Document:

rgld_Ex10_3

		

			 

		

		
			EXHIBIT 10.3
		

		
			1660 Wynkoop Street, Suite 1000
		

		
			Denver, Colorado  80202-1132
		

		
			Phone: (303) 575-6503
		

		
			Fax: (303) 595-9385
		

		
			www.royalgold.com
		

		
			 
		

		
			
		

		
			 
		

		
			January 1, 2020
		

		
			 
		

		
			Via Hand Delivery
		

		
			 
		

		
			Mr. Bruce Kirchhoff
		

		
			[Address]
		

		
			[Address]
		

		
			 
		

		
			Dear Bruce:
		

		
			 
		

		
			This letter agreement (this “Agreement”) between you and Royal Gold, Inc. (the “Company”) sets forth the terms and conditions of your previously announced decision to retire as the Vice President, General Counsel and Secretary of the Company.  Except where otherwise specified in this Agreement, effective on the Retirement Date, this Agreement supersedes and terminates the Employment Agreement by and among you and the Company dated as of July 1, 2016, as amended by that First Amendment dated as of December 15, 2017 (the “Employment Agreement”). Please acknowledge your agreement and acceptance of the terms of this Agreement by countersigning and returning a copy of this letter to me.
		

		
			 
		

		
			Any capitalized terms that are not otherwise defined herein shall have the meanings assigned thereto in the Employment Agreement.
		

		
			 
		

		
			In consideration of the mutual promises contained in this Agreement, you and the Company agree, effective as of the date of this Agreement, as follows:
		

		
			 
		

		
			1.            Retirement Date.
		

		
			 
		

		
			(a)          Your separation from service will be effective at 11:59 PM the day immediately prior to the effective date of the appointment of a new Vice President and General Counsel of the Company, which appointment is anticipated to be effective January 2, 2020 (the “Retirement Date”).  Until the Retirement Date, you will continue in employment as a full-time executive of the Company, and, in addition to your duties as Vice President, General Counsel and Secretary, you shall provide such transition assistance to your named successor as may be reasonably requested by the Board of Directors of the Company.  Effective on the Retirement Date, you will resign from your position as the Vice President, General Counsel and Secretary of the Company and any other positions you may have with the Company and all of its subsidiaries and affiliates, and will promptly execute such documents and take such actions as may be necessary or reasonably requested by the Company to effectuate or memorialize your resignation from such positions in accordance with the terms of this Agreement.  The parties agree that your decision to retire is entirely voluntary and will be treated neither as a “Termination by Company without Cause” nor as a “By Executive for Good Reason” termination pursuant to Section 5(a) of the Employment Agreement.  Further, you acknowledge and agree that any transition activities undertaken between now and the Retirement Date will not
		

		
			
		

		
			

		 

		

			 

		

		

			January 1, 2020

		

		

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			constitute grounds for you to terminate your employment “By Executive for Good Reason” pursuant to Section 5(a) of the Employment Agreement.  You acknowledge that your receipt of this Agreement constitutes a “Notice of Termination” as that term is used in Section 4(a) of the Employment Agreement, with a “date provided” being the Retirement Date.
		

		
			 
		

		
			(b)          You agree to assist the Company with transition of your responsibilities and to comply with other post-employment requests including assisting the Company in defense of any pending, threatened, or anticipated litigation, proceeding, or inquiry in matters which the Company reasonably determines your participation to be necessary. You shall not be entitled to additional consideration for providing the cooperation required in the foregoing sentence; however, the Company will reimburse you for pre-approved reasonable expenses (excluding attorneys’ fees), if any, you incur while providing such cooperation.
		

		
			 
		

		
			(c)          On or following the Retirement Date, you will receive: (i) the Accrued Obligations as defined in, and in accordance with the terms set forth in, the Employment Agreement; and (ii) an amount equal to accrued and unused sick leave in excess of 720 hours in accordance with the provisions of the Company’s Employee Handbook.
		

