Document:

a50517880ex10_1.htm

AGREEMENT       (Exhibit 10.1)

 

THIS AGREEMENT made the 27th day of December, 2012, between Culp, Inc., a corporation organized and existing under the laws of the State of North Carolina (hereinafter called the “Corporation”), Robert G. Culp, III (hereinafter called the “Employee”), and Robert G. Culp III Irrevocable Trust dated December 11, 2012 (the “Trust”);

 

W I T N E S S E T H:

 

WHEREAS, the Employee is employed by the Corporation; and

 

WHEREAS, the Corporation highly values the long term efforts, abilities, and accomplishments of the Employee; and

 

WHEREAS, the Corporation and the Employee previously entered into a Split Dollar Agreement dated February 24, 2003 (the “Insurance Agreement”), pursuant to which the Corporation agreed to purchase and pay premiums on a policy of life insurance insuring the Employee and the Employee’s spouse (hereinafter referred to as the “Policy”); and

 

WHEREAS, the Policy purchased under the Insurance Agreement is ING/Security Life of Denver (formerly Southland Life Insurance Company) policy number 06 6002 5882, with a face amount of $8,000,000; and

 

WHEREAS, the Employee assigned all of his right, title and interest in and to the Insurance Agreement and the Policy to the Robert G. Culp, III Irrevocable Trust Agreement #3 dated December 27, 1993 (the “1993 Trust”) by an agreement dated February 24, 2003; and

 

WHEREAS, the 1993 Trust assigned all of its right, title and interest in and to the Insurance Agreement to the Trust by an agreement dated December 21, 2012; and

 

WHEREAS, the Insurance Agreement contains provisions providing for termination of the Agreement and purchase of the Policy by the Employee (and his Assignee, the Trust) prior to the last to die of the Employee or the Employee’s spouse; and

 

WHEREAS, the Employee, the Trust and Corporation desire to terminate the Insurance Agreement and to transfer the Policy to the Trust by having the Trust purchase the Policy from the Corporation, in accordance with the terms of the Insurance Agreement, and to enter into other arrangements as set forth herein;

 

NOW, THEREFORE, in consideration of the premises and the mutual promises contained herein, the parties hereto agree as follows:

 

1.           The Insurance Agreement between the Corporation and the Employee, as assigned to the Trust, is hereby terminated in accordance with the terms of the Insurance Agreement.

 

2.           The Trust, as Employee’s Assignee, hereby exercises its option to purchase the policy from the Corporation, as provided in the Insurance Agreement.  The purchase price for the Policy shall be cash in the amount of the cash surrender value (CSV) of the Policy, which amount is agreed to be $625,595.28.  Upon receipt of such amount, the Corporation agrees to transfer all of its right, title and interest in and to the Policy to the Trust, by the execution and delivery of an appropriate instrument of transfer.

 

  

  

  

 

3.           In recognition of termination of the Insurance Agreement, of suspended premium payments during a portion of the period covered by the Insurance Agreement, and in recognition of Employee’s continuing valuable services to the Corporation, the Corporation agrees that during the period of Employee’s continued employment with the Corporation, but in no event for a period longer than twelve (12) years from the date hereof, the Corporation will make an annual payment to the Employee in the amount of $60,000 per year.  Such payments will be treated as regular compensation to Employee and will be subject to tax withholding and other similar requirements.

 

4.           Except as expressly provided herein, the Corporation, the Employee and the Trust will have no further obligations under the Insurance Agreement.

 

5.           This Agreement may not be amended, altered or modified, except by a written instrument signed by the parties hereto, or their respective successors or assigns.

 

6.           This Agreement shall be binding upon and inure to the benefit of the Corporation and the Trust and their respective successors and assigns, and the Employee, his successors, assigns, heirs, executors, administrators, and beneficiaries.

 

7.           This Agreement and the rights of the parties hereunder, shall be governed by and construed in accordance with the laws of the State of North Carolina.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement, as of the day and year first above written.

 

	 	
CULP, INC.

	 	 
	 	
By:

	
/s/ Franklin N Saxon

	 	
Title:

	
President and Chief Executive Officer

	 	 	 
	 	/s/ Robert G. Culp, III                                               (SEAL)
	 	
Robert G. Culp, III, EMPLOYEE

	 	 
	 	 
	 	
ROBERT G. CULP III IRREVOCABLE TRUST

DATED DECEMBER 11, 2012

	 	
By:

	
Atlantic Trust Company, Trustee

	 	 	 
	 	
 

	
 
By:        /s/ W. Scott Thompson

	 	
 

	
 
Title:     Managing Directorexh_101.htm

Exhibit 10.1

United States Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington, D.C. 20220

December 28, 2012

Ladies and Gentlemen:

Reference is made to that certain Letter Agreement incorporating the Securities Purchase Agreement – Standard Terms (the “Securities Purchase Agreement”), dated as of the date set forth on Schedule A hereto, between the United States Department of the Treasury (the “Investor”) and the company set forth on Schedule A hereto (the “Company”).  Capitalized terms used but not defined herein shall have the meanings assigned to them in the Securities Purchase Agreement.  Pursuant to the Securities Purchase Agreement, at the Closing, the Company issued to the Investor the number of shares of the series of its preferred stock set forth on Schedule A hereto (the “Preferred Shares”) and a warrant to purchase the number of shares of its common stock set forth on Schedule A hereto (the “Warrant”).

