Document:

EX-10.51

 Exhibit 10.51 

Summary of MeadWestvaco Corporation 2015 Long-Term Incentive Plan 

Under the MeadWestvaco Corporation Long-Term Annual Incentive Plan (the “Plan”), which is a part of the 2005 Performance Incentive Plan, Amended and
Restated effective February 25, 2013, the Compensation and Organization Development Committee (the “Committee”) of the Board of Directors awards each executive a long-term incentive award that is payable entirely in equity, with no
cash component. The size of each executive officer’s long-term award is determined after review of external competitive market data, peer group and general industry trends. 

For 2015, approximately 70% of a senior executive’s long-term award is payable in the form of performance-based restricted stock units (“PSUs”)
and approximately 30% in the form of non-qualified stock options. Given the pending business combination with the Rock-Tenn Company (“Transaction”), the Committee established 2015 long-term performance goals based on a 6-month and 3-year
performance period. Payouts under the 2015 Long-Term Incentive Plan would be pro-rated based on the closing date of the Transaction and the achievement of performance goals, as determined by the Committee. 

The 6-month performance period includes the goal of earnings before interest and tax (“EBIT”). EBIT is defined as full year net sales less the cost
of goods sold and selling, general and administrative expenses, excluding interest income and expense, corporate income taxes, extraordinary items, discontinued operations, restructuring charges and certain one-time costs and the cumulative effect
of accounting changes. 
 The 3-year performance period, the Committee established a performance threshold of a minimum level of EBIT to serve as an
umbrella metric for the PSUs, which must be achieved during either 2015 or 2016. If the threshold level of EBIT is achieved, the Committee may vest PSUs for all executive officers based on the attainment of an additional key financial metric also
set by the Committee, enterprise economic profit during the three year performance period that begins January 1, 2015 and ends on December 31, 2017 (“Performance Period”). Enterprise economic profit (“EP”) is defined as
after-tax EBIT, less the company’s weighted average cost of capital applied to total capital employed, (net debt plus total shareholder equity) subject to certain adjustments. For the EP performance objective, the Committee sets performance
driven threshold, target and stretch payout levels reflecting a payout curve ranging from 50% of the target incentive to 200% of the target incentive. The Committee may adjust PSU award values to reflect progress made towards target performance
levels, provided that no PSU award shall vest in the event of performance below threshold goals. During the vesting period, dividends on unvested PSU awards are credited to an executive’s award in the form of additional units, but are only
delivered when and to the extent that the underlying award vests. 
 Stock options awarded under the Plan generally are subject to a three-year pro rata
vesting expiring on the third anniversary of the grant date. While there is no performance-based prerequisite to the vesting of stock options, in the event the market value of the common stock does not appreciate over the exercise price, the options
will have no value. The exercise price for stock options is not less than the “fair market value” of the common stock underlying the 

 
awards on the grant date. “Fair market value” is defined as the closing price of such common stock as reflected on the New York Stock Exchange on the grant date and is a term and
condition of all stock option awards approved by the Committee. No dividend rights attach to non-qualified stock options. 
 Both awards of PSUs and stock
options are subject to automatic forfeiture in the event of termination for gross misconduct and are subject to the company’s Recoupment Policy. 
 The
following are the terms and conditions applicable to the award of PSUs and stock options: 
 Terms and Conditions – PSUs 

 

	 	1.	Eligibility: Executive employees designated by the Compensation and Organization Development Committee (the “Committee”) as recommended by management shall be eligible to participate. 

 

	 	2.	Plan: Awards of performance-based restricted stock units (“PSUs”) shall be made under the 2005 MeadWestvaco Corporation Performance Incentive Plan, as amended (the “Plan”), and are subject in all
respects to the terms of the Plan. All terms of the Plan are hereby incorporated into these terms and conditions (the “Terms and Conditions”) by reference. Each capitalized term not defined herein has the meaning assigned to such term in
the Plan. The Committee shall have sole discretion to determine all issues with respect to Awards. 

  

	 	3.	Terms: A PSU Award will be evidenced by these Terms and Conditions pursuant to which MeadWestvaco Corporation (the “Company”) grants PSUs with respect to a specified number of Shares to the grantee subject to
the conditions set forth below. 

