Document:

Exhibit
10.4

 

 

STRICTLY CONFIDENTIAL

 

May 7, 2008

 

Christopher
D.T. Guiffre

 

                Re:          Separation Agreement and Release

 

Dear
Chris:

 

As we have discussed, your employment with Cubist
Pharmaceuticals, Inc. (alternatively, “Cubist” or the “Company”) will end
on May 31, 2008 (the “Departure Date”).

 

Effect
of Departure

 

On your Departure Date, you will be paid all wages
and other compensation due, including payment for all accrued but unused vacation,
through the Departure Date. Except as set forth below, your participation in
all of the Company’s employee benefit plans will end as of your Departure Date,
in accordance with the terms of those plans.

 

Severance Benefits

 

To assist you through this transition and in consideration
of your acceptance of all terms of this Separation Agreement and Release (this “Agreement”),
the Company is offering to provide you with severance pay in the amount of eighteen
(18) months’ salary (“Separation Pay”).  The
Separation Pay will be payable in accordance with our normal payroll cycles in twelve (12) equal semi-monthly
installments,
and will be reduced by any taxes and other amounts that the Company is legally
required to withhold.  You will not be
able to make any salary deferrals for contribution to the Cubist 401(k) from
the Separation Pay.  Payments of your
Separation Pay will begin on the first payroll date following the Departure Date.

 

In
addition, upon completion of
the appropriate COBRA election forms, and subject to all the requirements
of COBRA, the Company shall continue for eighteen (18) months following the Departure
Date (the “Continuation Period”) your participation in the Company’s medical and
dental insurance plans at the Company’s cost (except for your portion of the
premium which shall be remitted to the Company via payroll during the period in
which you are receiving Severance Pay and by you by personal check to the
Company during the period of the Continuation Period in which you are not
receving Severance Pay) to the same extent that such insurance is provided to
active Company employees from time to time. 
After the Continuation Period, you will have the right to continue your medical insurance, subject to
the requirements of COBRA, at your own cost (as described in the COBRA
qualifying notice provided to you under separate cover).  The “qualifying event” under COBRA shall be
deemed to have occurred on the Departure Date. “COBRA” is the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended.

 

1

 

Complete Satisfaction

 

You agree that the Separation Pay as described in
this Agreement shall be in full and complete satisfaction of any and all
monetary sums and other obligations which are now, or might hereafter have
become, owing to you for services rendered by you during your employment or in
connection with your termination of employment. 
You agree that your separation from the Company is final and that the
Company has no obligation to consider you for rehire or reinstatement.

 

Your Continuing Obligations

 

You
acknowledge you have had access to information concerning the Company, its
clients, and its affiliates, which is confidential or proprietary in nature
(the “Confidential Information”).  You
agree that you will continue to protect the Confidential Information in
accordance with the provisions of the employee confidentiality agreement that
you signed when you commenced employment with the Company (the “Employee
Confidentiality Agreement”), and by executing this Agreement, you reaffirm your
obligations under the Employee Confidentiality Agreement.

 

You
further agree that for a period of one (1) year following the Departure Date
you will not, without the prior written consent of the Company’s CEO, which
shall not be unreasonably withheld, directly or indirectly, either as
principal, partner, stockholder, officer, director, member, employee,
consultant, business or scientific advisory board member, agent, representative
or in any other capacity, own, manage, operate or control, or be concerned
with, connected with, engaged by, employed by, or otherwise associated with,
engage in, or have a financial interest in, any business which engages directly
or indirectly in the research, development, manufacture, distribution, license
or commercialization of antibacterial drugs anywhere in the United States or in any other country where the
Company conducts business.

 

You further agree that the terms and existence of
this Agreement shall remain strictly confidential except to the extent required
to obtain legal or accounting advice or to comply with legal obligations.

 

Non-Disparagement

 

You agree that you will not
disparage the Company or any of the people or organizations associated with it
and that you will not otherwise do or say anything that would harm its business
or reputation.

 

Return of Documents

 

In signing this Agreement, you agree that you will
return to the Company any and all documents, materials and information related
to the business (including all electronic versions), whether present or
otherwise, of the Company and its affiliates, and all copies, and all keys,
credit cards, computers, phone, and other tangible property of the Company and
its affiliates, in your possession or control.

 

Cooperation

 

In signing this Agreement, you agree that you will
cooperate fully with other Cubist employees, including your successor, and
Cubist business partners in smoothly, effectively, and completely transitioning
your work. You further agree that you will make yourself available to the
Company for reasonable periods of time after the Departure Date, either by
telephone or, if you and the Company believes necessary, in person upon
reasonable notice, to assist the Company in connection with any matter relating
to services performed by you 

 

 

on behalf of the Company, and in the defense or
prosecution of any claims or actions now in existence or which may be brought
or threatened in the future against or on behalf of the Company, its directors,
shareholders, officers, or employees.  The
Company shall reimburse you for reasonable documented travel expenses incurred
should your presence be required in person. 
You further agree that should you be contacted (directly or indirectly)
by any individual or any person representing an individual or entity that is or
may be legally or competitively adverse to the Company in connection with any
claims or legal proceedings, you will promptly notify the CEO and General
Counsel of that fact in writing, but in no event later than the next business
day or immediately if you already have been so contacted. Such notification
shall include a reasonable description of the content of the communication with
the legally or competitively adverse individual or entity.

 

Release of Claims

 

The
Company wants to be certain that this Agreement will resolve any and all
concerns that you might have and therefore requests that you carefully consider
the terms of this Agreement, including the release of claims set forth below
and, in that connection, encourages you to seek the advice of an attorney
before you sign this Agreement.