		
			 
		

		
			(d)          Provided you remain employed until the Retirement Date (and have not been earlier terminated for Cause) and, in exchange for your execution and non-revocation of the Release of Claims in the form attached as Exhibit A (the “Release”) on the Retirement Date, which Release must become irrevocable on or before fifteen (15) days following the Retirement Date, and your compliance with the provisions of this Agreement and the Release, then, effective as of the date the Release becomes irrevocable:
		

		
			 
		

		
			(i)       the Company will pay you a short-term cash incentive award in the amount of the short-term cash incentive awarded for your performance during fiscal year 2019, pro-rated for your service during fiscal year 2020, which amount is $177,500; and
		

		
			 
		

		
			(ii)      the Company will cause the incentive stock options, stock-settled stock appreciation rights and one-year total shareholder return performance shares identified on Exhibit B to become fully vested.
		

		
			 
		

		
			(e)          You acknowledge and agree that you have no right to receive any compensation, payments or benefits from the Company, other than as expressly set forth in Section 1 of this Agreement.
		

		
			 
		

		
			2.            Restrictive Covenants, Reaffirmation.
		

		
			 
		

		
			(a)          You reaffirm your obligations under the following sections of the Employment Agreement, which are incorporated herein by reference and survive the Retirement Date: Section 8 (Ownership and Protection of Intellectual Property and Confidential Information), Section 9 (Covenant Not to Compete and Other Restrictive Covenants), Section 10 (Severability and Reformation), Section 12(i) (Use of Name, Likeness and Biography), Section 12(k) (Assistance in Litigation), Section 12(n) (Remedies), Section 12(o) (Arbitration), Section 12(q) (Jury Trial Waiver), and Section 12(s) (Non-Disparagement).
		

		
			 
		

		
			(b)          The parties hereto reaffirm their respective obligations pursuant to the Amended and Restated Indemnification Agreement entered into between them dated as of September 1, 2014.
		

		
			 
		

		
			3.            Taxes.  The Company may withhold from any amounts payable under this Agreement all federal, state, city, foreign or other taxes as the Company is required to withhold pursuant to any applicable law, regulation or ruling. Notwithstanding any other provision of this Agreement, the Company shall not be obligated to guarantee any particular tax result for you with respect to any payment provided hereunder, and you shall be responsible for any taxes imposed on you with respect to any such payment.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

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			4.            Section 409A. This Letter Agreement and the payments to be made hereunder are intended to comply with, or be exempt from, Section 409A of the Internal Revenue Code of 1986, as amended and the regulations promulgated thereunder (“Section 409A”), and this Agreement will be interpreted, and all tax filings with the Internal Revenue Service relating to the payments will be made, in a manner consistent with that intent. Your separation from the Company on the Retirement Date is intended to constitute a “separation from service” for purposes of Section 409A.
		

		
			 
		

		
			5.            Consultation with Attorney; Voluntary Agreement. You acknowledge that (a) the Company has advised you to consult with an attorney of your own choosing prior to executing this Agreement, (b) you have carefully read and fully understand all of the provisions of this Agreement, and (c) you are entering into this Agreement knowingly, freely and voluntarily in exchange for good and valuable consideration to which you are not otherwise entitled.
		

		
			 
		

		
			6.            Governing Law, Severability, and Forum Selection.  This Agreement is governed by and is to be construed, administered, and enforced in accordance with the laws of the State of Colorado, without regard to conflicts of law principles. If under the governing law, any portion of this Agreement is at any time deemed to be in conflict with any applicable statute, rule, regulation, ordinance, or other principle of law, such portion shall be deemed to be modified or altered to the extent necessary to conform thereto or, if that is not possible, to be omitted from this Agreement. Any action or arbitration in regard to this Agreement or arising out of its terms and conditions, pursuant to Sections 12(n) and 12(o) of the Employment Agreement, shall be instituted and litigated only in the City and County of Denver, Colorado.
		

		
			 
		

		
			7.            Entire Agreement. This Agreement, the Release and the provisions of the Employment Agreement that have been incorporated herein by reference, constitute and contain the entire agreement and understanding concerning your employment, cessation of employment and the other subject matters addressed herein between the parties, and supersedes and replaces all prior negotiations and all agreements proposed or otherwise, whether written or oral, concerning the subject matters hereof.  The Company may in its sole discretion assign its rights and obligations under this Agreement to any successor entity, and such rights may be enforced by any such successor.
		

		
			 
		

		
			8.            Amendments. This Agreement shall not be amended, altered or modified except by an instrument in writing duly executed by the parties hereto.
		

