Document:

Exhibit 10.1

 EXHIBIT 10.1 
  

 
 November 18, 2014 

By Hand 
 David Miller 

63 Harvard Avenue Unit #2 
 Brookline, MA 02446 

Dear Dave: 
 This separation letter (“Separation
Agreement”) is to confirm the termination of your employment with Cabot Corporation (“Cabot” or the “Company”) effective November 21, 2014 (the “Separation Date”). As a result of the termination of your
employment, you are entitled to (a) salary through November 21, 2014, (b) payment for accrued vacation time as reflected on the books of the Company as of November 21, 2014, and (c) certain rights to continue medical and
dental coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), details of which are being provided to you under separate cover. In addition, Cabot will pay to you a 2014 Short Term Incentive payment of
$258,000, reduced by any deductions and withholding that Cabot determines are required by law or otherwise, prior to payment to you, to be paid in accordance with the Company’s customary practice. The items set forth above will be provided to
you regardless of whether or not you decide to accept the additional payments and benefits offered by Cabot in this Separation Agreement. 
 Except as
otherwise stated herein, this Separation Agreement does not modify or supersede any obligations that you have to Cabot by law or otherwise, and you understand that you must return all written and other materials belonging to Cabot (whether hardcopy,
in electronic form or otherwise) and in your possession or control, together with all copies of such materials, upon termination of your employment. 

I invite you to consider the following offer of additional payments and benefits in exchange for a general release of claims. You should consult with an
attorney before deciding whether to accept this offer. You may accept this offer only by signing (with signature notarized) a copy of this letter where indicated below and returning it to Robby D. Sisco at Cabot Corporation, 2 Seaport Lane, Boston,
MA 02210, so that Mr. Sisco receives it not later than December 9, 2014, and by not thereafter revoking this agreement; otherwise this offer shall be null and void. Our offer is as follows: 

 

	1.	Cabot will pay you a total of $615,000.00 over the eighteen (18) month period commencing November 22, 2014. These payments will only occur after the expiration of the seven-day revocation period identified
below, and only if such revocation rights are not timely exercised (the “Effective Date”). The first severance payment will be on the first regular pay date following the Effective Date (the “Initial Payment Date”) and will
consist of the prorated severance amounts accrued from November 22, 2014 to the Initial Payment Date. Thereafter, all severance payments will be payable in equal bi-weekly installments. Any such severance payments paid to you under this
paragraph shall be reduced by any deductions and withholding that Cabot determines are required by law or otherwise, prior to payment to you. Cabot agrees that it will answer accurately any questions put to it by any relevant state agency and that
it will not contest your application for unemployment benefits on the basis of the circumstances of your separation from employment. Cabot agrees to acknowledge to any relevant state agency, upon request, that you were required to sign a release of
claims in order to receive severance benefits. 

 

 
  

	2.	Cabot will provide you with outplacement services by a service provider designated by Cabot, in an amount not to exceed $60,000, further details of which will be provided to you. 

 

	3.	If you elect to continue medical and/or dental coverage in accordance with COBRA (as outlined in the materials being provided to you), then from November 22, 2014 until the earlier of (i) May 31, 2016, or
(ii) the termination of such coverage in compliance with COBRA, you will pay the same cost of such medical and/or dental coverage as paid from time-to-time by active employees of the Company generally; Cabot shall pay the balance of such cost.
After May 31, 2016, Cabot will cease paying the balance of such COBRA cost. At such time, you will be responsible for paying the entire cost of the COBRA coverage for the remaining amount of time (if any) you are legally entitled to it. Cabot
reserves the right to amend, modify, terminate or discontinue the medical and dental coverage or benefits provided to its employees or former employees, or the costs associated therewith, at any time. Likewise, if the benefits described in this
paragraph are in violation of any laws or regulations that go into effect subsequent to the Effective Date of this Separation Agreement, in whole or in part, Cabot reserves the right to amend, modify, terminate or discontinue the benefits described
in this paragraph in accordance with such laws or regulations. 

