Document:

EX-10.1

 Exhibit 10.1 
 AGREEMENT 
 BETWEEN 

ATRICURE, INC. AND DAVID J. DRACHMAN 
 AtriCure, Inc., a Delaware corporation (“AtriCure” or the “Company”) and David J. Drachman (“Executive”) enter into this Agreement (the “Agreement”), effective on
the date falling eight days after the date of signature below (the “Effective Date”). 
 WHEREAS, Executive has been
employed as President and Chief Executive Officer for AtriCure, Inc. (the “Company”); 
 WHEREAS, Executive desires to
resign his employment effective September 30, 2012; 
 WHEREAS, the parties are desirous of resolving all matters
concerning Executive’s employment with the Company and thereof based upon a mutual understanding, with finality and without further expenditure of time, effort, money, and without admitting that any unlawful or improper action occurred;

 NOW, THEREFORE, in consideration of the covenants and mutual promises herein contained, it is agreed as follows: 

1. Executive’s last day working as President and Chief Executive Officer of AtriCure shall be September 30, 2012. Executive
agrees to continue performing services for the Company in his capacity as President and Chief Executive Officer of the Company from the Effective Date until September 30, 2012 (the “Termination Date”) in accordance with the terms, and
subject to the conditions, of the Employment Agreement between Executive and the Company dated February 9, 2007, as amended (the “Employment Agreement”), including without limitation the Company’s obligation to continue paying
Executive his base salary at the level in effect as of the Effective Date and providing Executive of all the benefits set forth in Sections 6 and 7 of the Employment Agreement, in each case through the Termination Date. Executive shall perform such
duties and responsibilities as may be properly and lawfully required from time to time by the Board of Directors. As of the Termination Date, Executive shall resign from any and all directorships Executive may hold with the Company or any of its
affiliates. Executive hereby submits his resignation from the Company’s Board of Directors effective as of 11:59 p.m. August 2, 2012. 
 2. Provided Executive executes this Agreement and does not revoke any provision hereof pursuant to Paragraph 6(b), the Company hereby agrees to pay Executive the following amounts: 

(a) All accrued and unpaid base salary through the Termination Date. 

(b) Executive will be paid for any accrued and unused vacation per AtriCure’s policy, less all applicable withholding taxes through
the Termination Date.
 (c) From and after the Termination Date separation pay equal to six (6) months of Executive’s
base salary payable in equal installments for 12 payroll periods (6 months) according to AtriCure’s ordinary payroll practices, less all applicable withholding taxes. 

(d) Executive’s stock options and restricted stock shall be governed by AtriCure’s 2005 Equity Incentive Plan.
The parties acknowledge that Exhibit A provides a complete and accurate listing of all outstanding and unvested Company stock options (“Stock Options”) and shares of restricted stock (“Restricted Stock”) held by Executive
as of the Termination Date, along with the applicable grant dates and vesting dates for each grant of Stock Options and Restricted Stock. From the date hereof through March 31, 2013, Executive shall vest in that portion of the Stock
Options and shares of Restricted Stock as though he had remained employed with the Company through that date. In addition, all outstanding and vested Stock Options (including 