		
			 
		

		
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			January 1, 2020

		

		

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			9.            Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be an original, and all of which shall be deemed to constitute one and the same instrument.  Electronic signatures, and copies of electronic signatures, shall have the force and effect of original signatures.
		

		
			 
		

		
			If the foregoing accurately reflects our agreement, please sign and return to us the enclosed duplicate copy of this Agreement.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ROYAL GOLD, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Ronald J. Vance

				
	
					
						 

					
					
						Name:

					
					
						Ronald J. Vance

				
	
					
						 

					
					
						Title:

					
					
						Chairman, Compensation, Nominating and Governance

				
	
					
						 

					
					
						 

					
					
						Committee of the Royal Gold Inc. Board of Directors

				

		
			 
		

		
			Accepted and Agreed to:
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						/s/ Bruce C. Kirchoff

					
					
						 

				
	
					
						Bruce C. Kirchhoff

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

		

		
			EXHIBIT A
		

		
			RELEASE AGREEMENT
		

		
			For and in consideration of the payments and other benefits due to Bruce Kirchhoff (the “Executive”) pursuant to the Employment Agreement dated as of July 1, 2016, as amended by that First Amendment to Employment Agreement dated December 15, 2017  (the “Employment Agreement”), by and between Royal Gold, Inc., a Delaware corporation (the “Company”) and Executive, the letter agreement dated January 1, 2020 by and between the Company and Executive (the “Retirement Agreement”), and for other good and valuable consideration, Executive hereby agrees, for Executive, Executive’s spouse and child or children (if any), Executive’s heirs, beneficiaries, devisees, executors, administrators, attorneys, personal representatives, successors and assigns, to forever release, discharge and covenant not to sue the Company, or any of its divisions, affiliates, subsidiaries, parents, branches, predecessors, successors, assigns, and, with respect to such entities, their officers, directors, trustees, employees, agents, shareholders, administrators, general or limited partners, representatives, attorneys, insurers and fiduciaries, past, present and future (the “Released Parties”) from any and all claims of any kind, in law and in equity, whether known or unknown, suspected or unsuspected, disclosed or undisclosed, and including attorney’s fees, that are based in whole or in part on acts or omissions occurring on or before the date Executive signs this Release and which arise out of, or relate to, Executive’s employment with the Company, its affiliates and subsidiaries (collectively, with the Company, the “Affiliated Entities”) or Executive’s separation from employment with the Affiliated Entities, which Executive now has or may have against the Released Parties (the “Released Claims”).  The Released Claims include, without limitation, claims arising under:
		

		
			(i)           Antidiscrimination laws, such as Title VII of the Civil Rights Act of 1964, as amended, and Executive Order 11246 (which prohibit discrimination and harassment based on race, color, national origin, religion, or sex and retaliation for making a claim of discrimination or harassment based on any such characteristic); Section 1981 of the Civil Rights Act of 1866 (which prohibits discrimination or harassment based on race or color and retaliation for making a claim of discrimination or harassment based on any such characteristic); the Americans with Disabilities Act and Sections 503 and 504 of the Rehabilitation Act of 1973 (which prohibit discrimination or harassment based upon disability, retaliation for making a claim of such discrimination or harassment, and the failure to provide a reasonable accommodation for a known disability in response to a request for accommodation); the Age Discrimination in Employment Act (which prohibits discrimination or harassment based on age and retaliation for making a claim of discrimination or harassment under the act); the Equal Pay Act (which prohibits paying men and women unequal pay for equal work); the Colorado Anti-Discrimination Act (which prohibits discrimination or harassment on the basis of age (40 years of age or older), race, creed, color, sex, sexual orientation, gender identity, national origin, religion, ancestry, or physical or mental disability and prohibits retaliation for reporting or making a claim of discrimination or harassment based on any such characteristic); or any other local, state or federal statute, regulation, common law or decision concerning discrimination, harassment, or retaliation on these or any other grounds or otherwise governing the employment relationship;
		

		
			(ii)          Other employment laws, such as the Federal Worker Adjustment and Retraining Notification Act of 1988 (known as WARN laws, which require that advance notice be given for certain workforce reductions); the Executive Retirement Income Security Act of 1974 (which, among other things, protects employee benefits); the Fair Labor Standards Act of 1938 (which regulates wage and hour matters); the Family and Medical Leave Act of 1993 (which requires employers to provide leaves of absence under certain circumstances); and any other federal, state, or local statute, regulation, common law or decision relating to employment, wage laws, veterans’ reemployment rights laws or laws regulating any other aspect of employment;
		

