Document:

Exhibit 10.4

 

AGREEMENT

 

This
Agreement (the “Agreement”) is made and entered into as of March __ 2014, among GoGreen Power Inc., a Delaware
corporation (“GoGreen”), the parties identified herein as creditors and/or stockholders of GoGreen (collectively,
the “Stake Holders”) and Earth Brand Holdings, Inc. a Nevada corporation (the “Company”).

 

RECITALS

 

WHEREAS,
since February 2012, GoGreen has received services and/or capital from the Stake Holders;

 

WHEREAS,
although GoGreen did not issue stock certificates to the Stake Holders representing the valid and sufficient consideration to
be received by the respective Stake Holders for their services and/or funds invested in GoGreen, each of the Stake Holders is
currently a stockholder in GoGreen;

 

WHEREAS,
GoGreen is in the process of becoming a wholly-owned subsidiary of the Company;

 

WHEREAS,
pursuant to the terms and conditions of this Agreement, the Stake Holders are willing to exchange the equity that they own in
GoGreen (hereinafter referred to as the “Shares”) for shares of common stock of the Company so that the Stake
Holders will own shares in the Company and GoGreen will become a wholly-owned subsidiary of the Company.

 

NOW
THEREFORE, in consideration of the above premises and the mutual representations, warranties, covenants and agreements hereinafter
set forth and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
agree as follows:

 

1.Services
and Funds Provided. The Stake Holders have contributed the following to GoGreen:

 

	Stake
    Holder	Consideration	Exhibit
	 	 	 
	Alpha
    Capital Anstalt	$      and
    services	A
	Osher
    Capital Partners LLC	$      and
    services	B
	Whalehaven
    Capital Funds, Ltd.	$      and
    services	C
	Elliot
    Buzil	Services	 
	Lorne	Services	 
	Mike	Services	 
	Jim
    Murray	$150,000
    and services	D

 

    	 

    	 

    

 

2.Exchange
of Shares.

 

(a)Upon
the terms and subject to the conditions set forth herein, and on the basis of the representations and warranties contained herein,
simultaneous with the execution and delivery of this Agreement, each Stake Holder shall sell, convey, transfer, assign and deliver
to the Company, and the Company shall purchase, acquire and accept from each Stake Holder, all of the Stake Holders’ right,
title and interest in and to the Shares, free and clear of any Encumbrances. “Encumbrances” shall mean security
interests, liens, claims, charges, title defects, deficiencies or exceptions (including, with respect to real property, defects,
deficiencies or exceptions in, or relating to, marketability of title, or leases, subleases or the like affecting title), mortgages,
pledges, easements, encroachments, restrictions on use, rights of-way, rights of first refusal, conditional sales or other title
retention agreements, covenants, conditions or other similar restrictions (including restrictions on transfer) or other encumbrances
of any nature whatsoever.

 

Attached
as Schedule 1 is a table showing each Stake Holder and the number of Shares being exchanged for shares of common stock
of the Company.

 

(b)Simultaneous
with the execution and delivery of this Agreement, each Stake Holder shall be issued the number of shares of common stock of the
Company (the “Company Shares”) as indicated on Schedule 1 in consideration for their Shares.

 

(c)
Upon execution and delivery of this Agreement, GoGreen shall be owned by the Company and the only interest the Stake Holders shall
have in GoGreen or its business or assets shall be its interest in the Company.

 

3.Representations
of the Company.

 

The
Company hereby represents and warrants to the Stake Holders the following:

 

(a)The
Company is a corporation duly incorporated, organized, validly existing and in good standing under the laws of the State of Nevada,
with the corporate power and authority to own, operate and lease its properties and to carry on its business as now conducted.
The Company has the absolute and unrestricted right, power, legal capacity and authority to enter into and perform its obligations
under this Agreement, to carry out its obligations hereunder and to consummate the transactions contemplated hereby.

 

(b)No
filing with, authorization from or consent or approval of any governmental body, agency, official or authority or any other third
party is necessary or required to be made or obtained to enable the Company to enter into, and to perform its obligations under,
this Agreement.

 

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(c)This
Agreement has been duly executed and delivered by the Company and assuming the due authorization, execution and delivery by the
other parties hereto, this Agreement constitutes a legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its terms. The individual executing this Agreement on behalf of the Company has been duly authorized
by all necessary and appropriate action on behalf of the Company.

 

(d)Neither
the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will conflict with,
or (with or without notice or lapse of time, or both) result in a termination, breach or violation of (a) any provision of the
Certificate of Incorporation or By-laws of the Company, as currently in effect, (b) any instrument, contract or agreement to which
the Company is a party or by which it is bound, or (c) any federal, state, local or foreign law, ordinance, judgment, decree,
order, statute, or regulation, or that of any other governmental body or authority, applicable to the Company or its assets or
properties.

 

(e)Upon
issuance of the Company Shares in accordance with the terms and provisions of this Agreement, said shares will be duly authorized,
validly issued, fully paid and nonassessable, free and clear of any Encumbrances, other than applicable federal and state securities
laws. Each Stake Holder shall be the lawful record and beneficial owner of the number of shares of Company as indicated in Schedule
1. 

 

4.
Representations of the Stake Holders.

 

Each
Stake Holder, jointly but not severally, hereby represents and warrants to the Company the following:

 

(a)If
the Stake Holder is not an individual, the Stake Holder is an entity duly established, organized, validly existing and in good
standing under the laws of the state of its respective jurisdiction, with the power and authority to own, operate and lease its
properties and to carry on its business as now conducted. The Stake Holder has the absolute and unrestricted right, power, legal
capacity and authority to enter into and perform its obligations under this Agreement, to carry out its obligations hereunder
and to consummate the transactions contemplated hereby.