  

	4.	During the twelve-month period following the Separation Date, the Company will reimburse the costs you incur for the financial planning benefit provided to you by Urban Financial Advisory Corp. at an amount not to
exceed $10,000. In all events, reimbursement of any amounts under this paragraph shall be made consistent with the requirements of Treasury Regulation Section 1.409A-3(i)(1)(iv). 

  
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	5.	Cabot agrees that the period of time during which you shall be able to exercise any vested options to purchase Company common stock held by you at the Separation Date shall be extended from three months following the
Separation Date to eighteen months following such Separation Date. Except as specifically modified by the preceding sentence, any such exercise of vested stock options by you shall all be in accordance with the terms of the Cabot Corporation 2009
Long-Term Incentive Plan and the terms of the various stock option awards. 

  

	6.	In exchange for the payments and benefits provided to you under this Separation Agreement, to which you acknowledge you would not otherwise be entitled, you, on your own behalf and that of your heirs, executors,
administrators, beneficiaries, personal representatives and assigns, and any other person or entity claiming through or under you, agree that the Separation Agreement shall be in complete and final settlement of any and all causes of action, rights
or claims, whether known or unknown, that you have had in the past, now have, or might now have as of the date upon which you sign and execute this Separation Agreement, in any way related to, connected with or arising out of your employment or its
termination, whether (a) sounding in tort, contract or otherwise, (b) pursuant to Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Worker Adjustment and Retraining Notification Act or any similar state
law, the Older Workers Benefit Protection Act, the Age Discrimination in Employment Act, or the fair employment practices statutes of the state or states in which you have provided services to the Company, (c) all claims for wages, bonuses,
vacation pay, severance, overtime, back or front pay or all other forms of compensation, or (d) pursuant to any other federal, state or local law, regulation or other requirement. You hereby release and forever discharge the Company and its
subsidiaries and other affiliates and all of their respective past, present and future directors, shareholders, officers, members, managers, general and limited partners, insurers, employees, agents, representatives, successors and assigns, any
welfare or retirement plans maintained by or on behalf of Cabot or its subsidiaries, affiliates, or successors, or any of the trustees or administrators thereof, and all others connected with any of the foregoing, both individually and in their
official capacities (collectively, the “Releasees”), from any and all such causes of action, rights or claims, whether known or unknown, that you have had in the past, now have, or might now have as of the date upon which you sign and
execute this Separation Agreement, in any way related to, connected with or arising out of your employment or its termination. 

Notwithstanding the foregoing, this release does not include and will not preclude a claim for or with respect to: (a) salary payable through the
Separation Date, or accrued, unused 

  
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vacation time as recorded on the Company’s books as of the Separation Date, the receipt of which you acknowledge; (b) vested benefits under any employee benefit plan, (c) your
COBRA rights, (d) payments and benefits under this Separation Agreement; and (e) any claim which, as a matter of law, cannot be released by private agreement. 
  

	 	(a)	Notwithstanding the generality of the foregoing, nothing herein is intended to or shall preclude you from filing a complaint and/or charge with any appropriate federal, state, or local government agency and/or
cooperating with said agency in its investigation. Nonetheless, you acknowledge that you shall not be entitled to receive any relief, recovery, or monies in connection with any complaint or charge brought against the Releasees, without regard as
to who brought said complaint or charge. 

  

	7.	You affirm and warrant that you have not filed any complaints, charges or claims for relief against Cabot with any local, state or federal court or administrative agency. You also affirm that you have been paid and/or
have received all leave (paid or unpaid), compensation, wages, bonuses, commissions, and/or benefits to which you may be entitled and that no other leave (paid or unpaid), compensation, wages, bonuses, commissions and/or benefits are due to you,
except as expressly provided in this Separation Agreement. On or before the Separation Date, Cabot will provide you with a lump sum payment equal to the vacation days you had accrued but not used as reflected on the books of the Company as of
November 21, 2014. You acknowledge that, upon receiving said vacation pay, you will have received pay for all work you have performed for the Company during the current payroll period, to the extent not previously paid, as well as pay, at your
final base rate of pay, for the vacation days you had earned, but not used, all as of the Separation Date, determined in accordance with Company policy and as reflected on the books of the Company. You will not continue to earn vacation or other
paid time off after the Separation Date. You further affirm that you have not been retaliated against for reporting any allegations of wrongdoing by the Releasees, including any allegations of fraud or impropriety. 

