Document:

Exhibit 4.2

 

ATWOOD OCEANICS, INC.

2013 LONG-TERM INCENTIVE PLAN

(As Amended and Restated February 15, 2017)

 

1. Objectives. This Atwood Oceanics, Inc. 2013 Long-Term Incentive Plan (the “Plan”) is intended to create incentives to attract and retain persons of training, experience and ability to serve as employees of Atwood Oceanics, Inc., a Texas corporation (the “Company”), and its Subsidiaries and as nonemployee directors of the Company, to encourage the sense of proprietorship of such persons and to motivate and stimulate the active interest of such persons in the development, growth and financial success of the Company and its Subsidiaries.

 

2. Definitions. As used herein, the terms set forth below shall have the following respective meanings:

 

“2007 Plan” means the Atwood Oceanics, Inc. Amended and Restated 2007 Long-Term Incentive Plan.

 

“Award” means an Employee Award or a Director Award.

 

“Award Agreement” means an agreement between the Company and a Participant, or a notice from the Company to the Participant, in such form as is deemed acceptable by the Committee that sets forth the terms, conditions and limitations applicable to an Award.

 

“Board” means the Board of Directors of the Company.

 

“Cash Award” means an Award payable in cash.

 

“Change of Control” means each of the following:

 

(a) The acquisition after the date hereof by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (1) the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (2) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that the following acquisitions shall not constitute a Change of Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, (D) any acquisition previously approved by at least a majority of the members of the Incumbent Board (as such term is hereinafter defined), (E) any acquisition approved by at least a majority of the members of the Incumbent Board within five business days after the Company has notice of such acquisition, or (F) any acquisition by any corporation pursuant to a transaction which complies with clauses (1), (2), and (3) of subsection (c) of this definition; or

 

(b) Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, appointment or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for purposes of this definition, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

 

(c) The consummation of a reorganization, share exchange, merger (a “Business Combination”), in each case, unless, following such Business Combination, (1) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and

 

1

 

Outstanding Company Voting Securities immediately prior to such Business Combination will beneficially own, directly or indirectly, more than 70% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction will own the Company through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (2) no Person (excluding any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) will beneficially own, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination, and (3) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination or were elected, appointed or nominated by the Board; or

 

(d) Approval by the shareholders of the Company of (1) a complete liquidation or dissolution of the Company or (2) the sale or other disposition of all or substantially all of the assets of the Company, other than to a corporation, with respect to which following such sale or other disposition, (A) more than 70% of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such sale or other disposition in substantially the same proportion as their ownership, immediately prior to such sale or other disposition, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (B) less than 20% of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors will be beneficially owned, directly or indirectly, by any Person (excluding any employee benefit plan (or related trust) of the Company or such corporation), except to the extent that such Person owned 20% or more of the Outstanding Company Common Stock or Outstanding Company Voting Securities prior to the sale or disposition, and (C) at least a majority of the members of the board of directors of such corporation were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such sale or other disposition of assets of the Company or were elected, appointed or nominated by the Board.

 

“Code” means the United States Internal Revenue Code of 1986, as amended from time to time.

 

“Committee” means the Compensation and Human Resources Committee of the Board or any other committee as may be designated by the Board.

 

“Common Stock” means the common stock, par value $1.00 per share, of the Company or any security into which such Common Stock may be changed by reason of any transaction or event of the type described in Section 11.

 

“Company” means Atwood Oceanics, Inc., a Texas corporation.

 

“Director”means a member of the Board, excluding any individual who is also an employee of the Company or any Subsidiary.

 

2

 

“Director Award” means any Option (other than an ISO), Performance Award, Cash Award, Stock Award or Stock Appreciation Right, whether granted singly, in combination or in tandem, to a Participant who is a Director pursuant to any applicable terms, conditions and limitations as the Board may establish in order to fulfill the objectives of the Plan.

 

“Employee” means an individual employed by the Company or any Subsidiary.

 

“Employee Award” means any Option, Performance Award, Cash Award, Stock Award or Stock Appreciation Right, whether granted singly, in combination or in tandem, to a Participant who is an Employee pursuant to any applicable terms, conditions and limitations as the Committee may establish in order to fulfill the objectives of the Plan.

 

“Exercise Price” means the price at which the Option Shares may be purchased or SARs may be exercised under the terms of the Award Agreement.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

 

“Fair Market Value” of a share of Common Stock means, as of a particular date, (a) if shares of Common Stock are listed on a national securities exchange, the closing sales price per share of Common Stock on the consolidated transaction reporting system for the principal national securities exchange on which shares of Common Stock are listed on that date or, if there shall have been no such sale so reported on that date, on the last preceding date on which such a sale was so reported; (b) if the Common Stock is not so listed or quoted, the mean between dealer “bid” and “ask” prices on that date or, if there are no quotations available for such date, on the last preceding date on which such quotations shall be available, as reported by an inter-dealer quotation system; or (c) if none of the above is applicable, then such amount as may be determined by the Committee or the Board in such a manner as it deems in good faith to be the fair market value per share of Common Stock.

 

“Grant Date” means the date specified in the Award Agreement on which an Award will become effective.

 

“ISO” means an incentive stock option within the meaning of Code Section 422.

 

“Option” means a right to purchase a particular number of shares of Common Stock at a particular Exercise Price, subject to certain terms and conditions as provided in this Plan and Award Agreement. An Option may be in the form of an ISO or a nonqualified stock option within the meaning of Code Section 83.

 

“Option Shares” means the shares of Common Stock covered by a particular Option.

 

“Participant” means an Employee or a Director to whom an Award has been granted under this Plan.

 

“Performance Award” means an Award, such as a Performance Unit, that is subject to the achievement of one or more Performance Objectives established by the Committee.

 

“Performance Objectives” means the objectives, if any, established by the Committee that are to be achieved with respect to an Award granted under this Plan, which may be described in terms of Company-wide objectives, in terms of objectives that are related to performance of a division, Subsidiary, department, adjacent business unit, geographic market or function within the Company or a Subsidiary in which the Participant receiving the Award is employed, or in individual or other terms, and which shall relate to the period of time determined by the Committee. The Performance Objectives intended to qualify under Code Section 162(m) shall be with respect to one or more of the following: (a) average day rates; (b) cash flow; (c) client satisfaction; (d) contracted utilization; (e) debt to cash flow; (f) debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”); (g) debt to equity ratio; (h) dividend growth; (i) dividend maintenance; (j) earnings; (k) earnings per share; (l) EBITDA; (m) EBITDA to interest; (n) employee engagement; (o) enterprise value; (p) environmental performance; (q) fleet size and growth; (r) fleet valuation; (s) general and administrative

 

3

 

expenses; (t) market capitalization; (u) net income; (v) operating income; (w) operational downtime or efficiency; (x) pre-tax income; (y) profit returns/margins; (z) project execution; (aa) relative stock price performance; (bb) return on assets; (cc) return on equity; (dd) return on invested capital; (ee) revenues; (ff) revenue backlog; (gg) rig contracting; (hh) rig margin; (ii) rig revenues; (jj) safety; (kk) stock price appreciation; and (ll) total stockholder return.

 

The Committee shall determine, in its sole discretion, at the time of grant of an Award, which Performance Objectives to use with respect to an Award, the weighting of such objectives if more than one is used and whether such objective(s) is (are) to be measured against a Company-established budget or target, an index or a peer group of companies. A Performance Objective may include multiple measuring levels, including but not limited to, threshold, target, stretch and maximum levels of performance with the size of the Performance Award based on the level attained of performance. A Performance Objective need not be based on an increase or a positive result and may include, for example, maintaining the status quo or limiting economic losses.

 

“Performance Unit” means a unit equivalent to an amount of cash as determined by the Committee.

 

“Plan” means the Atwood Oceanics, Inc. 2013 Long-Term Incentive Plan, as amended and restated as of February 15, 2017 and as thereafter amended from time to time.

 

“Restricted Stock” means shares of Common Stock that are restricted or subject to forfeiture provisions.

 

“Restricted Stock Unit” means a unit evidencing the right to receive in specified circumstances one share of Common Stock or equivalent value in cash that is restricted or subject to forfeiture provisions.

