Document:

ex_128838.htm

Exhibit 4.2

 

WARRANT TO PURCHASE COMMON STOCK

 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS. THIS INSTRUMENT IS ISSUED SUBJECT TO THE RESTRICTIONS ON TRANSFER CONTAINED HEREIN. THE SECURITIES REPRESENTED BY THIS INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH THIS INSTRUMENT. ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH THIS INSTRUMENT WILL BE VOID.

 

WARRANT

to purchase

__________

Shares of Common Stock of

 

FIRSTATLANTIC FINANCIAL HOLDINGS, INC.

 

	No. _____	Issue Date: November 19, 2010

Name of Warrantholder: ____________________

 

1.     Definitions. Unless the context otherwise requires, when used herein the following terms shall have the meanings indicated.

 

“Affiliate” has the meaning ascribed to it in the Stock Purchase Agreement.

 

“Board of Directors” means the board of directors of the Company, including any duly authorized committee thereof.

 

“Business day” means any day except Saturday, Sunday and any day on which banking institutions in the State of Florida generally are authorized or required by law or other governmental actions to close.

 

“Charter” means, with respect to any Person, its certificate or articles of incorporation, articles of association, or similar organizational document.

 

“Common Stock” means the common stock, par value $0.01 per share, of the Company.

 

“Company” means FirstAtlantic Financial Holdings, Inc., a Florida corporation.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

 

 

 

 

“Exercise Price” means $10.00 per share of Common Stock.

 

“Expiration Time” has the meaning set forth in Section 3.

 

“Issue Date” means November 19, 2010.

 

“Person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act.

 

“Regulatory Approvals” with respect to the Warrantholder, means, to the extent applicable and required to permit the Warrantholder to exercise this Warrant for shares of Common Stock and to own such Common Stock without the Warrantholder being in violation of applicable law, rule or regulation, the receipt of any necessary approvals and authorizations of, filings and registrations with, notifications to the Office of Thrift Supervision, the Federal Deposit Insurance Corporation or any other federal, state, county, local or other governmental or regulatory agencies, authorities (including self-regulatory authorities), instrumentalities, commissions, boards or bodies having jurisdiction over the Company, the Warrantholder or any Affiliate of the Company or the Warrantholder.

 

“Shares” has the meaning set forth in Section 2.

 

“Stock Purchase Agreement” means the Stock Purchase Agreement of even date herewith between the Company and Warrantholder.

 

“Warrantholder” has the meaning set forth in Section 2.

 

“Warrant” means this Warrant, issued pursuant to the Stock Purchase Agreement.

 

2.     Number of Shares; Exercise Price. This certifies that, for value received, _______________, or its permitted assigns (the “Warrantholder”) is entitled, upon the terms and subject to the conditions hereinafter set forth, to acquire from the Company, in whole or in part, after the receipt of all applicable Regulatory Approvals, if any, up to __________ fully paid and nonassessable shares of Common Stock at a purchase price per share of Common Stock equal to the Exercise Price. The number of shares of Common Stock (the “Shares”) and the Exercise Price are subject to adjustment as provided herein, and all references to “Common Stock,” “Shares” and “Exercise Price” herein shall be deemed to include any such adjustment or series of adjustments.

 

3.     Exercise of Warrant; Term. Subject to Section 2, to the extent permitted by applicable laws and regulations, the right to purchase the Shares represented by this Warrant is exercisable, in whole or in part by the Warrantholder, at any time or from time to time after the execution and delivery of this Warrant by the Company on the date hereof, but in no event later than 5:00 p.m., Eastern time on the tenth anniversary of the Issue Date (the “Expiration Time”), by (A) the surrender of this Warrant and Notice of Exercise annexed hereto, duly completed and executed on behalf of the Warrantholder, at the principal executive office of the Company located at 4500 Salisbury Road, Suite 490, Jacksonville, Florida 32216 (or such other office or agency of the Company in the United States as it may designate by notice in writing to the Warrantholder at the address of the Warrantholder appearing on the books of the Company), and (B) payment of the Exercise Price for the Shares thereby purchased by tendering in cash, by certified or cashier’s check payable to the order of the Company, or by wire transfer of immediately available funds to an account designated by the Company.

 

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If the Warrantholder does not exercise this Warrant in its entirety, the Warrantholder will be entitled to receive from the Company within a reasonable time, and in any event not exceeding three business days, a new warrant in substantially identical form for the purchase of that number of Shares equal to the difference between the number of Shares subject to this Warrant and the number of Shares as to which this Warrant is so exercised. Notwithstanding anything in this Warrant to the contrary, the Warrantholder hereby acknowledges and agrees that its exercise of this Warrant for Shares is subject to the condition that the Warrantholder will have first received any applicable Regulatory Approvals, if any, which are required to exercise this Warrant.

 

4.     Issuance of Shares; Authorization. Certificates for Shares issued upon exercise of this Warrant will be issued in such name or names as the Warrantholder may designate and will be delivered to such named Person or Persons within a reasonable time, not to exceed three business days after the date on which this Warrant has been duly exercised in accordance with the terms of this Warrant, together with cash, as provided below in Section 5, in respect of any fractional Shares otherwise issuable upon such surrender. The Company hereby represents and warrants that any Shares issued upon the exercise of this Warrant in accordance with the provisions of Section 3 will be duly and validly authorized and issued, fully paid and nonassessable and free from all taxes, liens and charges (other than liens or charges created by the Warrantholder, income and franchise taxes incurred in connection with the exercise of the Warrant or taxes in respect of any transfer occurring contemporaneously therewith). The Company agrees that the Shares so issued will be deemed to have been issued to the Warrantholder as of the close of business on the date on which this Warrant and payment of the Exercise Price are delivered to the Company in accordance with the terms of this Warrant, notwithstanding that the stock transfer books of the Company may then be closed or certificates representing such Shares may not be actually delivered on such date. The Company will at all times reserve and keep available, out of its authorized but unissued Common Stock, solely for the purpose of providing for the exercise of this Warrant, the aggregate number of shares of Common Stock then issuable upon exercise of this Warrant at any time. The Company will use reasonable best efforts to ensure that the Shares may be issued without violation of any applicable law or regulation or of any requirement of any securities exchange on which the Shares are listed or traded.

 

5.     No Fractional Shares or Scrip. No fractional Shares or scrip representing fractional Shares shall be issued upon any exercise of this Warrant. If any fraction of a Share would be issuable on the exercise of this Warrant in full or in part, the Company shall pay an amount in cash equal to the then current market price per Share multiplied by such fraction.