 

	8.	You understand and agree that, other than your rights under COBRA, your participation in all employee benefit plans of the Company will end as of the Separation Date, in accordance with the terms of those plans. You
understand and agree that your rights and obligations with respect to any shares of stock or stock options granted or gifted to you by Cabot which are vested on or as of the Separation Date shall be governed by the applicable plan and any agreements
or other requirements applicable to those shares or options. You understand and agree that the following Long Term Incentive grants are hereby forfeited by you pursuant to the terms of such awards: 

 

											
	 Award Grant Date
	 	Time Based Stock
Units	 	 	Performance Based
Stock Units	 	  	 Stock Options

	 Nov. 8, 2013
	 	 	5,039	  	 	 	5,879	  	  	10,675 options with exercise price of $47.62
	 Nov. 9, 2012
	 	 	6,808	  	 	 	7,943	  	  	8,988 options with exercise price of $35.25

  
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 To the extent you are in possession of any stock unit and/or stock option award certificates for any
shares of stock and/or stock options granted to you which will not be vested on or as of the Separation Date, you further agree to return, no later than the Separation Date, all such certificates in your possession. 

 

	9.	You agree that you will continue to keep confidential and protect Confidential Information, as defined herein, and that you will not, directly or indirectly, disclose it to others or use it for any purpose. As used in
this Separation Agreement, “Confidential Information” means: 

  

	 	(a)	any and all information of Cabot (including, for purposes of this paragraph 9, Cabot, its affiliates and/or subsidiaries) of a confidential and/or proprietary nature, including, but not limited to: technology;
inventions (whether or not patentable); trade secrets; samples; compositions; techniques and equipment; methods; manufacturing processes and processing conditions; engineering data; drawings; specifications; formulae; plant design and layout;
products and product applications; development plans and new business opportunities; experimental work; commercial and developmental operations; the identities and requirements of customers and prospective customers; customer lists; suppliers and
supplier lists; the identities of other individuals or third parties with whom Cabot has or with which Cabot is seeking to develop a business relationship and the nature and details of any such relationship or potential relationship; software and
networks; business, marketing and any other plans and strategies; sales, pricing, raw materials and cost information; financial information; compensation, benefits and related incentives; and any other information relating to Cabot and its
businesses to the extent that such information has not been published beyond confidential and/or proprietary customer, supplier or business partner communications or is not publicly available; and, 

  
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	 	(b)	any and all information received confidentially by Cabot in the conduct of its business from any customer or other third party (e.g. supplier or business partner) of a confidential and/or proprietary nature, including,
but not limited to: technology; inventions (whether or not patentable); trade secrets; samples; compositions; performance targets and criteria; techniques and equipment; methods; manufacturing processes and processing conditions; engineering data;
drawings; specifications; plant design and layout; products and product applications; development plans and new business opportunities; experimental work; commercial and developmental operations; customers and customer lists; suppliers and supplier
lists; software and networks; business and marketing plans and strategies; pricing and costs information; financial information; and any other information relating to such customer or third party and its businesses. 

 

	10.	In exchange for the payments and benefits provided to you under this Separation Agreement, and to protect the Confidential Information, customer goodwill and other legitimate business interests of Cabot (including, for
purposes of this paragraph 10, Cabot, its affiliates and/or subsidiaries), you agree that: 

  

	 	(a)	for a period of two (2) years following the Separation Date, you will not, directly or indirectly (either alone or in association with any person, firm, corporation, or other entity) work for or on behalf of,
become an owner, partner or investor in, consult with, or otherwise provide any services to any third party in any area or activity that is competitive with any business or research and development activity of Cabot in which you have been involved
or to which you have been exposed during your employment at Cabot; 

  