 

(b)No
filing with, authorization from or consent or approval of any governmental body, agency, official or authority or any other third
party is necessary or required to be made or obtained to enable the Stake Holder to enter into, and to perform its obligations
under, this Agreement.

 

(c)This
Agreement has been duly executed and delivered by the Stake Holder and assuming the due authorization, execution and delivery
by the other parties hereto, this Agreement constitutes a legal, valid and binding obligation of the Stake Holder, enforceable
against it in accordance with its terms. The individual executing this Agreement on behalf of the Stake Holder has been duly authorized
by all necessary and appropriate action on behalf of the Stake Holder.

 

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(d)Neither
the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will conflict with,
or (with or without notice or lapse of time, or both) result in a termination, breach or violation of (i) any provision of the
organizational documents of the Stake Holder, as currently in effect, (ii) any instrument, contract or agreement to which the
Stake Holder is a party or by which it is bound, or (iii) any federal, state, local or foreign law, ordinance, judgment, decree,
order, statute, or regulation, or that of any other governmental body or authority, applicable to the Stake Holder or its assets
or properties. The Stake Holder is not party to or threatened with, any litigation, suit, action, investigation, proceeding or
controversy before any court, administrative agency or other governmental authority relating to or affecting the Shares.

 

(e)The
Stake Holder agrees and acknowledges that it was never issued a stock certificate representing an equity interest in GoGreen.
The Stake Holder is the sole record and beneficial owner of its respective equity interest in GoGreen which it is hereby returning
to the Company and has good and marketable title to said interest, free and clear of any Encumbrances, other than as expressly
created by applicable federal and state securities laws.

 

(f)The
Stake Holder is acquiring the shares of Company Shares for its own account, for investment purposes only and not with a view to
the resale or distribution of any part thereof. Other than this Agreement, there are no stockholders’ agreements, voting
trust, proxies, options, rights of first refusal or any other agreements or understandings with respect to the Shares or the Company
Shares to be received by the Stake Holder.

 

(g)The
Stake Holder is an accredited investor, as such term is defined in Regulation D promulgated by the Securities and Exchange Commission
pursuant to the Securities Act of 1933, as amended (the “Act”). The Stake Holder further represents and warrants
that it is acquiring the shares of Company Shares for its own account for investment purposes only and not with a view to the
distribution or resale thereof. The Stake Holder will not distribute, pledge, offer, resell or otherwise transfer or dispose of
the Company Shares or any interest therein unless registered pursuant to the Act and any applicable state securities laws, or
unless an exemption from registration is available thereunder.

 

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(h)The
Stake Holder or its adviser(s) has/have received access to all material and relevant information necessary to enable the Stake
Holder to make any informed investment decision. The Stake Holder has had the opportunity to ask questions of and receive answers
from the Company and its representatives concerning the Company, its business, both current and proposed, and the terms and conditions
of this transaction, and to obtain from the Company any additional information or requested by the Stake Holder. The Stake Holder
has adequate means of providing for the Stake Holder's current financial needs and contingencies, is able to bear the substantial
economic risks of an investment in the shares of the Company for an indefinite period of time, has no need for liquidity in such
investment, and, at the present time, could afford a complete loss of such investment.

 

(i)The
Stake Holder has such knowledge and experience in financial, tax and business matters so as to enable the Stake Holder to utilize
the information made available to the Stake Holder in connection with the exchange of their Shares for the shares of Company Shares,
to evaluate the merits and risks of an investment in the Company Shares, and to make an informed investment decision with respect
thereto. The Stake Holder is not relying on the Company or its representatives with respect to the tax and other economic considerations
of an exchange of its Shares for the Company Shares.

 

(j)The
Stake Holder understands that the shares of the Company have not been registered under the Act or any applicable securities law
of any state or other jurisdiction and can not be transferred, pledged, hypothecated or otherwise disposed of other than pursuant
to an effective registration statement thereunder. Any transfer, pledge or other proposed disposition of the shares received by
the Stake Holder shall be made in full compliance with applicable federal and state securities laws. All certificates representing
the shares shall bear a legend to such effect.

 

(k)The
Stake Holder agrees and acknowledges that it is voluntarily relinquishing preferential rights inherent with its Shares. Further,
the Stake Holder recognizes that its investment in the Company is subject to immediate dilution upon subsequent investments in
the Company, including without limitation the issuances of common stock as well as preferred stock which is currently being contemplated.

 

(l)The
Stake Holder is aware that there is no market for the Common Stock, that it is unlikely that any such market will ever develop,
and that it may not be possible to liquidate the Stake Holder's investment, and, in any event, that there are substantial restrictions
on the transferability of the Shares under applicable federal and state securities law and the provisions of this Agreement.

 

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5.Confidentiality.

 

(a)Each
Stake Holder hereby severally covenants and agrees that such Stake Holder shall retain in strict confidence, and shall not use
for any purpose whatsoever, or divulge, disseminate or disclose to any third party (other than in furtherance of the business
purposes of the Company or as may be required by law) all proprietary or confidential information relating to the Company's business,
including, without limitation, product information, financial information, product availability, development plans, distribution
methods and channels, pricing information, business methods, management information systems and software, customer lists, supplier
lists, leads, solicitations and contacts, know-how, show-how, inventions, improvements, specifications, trade secrets, agreements,
research and development, business plans and marketing plans of the Company, whether or not any of the foregoing are copyrightable
or patentable.