 

“Restriction Period” means the period of time beginning on the Grant Date of a Stock Award and ending on the date on which the Common Stock subject to that Stock Award is no longer restricted as to its transfer or subject to forfeiture provisions.

 

“Stock Appreciation Rights” or “SARs” means the right to receive an amount of cash or Common Stock equal to the appreciation in value of a specified number of shares of Common Stock over a particular period of time.

 

“Stock Award” means an Award denominated in or payable in shares of Common Stock, which may be Restricted Stock.

 

“Subsidiary” means (a) with respect to any Awards other than ISOs, (i) in the case of a corporation, any corporation of which the Company directly or indirectly owns shares representing 50% or more of the combined voting power of the shares of all classes or series of capital stock of such corporation that have the right to vote generally on matters submitted to a vote of the stockholders of such corporation and (ii) in the case of a partnership or other business entity not organized as a corporation, any such business entity of which the Company directly or indirectly owns 50% or more of the voting, capital or profits interests (whether in the form of partnership interests, membership interests or otherwise) and (b) with respect to Awards of ISOs, any subsidiary within the meaning of Code Section 424(f).

 

3. Plan Administration and Designation of Participants. All Employees of the Company and its Subsidiaries and all Directors of the Company are eligible for Awards under this Plan. The Committee shall select the Participants from time to time by the grant of Employee Awards under this Plan and, subject to the terms and conditions of this Plan, shall determine all terms and conditions of the Employee Awards.

 

This Plan shall be administered by the Committee, which shall have full and exclusive power to interpret this Plan and to adopt such rules, regulations and guidelines for carrying out this Plan as it may deem necessary or appropriate.

 

4

 

The Committee may, in its discretion, in whole or in part of an Employee Award, extend the exercisability, accelerate the vesting or exercisability, eliminate or make less restrictive any restrictions, waive any restriction or other provision of an Employee Award or otherwise amend or modify an Employee Award in any manner that is either (a) not adverse to the Participant to whom such Employee Award was granted or (b) consented to by such Participant. Notwithstanding anything herein to the contrary, without the prior approval of the Company’s stockholders, Options and SARs issued under the Plan will not be repriced, replaced or regranted through cancellation, decrease in the Exercise Price or exchanged for a cash buyout or settlement, except as provided by the adjustment provisions of Section 11.

 

No member of the Committee shall be liable for anything done or omitted to be done by him or her, by any member of the Committee or by any officer of the Company in connection with the performance of any duties under this Plan, except for his or her own willful misconduct or as expressly provided by statute.

 

4. Award Agreement. Each Award granted hereunder shall be described in an Award Agreement, which shall be subject to the terms and conditions of this Plan and may be required to be accepted in such manner as is deemed acceptable by the Committee by the Participant and by the appropriate officer for and on behalf of the Company.

 

5. Shares of Common Stock Reserved for this Plan.

 

(a) Subject to adjustment as provided in Section 11 hereof, a total of 5,050,000 shares of Common Stock plus any shares subject to outstanding awards under the 2007 Plan that are forfeited, terminated, expire unexercised, settled in cash, or exchanged for Awards that do not involve Common Stock, shall be reserved for issuance upon the exercise or payment of Awards granted pursuant to this Plan. Such shares may be shares of original issuance or treasury shares or a combination of the foregoing.

 

(b) The Committee and the appropriate officers of the Company shall from time to time take whatever actions are necessary to execute, acknowledge, file and deliver any documents required to be filed with or delivered to any governmental authority or any stock exchange or transaction reporting system on which shares of Common Stock are listed or quoted in order to make shares of Common Stock available for issuance pursuant to this Plan.

 

(c) Awards under the Plan that are forfeited, terminated, expire unexercised in such a manner that all or some of the shares of Common Stock subject thereto are not issued to a Participant, are settled in cash or are exchanged for Awards that do not involve Common Stock, shall again immediately become available for the granting of Awards under this Plan. Notwithstanding the foregoing, (a) the number of shares of Common Stock available for the granting of Awards shall be reduced by the total number of Options or SARs exercised and (b) shares of Common Stock that are tendered, surrendered or withheld from an Award in payment of an Exercise Price or tax withholding obligations shall not again become available for the granting of Awards under this Plan.

 

(d) The Committee may from time to time adopt and observe such rules and procedures concerning the counting of shares against the Plan maximum or any sublimit as it may deem appropriate, including rules more restrictive than those set forth above to the extent necessary to satisfy the requirements of any national stock exchange on which the Common Stock is listed or any applicable regulatory requirement.

 

6. Awards.

 

(a) Options. An Award may be in the form of an Option. The Exercise Price of an Option granted under this Plan shall not be less than 100% of the Fair Market Value of the Common Stock on the Grant Date.

 

(i) Incentive Stock Options. Options granted to Employees hereunder may be ISOs. An ISO shall consist of a right to purchase a specified number of shares of Common Stock at a price specified by the

 

5

 

Committee in the Award Agreement or otherwise, which shall not be less than the Fair Market Value of the Common Stock on the Grant Date. Any ISO granted shall expire not later than ten (10) years after the Grant Date, with the expiration date to be specified by the Committee in the Award Agreement. Any ISO granted must, in addition to being subject to applicable terms, conditions and limitations established by the Committee, comply with Code Section 422. All other terms, conditions and limitations applicable to ISOs shall be determined by the Committee.

 

(ii) Nonqualified Stock Options. Options granted to Employees or Directors may be nonqualified stock options within the meaning of Code Section 83. A nonqualified stock option shall consist of a right to purchase a specified number of shares of Common Stock at a price specified by the Committee in the Award Agreement or otherwise, which shall not be less than the Fair Market Value of the Common Stock on the Grant Date. The expiration date of the nonqualified stock option shall be specified by the Committee in the Award Agreement. All other terms, conditions and limitations applicable to nonqualified stock options shall be determined by the Committee.

 

(b) Performance Award. An Award may be in the form of a Performance Award, such as a Performance Unit or any other Award hereunder that is subject to the achievement of one or more Performance Objectives. All other terms, conditions and limitations applicable to Performance Awards shall be determined by the Committee.

 

(c) Stock Award (including Restricted Stock and Restricted Stock Units). An Award may consist of Common Stock or may be denominated in units of Common Stock. With respect to a Stock Award that is a Performance Award, the minimum Restriction Period shall be one year from the Grant Date. A Stock Award may provide for accelerated vesting and lapse of restrictions in the event of a Change of Control or a Participant’s termination of service due to death, disability or retirement. All other terms, conditions and limitations applicable to any Stock Award pursuant to this Plan shall be determined by the Committee.

 

(d) Stock Appreciation Right. An Award may be in the form of SARs. All terms, conditions and limitations applicable to any Employee Awards of SARs shall be determined by the Committee; provided, however, that the Exercise Price specified by the Committee in the Award Agreement or otherwise shall not be less than the Fair Market Value of the Common Stock at the Grant Date. An Award of SARs may be granted in tandem with an Option, in which event the Participant has the right to elect to exercise either the Option or the SAR, but not both, and upon exercise of one such tandem Award, the other tandem Award is automatically terminated.

 

(e) Cash Award. An Award may be in the form of a Cash Award. All terms, conditions and limitations applicable to any Cash Award shall be determined by the Committee.

 

(f) Employee Award Limits. The following limitations shall apply to any Employee Award made hereunder:

 

(i) Notwithstanding anything herein to the contrary, no Employee may be granted, during any one calendar year period, Awards covering more than 1,000,000 shares of Common Stock.

 

(ii) Notwithstanding anything herein to the contrary, no Employee may receive, during any one calendar year period, an aggregate payment under Cash Awards or Performance Awards payable in cash in excess of $10,000,000.

 

(g) Director Award Limits. Notwithstanding anything herein to the contrary, no Director may be granted, during any one calendar year period, Awards covering more than 250,000 shares of Common Stock.

 

(h) Minimum Vesting Requirements. All Employee Awards in the form of Options or SARs shall have a minimum vesting period of one year from the Grant Date; provided, however, that Employee Awards in the form of Options and SARs with respect to 5% of the total shares of Common Stock authorized to be issued under the Plan pursuant to Section 5 hereof may have a vesting period of less than one year.