		
			(iii)         All federal, state, local, or common law claims alleging that Executive did not receive payment for, or otherwise related to, salary, bonuses, commissions, stock, stock options, or any other ownership interests in the Company, vacation pay, fringe benefits, expense reimbursements, separation pay, or any other form of compensation;
		

		
			(iv)         Other laws of general application, such as any federal, state, local or common laws enforcing express or implied employment or other contracts or covenants; any other federal, state or local or common laws providing relief for alleged wrongful discharge, physical or personal injury, breach of contract, intentional or negligent infliction of emotional distress, fraud, negligent misrepresentation, defamation, invasion of privacy, violation of public policy, breach of the covenant of good faith and fair dealing, and similar or related claims; common law claims under any tort, contract or other theory now or hereafter recognized, and any other federal, state, or local statute, regulation, common law or decision otherwise regulating employment or the termination of employment; and
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			(v)          Any and all other claims related to, or arising out of Executive’s employment with the Company and/or the Affiliated Entities or the termination of that employment.
		

		
			Executive understands and agrees that by signing this Release Executive is giving up the right to bring any legal claim against the Released Parties concerning, directly or indirectly, Executive’s employment relationship with Company and/or the Affiliates, including Executive’s separation from employment.  Executive has had the opportunity to specifically consult with counsel with respect to the agreements, representations, and declarations set forth in this paragraph.  Executive agrees that this legal release is intended to be interpreted in the broadest possible manner in favor of the Company and the other Released Parties, to include all actual or potential legal claims that Executive may have against the Released Parties, except as specifically provided otherwise in this Release.  Executive hereby warrants that Executive has no lawsuits, claims or actions pending in Executive’s name or on behalf of any other person or entity, against the Company and/or the Affiliates or any other Released Party.  Executive covenants never to institute any action or other proceeding based in whole or part upon any Released Claim.  Executive represents and warrants that Executive has not sold or otherwise assigned any claim or any portion of any Released Claim to any third party.
		

		
			Executive has read this Release carefully, acknowledges that Executive has been given at least twenty-one (21) days to consider all of its terms and has been advised to consult with an attorney and any other advisors of Executive’s choice prior to executing this Release.  Executive acknowledges that Executive has been advised by the Company that he should carefully read and fully understand the provision of this Release before signing it, fully understands that by signing below Executive is voluntarily giving up any right which Executive may have to sue or bring any claims against the Released Parties, including any rights and claims under the Age Discrimination in Employment Act. Executive also understands that Executive has a period of seven (7) days after signing this Release within which to revoke his agreement by written notice delivered to the Company in accordance with the Employment Agreement, and that neither the Company nor any other person is obligated to make any payments or provide any other benefits to Executive pursuant to the Employment Agreement until eight (8) days have passed since Executive’s signing of this Release without Executive’s signature having been revoked, other than any accrued obligations or other benefits payable pursuant to the terms of the Company’s normal payroll practices or employee benefit plans. Finally, Executive has not been forced or pressured in any manner whatsoever to sign this Release, and Executive agrees to all of its terms voluntarily.  In the event Executive chooses to revoke this Release within seven (7) calendar days after the day Executive signs it, this Release shall be void, all actions taken pursuant to this Release shall be reversed, and neither this Release nor the fact of or circumstances surrounding its execution shall be admissible for any purpose whatsoever in any proceeding between the parties to the Release, except in connection with a claim or defense involving the validity or effective rescission of this Release.
		

		
			Notwithstanding anything else herein to the contrary, this Release shall not affect: (i) the Company’s obligations under any compensation or employee benefit plan, program or arrangement (including, without limitation, obligations to Executive under the Employment Agreement, any stock option, stock award or agreements or obligations under any pension, deferred compensation or retention plan) provided by the Affiliated Entities where Executive’s compensation or benefits are intended to continue or Executive is to be provided with compensation or benefits, in accordance with the express written terms of such plan, program or arrangement, beyond the date of Executive’s termination; (ii) rights to indemnification Executive may have under the Employment Agreement or a separate agreement entered into with the Company; or (iii) rights Executive may have as a shareholder.
		