 
those that vest pursuant to the operation of the immediately preceding sentence) will remain exercisable through March 31, 2013 (or if earlier, through the full duration of their stated
term). The portion of the Stock Options and Restricted Stock that remain unvested after the application of this Section 2(d) (which includes, for the avoidance of doubt, the Stock Options and Restricted Stock that would have otherwise
vested after March 31, 2013) shall automatically be forfeited without further action by the parties, and shall be of no further force or effect, as of the close of business on March 31, 2013. The parties acknowledge that pursuant to the
terms of the applicable equity plan, Executive may elect, on a form provided by the Company, to have the minimum required tax withholding obligation related to the vesting of shares of Restricted Stock pursuant to the application of this
Section 2(d) satisfied either via a net share withholding method authorized by the applicable equity plan or by Executive paying the required tax withholding to the Company (and if the Company shall fail to provide such election form to
Executive within 20 calendar days prior to the Termination Date, then Executive shall have the right to notify the Company in writing, no later than 10 calendar days prior to the Termination Date, regarding his elected withholding
method).
 (e) AtriCure shall reimburse Executive for the reasonable attorneys’ fees he incurred in
connection with the negotiation, implementation, and documentation of this Agreement and other arrangements relating to his termination of employment with the Company, which reimbursement shall be payable in a single lump sum no later than 45
calendar days after the Effective Date, provided that Executive submits the reimbursement request to the Company in writing, with supporting documentation, no later than 20 calendar days after the Effective Date, and in no event shall the Company
reimburse attorneys’ fees in excess of $15,000 
 Executive acknowledges and agrees that, other than as specifically set
forth in this Agreement, Executive is not and will not be due any additional compensation, including, but not limited to, compensation for unpaid salary, unpaid bonus, severance, vacation pay from the Company, and any other compensation after the
Date of Termination, except as provided herein. The Company agrees to indemnify Executive to the extent provided in its Second Amended and Restated Bylaws. 
 3. On the Effective Date AtriCure will provide Executive with a letter of reference as provided and signed by the Chairman of the Board. AtriCure will respond to inquiries generally consistent with the
letter of reference. Executive shall provide the Company not later than 4:00 p.m. Cincinnati, Ohio time on August 1, 2012 a proposed statement subject to Company consideration to be included in any filing required by the U.S. Securities and
Exchange Commission that describes his termination. Any communications to third parties shall be consistent with such statement. Executive and AtriCure agree not to make any statements inconsistent with the announcement that will be made to the
public on August 2, 2012. 
 4. Beginning on the Termination Date, Executive shall be eligible to elect COBRA
continuation coverage under the group medical, dental, vision and/or FSA plan generally available to other employees of the Company. If Executive exercises his rights under COBRA, AtriCure will make all required COBRA payments due on
Executive’s behalf during the payroll periods described above in Paragraph 2(c). 
 5. (a) Unless otherwise
specified herein, Executive agrees that he shall honor and abide by the terms and conditions of the Noncompetition, Proprietary Information and Inventions Agreement dated on or about October 22, 2002, including the agreements therein related
including, but not limited to non-competition, proprietary information, inventions agreement, confidentiality agreements, conflict of interest agreements, and business conduct. AtriCure will consider in good faith any reasonable modifications to
Executive’s non-competition covenants, which still protect the legitimate business interests of AtriCure. 
 (b) Without
limiting any contractual, statutory or other obligations of the Executive and except to the extent otherwise expressly given written consent by the Company in its sole discretion, Executive agrees he will not, directly or indirectly, do any of the
following during the six (6) month period immediately following the Date of Termination, anywhere within the United States (or any other country in 