 

In
exchange for the Separation Pay to be provided you under this Agreement, you and your respective agents, heirs, legatees, successors and assigns
(collectively hereinafter “you”), except as set forth below, hereby
unconditionally and irrevocably release, remise, and forever discharge Cubist,(1)
and all persons acting by, through, under or in concert with Cubist, of and
from any and all actions, causes of actions, suits, debts, charges, complaints,
claims, liabilities, obligations, promises, agreements, controversies, damages,
and expenses (including attorney fees and costs actually incurred), of any
nature whatsoever, in law or equity (collectively “Claims”), which you had, now
have, or hereafter may have against the
Company from the beginning of time through the date on which you execute
this Agreement (the “Execution Date”).

 

Without
limiting the generality of the foregoing waiver and release of claims, you
specifically waive and release Cubist from any Claim under the Federal False
Claims Act, any state or local false claims act or any federal, state or local
qui tam provisions of false claims or false statements statutes, or any Claim
arising from or related to your employment relationship with the Company or the
termination thereof including, without limitation:

 

(a)           Claims under any federal, state
(including, without limitation, Massachusetts)
or local discrimination, fair employment practices or other employment related
statute, regulation or executive order (as they may have been amended through
the Execution Date) prohibiting discrimination or harassment based upon any
protected status including, without limitation, age, race, national origin,
gender, marital status, disability, veteran status or sexual orientation.  Without limitation, specifically included in
this paragraph are any Claims arising under the federal Age Discrimination in
Employment Act, the Older Workers Benefit Protection Act, the Civil Rights Acts
of 1866 and 1871, Title VII 

 

(1)           For purposes of this Section,
“Cubist” and/or the “Company” includes Cubist Pharmaceuticals, Inc., and
any of its divisions, affiliates (which means all persons and entities directly
or indirectly controlling, controlled by or under common control with Cubist
Pharmaceuticals, Inc.), subsidiaries and all other related entities, and
its and their directors, officers, employees, trustees, agents, successors and
assigns.

 

 

of
the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Equal Pay Act,
the Americans with Disabilities Act, the Worker Adjustment and Retraining
Notification Act and any similar statute;

 

(b)           Claims under any other federal, state
(including, without limitation, Massachusetts) or local employment-related
statute, regulation or executive order (as they may have been amended through
the Execution Date) relating to wages, hours or any other terms and conditions
of employment (including, without limitation, the Fair Labor Standards Act, the
National Labor Relations Act, the Employee Retirement Income Security Act of
1974, the Consolidated Omnibus Budget Reconciliation Act of 1985 and any
similar statute;

 

 (c)           Claims
under any federal, state (including, without limitation, Massachusetts) or
local common law theory including, without limitation, wrongful discharge, breach
of express or implied contract, promissory estoppel, unjust enrichment, breach
of a covenant of good faith and fair dealing, violation of public policy,
defamation, interference with contractual relations, intentional or negligent
infliction of emotional distress, invasion of privacy, misrepresentation,
deceit, fraud or negligence;

 

(d)          Claims under any federal, state
(including, without limitation, Massachusetts and Delaware) or local securities
law, including, without limitation, the Securities Act of 1933, as amended, the
Securities Exchange Act of 1934, as amended, and any similar statute; and

 

(e)          Claims arising under federal, state or local law.

 

Notwithstanding the
foregoing, this paragraph shall not release Cubist from any obligation
expressly set forth in this Agreement and shall not act as a waiver or release
of any Claims that you cannot by law waive or release, including, without
limitation, workers’ compensation claims. 
You acknowledge and agree that, but for providing this waiver and release
of Claims, you would not be receiving the Separation Pay being provided to you
under the terms of this Agreement.

 

You further agree, to
the fullest extent permitted by law, that you will not sue or commence any
proceeding (judicial or administrative), or participate in any action, suit or
proceeding (unless compelled by legal process or court order), against Cubist
with respect to any claim released by above.  You also warrant and
represent that as of the date you sign this Agreement, you have not taken or
engaged in any of the acts described in the foregoing sentences.  If,
notwithstanding the foregoing promises, you violate this provision, you shall
be required, to the maximum extent permitted by law, to indemnify and hold
harmless Cubist from and against any and all demands, assessments, judgments,
costs, damages, losses and liabilities, and attorneys’ fees and other expenses
which result from, or are incident to, such violation

 

It is the
Company’s desire and intent to make certain that you fully understand the
provisions and effects of this Agreement. 
To that end, you have been encouraged and given the opportunity to
consult with legal counsel for the purpose of reviewing the terms of this
Agreement.

 

Consistent with the federal discrimination laws,
nothing in this release shall be deemed to prohibit you from challenging the
validity of this release under the federal discrimination laws or from filing a
charge or complaint of employment related discrimination with the Equal
Employment Opportunity Commission (“EEOC”) or from participating in any
investigation or proceeding conducted by the EEOC.  Further, nothing 

 

 

in this release or Agreement
shall be deemed to limit the Company’s right to seek immediate dismissal of
such charge or complaint on the basis that your signing of this Agreement
constitutes a full release of any individual rights under the federal
discrimination laws, or to seek restitution to the extent permitted by law of
the economic benefits provided to you under this Agreement in the event you
successfully challenge the validity of this release and prevail in any claim
under the federal discrimination laws.

 

Acknowledgments;
Return Date

 

In signing this Agreement, you give the Company
assurance that you have had a full and reasonable opportunity to consider its
terms; that you have read and understood all of those terms; and that your
acceptance of this Agreement is freely and voluntarily given.

 

If the terms of this
Agreement are acceptable to you, please sign both copies of this Agreement and
return one copy to me no later than  twenty-one
(21) days from the date hereof.

 

Except as specifically described in this Agreement,
this Agreement constitutes the entire agreement between you and the Company and
replaces all prior and contemporaneous agreements, communications and
understandings, whether written or oral, with respect to your employment and
its termination and all related matters.

 

This Agreement will be binding upon and will inure
to the benefit of the Company, its successors and assigns, and you, your heirs,
personal representatives and assigns. 
This Agreement may be modified only by writing signed by you and the
Company.