 

(b)Each
Stake Holder hereby severally covenants and agrees that such Stake Holder shall, for so long as it is a stockholder of the Company,
communicate and make known to the Company all knowledge and information possessed by such Stake Holder relating to any methods,
developments, know-how, inventions, techniques or improvements which concern in any way the business of the Company (or the industry
in which it is part); provided, however, that nothing herein shall be construed as requiring any communication where the information
is lawfully protected from disclosure as the proprietary right of a third party or by any other legal bar to such communication.
Any developments relating to the Company’s business, in which any party hereto has participated, shall be considered works-for-hire
for the Company, which shall have the exclusive rights thereto; and each party hereto shall sign and deliver to the Company, and
shall cause any instruments necessary to effect the assignment of such rights to the Company.

 

(c)If
a Stake Holder breaches, or threatens to commit a breach of, any of the provisions of this Agreement, then the Company and the
other Stake Holders shall have the right and remedy to have the covenants contained herein specifically enforced, without the
need of posting a bond, by any court having equity jurisdiction; it being acknowledged and agreed that any such breach or threatened
breach will cause irreparable injury to the Company and its stockholders and that money damages will not provide an adequate remedy
to the Company and its stockholders. These rights and remedies shall be in addition to and not in lieu of, any other rights and
remedies that are available at law or in equity.

 

6.Miscellaneous.

 

(a)This
Agreement shall be governed by and construed in accordance with the internal laws of the State of Nevada, without regard to conflict
of law rules applied in such State.

 

(b)If
any covenant or agreement contained herein, or any part hereof, is held to be invalid, illegal or unenforceable for any reason,
such provision will be deemed modified to the extent necessary to be valid, legal and enforceable and to give effect of the intent
of the parties hereto.

 

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(c)This
Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof. This Agreement supersedes
all prior agreements between the parties with respect to the subject matter hereof or thereof. There are no representations, warranties,
covenants or undertakings with respect to the subject matter hereof other than those expressly set forth herein or in the other
agreements referenced herein.

 

(d)This
Agreement may not be amended or modified except by the express written consent of the Company and a majority of the Stake Holders.
Any waiver by the parties of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach thereof or of any other provision.

 

(e)This
Agreement shall be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their respective successors
and permitted assignees and heirs and legal representatives.

 

(f)The
parties hereto intend that this Agreement shall not benefit or create any right or cause of action in or on behalf of any person
other than the parties hereto.

 

(g)The
parties hereto agree to execute and deliver such further documents and instruments and to do such other acts and things any of
them, as the case may be, may reasonably request in order to effectuate the transactions contemplated by this Agreement.

 

(h)This
Agreement may be executed in counterparts and by facsimile or other electronic means, each of which shall be deemed an original
and all of which together shall constitute one and the same instrument.

 

[Remainder
of page intentionally omitted; Signature pages to follow]

 

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IN WITNESS WHEREOF, each of the undersigned has caused this Agreement to
be executed by its duly authorized officer or representative as of the date first above written.

 

	 	EARTH
    BRAND HOLDINGS, INC.
	 	 	 
	 	By:	/s/
    Jim Murray
	 	 	Name:
    Jim Murray
	 	 	Title:
    CEO
	 	 	 
	 	STAKE
    HOLDERS:
	 	 	 
	 	Alpha
    Capital Anstalt
	 	 	 
	 	By:	/s/ Konrad Ackerman

	 	 	Name: Konrad Ackerman
	 	 	Title: Director
	 	 	 
	 	Whalehaven
    Capital Funds, Ltd.
	 	 	 
	 	By:	/s/ Vadim Mats 

	 	 	Name: Vadim Mats 
	 	 	Title: CFO
	 	 	 
	 	Osher
    Capital Partners LLC
	 	 	 
	 	By:	/s/ Ari Kluger

	 	 	Name: Ari Kluger
	 	 	Title: President
	 	 	 
	 	/s/ Elliot
    Buzil
	 	Elliot
    Buzil
	 	 	 
	 	/s/ Lorne Singer
	 	Lorne Singer
	 	 	 
	 	/s/ Mike Finkelstein
	 	Mike Finkelstein
	 	 	 
	 	/s/ Jim
    Murray
	 	Jim
    Murray

 

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Schedule
1

 

	

        Stake
        Holder
	

        Number
        of Shares of GoGreen Being Cancelled
	Number
    of Shares of Common Stock of the Company Being Issued
	 	 	 
	Alpha
    Capital Anstalt	140	1,400,000
	Osher
    Capital Partners LLC	100	1,000,000
	Whalehaven
    Capital Funds, Ltd.	235	2,350,000
	Elliot
    Buzil	125	1,250,000
	Lorne	125	1,250,000
	Mike	125	1,250,000
	Jim
    Murray	350	3,500,000

 

 

9sunshineexb10_1.htm

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”) is made as of this 27 day of January, 2016 (the “Effective Date”), by and between Sunshine Bancorp, Inc. (the “Corporation”), Sunshine Bank (the “Bank”), and John D. Finley (the “Officer”).

 

WITNESSETH:

 

WHEREAS, the Officer serves as Chief Financial Officer of the Corporation and Executive Vice President of the Bank; and

 

WHEREAS, Corporation and Bank desire to continue to employ the Officer, and the Officer desires to continue to provide services to the Corporation and the Bank, pursuant to the terms and conditions of this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing premises and of the covenants and agreements herein contained, the Corporation, the Bank and the Officer covenant and agree as follows:

 

1.           Employment.  Pursuant to the terms and conditions of this Agreement, the Corporation and the Bank agree to employ the Officer and the Officer agrees to render services as set forth herein.  Any prior employment agreement entered into between the Corporation or the Bank and the Officer is hereby terminated and of no further force or effect.