 

6

 

7. Payment of Awards.

 

(a) General. Payment of Awards may be made in the form of cash or by transfer of Common Stock or combinations thereof and may include such restrictions as the Committee shall determine, including, in the case of Common Stock, restrictions on transfer and forfeiture provisions.

 

(b) Deferral. The Committee may, in its discretion, (i) permit selected Participants to elect to defer payments of some or all types of Awards in accordance with procedures established by the Committee or (ii) provide for the deferral of an Award in an Award Agreement or otherwise.

 

(c) Dividends and Interest. Dividends or dividend equivalent rights may be extended to and made part of any Award denominated in Common Stock or units of Common Stock, subject to such terms, conditions and restrictions as the Committee may establish. The Committee may also establish rules and procedures for the crediting of interest on deferred cash payments and dividend equivalents for deferred payment denominated in Common Stock or units of Common Stock.

 

(d) Substitution of Awards. At the discretion of the Committee, a Participant who has been granted an Award may be offered an election to substitute an Award for another Award or Awards of the same or different type, subject to the overall limits expressed in this Plan; provided, however, that except as provided in Section 3, in no event may the Exercise Price of an outstanding Option or SAR be reduced by modification, substitution or any method, nor exchanged for a cash buyout or settlement (except as permitted in Section 11), without the prior approval of the Company’s stockholders.

 

(e) No Fractional Shares. The Committee shall not be required to issue any fractional shares of Common Stock under this Plan. The Committee, in its sole discretion, may provide for the elimination of fractions or for the settlement of fractions in cash.

 

8. Option Exercise. The price at which shares of Common Stock may be purchased under an Option shall be paid in full at the time of exercise in cash or, if permitted by the Committee, by means of tendering Common Stock or surrendering all or part of that or any other Award, including Restricted Stock, valued at Fair Market Value on the date of exercise, or any combination thereof. The Committee shall determine acceptable methods for tendering Common Stock or Awards to exercise a stock option as it deems appropriate. The Committee may provide for procedures to permit the exercise or purchase of Awards by use of the proceeds to be received from the sale of Common Stock issuable pursuant to an Award. Unless otherwise provided in the applicable Award Agreement, in the event shares of Restricted Stock are tendered as consideration for the exercise of a stock option, a number of the shares issued upon the exercise of the stock option, equal to the number of shares of Restricted Stock used as consideration therefor, shall be subject to the same restrictions as the Restricted Stock so submitted as well as any additional restrictions that may be imposed by the Committee.

 

9. Change of Control; Termination of Employment or Service. Upon the occurrence of a Change of Control or upon the termination of employment or service by a Participant, any unexercised, deferred or unpaid Awards shall be treated as provided in the specific Award Agreement evidencing the Award.

 

10. Assignability. Unless otherwise permitted by the Committee, no Award granted under this Plan shall be sold, transferred, pledged, assigned or otherwise alienated or hypothecated by a Participant other than by (a) will or the laws of descent and distribution or (b) a qualified domestic relations order. During the lifetime of a Participant, any Award shall be exercisable only by him, or in the case of a Participant who is mentally incapacitated, the Award shall be exercisable by his guardian or legal representative. The Committee may prescribe and include in applicable Award Agreements other restrictions on transfer. Any attempted assignment or transfer in violation of this Section 10 shall be null and void. Upon the Participant’s death, the personal representative or other person entitled to succeed to the rights of the Participant (the “Successor Participant”) may exercise such rights. A Successor Participant must furnish proof satisfactory to the Company of his or her right to exercise the Award under the Participant’s will or under the applicable laws of descent and distribution.

 

7

 

Subject to approval by the Committee in its sole discretion, other than with respect to ISOs, all or a portion of the Awards granted to a Participant under this Plan may be transferable by the Participant, to the extent and only to the extent specified in such approval, to (a) the spouse, children or grandchildren (including adopted and stepchildren and grandchildren) of the Participant (“Immediate Family Members”), (b) a trust or trusts for the exclusive benefit of such Immediate Family Members and, if applicable, the Participant or (c) a partnership or partnerships in which such Immediate Family Members and, if applicable, the Participant are the only partners. Subsequent transfers of transferred Awards shall be prohibited except by will or the laws of descent and distribution, unless such transfers are made to the original Participant or a person to whom the original Participant could have made a transfer in the manner described herein. No transfer shall be effective unless and until written notice of such transfer is provided to the Committee, in the form and manner prescribed by the Committee. Following transfer, any such Awards shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer, and except as otherwise provided herein, the term “Participant” shall be deemed to refer to the transferee. No transferred Options shall be exercisable unless arrangements satisfactory to the Company have been made to satisfy any tax withholding obligations the Company may have with respect to the Options. The consequences of termination of employment or service shall continue to be applied with respect to the original Participant, following which the Awards shall be exercisable by the transferee only to the extent and for the periods specified in this Plan and the Award Agreement.

 

11. Adjustments.

 

(a) The existence of outstanding Awards shall not affect in any manner the right or power of the Company or its stockholders to make or authorize (i) any or all adjustments, recapitalization, reorganizations or other changes in the ownership of the Company or its business, (ii) any merger or consolidation of the Company, (iii) any issue of bonds, debentures or other obligations, (iv) the dissolution or liquidation of the Company, (v) any sale or transfer of all or any part of its assets or business or (vi) any other Company act or proceeding of any kind, whether or not of a character similar to that of the acts or proceedings enumerated above.

 

(b) In the event of any Common Stock distribution or split, recapitalization, extraordinary distribution, merger, consolidation, combination or exchange of shares of Common Stock or similar change or upon the occurrence of any other event that the Committee, in its sole discretion, deems appropriate, (i) the number of shares of Common Stock reserved under this Plan and covered by outstanding Awards, (ii) the Exercise Price in respect of such Awards, (iii) the appropriate value and price determinations for such Awards, (iv) the per person limitation on Awards in Section 6(f) hereof and (v) the kind of shares covered thereby (including shares of another issuer) shall be adjusted as appropriate.

 

(c) In the event of a corporate merger, consolidation, acquisition of property or stock, separation, reorganization or liquidation, the Committee shall be authorized (i) to issue or assume Awards, regardless of whether in a transaction to which Section 424(a) of the Code applies, by means of substitution of new Awards, as appropriate, for previously issued Awards or to assume previously issued Awards as part of such adjustment, (ii) to make provision, prior to the transaction, for the acceleration of the vesting and exercisability of, or lapse of restrictions with respect to, Awards and the termination of Options that remain unexercised at the time of such transaction or (iii) to provide for the acceleration of the vesting and exercisability of any Awards and the cancellation thereof and to deliver to the Participants cash in an amount that the Board shall determine in its sole discretion is equal to the fair market value of such Awards on the date of such event, which in the case of Options or SARs shall be the excess of the Fair Market Value of Common Stock on such date over the Exercise Price of such Award.

 

(d) The Committee, in its sole discretion and without the consent of the Participant, may amend (i) any stock-based Award to reflect a change in accounting rules required by the Financial Accounting Standards Board and (ii) any Award that is not intended to meet the requirements of Code Section 162(m) to reflect a significant event that the Committee, in its sole discretion, believes to be appropriate to reflect the original intent in the grant of the Award.

 

8

 

12. Tax Withholding. The Company shall have the right to deduct applicable taxes from any Award payment and withhold, at the time of delivery or vesting of cash or shares of Common Stock under this Plan, an appropriate amount of cash or number of shares of Common Stock or a combination thereof for payment of taxes required by law or to take such other action as may be necessary in the opinion of the Company to satisfy all obligations for withholding of such taxes. The Committee may also permit withholding to be satisfied by the transfer to the Company of shares of Common Stock theretofore owned by the holder of the Award with respect to which withholding is required.

 

13. Amendments or Termination. The Board may amend, alter or discontinue this Plan, except that (a) no amendment or alteration that would impair the rights of any Participant under any Award that he has been granted shall be made without his consent and (b) no amendment or alteration shall be effective prior to approval by the Company’s stockholders to the extent such approval is required by applicable legal requirements or the requirements of the securities exchange on which the Company’s Common Stock is listed.