 

Very
truly yours,

 

	
  /s/
  Maureen Powers

  	
   

  
	
  Maureen
  H. Powers

  
	
  Vice
  President, Human Resources

  

 

 

Accepted
and agreed:

 

 

	
  /s/ Christopher D.T. Guiffre

  	
   

  
	
  Signature of Employee

  

 

 

Date: 5/7/08Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”), is made and entered into as of July 31, 2007
by and between FIRST BUSEY CORPORATION, a Nevada corporation (“First Busey”), and Thomas Good (the “Executive”),
and shall be effective immediately upon the consummation of the merger (the “Merger”) contemplated by the Agreement and Plan of Merger By
and Between First Busey and Main Street Trust, Inc. (“Main Street”)
dated September 20, 2006 (the “Merger Agreement”),
whereby Main Street shall merge with and into First Busey, with First Busey
being the surviving corporation.

 

RECITALS

 

[A.]         The Executive
currently serves as Executive Vice President, Risk Management of First Busey.

 

[B.]         First Busey desires
to employ the Executive following the Merger as Executive Vice President, Risk
Management of First Busey and the Executive desires to be employed in such
position.

 

[C.]         First Busey and the
Executive have made commitments to each other on a variety of important issues
concerning Executive’s employment, including the performance that will be
expected of Executive, the compensation the Executive will be paid, how long
and under what circumstances Executive will remain employed and the financial
details relating to any decision that either First Busey or the Executive might
ever make to terminate this Agreement.

 

[D.]         First Busey and the
Executive desire to enter into this Agreement as of the Effective Time (as
defined in the Merger Agreement).

 

[E.]          First Busey
recognizes that circumstances may arise in which a change of control of First
Busey through acquisition or otherwise may occur (other than with respect to
the Merger) thereby causing uncertainty of employment without regard to the
competence or past contributions of the Executive which uncertainty may result
in the loss of valuable services of the Executive and First Busey and the
Executive wish to provide reasonable security to the Executive against changes
in the employment relationship in the event of any such change of control.

 

NOW, THEREFORE, in consideration
of the premises and of the covenants and agreements hereinafter contained and
the foregoing recitals, it is covenanted and agreed by and between the parties
hereto as follows:

 

AGREEMENTS

 

Section 1.              Term with
Automatic Renewal Provision.  The
term of this Agreement (the “Term”) and
Executive’s employment hereunder will be for a period of one (1) year  commencing as of the Effective Time.  This Agreement and the term of Executive’s
employment

 

 

hereunder will
automatically renew for one (1) additional year at the end of the then
existing term, unless either party provides written notice to the other party
not less then ninety (90) days prior to the end of the then existing Term, or
any extension thereof, that such party does not intend to extend the Term.

 

Section 2.              Employment.

 

(a)           Positions.
 Subject to the terms of this
Agreement, First Busey shall employ Executive, and Executive agrees to serve,
as Executive Vice President, Risk Management of First Busey or in such other
capacities with First Busey or its subsidiaries as the Board of Directors of
First Busey deems appropriate in its sole discretion, under the terms and
conditions set forth herein as of the Effective Date.

 

(b)           Duties.  Executive’s duties, authority and responsibilities
in such position include all duties, authority and responsibilities customarily
held by such officer of comparable companies, subject always to the charter and
bylaw provisions and the policies of First Busey and the directions of the President
and Chief Executive Officer of First Busey.

 

(c)           Care
and Loyalty.  Executive will
devote Executive’s best efforts and full business time, energy, skills and
attention to the business and affairs of First Busey and its subsidiaries, and
will faithfully and loyally discharge Executive’s duties to First Busey and its
subsidiaries.

 

(d)           Transfers.  The Board may, in its sole discretion, cause
Executive’s employment to be transferred from First Busey to any wholly owned
subsidiary, in which case all references in this Agreement to “First Busey” will be deemed to refer to such subsidiary.

 

Section 3.              Compensation.  First Busey will compensate Executive for
Executive’s services as follows during the term of this Agreement and Executive’s
employment hereunder:

 

(a)           Base
Compensation.  Executive’s annual
base salary will be one hundred fifty-five thousand dollars ($155,000) (“Base Salary”).  The
Board will review Executive’s Base Salary in October 2007 and thereafter
annually, beginning January 2009, during the term of this Agreement to
determine whether it should be maintained at its existing level or
increased.  Executive’s annual Base
Salary for any year after 2007 will not be lower than Executive’s Base Salary
for the immediately preceding year.

 

(b)           Discretionary
Performance Bonus.  First Busey
will consider Executive for a bonus each year based on performance criteria
established by the Board and/or Executive’s senior officers and any other
factors deemed by the Board to be appropriate. 
Bonuses will be awarded, if at all, in the sole discretion of the Board,
and nothing in this Agreement will require the payment of a bonus in any given
year.

 

(c)           Profit
Sharing Benefit.  Executive will
receive an annual profit sharing benefit based on the combined amount of Executive’s
annual Base Salary and, if applicable, Executive’s performance bonus after
Executive meets the eligibility requirements of the applicable profit sharing
plan.  The Board will decide the exact
amount of this benefit annually.  First
Busey will contribute this benefit for the account of Executive to First Busey’s
tax-qualified

 

2

 

retirement plans
and/or any nontax-qualified deferred compensation programs that First Busey may
elect to establish or maintain.  All such
benefit payments will be determined and governed by the terms of the particular
plan or program.  First Busey shall have
no obligation to continue to maintain any particular benefit plan or
arrangement and this benefit may be amended or terminated by First Busey at any
time for any reason, provided such termination applies to all other similarly
situated officers of First Busey.