 

In connection with the consummation of the repurchase (the “Repurchase”) by the Company from the Investor, on the date hereof, of the number of Preferred Shares listed on Schedule A hereto (the “Repurchased Preferred Shares”), as permitted by the Emergency Economic Stabilization Act of 2008, as amended by the American Recovery and Reinvestment Act of 2009:

 

(a)           The Company hereby acknowledges receipt from the Investor of the share certificate set forth on Schedule A hereto representing the Preferred Shares; and

 

(b)           The Investor hereby acknowledges receipt from the Company of a wire transfer to the account of the Investor set forth on Schedule A hereto in immediately available funds of the aggregate purchase price set forth on Schedule A hereto, representing payment in full for the Repurchased Preferred Shares at a price per share equal to the Liquidation Amount per share, together with any accrued and unpaid dividends to, but excluding, the date hereof.

 

The Investor and the Company hereby agree that, notwithstanding Section 4.4 of the Securities Purchase Agreement, immediately following consummation of the Repurchase, but subject to compliance with applicable securities laws, the Investor shall be permitted to Transfer all or a portion of the Warrant with respect to, and/or exercise the Warrant for, all or a portion of the number of shares of Common Stock issuable thereunder, at any time and without limitation, and Section 4.4 of the Securities Purchase Agreement shall be deemed to be amended in order to permit the foregoing.  The Company shall take all steps as may be reasonably requested by the Investor to facilitate any such Transfer.

 

  

  

  

In addition, the Company agrees that in the event it elects to repurchase the Warrant, it shall deliver to the Investor within 15 calendar days of the date hereof a notice of intent to repurchase the Warrant, which notice shall be in accordance with Section 4.9(b) of the Securities Purchase Agreement (the “Warrant Repurchase Notice”).  In the event the Company does not deliver the Warrant Repurchase Notice to the Investor within 15 calendar days of the date hereof, the Investor hereby provides notice, pursuant to Section 4.5(p) of the Securities Purchase Agreement, of its intention to sell the Warrant, such notice to be effective as of the first day following the end of such 15-day period.

 

In the event that the Company delivers a Warrant Repurchase Notice and the Company and the Investor fail to agree on the Fair Market Value of the Warrant pursuant to the procedures (including the Appraisal Procedure), and in accordance with the time periods, set forth in Section 4.9(c) of the Securities Purchase Agreement or the Company revokes the delivery of such Warrant Repurchase Notice, then the Investor hereby provides notice of its intention to sell the Warrant.

 

This letter agreement will be governed by and construed in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State.

This letter agreement may be executed in any number of separate counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts will together constitute the same agreement.  Executed signature pages to this letter agreement may be delivered by facsimile and such facsimiles will be deemed sufficient as if actual signature pages had been delivered.

[Remainder of this page intentionally left blank]

 

  

  

  

In witness whereof, the parties have duly executed this letter agreement as of the date first written above.

 

	 	 
UNITED STATES DEPARTMENT OF

THE TREASURY

	 	 	 	 
	 	 	 	 
	 	By:	/s/ Timothy G. Massad
	 	 	Name:	Timothy G. Massad
	 	 	Title:	Assistant Secretary for Financial Stability
	 	 	 	 
	 	 	 	 
	 	 
MID PENN BANCORP, INC.

	 	 	 	 
	 	 	 	 
	 	By:	/s/ Kevin W. Laudenslager
	 	 	Name:	Kevin W. Laudenslager
	 	 	Title:	Vice President and Treasurer

  

  

  

SCHEDULE A

	
General Information:

	 	  
	
Date of Letter Agreement incorporating the Securities Purchase Agreement:

	 	
December 19, 2008

	
Name of the Company:

	 	
Mid Penn Bancorp, Inc.

	
Corporate or other organizational form of the Company:

	 	
Corporation

	
Jurisdiction of organization of the Company:

	 	
Pennsylvania

	
Number and series of preferred stock issued to the Investor at the Closing:

	 	
10,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A

	
Number of Initial Warrant Shares:

	 	
73,099

	  	 	  
	
Terms of the Repurchase:

	 	  
	
Number of Preferred Shares repurchased by the Company:

	 	
10,000

	
Share certificate number (representing the Preferred Shares previously issued to the Investor at the Closing):

	 	
2

	
Per share Liquidation Amount of Preferred Shares:

	 	
$1,000.00

	
Accrued and unpaid dividends on Preferred Shares:

	 	
$59,722.22

	
Aggregate purchase price for Repurchased Preferred Shares:

	 	
$10,059,722.22

	
Investor wire information for payment of purchase price:

	 	
ABA Number:  021000018

Bank:   The Bank of New York Mellon

Account Name:   BETA EESA Preferred Account

Account Number:   GLA/111567

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