 

2.           Position and Duties.  During the term of this Agreement, the Officer shall serve as Chief Financial Officer of the Corporation and an Executive Vice President of the Bank and shall undertake such duties, consistent with such titles, as may be assigned to the Officer from time to time by the Board of Directors of the Bank or the Corporation (referred to as the “Board”) and the President or Chief Executive Officer, including serving on Board committees as appointed from time to time by the Board, and assisting in keeping the Bank in compliance with applicable laws and regulations.  In performing the Officer’s duties pursuant to this Agreement, the Officer shall devote the Officer’s full business time, energy, skill and best efforts to promote the Corporation and the Bank and its respective business and affairs; provided that, subject to Sections 10, 12 and 13 of this Agreement, the Officer shall have the right to manage and pursue personal and family interests, and make passive investments in securities, real estate, and other assets, and also to participate in charitable and community activities and organizations, so long as such activities do not adversely affect the performance by Officer of the Officer’s duties and obligations to the Corporation or the Bank.  The Board shall, in its sole and exclusive discretion, assign duties and responsibilities to the Officer, and the Officer commits to perform those duties to the best of the Officer’s ability.  It shall be the Board’s exclusive province to assign or remove the duties and responsibilities from the Officer.

 

3.           Term.  The term of this Agreement shall be for a period of two (2) years, commencing on the Effective Date and subject to earlier termination as provided herein (the “Term”).  Beginning on the first day after the Effective Date and on each day thereafter, the Term of this Agreement shall be renewed and extended for a period ending two years from that day, unless otherwise terminated as hereinafter set forth.  After termination of the employment of the Officer for any reason whatsoever, the Officer shall continue to be subject to the provisions of Sections 10 through 23, inclusive, of this Agreement.

 

  

  

  

4.           Compensation.  During the term of this Agreement, the Bank shall pay or provide to the Officer as compensation for the services of the Officer set forth in Section 2 hereof:

 

(a)           A base annual salary of at least $200,000 payable in such periodic installments consistent with other employees of the Bank (such base salary to be subject to increase each year in the discretion of the Board); and

 

(b)           Such incentive bonuses as the Board in its discretion may award.

 

5.           Benefits and Insurance.  The Bank shall provide to the Officer such medical, health, and life insurance as well as any other benefits as the Board shall determine from time to time.

 

6.           Vacation.  The Officer may take such weeks of vacation time as authorized by the Bank’s personnel policies and at such periods during each year as the President or Chief Executive Officer and the Officer shall determine from time to time.  The Officer shall be entitled to full compensation during such vacation periods.

 

7.           Reimbursement of Expenses.  The Bank shall reimburse the Officer for reasonable expenses incurred in connection with the Officer’s employment hereunder subject to guidelines issued from time to time by the Board and upon submission of documentation in conformity with applicable requirements of federal income tax laws and regulations supporting reimbursement of such expenses.

 

8.           Termination; Change in Control.  The employment of the Officer may be terminated as follows:

 

(a)           By the Corporation, by action taken by its Board or President or Chief Executive Officer, at any time and immediately upon written notice to the Officer if said discharge is for cause.  In the notice of termination furnished to the Officer under this Section 8(a), the reason or reasons for said termination shall be given and, if no reason or reasons are given for said termination, said termination shall be deemed to be without cause and therefore termination pursuant to Section 8(e).  Any one or more of the following conditions shall be deemed to be grounds for termination of the employment of the Officer for cause under this Section 8(a) (“Cause”):

 

(i)           The conviction of, plea of nolo contendere, or entry of judgment against the Officer by a civil or criminal court of competent jurisdiction of a felony or first degree misdemeanor, or any other offense or wrongdoing involving dishonesty, embezzlement, fraud, misappropriation of funds, any act of moral turpitude or dishonesty;

 

(ii)           The finding by a court of competent jurisdiction in a criminal or civil action or by the U.S. Securities and Exchange Commission or state blue sky agency in an administrative proceeding that the Officer has violated any federal or state securities law;

 

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(iii)           If the Officer shall fail or refuse to comply with the obligations required of Officer as set forth in this Agreement or the duties assigned to the Officer from time to time, or comply with the policies of the Corporation or the Bank established from time to time;

 

(iv)           If the Officer shall have engaged in conduct involving fraud, deceit, personal dishonesty, or breach of fiduciary duty, or any other conduct, which in any such case has adversely affected, or may adversely affect, the business or reputation of the Corporation or the Bank;

 

(v)           If the Officer shall have violated any banking law or regulation, memorandum of understanding, cease and desist order, or other agreement with any banking agency having jurisdiction over the Bank;

 

(vi)           If the Officer shall have become subject to continuing intemperance in the use of alcohol or drugs which has adversely affected, or may adversely affect, the business or reputation of the Corporation or the Bank, or has been convicted of a crime involving moral turpitude;

 

(vii)           If the Officer shall have filed, or had filed against the Officer, any petition under the federal bankruptcy laws or any state insolvency laws;

 

(viii)           The unauthorized disclosure by the Officer of Confidential Information, as defined in this Agreement, concerning the Corporation, the Bank or any of their respective affiliates or subsidiaries, unless such disclosure was required by an order of a court having jurisdiction over the subject matter or a summons, subpoena or order in the nature thereof of any legislative body (including any committee thereof) or any governmental or administrative agency; or

 

(ix)           The performance of services by the Officer, other than in the course of properly carrying out the Officer’s duties under this Agreement and as otherwise provided herein, for any other corporation or person that competes with the Bank while the Officer is employed by the Corporation or the Bank.

