Document:

Exhibit 10.14

 

EXECUTIVE   OFFICER CHANGE IN CONTROL SEVERANCE AGREEMENT (JOSEPH CANOSA) THIS EXECUTIYJ:   OFFICER CHANGE IN CONTROL SEVERANCE AGREEMENT is made thisb ay of July, 2017,   by and between BENEFICIAL BANK, a Pennsylvania chartered savings bank (the   "Bank") and JOSEPH CANOSA (the "Executive") and   BENEFICIAL BANCORP, INC., a Maryland corporation and the holding company for   the Bank (the "Company"), as guarantor (the "Agreement").   WHEREAS, to continue to encourage Executive's dedication to his assigned   duties in the face of potential distractions arising from the prospect of a   Change in Control, the Bank wishes to provide certain benefits and payments   in the event Executive's employment is terminated involuntarily without Cause   or voluntarily for Good Reason within twelve (12) months of a Change in   Control. NOW THEREFORE, in consideration of these premises and other good and   valuable consideration, the receipt and sufficiency of which are hereby   acknowledged, the parties hereto agree as follows. 1. Termination after a Change   in Control. (a) Cash benefit. Notwithstanding any other provisions in this   Agreement, if the Executive's employment terminates involuntarily but without   Cause (as defined in paragraph (d) of this Section 1) or voluntarily but with   Good Reason (as defined in paragraph (e) of this Section 1), in either case   within 12 months after a Change in Control, the Bank shall make a lump-sum   cash payment equal to three (3) times the sum of Executive's; (i) base salary   (at the rate in effect immediately prior to the Change in Control or, if   higher, the rate in effect when the Executive te1minates employment) and (ii)   the most recent bonus paid by the Company and/or the Bank. Unless a delay in   payment is required under Section 1(b) of this Agreement, the payment required   under this Section 1(a) shall be made within five (5) business days after the   Executive's employment termination. (b) Payment of the cash benefit. If the   Executive is a "specified employee" within the meaning of Section   409A of the Internal Revenue Code of 1986, as amended (the "Code")   at the time his employment terminates and the cash severance benefit under   Section 1(a) is considered defe1Ted compensation under Section 409A of the   Code, and finally if an exemption from the six-month delay requirement of   Section 409A(a)(2)(B)(i) of the Code is not available, payment of the benefit   under Section l(a) shall be delayed and shall be made to the Executive in a   single lump sum without interest on the first business day of the seventh   (ih) month after the month in which the Executive's employment te1minates,   subject to Section 16 of this Agreement. (c) Change in Control defined. For   purposes of this Agreement, a "Change in US2008 13067656 2 

    

 

Control"   means any of the following events: (i) Merger: The Company or the Bank merges   into or consolidates with another corporation, or merges another corporation   into the Company or the Bank, and as a result less than a majority of the   combined voting power of the resulting corporation immediately after the   merger or consolidation is held by persons who were stockholders of the   Company or the Bank immediately before the merger or consolidation. (ii)   Acquisition of Significant Share Ownership: There is filed, or required to be   filed, a report on Schedule 13D or another form or schedule (other than   Schedule 13G) required under Sections 13(d) or 14(d) of the Securities   Exchange Act of 1934, if the schedule discloses that the filing person or   persons acting in concert has or have become the beneficial owner of 25% or   more of a class of the Company's voting securities, but this clause (ii)   shall not apply to beneficial ownership of Company voti ng shares held in a   fiducia1y capacity by an entity of which the Company directly or indirectly   beneficially owns 50% or more of its outstanding voting securities. (iii)   Change in Board Composition: During any period of two consecutive years,   individuals who constitute the Company's or the Bank's Board of Directors at   the beginning of the two-year period cease for any reason to constitute at   least a majority of the Company's or the Bank's Board of Directors; provided,   however, that for purposes of this clause (iii), each director who is first   elected by the board (or first nominated by the board for election by the stockholders)   by a vote of at least two-thirds (2/3) of the directors who were directors at   the beginning of the two-year period shall be deemed to have also been a   director at the beginning of such period; or (iv) Sale of A ssets: The   Company or the Bank sells to a third party all or substantially all of its   assets. (d) Cause defined. For ptrrposes of this Agreement involunta1y   termination of the Executive's employment shall be considered te1mination   with Cause if the Executive sha ll have been terminated for any of the   following reasons: (i) (ii) (iii) (iv) (v) Personal dishonesty; Willful   misconduct; Breach of fiducia1y duty involving personal profit; Intentional   failure to perform stated duties; Willful violation of any law, rule or   regulation (other than traffic violations or similar offenses) that reflect   adversely on the reputation of the Bank or the Company, any felony   conviction, any violation of law 2 US2008 13067656 2 

    