  
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which the Company is doing business): (i) induce any employee of the Company to leave the employ of the Company; (ii) induce any customer, consultant, vendor, advisor, physician,
clinical investigator, university, hospital or other party having a business or professional relationship with the Company to cease or adversely change its relationship with the Company; (iii) counsel or advise or engage in (whether as an
employee, consultant, proprietor, partner, director or otherwise), or have any ownership interest in (except for up to 1% of the outstanding shares of a publicly traded company), or participate in the financing, operation, management or control of,
any other person, firm, corporation, or other entity engaged in or conducting business which is the same as, or competing with, the business being conducted by the Company (including, without limitation, any person, firm, corporation or other entity
that designs, manufactures, develops, distributes, markets, promotes or sells any medical devices that may compete with any of the Company’s devices). Executive acknowledges that compliance with this paragraph is necessary to protect the
national and international business and goodwill of the Company and that breach of any of these provisions will irreparably and continually damage the Company for which money damages may not be adequate. In the event that Executive breaches this
paragraph, the Company will cease making any remaining unpaid severance benefits and require reimbursement of any prior benefits paid to Executive under this Agreement. In addition, the Company shall be entitled to preliminarily and/or permanently
enjoin Executive from violating this paragraph in order to prohibit such harm. Nothing in this Agreement shall be construed to prohibit the Company from also pursuing any other remedy available to it, the parties having agreed that all remedies are
to be cumulative. 
 In addition, Executive also agrees that for a period ending two years from the date of this Agreement,
except as is necessary for the benefit of AtriCure in connection with his ongoing duties as President and Chief Executive Officer of the Company through the Termination Date, he will not, without the prior written consent of the Company, directly or
indirectly: (1) acquire, offer or propose to acquire, or agree to acquire, directly or indirectly, more than six percent of any class or series of any voting securities of the Company or any of its subsidiaries or any direct or indirect rights,
options or interests with respect to more than six percent of any voting securities or substantially all of the assets of the Company or any of its subsidiaries (whether by purchase, business combination, merger, consolidation, share exchange, joint
venture or similar transaction); (2) solicit proxies or consents or become a “participant” in a “solicitation” (as such terms are defined in Regulation 14A under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) of proxies or consents with respect to securities of the Company or initiate any stockholder proposal with respect to the Company; (3) seek to advise, control or influence the management, Board of Directors or
policies of the Company or any of its subsidiaries, or take action for the purpose of convening a stockholders meeting of the Company; (4) make any proposal or any public announcement relating to a tender or exchange offer for securities of the
Company or any of its subsidiaries or relating to any business combination, acquisition, merger, consolidation, share exchange, sale of material assets, liquidation or similar transaction involving the Company, any of its securities or material
assets or any securities or material assets of any of its subsidiaries, or take any action that would or would reasonably be expected to require the Company to make public announcement regarding any of the foregoing; (5) form, join or in any
way participate in a “group” as defined in Section 13(d)(3) of the Exchange Act for the purpose of acquiring, holding, voting or disposing of securities of the Company or any of its subsidiaries or taking any other actions restricted
or prohibited under clauses (1) through (4) of this paragraph; (6) enter into any discussions, negotiations, arrangements or understandings with any third party, with respect to any of the actions restricted or prohibited under
clauses (1) through (5) of this paragraph; or (7) advise, assist or encourage any other person in connection with any action restricted or prohibited under clauses (1) through (5) of this sentence. 

(c) Executive will not, directly or indirectly, divert or attempt to divert or take advantage of or attempt to take advantage of any
actual or potential business opportunities of AtriCure (e.g., joint ventures, other business combinations, investment opportunities, potential investors in AtriCure, and other similar opportunities) which Executive became aware of during his
employment with AtriCure. 
 (d) Executive agrees to refrain from publishing or providing any oral or written statements about
the Company or its subsidiaries or affiliates, or any of such entities’ officers, employees or directors that are disparaging, slanderous, libelous or defamatory, or that disclose private or confidential information