		
			Executive agrees that Executive shall not make any disparaging, derogatory or detrimental comments about the Company or any of the Affiliated Entities or any of their directors, officers, employees, partners, members, managers or shareholders, or any investor or other person or entity having a business relationship with the Company or any of the Affiliated Entities. Executive also acknowledges that the terms of this Release constitute Proprietary and Confidential Information (as defined in the Employment Agreement).
		

		
			Notwithstanding anything else in this Release, Executive  may (i) participate in an investigation or proceeding conducted by a federal, state or local government agency (collectively, a "Government Agency") authorized to enforce or administer laws within the Government Agency's jurisdiction, including any laws prohibiting  unlawful conduct,  or to otherwise provide information to or file a charge with such a Government Agency, or (ii) exercise any other right to the extent such right as a matter of law may not be limited by this Release; provided  that this Release does waive any right of Executive to seek, recover or accept any monetary payments or other individual relief connected to any Government Agency proceeding or any other action related to claims that are lawfully released in this Release (other than an award from the Securities and Exchange Commission  in exchange for information, if applicable).  Further, Executive represents that, as of the date he signs this Release, Executive has not initiated and has not and is not participating in an investigation or proceeding conducted by a Government Agency pertaining to the Company.  Executive agrees that in the event Executive receives a subpoena or similar request or demand by any person or entity (including a Government Agency) to give
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

		

		
			testimony or produce documents pertaining to Employee's employment with the Company, Executive will give prompt written notice of such subpoena, request, or demand to the Company’s Vice President and General Counsel, to allow the Company a reasonable opportunity to, if it elects, first contest the right of the requesting person or entity to such disclosure.
		

		
			The parties understand and agree that this Release shall not be construed as an admission of liability on the part of any person or entity, liability being expressly denied.
		

		
			This Release is final and binding and may not be changed or modified except in a writing signed by both parties. This Release is governed by and is to be construed, administered, and enforced in accordance with the laws of the State of Colorado, without regard to conflicts of law principles.
		

		
			 
		

		
			THIS RELEASE MAY NOT BE SIGNED UNTIL THE RETIREMENT DATE, AS THAT TERM IS DEFINED IN THE RETIREMENT AGREEMENT TO WHICH THIS RELEASE IS ATTACHED.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/ Bruce C. Kirchhoff

				
	
					
						 

					
					
						Bruce C. Kirchhoff

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						ROYAL GOLD, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Ronald J. Vance

				
	
					
						 

					
					
						Name:

					
					
						Ronald J. Vance

				
	
					
						 

					
					
						Title:

					
					
						Chairman, Compensation, Nominating and Governance Committee of the Royal Gold, Inc. Board of DirectorsExhibit