 

6.     No Rights as Stockholders; Transfer Books. This Warrant does not entitle the Warrantholder to any voting rights or other rights as a stockholder of the Company prior to the date of exercise hereof. The Company will at no time close its transfer books against transfer of this Warrant in any manner which interferes with the timely exercise of this Warrant.

 

7.     Charges, Taxes and Expenses. Issuance of certificates for Shares to the Warrantholder upon the exercise of this Warrant shall be made without charge to the Warrantholder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company.

 

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8.     Restrictions on Transfer. Warrantholder will not transfer, sell, assign or otherwise dispose of this Warrant or any portion thereof, except as follows:(i) to any Affiliate of Warrantholder under common control with Warrantholder’s ultimate parent, general partner, managing member, or investment advisor (any such transferee shall be included in the term “Warrantholder”), (ii) to any limited partner or shareholder of Warrantholder, but in each case only if the transferee agrees in writing for the benefit of the Company (with a copy thereof to be furnished to the Company) to be bound by the terms of this Warrant, or (iii) to any Person with the prior written consent of the Company, which shall not be unreasonably withheld, conditioned or delayed.

 

9.     Exchange and Registry of Warrant. This Warrant is exchangeable, upon the surrender hereof by the Warrantholder to the Company, for a new warrant or warrants of like tenor and representing the right to purchase the same aggregate number of Shares. The Company shall maintain a registry showing the name and address of the Warrantholder as the registered holder of this Warrant. This Warrant may be surrendered for exchange or exercise in accordance with its terms, at the office of the Company, and the Company shall be entitled to rely in all respects, prior to written notice to the contrary, upon such registry.

 

10.     Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and in the case of any such loss, theft or destruction, upon receipt of a bond, indemnity or security reasonably satisfactory to the Company, or, in the case of any such mutilation, upon surrender and cancellation of this Warrant, the Company shall make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same aggregate number of Shares as provided for in such lost, stolen, destroyed or mutilated Warrant.

 

11.     Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a business day, then such action may be taken or such right may be exercised on the next succeeding day that is a business day.

 

12.     Adjustments and Other Rights. For so long as the Warrantholder holds this Warrant or any portion thereof, if any event occurs that, in the good faith judgment of the Board of Directors of the Company, would require adjustment of the Exercise Price or number of Shares into which this Warrant is exercisable in order to fairly and adequately protect the purchase rights of the Warrants in accordance with the essential intent and principles of the Stock Purchase Agreement and this Warrant, then the Board of Directors shall make such adjustments in the application of such provisions, in accordance with such essential intent and principles, as shall be reasonably necessary, in the good faith opinion of the Board of Directors, to protect such purchase rights as aforesaid.

 

Whenever the Exercise Price or the number of Shares into which this Warrant is exercisable shall be adjusted as provided in this Section 12, the Company shall forthwith file at the principal office of the Company a statement showing in reasonable detail the facts requiring such adjustment and the Exercise Price that shall be in effect and the number of Shares into which this Warrant shall be exercisable after such adjustment, and the Company shall also cause a copy of such statement to be sent by mail, first class postage prepaid, to each Warrantholder at the address appearing in the Company’s records.

 

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13.     No Impairment. The Company will not, by amendment of its Charter or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Warrant and in taking of all such action as may be necessary or appropriate in order to protect the rights of the Warrantholder.

 

14.     Governing Law. This Warrant will be governed by and construed in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of Florida applicable to contracts made and to be performed entirely within such State. Each of the Company and the Warrantholder agrees (a) to submit to the exclusive jurisdiction and venue of the United States District Court for the Northern District of Florida for any civil action, suit or proceeding arising out of or relating to this Warrant or the transactions contemplated hereby, and (b) that notice may be served upon the Company at the address in Section 18 below and upon the Warrantholder at the address for the Warrantholder set forth in the registry maintained by the Company pursuant to Section 9 hereof. To the extent permitted by applicable law, each of the Company and the Warrantholder hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to the Warrant or the transactions contemplated hereby or thereby.

 

15.     Binding Effect. This Warrant shall be binding upon any successors or assigns of the Company.

 

16.     Amendments. This Warrant may be amended and the observance of any term of this Warrant may be waived only with the written consent of the Company and the Warrantholder.

 

17.     Prohibited Actions. The Company agrees that it will not take any action which would entitle the Warrantholder to an adjustment of the Exercise Price if the total number of shares of Common Stock issuable after such action upon exercise of this Warrant, together with all shares of Common Stock then outstanding and all shares of Common Stock then issuable upon the exercise of all outstanding options, warrants, conversion and other rights, would exceed the total number of shares of Common Stock then authorized by its Charter.

 

18.     Notices. Any notice, request, instruction or other document to be given hereunder by any party to the other will be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, (b) on the first business day following the date of dispatch if delivered by a recognized next day courier service, or (c) on the third business day following the date of mailing if delivered by registered or certified mail, return receipt requested, postage prepaid. All notices hereunder shall be delivered as set forth in Section 7.05 of the Stock Purchase Agreement, or pursuant to such other instructions as may be designated in writing by the party to receive such notice.

 

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19.   Entire Agreement. This Warrant and the forms attached hereto contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior and contemporaneous arrangements or undertakings with respect thereto.

 

[Remainder of page intentionally left blank]

 

 

 

 

 

 

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by a duly authorized officer.

 

Dated: November 19, 2010

 

	 	 COMPANY: FIRSTATLANTIC FINANCIAL HOLDINGS, INC.
	 	 	 	 
	 	By:  	 	 
	 	 	Name:   Mitchell W. Hunt, Jr.	 
	 	 	Title:     President and Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	 	Attest:	 
	 	 	 	 
	 	By:  	 	 
	 	 	Name:  Timothy S. Ayers	 
	 	 	Title:     Executive Vice-President, Secretary and	 
	 	 	  Chief Financial Officer	 

 

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[Form of Notice of Exercise]

 

Date:                 

 

	
			TO:

				
			FIRSTATLANTIC FINANCIAL HOLDINGS, INC.

			Attention: Tim Ayers

			4500 Salisbury Road

			Suite 490

			Jacksonville, Florida 32216

			

 

	
			RE:

				
			Election to Purchase Common Stock

			

 

The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby agrees to subscribe for and purchase the number of shares of the Common Stock set forth below covered by such Warrant. The undersigned, in accordance with Section 3 of the Warrant, hereby agrees to pay the aggregate Exercise Price for such shares of Common Stock in the manner set forth below. A new warrant evidencing the remaining shares of Common Stock covered by such Warrant, but not yet subscribed for and purchased, if any, should be issued in the name set forth below.