  
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about their business affairs, or that constitute an intrusion into their private lives, or that give rise to unreasonable publicity about their private lives, or that place them in a false light
before the public, or that constitute a misappropriation of their name or likeness. Nothing herein shall preclude Executive from communicating truthfully while acting in his capacity as President and Chief Executive Officer until the
Termination Date or, thereafter, from responding truthfully to any legal process or truthfully testifying in a legal or regulatory proceeding, provided that, to the extent permitted by law, Executive will promptly inform the Company in advance if he
has reason to believe such response or testimony will directly relate to the Company. The Company and its subsidiaries and affiliates shall not publish or provide any oral or written statements about Executive that are disparaging, slanderous,
libelous or defamatory, or that disclose private or confidential information about Executive’s business or personal affairs, or that constitute an intrusion into Executive’s private life, or that give rise to unreasonable publicity about
Executive’s private life, or that place Executive in a false light before the public, or that constitute a misappropriation of Executive’s name or likeness. Nothing herein shall preclude the Company or any of its affiliates,
employees, officers or directors from responding truthfully to any legal process or truthfully testifying in a legal or regulatory proceeding, provided that to the extent permitted by law, the Company will promptly inform Executive in advance if it
has reason to believe such response or testimony will directly relate to Executive, or from complying with applicable disclosure obligations required by law. 
 (e) If Executive violates his obligations under this Agreement, Executive acknowledges that AtriCure has the right to discontinue any further payments provided for hereunder and to cancel this Agreement
with no further obligations to Executive. 
 6. (a) Executive, on behalf of Executive and Executive’s heirs,
executors, administrators, assigns, affiliates and agents, does hereby knowingly and voluntarily release, acquit, and forever discharge the Company, successors, assigns, and past, present, and future directors, officers, employees, trustees, and
shareholders of the Company (the “Released Parties”) from and against any and all charges, complaints, claims, cross-claims, third-party claims, counterclaims, contribution claims, liabilities, obligations, promises, agreements,
controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts, and expenses of any nature whatsoever, known or unknown, suspected or unsuspected, foreseen or unforeseen, matured or unmatured, which, at any time up
to and including the date on which Executive signs this Agreement, exist, have existed, or may arise from any matter whatsoever occurring, including, but not limited to, any claims arising out of or in any way related to Executive’s employment
with the Released Parties and the termination thereof, which Executive, or any of his heirs, executors, administrators, assigns, affiliates, and agents ever had, now has, or at any time hereafter may have, own, or hold against any of the Released
Parties based on any matter (known or unknown) existing on or before the date on which Executive signs this Agreement. Executive acknowledges that in exchange for this release, the Company is providing Executive with total consideration, financial
or otherwise, which exceeds that which Executive might otherwise have been entitled without the release. By executing this Agreement, Executive is waiving, without limitation, all claims against the Released Parties arising under federal, state, and
local labor laws, any employment-related claims under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and any other restriction on the right to terminate employment. Nothing herein shall release any party from
any obligation under this Agreement. Executive acknowledges and agrees that this release and the covenant not to sue set forth in paragraph (c) are essential and material terms of this Agreement and that, without such release and covenant not
to sue, no agreement would have been reached by the parties and no benefits would have been paid. Executive understands and acknowledges the significance and consequences of this release and this Agreement. 

The Company, on behalf of itself and the other Released Parties, and each of them, does hereby knowingly and voluntarily release, acquit,
and forever discharge Executive from and against any and all charges, complaints, claims, cross-claims, third-party claims, counterclaims, contribution claims, liabilities, obligations, promises, agreements, controversies, damages, actions, causes
of action, suits, rights, demands, costs, losses, debts, and expenses of any nature whatsoever, known or unknown, suspected or unsuspected, foreseen or unforeseen, matured or unmatured, which, at any time up to and including the date on which the
Company signs this Agreement, exist, have existed, or may arise from any matter 

  
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whatsoever occurring, including, but not limited to, any claims arising out of or in any way related to Executive’s employment with the Released Parties and the termination thereof, which
the Company or any of the Released Parties ever had, now has, or at any time hereafter may have, own, or hold against Executive based on any matter (known or unknown) existing on or before the date on which the Company signs this Agreement,
including, without limitation, all claims against Executive arising under federal, state, and local labor laws, any employment-related claims under ERISA, and any other restriction on the right to terminate employment. Notwithstanding the foregoing
provisions of this Section 6(a), nothing herein shall release Executive from (i) any act that constitutes a criminal act under any Federal, state or local law committed or perpetuated by Executive during the course of Executive’s
employment with the Company or its affiliates or thereafter prior to the execution date of this Release (including any criminal act of fraud, material misappropriation of funds or embezzlement, or any other criminal action); (ii) any act of
fraud or material theft committed by Executive in connection with his employment with the Company or thereafter prior to the execution date of this Agreement; or (iii) Executive’s continuing obligations under this Agreement. 

