may be executed in one or more counterparts, each of which counterpart, when so executed and delivered, shall be deemed an  original and all of which counterparts, taken together, shall constitute but one and the same agreement.

(e)    Severability.  Any term or provision of this Agreement and Release which is held to be invalid or unenforceable shall be ineffective to the extent of such invalidity or  unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement and Release.

(f)    Binding  Agreement.  Executive acknowledges that by his free and voluntary act of signing below, Executive agrees to all the terms of this Agreement and Release and intends to be legally bound thereby.

(g)     Arbitration.  All claims, cases or controversies arising out of or in connection with either this Agreement and Release, Executive’s employment with the Bank or the termination or cessation of such employment (collectively, “Employment Claims”), whether asserted against the Bank, an Affiliate (as defined below), and/or an officer, director or employee of the Bank or an Affiliate, and whether based on this Agreement or existing or subsequently enacted or adopted statutory or common law doctrines, shall be finally settled by arbitration conducted by JAMS or a successor entity (“JAMS”) in Chicago, Illinois, in accordance with the then applicable Employment Arbitration Rules and Procedures of JAMS, or in the event JAMS or a successor in interest of JAMS no longer provides arbitration services, by the American Arbitration Association or a successor entity (the “AAA”) in accordance with its then applicable National Rules for the Resolution of Employment Disputes.  The costs and fees imposed by JAMS or the AAA for conducting such arbitration shall be borne equally by Executive and the Bank unless the arbitrator determines otherwise.  The award rendered by the arbitrator(s) shall be final and binding upon Executive, the Bank and any other parties to such proceeding, and may be entered and enforced as a judgment in any court of competent jurisdiction.

IN WITNESS  WHEREOF, the parties hereto have signed this Agreement and Release.

[Signatures appear on next page]

	
						
	EXECUTIVE
	 
	 
	DATE

	 
	 
	 
	 
	 
	 

	/s/ James J. Brennan
	 
	 
	 
	March 5, 2019

	James J. Brennan
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	BANKFINANCIAL, F.S.B.
	 
	DATE

	 
	 
	 
	 
	 
	 

	By: 
	/s/ F. Morgan Gasior
	 
	 
	 
	March 5, 2019

	Name:
	F. Morgan Gasior
	 
	 
	 
	 

	 
	Chief Executive Officer
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	BANKFINANCIAL CORPORATION
	 
	DATE

	 
	 
	 
	 
	 
	 

	By: 
	/s/ F. Morgan Gasior
	 
	 
	 
	March 5, 2019

	Name:
	F. Morgan Gasior
	 
	 
	 
	 

	 
	Chief Executive OfficerExhibit 10.1

 

DEAN FOODS COMPANY CORPORATE

2019 SHORT-TERM INCENTIVE COMPENSATION PLAN

 

	
Purpose:
    	
To (i) align   employee variable cash compensation with the annual objectives of the   Company, (ii) retain and motivate employees to execute the   Company’s financial and strategic plans, and (iii) attract talent and   retain key employees with competitive variable cash compensation.
    
	
 
    	
 
    
	
Participants:
    	
Employees of Dean Foods   who are in positions to influence and/or control results of the Company   and/or their specific areas of responsibility are eligible to participate.
    
	
 
    	
 
    
	
Payout   Criteria:
    	
The criteria for   payment to Participants under this short-term incentive (“STI”)   compensation plan (the “STI Plan” or “Plan”) and the weighting   of such criteria is based on performance against financial targets,   individual target incentive percentages, and performance against individual   objectives as set forth below.
    

 

	
Participant Group
    	
 
    	
Components
    
	
CEO
    	
 
    	
· 75% Financial Objectives
    
	
All EVPs and SVPs, and
    	
 
    	
(Based on Dean Foods Adjusted Operating Cash Flow   Target)
    
	
All grade 10-20 and grade 99 staff not covered by   another STI Plan
    	
 
    	
· 25% Individual Objectives 
   (Based on Achievement of Individual Objectives)
    

 

	
Payout   Scales:
    	
The financial payout   factor is 0% - 100% based on actual performance against approved financial   objectives. The individual objective factor is 0% - 100% based on actual   performance against approved individual objectives. Payments under the STI   Plan are variable in nature and are subject to the performance payout   criteria set out below.
    

 

	
Financial   Objectives Performance Payout Criteria:
    	
Each Participant has   75% of his or her STI target calculated against the attainment of certain   financial objectives as determined by the Compensation Committee of the   Company’s Board of Directors. Any payout under the financial objectives   portion of the STI award is subject to the Company meeting a minimum Adjusted   Operating Cash Flow (“OCF”) threshold equal to 50.1% of the OCF target   established by the Compensation Committee. Payout under the financial   objectives component for the Plan Year will be capped at 100% of target for   Participants receiving a rating of Solid Performer or better and capped at   50% for Participants receiving a rating of Needs Improvement with no payout   to Participants receiving an Unsatisfactory Performance rating for the Plan   Year. The Participant must be actively employed by the Company on the last   day of the Plan Year to be eligible for a payout under the financial   objectives portion of the Plan. The STI Plan Year is the same as the Dean   Foods fiscal year.
    