Retention Agreement
This Retention Agreement (the "Agreement") is made and entered into as of January 1, 2020, by and between David Foss ("Executive") and Jack Henry & Associates, Inc., a Delaware corporation (the "Company").
WHEREAS, the Board of Directors of the Company (the "Board") has determined that it is important and beneficial to the Company and its shareholders to retain Executive in his current role as Chief Executive Officer ("CEO") of the Company for an extended period of time; 
WHEREAS, in order to incent Executive to remain in such role through 2023, the Board has agreed to grant Executive a retention restricted stock unit equity award under the Company's 2015 Equity Incentive Plan (the "RSUs"), the terms of which provide for weighted vesting over a four-year vesting period, with half of such RSUs only becoming vested if Executive remains in his current position of CEO until December 31, 2023; and
WHEREAS, the Company and Executive desire to memorialize additional severance protections relating to the RSUs award in the event Executive's employment is involuntarily terminated by the Company and Executive's release of claims and restrictive covenant obligations in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants, promises, and obligations set forth herein, the parties agree as follows:
1.Grant of Retention Equity Award. In consideration of Executive entering into this Agreement, on January 1, 2020 (the "Grant Date"), the Company will grant to Executive pursuant to the 2015 Equity Incentive Plan (the "Plan") and that Restricted Stock Unit Agreement entered into between Executive and the Company (the "RSU Agreement") that number of restricted stock units equal to four million dollars ($4,000,000.00) divided by the Fair Market Value of a Share of the Company's Common Stock (as such terms are defined in the Plan) on December 31, 2019, rounded up to the next whole unit (the “RSU Award”).  All other terms and conditions of such RSU Award shall be governed by the terms and conditions set forth herein, the 2015 Equity Incentive Plan and the RSU Agreement.
2.    Vesting of Retention Equity Award.  
2.1    General Vesting.  The RSU Award Agreement shall provide that the Retention Equity Award shall vest from the Grant Date to December 31, 2023 (the "Term") as follows: ten percent (10%) on the first anniversary of the Grant Date, twenty percent (20%) on the second anniversary of Grant Date, twenty percent (20%) on the third anniversary of the Grant Date, and the remaining fifty percent (50%) on the fourth anniversary of the Grant Date, provided that at all times through each vesting date Executive has remained employed with the Company and performed the duties associated with his position as described in Section 3. 
2.2    Accelerated Vesting. The RSUs shall be subject to the special accelerated vesting provisions set forth in this Section 2.2 in addition to any other accelerated vesting provision set forth in the Plan or the RSU Agreement. 
(a)    Vesting Upon Death or Disability.  If Executive's employment ends before the end of the Term due to Executive's death or Disability, all unvested RSUs shall become fully vested and the resulting Shares issued to Executive (or Executive's estate and/or beneficiaries, as the case may be). 
(b)    Vesting Upon Termination by Company without Cause or Resignation for Good Reason. If Executive's employment ends before the end of the Term due to Executive's employment being involuntarily terminated by the Company without Cause or due to Executive's resignation with Good Reason, then, subject to Executive's compliance with Section 5 of this Agreement and the agreements referenced therein and his execution, within 21 days (or any longer notice period required by law) following receipt, of a release of claims in favor of the Company, its affiliates and their respective officers and directors in a form provided by the Company (the "Release") (such 21-day period, the "Release Execution Period"), and the Release becoming effective according to its terms, upon such termination, all unvested RSUs shall become fully vested and settled in accordance with the terms of the RSU Agreement.    
(c)     No Vesting Upon Termination by Company with Cause or Resignation by Executive without Good Reason.  If Executive's employment ends before the end of the Term due to Executive's employment being involuntarily terminated by the Company for Cause or due to Executive's resignation without Good Reason, then upon such termination, no additional unvested RSUs shall become vested and all such remaining unvested RSUs shall be forfeited. 
(d)    Definitions.  The following terms used in this Agreement have the following meanings:
(i)    "Cause" means 
(A)    Executive's willful failure to perform his duties (other than any such failure resulting from incapacity due to physical or mental illness);
(B)    Executive's repeated failure to comply with any valid and legal directive of the Board;
(C)    Executive's willful engagement in dishonesty, illegal conduct, or gross misconduct, which is, in each case, injurious to the Company or its affiliates;
(D)    Executive's embezzlement, misappropriation, or fraud, whether or not related to Executive's employment with the Company;
(E)    Executive's indictment or conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude;
(F)    Executive's material breach of any material obligation under this Agreement or any other written agreement between Executive and the Company; or
(G)    Any material failure by Executive to comply with the Company's written policies or rules, as they may be in effect from time to time during the Term.
For purposes of this definition, none of Executive's acts or failures to act shall be considered "willful" unless Executive acts, or fails to act, in bad faith or without reasonable belief that the action or failure to act was in the best interests of the Company. Executive's actions, or failures to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the advice of counsel for the Company shall be conclusively presumed to be in good faith and in the best interests of the Company.