(b) EXECUTIVE SPECIFICALLY WAIVES AND RELEASES THE RELEASED PARTIES FROM ALL CLAIMS EXECUTIVE MAY HAVE AS OF THE DATE EXECUTIVE SIGNS
THIS AGREEMENT REGARDING CLAIMS OR RIGHTS ARISING UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, 29 U.S.C. § 621 (“ADEA”). EXECUTIVE FURTHER AGREES: (A) THAT EXECUTIVE’S WAIVER OF RIGHTS UNDER THIS
RELEASE IS KNOWING AND VOLUNTARY AND IN COMPLIANCE WITH THE OLDER WORKER’S BENEFIT PROTECTION ACT OF 1990; (B) THAT EXECUTIVE UNDERSTANDS THE TERMS OF THIS RELEASE; (C) THAT EXECUTIVE HEREBY IS AND HAS BEEN ADVISED IN WRITING BY THE
COMPANY TO CONSULT WITH AN ATTORNEY PRIOR TO EXECUTING THIS RELEASE; (D) THAT THE COMPANY HAS GIVEN EXECUTIVE A PERIOD OF AT LEAST TWENTY-ONE (21) DAYS WITHIN WHICH TO CONSIDER THIS RELEASE; (E) THAT EXECUTIVE REALIZES THAT FOLLOWING
EXECUTIVE’S EXECUTION OF THIS RELEASE, EXECUTIVE HAS SEVEN (7) DAYS IN WHICH TO REVOKE THIS RELEASE BY WRITTEN NOTICE TO THE UNDERSIGNED; AND (F) THAT THIS ENTIRE AGREEMENT SHALL BE VOID AND OF NO FORCE AND EFFECT IF EXECUTIVE CHOOSES
TO SO REVOKE, AND IF EXECUTIVE CHOOSES NOT TO SO REVOKE, THAT THIS AGREEMENT AND RELEASE THEN BECOME EFFECTIVE AND ENFORCEABLE UPON THE EIGHTH DAY AFTER EXECUTIVE SIGNS THIS AGREEMENT. 

(c) To the maximum extent permitted by law, Executive covenants not to sue or to institute or cause to be instituted any action in any
federal, state, or local court against the Released Parties, including, but not limited to, any of the claims released in this Agreement. Notwithstanding the foregoing, nothing herein shall prevent Executive or any of the Released Parties from
instituting any action (i) to enforce the terms of this Agreement; (ii) to file a charge, testify, assist or participate in any manner in an investigation, hearing or proceeding conducted by the Equal Employment Opportunity Commission or
similar state agency; however, Executive may not recover any additional compensation or damages as a result of any such participation; (iii) to enforce any rights Executive may have to recover vested benefits under ERISA; or to assert claims
that might arise after the date Executive signs the Agreement. 
 (d) Executive represents and warrants that: (i) Executive
has not filed or initiated any legal, equitable, administrative, or other proceeding(s) against any of the Released Parties; (ii) no such proceeding(s) have been initiated against any of the Released Parties on Executive’s behalf;
(iii) Executive is the sole owner of the actual or alleged claims, demands, rights, causes of action, and other matters that are released in this Paragraph 6; (iv) the same have not been transferred or assigned or caused to be transferred
or assigned to any other person, firm, corporation or other legal entity; (v) Executive has the full right and power to grant, execute, and deliver the releases, undertakings, and agreements contained in this Agreement; (vi) Executive has
not used any proprietary or confidential information of the Company for his own benefit, or disclosed any such information, directly or indirectly, to any third party, except as such disclosure is permitted under the terms of the relevant
confidentiality agreements between him and the Company; and (vii) Executive confirms as of the Termination Date, he will returned to the Company all documents, materials, recordable media and tangible matter (together with all copies thereof)
required to be returned by him to the Company under such agreements as well as any other computer or communication equipment or other property of the Company in his possession or control. 

  
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 (e) The consideration offered herein is accepted by Executive as being in full accord,
satisfaction, compromise and settlement of any and all claims or potential claims, and Executive expressly agrees that Executive is not entitled to and shall not receive any further payments, benefits (except vested ERISA benefits), or other
compensation or recovery of any kind from the Company or any of the other Released Parties. Executive further agrees that in the event of any further proceedings whatsoever based upon any matter released herein, the Company and each of the other
Released Parties shall have no further monetary or other obligation of any kind to Executive, including without limitation any obligation for any costs, expenses and attorneys’ fees incurred by or on behalf of Executive. 