 

involving moral   turpitude or any violation of a flnal cease-and-desist order; or (vi)   Material breach by Executive of any provision of this Agreement.   Notwithstanding the foregoing, Executive shall not be deemed to have been   terminated for Cause by the Bank or the Company unless there shall have been   delivered to Executive a copy of a resolution duly adopted by the aff11mative   vote of a majority of the entire membership of the Board at a meeting of such   Board called and held for the purpose (after reasonable notice to Executive   and an opportunity for Executive to be heard before the Board with counsel),   of finding that, in the good faith opinion of the Board, Executive was guilty   of the conduct described above and specifying the particulars thereof. (e)   Good Reason defined. For purposes of this Agreement, "Good Reason"   shall exist if, without the Executive's express written consent, the Bank   materially breaches any of its respective obligations under this Agreement.   Without limitation, such a material breach shall be deemed to occur upon any   of the following: Amaterialdiminutionor reductionin theExecutive's   responsibilities or authority (including reporting responsibilities) in   connection with the Executive's employment with the Bank; (1) (2) A material   reduction in Executive's base salary below the amount Executive was entitled   to receive prior to the Change in Control; or (3) A relocation of the   Executive's principal business office by more than thirty (30) miles from its   cunent location. Good Reason shall not exist tmless and until Executive   provides the Banlc with written notice of the events alleged to constitute   Good Reason within ninety (90) days of Executive's knowledge of the initial   occurrence of such events, and the Bank (or its successor) fails to cure such   event within thirty (30) days of receipt of such notice, if curable.   Executive must terminate employment with the Bank within ninety (90) days   following the expiration of such cure period for the termination to be on   account of Good Reason. 2. Continuation of Benefits. (a) Benefits. Subject to   Section 2(b) of this Agreement, if the Executive's employment terminates   involuntarily but without Cause or voluntarily but for Good Reason within   twelve (12) months after a Change in Control, the Bank sha ll continue or   cause to be continued life and health insurance coverage substantially   identical to the coverage maintained for the Executive before termination and   in accordance with the same schedule prevailing before employment   termination. The insurance coverage shall cease thirty-six (36) months after   the Executive's termination. (b) Alternative lump-sum cash payment. If (x)   under the terms of the applicable 3 US2008 13067656 2 

    

 

policy or   policies for the insurance benefits specified in Section 2(a) it is not   possible to continue the Executive's coverage, or (y) if when employment   tetmination occurs the Executive is a specified employee within the meaning   of Section 409A of the Code, if any of the continued insurance coverage   benefits specified in Section 2(a) would be considered deferred compensation   under Section 409A of the Code, and finally if an exemption from the   six-month delay requirement of Section 409A(a)(2)(B)(i) of the Code is not   available for that particular insurance benefit, instead of continued   insurance coverage under Section 2(a) the Bank shall pay or cause to be paid   to the Executive in a single lump sum an amount in cash equal to the present   value of the Bank's projected cost to maintain that particular insurance   benefit had the Executive's employment not terminated, assuming continued   coverage for thirty-six (36) months. The lump-sum payment shall be made   within five (5) business days after employment termination or, if the   Executive is a specified employee within the meaning of Section 409A of the   Code and an exemption from the six-month delay requirement of Section   409A(a)(2)(B)(i) of the Code is not available, on the first business day of   the seventh month after the month in which the Executive's employment   terminates, subject to Section 16 of this Agreement. 3. Termination for Which   No Benefits Are Payable. Despite anything in this Agreement to the contraty,   the Executive shall be entitled to no benefits under this Agreement if the   Executive's employment terminates with Cause, if the Executive dies while   actively employed by the Bank, or if the Executive becomes totally disabled   while actively employed by the Bank. For purposes of this Agreement, the term   "totally disabled" means that because of injmy or sickness the   Executive is unable to perform the Executive's duties. The benefits, if any,   payable to the Executive or the Executive's beneficiary or estate relating to   the Executive's death or disability shall be determined solely by such   benefit plans or arrangements as the Bank may have with the Executive   relating to death or disability, not by this Agreement. 4. Term of Agreement.   (a) The tetm of this Agreement shall consist of: (i) the period commencing on   the Effective Date and ending July made pursuant to this Section 4. , 2019,   plus (ii) any and all extensions of the initial term (b) Commencing on July_,   2018 (the "anniversary date") and continuing on each anniversary   date thereafter, the disinterested members of the Board of Directors of the   Bank may extend the Agreement term, so that the remaining term of the   Agreement, following Board action, will be two (2) years, unless Executive   elects not to extend the term of this Agreement by giving proper written   notice. The Board of Directors of the Bank will review the Agreement and   Executive's performance annually for purposes of determining whether to   extend the Agreement term and will include the rationale and results of its   review in the minutes of the meetings. The Board of Directors of the Bank   will notify Executive as soon as possible after each annual review whether it   has determined to extend the Agreement. 5. Change in Control Best Payments   Determination. Notwithstanding any other provision of this Agreement to the   contrary, if payments made or benefits provided pursuant to Sections 1 and 2   or otherwise from the Bank, the Company or 4 US2008 13067656 2 

    

 