 

In the event of termination for Cause, the Bank shall pay the Officer only salary, vacation, and bonus amounts accrued and unpaid as of the effective date of termination.

 

(b)           By the Officer upon the lapse of 30 days following written notice by the Officer to the Corporation of termination of Officer’s employment hereunder for Good Reason (as defined below), which notice shall reasonably describe the Good Reason for which the Officer’s employment is being terminated; provided, however, that the Corporation shall have the opportunity to cure such Good Reason, during such 30-day period, and the Officer’s employment shall continue in effect during such time.  If such Good Reason shall be cured during such time, the Officer’s employment and the obligations of the Corporation and the Bank hereunder shall not terminate as a result of the notice which has been given with respect to such Good Reason.  Cure of any Good Reason with or without notice from the Officer shall not relieve the Corporation or the Bank from any obligations to the Officer under this Agreement or otherwise and shall not affect the Officer’s rights upon the reoccurrence of the same, or the occurrence of any other, Good Reason.  Any notice of termination for Good Reason must be delivered by the Officer to the Corporation within sixty (60) days of the event providing grounds for Good Reason termination and must contain a reasonably detailed description of the relevant facts and circumstances.  For purposes of this Agreement, the term “Good Reason” shall mean any material breach by the Corporation or the Bank of any provision of this Agreement.

 

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If the Officer’s employment is terminated by the Officer for Good Reason, the Bank shall, for a period of 12 months after said termination (i) continue to pay to the Officer the base annual salary in effect under Section 4(a) on the date of said termination, plus pay an amount equal to the last bonus paid by the Bank to the Officer and (ii) reimburse the Officer for the costs of continued coverage under the Bank’s medical insurance plan in accordance with the Omnibus Budget Reconciliation Act (COBRA), less the amount that the Officer would be required to contribute for such health coverage if the Officer were an active employee.

 

(c)           By the Officer upon the lapse of 30 days following written notice by the Officer to the Bank of the Officer’s resignation for other than Good Reason; provided, however, that the Bank, in its discretion, may cause such termination to be effective at any time during such 30-day period.  If the Officer’s employment is terminated because of the Officer’s resignation, the Bank shall be obligated to pay to the Officer any salary, vacation, and bonus amounts accrued and unpaid as of the effective date of such resignation.

 

(d)           If the Officer’s employment is terminated by the death or disability (i.e., the inability of the Officer by reason of illness or physical or mental disability to perform the employment duties required of the Officer, as determined by the Bank, for a period of 90 consecutive days) of the Officer, this Agreement shall automatically terminate, and the Bank shall be obligated to pay to the Officer or the Officer’s estate any salary, vacation, and bonus amounts accrued and unpaid at the date of disability or death.

 

(e)           By the Corporation, by action taken by the Board or President or Chief Executive Officer, at any time if said discharge is without Cause.  If the Officer’s employment is terminated without Cause, the Bank shall, for a period of 12 months after said termination (i) continue to pay to the Officer the base annual salary in effect under Section 4(a) on the date of said termination plus pay an amount equal to the last bonus paid by the Bank to the Officer, and (ii) reimburse the Officer for the costs of continued coverage under the Bank’s medical insurance plan in accordance with the Omnibus Budget Reconciliation Act (COBRA), less the amount that the Officer would be required to contribute for such health coverage if the Officer were an active employee.

 

(f)           If a Change in Control (as defined below) shall occur at any time during the term of this Agreement, the Officer may terminate his employment for any reason or no reason by delivering a notice in writing (the "Notice of Termination") to the Corporation within thirty (30) days of the Change in Control which termination shall be effective immediately upon delivery of such Notice of Termination.  In the event that the Officer delivers a Notice of Termination to the Corporation, or the Officer’s employment is terminated without Cause by the Corporation within two (2) years following a Change in Control, Officer shall be entitled to receive, within twenty (20) days of termination, a lump sum payment in an amount equal to two (2) times the sum of (i) his base annual salary and (ii) the last annual cash bonus earned by the Officer.  Additionally, Officer shall be entitled to receive, within twenty (20) days of termination, a lump sum payment equal to the estimated cost to the Officer of obtaining medical insurance substantially similar to coverage under the Bank’s medical insurance plan for a period of twenty-four (24) months, less the amount that the Officer would be required to contribute for such health coverage if the Officer were an active employee.  For purposes of  this Agreement, a Change in Control shall mean (i) a merger or consolidation of the Corporation with an unaffiliated entity, but not including a merger or consolidation in which any individual or group of the shareholders of the Corporation immediately prior to such merger or consolidation are the beneficial owners of more than 50% of the outstanding shares of the common stock of the surviving corporation immediately after such merger or consolidation, or (ii) the acquisition by any individual or group of beneficial ownership of more than 50% of the outstanding shares of Corporation common stock.  Notwithstanding the foregoing, a “Change in Control” shall only be deemed to occur under this Section 8(f) if it constitutes a “change in control” as defined under Section 409A of the Code.  It is the intent of the parties that benefits under this Section 8(f) shall be in lieu of any other benefit payments that the Corporation or Bank may otherwise be obligated to make to the Officer under this Section 8.  Therefore, if any benefits are paid under this Section 8(f), no subsequent benefits shall be paid under any other subsection of this Section 8, and shall not be paid for a second time under this Section 8(f).