 

14. Restrictions. No shares of Common Stock or other form of payment shall be issued with respect to any Award unless the Company shall be satisfied based on the advice of its counsel that such issuance will be in compliance with applicable federal and state securities laws and the requirements of any securities exchange or transaction reporting system upon which the Common Stock is then listed.

 

15. Unfunded Plan. Insofar as it provides for Awards of cash, Common Stock or rights thereto, this Plan shall be unfunded. Although bookkeeping accounts may be established with respect to Participants who are entitled to cash, Common Stock or rights thereto under this Plan, any such accounts shall be used merely as a bookkeeping convenience. The Company shall not be required to segregate any assets that may at any time be represented by cash, Common Stock or rights thereto, nor shall this Plan be construed as providing for such segregation, nor shall the Company, the Board or the Committee be deemed to be a trustee of any cash, Common Stock or rights thereto to be granted under this Plan. Any liability or obligation of the Company to any Participant with respect to a grant of cash, Common Stock or rights thereto under this Plan shall be based solely upon any contractual obligations that may be created by this Plan and any Award Agreement, and no such liability or obligation of the Company shall be deemed to be secured by any pledge or other encumbrance on any property of the Company. None of the Company, the Board or the Committee shall be required to give any security or bond for the performance of any obligation that may be created by this Plan.

 

16. Parachute Payment Limitation. Notwithstanding any contrary provision of the Plan, the Committee may provide in the Award Agreement or in any other agreement with the Participant for a limitation on the acceleration of vesting and exercisability of unmatured Awards to the extent necessary to avoid or mitigate the impact of the golden parachute excise tax under Section 4999 of the Code on the Participant. In the event the Award Agreement or other agreement with the Participant does not contain any contrary provision regarding the method of avoiding or mitigating the impact of the golden parachute excise tax under Section 4999 of the Code on the Participant, then notwithstanding any contrary provision of this Plan, the aggregate present value of all parachute payments payable to or for the benefit of a Participant, whether payable pursuant to this Plan or otherwise, shall be limited to three times the Participant’s base amount less one dollar. The order of such limitation, to the extent necessary, shall be: (a) severance payments; (b) cash payments outside of the Plan; and (c) unvested Performance Awards, in order that this limitation not be exceeded. For purposes of this Section 16, the terms “parachute payment,” “base amount” and “present value” shall have the meanings assigned thereto under Section 280G of the Code. It is the intention of this Section 16 to avoid excise taxes on the Participant under Section 4999 of the Code or the disallowance of a deduction to the Company pursuant to Section 280G of the Code.

 

17. Code Section 409A Compliance. The Committee intends that any Awards under the Plan be exempt from or satisfy the requirements of Section 409A of the Code and related regulations and Treasury pronouncements (“Section 409A”) to avoid the imposition of excise taxes thereunder. If any provision of the Plan or an Award Agreement under the Plan would result in the imposition of an excise tax under Section 409A, that

 

9

 

provision will be reformed to avoid imposition of the excise tax and no action taken to comply with Section 409A shall be deemed to impair the rights of any Participant under the Plan or an Award Agreement under the Plan.

 

18. Indemnification. The Company shall indemnify and hold harmless any member of the Board or the Committee and other individuals, including Employees and Directors, performing services on behalf of the Committee, against any liability, cost or expense arising as a result of any claim asserted by any person or entity under the laws of any state or of the United States with respect to any action or failure to act of such individuals taken in connection with this Plan, except claims or liabilities arising on account of the willful misconduct or bad faith of such Board member, Committee member or individual.

 

19. Right to Employment or Service. The granting of any Award shall not impose upon the Company any obligation to maintain any Participant as an Employee or a Director and shall not diminish the power of the Company to terminate any Participant’s employment or service at any time.

 

20. Governing Law. This Plan and all determinations made and actions taken pursuant hereto, to the extent not otherwise governed by mandatory provisions of the Code or the securities laws of the United States, shall be governed by and construed in accordance with the laws of the State of Texas.

 

21. Effective Date of Plan. This Plan was originally approved by the Board and the stockholders of the Company as of February 14, 2013. The Plan as amended and restated was approved by the Board on November 17, 2016 and by the Company’s stockholders on February 15, 2017. This Plan shall continue in effect until February 14, 2027, unless terminated earlier pursuant to Section 13.

 

	
 
    	
Attested to by the   Secretary of Atwood Oceanics,
    
	
 
    	
Inc., as adopted by the   Board of Directors as of
    
	
 
    	
November 17, 2016.
    
	
 
    	
 
    

 

10Exhibit 10.1

 

SEVERANCE PROTECTION AND

RESTRICTIVE COVENANTS AGREEMENT

 

THIS SEVERANCE PROTECTION
AND RESTRICTIVE COVENANTS AGREEMENT (this “Agreement”) is made and entered as of the 3rd day
of October, 2017, by and among AMERIS BANCORP, a Georgia corporation (the “Bancorp”), AMERIS BANK,
a Georgia state-chartered bank and wholly owned subsidiary of the Bancorp (the “Bank”; the Bancorp and the Bank
are collectively referred to herein as “Employer”), and William
D. McKendry, an individual resident of the State of Florida (“Employee”).

 

WHEREAS, Employee
is an employee of the Bancorp and/or the Bank;

 

WHEREAS, the
expertise and experience of Employee in the financial institutions industry are valuable to Employer;

 

WHEREAS, it
is in the best interests of Employer to maintain an experienced and sound executive management team to manage Employer, further
Employer’s overall strategies and protect and enhance shareholder value;

 

WHEREAS, in
addition, the Board of Directors of the Bancorp (the “Bancorp Board”) has determined that it is essential and
in the best interest of Employer to retain the services of Employee in the event of a threat or occurrence of a Change of Control
(as hereinafter defined) and to ensure Employee’s continued dedication and efforts in such event without undue concern for
Employee’s personal financial and employment security;

 

WHEREAS, in
order to induce Employee to remain in the employ of Employer, Employer desires to enter into this Agreement with Employee to provide
Employee with certain benefits in the event Employee’s employment is terminated, including termination as a result of, or
in connection with, a Change of Control; and

 

WHEREAS, in
consideration for the benefits provided to Employee hereunder and as an inducement to Employer providing such benefits, Employee
agrees that it is reasonable and fair to enter into certain restrictive covenants as hereinafter set forth;

 

NOW, THEREFORE,
in consideration of the foregoing and of the mutual covenants and agreements set forth herein, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                 
Effective Date. The effective time and date of this Agreement shall be deemed to be 12:00:01 a.m. on the date of
its making first set forth above (the “Effective Date”).

 

2.                 
Term of Agreement. This Agreement shall commence as of the Effective Date and shall end on the second (2nd) anniversary
thereof (such period hereinafter referred to as the “Term”); provided, however, that, if a Change
of Control shall occur during such period, then the Term shall be extended automatically as and to the extent necessary so that
it does not expire prior to the first (1st) anniversary of such Change of Control.

 

     

     

    

 

3.                 
Definitions. As used in this Agreement, the following capitalized terms shall have the meanings set forth below:

 

(a)              
“Cause” shall mean:

 

(i)                
the willful and continued failure of Employee to perform Employee’s duties with Employer, other than any such failure
resulting from Disability, or to follow the directives of the Bancorp Board or a more senior executive of Employer, following written
notice from the Chief Executive Officer of Employer specifying such failure;

 

(ii)             
Employee’s willful misconduct or gross negligence (including, but not limited to, a material willful violation of
Employer’s written corporate governance and ethics guidelines and codes of conduct) in connection with Employer’s business
or relating to Employee’s duties hereunder;

 

(iii)           
Employee’s habitual substance abuse;

 

(iv)            
Employee’s being convicted of, or pleading guilty or nolo contendere to, a felony or a crime involving moral turpitude;

 

(v)              
Employee’s willful theft, embezzlement or act of comparable dishonesty against Employer;

 

(vi)            
a willful act by Employee which constitutes a material breach of Employee’s fiduciary duty to Employer;

 

(vii)         
a material breach by Employee of this Agreement, which breach is not cured (if curable) by Employee within 30 days following
Employee’s receipt of written notice thereof; or

 

(viii)       
conduct by Employee that results in the permanent removal of Employee from Employee’s position as an officer or employee
of the Bancorp or the Bank pursuant to a written order by any banking regulatory agency with authority or jurisdiction over the
Bancorp or the Bank, as the case may be.