any affiliate   of the Bank or the Company are considered "parachute payments"   under Section 280G of the Internal Revenue Code of 1986, as amended (the   "Code"), then such payments or benefits shall be limited to the   greatest amount that may be paid to Executive under Section 280G of the Code   without causing any loss of deduction to the Company or its affiliates under   such section, but only if, by reason of such reduction, the net after tax   benefit to Executive shall exceed the net after tax benefit if such reduction   were not made. "Net after tax benefit" for purposes of this   Agreement shall mean the sum of (i) the total amounts payable to Executive   under Sections 1 and 2, plus (ii) all other payments and benefits which the   Executive receives or then is entitled to receive from the Bank, the Company   or any affiliate of the Bank or the Company that would constitute a   "parachute payment" within the meaning of Section 280G of the Code,   less (iii) the amount of federal, state and local income and payroll taxes   payable with respect to the foregoing calculated at the maximum marginal tax   rates for each year in which the foregoing shall be paid to Executive (based   upon the rate in effect for such year as set forth in the Code at the time of   tetmination of Executive's employment), less (iv) the amount of excise taxes   imposed with respect to the payments and benefits described in (i) and (ii)   above by Section 4999 of the Code. The determination as to whether and to   what extent payments are required to be reduced in accordance with this   Section 5 shall be made at the Bank's expense by an accounting firm or law   firm experienced in such matters. Any reduction in payments required by this   Section 5 shall occur in the following order: (i) any cash severance, (ii)   any other cash amount payable to Executive, (iii) any benefit valued as a   "parachute payment," (iv) the acceleration of vesting of any equity   awa rds that are options, and (v) the acceleration of vesting of any other   equity awards. Within any such category of payments and benefits, a reduction   shall occur first with respect to amounts that are not "deferred   compensation" withi n the meaning of Section 409A of the Code and then   with respect to amounts that are. In the event that acceleration of   compensation fi-om equity awards is to be reduced, such acceleration of   vesting shall be canceled, subject to the immediately preceding sentence, in   the reverse order of the date of grant. 6. This Agreement Is Not an   Employment Contract. The parties hereto acknowledge and agree that (x) this   Agreement is not a management or employment agreement and (y) nothing in this   Agreement sha ll give the Executive any rights or impose any obligations to   continued employment by the Bank or any subsidiary or successor of the Bank.   7. Withholding of Taxes. The Bank may withhold from any benefits payable   under this Agreement all Federal, state, local or other taxes as may be   required by law, governmental regulation, or mling. 8. Successors and   Assigns. (a) This Agreement shall inure to the benefit of and be binding upon   any corporate or other successor to the Company and the Bank which shall   acquire, directly or indirectly, by merger, consolidation, purchase or   otherwise, all or substantially all of the assets or stock of the Company and   the Bank. 5 US2008 13067656 2 

    

 

(b) Since the   Company and the Bank are contracting for the unique and personal skills of   Executive, Executive shall be precluded from assigning or delegating his   rights or duties hereunder without first obtaining the written consent of the   Company and the Bank. 9. Notices. All notices, requests, demands and other   communications in connection with this Agreement shall be made in writing and   shall be deemed to have been given when delivered by hand or 48 hours after mailing   at any general or branch United States Post Office, by registered or   cetiified mail, postage prepaid, addressed to the Company and/or the Bank at   their principal business offices and to Executive at his home address as   maintained in the records of the Company and the Bank. 10. Captions and   Counterparts. The headings and subheadings in this Agreement are included   solely for convenience and shall not affect the interpretation of this   Agreement. This Agreement may be executed in one or more counterparts, each   of which shall be deemed to be an original but all of which together shall   constitute one and the same agreement. 11. Amendments. No amendments or   additions to this Agreement shall be binding unless made in writing and   signed by all of the parties, except as herein othetwise specifically   provided. 12. Severability. The provisions of this Agreement shall be deemed   severable and the invalidity or unenforceability of any provision shall not   affect the validity or enforceability of the other provisions hereof. 13.   Applicable Law.Except to the extent preempted by federal law, the laws of the   Commonwealth of Pennsylvania shall govern this Agreement in all respects,   whether as to its validity, construction, capacity, performance or othetwise.   14. Entire Agreement. This Agreement, together with any understanding or   modifications thereof as agreed to in writing by the parties, shaU constitute   the entire agreement among the parties hereto with respect to the subject   matter hereof, other than written agreements with respect to specific plans,   programs or a1Tangements described in Sections 1 and 2. No agreements or   representations, oral or othetwise, expressed or implied concerning the   subject matter hereof have been made by either party that a re not set forth   expressly in this Agreement. 15. No Mitigation. Executive shall not be   required to mitigate the amount of any payment provided for in this Agreement   by seeking other employment or othetwise and no such payment shall be offset   or reduced by the amount of any compensation or benefits provided to   Executive in any subsequent employment. 16. Internal Revenue Code Section   409A. (a) This Agreement will be construed and administered to preserve the   exemption from Section 409A of the Code of payments that qualify as a shmi-term   deferral. With respect to any amount that is subject to Section 409A of the   Code, it is intended, and this Agreement will 6 US2008 13067656 2 

    

 

I· be so   construed, that any such amount payable under this Agreement and the Company's,   Bank's or Executive's exercise of authority or discretion hereunder shall   comply with the provisions of Code Section 409A and the treasury regulations   relating thereto ("Section 409A") so as not to subject Executive to   the payment of interest and additional tax that may be imposed under Section   409A. Solely as necessary to comply with Section 409A, for purposes of this   Agreement, "termination of employment" or "employment   termination" or similar terms shall have the same meaning as   "separation from service" under Section 409A(a)(2)(A)(i) of the   Code. For purposes of Section 409A, each payment made under this Agreement   shall be treated as a separate payment, the right to a series of installment   payments under this Agreement (if any) is to be treated as a right to a   series of separate payments, and if a payment is not made by the designated   payment date under this Agreement, the payment shall be made by December 31   of the calendar year in which the designated date occurs. In no event shall   the Employee, directly or indi rectly, designate the calendar year of   payment. (b) If Executive is a "specified employee" on Executive's   separation from service, any payment that is subject to Section 409A and that   is payable to Executive in connection with Executive's separation from   service, shall not be paid earlier than six months after such separation from   service, and to the extent any such payment is delayed, will be paid, without   interest, on the first payroll date after the expiration of such six-month   period (if Executive dies after the date of Executive's separation from   service but before any payment has been made, such remaining payments that   were or could have been delayed will be paid to Executive's estate without   regard to such six-month delay). (c) References in this Agreement to Section   409A of the Code include rules, regulations, and guidance of general   application issued by the Department of the Treasury under Intemal Revenue   Section 409A. 17. Regulatory Limitations. (a) In no event shall the Bank or the   Company be obligated to make any payment pursuant to this Agreement that is   prohibited by Section 18(k) of the Federal Deposit Insurance Act (codified at   12 U.S.C. § 1828(k)), 12 C.F.R. Part 359, or any other applicable law. (b) In   no event shall the Bank or the Company be obligated to make any payment   pursuant to this Agreement if: (i) Executive is suspended from office and/or   temporarily prohibited from patticipating in the conduct of the Barile's   affairs by a notice served under Section 8(e)(3) (12 USC §1818(e)(3)) or 8(g)   (12 USC §1818(g)) of the Federal Deposit Insurance Act, as amended; (ii)   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)(12 USC   §1818(e)) or 8(g) (12 USC §1818(g)) of the Federal Deposit Insurance Act, as   amended; 7 US2008 13067656 2 