	 	(b)	for a period of two (2) years following the Separation Date, you will not directly or indirectly (either alone or in association with any person, firm, corporation, or other entity) solicit, contact or call upon,
or attempt to do the same, any customer of Cabot with whom you had contact during your employment with Cabot in an effort to induce such customer to purchase goods or services offered by Cabot from a party other than Cabot; and, 

 

	 	(c)	for a period of two (2) years following the Separation Date, you will not directly or indirectly (either alone or in association with any person, firm, corporation, or other entity) hire, recruit, solicit, induce,
or attempt to do the same, any employee or independent contractor of or supplier to Cabot who is employed by or providing services or products to Cabot as of or prior to November 21, 2014, to leave the employ of Cabot or otherwise cease to make
his/her/its services or products available to Cabot. 

  
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	11.	You acknowledge that you have carefully read and considered all the terms and conditions of this Separation Agreement, including the restraints imposed upon you pursuant to paragraphs 9 and 10. You understand and agree
that these restraints are necessary for the reasonable and proper protection of the legitimate business interests of Cabot (including, for purposes of this paragraph 11, Cabot, its affiliates and/or subsidiaries), and that a breach by you of any one
of these restraints would cause irreparable harm and damage to Cabot. You further acknowledge that damages would not be an adequate remedy for a breach or threatened breach by you of any one of the covenants contained in paragraphs 9 and 10. You
therefore agree that Cabot shall be entitled to the enforcement of this Separation Agreement by injunction, specific performance or other equitable relief, without need of posting a bond and without prejudice to any other rights and remedies that
Cabot may have under this Separation Agreement or under applicable law. You further agree that in the event that any provision of this Agreement shall be determined by any court of competent jurisdiction to be unenforceable by reason of its being
extended over too great a time, too large a geographic area or too great a range of activities, such provision shall be deemed to be modified to permit its enforcement to the maximum extent permitted by law. In the event of any alleged breach of
this Agreement, you hereby consent and submit to the jurisdiction of the federal and state courts in and of the Commonwealth of Massachusetts, and this Separation Agreement shall be governed by and interpreted in accordance with the laws of the
Commonwealth of Massachusetts, without regard to the conflict of laws principles thereof. 

  

	12.	 You hereby agree that all inventions, discoveries and improvements conceived or made by you during your employment with Cabot (including, for purposes of this
paragraph 12, Cabot, its affiliates and/or subsidiaries) that (i) relate to the business or activities of Cabot or (ii) were conceived or developed by you during normal working hours or using Cabot’s facilities, belong to Cabot,
whether or not reduced to writing or practice during your employment with Cabot. You hereby assign to Cabot or its nominee all your rights and interest in any such inventions, discoveries and improvements and agree to keep protected the interest of
Cabot or its nominee in any such inventions, discoveries and improvements. You are also assigning to Cabot or its nominee all copyrights and reproduction rights to any material prepared by you during your employment with Cabot that (i) relate
to the business activities of Cabot or (ii) were conceived or developed by you during normal working hours or using Cabot’s facilities. To the extent that you cannot assign and transfer any of the foregoing rights or interest, then you
hereby grant Cabot an irrevocable, worldwide, fully paid-up, royalty-free, exclusive license, with the right to sublicense through multiple tiers, to make, use, sell, improve, reproduce, distribute, perform, display, transmit, manipulate in any
manner, create derivative works based upon, and otherwise exploit or utilize in any manner the aforesaid inventions, discoveries, improvements and materials. If within the twelve month period following the Separation Date, you disclose to

  
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anyone or file a patent application with respect to any invention, discovery or improvement relating to any subject matter with which your work for Cabot was concerned, such invention, discovery
or improvement shall be presumed to have been made by you during your employment with Cabot unless you can provide clear and convincing evidence to the contrary. 

  

	13.	You agree to offer reasonable cooperation to the Company hereafter with respect to all matters arising during or related to your employment with the Company, including, but not limited to, all matters in connection with
any governmental investigation, litigation, arbitration or other proceeding which may have arisen as of, or which may arise following, the Separation Date, and the filing and prosecution of any patent application(s) worldwide. Cabot will reimburse
you your out-of-pocket expenses incurred in complying with Company requests hereunder, provided that such expenses are authorized by the Company in advance. 