 

For purposes of this Section 3(a), no act
or failure to act on the part of Employee shall be considered “willful” unless it is done, or omitted to be done, by
Employee in bad faith or without reasonable belief that Employee’s action or omission was in the best interests of Employer.

 

(b)              
“Change of Control” shall mean the occurrence of any of the following events:

 

(i)                
any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended) (for purposes of this Section 3(b), a “Person”) becomes the beneficial
owner (within the meaning of Rule 13d-3 promulgated under such Act) of 30% or more of either (A) the then-outstanding shares of
common stock of the Bancorp (the “Outstanding Bancorp Common Stock”) or (B) the combined voting power of the
then-outstanding voting securities of the Bancorp entitled to vote generally in the election of directors (the “Outstanding
Bancorp Voting Securities”); provided, however, that, for purposes of this definition, the following acquisitions
shall not constitute a Change of Control: (w) any acquisition directly from the Bancorp; (x) any acquisition by the Bancorp; (y)
any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Bancorp; or (z) any acquisition
pursuant to a transaction that complies with clauses (iii)(A), (iii)(B) and (iii)(C) below; 

 

    	 	2	 

     

    

 

(ii)             
individuals who, as of the Effective Date, constitute the Bancorp Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Bancorp Board;
provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination
for election by the Bancorp’s shareholders, was approved by a vote of at least a majority of the directors then comprising
the Incumbent Board shall be considered as though such individual was a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest
with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on
behalf of a Person other than the Bancorp Board; 

 

(iii)           
consummation of a reorganization, merger, statutory share exchange or consolidation or similar
transaction involving the Bancorp or any of its subsidiaries, including, without limitation, the Bank, a sale or other disposition
of all or substantially all of the assets of the Bancorp, or the acquisition of assets or stock of another entity by the Bancorp
or any of its subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination,
(A) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Bancorp Common
Stock and the Outstanding Bancorp Voting Securities immediately prior to such Business Combination beneficially own, directly or
indirectly, greater than 50% of the then-outstanding shares of common stock (or, for a non-corporate entity, equivalent securities)
and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors
(or, for a non-corporate entity, equivalent governing body), as the case may be, of the entity resulting from such Business Combination
(including, without limitation, an entity that, as a result of such transaction, owns the Bancorp or all or substantially all of
the Bancorp’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their
ownership immediately prior to such Business Combination of the Outstanding Bancorp Common Stock and the Outstanding Bancorp Voting
Securities, as the case may be, (B) no Person (excluding any entity resulting from such Business Combination or any employee benefit
plan (or related trust) of the Bancorp or such entity resulting from such Business Combination) beneficially owns, directly or
indirectly, 30% or more of, respectively, the then-outstanding shares of common stock of the corporation (or, for a non-corporate
entity, equivalent securities) resulting from such Business Combination or the combined voting power of the then-outstanding voting
securities of such entity, except to the extent that such ownership existed prior to the Business Combination, and (C) at least
a majority of the members of the board of directors (or, for a non-corporate entity, equivalent governing body) of the entity resulting
from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement or of
the action of the Bancorp Board providing for such Business Combination; or 

 

    	 	3	 

     

    

  

(iv)            
approval by the shareholders of the Bancorp of a complete liquidation or dissolution of the
Bancorp. 

 

Notwithstanding
the foregoing, (x) a Change of Control shall not be deemed to occur solely because any Person acquires beneficial ownership of
more than 30% of the Outstanding Bancorp Common Stock or the Outstanding Bancorp Voting Securities as a result of the acquisition
of Outstanding Bancorp Common Stock or Outstanding Bancorp Voting Securities by the Bancorp which reduces the number thereof outstanding;
provided, however, that if after such acquisition by the Bancorp such Person becomes the beneficial owner of additional
Outstanding Bancorp Common Stock or Outstanding Bancorp Voting Securities, as the case may be, that increases the percentage thereof
beneficially owned by such Person, a Change of Control shall then occur; and (y) a Change of Control shall not occur unless
such transaction constitutes a change in the ownership of the Bancorp, a change in effective
control of the Bancorp or a change in the ownership of a substantial portion of the Bancorp’s
assets under Section 409A.

 

(c)              
“Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(d)              
“Disability” shall mean the inability of Employee to perform Employee’s duties with Employer on
a full-time basis for 180 days in any one-year period as a result of incapacity due to mental or physical illness or injury.

 

(e)              
“Good Reason” shall mean: (i) a material diminution in Employee’s authority, duties or responsibilities;
(ii) a material change in the geographic location at which Employee must regularly perform the services to be performed by Employee
pursuant to this Agreement (other than a change in such geographic location to an office or other location closer to Employee’s
home residence); and (iii) any other action or inaction that constitutes a material breach by Employer of this Agreement; provided,
however, that Employee must provide notice to Employer of the condition Employee contends is Good Reason within 90 days
after the initial existence of the condition, and Employer must have a period of 30 days to remedy the condition. If the condition
is not remedied within such 30-day period, then Employee must provide a Notice of Termination within 30 days after the end of Employer’s
remedy period.

 

(f)               
“Notice of Termination” shall mean a written notice that (i) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of Employee’s employment under the
provision so indicated and (ii) if the Termination Date is other than the date of receipt of such notice, specifies the Termination
Date (which date shall be not more than 30 days after the giving of such notice, except as otherwise provided in Section 3(i)(v)
hereof). The failure to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Disability,
Cause or Good Reason shall not waive any right of Employee or Employer hereunder or preclude Employee or Employer from asserting
such fact or circumstance in enforcing Employee’s or Employer’s rights hereunder.

 

(g)              
“Section 409A” shall mean, collectively, Section 409A of the Code and the guidance and regulations issued
thereunder.

 

    	 	4	 

     

    

 

(h)              
“terminate” (and variations and derivatives thereof) shall mean, when used in connection with a cessation
of employment, that Employee has incurred a separation from service as defined in Section 409A.

 

(i)                
“Termination Date” shall mean (i) if Employee’s employment is terminated by Employer for Cause
or without Cause, the date of Employee’s receipt of the Notice of Termination or a later date specified therein, as the case
may be, (ii) if Employee’s employment is terminated by Employee for Good Reason, the date of Employer’s receipt of
the Notice of Termination, (iii) if Employee’s employment is terminated by Employee as a Voluntary Termination, the date
of Employer’s receipt of the Notice of Termination or a later date specified therein, as the case may be, (iv) if Employee’s
employment is terminated by reason of death, the Termination Date shall be the date of death of Employee, and (v) if Employee’s
employment is terminated by reason of Disability, the Termination Date shall be the 45th day after the date of Employee’s
receipt of the Notice of Termination, except that, in such case, such Notice of Termination will continue to be effective only
if Employee shall not have returned to full-time performance of Employee’s duties within the 30 days after its receipt.

 

(j)                
“Termination Without Cause” shall mean any termination of Employee’s employment by Employer other
than for Cause.

 

(k)              
“Voluntary Termination” shall mean any voluntary termination of Employee’s employment by Employee
other than for Good Reason.

 

4.                 
Obligations of Employer Upon Termination (Other Than in Connection With a Change of Control). The provisions of this
Section 4 apply only to terminations that are not in connection with a Change of Control, and any Change of Control Termination
(as defined below) shall instead by governed by Section 5 hereof.

 

(a)              
Cause; Voluntary Termination. If, during the Term, Employer shall terminate Employee’s employment for Cause
or Employee shall terminate Employee’s employment by a Voluntary Termination, then Employee shall be entitled to receive
the following (collectively, the “Accrued Amounts”):

 

(i)                
any accrued but unpaid salary and accrued but unused vacation, sick or other leave pay, which shall be paid on the pay date
immediately following the Termination Date in accordance with Employer’s customary payroll procedures;

 

(ii)             
any earned but unpaid cash bonus with respect to any completed fiscal year immediately preceding the Termination Date, which
shall be paid on the otherwise applicable payment date; provided, however, that if Employee’s employment is
terminated by Employer for Cause, then any such accrued but unpaid cash bonus shall be forfeited;

 

(iii)           
reimbursement for unreimbursed business expenses properly incurred by Employee, which shall be subject to and paid in accordance
with Employer’s expense reimbursement policies, practices and procedures; and

 

    	 	5	 

     

    

 

(iv)            
such employee benefits, if any, as to which Employee may be entitled under any employee benefit plans, practices, policies
or programs of Employer as of the Termination Date.