    

 

' I the Bank is   in default as defined in Section 3(x) (12 USC §1818(x)(l)) of (iii) the   Federal Deposit Insura nce Act, as amended; or (iv) the FDIC enters into an   agreement to provide assistance to or on behalf of the Bank under the   authority contained in Section 13(c) (12 USC §1823(c) of the Federal Deposit   Insurance Act, as amended. 18. Arbitration. Any dispute or controversy   arising under or in connection with this Agreement shall be settled   exclusively by arbitration, conducted before a panel of three arbitrators   sitting in Philadelphia, Pennsylvania, in accordance with the mles of the   American Arbitration Association then in effect. Judgment may be entered on   the arbitrator's award in any court having jurisdiction. 19. Source of   Payments. All payments provided in this Agreement shall be timely paid in   cash or check from the general funds of the Bank. The Company, however,   unconditionally guarantees payment and provision of all amounts and benefits   due hereunder to Executive and, if such amounts and benefits due from the   Bank are not timely paid or provided by the Bank, such amounts and benefits   shall be paid or provided by the Company. N WITNESS WHEREOF, the parties hayF   executed this Executive Officer Change in Control July; /_QO 17 Severa nce   Agreement as of as of BENEFICIAL BANK <;== ==========----BENEFICIAL   BANCORP, INC. (as guarantor) 8 US2008 13067656 2Exhibit

January 24, 2018

 
Mr. Reza Leaali

Dear Reza,
 
We are happy to offer you the position of Chief Information Officer with a date of hire of February 12, 2018 (“Date of Hire”).  You will be reporting hierarchically to the Santander Consumer USA (“SC”) Chief Executive Officer and functionally to the SHUSA Chief Technology Officer.  The compensation and benefit details for your position are as follows:

Base Salary:

Your base salary will be $500,000.00 gross per year, and it will be paid over 26 equal bi-weekly pay periods per year.

Annual Incentive Compensation:

You will be eligible to participate in our annual incentive bonus program, with the first bonus to be awarded for the 2018 performance year. The target amount for your annual incentive bonus potential is $500,000.00.  SC will pay any annual incentive bonus in accordance with the Performance Management & Compensation Policy, and the annual amount will be determined by SC based on your achievement of individual objectives and on the performance of SC and its Affiliates.  For 2018 performance year only, your incentive payment will be guaranteed at a minimum of $500,000.  Any future company provided annual deferral or long-term incentive program participation will be carved out of your annual bonus target.  Your position is currently deemed “Identified Staff”, requiring your annual incentive bonus to be paid out in the manner prescribed by applicable regulations and company policy.  Currently, the annual incentive bonus will be paid as follows:

		
	•
	30% in cash paid immediately;

		
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	30% in immediately-vested Restricted Stock Units (RSUs);

		
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	20% in cash to be paid in equal payments on the first, second, and third anniversary of the original bonus payment; and

		
	•
	20% in RSUs that vest ratably on the first, second and third anniversaries of the initial bonus.

This bonus is contingent on the approval of the Santander Consumer USA Holdings, Inc.’s Compensation Committee.  The award will also be contingent on your executing applicable award agreements, and such awards will be subject to the terms of those agreements, including, without limitation, the restriction against selling or transferring shares of common stock settled upon the vesting of the RSUs until the one year anniversary of the vesting date.

Sign on Bonus:

You will be eligible to receive a one-time payment of $240,000 (the “Sign-On Bonus”) on the regularly scheduled payroll that most closely follows your 30th day of employment.  

The Sign-On Bonus will also be subject to the “Additional Signing-On Bonus Conditions” attached hereto.

Equity Buyout:

You will be eligible to receive, up to a maximum of $1,250,000.00, as compensation to replace the value of any deferred or other compensation you forfeit as a result your employment with SC.  

The Equity Buyout will be structured in RSUs that vest ratably on the first, second, third and fourth anniversaries of the grant date of the RSUs.

The RSU portion of the Sign-On Bonus will also be contingent on your executing applicable award agreements, and such awards will be subject to the terms of those agreements, including, without limitation, the restriction against selling or transferring shares of common stock settled upon the vesting of the RSUs until the one year anniversary of the vesting date.

Relocation:

Your relocation benefits will consist of the following:

		
	1.
	Home Sale Assistance:  Upon sale of your primary residence, SC will reimburse you the cost of the realtor commission for the sale of your home, not to exceed six percent of the sale price.

		
	2.
	Household Goods Move:  Through our third party vendor, SC will coordinate the packing, shipment and delivery of your household goods to Dallas.  You will also be eligible to receive sixty days of temporary storage.  