  

	14.	Subject to paragraph 6(a), you agree not to make negative, disparaging or derogatory comments to anyone about Cabot (including Cabot, its subsidiaries, affiliates and successors), its businesses, its management
(including without limitation its shareholders, officers and directors) its employees and/or products of any of the foregoing. You further agree that you will not otherwise do or say anything that could disrupt the good morale of Cabot’s
employees or harm Cabot’s interests or reputation, except that, at the conclusion of the non-compete period, you may engage in reasonable competitive activities, subject to your obligations of confidentiality and non-use provided in paragraph 9
herein. 

  

	15.	This Separation Agreement does not affect, modify or alter your rights to be indemnified by Cabot under Section 14 of Cabot’s By-laws and/or Article Eight of Cabot’s Restated Certificate of Incorporation.
Furthermore, this Separation Agreement does not affect, modify or alter your individual rights as an officer or former officer of Cabot to insurance coverage under Cabot’s directors’ and officers’ insurance program. 

 

	16.	You hereby represent and acknowledge that in executing this Separation Agreement, you do not rely and have not relied upon any representation or statement (other than the express terms of this Separation Agreement) made
by Cabot or by any agents, representatives or attorneys of Cabot with regard to the subject matter, basis or effect of this Separation Agreement. This Separation Agreement constitutes the entire agreement between you and Cabot and, except as for
agreements and plans as referenced and provided in this Separation Agreement, replaces all prior and contemporaneous agreements, communications and understandings, whether written or oral, with respect to your employment at Cabot and its termination
and all related matters. In addition, your rights and obligations under Cabot’s benefit plans, including but not limited to the Deferred Compensation and Supplemental Retirement Plan, shall be governed by the terms of such plans.

  
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	17.	This Separation Agreement may not be modified, altered or changed except upon express written consent of both parties wherein specific reference is made to this Separation Agreement. 

 

	18.	The parties agree that neither this Separation Agreement nor the furnishing of any consideration herein shall be deemed or construed at anytime for any purposes as an admission by Cabot of any liability or unlawful
conduct of any kind. 

  

	19.	You agree that any changes or modifications made to the terms of this Separation Agreement, whether material or immaterial, do not restart or affect in any manner the period during which you are entitled to consider
this Separation Agreement (the “consideration period”). You further agree that you have been given at least 21 calendar days within which to consider the Separation Agreement and that the consideration period will end on December 9,
2014 (though you may sign this Separation Agreement prior to December 9, 2014 if you voluntarily choose to do so), that you fully understand and have voluntarily agreed to all of the terms of this Separation Agreement and that Cabot has advised
you to consult with an attorney concerning this Separation Agreement (including without limitation the release of claims contained herein). 

  

	20.	In signing this Separation Agreement, you represent and warrant that you have returned to the Company any and all non-public documents, materials and information (whether in hardcopy, on electronic media or otherwise)
related to Company business (whether present or otherwise) and all keys, access cards, credit cards, computer hardware and software, telephones and telephone-related equipment and all other property of the Company in your possession or control.
Further, you represent and warrant that you have not retained any copy of any non-public Company documents, materials or information (whether in hardcopy, on electronic media or otherwise). Recognizing that your employment with the Company has
ended, you agree that you will not, for any purpose, attempt to access or use any Company computer or computer network or system, including without limitation its electronic mail system. Further, you acknowledge that you have disclosed to the
Company all passwords necessary or desirable to enable the Company to access all information which you have password-protected on any of its computer equipment or on its computer network or system. 