 

	Number of Shares of Common Stock	 	 
	 	 	 
	Aggregate Exercise Price:	 	 

 

	 	Holder:	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:ex_128619.htm

Exhibit 10.5

 

EXECUTIVE Employment AGREEMENT 

(Robert B. Aland)

 

THIS EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of December 21, 2017 (the “Effective Date”) by and between Robert B. Aland (“Executive”) and NATIONAL BANK OF COMMERCE, a national banking association (“NBC” or the “Bank”).

 

RECITALS

 

WHEREAS, Executive currently serves as the Executive Vice President and Market President (Atlanta) of NBC; and

 

WHEREAS, the Bank and Executive desire to enter an employment agreement to memorialize the terms of Executive’s employment.

 

NOW, THEREFORE, in consideration of the mutual covenants, promises and obligations set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

 

AGREEMENT

 

1.      Effective Date; Term. Upon the terms and subject to the conditions set forth in this Agreement, the Bank hereby employs Executive, and Executive hereby accepts such employment, for the term commencing on the Effective Date and, unless otherwise earlier terminated pursuant to Section 5 hereof, ending at 11:59 p.m. Central Time on the fifth anniversary of the Effective Date (the “Term”). Upon expiration of the Term, this Agreement shall terminate, unless extended or renewed by the parties in writing, and Executive’s employment shall continue on an “at will” basis.

 

2.      Position and Duties; Extent of Service.

 

(a)     Position and Duties. Executive is hereby employed on the Effective Date as the Executive Vice President and Market President (Atlanta) of NBC. In his capacity as the Executive Vice President and Market President (Atlanta) of NBC, Executive shall perform for the Bank all duties incident to such position, subject to the supervision and direction of Richard Murray, IV, the President and Chief Executive Officer of NBC, or his designee(s). Subject to Executive’s right to terminate employment for Good Reason (as defined in Section 5(d)(ii) hereof), Executive shall perform such other services for the Bank or its affiliated companies as the Bank from time to time shall direct, and the duties, services and reporting relationship of Executive and the title of Executive’s position may be extended, reduced, re-assigned, curtailed or modified by the Bank from time to time without breaching or affecting the enforceability of the terms of this Agreement.

 

 

 

 

(b)     Extent of Service. Executive shall use Executive’s best efforts in, and devote Executive’s full time, attention and energy to, the Bank’s business, and Executive shall not conduct any other activities that are or may be detrimental to the Bank’s business; provided, however, that Executive shall have the right to manage and pursue personal and family interests, make passive investments in securities, real estate and other assets and participate in charitable and community activities and organizations so long as such activities, individually or in the aggregate, do not adversely affect the performance of Executive’s duties and obligations to the Bank and are not detrimental to the Bank’s business.

 

3.      Place of Performance. The principal place of Executive’s employment shall be Atlanta, Georgia, where Executive is currently based, until such time as the principal place of Executive’s employment reverts to Birmingham, Alabama, and shall at that time remain Birmingham, Alabama unless changed by mutual agreement of the parties; provided, however, that Executive may be required to travel on Bank business during the Term to locations including, but not limited to, such other cities in which the Bank may do business from time to time.

 

4.      Compensation and Benefits.

 

(a)     Base Salary. During the Term, Executive’s total annual base salary (“Base Salary”) shall be not less than $275,000, less normal withholdings, payable in periodic installments in accordance with the Bank’s customary payroll practices and applicable wage payment laws, but no less frequently than monthly.

 

(b)     Annual Bonus. For each fiscal year during the Term, Executive shall be eligible to receive a cash bonus (the “AIP Bonus”) based on the achievement of performance goals under the Annual Incentive Program (the “AIP”) established and administered by the Compensation Committee of the Board of Directors of National Commerce Corporation (“NCC”). The target amount of the AIP Bonus for each fiscal year shall be determined by the Compensation Committee before March 15th of the year to which such bonus relates (the “Target AIP Amount”); provided, however, that the Target AIP Amount shall not be less than 30% of Executive’s Base Salary for that fiscal year. The AIP Bonus shall be subject to approval by the NCC Board prior to payment thereof and shall be paid by March 15th of the year immediately following the year to which such bonus relates.

 

(c)     Equity Awards. Executive will be eligible to receive awards under the National Commerce Corporation 2017 Equity Incentive Plan and any other stock option, stock purchase or equity based incentive compensation plan or arrangement adopted by NCC from time to time under which senior executives of the Bank are eligible to participate (“Equity Awards”). Executive’s participation in, and awards under, such plans and arrangements, if any, will be determined from time to time by the Board of Directors of NCC or its designee, as the case may be.

 

(d)     Benefits. Executive is entitled to vacation days, paid holidays and sick days, and to participate in the Bank’s health and retirement plans, as provided in the Bank’s personnel policy and subject to such plans’ eligibility provisions, as such may be amended from time to time.

 

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(e)     Business Expenses. Executive shall be entitled to reimbursement for reasonable and necessary out-of-pocket business expenses incurred by Executive in the performance of Executive’s duties hereunder; provided, however, that Executive shall, as a condition of reimbursement, submit verification of the nature and amount of such expenses in accordance with reimbursement policies from time to time adopted by the Bank and in sufficient detail to comply with rules and regulations promulgated by the Internal Revenue Service.

 

(f)     Perquisites. During the Term, Executive shall be entitled to fringe benefits and perquisites consistent with the practices of the Bank, and to the extent that the Bank provides similar benefits or perquisites (or both) to similarly situated executives of the Bank.

 

(g)     Clawback of Compensation. Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other compensation, paid to Executive pursuant to this Agreement or any other agreement or arrangement with the Bank that is subject to recovery under any law, government regulation or stock exchange listing requirement will be subject to such deductions and clawbacks as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by the Bank pursuant to any such law, government regulation or stock exchange listing requirement). Notwithstanding the foregoing, repayment by Executive will be required in, but will not be limited to, the following circumstances:

 

(i)       where such compensation was in excess of what should have been paid or made available because the determination of the amount due was based, in whole or in part, on materially inaccurate financial information of the Bank;

 

(ii)      where such compensation constitutes “excessive compensation” within the meaning of 12 C.F.R. Part 30, Appendix A;

 

(iii)     where Executive has committed, is substantially responsible for or has violated the respective acts, omissions, conditions or offenses outlined under 12 C.F.R. Section 359.4(a)(4); and

 

(iv)     if NBC becomes, and for so long as NBC remains, subject to the provisions of 12 U.S.C. Section 1831o(f), where such compensation exceeds the restrictions imposed on the senior executive officers of such an institution.