 

(b)              
Termination Without Cause or for Good Reason. If, during the Term, Employer shall terminate Employee’s employment
without Cause or Employee shall terminate Employee’s employment for Good Reason (in each case, other than pursuant to a Change
of Control Termination), then Employee shall be entitled to receive the Accrued Amounts and, subject to Employee’s (x) compliance
with the covenants contained in Section 8 hereof and (y) execution of a release of claims in favor of Employer, its subsidiaries
and affiliates and their respective officers and directors in a form provided by Employer (the “Release”)
and such Release becoming effective within 45 days following the Termination Date (such 45-day period, for purposes of this Section
4(b), the “Release Execution Period”), Employee shall be entitled to receive the following:

 

(i)                
equal installment payments payable in accordance with Employer’s normal payroll procedures, which are in the aggregate
equal to one-and-one-half (1 1/2) times the sum of (A) Employee’s salary at the rate in effect on the Termination Date and
(B) Employee’s target cash bonus opportunity for the year in which the Termination Date occurs, and which installments shall
begin within 30 days after the Termination Date; provided, however, that if the Release Execution Period begins in
one taxable year and ends in another taxable year, then payments shall not commence until the beginning of the second taxable year;

 

(ii)             
a lump sum amount equal to the product of (A) the cash bonus, if any, that Employee would have earned for the fiscal year
in which the Termination Date occurs based on the achievement of applicable performance goals for such year and (B) a fraction,
the numerator of which is the number of days Employee was employed by Employer during the year of termination and the denominator
of which is the number of days in such year (the “Pro-Rata Bonus”), which amount shall be paid in cash
on the date that annual bonuses are paid to senior executives of Employer generally, but in no event later than two-and-one-half
(2 1/2) months following the end of the fiscal year in which the Termination Date occurs; and

 

(iii)           
if Employee timely and properly elects continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of
1985 (“COBRA”), then Employer shall reimburse Employee for the monthly COBRA premium paid by Employee
for Employee and Employee’s dependents until the earliest of: (A) the 18-month anniversary of the Termination Date; (B) the
date Employee is no longer eligible to receive COBRA continuation coverage; and (C) the date on which Employee becomes eligible
to receive substantially similar coverage from another employer. Such reimbursement shall be paid to Employee on the 15th day of
the month immediately following the month in which Employee timely remits the premium payment.

 

(c)              
Death or Disability. If Employee’s employment is terminated during the Term on account of Employee’s
death or Disability, then Employee (or Employee’s estate or beneficiaries, as the case may be) shall be entitled to receive
the following: (i) the Accrued Amounts; and (ii) a lump sum amount equal to the Pro-Rata Bonus, if any, that Employee would have
earned for the fiscal year in which the Termination Date occurs based on the achievement of applicable performance goals for such
year, which amount shall be paid in cash on the date that annual bonuses are paid to senior executives of Employer generally, but
in no event later than two-and-one-half (2 1/2) months following the end of the fiscal year in which the Termination Date occurs.
Notwithstanding any other provision contained herein, all payments made in connection with Employee’s Disability shall be
provided in a manner that is consistent with federal and state law.

 

    	 	6	 

     

    

 

5.                 
Termination In Connection With a Change of Control.

 

(a)              
Change of Control Termination. In the event that at the time of or prior to the first (1st) anniversary of a Change
of Control, and during the Term, Employer terminates Employee’s employment without Cause, or Employee terminates Employee’s
employment for Good Reason (each a “Change of Control Termination”), Employee shall be entitled to receive the
payments and benefits specified in this Section 5.

 

(b)              
Change of Control Payments and Benefits. Upon a Change of Control Termination, Employee shall be entitled to receive
the Accrued Amounts and, subject to Employee’s (x) compliance with the covenants contained in Section 8 hereof and (y) Employee’s
execution of a Release and such Release becoming effective within 45 days following the Termination Date (such 45-day period, for
purposes of this Section 5(b), the “Release Execution Period”), Employee shall be entitled to receive
the following payments or benefits:

 

(i)                
a lump sum amount equal to two times the sum of (A) Employee’s salary at the rate in effect on the Termination Date
and (B) Employee’s target cash bonus opportunity for the year in which the Termination Date occurs, which amount shall be
paid in cash on or before the 60th day after the Termination Date; provided, however, that if the Release Execution
Period begins in one taxable year and ends in another taxable year, then payment shall not be made until the beginning of the second
taxable year;

 

(ii)             
a lump sum amount equal to the Pro-Rata Bonus, if any, that Employee would have earned for the fiscal year in which the
Termination Date occurs based on the achievement of applicable performance goals for such year, which amount shall be paid in cash
on or before the 60th day after the Termination Date; provided, however, that if the Release Execution Period begins
in one taxable year and ends in another taxable year, then payment shall not be made until the beginning of the second taxable
year; and

 

(iii)           
if Employee timely and properly elects continuation coverage under COBRA, then Employer shall reimburse Employee
for the monthly COBRA premium paid by Employee for Employee and Employee’s dependents until the earliest of: (A) the 18-month
anniversary of the Termination Date; (B) the date Employee is no longer eligible to receive COBRA continuation coverage; and (C)
the date on which Employee becomes eligible to receive substantially similar coverage from another employer. Such reimbursement
shall be paid to Employee on the 15th day of the month immediately following the month in which Employee timely remits the premium
payment.

 

    	 	7	 

     

    

 

6.                 
Non-Exclusivity of Rights. Nothing in this Agreement shall prevent or limit Employee’s continuing or future
participation in any plan, program, policy or practice provided by Employer and for which Employee may qualify, nor shall anything
herein limit or otherwise affect such rights as Employee may have under any contract or agreement with Employer, except as expressly
provided otherwise in this Agreement. Amounts which are vested benefits or which Employee is otherwise entitled to receive under
any plan, policy, practice or program of or any contract or agreement with Employer at or subsequent to the Termination Date shall
be payable in accordance with such plan, policy, practice or program or such contract or agreement, except as expressly modified
by this Agreement.

 

7.                 
Code Section 280G.

 

(a)              
Certain Reductions in Agreement Payments. Anything in this Agreement to the contrary notwithstanding, in the event
a nationally recognized independent accounting firm designated by Employer and reasonably acceptable to Employee (the “Accounting
Firm”) shall determine that receipt of all payments or distributions by Employer and its affiliates in the nature of
compensation to or for Employee’s benefit, whether paid or payable pursuant to this Agreement or otherwise (a “Payment”),
would subject Employee to the excise tax under Section 4999 of the Code, the Accounting Firm shall determine as required below
in this Section 7(a) whether to reduce any of the Payments paid or payable pursuant to this Agreement (the “Agreement
Payments”) to the Reduced Amount (as defined below). The Agreement Payments shall be reduced to the Reduced Amount only
if the Accounting Firm determines that Employee would have a greater Net After-Tax Receipt (as defined below) of aggregate Payments
if Employee’s Agreement Payments were so reduced. If the Accounting Firm determines that Employee would not have a greater
Net After-Tax Receipt of aggregate Payments if Employee’s Agreement Payments were so reduced, then Employee shall receive
all Agreement Payments to which Employee is entitled.

 

(b)              
Accounting Firm Determinations. If the Accounting Firm determines that aggregate Agreement Payments should be reduced
to the Reduced Amount, then Employer shall promptly give Employee notice to that effect and a copy of the detailed calculation
thereof. All determinations made by the Accounting Firm under this Section 7 shall be binding upon Employer and Employee and shall
be made as soon as reasonably practicable and in no event later than 20 days following the Termination Date. For purposes of reducing
the Agreement Payments to the Reduced Amount, only amounts payable under this Agreement (and no other Payments) shall be reduced.
The reduction of the amounts payable hereunder, if applicable, shall be made by reducing the payments and benefits under the following
sections in the following order: first from Section 5(b)(iii), then from Section 5(b)(ii) and lastly from Section 5(b)(i). All
fees and expenses of the Accounting Firm shall be borne solely by Employer.