 

(d)           Car
Allowance.  First Busey will
provide Executive with a monthly automobile allowance in the gross amount of
six hundred dollars ($600).  The
automobile allowance will be subject to annual review by the Board starting in
2009, and may be terminated, decreased, maintained or increased as the Board
deems appropriate.

 

(e)           Club
Membership.  First Busey expects
Executive to entertain clients and prospective clients of First Busey at the
country club to which Executive belongs, and thus will reimburse Executive’s
dues for Executive’s country club membership in an amount not to exceed five
hundred dollars ($500) per month and six thousand dollars ($6,000) per
year.  The reimbursement will be paid by
First Busey only upon the actual payment of country club membership dues made
by Executive.  This allowance will be
subject to annual review by the Board starting in 2009, and may be terminated,
decreased, maintained or increased as the Board deems appropriate.

 

(f)            Reimbursement
of Expenses.  First Busey will
reimburse Executive for all travel, entertainment and other out-of-pocket
expenses that Executive reasonably and necessarily incurs in the performance of
Executive’s duties.  Executive will
document these expenses to the extent necessary to comply with all applicable
laws and internal policies.

 

(g)           Other
Benefits.  Executive will be
entitled to participate in all plans and benefits that are now or later made
available by First Busey to its officers of equal or junior ranking generally.

 

(h)           Vacations.  Executive
will accrue at least twenty-five (25) days of paid vacation annually, subject
to First Busey’s general vacation policy.

 

(i)            Withholding.  Executive acknowledges that First Busey may
withhold any applicable federal, state or local withholding or other taxes from
payments that become due or allowances that are provided to Executive.

 

Section 4.              Termination.

 

(a)           Termination
Without Cause.  Either First
Busey or Executive may terminate this Agreement and Executive’s employment
hereunder for any reason by delivering written notice of termination to the
other party no less than ninety (90) days before the effective date of
termination, which date will be specified in the notice of termination.  First Busey may provide for an earlier date
of termination provided First Busey pays to Executive the Base Salary which
would have been earned during such notice period.  If Executive voluntarily terminates Executive’s
employment under this Agreement other than pursuant to Section 4(c) (Constructive
Discharge) or Section 4(d) (Change of
Control), then First Busey shall only be required to pay

 

3

 

Executive Base
Salary and unused vacation as shall have accrued through the effective date of
such termination and First Busey shall have no further obligations to
Executive.

 

(b)           Termination
for Cause.  First Busey may
terminate this Agreement and Executive’s employment hereunder for Cause by
delivering written notice of termination to Executive no less than thirty (30)
days before the effective date of termination. 
First Busey may provide for an earlier date of termination provided First
Busey pays to Executive the Base Salary which would have been earned during
such notice period.  “Cause” for termination will exist if:  (i) Executive engages in one or more
unsafe and unsound banking practices or material violations of a law or regulation
applicable to First Busey or its subsidiaries, any repeated violations of a
policy of First Busey after being warned in writing by the Board and/or a
senior officer not to violate such policy, any single violation of a policy of
First Busey if such violation materially and adversely affects the business or
affairs of First Busey, or a direction or order of the Board and/or one of
Executive’s senior officers; (ii) Executive engages in a breach of
fiduciary duty or act of dishonesty involving the affairs of First Busey; (iii) Executive
is removed or suspended from banking pursuant to Section 8(e) of the
Federal Deposit Insurance Act or any other applicable State or Federal law; (iv) Executive
commits a material breach of Executive’s obligations under this Agreement; or (v) Executive
fails to perform Executive’s duties to First Busey with the degree of skill,
care or competence expected by the Board and/or Executive’s senior
officers.  If Executive’s employment is
terminated pursuant to this Section 4(b),
then First Busey shall only be required to pay Executive such Base Salary and
unused vacation as shall have accrued through the effective date of such
termination and First Busey shall have no further obligations to Executive.

 

(c)           Constructive
Discharge.  Within thirty (30)
days of the occurrence of an event or condition that Executive believes would
constitute a Constructive Discharge, Executive shall provide First Busey with
written notice detailing the facts to support Executive’s claim of Constructive
Discharge.  If the facts or conditions
exist and are not cured or corrected by First Busey within thirty (30) days of
Executive’s written notice, then this Agreement and Executive’s employment
hereunder shall terminate on the thirtieth (30th) day following Executive’s
written notice.  “Constructive
Discharge” means the occurrence of any one or more of the following,
without Executive’s prior consent:  (i) Executive
is not reelected to or is removed from the position set forth herein (other
than by promotion to a higher position); (ii) First Busey fails to vest
Executive with or removes from Executive the duties, responsibilities,
authority or resources that Executive reasonably needs to competently perform
Executive’s duties in such position; (iii) First Busey notifies Executive
that it is terminating this Agreement pursuant to Section 4(a);
(iv) First Busey changes the primary location of Executive’s employment to
a place that is more than fifty (50) miles from Executive’s primary employment
location on the Effective Time; or (v) First Busey otherwise commits a
material breach of its obligations under this Agreement, and in all cases,
First Busey fails to correct within thirty (30) days after Executive gives
First Busey written notice of the foregoing breach.

 

(d)           Termination
upon Change of Control.  Following
a Change of Control, this Agreement and Executive’s employment hereunder may be
terminated in accordance with Section 4(a),
(b), or (c) by
delivering written notice of termination to the other party no less than thirty
(30) days before the effective date of termination.