		
	3.
	Home Finding Trip:  SC will reimburse one trip for you and your spouse for up to three nights.  Reimbursement includes hotel, airfare (coach), car rental and meals.

		
	4.
	Area Touring:  Through our third party vendor, SC will coordinate two full days of destination services.

		
	5.
	Temporary Housing:  Through our third party vendor, SC will provide sixty days of temporary housing.

		
	6.
	Home Purchase Assistance:  Upon closing on the purchase of your home in the Dallas area, SC will reimburse actual, reasonable, and customary buyer’s closing costs including typical inspections (general home inspection, termite, and/or radon).  

		
	7.
	Miscellaneous Allowance:  Lump sum payment equal to one month’s new annual base salary, capped at $7,500 net payable in the first regular pay cycle after you begin employment with SC.

		
	8.
	Return Trips home:  While in temporary housing you will be eligible for up to four return trips home.  These trips will be booked through our third party vendor and will follow the guidelines of our Travel and Expense Policy.

		
	9.
	Final Move:  SC will reimburse you the cost of the final trip for you and your spouse to relocate to Dallas.  This can be mileage reimbursement (.23 cents per mile or coach airfare).

		
	10.
	Tax Assistance:  SC will provide tax assistance for all the benefits listed at the appropriate rate.

Once we receive the signed offer letter you will be contacted by our Global Mobility Manager who will be your primary contact for your relocation to Dallas.

Health and Welfare Benefits:

On your first day you will be eligible to participate in the benefit plan offered to full-time employees which includes but not limited to medical, dental, and vision insurance options, life insurance, short and long-term disability, white-glove service, employee discounts and pre-tax monthly transportation reimbursement.  

401K:

You are eligible to enroll in our 401K the your first day of employment and to receive a company match following six (6) months of employment; SC matches 100% up to 6% contributions. 

Notice Provision and Garden Leave: 
Given the strategic importance of the position you are being offered, you hereby acknowledge and agree that SC, its client relationships and/or its business opportunities would likely suffer irreparable harm were you to resign or otherwise end your employment without providing sufficient notice to SC. To avoid such harm, and in exchange for the pay and benefits SC extends to you pursuant to this offer of employment, you agree to provide SC with ninety (90) days prior written notice of your intent to end your employment with SC (the “Notice Period”). During the Notice Period you will be paid your base salary pursuant to SC’s regular payroll practices and will be eligible to continue to participate in the employee benefit plans in which you were enrolled prior to submitting your resignation, with the exception that (i) you will not continue to accrue paid time off during the notice period and (ii) you will not continue to accrue any time or other interest under any bonus plans. You will be expected to perform all duties and tasks assigned to you during the Notice Period, including all assignments related to the transition of your duties and responsibilities, and you will devote all of your working time, labor, skill and energies to the business and affairs of SC. 
You agree that during the Notice Period you will continue to owe SC a duty of loyalty and you will remain bound by all fiduciary duties and obligations owed to SC as an employee and executive, as well as abide by all prior non-competition, non-disclosure and non-solicitation agreements you have entered into with SC. As a condition of being hired, you agree by signing below not to compete with SC, or to start employment with or an engagement with a competitor, during the period of time you are employed by SC, including during the Notice Period. You agree that during your employment, including the Notice Period, and regardless of whether your title, position or responsibilities change at any point, you will not directly or indirectly become employed or engaged by (whether as an employee, consultant, proprietor, partner, director or otherwise) another bank, financial institution, or any other competitor of SC. 
Upon receipt of your resignation, SC may, in its sole discretion, waive the Notice Period, in which case your employment will be terminated upon receipt of written notice from SC, which SC can invoke at any time during the Notice Period. Under such circumstances, SC will not be obliged to provide you with pay in lieu of notice and, in turn, you will no longer be bound by the specific non-competition restriction outlined in the prior paragraph. Alternatively, the Company may, in its sole discretion, retain you as an employee during the Notice Period and direct you not to report to work; in which case you will be placed on “Garden Leave.” 
While on Garden Leave, you will remain bound by all fiduciary obligations owed as an employee and executive, the non-competition restrictions set out in the prior paragraphs, as well as any non-disclosure agreements and non-solicitation agreements between you and SC. For purposes of clarity, while on Garden Leave you will (1) remain an employee of SC; (2) continue to be paid your base salary; and (3) continue to be eligible to participate in the same benefit plans in which you were enrolled prior to submitting your resignation, with the exception that (i) you will not continue to accrue paid time off during the Garden Leave and (ii) you will not continue to accrue any time or other interest under any bonus plans. During the Garden Leave, you must be reasonably available during normal business hours to answer questions and provide advice to the Company. 
You agree that because your services are personal and unique and because you will have access to and will be acquainted with SC’s confidential information and/or its customer relationships, to the fullest extent permitted by law, this Notice Provision will be enforceable by injunction, specific performance or other equitable relief, without bond and without prejudice to any other rights or remedies that SC may have for breach of this Notice Provision. If you violate the non-competition restrictions contained in this offer, you shall continue to be bound by those restrictions until a period of ninety (90) consecutive days has expired without any violation of such provisions. 

Your employment is subject to the covenants and agreements of Exhibit A, which are hereby incorporated by reference as if fully set forth herein. In return for your employment, the compensation described in this letter agreement, SC ’s providing you access to its Confidential Information (as defined in Exhibit A), and other consideration, you agree to be bound by the terms, conditions, and covenants of Exhibit A. 