7. Executive acknowledges by signing this Agreement that Executive has read and understands this document, that Executive has conferred
with or had the opportunity to confer with Executive’s attorney regarding the terms and meaning of this Agreement, that Executive has had sufficient time to consider the terms provided for in this Agreement, that no representations or
inducements have been made to Executive except as set forth in this Agreement, and that Executive has signed the same KNOWINGLY AND VOLUNTARILY. 
 8. It is intended that the provisions of this Agreement shall be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.
The provisions of this Agreement shall be governed by and construed solely in accordance with the internal laws of the state of Ohio. In the event that any paragraph, subparagraph, or provision of this Agreement shall be determined to be partially
contrary to governing law or otherwise partially unenforceable, the paragraph, subparagraph, or provision and this Agreement shall be enforced to the maximum extent permitted by law, and if any paragraph, subparagraph, or provision of this Agreement
shall be determined to be totally contrary to governing law or otherwise totally unenforceable, the paragraph, subparagraph, or provision shall be severed and disregarded and the remainder of this Agreement shall be enforced to the maximum extent
permitted by law. 
 9. Executive agrees that neither this Agreement nor the performance by the parties hereunder constitutes an
admission by any of the Released Parties of any violation of any federal, state, or local law, regulation, common law, breach of any contract, or any other wrongdoing of any type. Executive and Company agree that this Agreement satisfies and
discharges any and all obligations of the parties hereto under Sections 8 and 9 of the Employment Agreement entered into as of February 9, 2007, as amended, between Executive and Company. 

10. The rights and benefits under this Agreement are personal to Executive and such rights and benefits shall not be subject to
assignment, alienation, or transfer, except to the extent such rights and benefits are lawfully available to the estate or beneficiaries of Executive upon death. The Company shall cause any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all or a substantial portion of the Company’s business and/or assets to assume this Agreement expressly in writing (and deliver a copy to Executive) and to expressly agree to perform this
Agreement immediately upon such succession in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. 
 11. Executive agrees that he will assist and cooperate with the Company, in all reasonable respects, in connection with the defense or prosecution of any claim that may be made against or by the Company,
regarding any ongoing or future investigation or dispute or claim of any kind involving the Company, whether civil, administrative or criminal, and as otherwise reasonably requested by the Company. The Company agrees to reimburse Executive for all
reasonable out-of-pocket expenses associated with any services performed under this Section 11, including travel expenses, food, and lodging. Any services or assistance contemplated in this Section 11 shall be at mutually agreed to
and convenient times. The right to reimbursement in this Section 11 shall not be subject to liquidation or exchange for another benefit, the amount of expenses eligible for reimbursement during any taxable year

  
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shall not affect the expenses eligible for reimbursement in any other taxable year, and such reimbursements shall be made within 45 days after incurred, provided that Executive provides proper
documentation to the Company within 30 days after the expenses are incurred. 
 12. Each party hereby consents to and submits to
the jurisdiction of the federal and state courts located in Butler County, Ohio and, except as provided in any existing or future agreement between the parties regarding arbitration, any action or suit under this Agreement shall be brought in the
federal or state court with appropriate jurisdiction over the subject matter established or sitting in such city, and each party hereby agrees not to raise in connection therewith, and hereby waives, any defenses based upon the venue, the
inconvenience of the forum, the lack of personal jurisdiction, the sufficiency of service of process or the like in any such action or suit brought in accordance with this Paragraph. 

13. Except as and to the extent as may be otherwise expressly provided herein, all notices under this Agreement (including, without
limitation, any service of process hereunder) shall be in writing and shall be delivered personally or via prepaid, receipted overnight courier service (such as FedEx), or mailed by registered or certified mail, return receipt requested, postage
prepaid, to the addresses for the parties set forth on the first page of this Agreement or to such other address as either party shall designate to the other party by written notice in like manner, with all notices to the Company to be further
addressed “Attention: Vice President of Human Resources”. All notices shall be deemed given and received upon actual delivery. 
 14. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which, when taken together, shall constitute one and same instrument. This Agreement may be
executed and delivered by exchange of facsimile copies showing the signatures of the parties hereto, and those signatures need not be on the same copy. The facsimile copies showing the signatures of the parties will constitute originally signed
copies of the same agreement requiring no further execution. 
 15. Subject to Paragraph 5(a), this Agreement constitutes the
entire agreement between the Company and Executive with respect to the subject matter hereof. Executive affirms that, in entering into this Agreement, he is not relying upon any other oral or written promise or statement made by anyone at any time
on behalf of the Company. This Agreement may not be changed or altered, except by a writing signed by the Company and Executive. 
  