 

Executive agrees to return within sixty (60) days, or within any earlier timeframe required by applicable law or any recoupment policy, any such compensation properly identified by the Bank by written notice. If Executive fails to return such compensation within the applicable time period, Executive agrees that the amount of such compensation may be deducted from any and all other compensation owed to Executive by the Bank. The provisions of this Section 4(g) shall be modified to the extent, and remain in effect for the period, required by applicable law.

 

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5.      Termination of Employment.

 

(a)     Death. Executive’s employment shall terminate automatically upon Executive’s death.

 

(b)     Disability. If the Bank or Executive determines in good faith that the Disability (as defined below) of Executive has occurred during the Term, either such party may give written notice of its or his intention to terminate Executive’s employment on account of Executive’s Disability. In such event, Executive’s employment with the Bank shall terminate effective on the 30th day after receipt of such written notice by either party; provided, however, that, within the thirty (30) days after such receipt, Executive shall not have returned to full-time performance of Executive’s duties. For purposes of this Agreement, “Disability” shall mean Executive’s inability, as a result of illness or injury, to perform the essential functions of Executive’s job, with or without a reasonable accommodation, for a reasonable period of time, which the parties generally anticipate would be 180 consecutive days.

 

(c)     Termination by the Bank. The Bank may terminate Executive’s employment during the Term with or without Cause immediately on written notice to Executive. For purposes of this Agreement, “Cause” shall mean: (i) abuse of or addiction to intoxicating drugs (including alcohol); (ii) any act or omission on the part of Executive that constitutes fraud, deceit, personal dishonesty, misrepresentation, embezzlement, misappropriation of corporate assets, breach of a duty owed to the Bank or conduct grossly inappropriate to Executive’s office; (iii) Executive’s indictment or conviction for a felony or a crime of moral turpitude; (iv) the suspension or removal of Executive by federal or state banking regulatory authorities; (v) Executive’s material violation of any banking law or regulation, memorandum of understanding, cease and desist order or other agreement with any federal or state banking regulatory authority; (vi) a material breach by Executive of any of the terms of this Agreement; or (vii) a filing by or against Executive of any petition under the federal bankruptcy laws or any state insolvency laws. Termination of Executive’s employment will not be deemed to be for Cause unless and until the Bank delivers to Executive a written notice of the basis of a finding of Cause. Except for a breach that, by its nature, cannot reasonably be expected to be cured, Executive will be given thirty (30) days from the delivery of written notice by the Bank within which to cure any acts giving rise to a termination under items (i), (v) or (vi) in the definition of Cause above; provided, however, that, if the Bank reasonably expects irreparable injury from a delay of thirty (30) days, it may give Executive notice of such shorter period within which to cure as is reasonable under the circumstances, which may include the termination of Executive’s employment without notice and with immediate effect. The Bank may place Executive on paid leave for up to sixty (60) days while it is determining whether there is a basis to terminate Executive’s employment for Cause. Any such action by the Bank will not constitute Good Reason (as defined below).

 

(d)     Termination by Executive.

 

(i)     Executive’s employment may be terminated by Executive without Good Reason by delivering to the Bank written notice of termination thirty (30) days prior to the desired date of termination.

 

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(ii)     Executive’s employment may be terminated by Executive for Good Reason. For purposes of this Agreement, the occurrence of the following events shall be deemed to constitute “Good Reason,” unless Executive agrees in writing that such event shall not constitute Good Reason: (A) a material diminution in Executive’s position or responsibilities; (B) a reduction in Executive’s Base Salary and, if such reduction occurs during the Change in Control Period (as defined in Section 6(c) hereof), a reduction in Executive’s Base Salary in effect immediately prior to the Change in Control (as defined in Section 6(c) hereof); (C) a material breach of this Agreement by the Bank; (D) a relocation of the principal place of Executive’s employment to a location more than fifty (50) miles from the principal place of Executive’s employment set forth in Section 3 hereof; or (E) a reassignment or other change of Executive’s duties as described in this Agreement to an affiliate of the Bank not engaged in a similar business. Notwithstanding any provision of this definition to the contrary, prior to Executive’s termination for Good Reason, Executive must give the Bank written notice of the existence of any grounds for Good Reason within thirty (30) days of its initial existence, and the Bank shall have thirty (30) days from the date of such notice in which to cure the condition giving rise to Good Reason, if curable. For the sake of clarity, Good Reason shall not include Executive’s death or Disability.

 

6.      Obligations upon Termination.

 

(a)     Termination Due to Death or Disability. If, during the Term, Executive’s employment terminates due to death or Disability, then:

 

(i)     the Bank shall pay Executive or Executive’s estate, as applicable, in a lump sum cash payment within thirty (30) days after the date of termination (with the exact payment date to be determined by the Bank), the following amounts (together, the “Accrued Amounts”):

 

(1)     Executive’s Base Salary through the date of termination, less withholding for taxes and other similar items, to the extent not previously paid;

 

(2)     any unreimbursed travel and other business expenses incurred by Executive on or before the date of termination; and

 

(3)     any vested amounts under Employee Benefit Plans in accordance with the terms and conditions governing such plans;

 

(ii)     Executive or Executive’s estate, as applicable, shall be entitled to receive a portion of the AIP Bonus, the exact amount of which shall be determined by the Compensation Committee of the NCC Board and paid in a lump sum cash payment at the time such bonus awards are normally paid for such plan year; provided, however, that the amount of the cash payment shall be no less than the target AIP Bonus for the fiscal year in which the termination of employment occurs based on the performance goals established under the AIP for such year, multiplied by a fraction, the numerator of which is the number of days worked by Executive during such final year and the denominator of which is 365 (the “Final Year Pro Rata AIP Bonus”);

 

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(iii)     Executive or Executive’s estate, as applicable, shall be entitled to receive the shares of NCC common stock to which Executive is entitled under any outstanding Performance Share Awards (“PSAs”) or other Equity Awards on a prorated basis, calculated in accordance with the terms and conditions governing such awards; and

 

(iv)     all other Equity Awards outstanding shall be treated in accordance with the stock option, stock purchase or equity based incentive compensation plans or arrangements in place on the date of termination.