This offer is subject to the confirmation of the Grupo Santander Nomination Committee and is contingent upon successful completion of pre-employment screening, and is valid for a period of five (5) business days. SC considers all information related to associate compensation to be private and confidential. SC is an at-will employer, meaning that either the employee or the Company may terminate the employment relationship at any time at their sole discretion and without cause. Neither this letter nor any other communication by a representative of the management of the Company other than in writing and signed by the CEO can vary this policy or create a contract of permanent employee or employment for a specified period of time. 

SC considers all information related to associate compensation to be private and confidential.

You will be required to provide the Company with sixty (90) days’ advance written notice of Termination of Service, provided that the Company shall have the right, but not the obligation, to terminate your service immediately without further consideration, or to require you to continue in service in a reduced role as determined by the Company, upon receiving such advance written notice.  

Your employment is subject to approval the covenants and agreements of Exhibit A, which are hereby incorporated by reference as if fully set forth herein.  In return for your employment, the compensation described in this letter agreement, SC’s providing you access to its Confidential Information (as defined in Exhibit A), and other consideration, you agree to be bound by the terms, conditions, and covenants of Exhibit A.
SC is an at-will employer, meaning that either the employee or SC may terminate the employment relationship at any time at his or its sole discretion and without cause.  Neither this offer letter nor any other communication by a representative of the management of SC other than in writing and signed by the CEO can vary this policy or create a contract of permanent employee or employment for a specified period of time.

Sincerely,

Lisa VanRoekel
Chief Human Resource Officer
Santander Consumer USA

Your signature below represents your acceptance of this offer and that you understand and agree to the above conditions.
 
 /s/- Reza Leaali
____________________________________ 
 
Reza Leaali

1/26/2018
____________________________________
 
Date

EXHIBIT A
Confidentiality and Restrictive Covenant Agreement

This Confidentiality and Restrictive Covenant Agreement (“Agreement”) is entered into between Santander Consumer USA Inc., Santander Consumer USA Holdings, Inc. (collectively “Santander” or the “Company”), and Reza Leaali (“Employee”). In exchange for the mutual promises and obligations in this Agreement, Santander and Employee agree as follows:
1.NO ALTERATION OF EMPLOYMENT RELATIONSHIP. Nothing in this Agreement is intended to alter the nature of the relationship between Employee and the Company. The terms and conditions of employment for employees that have executed separate, specific employment agreements will continue to be governed by such agreements except to the extent altered herein. Employment for employees that have not signed separate, specific employment agreements remains “at will,” and either the employee or the Company may terminate the employee’s employment at any time, with or without notice, for any or no reason and with or without cause. Nothing in this Agreement shall constitute a promise or contract of employment for any particular duration, for any specified rate of pay, under any specified terms and conditions, or for any specific job function.
2.AGREEMENT TO PROVIDE CONFIDENTIAL INFORMATION. Santander agrees to furnish Employee with Confidential Information related to Santander during Employee’s employment. Employee acknowledges that this Confidential Information is furnished for the purpose of enabling Employee to access and provide service to the Company and its customers. Employee acknowledges and agrees that the Company’s business is to a large extent based upon Confidential Information, and that the Company’s provision of this Confidential Information justifies the restrictions provided for in this Agreement.
For purposes of this Agreement, the term “Confidential Information” shall mean information that Santander owns or possesses, that Santander has developed, that it uses or that is potentially useful in the business of the Company, and/or that the Company treats as proprietary, private, or confidential. Confidential Information includes, but is not limited to, (a) inventions, ideas, processes, formulas, data, lists, programs, internal memos, other works of authorship, know-how, improvements, discoveries, trade secrets, developments, designs, and techniques relating to the business or proposed business of Santander; (b) information regarding plans for research, development, new products and services, marketing and selling, business plans, budgets and unpublished financial statements, licenses, prices and costs, suppliers, customer lists, cost structures, customer needs/preferences, the identity of Santander’s automotive dealer partners, and the terms of the relationship between Santander and the automotive dealerships; and (c) information regarding the skills and capabilities of other employees, consultants, vendors, and contractors for Santander that the Company desires to protect against disclosure or competitive use.
3.NON-DISCLOSURE OF CONFIDENTIAL INFORMATION. Employee agrees not to, either during or after Employee’s employment, use or disclose such Confidential Information for any reason other than in the performance of Employee’s duties.
Employee’s obligation not to disclose Confidential Information does not apply to information that: (a) is or becomes generally available to the public other than as a result of disclosure by Employee; or (b) Employee is legally required by law, subpoena, or judicial/regulatory process, provided, however, that in the event Employee is legally required to disclose such information, Employee agrees to provide the Company with prompt notice thereof so that the Company may, in the Company’s sole discretion, seek an appropriate protective order. 
4.RESTRICTIVE COVENANTS. Employee acknowledges that: (a) during Employee’s employment with Santander, Employee will obtain Confidential Information; (b) the Confidential Information has been developed and created by Santander at substantial expense and the Confidential Information constitutes valuable proprietary assets of the Company; (c) Santander will suffer substantial damage which will be difficult to compute if Employee should solicit or interfere with the Company’s employees, clients, customers, vendors, or suppliers or should divulge Confidential Information relating to the business of the Company; (d) the provisions of this Agreement are reasonable and necessary for the protection of Santander’s business and the Confidential Information; (e) Santander would not have provided Employee with Confidential Information unless Employee agreed to be bound by the terms hereof; and (f) the provisions of this Agreement will not preclude Employee from other gainful employment.
For these reasons, Employee agrees to the following restrictive covenants designed to protect the Confidential Information:
		