 

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(g)           Notwithstanding anything is this Agreement to the contrary, any benefits payable by the Corporation or the Bank to the Officer which constitute a “deferral of compensation” as that term is defined in Treasury Regulations Section 1.409A-l (b), and which are payable by reason of the Officer’s termination, shall not be payable unless the Officer’s termination of employment qualifies as a “separation of service” as that term is defined in Treasury Regulations Section 1.409A-l (h) (“Separation from Service”).

 

(h)           (1)           Notwithstanding anything in this Agreement to the contrary, if the Officer is considered a Specified Employee (as defined below), any benefit distributions which would otherwise be made to the Officer due to a Separation from Service which are limited under Code Section 409A because the Officer is a Specified Employee, shall not be made during the first six months following Separation from Service.  Rather, any distribution which would otherwise be paid to the Officer during such period shall be accumulated and paid to the Officer in a lump sum on the first day of the seventh month following the Separation from Service. All subsequent distributions shall be paid in the manner specified.

 

(2)           For purposes of this Agreement, the term “Specified Employee” means an employee who at the time of termination of employment is a key employee of the Bank, if any stock of the Bank (or the Corporation) is publicly traded on an established securities market or otherwise. For purposes of this Agreement, an employee is a key employee if the employee meets the requirements of Code Section 416(i)(1)(A)(i), (ii), or (iii) (applied in accordance with the regulations thereunder and disregarding section 416(i)(5) at any time during the 12-month period ending on December 31 (the “identification period”).  If the employee is a key employee during an identification period, the employee is treated as a key employee for purposes of this Agreement during the twelve-month period that begins on the first day of April following the close of the identification period.

 

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(i)           Any amounts paid to the Officer under this Agreement prior to the Officer’s termination of employment with the Bank shall be paid during the short-term deferral period as determined under Treasury Regulation Section 1.409A-1(b)(4).

 

(j)           This Agreement shall be interpreted and administered consistent with Code Section 409A.

 

(k)           Notwithstanding the foregoing, Officer will not be entitled to any payments or benefits under this Sections 8(b) or 8(e) (unless such termination event related to the payments or benefits occurs on or after a Change in Control) unless and until Officer executes a release of all claims that Officer or any of Officer’s affiliates or beneficiaries may have against the Bank or any affiliate, and their officers, directors, successors and assigns, releasing said persons from any and all claims, rights, demands, causes of action, suits, arbitrations or grievances relating to the employment relationship, including claims under the Age Discrimination in Employment Act (“ADEA”), but not including claims for benefits under tax-qualified plans or other benefit plans in which the Officer is vested, claims for benefits required by applicable law or claims with respect to obligations set forth in this Agreement that survive the termination of this Agreement.  In order to comply with the requirements of Section 409A of the Code and the ADEA, the release must be provided to Officer no later than the date of his Separation from Service and Officer must execute the release within twenty-one (21) days after the date of termination without subsequent revocation by Officer within seven (7) days after execution of the release.

 

9.           Notice.  All notices permitted or required to be given to either party under this Agreement shall be in writing and shall be deemed to have been given (a) in the case of delivery, when addressed to the other party as set forth at the end of this Agreement and delivered to said address (and, in the case of the Corporation or the Bank, at its main office),  (b) in the case of mailing, three days after the same has been mailed by certified mail, return receipt requested, and deposited postage prepaid in the U.S. Mails, addressed to the other party at the address as set forth at the end of this Agreement, and (c) in any other case, when actually received by the other party.  Either party may change the address at which said notice is to be given by delivering notice of such to the other party to this Agreement in the manner set forth herein.

 

10.           Confidential Information.  While employed, Officer will have access to and become acquainted with Confidential Information, Trade Secrets, and Proprietary Information, including but not limited to, financial, personnel, sales, customers, clients, scientific, technical and other information regarding formulas, patterns, compilations, programs, devices, methods, techniques, operations, plans and processes that are owned by the Corporation or the Bank, actually or potentially used in the operation of the Corporation’s or Bank’s business, or obtained from third parties under an agreement of confidentiality, and that such information constitutes the Corporation’s and the Bank’s Confidential Information, Trade Secrets, and Proprietary Information. Officer hereby expressly agrees that such Confidential Information, Trade Secrets, and Proprietary Information are and shall remain the trade secrets and property of the Corporation or the Bank, as the case may be, and Officer agrees that Officer will not at any time during the term of this Agreement or after the termination of this Agreement, disclose or use in any way whatsoever any of such confidential information.  Furthermore, Officer specifically covenants and agrees not to make any duplicates, copies, or reconstructions of such materials, and that if any such duplicates, copies, or reconstructions are made, they shall become the property of the Corporation upon their creation.

 

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For purposes of this Agreement, Confidential Information, Trade Secrets, and Proprietary Information shall mean all information of a confidential or proprietary nature (including such information described herein), in any form or medium, that relates to: (a) internal business information, including financial information and information relating to strategic and staffing plans, business, training, marketing, promotional and sales plans, cost, rate and pricing structures; (b) identities of, individual requirements of, specific contractual arrangements with, the Corporation’s or Bank’s clients, customers, vendors and other trade related business relations and their confidential information; (c) object code and source code to the Corporation’s or the Bank’s software, technical designs, data dictionaries, information relating to trade secrets, know-how, compilations of data and databases relating thereto, including information containing proprietary databases and the use and functions thereof; (d) inventions, innovations, improvements, developments, designs, analyses, drawings, reports and all similar or related information, whether patentable or not; and (e) other intellectual property rights of the Corporation or the Bank.