 

(c)              
Overpayments; Underpayments. As a result of the uncertainty in the application of Section 4999 of the Code at the
time of the initial determination by the Accounting Firm hereunder, it is possible that amounts will have been paid or distributed
by Employer to or for the benefit of Employee pursuant to this Agreement which should not have been so paid or distributed (an
“Overpayment”) or that additional amounts which will have not been paid or distributed by Employer to or for
the benefit of Employee pursuant to this Agreement which should have been so paid or distributed (an “Underpayment”),
in each case consistent with the calculation of the Reduced Amount hereunder. In the event that the Accounting Firm, based upon
the assertion of a deficiency by the Internal Revenue Service against either Employer or Employee which the Accounting Firm believes
has a high probability of success determines that an Overpayment has been made, Employee shall pay any such Overpayment to Employer
together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code; provided, however,
that no amount shall be payable by Employee to Employer if and to the extent such payment would not either reduce the amount on
which Employee is subject to tax under Section 1 and Section 4999 of the Code or generate a refund of such taxes. In the event
that the Accounting Firm, based upon controlling precedent or other substantial authority, determines that an Underpayment has
occurred, any such Underpayment shall be paid promptly (and in no event later than 60 days following the date on which the Underpayment
is determined) by Employer to or for the benefit of Employee together with interest at the applicable federal rate provided for
in Section 7872(f)(2) of the Code.

 

    	 	8	 

     

    

 

(d)              
Definitions. The following terms shall have the following meanings for purposes of this Section 7:

 

(i)                
“Reduced Amount” shall mean the greatest amount of Agreement Payments that can be paid that would not
result in the imposition of the excise tax under Section 4999 of the Code if the Accounting Firm determines to reduce Agreement
Payments pursuant to Section 7(a).

 

(ii)             
“Net After-Tax Receipt” shall mean the present value (as determined in accordance with Sections 280G(b)(2)(A)(ii)
and 280G(d)(4) of the Code) of a Payment net of all taxes imposed on Employee with respect thereto under Sections 1 and 4999 of
the Code and under applicable state and local laws, determined by applying the highest marginal rate under Section 1 of the Code
and under state and local laws which applied to Employee’s taxable income for the immediately preceding taxable year, or
such other rate(s) as the Accounting Firm determined to be likely to apply to Employee in the relevant taxable year(s).

 

8.                 
Restrictive Covenants.

 

(a)              
Employee Acknowledgements. Employee acknowledges that (i) Employer has separately bargained and paid additional consideration
for the restrictive covenants in this Section 8 and (ii) Employer will provide certain benefits to Employee hereunder in reliance
on such covenants in view of the unique and essential nature of the services Employee will perform on behalf of Employer and the
irreparable injury that would befall Employer should Employee breach such covenants. Employee further acknowledges that Employee’s
services are of a special, unique and extraordinary character and that Employee’s position with Employer will place Employee
in a position of confidence and trust with customers and employees of Employer and its subsidiaries and affiliates and with Employer’s
other constituencies and will allow Employee access to Trade Secrets and Confidential Information (each as defined below) concerning
Employer and its subsidiaries and affiliates. Employee further acknowledges that the types and periods of restrictions imposed
by the covenants in this Section 8 are fair and reasonable and that such restrictions will not prevent Employee from earning a
livelihood.

 

(b)              
Covenants. Having acknowledged the foregoing, Employee covenants and agrees with Employer as follows:

 

    	 	9	 

     

    

 

(i)                
While Employee is employed by Employer and continuing thereafter, Employee shall not disclose or use any Confidential Information
or Trade Secret for so long as such information remains Confidential Information or a Trade Secret, as applicable, for any purpose
other than as may be necessary and appropriate in the ordinary course of performing Employee’s duties to Employer.

 

(ii)             
While Employee is employed by Employer, and for a period of 18 months after Employee’s termination or resignation
during the Term, Employee shall not (except on behalf of or with the prior written consent of Employer), on Employee’s own
behalf or in the service or on behalf of others, solicit or attempt to solicit any customer of Employer or its subsidiaries or
affiliates, including, without limitation, actively sought prospective customers, with whom Employee had Material Contact (as defined
below) during Employee’s employment, for the purpose of providing products or services that are Competitive (as defined below)
with those offered or provided by Employer or its subsidiaries or affiliates or, in the event of Employee’s termination,
Competitive with those offered or provided by Employer or its subsidiaries or affiliates within the two years immediately preceding
the termination of Employee’s employment.

 

(iii)           
While Employee is employed by Employer, and for a period of 18 months after Employee’s termination or resignation
during the Term, Employee shall not (except on behalf of or with the prior written consent of Employer), either directly or indirectly,
on Employee’s own behalf or in the service or on behalf of others, perform duties and responsibilities that are the same
as or substantially similar to those Employee performs for Employer or, in the event of Employee’s termination, performed
for Employer within two years prior to the termination of Employee’s employment, for any business which is the same as or
essentially the same as the business conducted by Employer and its subsidiaries and affiliates, within the Restricted Territory
(as defined below).

 

(iv)            
While Employee is employed by Employer, and for a period of 18 months after Employee’s termination or resignation
during the Term, Employee shall not (except on behalf of or with the prior written consent of Employer), on Employee’s own
behalf or in the service or on behalf of others, solicit or recruit or attempt to solicit or recruit, directly or by assisting
others, any employee of Employer or its subsidiaries or affiliates, whether or not such employee is a full-time employee or a temporary
employee of Employer or its subsidiaries or affiliates, whether or not such employment is pursuant to a written agreement and whether
or not such employment is for a determined period or is at will, to cease working for Employer.

 

(v)              
Upon Employee’s termination or resignation, Employee will turn over promptly thereafter to Employer all physical items
and other property belonging to Employer, including, without limitation, all business correspondence, letters, papers, reports,
customer lists, financial statements, credit reports or other Confidential Information, data or documents of Employer, in the possession
or control of Employee, all of which are and will continue to be the sole and exclusive property of Employer.

 

(c)              
Definitions. For purposes of this Section 8, the following terms shall be defined as set forth below:

 

    	 	10	 

     

    

 

(i)                
“Competitive,” with respect to particular products or services, shall mean products or services that
are the same as or similar to the products or services of Employer and its subsidiaries and affiliates.

 

(ii)             
“Confidential Information” shall mean data and information: (A) relating to the business of Employer
and its subsidiaries and affiliates, regardless of whether the data or information constitutes a Trade Secret; (B) disclosed to
Employee or of which Employee becomes aware as a consequence of Employee’s relationship with Employer; (C) having value to
Employer; and (D) not generally known to competitors of Employer. Confidential Information shall include, without limitation, Trade
Secrets, methods of operation, names of customers, price lists, financial information and projections, personnel data and similar
information; provided, however, that such term shall not mean data or information that (x) has been voluntarily disclosed
to the public by Employer, except where such public disclosure has been made by Employee without authorization from Employer, (y)
has been independently developed and disclosed by others or (z) has otherwise entered the public domain through lawful means.

 

(iii)           
“Material Contact” shall mean contact between Employee and a customer or prospective customer: (A) with
whom or which Employee dealt on behalf of Employer or its subsidiaries or affiliates; (B) whose dealings with Employer were coordinated
or supervised by Employee; (C) about whom Employee obtained Confidential Information in the ordinary course of business as a result
of Employee’s association with Employer; or (D) who receives products or services as authorized by Employer, the sale or
provision of which results or resulted in compensation, commissions or earnings for Employee within the two years immediately preceding
the Termination Date.

 

(iv)            
“Restricted Territory” shall mean the geographic territory within a 50-mile radius of Employer’s
corporate office located at 1301 Riverplace Boulevard, Suite 2600, Jacksonville, Florida 32207; provided, however,
that if the physical location of such office shall change, then the Restricted Territory shall mean the geographic territory within
a 50-mile radius of the physical location of such office at such time and, in the event of the termination of Employee’s
employment, the Restricted Territory shall mean the geographic territory within a 50-mile radius of the physical location of such
office on the Termination Date.