 

4

 

(i)            A “Change of Control” will be deemed to have occurred if:  (A) any person (as such term is defined
in Section 13(d) or 14(d) of the Securities Exchange Act of
1934, as amended (the “1934 Act”))
acquires beneficial ownership (within the meaning of Rule 13d-3
promulgated under the 1934 Act) of more than fifty percent (50%) of the
combined voting power of the then outstanding voting securities of First Busey;
or (B) the individuals who were members of the Board of Directors of First
Busey on the Effective Time (the “Current Board Members”)
cease for any reason (other than the reasons specified in Section 4(d)(ii) below)
to constitute a majority of the Board of First Busey or its successor; however,
if the election or the nomination for election of any new director of First
Busey or its successor is approved by a vote of a majority of the individuals
who are Current Board Members, such new director shall, for the purposes of
this Section 4(d)(i), be considered a
Current Board Member; or (C) the consummation of (1) a merger or
consolidation of First Busey and the stockholders of First Busey immediately
before such merger or consolidation do not, as a result of such merger or
consolidation, own, directly or indirectly, more than fifty percent (50%) of
the combined voting power of the then outstanding voting securities of the
entity resulting from such merger or consolidation in substantially the same
proportion as their ownership of the combined voting power of the outstanding
securities of First Busey immediately before such merger or consolidation; or (2) a
complete liquidation or dissolution or an agreement for the sale or other
disposition of all or substantially all of the assets of First Busey.

 

(ii)           Notwithstanding and
in lieu of Section 4(d)(i), a Change of
Control will not be deemed to have occurred: 
(A) solely because more than fifty percent (50%) of the combined
voting power of the then outstanding voting securities of First Busey are
acquired by (1) a trustee or other fiduciary holding securities under one
or more employee benefit plans maintained for employees of First Busey or its
subsidiaries, or (2) any person pursuant to the will or trust of any
existing stockholder of First Busey, or who is a member of the immediate family
of such stockholder, or (3) any corporation which, immediately prior to
such acquisition, is owned directly or indirectly by the stockholders in the
same proportion as their ownership of stock immediately prior to such
acquisition; (B) if Executive agrees in writing that the transaction or
event in question does not constitute a Change of Control for the purposes of
this Agreement; or (C) with respect to the Merger.

 

(e)           Termination
upon Disability.  First Busey
will not terminate this Agreement and Executive’s employment hereunder if
Executive becomes disabled within the meaning of First Busey’s then current
employee disability program or, at First Busey’s election, as determined by a
physician selected by First Busey, unless as a result of such disability,
Executive is unable to perform Executive’s duties with the requisite level of
skill and competence for a period of six (6) consecutive months.  Thereafter, First Busey may terminate this
Agreement for Cause in accordance with Section 4(b)(v).

 

(f)            Termination
upon Death.  This Agreement will
terminate if Executive dies during the term of this Agreement, effective on the
date of Executive’s death.  Any payments
that are owing to Executive under this Agreement or otherwise at the time of
Executive’s death will be made to whomever Executive may designate in writing
as Executive’s beneficiary, or absent such a designation, to the executor or
administrator of Executive’s estate. 
Termination of this Agreement under this Section 4(f) shall
be deemed to be a termination in accordance with Section 4(b)(v).

 

5

 

(g)           Severance
Benefits.  First Busey will pay
severance benefits to Executive as follows:

 

(i)            If this Agreement
and Executive’s employment hereunder are terminated by First Busey without
Cause pursuant to Section 4(a),
or by reason of Executive’s Constructive Discharge pursuant to Section 4(c), First Busey will pay Executive an amount
equal to the sum of (A) Executive’s then applicable annual Base Salary,
plus (B) the amount of the most recent performance bonus that First Busey
paid to Executive pursuant to Section 3(b),
plus (C) the amount contributed by First Busey on behalf of Executive to
First Busey’s tax-qualified retirement plans (other than Internal Revenue Code Section 401(k) contributions)
for the calendar year immediately preceding Executive’s termination of
employment (collectively, the “Severance Payment”).  First Busey will also reimburse Executive for
up to twelve (12) months for continuing coverage under First Busey’s health
insurance pursuant to the health care continuation rules of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”),
provided that Executive remains eligible for such COBRA continuation for such
period following the effective date of termination, provided further that to
the extent Executive paid a portion of the premium for such benefit while
employed Executive shall continue to pay such portion during the period of
continuation hereunder and any period of continuation hereunder shall be
credited against the continuation rights under COBRA and Executive will be
required to complete all COBRA election and other forms.

 

(ii)           Notwithstanding Section 4(g)(i) and in lieu of any payments
provided for thereunder, if this Agreement and Executive’s employment are
terminated within one (1) year after the occurrence of a Change of Control
either by Executive pursuant to Section 4(c) (Constructive
Discharge) or by First Busey or its successor pursuant to Section 4(a) (Termination
Without Cause), First Busey or its successor will pay Executive an amount equal
to two (2) times the Severance Payment.  In this event, First Busey or its successor
will also reimburse Executive for twenty-four (24) months for continuing
coverage under First Busey’s health insurance pursuant to COBRA, provided that
Executive remains eligible for such COBRA continuation for such period
following the effective date of termination, provided further that to the
extent Executive paid a portion of the premium for such benefit while employed
Executive shall continue to pay such portion during the period of continuation
hereunder and any period of continuation hereunder shall be credited against
the continuation rights under COBRA and Executive will be required to complete
all COBRA election and other forms.

 

(iii)         All payments that
become due to Executive under this Section 4(g) will
be made in substantially equal installments in accordance with First Busey’s
regular payroll practices over the one (1) year period (provided that if
payment is being made pursuant to Section 4(g)(ii),
payment shall be made over two (2) years) commencing on the first regular
pay date immediately succeeding, and administratively practicable, the
expiration of the seven (7) day revocation period set forth in the general
release required by Section 4(j).  First Busey will be obligated to make all
payments that become due to Executive under this Section 4(g) whether
or not Executive obtains other employment following termination or takes steps
to mitigate any damages that Executive claims to have sustained as a result of
termination.  The payments and other
benefits provided for in this Section 4(g) are
intended to supplement any compensation or other benefits that have accrued or
vested with respect to Executive or for Executive’s account as of the effective
date of termination.