  

	 	4.	Date of Award: February 23, 2015 (the “Date of Award”) or any subsequent date on which an Award is made in 2015. 

  

	 	5.	Award Payment: The PSUs shall be contingent and shall vest and be payable if and to the extent that the performance goals set forth on the attached Exhibit A (the “Performance Goals”) are met and the
employment conditions and other conditions of these Terms and Conditions are met. 

  

	 	6.	Certificate Delivery: The grantee shall not be entitled to receive delivery of Shares underlying any vested portion of the Award until the payment date provided in these Terms and Conditions. 

 

	 	7.	Voting Rights: The grantee shall have no voting rights with respect to the PSU Award. 

  

	 	8.	Dividends: The grantee shall be credited with dividend equivalents as declared, which shall be converted to PSUs and ultimately settled in Shares at the same time and on the same terms as the underlying PSU Award.

  
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	 	9.	Automatic Forfeiture: PSUs will automatically be forfeited under the following circumstances: 

  

	 	a.	Employment of the grantee is terminated for “gross misconduct.” Gross misconduct is defined as (i) fraud, misappropriation or embezzlement; (ii) engaging in conduct that is demonstratively and
materially injurious to the Company; (iii) gross or intentional neglect of duties or responsibilities as an employee; or (iv) gross or intentional violation of the Company’s policies and procedures; or 

 

	 	b.	The grantee breaches any confidentiality, non-solicitation or non-competition covenant set forth on the attached Exhibit B or in any Restrictive Covenants Agreement betweem the grantee and the Company or an
affiliate. 

  

	 	c.	The Committee requires recoupment of the PSU Award in accordance with the Company Recoupment Policy. 

  

	 	d.	Failure to meet the Performance Goals. 

  

	 	10.	Restrictive Covenants: By accepting the PSU Award, the grantee agrees to comply with the confidentiality, non-solicitation and non-competition covenants set forth on the attached Exhibit B. If the grantee has a
written Restrictive Covenants Agreement with the Company or an affiliate, the grantee also agrees to continue to comply with the obligations under such Restrictive Covenants Agreement as a condition of grant of this PSU Award. 

 

	 	11.	Transferability: PSUs shall not be sold, transferred, assigned, pledged or otherwise encumbered or disposed. 

  

	 	12.	Performance Goals: The performance period with respect to the PSUs shall be January 1, 2015 through December 31, 2017 (the “Performance Period”) subject to Section 16, Change of Control. At the
end of the Performance Period, the Committee shall determine whether and to what extent the Performance Goals have been met and shall certify attainment of the Performance Goals. The Committee shall have the discretion to reduce (including to zero)
the number of PSUs that would otherwise vest upon attainment of the Performance Goals, based on such factors as the Committee deems appropriate. 

  

	 	13.	Vesting or Restriction Period: The PSUs shall vest, based on attainment of the Performance Goals during the Performance Period as determined by the Committee, provided the grantee continues to be employed by the Company
through the date on which the Committee certifies the Performance Goals have been attained (the “Vesting Date”). Except as otherwise provided below, if the grantee terminates employment prior to the Vesting Date, the PSUs shall be
cancelled and all rights of the grantee to the PSU Award shall terminate. 

  
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	 	14.	Termination of Employment: Subject to Section 16, if, prior to the Vesting Date, (i) the grantee terminates employment on account of death or disability (as defined below) or upon reaching retirement age (as
defined below) or (ii) the grantee’s employment is involuntarily terminated by the Company (other than for gross misconduct) by reason of a divestiture of a business of the Company, mutual agreement, or job elimination, and such
termination occurs after the first anniversary of the Date of Award, the grantee shall earn a pro-rata portion of the PSUs approved by the Committee. The pro-rata portion shall be determined as the number of PSUs calculated based on attainment of
the Performance Goals, multiplied by a fraction, the numerator of which is the number of completed full months from the Date of Award to the grantee’s termination date and the denominator of which is 36. The vested PSUs shall be paid as
described in Section 17 below. For purposes of this Award: 

  

	 	a.	The term “retirement age” shall mean on or after age 55 (with 20 years of service) or 65 or subject to the forfeiture provisions of Section 9 above; and 

 

	 	b.	The term “disability” shall mean permanently and totally disabled under the terms of the Company’s qualified retirement plans. 