 

(b)     Termination by the Bank Without Cause or by Executive for Good Reason – No Change in Control. If, during the Term, Executive’s employment is terminated by the Bank without Cause, or by Executive for Good Reason, and such termination is not in connection with a Change in Control (as defined below), then:

 

(i)     the Bank shall pay Executive the Accrued Amounts in a lump sum cash payment within thirty (30) days after the date of termination (with the exact payment date to be determined by the Bank);

 

(ii)     the Bank shall pay Executive his then-current Base Salary until the later of (A) the expiration of the Term or (B) the first anniversary of the effective date of the termination of Executive’s employment (the “Continuation Payments”);

 

(iii)     the Bank shall pay Executive a lump sum cash payment equal to the AIP Bonus, if any, that Executive would have earned for the fiscal year in which the termination of employment occurs based on the performance goals established under the AIP for such year, the exact amount of which shall be determined by the Compensation Committee of the NCC Board and paid in a lump sum cash payment at the time such bonus awards are normally paid for such plan year; and

 

(iv)     all other Equity Awards outstanding shall be treated in accordance with the stock option, stock purchase or equity based incentive compensation plans or arrangements in place on the date of termination.

 

(c)     Termination by the Bank Without Cause or by Executive for Good Reason – Change in Control. If Executive’s employment is terminated by the Bank without Cause, or by Executive for Good Reason, and such termination occurs during the period beginning one (1) year prior to and ending two (2) years following a Change in Control (as defined below, and such period referred to herein as the “Change in Control Period”), then:

 

(i)     the Bank shall pay Executive the Accrued Amounts in a lump sum cash payment within thirty (30) days after the date of termination (with the exact payment date to be determined by the Bank);

 

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(ii)     the Bank shall pay Executive a lump sum cash payment in an amount equal to 2.99 times the sum of (A) Executive’s Base Salary in effect as of the date of termination, plus (B) the greater of (i) the most recent AIP Bonus paid to Executive prior to the Change in Control or (ii) the average of the three most recent AIP Bonuses paid to Executive prior to the Change in Control, plus (C) the greater of (i) the dollar value (as of the date of grant) of the most recent PSAs granted to Executive prior to the Change in Control or (ii) the average dollar value (as of the dates of grant) of the three most recent PSAs granted to Executive prior to the Change in Control (the “CIC Severance Payment”). Subject to Section 14 hereof, the CIC Severance Payment shall be paid within sixty (60) days following the date of termination (except that such amount shall be paid within sixty (60) days following the date of the closing of the relevant Change in Control transaction if the termination of employment occurs during the period beginning one (1) year prior to and ending on the date of the Change in Control), with the exact payment date to be determined by the Bank; and

 

(iii)     all other Equity Awards outstanding shall be treated in accordance with the stock option, stock purchase or equity based incentive compensation plans or arrangements in place on the date of termination.

 

For purposes of this Agreement, “Change in Control” shall mean: (i) the acquisition (other than from NCC) in one or more transactions by any person of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of 50% or more of (A) the then-outstanding shares of the securities of NCC or (B) the combined voting power of the outstanding securities of NCC at the time of determination that are entitled to vote generally in the election of directors of NCC (“Voting Securities”); (ii) the closing of a sale or other conveyance of all or substantially all of the assets of NCC; or (iii) the effective time of any merger, share exchange, consolidation or other business combination involving NCC, if, immediately after such transaction, persons who hold a majority of the outstanding voting securities entitled to vote generally in the election of directors of the surviving entity (or the entity owning 100% of such surviving entity) are not persons who, immediately prior to such transaction, held Voting Securities. Notwithstanding the foregoing, a Change in Control shall not include (X) any consolidation or merger effected exclusively to change the domicile of NCC; (Y) any transaction or series of transactions principally for bona fide equity financing purposes in which cash is received by NCC or indebtedness of NCC is cancelled or converted or a combination thereof; or (Z) the acquisition by any person of beneficial ownership of 50% or more of the Voting Securities as a result of the acquisition of Voting Securities by NCC in a transaction that reduces the number of Voting Securities outstanding; provided, however, that, if after such acquisition by NCC such person becomes the beneficial owner of additional Voting Securities that increases the percentage of outstanding Voting Securities beneficially owned by such person, then a Change in Control shall be deemed to occur at that time.

 

(d)     Termination by the Bank For Cause or by Executive Without Good Reason. If, during the Term, Executive’s employment is terminated by the Bank for Cause or by Executive without Good Reason, then the Bank shall pay Executive the Accrued Amounts in a lump sum cash payment within thirty (30) days after the date of termination (with the exact payment date to be determined by the Bank).

 

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(e)      Expiration of the Term.

 

(i)     If both (A) Executive’s employment has not been earlier terminated in accordance with Section 5, and (B) this Agreement has not been extended, renewed or replaced, then, upon the expiration of the Term, Executive’s employment will continue on an “at will” basis, such that either party may terminate employment at any time for any reason or no reason, any such termination shall not give rise to any notice, payment, severance or other obligations on the part of the Bank under this Section 6 or otherwise; or to any notice or other obligations on the part of Executive under this Section 6; or to any non-competition or non-solicitation restrictions under Section 12 hereof.

 

(ii)     Notwithstanding the foregoing, if Executive is terminated by the Bank without Cause, or by Executive for Good Reason, during the Change in Control Period, and such termination occurs subsequent to the expiration of the Term, the provisions of Section 6(c) shall be deemed to survive the expiration of the Term and the expiration of this Agreement, and Executive shall be entitled to receive the payments set forth in Section 6(c) hereof.

 

(f)      Resignations. Upon termination of Executive’s employment hereunder for any reason, Executive shall be deemed to have resigned from all positions that Executive holds as an officer or member of the board of directors (or a committee thereof) of the Bank or any of its affiliates.

 

7.      Mitigation. In no event shall Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Executive under any of the provisions of this Agreement, and any amounts payable pursuant to this Agreement shall not be reduced by compensation that Executive earns on account of employment with another employer.

 

8.       Release of Claims. Notwithstanding anything to the contrary in this Agreement, the Bank shall be obligated to provide the Final Year Pro Rata AIP Bonus, the Continuation Payments and the CIC Severance Payment only if within forty-five (45) days after the date of termination, Executive shall have executed a general release of claims and covenant not to sue, in a form satisfactory to Executive and the Bank, and such release agreement shall not have been revoked within any revocation period specified in the release agreement.

 

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9.       Limitation of Benefits – Section 280G.