									
	ATRICURE, INC.	 		 	David J. Drachman
					
	By: 	 	/s/ Robert Ward	 		 	Sign:	 	/s/ David J. Drachman
		 	 Robert Ward
 Vice President,
Human Resources
	 		 	  
 Dated: August 2, 2012

			
	Dated: August 2, 2012	 		 	

  
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 EXHIBIT A 

 

									
	 AWARD
	 	 GRANT DATE
	 	 # OF SHARES
OUTSTANDING
AND UNVESTED
ON
TERMINATION
DATE
	 	 # OF SHARES
TO VEST
THROUGH
MARCH
31,
 2013
	 	 VESTING
DATES

	 Stock Option - NQ
	 	2/17/2010	 	38,959	 	13,750	 	17th day of each month
	 Stock Option - NQ
	 	2/9/2011	 	30,209	 	6,250	 	9th day of each month
	 Stock Option - NQ
	 	2/15/2012	 	40,000	 	10,833	 	10,000 on 2/15/2013,
833 on 3/15/2013
	 Restricted Stock
	 	7/29/2009	 	20,000	 	0	 	
	 Restricted Stock
	 	2/17/2010	 	15,000	 	7,500	 	2/17/2013
	 Restricted Stock
	 	2/9/2011	 	75,000	 	25,000	 	2/9/2013
	 Restricted Stock
	 	2/15/2012	 	36,000	 	9,000	 	2/15/2013

  
 - 8 -Offer Letter

 Exhibit 10.10(vi) 
 June 25, 2012 
 Mr. John D. Hertz 

 
  
 Dear John,

 I am very pleased to offer you the position of Senior Vice President, Chief Financial Officer of Clearwater Paper Corporation. Your new
position will be based in Spokane, Washington. Your anticipated starting date for the position will be upon a mutual acceptable date. 
 The
base salary for this position is $400,000 per year, and paid semi-monthly. The position’s salary grade is 59, with an annual target bonus opportunity (AIP) of 65% of your base salary earnings for each plan (calendar) year, based on the portion
of the year you are in this position. 
 The Compensation Committee of the Board of Directors has approved an award of 20,000 service based
restricted stock units (RSUs). The RSUs will vest in four equal installments on the first four anniversaries of the date of the grant, provided continued employment through the date of vest. Additionally, provided your start date is on or before
June 30, 2012, you will be eligible for a prorated award for the 2012-2014 performance plan under the Company’s 2008 Stock Incentive Plan. The current annual award target value for your position is 100% of your salary range midpoint based
on approval by the Board of Directors. 
 You also will be eligible for relocation under Clearwater Paper’s Relocation Policy. Clearwater
is prepared to assist you if you are unable to sell your home for as much as your original purchase price. As such, we will make an exception to the policy to provide a loss on sale benefit of the loss up to $200,000. 

As an officer of Clearwater Paper, you will be expected to acquire ownership of two times your base salary in shares of Clearwater Paper stock within
five years of your employment date. Shares that count toward the ownership guidelines are: those acquired through independent purchase; shares acquired and held in Clearwater Paper’s 401(k) savings plan; those acquired through any of Clearwater
Paper’s Stock Incentive Plans, including performance shares upon being paid out and restricted stock units upon becoming vested; and shares acquired through awards under the Annual Incentive Plan, including awards deferred in stock units.
Progress towards ownership will be covered annually at a Board of Directors meeting. 