 

	 	15.	Leave of Absence: In the event that the grantee is on an approved leave of absence, the grantee’s PSUs shall continue in effect in accordance with these terms during his or her leave of absence, subject to the
Committee’s discretion. 

  

	 	16.	Change of Control: If, prior to the Vesting Date, there is a Change of Control as defined in the Plan, as a result of the Business Combination Agreement between the Company and Rock-Tenn Company dated January 25,
2015, the grantee shall earn a pro-rata portion of the PSUs approved by the Committee (and the remaining PSUs shall be cancelled). The pro-rata portion shall be determined as the number of PSUs calculated based on attainment of the Performance Goals
established for a Change of Control (“COC Goals”) set forth on the attached Exhibit A, multiplied by a fraction, the numerator of which is the number of completed full months from January 1, 2015 to the effective date of the
Change of Control and the denominator of which is 36. The PSUs shall vest, based on attainment of the COC Goals during the Performance Period as determined by the Committee, and provided the grantee continues to be employed by the Company through
February 23, 2018 (the “Vesting Date”). If the grantee voluntarily terminates employment prior to the Vesting Date, the PSUs shall be cancelled and all rights of the grantee to the PSU Award shall terminate. If the grantee’s
employment terminates for any other reason (including death, disability or retirement but excluding gross misconduct, as these terms are defined above), the pro-rata portion of the PSU Award approved by the Committee shall vest and be paid as
described in Section 17 below. 

  

	 	17.	Payment Date: Payment of the grantee’s vested PSUs shall be made in Shares within 60 days after the Vesting Date, provided that all such payments shall be subject to compliance with the requirements of
Section 409A of the Internal Revenue Code. 

  
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	 	18.	Tax Withholding: The grantee is solely responsible for the satisfaction of all taxes and penalties that may arise in connection with the PSU Award. The grantee may satisfy any tax withholding obligations arising upon
settlement of the PSUs by (a) authorizing the Company to deduct from the grantee’s brokerage account the cash amount necessary to satisfy any tax withholding, (b) authorizing the Company to withhold Shares otherwise issuable as part
of the PSUs, (c) tendering Shares previously acquired to the Company, or (d) authorizing the Company to sell a portion of Shares otherwise issuable as part of the PSUs in an amount necessary to generate sufficient cash to satisfy the tax
withholding obligation. If the Company receives no instruction from the grantee with respect to alternative means to satisfy his or her tax withholding obligation, the obligation shall be satisfied by withholding Shares from the grantee’s PSUs.
Any Share withholding shall not exceed the minimum applicable withholding tax rate for federal (including FICA), state, local and foreign tax liabilities. 

  
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 Exhibit A - Performance Goals 

Performance Goals – Three Year Performance Period 
  

	 	1.	Two performance goals have been established by the Committee for the PSU Award. The EBIT goal must be met in order for any PSUs to vest under the EP goal. 

 

	 	a.	The EBIT goal is based on Earnings Before Interest and Taxes (“EBIT”). 

  

	 	•	 	Under the EBIT goal, the Company must achieve a specified level of EBIT during the fiscal year ending December 31, 2015 or during the fiscal year ending December 31, 2016. 

 

	 	•	 	If the EBIT goal is met, the PSUs may vest up to 200% of the target Award. If the EBIT goal is not met, no PSUs may vest. 

  

	 	b.	The EP goal is based on Cumulative Change in Economic Profit (“EP”). 

  

	 	•	 	The EP goal must be met during the three-year Performance Period that begins on January 1, 2015 and ends on December 31, 2017. 

If the EBIT goal is met, the Committee will determine whether and to what extent the EP goal is met and the number of PSUs that may vest based
on achievement of the Performance Goals. The amount may be reduced by the Committee as provided in the Terms and Conditions. The amount that may vest based on achievement of the EP goal may not exceed the maximum amount determined based on
achievement of the EBIT goal. 
 Performance Goals – Six Month Performance Period 

 

	 	2.	One performance goal has been established by the Committee for the PSU Award. 

 The EBIT goal is
based on Earnings Before Interest and Taxes (“EBIT”). If the EBIT goal is met, the PSUs may vest up to 200% of the target Award. If the EBIT goal is not met, no PSUs may vest. 