 

 

	
Individual   Objectives Performance Payout Criteria:
    	
Each Participant has   25% of his or her STI target calculated against the attainment of certain   specified individual objectives as determined by the Participant’s supervisor   and / or Compensation Committee of the Board of Directors. Depending on the   Participant’s role in the organization, individual objectives may be based on   corporate, functional, business unit, or individual objectives. Actual earned   awards are based on the individual’s performance against individual   objectives and rating under the performance management process, with payout   guaranteed at target for a rating of Solid Performer or better and no payout   for a rating of Needs Improvement or Unsatisfactory Performance in the Plan   Year. In order to be eligible for a payout under the individual objectives   component of the Plan, the Participant must be actively employed by the   Company on the date the payment is made.
    
	
 
    	
 
    
	
Adjustment   of Targets / Actuals:
    	
Upon the recommendation   of the CEO, the Compensation Committee may (but has no obligation to) adjust   the criteria, targets, actuals, or payout scale upon the occurrence of   extraordinary events or circumstances. Significant acquisitions or   dispositions of assets or companies or issuances or repurchases of common   stock or other equity interests may, at the Compensation Committee’s   discretion, result in an adjustment to the Dean Foods financial target or   plan-specific financial target.
    
	
 
    	
 
    
	
Determination   of Individual Target Incentive:
    	
Individual target   incentives for specific positions are included in the Dean Foods Compensation   Program. The Company may make adjustments to an individual’s target incentive   based on market conditions or business requirements, as necessary.
    
	
 
    	
 
    
	
Definitions:
    	
“Disability” is defined   as permanent and total disability (within the meaning of Section 22(e)(3) of   the Internal Revenue Code).
    
	
 
    	
 
    
	
 
    	
“Retirement” is defined   as age sixty-five (65).
    
	
 
    	
 
    
	
Eligibility:
    	
Eligibility is   determined by salary grade in the Company, or as approved by the SVP, Human   Resources, or his/her designate. Except as otherwise provided by State law,   in in order to be eligible to receive an incentive award, participants must   be (i) for the Financial Objectives component, employed by the Company   on the last working day of the Plan Year and (ii) for the Individual   Objectives component, employed by the Company on the date the STI payment is   made.
    
	
 
    	
 
    
	
 
    	
A Participant is   disqualified from receiving any incentive award (financial and / or   individual) under the Plan if: (1) the Participant receives an   Unsatisfactory Performance (or equivalent) rating for the Plan Year or   (2) the Participant is terminated for Cause, as defined below, at any   point during the Plan Year or between the last working day of the Plan Year   and the date the incentive award is paid, except as otherwise provided by   State law.
    
	
 
    	
 
    
	
 
    	
If a Participant dies,   becomes disabled, or retires prior to the payment of awards or if a   Participant’s job is eliminated and such job elimination makes the   Participant eligible to receive benefits under a Company severance plan or   policy, the Participant may receive a payout, at the time other incentive   awards are paid, based on actual time in the position during the Plan Year,   and actual results of the Company.
    
	
 
    	
 
    
	
 
    	
Eligibility and   individual target amounts may be prorated. A Participant’s year-end base   salary will be used to calculate the incentive award in the case of those   individuals actively employed by the Company on the last working day of the   Plan Year. A Participant’s base salary at the time of death, disability, retirement,   or job elimination will be used to calculate the prorated incentive award in   those specific circumstances.
    

 

 

	
 
    	
All proration of   incentive awards will be calculated based on whole month participation. If an   employee becomes eligible to participate in the Plan, transfers between   Plans, changes target participation in the Plan, or becomes ineligible to   participate in the Plan between the first day of the month and the   15th of the month, the incentive award will be calculated based on full   month participation. If the eligibility change occurs between the 16th of the   month and the end of the month, the incentive award will be calculated   beginning with the full calendar month following the change. There will be no   award made for employees hired after December 15th of the Plan Year.
    
	
 
    	
 
    
	
“Cause”   Defined:
    	
For purposes of this   Plan, “Cause” means a Participant’s (i) failure to perform   substantially a Participant’s duties; (ii) serious misconduct that has   caused, or could reasonably be expected to result in, material injury to the   business or reputation of the Company; (iii) conviction of, or entering   a plea of guilty or nolo   contendere to, a crime constituting a felony;   (iv) breach of any written covenant or agreement with the Company, any   material written policy of the Company or any Company code of conduct or code   of ethics, or (v) failure to cooperate with the Company in any internal   investigation or administrative, regulatory or judicial proceeding.
    
	
 
    	
 
    
	
Repayment   Provision:
    	
All Plan participants   agree and acknowledge that this Plan is subject to the policies that the   Compensation Committee of the Dean Foods Board of Directors may adopt from   time to time, with respect to the repayment to the Company of any plan   benefit received, including “clawback” policies.

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