The Executive shall have ten (10) business days from the delivery of written notice by the Company within which to cure any acts constituting Cause; provided however, that, if the Company reasonably expects irreparable injury from a delay of ten (10) business days, the Company may give the Executive written notice of such shorter period within which to cure as is reasonable under the circumstances.
(ii)    "Disability" means Executive is entitled to receive long-term disability benefits under the Company's long-term disability plan. Any question as to the existence of Executive's Disability as to which Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to Executive and the Company. The determination of Disability made in writing to the Company and Executive shall be final and conclusive for all purposes of this Agreement.
(iii)    "Good Reason" means the occurrence of any of the following, in each case during the Term without Executive's prior written consent:
(A)    a material reduction in Executive's Base Salary;
(B)    a relocation of Executive's principal place of employment by more than 50 miles;
(C)    any material breach by the Company of any material provision of this Agreement or any material provision of any other agreement between Executive and the Company;
(D)    the Company's failure to obtain an agreement from any successor to the Company to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no succession had taken place, except where such assumption occurs by operation of law;
(E)    the Company's failure to nominate Executive for election to the Board and to use its best efforts to have him elected and re-elected, as applicable;
(F)    a material, adverse change in Executive's title, authority, duties, or responsibilities (other than temporarily while Executive is physically or mentally incapacitated or as required by applicable law); or
(G)    a material adverse change in the reporting structure applicable to Executive.
To terminate his employment for Good Reason, Executive must provide written notice to the Company of the existence of the circumstances providing grounds for termination for Good Reason within 30 days of the initial existence of such grounds and the Company must have at least 30 days from the date of receipt of such notice to cure such grounds. If Executive does not terminate his employment within 180 days of such first occurrence of the applicable grounds, then Executive will be deemed to have waived his right to terminate for Good Reason with respect to such grounds.
3.    Position, Duties, Compensation and Obligations During Term.
3.1    Position. During the Term, Executive shall serve as the President and Chief Executive Officer of the Company, reporting to the Board. In such position, Executive shall have such duties, authority, and responsibilities as are consistent with Executive's position.
3.2    Duties. During the Term, Executive shall devote substantially all of his business time and attention to the performance of Executive's duties hereunder and will not engage in any other business, profession, or occupation for compensation or otherwise which would conflict or interfere with the performance of such services either directly or indirectly without the prior written consent of the Board.  Executive currently serves as a director on the Board of Directors of CNO Financial Group, Inc. which does not require this written consent.
3.3    Place of Performance. The principal place of Executive's employment during the Term shall be the Company's office currently located in Allen, Texas; provided that, Executive will be required to travel on Company business during the Term.
3.4    Compensation During Term. During the Term, the Company shall continue to pay Executive his current base salary, which may be increased from time to time in the discretion of the Board, and Executive shall remain eligible to participate in the Company's non-equity annual incentive, long-term equity incentive bonus programs, and other Company employee benefit programs administered by the Compensation Committee and the Company, which are separate from the RSU Award described in this Agreement.  
3.5    Company's Proprietary Rights and Confidentiality Agreement.  As a condition of Executive's employment with the Company, Executive shall continue to abide by the Company's Proprietary Rights and Confidentiality Agreement.
4.    Notice of Termination. Any termination of Executive's employment hereunder by the Company or by Executive during the Term (other than termination due to Disability or death) shall be communicated by written notice of termination ("Notice of Termination") to the other party hereto in accordance with Section 14. The Notice of Termination shall specify: 
(a)    the termination provision of this Agreement relied upon; 
(b)    to the extent applicable, the facts and circumstances claimed to provide a basis for termination of Executive's employment under the provision so indicated; and
(c)    the applicable date of termination, which shall be no less than 30 days following the date on which the Notice of Termination is delivered if the Company terminates Executive's employment without Cause, or no less than 30 days following the date on which the Notice of Termination is delivered if Executive terminates his employment with or without Good Reason.
5.    Additional Affirmative and Restrictive Covenants. 
5.1    Covenants of Executive.  Executive agrees that the following covenants will be effective during the Term and will survive the termination of this Agreement and the Executive's employment with the Company, whether such termination is for or without Cause.  Executive acknowledges that the following covenants are in addition to, and not in derogation of, any other covenants to which the Executive is subject.
(a)    Non-Solicitation Covenant.  Executive covenants and agrees that during the Term and for a period two (2) years after the termination of Executive's employment with the Company, he will not, directly or indirectly (as an agent, employee, consultant, partner, member or shareholder of a third party), solicit business in competition with the Company from any party who was a customer of the Company while the Executive was employed by the Company. 