 

	 	3.	Earnings Before Interest and Taxes 

 Earnings Before Interest and Taxes (EBIT) is defined as
full year net sales less the cost of goods sold and Selling, General and Administrative expenses (SG&A), excluding interest income and expense, corporate income taxes, extraordinary items, discontinued operations, restructuring charges and
certain one-time costs and the cumulative effect of accounting changes. EBIT will be determined by the Committee based on the Company’s financial statements. 
  

	 	4.	Economic Profit 

 Enterprise Economic Profit (EP) is a measure of performance that is defined as
after-tax EBIT, less the Company’s weighted average cost of capital applied to the capital employed (net of debt plus total shareholder equity). 

  
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 Adjustments are made for pension (asset, income and liability), historical (pre-2010) good will
and intangibles (asset, expense and liability), and non-operational items such as restructuring charges; after-tax EBIT is calculated using a planned operations tax rate. EBIT will be determined by the Committee based on the Company’s financial
statements. 
 Cumulative Change in EP measures the change in EP between two periods. Cumulative Change in EP will be measured by comparing
the baseline EP for the fiscal year ending December 31, 2014 to the EP for the fiscal year ending December 31, 2017 
 At the end
of the Performance Period, the Committee will determine the Cumulative Change in EP and will apply that number to the schedule described above. The “Percent of Target Award” indicates the percentage of the grantee’s target Award of
PSUs that are eligible for vesting based on attainment of the EP goal, as described in the Terms and Conditions. 
  

	 	5.	Committee Discretion 

 The Committee shall have the discretion to reduce the PSU Award that
would otherwise vest upon the attainment of the Performance Goals (assuming EBIT threshold is met), based on such factors as the Committee deems appropriate. 

  
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 Exhibit B - Restrictive Covenants 

By accepting this PSU Award, the grantee agrees to comply with the following terms: 

Confidential Information 
  

	 	a.	For purposes of this Award letter, the term “Confidential Information” shall mean information that the Company or any of its affiliates owns or possesses, that the Company or its affiliates have
developed at significant expense and effort, that they use or that is potentially useful in the business of the Company or its affiliates, that the Company or its affiliates treat as proprietary, private or confidential, and that is not generally
known to the public. Confidential information includes, but is not limited to, information that qualifies as a trade secret under applicable law. The grantee acknowledges that the grantee’s relationship with the Company is one of confidence and
trust such that the grantee has in the past been, and may in the future be, privy to Confidential Information of the Company or its affiliates. 

  

	 	b.	The grantee hereby covenants and agrees at all times during employment with the Company and its affiliates and thereafter to hold in strictest confidence, and not to use, any Confidential Information, except for the
benefit of the Company, and not to disclose any Confidential Information to any person or entity without written authorization of the Company, except as otherwise required by law. 

Non-Solicitation 
  

	 	a.	The grantee covenants and agrees that during the grantee’s employment with the Company and its affiliates, and during the 12 month period following the grantee’s termination of employment for any reason (the
“Restricted Period”), the grantee shall not, directly or indirectly, (i) solicit, hire or attempt to hire any employee of the Company or any of its affiliates as an employee, consultant or independent contractor of the grantee
or any other person or business entity, or (ii) solicit any employee, consultant or independent contractor of the Company or any of its affiliates to change or terminate his or her relationship with the Company or any of its affiliates, unless
in each case more than six months shall have elapsed between the last day of such person’s employment or service with the Company or any of its affiliates and the first date of such solicitation or hiring. 

 

	 	b.	The grantee covenants and agrees that during the grantee’s employment with the Company and its affiliates and during the Restricted Period, the grantee shall not, either directly or indirectly: 

 

	 	(i)	solicit or do business with, or attempt to solicit or do business with, any customer with whom the grantee had material contact, or about whom the grantee received Confidential Information within 12 months prior to the
grantee’s date of termination for the purpose of providing such customer with services or products competitive with those offered by the Company or any of its affiliates during the grantee’s employment with the Company or its affiliates,
or 

  
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	 	(ii)	encourage any customer with whom the grantee had material contact, or about whom the grantee received Confidential Information within 12 months prior to the grantee’s date of termination to reduce the level or
amount of business such customer conducts with the Company or any of its affiliates. 