 

	21.	 THIS SEPARATION AGREEMENT SPECIFICALLY WAIVES ALL RIGHTS AND CLAIMS YOU MAY HAVE UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT AND THE OLDER WORKERS’
BENEFIT PROTECTION ACT. In accordance with these statutes, the Company encourages you to consult with counsel 

  
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prior to your execution of this Agreement. You acknowledge that you have had ample opportunity to consult with counsel prior to your execution of this Separation Agreement, and were encouraged
and advised in writing to do so. By signing this Separation Agreement, you acknowledge and agree that you are not waiving any rights or claims under the Age Discrimination in Employment Act which may arise after this Separation Agreement is
executed. Your waiver of claims under the Age Discrimination in Employment Act is in exchange for consideration that is in addition to anything of value to which you were already entitled. By signing this Separation Agreement, you acknowledge that
you have carefully read and fully understand all of its provisions, and knowingly and voluntarily intend to be legally bound by all of the terms in this Separation Agreement. You further acknowledge that you have relied solely and completely upon
your own judgment and/or the advice of counsel in entering into this Separation Agreement. 

 If the terms of this Separation Agreement
are acceptable to you, please sign (signature notarized) and return a copy of this letter to Robby D. Sisco at Cabot Corporation, 2 Seaport Lane, Boston, MA 02210, within 21 days, that is, by December 9, 2014. Any changes to the terms of
conditions of this Separation Agreement (whether material or immaterial) will not restart the running of the 21-day period. If you sign this Separation Agreement prior to the end of this 21-day period, you certify that you knowingly and voluntarily
decided to sign it after considering it for less than 21 days, and your decision to do so was not induced by the Company through fraud, misrepresentation, or a threat to withdraw or alter the offers herein. 

If you accept the foregoing offer, you shall have the right to revoke this Separation Agreement by delivering or sending to Mr. Sisco at the
address above written notice of revocation so that your notice of revocation is received by Mr. Sisco within seven calendar days after the date that this letter is signed by you. If you revoke within this time period, this Separation Agreement
shall be null and void in its entirety and you will not be entitled to any additional payments and benefits set forth in this Separation Agreement. Otherwise this Separation Agreement shall be binding upon you, your heirs and representatives and
shall inure to the benefit of, and be binding upon, Cabot and its successors and assigns. 
 Notwithstanding anything to the contrary, Cabot shall not
be required to make any payments or provide any other benefits to you pursuant to this Separation Agreement unless and until your right of revocation has expired unexercised. Any payments or benefits that would otherwise be due hereunder prior to
expiration of the revocation period shall be paid or provided by Cabot within a reasonable time after your right of revocation has expired unexercised. This Separation Agreement shall be treated as a contract under seal for purposes of Massachusetts
law. 

  
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 Notwithstanding anything in this Separation Agreement to the contrary, the Company shall have the right
to terminate the severance benefits described in this Agreement at any time if the Company determines that you have breached any of the terms and conditions of this Separation Agreement (including without limitation your obligations under paragraphs
9 through 14), but such termination of severance benefits shall not relieve you of your obligations and undertakings under this Separation Agreement (including without limitation your obligations under paragraphs 9 through 14 and your release of
claims under this Separation Agreement). 
  

			
	Very truly yours,
	
	CABOT CORPORATION
		
	By:	 	 /s/ Robby D. Sisco

		 	Robby D. Sisco
		 	Senior Vice President

  
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 Having carefully read and fully understanding the provisions and effects of this Separation Agreement, the foregoing
offer by Cabot Corporation is knowingly and voluntarily accepted and agreed to this 8th day of December, 2014. 
  

	
	 /s/ David Miller

	David Miller

  

			
	COMMONWEALTH OF MASSACHUSETTS        	  	) ss.:
		  	)
		  	)
	COUNTY OF SUFFOLK	  	)

 On this 8th day of December, 2014, before me, the undersigned
notary public, personally appeared the above-named David Miller, proved to me through satisfactory evidence of identification, which were personally known, to be the person whose name is signed immediately above, and acknowledged to me that he
signed it voluntarily for its stated purpose. 
  