 

6

 

(iv)          First Busey and Executive
intend that no portion of any payment under this Agreement, or payments to or
for the benefit of Executive under any other agreement or plan, be deemed to be
an “Excess Parachute Payment” as defined in
Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), or its successors. 
It is agreed that the present value of any payments to or for the
benefit of Executive in the nature of compensation, as determined by the legal
counsel or certified public accountants for First Busey in accordance with Section 280G(d)(4) of
the Code, receipt of which is contingent on the Change of Control of First
Busey, and to which Section 280G of the Code applies (in the aggregate “Total Payments”), shall be reduced, as necessary, such that
the payment will not exceed an amount equal to one dollar ($1.00) less than the
maximum amount which First Busey may pay without loss of deduction under Section 280G(a) of
the Code.

 

(v)            First Busey may
elect to defer any payments that may become due to Executive under this Section 4(g) if, at the time the payments become
due, First Busey is not in compliance with any regulatory-mandated minimum
capital requirements or if making the payments would cause First Busey’s
capital to fall below such minimum capital requirements.  In this event, First Busey will resume making
the payments as soon as it can do so without violating such minimum capital
requirements.

 

(h)           Payment
Equalization.  If First Busey is
paying, or in the case of a lump sum, has paid, Executive a Severance Benefit
under Section 4(g), then Executive
agrees to not seek or apply for unemployment compensation under the Illinois
Unemployment Act 820 ILCS 405/100 et seq. or any other state or federal
unemployment compensation law at any time prior to a date following the final
payment made hereunder or with respect to the period during which such payments
were or were to be made until the final payment is made.

 

(i)            Specified
Employee.  If at the time of any
payment hereunder: (a) Executive is considered to be a “specified employee” as that term is or may be, defined under
Code Section 409A(a)(2)(B); and (b) such payment is required to be
treated as deferred compensation under Section 409A of the Code, then, to
the extent required by Section 409A of the Code, payments may be delayed
to the date which is six (6) months after the date of separation from
service.

 

(j)            Release.  As a condition to First Busey’s
obligation to pay any Severance Benefit under Section 4(g),
Executive agrees that Executive will execute a general release of First Busey
and its affiliates, substantially in the form attached hereto as Exhibit A.

 

Section 5.              Confidentiality.  Executive acknowledges that the nature of
Executive’s employment will require that Executive produce and have access to records,
data, trade secrets and information that are not available to the public
regarding First Busey and its subsidiaries and affiliates (“Confidential Information”). 
Executive will hold in confidence and not directly or indirectly
disclose any Confidential Information to third parties unless disclosure
becomes reasonably necessary in connection with Executive’s performance of
Executive’s duties hereunder, or the Confidential Information lawfully becomes
available to the public from other sources, or Executive is authorized in
writing by First Busey to disclose it, or Executive is required to make
disclosure by a law or pursuant to the authority of any administrative agency
or judicial body.  All Confidential
Information and all other records, files, documents and other

 

7

 

materials or copies
thereof relating to the business of First Busey or any of its subsidiaries or
affiliates that Executive prepares or uses will always be the sole property of
First Busey.  Executive will promptly
return all originals and copies of such Confidential Information and other
records, files, documents and other materials to First Busey if Executive’s
employment with First Busey is terminated for any reason.

 

Section 6.              Non-Competition
Covenant.

 

(a)           Restrictive
Covenant.  Executive agrees that,
for a period of one (1) year after the termination of this Agreement,
Executive will not, without First Busey’s prior written consent, directly or
indirectly Compete with First Busey.  For
the purposes of Section 6(a):

 

(i)            “Compete” means directly or indirectly owning, managing,
operating or controlling a Competitor; or within the Restricted Area, directly
or indirectly serving as an employee, officer or director of or a consultant to
a Competitor, or soliciting or inducing any officer or employee that reported
directly to Executive or agent of First Busey to terminate employment with
First Busey or any of its subsidiaries and become employed by a Competitor, or
by soliciting or inducing any customer, wherever located, of First Busey or its
subsidiary banks with whom Executive had contact during Executive’s employment
to modify or terminate its relationship with First Busey or its subsidiary
banks.

 

(ii)           “Competitor” means any person, firm, partnership,
corporation, trust or other entity that owns, controls or is a bank, savings
and loan association, credit union or similar financial institution or
financial planning, brokerage or investment firm (collectively, a “Financial Institution”) that is physically located and
conducts lending, deposit or wealth management activities within the fifty (50)
mile radii of the primary First Busey office from which or for which Executive
provided services (the “Restricted Area”).

 

(b)           Successors.  In the event that a successor to First Busey  succeeds to or assumes First Busey’s rights and obligations
under this Agreement, Section 6(a) will
apply only to the primary service areas of First Busey as they existed
immediately before the succession or assumption occurred and will not apply to
any of the successor’s other offices.

 

(c)           Investment
Exception.  Section 6(a) will
not prohibit Executive from directly or indirectly owning or acquiring any
capital stock or similar securities that are listed on a securities exchange or
quoted on the NASDAQ and do not represent more than five percent (5%) of the
outstanding capital stock of any Financial Institution.

 

(d)           Injunctive
Relief.  Executive agrees that a
violation of this Section 6
would result in direct, immediate and irreparable harm to First Busey, and in
such event, agrees that First Busey, in addition to its other right and
remedies, would be entitled to injunctive relief enforcing the terms and
provisions of this Section 6.  This Section 6(d) is
not subject to the provisions of Section 7(c) below.

 

Section 7.              Indemnity; Other
Protections.

 

(a)           Indemnification.  First Busey will indemnify Executive
(and, upon Executive’s death, Executive’s heirs, executors and administrators)
to the fullest extent permitted 

 

8

 

by law against all
expenses, including reasonable attorneys’ fees, court and investigative costs,
judgments, fines and amounts paid in settlement (collectively, “Expenses”) reasonably incurred by Executive in connection
with or arising out of any pending, threatened or completed action, suit or
proceeding in which Executive may become involved by reason of Executive’s
having been an officer or director of First Busey.  The indemnification rights provided for
herein are not exclusive and will supplement any rights to indemnification that
Executive may have under any applicable bylaw or charter provision of First
Busey, or any resolution of First Busey, or any applicable statute.