 

(a)     If any of the payments or benefits received or to be received by Executive (including, without limitation, any payment or benefits received in connection with a Change in Control or Executive’s termination of employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement, or otherwise) (all such payments collectively referred to herein as the “280G Payments”) constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and would, but for this Section 9, be subject to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), then, prior to making the 280G Payments, (i) the parties hereby agree, to the extent reasonably possible, to take all action and execute such documents that may be necessary to ensure that none of the 280G Payments shall constitute “parachute payments” within the meaning of Section 280G of the Code; provided, however, that, to the extent that this is not reasonably possible, then (ii) a calculation shall be made comparing (A) the Net Benefit (as defined below) to Executive of the 280G Payments after payment of the Excise Tax to (B) the Net Benefit to Executive if the 280G Payments are limited to the extent necessary to avoid being subject to the Excise Tax. Only if the amount calculated under (A) above is less than the amount under (B) above will the 280G Payments be reduced to the minimum extent necessary to ensure that no portion of the 280G Payments is subject to the Excise Tax. “Net Benefit” shall mean the present value of the 280G Payments net of all federal, state, local, foreign income, employment and excise taxes. Any reduction made pursuant to this Section 9 shall be made in a manner determined by the Bank that is consistent with the requirements of Section 409A of the Code.

 

(b)     All calculations and determinations under this Section 9 shall be made by an independent accounting firm or independent tax counsel appointed by the Bank (the “Tax Counsel”) whose determinations shall be conclusive and binding on the Bank and Executive for all purposes. For purposes of making the calculations and determinations required by this Section 9, the Tax Counsel may rely on reasonable, good faith assumptions and approximations concerning the application of Section 280G and Section 4999 of the Code. The Bank and Executive shall furnish the Tax Counsel with such information and documents as the Tax Counsel may reasonably request in order to make its determinations under this Section 9. The Bank shall bear all costs that the Tax Counsel may reasonably incur in connection with its services.

 

10.     Cooperation. The parties agree that certain matters in which Executive will be involved during the Term may necessitate Executive’s cooperation in the future. Accordingly, following the termination of Executive’s employment for any reason, to the extent reasonably requested by the Board, Executive shall cooperate with the Bank in connection with matters arising out of Executive’s service to the Bank; provided, however, that the Bank shall make reasonable efforts to minimize disruption of Executive’s other activities. The Bank shall reimburse Executive for reasonable expenses incurred in connection with such cooperation, and, to the extent that Executive is required to spend substantial time on such matters, Executive and the Bank shall negotiate in good faith an hourly rate to be paid to Executive for time spent.

 

11.     Stock Ownership Requirements. During the Term, Executive shall be expected to maintain ownership of NCC common stock in such amount as satisfies the stock ownership guidelines set forth in NCC’s Corporate Governance Guidelines, as in effect and applicable to Executive from time to time.

 

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12.      Protective Covenants.

 

(a)      Definitions. The following capitalized terms used in this Agreement shall have the meanings assigned to them below, which definitions shall apply to both the singular and the plural forms of such terms:

 

(i)       “Commercial Banking” means the business of commercial banking and related services as engaged in by the Bank and its affiliates during the Term.

 

(ii)      “Competitive Services” means carrying on or engaging in the business of Commercial Banking.

 

(iii)     “Confidential Information” means any and all data and information relating to the Bank, its activities, business or clients that (A) is disclosed to Executive or of which Executive becomes aware as a consequence of his employment with the Bank; (B) has value to the Bank; and (C) is not generally known outside of the Bank. “Confidential Information” shall include, but is not limited to, the following types of information regarding, related to or concerning the Bank: trade secrets (as defined by applicable law); financial plans and data; management planning information; business plans; operational methods; market studies; marketing plans or strategies; pricing information; product development techniques or plans; customer lists; customer files, data and financial information; details of customer contracts; current and anticipated customer requirements; identifying and other information pertaining to business referral sources; past, current and planned research and development; computer aided systems, software, strategies and programs; business acquisition plans; management organization and related information (including, without limitation, data and other information concerning the compensation and benefits paid to officers, directors, employees and management); personnel and compensation policies; new personnel acquisition plans; and other similar information. “Confidential Information” also includes combinations of information or materials that individually may be generally known outside of the Bank, but for which the nature, method or procedure for combining such information or materials is not generally known outside of the Bank. In addition to data and information relating to the Bank, “Confidential Information” also includes any and all data and information relating to or concerning a third party that otherwise meets the definition set forth above, that was provided or made available to the Bank by such third party and that the Bank has a duty or obligation to keep confidential. This definition shall not limit any definition of “confidential information” or any equivalent term under state or federal law. “Confidential Information” shall not include information that has become generally available to the public by the act of one who has the right to disclose such information without violating any right or privilege of the Bank.

 

(iv)      “Person” means any individual or any corporation, partnership, joint venture, limited liability company, association or other entity or enterprise.

 

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(v)       “Principal or Representative” means a principal, owner, partner, shareholder, joint venturer, investor, member, trustee, director, officer, manager, employee, agent, representative or consultant.

 

(vi)      “Protected Customer” means any Person that was called on, serviced by or contacted by Executive in his capacity as an employee of the Bank, or that was otherwise known to Executive by virtue of Executive’s employment with the Bank.

 

(vii)      “Restricted Period” means any time during Executive’s employment with the Bank, and, if Executive’s employment with the Bank is terminated, the following time periods:

 

(1)     Termination by the Bank for Cause: (A) for purposes of Section 12(c), until the earlier of (y) the expiration of the Term or (z) the second anniversary of the effective date of the termination of Executive’s employment; and (B) for purposes of Section 12(d) and Section 12(e), through the expiration of the Term;

 

(2)     Termination by the Bank without Cause or by Executive for Good Reason: until the later of (A) the expiration of the Term or (B) the first anniversary of the effective date of the termination of Executive’s employment;

 

(3)     Termination by Executive without Good Reason: through the expiration of the Term; and

 

(4)     Termination following any Change in Control: until the earlier of (A) the expiration of the Term or (B) the first anniversary of the effective date of the termination of Executive’s employment.

 

(viii)     “Restrictive Covenants” means the restrictive covenants contained in Sections 12(b) through 12(f) hereof.

 

(ix)      “Restricted Territory” means Jefferson, Shelby, Baldwin, Madison and Lee Counties in Alabama; Pinellas, Seminole, Pasco, Orange, Volusia, St. Johns, Lake, Indian River, Duval and Clay Counties in Florida; Fulton and Dekalb Counties in Georgia; and any other location within one hundred (100) miles of the principal place of Executive’s employment set forth in Section 3 hereof. Additionally, “Restricted Territory” shall be deemed to include any additional counties in which the Bank opens or acquires an office or branch, or otherwise engages in Commercial Banking, during the Term.