	
	 /s/    Deborah A.
Rocco        

	Notary Public, Commonwealth of Massachusetts
	
	 Deborah A. Rocco

	Notary’s name (printed):
	
	 August 13, 2021

	Notary’s commission expires:

  
 12EXHIBIT 10.1 Form of Stock Option Grant Agreement (Incentive Stock Options)

CASCADE BANCORP
2008 PERFORMANCE INCENTIVE PLAN
STOCK OPTION GRANT AGREEMENT

This Stock Option Grant Agreement (the “Agreement”) is entered into as of February 3, 2015 (“Grant Date”) by and between Cascade Bancorp, an Oregon corporation (the “Company”), and Employee Name, an employee of the Company (the “Participant”), for the award of an Option.  The terms used herein that are defined in the Company’s 2008 Performance Incentive Plan (the “Plan”) shall have the same meanings assigned to them in the Plan.
The award of an Option to the Participant is made pursuant to Section 6(b)(i) of the Plan and the Participant desires to accept the grant subject to the terms and conditions of this Agreement. 
In consideration of the mutual covenants and agreements set forth in this Agreement, the parties agree to the following. 
		
	1.
	Grant and Terms of Option.  

a.Grant.  The Company grants to the Participant under the Plan an     Option to purchase XX,XXX shares of Stock, subject to the restrictions, terms and conditions set forth in this Agreement (the “Option”).   This grant shall expire on February 3, 2025.  The Option is intended to be an ISO for tax purposes, and is contingent on shareholder approval of amendments to the Plan dated October 28, 2014.

b.Acceleration on Death or Disability. If the Participant ceases to be an employee of the Company or a Subsidiary by reason of the Participant’s death or physical disability, all outstanding but unvested Options shall become immediately vested, and all vested but unexercised Options shall expire on the earlier of: (i) twelve (12) months following the date of such immediate vesting or (ii) the expiration date set forth in Section 1.a. above. The term “disability” means the Participant: (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months; or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under the Company’s long term disability plan covering employees of the Company. Medical determination of Disability may be made by either the Social Security Administration or by the provider of the long term disability plan covering employees of the Company, provided that the definition of “disability” applied under such plan complies with the requirements of the preceding sentence. Upon the request of the Plan Administrator, the Participant must submit proof to the Plan Administrator of the Social Security Administration’s or the provider’s determination.

c.Acceleration of Vesting on a Change in Control or Business Combination Followed by a Termination of Employment. In the event the Participant’s employment with the Company is terminated (for reasons other than death, disability or termination for “Cause,” as defined below) in conjunction with a Change in Control of the Company (as defined below), all outstanding but unvested Options shall become immediately vested. For purposes of this Agreement, a “Change in Control” of the Company shall mean the occurrence of any of the following events:

i.Any Person becomes the “beneficial owner” (as defined in Rule 13d(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; 

ii.The consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets, or all or substantially all of the assets of its Subsidiary; or 

iii.The consummation of a merger or consolidation of the Company or its Subsidiary with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation; or 

iv.A "business combination" that would not otherwise constitute a Change in Control as defined above, but in conjunction with which the Participant’s employment with the Company, its Subsidiary, the successor entity or its parent is terminated. For this purpose, a "business combination" means a share exchange, merger or consolidation of the Company or its Subsidiary with any other corporation, even if such share exchange, merger or consolidation would result in the voting securities of the Company or its Subsidiary outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or its Subsidiary or such surviving entity or its parent outstanding immediately after such share exchange, merger or consolidation.

v.A business combination (as defined above) or sale of stock of the Company or its Subsidiary, if in connection with such transaction the persons who were directors of the Company before such transaction cease to constitute at least a majority of the board of directors of the Company or any successor entity.

In addition, the term “Cause” will mean a termination of the Participant’s employment for one or more of the following reasons:
vi.A determination by the Company that the Participant has committed an act or acts constituting (A) a felony or other crime, whether a felony or a misdemeanor, involving moral turpitude, dishonesty or theft, (B) dishonesty or disloyalty that is harmful to the Company, or (C) fraud;

vii. The determination by the Company that the Participant (A) has engaged in actions or omissions that would constitute unsafe or unsound banking practices, or (B) has failed to follow the lawful and reasonable directives, after written notice to the Participant by the Company specifying in reasonable detail such failure;

viii. The determination by the Company that the Participant has engaged in gross misconduct in the course and scope of employment with the Company, including indecency, immorality, gross insubordination, dishonesty, unlawful harassment or discrimination, use of illegal drugs, or fighting; or

ix.    In the event the Participant is prohibited from engaging in the business of banking by any governmental regulatory agency having jurisdiction over the Company.