	(i)
	Non-Competition: Employee shall not, during the Restricted Period, without the prior written consent of Santander, directly or indirectly, on Employee’s behalf or on behalf of or in conjunction with others, as a contractor, agent, shareholder, owner, partner, director, officer, principal, member, employee, or in any other capacity or manner whatsoever, for Employee’s own benefit or for the benefit of any other person or entity, render services or advice to, accept employment with, lend Employee’s name or credit to, work for, participate in the ownership, management, operation, financing, or control of, an entity currently engaged in, or desiring to become engaged in, Competing Activities in the Restricted Area. Notwithstanding the foregoing, nothing in this Agreement restricts Employee from owning less than 1% of any class of securities of such entity as a passive investor, if such securities are listed on a national securities exchange. Employee understands that this provision does not restrict Employee from accepting any employment with any entity that does not engage in Competing Activities.

		
	(ii)
	Non-Solicitation: Employee shall not, during the Restricted Period, without the prior written consent of Santander, directly or indirectly, on Employee’s behalf or on behalf of or in conjunction with others, as a contractor, agent, shareholder, owner, partner, director, officer, principal, member, employee, or in any other capacity or manner whatsoever, solicit business from, attempt to transact business with, transact business with, or interfere with the Company’s relationship with any Customer or Prospective Customer, vendor, supplier, or contractor of the Company. This restriction applies only to business that is a Competitive Activity.

		
	(iii)
	Anti-Raiding: Employee shall not, during the Restricted Period, without the prior written consent of the Company, directly or indirectly, on Employee’s behalf or on behalf of or in conjunction with others, as a contractor, agent, shareholder, owner, partner, director, officer, principal, member, employee, or in any other capacity or manner whatsoever, directly or indirectly solicit for employment, employ, or otherwise engage as an employee, independent contractor, or otherwise, any person who is, or within the 12-month period immediately preceding the date of any such activity was, an employee or contractor engaged by the Company.

The term “Restricted Period” means during Employee’s employment with the Company and for a period of twelve (12) months thereafter.
The term “Restricted Area” means the United States.
The term “Competing Activity” means any business activity that involves or is related to providing vehicle finance and/or unsecured consumer lending products. 
The term “Customer or Prospective Customer” means any client or customer of the Company, or any person or entity with whom the Company has attempted to do business, within the 24-month period prior to the end of Employee’s employment. This term is limited to those clients, customers, persons, or entities: (1) with whom Employee had contact; or (2) about whom Employee received Confidential Information.
5.REMEDIES. Employee acknowledges and agrees that if Employee breaches any of the provisions of this Agreement, the Company will suffer immediate and irreparable harm for which monetary damages alone will not be a sufficient remedy, and that, in addition to all other remedies that the Company may have, the Company shall be entitled to seek injunctive relief, specific performance, and any other form of equitable relief to remedy a breach or threatened breach of this Agreement and to enforce the provisions of this Agreement. The existence of this right shall not preclude or otherwise limit the applicability or exercise of any other rights and remedies that the Company may have at law or in equity. Santander shall further be entitled to attorneys’ fees and costs associated with obtaining any legal or equitable remedies.
If Employee violates the restrictive covenants of this Agreement and the Company brings legal action for injunctive or other relief, then the Company will not be deprived of the benefit of the full Restricted Period as a result of the time involved in obtaining the relief. Accordingly, Employee agrees that the Restricted Period will have duration of the Restricted Period, and the regularly scheduled expiration date of such Restricted Period will be extended by the same amount of time that Employee is determined to have violated such covenant.
It is further agreed that such covenant will be regarded as divisible, and if any part of such covenant is declared invalid, unenforceable, or void as to time, area, or scope of activities, a court with appropriate jurisdiction shall be authorized to rewrite, substitute, and enforce provisions which are valid; and the validity and enforceability of this Agreement as modified will not be affected.
6.EXCLUSIVITY AND DUTY OF LOYALTY TO THE COMPANY’S INTEREST. Employee agrees that, during Employee’s employment with the Company, Employee shall:
		
	(a)
	Work for the best interest of the Company and make Employee’s services available only to the Company and not to Employee’s own account or for any other person or entity without the prior written consent of the Company;

		
	(b)
	Not engage in any activity which conflicts or interferes with the performance of any of the duties and/or responsibilities assigned to Employee by the Company;

		
	(c)
	Promptly disclose to the Company, and not divert, any business opportunities or prospective customers of which Employee becomes aware;

		
	(d)
	Promptly disclose any solicitation of any of the Company’s current, former, or prospective customers or employees by any competitor of the Company of which Employee becomes aware;

		
	(e)
	Not act to antagonize or oppose the interests of the Company; and

		
	(f)
	Not take advantage of any opportunity that Employee’s position may provide to profit beyond the agreed compensation and benefits.