 

Officer agrees that all files, records, documents, drawings, specifications, equipment, software, and similar items or technological information whether maintained in hard copy or by electronic means relating to the Corporation or the Bank’s business, whether prepared by Officer or others, are and shall remain exclusively the property of the Corporation or the Bank, as applicable, and that they shall be removed from the premises or, if kept online, from the computer systems only with the express prior written consent of the Board.  Upon termination of employment, or at any earlier time requested by the Corporation or the Bank, Officer shall promptly return all Confidential and/or Proprietary Information or inventions in Officer’s possession in whatever form, as well as any other property of the Corporation or the Bank, which is or has been in the Officer’s possession or under the Officer’s control.  Officer agrees not to delete, modify, or bulk copy any work files prior to or subsequent to termination and the Officer agrees to reimburse all costs associated with data recovery if this provision of the Agreement is breached.

 

11.           Legitimate Business Interests; Injunction Without Bond.  The Officer acknowledges that the restrictive covenants set forth in this Agreement are necessary to protect the legitimate business interests of the Bank including, but not limited to, trade secrets and other valuable confidential business information.  In the event there is a breach or threatened breach by the Officer of the provisions of Sections 10, 12, or 13, the Corporation shall be entitled to an injunction without bond to restrain such breach or threatened breach, and the prevailing party in any such proceeding will be entitled to reimbursement for all costs and expenses, including reasonable attorneys’ fees in connection therewith.  Nothing herein shall be construed as prohibiting the Corporation from pursuing such other remedies available to it for any such breach or threatened breach including recovery of damages from the Officer.

 

12.           Covenant Not to Compete.  The Officer agrees that during the period of time the Officer is retained to provide services to the Corporation, and thereafter for a period of 12 months subsequent to the termination of Officer’s services for any reason whatsoever, Officer will not enter the employ of, or have any interest in, directly or indirectly (either as executive, partner, director, officer, consultant, principal, agent or employee), any other bank or financial institution or any entity which either accepts deposits or makes loans (whether presently existing or subsequently established) and which has an office any time during the period of 12 months subsequent to the termination of Officer’s services that is located within a radius of 35 miles of any office of the Bank in existence at the time of termination; provided, however, that the foregoing shall not preclude any ownership by the Officer of an amount not to exceed 5% of the equity securities of any entity which is subject to the periodic reporting requirements of the 1934 Act and the shares of Corporation common stock owned by the Officer at the time of termination of employment.

 

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13.           Covenant Not to Solicit.  The Officer agrees that during the period of time the Officer is retained to provide services to the Bank, and thereafter for a period of 12 months subsequent to the termination of Officer’s services for any reason whatsoever, the Officer will not (a) solicit for employment by Officer, or anyone else, or employ any employee of the Bank or any person who was an employee of the Bank within 12 months prior to such solicitation of employment; (b) induce, or attempt to induce, any employee of the Bank to terminate such employee’s employment; (c) induce, or attempt to induce, anyone having a business relationship with the Bank to terminate or curtail such relationship or, on behalf of himself or anyone else, compete with the Bank; (d) knowingly make any untrue statement concerning the Corporation or the Bank or their respective directors or officers to anyone; or (e) permit anyone controlled by the Officer, or any person acting on behalf of the Officer or anyone controlled by an employee of the Officer to do any of the foregoing.

 

Officer acknowledges and agrees that the Bank spent and continues to spend considerable time, energy, and money in training its employees and shareholders and that the Bank would suffer significant damages if Officer were to either encourage one or more of such persons to no longer work for the Bank or offer to have one or more of such persons work for Officer.  Further, Officer agrees and acknowledges that the above non-solicitation covenants are reasonable in that they give the Bank a protection to which the Bank is entitled and yet does not impair Officer’s ability to earn a livelihood.

 

14.           Remedies.  The Officer agrees that the restrictions set forth in this Agreement are fair and reasonable.  The covenants set forth in this Agreement are not dependent covenants and any claim against the Corporation or the Bank, whether arising out of this Agreement or any other agreement or contract between the Corporation or the Bank and Officer, shall not be a defense to a claim against Officer for a breach or alleged breach of any of the covenants of Officer contained in this Agreement.  It is expressly understood by and between the parties hereto that the covenants contained in this Agreement shall be deemed to be a series of separate covenants.  The Officer understands and agrees that if any of the separate covenants are judicially held invalid or unenforceable, such holding shall not release Officer from Officer’s obligations under the remaining covenants of this Agreement.  If in any judicial proceedings, a court shall refuse to enforce any or all of the separate covenants because taken together they are more extensive (whether as to geographic area, duration, scope of business or otherwise) than necessary to protect the business and goodwill of the Corporation and the Bank, it is expressly understood and agreed between the parties hereto that those separate covenants which, if eliminated or restricted, would permit the remaining separate covenants or the restricted separate covenant to be enforced in such proceeding shall, for the purposes of such proceeding, be eliminated from the provisions of this Agreement or restriction, as the case may be.

 

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    15.           Invalid Provision.  In the event any provision should be or become invalid or unenforceable, such facts shall not affect the validity and enforceability of any other provision of this Agreement.  Similarly, if the scope of any restriction or covenant contained herein should be or become too broad or extensive to permit enforcement thereof to its full extent, then any such restriction or covenant shall be enforced to the maximum extent permitted by law, and Officer hereby consents and agrees that the scope of any such restriction or covenant may be modified accordingly in any judicial proceeding brought to enforce such restriction or covenant.