 

(b)           Advancement
of Expenses.  In the event that
Executive becomes a party, or is threatened to be made a party, to any pending,
threatened or completed action, suit or proceeding for which First Busey is
permitted or required to indemnify Executive under this Agreement, any
applicable bylaw or charter provision of First Busey, any resolution of First
Busey, or any applicable statute, First Busey will, to the fullest extent
permitted by law, advance all Expenses incurred by Executive in connection with
the investigation, defense, settlement, or appeal of any threatened, pending or
completed action, suit or proceeding, subject to receipt by First Busey of a
written undertaking from Executive to reimburse First Busey for all Expenses
actually paid by First Busey to or on behalf of Executive in the event it shall
be ultimately determined that First Busey cannot lawfully indemnify Executive
for such Expenses, and to assign to First Busey all rights of Executive to
indemnification under any policy of directors’ and officers’ liability
insurance to the extent of the amount of Expenses actually paid by First Busey
to or on behalf of Executive.

 

(c)           Litigation.  Unless precluded by an actual or potential
conflict of interest, First Busey will have the right to recommend counsel to
Executive to represent Executive in connection with any claim covered by this Section 7. 
Further, Executive’s choice of counsel, Executive’s decision to contest
or settle any such claim, and the terms and amount of the settlement of any
such claim will be subject to First Busey’s prior written approval, which
approval shall not be unreasonably withheld by First Busey.

 

Section 8.              General
Provisions.

 

(a)           Successors;
Assignment.  This Agreement will
be binding upon and inure to the benefit of Executive, First Busey and their
respective personal representatives, successors and assigns.  For the purposes of this Agreement, any
successor or assign of First Busey shall be deemed to be “First Busey.”  First Busey will require any successor or
assign of First Busey or any direct or indirect purchaser or acquiror of all or
substantially all of the business, assets or liabilities of First Busey,
whether by transfer, purchase, merger, consolidation, stock acquisition or
otherwise, to assume and agree in writing to perform this Agreement and First
Busey’s obligations hereunder in the same manner and to the same extent as
First Busey would have been required to perform them if no such transaction had
occurred.

 

(b)           Entire
Agreement; Survival.  This
Agreement constitutes the entire agreement between Executive and First Busey
concerning the subject matter hereof, and supersedes all prior negotiations,
undertakings, agreements and arrangements with respect thereto, whether written
or oral, specifically including the Prior Employment Agreement.  The provisions of this Agreement will be
regarded as divisible and separate; if any provision is ever

 

9

 

declared invalid
or unenforceable, the validity and enforceability of the remaining provisions
will not be affected.  In the event any
provision of this Agreement (including, but not limited to, any provision of
the covenant not to compete set forth in Section 6)
is held to be overbroad as written, such provision shall be deemed to be
amended to narrow the application of such provision to the extent necessary to
make such provision enforceable according to applicable law.  This Agreement may not be amended or modified
except by a writing signed by Executive and First Busey.  The parties acknowledge and agree that the
obligations under Section 5
(Confidentiality), Section 6
(Non-Competition Covenant) and Section 7
(Indemnity; Other Protections) shall survive the termination of this Agreement.
The subject matter and language of this Agreement has been the subject of
negotiations between the parties and/or their respective counsel, and this
Agreement has been jointly prepared by their respective counsel.  Accordingly, this Agreement shall not be
construed against either party on the basis that this Agreement was drafted by
such party or its counsel.

 

(c)           Governing
Law and Enforcement.  This
Agreement will be construed and the legal relations of the parties hereto shall
be determined in accordance with the laws of the State of Illinois without
reference to the law regarding conflicts of law.

 

(d)           Arbitration.  Any dispute or controversy arising under
or in connection with this Agreement shall be settled exclusively by
arbitration conducted at a location selected by First Busey within fifty (50)
miles from Champaign-Urbana, Illinois, in accordance with the rules of the
American Arbitration Association.

 

(e)           Prevailing
Party Legal Fees.  Should either
party institute any action or proceeding to enforce this Agreement or any
provision hereof, or for damages by reason of any alleged breach of this
Agreement or of any provision hereof, or for a declaration of rights hereunder,
the prevailing party in any such action or proceeding shall be entitled to
receive from the other party all costs and expenses, including reasonable
attorneys’ fees, incurred by the prevailing party in connection with such
action or proceeding.

 

(f)            Waiver.  No waiver by either party at any time of any
breach by the other party of, or compliance with, any condition or provision of
this Agreement to be performed by the other party, shall be deemed a waiver of
any similar or dissimilar provisions or conditions at the same time or any
prior or subsequent time.

 

(g)           Notices.  Notices pursuant to this Agreement shall be
in writing and shall be deemed given when received; and, if mailed, shall be
mailed by United States registered or certified mail, return receipt requested,
postage prepaid; and if to First Busey, addressed to the principal headquarters
of First Busey, attention: President and Chief Executive Officer; or, if to
Executive, to the address set forth below Executive’s signature on this
Agreement, or to such other address as the party to be notified shall have
given to the other.

 

[Remainder of Page Intentionally Left Blank]

 

10

 

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first above written.