 As a full time salaried employee, you are eligible to participate in Clearwater Paper’s health and
welfare and 401(k) savings plan on the first day following (30) days of employment. Given your situation, we will reimburse you for any Cobra expense you may incur for extending your current healthcare coverage until the commencement of
coverage by Clearwater Paper. Enrollment forms and additional details will be provided to you during your new hire orientation. You will receive (4) weeks of vacation starting in 2012. 
 You will be an employee at will and this offer of employment does not constitute an employment contract; provided, however, that Clearwater Paper’s and your rights and obligations upon a termination
of employment shall be as set forth in applicable provisions of Appendix A and the Severance Program for Executive Employees, as amended from time to time, or any successor program (the “Severance Program”). This offer is contingent
upon successful completion of drug/substance abuse testing, background check and reference verification. 
 I hope you will favorably consider
our offer of employment, as we are truly excited by your becoming a member of our corporate executive management team. Please indicate your acceptance of this offer by returning a signed and dated copy to me. 

John, I realize that a career decision such as this has a major impact on you and your family. If there is anything that we can do either before or after
your start date of employment, please do not hesitate to call me. 
  

	
	Sincerely yours,
	
	/s/ Gordon L. Jones
	
	Gordon L. Jones

  

							
	 /s/ John D. Hertz
	  		  	 6/25/12
	  	
	Accepted	  		  	Date	  	

 Appendix A 
 Termination of Employment; Severance: Termination of your employment for any reason shall constitute your resignation as an officer of Clearwater Paper (the “Company”), its subsidiaries,
and its affiliates. You will be a participant in the Severance Program and will be subject to all the terms and conditions of the Severance Program, which are incorporated into this Appendix A by reference; provided, however, that Section 4(c)
of the Severance Program (and any similar or successor section) and references to Section 4(c) in Section 4(d) of the Severance Program (and any similar or successor section) shall not apply to you, and in their place the following
Sections a, b and c shall apply: 
 (a) In the event that you become entitled to receive or receive any payments, options, awards
or benefits (including, without limitation, the monetary value of any non-cash benefits and the accelerated vesting of stock options) under the Severance Program or under any other plan, agreement or arrangement with the Company, any person whose
actions result in a “Change of Control” (as that term is defined in the Severance Program) or any person affiliated with the Company or such person (collectively, the “Payments”), that may separately or in the aggregate
constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury regulations promulgated thereunder (“280G”) and it is
determined that, but for this Section (a), any of the Payments will be subject to any excise tax pursuant to Section 4999 of the Code or any similar or successor provision (the “Excise Tax”), the Company shall pay to you either
(i) the full amount of the Payments or (ii) an amount equal to the Payments, reduced by the minimum amount necessary to prevent any portion of the Payments from being an “excess parachute payment” (within the meaning of
Section 280G) (the “Capped Payments”), whichever of the foregoing amounts results in the receipt by you, on an after-tax basis, of the greatest amount of Payments notwithstanding that all or some portion of the
Payments may be subject to the Excise Tax. For purposes of determining whether you would receive a greater after-tax benefit from the Capped Payments than from receipt of the full amount of the Payments and for purposes of Section (c) below (if
applicable), you shall be deemed to pay federal, state and local taxes at the highest marginal rate of taxation for the applicable calendar year. 
 (b) All computations and determinations called for by Sections (a) and (b) shall be made and reported in writing to the Company and you by a third-party service provider selected by the Company
(the “Tax Advisor”), and all such computations and determinations shall be conclusive and binding on the Company and you. For purposes of such calculations and determinations, the Tax Advisor shall rely on accurate information
about the Payments and reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and you shall furnish to the Tax Advisor such information and documents as the Tax Advisor may reasonably
request in order to make their required calculations and determinations. The Company shall bear all fees and expenses charged by the Tax Advisor in connection with its services. 

(c) In the event that Section (a) applies and a reduction is required to be applied to the Payments thereunder, the Payments shall be
reduced by the Company in a manner and order of priority that provides you with the largest net after-tax value; provided that payments of equal after-tax present value shall be reduced in the reverse order of payment. Notwithstanding anything to
the contrary herein, any such reduction shall be structured in a manner intended to comply with Section 409A of the Code.

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