 

16.           Governing Law; Venue.  This Agreement shall be construed in accordance with and shall be governed by the laws of the State of Florida.  The sole and exclusive venue for any action arising out of this Agreement shall be a federal or state court situated in Hillsboro County, Florida, and the parties to this Agreement agree to be subject to the personal jurisdiction of such Court and that service on each party shall be valid if served by certified mail, return receipt requested or hand delivery.

 

17.           Arbitration.  Except with regard to Section 11, all disputes between the parties concerning the performance, breach, construction or interpretation of this Agreement, or in any manner arising out of this Agreement, shall be submitted to binding arbitration in accordance with the rules of the American Arbitration Association, which arbitration shall be carried out in the manner set forth below:

 

(a)           Within fifteen (15) days after written notice by one party to the other party of its demand for arbitration, which demand shall set forth the name and address of its designated arbitrator, the other party shall select its designated arbitrator and so notify the demanding party.  Within fifteen (15) days thereafter, the two arbitrators so selected shall select the third arbitrator.  The dispute shall be heard by the arbitrators within ninety (90) days after selection of the third arbitrator.  The decision of any two arbitrators shall be binding upon the parties.  Should any party or arbitrator fail to make a selection, the American Arbitration Association shall designate such arbitrator upon the application of either party.  The decision of the arbitrators shall be final and binding upon the Bank, its successors and assigns and Officer.

 

(b)           The arbitration proceedings shall take place in Hillsboro County, Florida, and the judgment and determination of such proceedings shall be binding on all parties.  Judgment upon any award rendered by the arbitrators may be entered into any court having competent jurisdiction without any right of appeal.

 

18.           Attorneys’ Fees and Costs.  In the event a dispute arises between the parties under this Agreement and suit or arbitration is instituted, the prevailing party shall be entitled to recover his or its costs and attorneys’ fees from the nonprevailing party.  As used herein, costs and attorneys’ fees include any costs and attorneys’ fees in any appellate proceeding.

 

19.           Assignability; Binding Nature.  This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors, heirs and assigns.  No rights or obligations of the Corporation or the Bank under the Agreement may be assigned or transferred by the any party except that such rights or obligations of the Corporation and the Bank may be assigned or transferred pursuant to a merger or consolidation in which the Corporation or the Bank is not the continuing entity, or the sale or liquidation of all or substantially all of the assets of the Corporation or the Bank, provided that the assignee or transferee is the successor to all or substantially all of the assets of the Corporation or the Bank and such assignee or transferee assumes the liabilities, obligations and duties of the Corporation and the Bank.

 

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20.           Effect on Other Agreements.  This Agreement and the termination thereof shall not affect any other agreement between the parties hereto, and the receipt by the Officer of benefits thereunder.

 

21.           Miscellaneous.  The captions used herein are solely for the convenience of the parties and are not used in construing this Agreement.  Time is of the essence of this Agreement and the performance by each party of its or his or her duties and obligations hereunder.

 

22.           Regulatory Actions; Clawback Requirements.   The following provisions shall be applicable to the parties:

 

(a)           If the Officer is suspended from office and/or temporarily prohibited from participating in the conduct of the Bank’s affairs pursuant to notice served under Section 8(e)(3) or Section 8(g)(1) of the Federal Deposit Insurance Act (“FDIA”) (12 U.S.C. 1818(e)(3) and 1818(g)(1)), the Bank’s obligations under this Agreement shall be suspended as of the date of suspension, unless stayed by appropriate proceedings.  If the charges and the notice are dismissed, the Bank may, in its discretion: (i) pay the Officer all or part of the compensation withheld while its obligations under this Agreement were suspended and (ii) reinstate (in whole or in part) any of its obligations which were suspended.

 

(b)           If the Officer is removed from office and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued under Section 8(e)(4) or Section 8(g)(1) of the FDIA, all obligations of the Bank under this Agreement shall terminate as of the effective date of the order, but vested rights of the Officer and the Bank as of the date of termination shall not be affected.

 

(c)           If the Bank is in default, as defined in Section 3(x)(1) of the FDIA, all obligations under this Agreement shall terminate as of the date of such default, but vested rights of the Officer and the Bank as of the date of termination shall not be affected.

 

(d)           Notwithstanding any other provision of this Agreement to the contrary, any amounts paid or payable under the FDIA to the Officer pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with Sections 18(k) and 32(a) of the FDIA and Part 359 of the FDIC’s rules and regulations, and any regulations promulgated under the FDIA.

 

(e)           This Agreement shall be subject to applicable federal and state law regarding clawback of executive compensation.  In the event that, during the term of this Agreement, clawback regulations are promulgated by any state or federal agency with regulatory authority over the Bank, Officer and the Bank agree to negotiate in good faith an amendment incorporating a clawback provision into this Agreement.

 

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23.           Complete Agreement.  This Agreement constitutes the complete agreement between the parties hereto and incorporates all prior discussions, agreements and representations made in regard to the matters set forth herein.  This Agreement may not be amended, modified or changed except by a writing signed by the party to be charged by said amendment, change or modification.

 

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

 

	  	
Sunshine Bank

	  	
 

 

By: /s/ Andrew S. Samuel         

 

As Its:  President and Chief Executive Officer

	  	  
	  	
“OFFICER”

	  	
 

 

 

/s/ John D. Finley            

John D. Finley

	  	Address:	1825 Pawnee Trail 

Lakeland, Florida 33803

	
  

 

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