Notwithstanding the foregoing, unless otherwise determined by the Board, no Change in Control shall be deemed to have occurred for purposes of this Agreement if (A) the Participant acquires (other than on the same basis as all other holders of the Company Stock) an equity interest in an entity that acquires the Company in a Change in Control otherwise described under subparagraph (iii) above, or (B) the Participant is part of group that constitutes a Person which becomes a beneficial owner of Stock in a transaction that otherwise would have resulted in a Change in Control under subparagraph (i) above. For purposes of this Agreement, the term “Person” shall mean and include any individual, corporation, partnership, group, association or other “person,” as such term is used in Section 14(d) of the Exchange Act, other than the Company, a wholly owned subsidiary of the Company or any employee benefit plan(s) sponsored by the Company.   Also, if the Participant has an individual employment agreement that covers the topic of accelerated vesting of equity awards in conjunction with or following a Change in Control, the provisions of the employment agreement will govern, unless the provision of this Agreement are more favorable to the Participant.

d.Conflicts.  This Agreement is subject to the terms and conditions of the Plan.  In the event of any conflict between this Agreement and the Plan, the Plan shall control, provided that the terms of the Plan 

shall not be considered an enlargement of any benefits under this Agreement.  This Agreement is subject to any rule promulgated pursuant to the Plan by the Committee and communicated to the Participant in writing.

2.Price Per Option.  The exercise price for each share of Stock that may be purchased under the Option is $4.79, which is the Fair Market Value of the Stock on the Grant Date. 

3.Time Vesting Requirements.  The Option awarded under this Agreement shall initially be 100% unvested and subject to forfeiture.  Subject to Sections 1(b), the Option shall vest 50% on February 3, 2018, 25% on February 3, 2019, and 25% on February 3, 2020 (the “Vesting Date”) if the Participant is an employee of the Company (or its Subsidiary) on the Vesting Date and has served as an employee of the Company (or its Subsidiary) continuously from the Grant Date to the Vesting Date.

4.Forfeiture of Options on Termination of Service. If the Participant ceases to be an employee of the Company (or its Subsidiary) for any reason that does not result in acceleration of vesting pursuant to Sections 1(b), the Participant shall forfeit immediately the unvested portion of the Option and shall forfeit after ninety days the outstanding vested portion of the Option, and in the event of forfeiture the Participant shall have no right to receive the related Stock. 

5.Taxes and Tax Withholding.  The Company shall be entitled to withhold from any delivery of Stock hereunder any income or other tax withholding obligations arising as a result of this Award, in amounts determined by the Company. 

6.Participant’s Representations.  The Participant acknowledges the receipt of a copy of the Plan, and represents that he or she is familiar with the terms and provisions thereof and hereby accepts this Agreement subject to all the terms and provisions thereof.

7.Miscellaneous. 

a.Entire Agreement. This Agreement and the Plan constitute the entire agreement of the parties with regard to the subjects hereof.

b.Interpretation of the Plan and the Agreement. The Committee of the Board (the “Administrator”), shall have the sole authority to interpret the provisions of this Agreement and the Plan and all determinations by it shall be final and conclusive.

c.Electronic Delivery. The Recipient consents to the electronic delivery of any prospectus and any other documents relating to this Award in lieu of mailing or other form of delivery. 

d.Rights and Benefits. The rights and benefits of this Agreement shall inure to the benefit of and be enforceable by the Company’s successors and assigns and, subject to the restrictions on transfer of this Agreement, be binding upon the Recipient’s heirs, executors, administrators, successors and assigns. 

e.Further Action. The parties agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.

f.Governing Law. This Agreement and the Plan will be interpreted under the laws of the state of Oregon, exclusive of choice of law rules. 

g.Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original. 

CASCADE BANCORP

                        
Peggy Biss, EVP & Chief Administrative Officer

PARTICIPANT

________________________________                            
Employee Name                Date

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