 

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(b)     Restriction on Disclosure and Use of Confidential Information. Executive agrees that Executive shall not, directly or indirectly, use any Confidential Information on Executive’s own behalf or on behalf of any Person other than the Bank, or reveal, divulge or disclose any Confidential Information to any Person not expressly authorized by the Bank to receive such Confidential Information. This obligation shall remain in effect for as long as the information or materials in question retain their status as Confidential Information. Executive further agrees that he shall fully cooperate with the Bank in maintaining the Confidential Information to the extent permitted by law. The parties acknowledge and agree that this Agreement is not intended to, and does not, alter either the Bank’s rights or Executive’s obligations under any state or federal statutory or common law regarding trade secrets and unfair trade practices. Anything herein to the contrary notwithstanding, Executive shall not be restricted from: (i) disclosing information that is required to be disclosed by law, court order or other valid and appropriate legal process; provided, however, that, in the event that such disclosure is required by law, Executive shall provide the Bank with prompt notice of such requirement so that the Bank may seek an appropriate protective order prior to any such required disclosure by Executive; or (ii) reporting possible violations of federal, state or local law or regulation to any governmental agency or entity, or from making other disclosures that are protected under the whistleblower provisions of federal, state or local law or regulation, and Executive shall not need the prior authorization of the Bank to make any such reports or disclosures and shall not be required to notify the Bank that Executive has made such reports or disclosures.

 

(c)     Non-Competition. Executive agrees that, during the Restricted Period, he will not, without prior written consent of the Bank, directly or indirectly, in any capacity, (a) carry on or engage in Competitive Services within the Restricted Territory on his own or on behalf of any Person or any Principal or Representative of any Person or (b) own, manage, operate, join, control, or participate in the ownership, management, operation or control of, any business, whether in corporate, proprietorship or partnership form or otherwise, where such business is engaged in the provision of Competitive Services within the Restricted Territory.

 

(d)     Non-Solicitation of Protected Customers. Executive agrees that, during the Restricted Period, he shall not, without the prior written consent of the Bank, directly or indirectly, on his own behalf or as a Principal or Representative of any Person, solicit, divert or take away, or attempt to solicit, divert or take away, a Protected Customer for the purpose of engaging in, providing or selling Competitive Services.

 

(e)     Non-Recruitment of Employees. Executive agrees that, during the Restricted Period, he shall not, without the prior written consent of the Bank, directly or indirectly, whether on his own behalf or as a Principal or Representative of any Person, solicit or induce, or attempt to solicit or induce, any employee of the Bank to terminate his or her employment relationship with the Bank or to enter into employment with Executive or any other Person.

 

(f)      Return of Materials. Executive agrees that he will not retain or destroy and will immediately return to the Bank on or prior to the date of Executive’s termination of employment, or at any other time at which the Bank requests such return, any and all property of the Bank that is in his possession or subject to his control, including, but not limited to, keys, credit, access and identification cards, personal items or equipment, customer files and information, papers, drawings, notes, manuals, specifications, designs, devices, code, e-mail, documents, diskettes, CDs, tapes, computers, mobile devices, other electronic media and all other files and documents relating to the Bank and its business (regardless of form, but specifically including all electronic files and data of the Bank), together with all Confidential Information belonging to the Bank or that Executive received from or through his employment with the Bank. Executive will not make, distribute or retain copies of any such information or property.

 

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(g)      Enforcement of Restrictive Covenants.

 

(i)     Rights and Remedies Upon Breach. The parties specifically acknowledge and agree that the remedy at law for any breach of the Restrictive Covenants will be inadequate, and that, in the event that Executive breaches, or threatens to breach, any of the Restrictive Covenants, the Bank shall have the right and remedy, without the necessity of proving actual damage or posting any bond, to enjoin, preliminarily and permanently, Executive from violating or threatening to violate the Restrictive Covenants and to have the Restrictive Covenants specifically enforced by any court of competent jurisdiction, it being agreed that any breach or threatened breach of the Restrictive Covenants would cause irreparable injury to the Bank and that money damages would not provide an adequate remedy to the Bank. In the event of any suit or arbitration with respect to Executive’s obligations in this Section 12, the prevailing party shall be entitled to recover reasonable attorneys’ fees and costs incurred in such proceeding in addition to any and all other remedies available at law or in equity.

 

(ii)     Severability and Modification of Restrictive Covenants. Executive acknowledges and agrees that each of the Restrictive Covenants is reasonable and valid in time and scope and in all other respects. The parties agree that it is their intention that the Restrictive Covenants be enforced in accordance with their terms to the maximum extent permitted by law. Each of the Restrictive Covenants shall be considered and construed as a separate and independent covenant. Should any part or provision of any of the Restrictive Covenants be held invalid, void or unenforceable, such invalidity, voidness or unenforceability shall not render invalid, void or unenforceable any other part or provision of this Agreement or such Restrictive Covenant. If any of the provisions of the Restrictive Covenants should ever be held by a court of competent jurisdiction to exceed the scope permitted by the applicable law, such provision or provisions shall be automatically modified to such lesser scope as such court may deem just and proper for the reasonable protection of the Bank’s legitimate business interests and may be enforced by the Bank to that extent in the manner described above, and all other provisions of this Agreement shall be valid and enforceable.

 

13.     Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit Executive’s continuing or future participation in any employee benefit plan, program, policy or practice provided by the Bank and for which Executive may qualify, except as specifically provided herein. Amounts that are vested benefits or that Executive is otherwise entitled to receive under any plan, policy, practice or program of the Bank at or subsequent to the date of termination shall be payable in accordance with such plan, policy, practice or program, except as explicitly modified by this Agreement.

 

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14.      Section 409A.

 

(a)     General Compliance. This Agreement is intended to comply with Section 409A of the Code (“Section 409A”) or an exemption thereunder and shall be construed and administered in accordance with Section 409A. Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon a termination of employment shall only be made upon a “separation from service” under Section 409A. If any payment or benefit provided to Executive pursuant to this Agreement is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A, and if such payment or benefit could be made or provided (or start to be made or provided) during either of two tax years, then the payment or benefit will be made or provided (or start to be made or provided) in the latter of the two tax years. Notwithstanding the foregoing, the Bank makes no representations that the payments and benefits provided under this Agreement comply with Section 409A, and in no event shall the Bank be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by Executive on account of non-compliance with Section 409A.

 

(b)     Specified Employees. Notwithstanding any other provision of this Agreement, if any payment or benefit provided to Executive in connection with his termination of employment is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A, and Executive is determined to be a “specified employee” as defined in Section 409A(a)(2)(b)(i), then such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the date of Executive’s termination of employment or, if earlier, on Executive’s death (the “Specified Employee Payment Date”). The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date and interest on such amounts calculated based on the applicable federal rate published by the Internal Revenue Service for the month in which Executive’s separation from service occurs shall be paid to Executive in a lump sum on the Specified Employee Payment Date, and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule.