7.OWNERSHIP OF WORK PRODUCT. Employee acknowledges that all discoveries, concepts, ideas, inventions, innovations, improvements, developments, methods, processes, programs, designs, analyses, drawings, reports, patent applications, copyrightable work and mask work (whether or not including any confidential information) and all registrations or applications related thereto, all other proprietary information, and all similar or related information (whether or not patentable) that relate to Santander’s actual or anticipated business, research and development, or existing or future products or services and that are conceived, developed, contributed to, made, or reduced to practice by Employee (either solely or jointly with others) while engaged or employed by the Company (including any of the foregoing that constitutes any proprietary information or records) (“Work Product”) belong to the Company, and Employee hereby assigns, and agrees to assign, all of the above Work Product to the Company. Any copyrightable work prepared in whole or in part by Employee in the course of Employee’s work for any of the foregoing entities shall be deemed a “work made for hire” under the copyright laws, and Santander shall own all rights therein. To the extent that any such copyrightable work is not a “work made for hire,” Employee hereby assigns and agrees to assign to Santander all right, title, and interest, including without limitation, copyright in and to such copyrightable work. Employee shall promptly disclose such Work Product and copyrightable work to the Company and perform all actions reasonably requested by the Company (whether during or after the term of Employee’s employment with the Company) to establish and confirm the Company’s ownership (including, without limitation, assignments, consents, powers of attorney, and other instruments).
8.RETURN OF MATERIALS. Upon the termination of Employee’s employment for any reason or upon the Company’s request at any time, Employee shall immediately return to Santander all of the Company’s property, including, but not limited to, mobile phone, personal digital assistant (PDA), keys, pass cards, credit cards, confidential or proprietary lists (including, but not limited to, customer, supplier, licensor, and client lists), rolodexes, tapes, laptop computer, software, computer files, marketing and sales materials, and any other property, record, document, or piece of equipment belonging to the Company. Employee will not (a) retain any copies of the Company’s property, including any copies existing in electronic form, which are in Employee’s possession, custody, or control or (b) destroy, delete, or alter any property of the Company, including, but not limited to, any files stored electronically, without the Company’s prior written consent. The obligations contained in this paragraph shall also apply to any property which belongs to a third party, including, but not limited to, the Company’s customers, licensors, or suppliers.
9.EMPLOYEE REPRESENTATIONS. Employee represents and warrants that: (a) Employee has full right, power, legal capacity and authority to enter into this Agreement; (b) neither the execution and delivery of this Agreement nor the performance of Employee’s duties as an employee of the Company, will breach, violate or (whether immediately or with the lapse of time or the giving of notice or both) constitute an event of default under, or require any consent or the giving of any notice under, any contract or instrument to which Employee is a party or by which Employee may be bound; and (c) Employee has disclosed to the Company all legal obligations, if any, owed to previous employers, and agrees not to improperly use or disclose any confidential information or trade secrets of any previous employers.
10.MISCELLANEOUS.
		
	(a)
	Governing Law. This Agreement is made under and shall be construed according to the laws of the State of Texas.

		
	(b)
	Construction. The parties understand and agree that, should any portion of any clause or paragraph of this Agreement be deemed too broad to permit enforcement to its fullest extent, or should any portion of any clause or paragraph of this Agreement be deemed unreasonable, then said clause or paragraph shall be reformed and enforced to the maximum extent permitted by law. In the event that such portion of any clause or paragraph is deemed incapable of reform, the offending language shall be severed, and the remaining terms and provisions of this Agreement shall remain unaffected, valid, and enforceable for all purposes.

		
	(c)
	Waiver. The waiver by either party of the breach of any of the terms and conditions of, or any right under this Agreement, shall not be deemed to constitute the waiver of any similar right. No such waiver shall be binding or effective unless expressed in writing and signed by the party giving such waiver. 

		
	(d)
	Entire Agreement. This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof. No oral statements or prior written material not specifically incorporated herein shall be of any force and effect, and no changes in or additions to this Agreement shall be recognized unless incorporated herein by written amendment, such amendment to become effective on the date stipulated therein. Employee acknowledges and represents that in executing this Agreement, Employee did not rely, and has not relied, on any communications, promises, statements, inducements, or representation(s), oral or written, by the Company, except as expressly contained in this Agreement. This Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors, heirs, legal representatives and permitted assigns (if any).

I, Reza Leaali, acknowledge that I have carefully read this entire Agreement and understand the nature and extent of the obligations I am assuming hereunder.

/s/- Reza Leaali    1/26/2018
________________________________________            __________________             Reza Leaali                                         DATE

FOR SANTANDER

________________________________________            __________________                                                                                            DATE
Name:                        
Title:                         

Additional Sign-On Bonus Conditions
I, Reza Leaali (“I,” “Me,” “My”, or “Myself”), hereby acknowledge that, Santander Consumer USA Inc. (“SC”), in connection with my employment offer, will provide to me with a sign-on bonus net of taxes or other withholdings, to be paid as indicated in my offer letter. 

I understand that if I voluntarily terminate my employment for any reason or if SC terminates my employment within one year of my effective Date of Hire, I will be responsible for reimbursing SC the full amount that was paid to me. 
To the extent permitted by applicable state law, I authorize SC to retain from any and all compensation otherwise payable to Me at the time of termination including, but not limited to, unpaid wages, bonuses, commissions, accrued and unused PTO or other leave to which I am entitled, the amount to which I owe SC. To the extent that the amount owed is greater than this amount, or if no such earnings are owed, I understand that I must remit this amount directly to SC within thirty (30) days. 
I understand that if I fail to remit payment in full within the thirty (30) day period, SC has the right to charge interest on the amount owed at the maximum rate allowed by law. I also understand that I will be responsible for any cost, fees or expenses (including attorney fees) incurred by SC related to any and all collection efforts. 

Your signature below represents your acceptance of our Sign-On Agreement. 

/s/- Reza Leaali                                                                                          1/26/2018

________________________________________            __________________             Reza Leaali                                         DATE

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