(b)    Non-Compete.  Executive covenants and agrees that during the Term and for a period of two (2) years after the date of termination of his employment with the Company he will not, directly or indirectly (as an agent, employee, consultant, partner, owner, member or shareholder of a third party), (i) engage in the business of acquiring, starting up, marketing, managing, consulting, licensing, maintaining, or competing in any way with the business of the Company, or (ii) engage in any other business that relates to delivering software and services to financial institutions, including but not limited to, banks and credit unions and their affiliates in the United States of America.  
(c)    No Solicitation of Employees.   Executive agrees that during the term of his employment with the Company and for a period of two (2) years following the date of termination of his employment with the Company he will not, directly or indirectly, solicit the employment or employ or engage the consulting or other services of any person who is employed by the Company or any affiliate or subsidiary thereof or was employed by the Company or any affiliate or subsidiary thereof at any time during the prior six months.
(d)    Procedures.   The parties may mutually agree on procedures and practices for the provision of sufficient information by the Company to the Executive to allow the Executive to fully honor the covenants, restrictions and obligations set forth in this Section 5.
(e)    Remedies.  The parties acknowledge that the legal remedy for damages for actual or anticipated breach of these covenants is inadequate, and injunctive relief is appropriate to prevent or remedy any such breach, so long as such remedy is pursued in good faith by the party seeking injunctive relief. Executive has carefully read and considered the covenants set forth above and, having done so, agrees that the restrictions set forth are fair and reasonable and are reasonably required for the protection of the Company and its business interests.  Executive acknowledges the consideration provided herein and with the RSU Award (absent Executive's agreement to this Section 5) is more than the Company is obligated to pay, and Executive further acknowledges that irreparable harm would result from any breach of any of the covenants in this Section 5 and monetary damages would not provide adequate relief or remedy.  Accordingly, Executive specifically agrees that, if that Executive breaches any of Executive's obligations under this Section 5, the Company shall be entitled to injunctive relief therefor, and in particular, without limiting the generality of the foregoing, the Company may pursue any and all remedies it may have at law or in equity for breach of such obligations.  In addition, the RSU Award, whether or not vested, shall terminate immediately on the first date on which Executive engages in such activity and the Board shall thereupon be entitled to require Executive to return any Shares obtained by Executive under the RSU Award and to require Executive to repay any proceeds received at any time from the sale of Shares obtained by Executive under the RSU Award (plus interest on such amount from the date received at a rate equal to the then prime lending rate) and to recover all reasonable attorneys' fees and expenses incurred in terminating this Award and recovering such Shares and proceeds.
6.    Recoupment Policy. This Award and any resulting delivery of Shares is subject to set-off, recoupment, or other recovery pursuant to the Company's Executive Compensation Recoupment Policy, as amended from time to time (the “Policy”).  By accepting this Award, Executive expressly agrees that the Policy applies to this Award, and Executive consents to any permissive or mandated recoupment requirement as applied to the Award.
7.    Governing Law, Jurisdiction, and Venue. This Agreement, for all purposes, shall be construed in accordance with the laws of Missouri without regard to conflicts of law principles. Any action or proceeding by either of the parties to enforce this Agreement shall be brought only in a state or federal court located in the state of Missouri. The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue.
8.    Entire Agreement. Unless specifically provided herein, this Agreement, together with the Proprietary Rights and Confidentiality Agreement, contains all of the understandings and representations between Executive and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter. 
9.    Modification and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing and signed by Executive and by the Chairperson of the Board's Compensation Committee.  No waiver by either of the parties of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time.
10.    Severability. Should any 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.
11.    Captions. Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.
12.    Counterparts. This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. 
13.    Successors and Assigns. This Agreement is personal to Executive and shall not be assigned by Executive. Any purported assignment by Executive shall be null and void from the initial date of the purported assignment. The Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and permitted successors and assigns.
14.    Notice. Notices and all other communications provided for in this Agreement shall be given in writing by personal delivery, electronic delivery, or by registered mail to the parties at the addresses set forth below (or such other addresses as specified by the parties by like notice):
If to the Company:
Jack Henry & Associates, Inc.
663 West Highway 60
Monett, MO 65708
General Counsel and Secretary
If to Executive:
David Foss
616 Inglenook Court
Coppell, TX 75019
15.    Withholding. The Company shall have the right to withhold from any amount payable hereunder any Federal, state, and local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.
16.    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.
17.    Acknowledgement of Full Understanding. EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT. 
[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
	
			
	 
	JACK HENRY & ASSOCIATES, INC.

	 
	

By /s/John F. Prim
Name: John F. Prim
Title: Chairman of the Board

	 
	EXECUTIVE

	 
	Signature: /s/ David Foss
Print Name: David Foss

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