 

(c)      Reimbursements. To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in accordance with the following:

 

(i)      the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year;

 

(ii)     any reimbursement of an eligible expense shall be paid to Executive on or before the last day of the calendar year following the calendar year in which the expense was incurred; and

 

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(iii)     any right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit.

 

(d)      Tax Gross-ups. Any tax gross-up payments provided under this Agreement shall be paid to Executive on or before December 31 of the calendar year immediately following the calendar year in which Executive remits the related taxes.

 

15.     Top Hat Agreement. This Agreement is intended to constitute an unfunded arrangement for Executive, who is a member of a select group of management or highly compensated employees within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended.

 

16.      Regulatory Action.

 

(a)     If Executive is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued under Section 8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act (“FDIA”) (12 U.S.C. 1818(e)(4) and (g)(1)), all obligations of the Bank under this Agreement shall terminate, as of the effective date of such order.

 

(b)     If Executive is suspended and/or temporarily prohibited from participating in the conduct of the Bank’s affairs by a notice served under Section 8(e)(3) or 8(g)(1) of FDIA (12 U.S.C. 1818(e)(3) and (g)(1)), all obligations of the Bank under this Agreement shall be suspended as of the date of service, unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Bank shall reinstate (in whole or in part) any of its obligations that were suspended.

 

(c)     If the Bank is in default (as defined in Section 3(x)(1) of FDIA), all obligations under this Agreement shall terminate as of the date of default.

 

(d)     All obligations under this Agreement shall be terminated, except to the extent that a determination is made that continuation of this Agreement is necessary for the continued operation of the Bank (1) by the director of the FDIC or his or his designee (the “Director”), at the time at which the FDIC enters into an agreement to provide assistance to or on behalf of the Bank under the authority contained in 12(c) of FDIA; or (2) by the Director, at the time at which the Director approves a supervisory merger to resolve problems related to operation of the Bank when the Bank is determined by the Director to be in an unsafe and unsound condition.

 

(e)     Notwithstanding the timing for the payment of any severance amounts described in Section 6 hereof, no such payments shall be made or commence, as applicable, that require the concurrence or consent of the appropriate federal banking agency of the Bank pursuant to 12 C.F.R. Section 359 prior to the receipt of such concurrence or consent. The Bank shall have the obligation to submit an application to make such payment to the appropriate federal banking agency within fifteen (15) business days of Executive’s right to such payment arising and shall provide a copy of such application to Executive. Any payments suspended by operation of this Section 16(e) shall be paid as a lump sum within thirty (30) days following receipt of the concurrence or consent of the appropriate federal banking agency of the Bank or as otherwise directed by such federal banking agency.

 

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(f)     All obligations under this Agreement are further subject to such conditions, restrictions, limitations and forfeiture provisions as may separately apply pursuant to any applicable state or federal banking laws.

 

17.      Indemnification. In the event of any amendment, alteration or repeal of the indemnification provisions included in the organizational documents of the Bank as in effect on the Effective Date (the “Charter Documents”) that adversely affects any indemnification right of Executive thereunder, then from and after such amendment, alteration or repeal, Executive shall be entitled to indemnity from the Bank on the same terms and conditions as those contained in the Charter Documents as in effect on the Effective Date, as if such amendment, alteration or repeal had not occurred.

 

18.      Miscellaneous.

 

(a)     Governing Law. This Agreement, for all purposes, shall be construed in accordance with the laws of the State of Delaware, without regard to conflicts of law principles.

 

(b)     Arbitration. Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration, in Birmingham, Alabama, in accordance with the Commercial Arbitration rules of the American Arbitration Association, except that the arbitrator(s) shall be required to be familiar with the laws of the State of Delaware as they relate to this Agreement. Judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The prevailing party shall be entitled to recover reasonable attorneys’ fees and costs incurred in any such arbitration proceeding in addition to any and all other remedies available at law or in equity.

 

(c)     Successors and Assigns. This Agreement is personal to Executive and shall not be assigned by Executive. Any purported assignment by Executive shall be null and void from the initial date of the purported assignment. The Bank may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Bank. This Agreement shall inure to the benefit of the Bank and permitted successors and assigns.

 

(d)     Captions. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.

 

(e)     Amendments. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing and signed by Executive and by an authorized representative of the Bank.

 

(f)     Notices. All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: if to Executive, the address on file with the Bank, and if to the Bank, National Commerce Corporation/National Bank of Commerce, 813 Shades Creek Parkway, Suite 100, Birmingham, Alabama 35209, Attention: Richard Murray, or to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee.

 

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(g)     Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

 

(h)     Withholding. The Bank may withhold from any amounts payable under this Agreement such federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.

 

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

 

(j)     Entire Agreement. Unless specifically provided herein, this Agreement contains all of the understandings and representations between Executive and the Bank pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter.

 

(k)     Construction. The parties understand and agree that because they both have been given the opportunity to have counsel review and revise this Agreement, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. Instead, the language of all parts of this Agreement shall be construed as a whole, and according to its fair meaning, and not strictly for or against either of the parties.

 

(l)     Survival. Upon the expiration or other termination of this Agreement, the respective rights and obligations of the parties hereto, including, but not limited to, those set forth in Section 6(e)(ii) hereof, shall survive such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement.

 

(m)     Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

 

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(n)     Acknowledgement. Executive acknowledges and agrees that the services to be rendered by him to the Bank are of a special and unique character; that Executive will obtain knowledge and skill relevant to the Bank’s industry, methods of doing business and marketing strategies by virtue of Executive’s employment; and that the restrictive covenants and other terms and conditions of this Agreement are reasonable and reasonably necessary to protect the legitimate business interest of the Bank. Executive further acknowledges that the amount of his compensation reflects, in part, his obligations and the Bank’s rights under Section 12 hereof; that he has no expectation of any additional compensation, royalties or other payment of any kind not otherwise referenced herein in connection herewith; and that he will not be subject to undue hardship by reason of his full compliance with the terms and conditions of Section 12 hereof or the Bank’s enforcement thereof. EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT.

 

 

 

(signature page follows)

 

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

 

 

	
			 

			/s/ Robert B. Aland                            

			Robert B. Aland

				
			NATIONAL BANK OF COMMERCE

			 

			 

			By:          /s/ John H. Holcomb, III                    

			Name:John H. Holcomb, III

			Title:Executive Chairman

			

 

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