 

	
  FIRST BUSEY CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Douglas C. Mills

  	
   

  	
  /s/ Thomas Good

  
	
   

  	
  Douglas C. Mills

  	
   

  	
  Thomas Good

  
	
   

  	
  Chairman of the Board, President and

  	
   

  	
   

  
	
   

  	
  Chief Executive Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Address

  

 

11

 

EXHIBIT A

 

AGREEMENT
AND RELEASE

 

This Agreement and Release (this “Agreement”) is
made and entered into as of this          
day of                ,
         , by and between                                  
(hereinafter referred to as “Executive”) and
                                 ,
(hereinafter referred to as the “First Busey”).  In consideration of the mutual covenants
hereinafter set forth, the parties hereto agree as follows:

 

Section 1.              Separation.  The parties agree that Executive’s
employment with the First Busey shall end effective                                        .

 

Section 2.              Payment and
Benefits.  In consideration of
the promises made in this Agreement, the First Busey has agreed to pay
Executive the compensation and benefits as provided in the Employment Agreement
entered into between Executive and the First Busey on                                  .  Executive expressly agrees, understands and
acknowledges that the pay provided under this Section 2 constitutes an
amount in excess of that which Executive would be entitled without entering
into this Agreement.  Executive
acknowledges that the above pay is being provided by the First Busey as
consideration for Executive entering into this Agreement, including the release
of claims and waiver of rights provided in Section 3.

 

Section 3.              Release of Claims
and Waiver of Rights.  Executive,
on Executive’s own behalf and that of Executive’s heirs, executors, attorneys,
administrators, successors and assigns, fully releases and discharges the First
Busey, its predecessors, successors, subsidiaries, affiliates and assigns, and
its and their directors, officers, trustees, employees, and agents whether in
their individual or official capacities and the current and former trustees or
administrators of any retirement or other benefit plan applicable to the
employees or former employees of the First Busey, in their official and individual
capacities from any and all liability, claims and demands, including but not
limited to, claims, demands or actions arising under the First Busey’s policies
and procedures, whether formal or informal, United States or State of Illinois
Constitutions; the Civil Rights Act of 1964, as amended; the Civil Rights Act
of 1991; the Illinois Human Rights Act; the Employee Retirement Income Security
Act of 1974, as amended; the Age Discrimination in Employment Act; Executive
Order 11246; and any other federal, state or local statute, ordinance or
regulation with respect to employment, and in addition thereto, from any other
claims, demands or actions with respect to Executive’s employment with the
First Busey or other association with the First Busey through the date of this
Agreement, including, but not limited to, the termination of Executive’s
employment with the First Busey, any right of payment for disability or any
other statutory or contractual right of payment or any claim for relief on the
basis of any alleged tort or breach of contract under the common law of the
State of Illinois or any other state, including, but not limited to,
defamation, intentional or negligent infliction of emotional distress, breach
of the covenant of good faith and fair dealing, promissory estoppel, and
negligence.  Executive represents that
Executive has not assigned or filed any claim, demand, action or charge against
the First Busey.

 

A-1

 

Section 4.              Mutual
Non-Disparagement.  The
First Busey and Executive agree that, at all times following the signing of
this Agreement, they shall not engage in any vilification of the other, and
shall refrain from making any false, negative, critical or disparaging
statements, implied or expressed, concerning the other, including, but not
limited to, management style, methods of doing business, the quality of
products and services, role in the community, or treatment of employees.  Executive acknowledges that the only persons
whose statements may be attributed to the First Busey for purposes of this
Agreement not to make disparaging statements shall be each member of the Board
of Directors of the First Busey and each of Executive’s senior officers.  The parties further agree to do nothing that would
damage the other’s business reputation or good will.

 

Section 5.              Representations
by Executive.  Executive warrants
that Executive is legally competent to execute this Agreement and that
Executive has not relied on any statements or explanations made by the First
Busey or its attorney.  Moreover,
Executive hereby acknowledges that Executive has been afforded the opportunity
to be advised by legal counsel regarding the terms of this Agreement, including
the release of all claims and waiver of rights set forth in Section 3.  Executive acknowledges that Executive has
been offered at least [twenty-one (21)]
days to consider this Agreement.  After
being so advised, and without coercion of any kind, Executive freely,
knowingly, and voluntarily enters into this Agreement.  [Executive further
acknowledges that Executive may revoke this Agreement within seven (7) days
after Executive has signed this Agreement and further understands that this
Agreement shall not become effective or enforceable until seven (7) days
after Executive has signed this Agreement as evidenced by the date set forth
below Executive’s signature (the “Effective Date”).  Any revocation must be in writing and
directed to the First Busey,                            ,
         , Illinois       ,
Attention:                    .  If sent by mail, any revocation must be
postmarked within the seven (7)-day period and sent by certified mail, return
receipt requested.]  In
addition, Executive represents that Executive has returned all property of the
First Busey that is in Executive’s possession, custody or control, including
all documents, records and tangible property that are not publicly available
and reflect, refer or relate to the First Busey or the First Busey’s business
affairs, operations or customers, and all copies of the foregoing.

 

Section 6.
             No
Admissions.  The First
Busey denies that it or any of its employees or agents have taken any improper
action against Executive, and Executive agrees that this Agreement shall not be
admissible in any proceeding as evidence of improper action by the First Busey
or any of their employees or agents.

 

Section 7.              Confidentiality.  Executive and the First Busey agree to
keep the existence and the terms of this Agreement confidential, except for
Executive’s immediate family members or their legal or tax advisors in
connection with services related hereto and except as may be required by law or
in connection with the preparation of tax returns.

 

Section 8.              Non-Waiver.  The First Busey’s waiver of a breach of this
Agreement by Executive shall not be construed or operate as a waiver of any
subsequent breach by Executive of the same or of any other provision of this
Agreement.

 

A-2

 

IN WITNESS WHEREOF,
the undersigned have set their hands the day and year set forth below their
respective signatures.

 

 

[                                                                      ]

 

 

	
  By:

  	
  \s\ Douglas C. Mills

  	
   

  	
  \s\ Thomas M. Good

  
	
  Title:  President
  and Chief Executive Officer

  	
   

  	
  [Executive]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  
						

 

A-3

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