 

(v)              
“Trade Secret” shall mean information, without regard to form, including, but not limited to, technical
or nontechnical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a process, financial
data, financial plans, product plans or a list of actual or potential customers or suppliers, that is not commonly known by or
available to the public and which information (A) derives economic value, actual or potential, from not being generally known to,
and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use
and (B) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

 

(d)              
Equitable Remedies. Employee acknowledges that irreparable loss and injury would result to Employer upon the breach
of any of the covenants contained in this Section 8 and that damages arising out of such breach would be difficult to ascertain.
Employee hereby agrees that, in addition to all other remedies provided at law or in equity, Employer may petition and obtain from
a court of law or equity, without the necessity of proving actual damages and without posting any bond or other security, both
temporary and permanent injunctive relief to prevent a breach by Employee of any covenant contained in this Section 8.

 

    	 	11	 

     

    

 

9.                 
Employee’s Representations. Employee hereby represents to Employer that the execution and delivery of this
Agreement by Employee and Employer and the performance by Employee of Employee’s duties hereunder shall not constitute a
breach of, or otherwise contravene, the terms of any employment agreement or other agreement or policy to which Employee is a party
or otherwise bound. Employee represents and warrants that Employee is not subject to any employment agreement, nondisclosure agreement,
common law nondisclosure obligation, fiduciary duty, noncompetition agreement, restrictive covenant or any other obligation to
any former employer or to any other person or entity that conflicts in any way with Employee’s ability to be employed by
or perform services for Employer.

 

10.             
Assignment and Successors.

 

(a)              
Employee. This Agreement is personal to Employee and without the prior written consent of Employer shall not be assignable
by Employee otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be
enforceable by Employee’s legal representatives.

 

(b)              
Employer. This Agreement shall inure to the benefit of and be binding upon Employer and its successors and assigns.
The Bancorp and the Bank will each require any successor to it (whether direct or indirect, by stock or asset purchase, merger,
consolidation or otherwise) or to all or substantially all of its business or assets to assume expressly and agree to perform this
Agreement in the same manner and to the same extent it would be required to perform it if no such succession had taken place.

 

11.             
Miscellaneous.

 

(a)              
Waiver. Failure of either party to insist, in one or more instances, on performance by the other in strict accordance
with the terms and conditions of this Agreement shall not be deemed a waiver or relinquishment of any right granted in this Agreement
or of the future performance of any such term or condition or of any other term or condition of this Agreement, unless such waiver
is contained in a writing signed by the party making the waiver.

 

(b)              
Modification of Covenants; Severability. Should any provision of this Agreement be held by a court of competent jurisdiction
to be enforceable only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, including,
in each case and without limitation, the time, geographic or other limitations set forth in Section 8 hereof, such holding shall
not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the parties
with any such modification to become a part hereof and treated as though originally set forth in this Agreement. The parties further
agree that any such court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing
such unenforceable provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any or
all of the offending provision, adding additional language to this Agreement or making such other modifications as it deems warranted
to carry out the intent and agreement of the parties as embodied herein to the maximum extent permitted by law. The parties expressly
agree that this Agreement as so modified by the court shall be binding upon and enforceable against each of them. In any event,
should one or more of the provisions of this Agreement be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provisions hereof, and if such provision or provisions are not modified
as provided above, this Agreement shall be construed as if such invalid, illegal or unenforceable provisions had not been set forth
herein.

 

    	 	12	 

     

    

 

 

(c)              
Entire Agreement. Except as provided herein, this Agreement contains the entire agreement between Employer and Employee
with respect to the subject matter hereof and from and after the Effective Date supersedes and invalidates all previous employment
and severance agreements with Employee. No representations, inducements, promises or agreements, oral or otherwise, which are not
embodied herein shall be of any force or effect.

 

(d)              
Withholdings. Notwithstanding any other provision of this Agreement, Employer shall withhold from any amounts payable
or benefits provided under this Agreement any federal, state and local taxes as shall be required to be withheld pursuant to any
applicable law or regulation.

 

(e)              
Compliance with Section 409A.

 

(i)                
It is intended that this Agreement shall conform with all applicable Section 409A requirements to the extent Section 409A
applies to any provisions of the Agreement. Accordingly, in interpreting, construing or applying any provisions of the Agreement,
the same shall be construed in such manner as shall meet and comply with Section 409A, and in the event of any inconsistency with
Section 409A, the same shall be reformed so as to meet the requirements of Section 409A. For purposes of Section 409A, each payment
made under this Agreement shall be treated as a separate payment and the right to a series of installment payments under this Agreement
is to be treated as a right to a series of separate payments. In no event shall Employee, directly or indirectly, designate the
calendar year of payment. Employee acknowledges that Employer has not made, and does not make, any representation or warranty regarding
the treatment of this Agreement or the benefits payable under this Agreement under federal, state or local income tax laws, including,
but not limited to, Section 409A or compliance with the requirements thereof.

 

(ii)             
To the extent Employee is a “specified employee” as defined in Section 409A, notwithstanding the timing of payment
provided in any other Section of this Agreement, no payment, distribution or benefit under this Agreement that constitutes a distribution
of deferred compensation (within the meaning of Section 409A) upon separation from service (within the meaning of Section 409A),
after taking into account all available exemptions, that would otherwise be payable, distributable or settled during the six-month
period after separation from service, will be made during such six-month period, and any such payment, distribution or benefit
will instead be paid, distributed or settled on the first business day after such six-month period; provided, however,
that if Employee dies following the Termination Date and prior to the payment, distribution, settlement or provision of any payments,
distributions or benefits delayed on account of Section 409A, then such payments, distributions or benefits shall be paid or provided
to the personal representative of Employee’s estate within 30 days after the date of Employee’s death.

 

    	 	13	 

     

    

 

(f)               
Clawback Provisions. Notwithstanding any other provisions in this Agreement to the contrary, any bonus, incentive-based,
equity-based or other similar compensation paid to Employee pursuant to this Agreement or any other agreement or arrangement with
Employer which is subject to recovery under any law, government regulation or stock exchange listing requirement will be subject
to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing
requirement (or any policy adopted by Employer pursuant to any such law, government regulation or stock exchange listing requirement).

 

(g)              
Governing Law. Except to the extent preempted by federal law, the laws of the State of Georgia shall govern this
Agreement in all respects, whether as to its validity, construction, capacity, performance or otherwise.

 

(h)              
Notices. Any notice or other communication required or permitted hereunder shall be in writing and shall be delivered
personally, by nationally recognized overnight courier service or sent by certified, registered or express mail, postage prepaid.
Any such notice shall be deemed given when so delivered personally, when delivered by nationally recognized overnight courier service
or, if mailed, five days after the date of deposit in the United States mail, as follows: (i) if to Employer: Ameris Bancorp, 310
First Street, S.E., Moultrie, Georgia 31768, Attention: Chief Executive Officer; and (ii) if to Employee: at the most recent address
on file for Employee with Employer. Any party may change the address to which notices, requests, demands and other communications
shall be delivered or mailed by giving notice thereof to the other party in the same manner provided herein.

 

(i)                
Amendments. Except as otherwise provided in Section 11(b) hereof, this Agreement may be amended or modified only
by a writing signed by all parties hereto that makes specific reference to this Agreement.

 

(j)                
No Mitigation. In no event shall Employee be obligated to seek other employment or take any other action by way of
mitigation of the amounts payable to Employee under this Agreement.

 

(k)              
Survival. Upon the expiration or other termination of this Agreement, the respective rights and obligations of the
parties hereto shall survive such expiration or other termination to the extent necessary to carry out the intentions of the parties
under this Agreement.

 

[Signature page follows.]

 

    	 	14	 

     

    

 

 

IN WITNESS WHEREOF,
the parties hereto have duly executed and delivered this Severance Protection and Restrictive Covenants Agreement as of the date
first above written.

 

	 	AMERIS BANCORP	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Edwin W. Hortman, Jr.	 
	 	Name:	Edwin W. Hortman, Jr.	 
	 	Title:	President and Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	AMERIS BANK	 
	 	 	 	 
	 	 	 	 
	 	By:	 /s/ Edwin W. Hortman, Jr.	 
	 	Name:	Edwin W. Hortman, Jr.	 
	 	Title:	Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	/s/ William D. McKendry	 
	 	William D. McKendry	 

 

 

    	 	15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}]]