 Non-Competition 

The grantee covenants and agrees that during the grantee’s employment with the Company and its affiliates and during the Restricted Period, the grantee
will not, without the Company’s express written consent, in any geographic area in which the grantee had responsibility within the last two years prior to the grantee’s termination of employment where the Company or its affiliates do
business, directly or indirectly in the same or similar capacity to the services the grantee performed for the Company; 
  

	 	(i)	own, maintain, finance, operate, invest or engage in any business that competes with the businesses of the Company and its affiliates in which the grantee was materially involved during the two years prior to the
grantee’s termination; or 

  

	 	(ii)	provide services, as an employee, consultant, independent contractor, agent or otherwise, to any business that competes with the Company and its affiliates in businesses in which the grantee was materially involved
during the two years prior to the grantee’s termination. 

 Notwithstanding the foregoing, the grantee may invest in or have an interest
in entities traded on any public market, provided that such interest does not exceed five percent of the voting control of such entity. 
 Other
Acknowledgements and Agreements 
 The grantee acknowledges and agrees that in the event the grantee breaches any of the covenants or agreements contained
in this Exhibit B: 
  

	 	(i)	The Company may in its discretion determine that the grantee shall forfeit the outstanding PSUs (without regard to whether the PSUs have vested), and the outstanding PSUs shall immediately terminate, and

  

	 	(ii)	The Company may in its discretion require the grantee to return to the Company any cash or Shares received upon distribution of the PSUs under this Award. The Committee shall exercise the right of recoupment provided in
this section (b) within one year after the Company’s discovery of the grantee’s breach of the covenants or agreements contained in this Exhibit B. 

If any portion of the covenants or agreements contained in this Exhibit B, or the application hereof, is construed to be invalid or unenforceable, the
other portions of such covenants or agreements or the application thereof shall not be affected and shall be given full force and effect without regard to the invalid or unenforceable portions to the fullest extent possible. If any covenant or
agreement in this Exhibit B is held to be unenforceable because of the duration thereof or the scope thereof, then the court making such determination shall have the power to reduce the duration and limit the scope thereof, and the covenant
or agreement shall then be enforceable in its reduced form. The covenants and agreements contained in this Exhibit B shall survive the termination of these terms and conditions. 

  
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 Terms and Conditions – Stock Options 

 

	1.	Eligibility: Executive employees designated by the Compensation and Organization Development Committee (the “Committee”) as recommended by management shall be eligible to participate. 

 

	2.	Plan: Awards of stock options (“Options”) shall be made under the 2005 MeadWestvaco Corporation Performance Incentive Plan, as amended (the “Plan”), and are subject in all respects to the terms of
the Plan. All terms of the Plan are hereby incorporated into these terms and conditions (the “Terms and Conditions”) by reference. Each capitalized term not defined herein has meaning assigned to such term in the Plan. The Committee shall
have sole discretion to determine all issues with respect to Awards. 

  

	3.	Terms: An Option Award will be evidenced by these Terms and Conditions pursuant to which MeadWestvaco Corporation (the “Company”) grants an Option with respect to a specified number of Shares to the grantee
subject to the conditions set forth below. Any Option Award shall be granted in the form of a Non-Qualified Stock Option. 

  

	4.	Date of Award: February 23, 2015 (the “Date of Award”) or any subsequent date on which an Award is made in 2015. 

  

	5.	Exercise Price: The exercise price of any Shares subject to an Option Award shall be the Market Price of such Shares on the Date of Award. Market Price shall be determined by calculating the closing price of a Share as
traded and reported by the New York Stock Exchange. 

  

	6.	Award Term: The Option shall be contingent and shall vest and be exercisable if and to the extent that the employment conditions and other conditions in these Terms and Conditions are met. The Option may not be
exercised after ten (10) years from the Date of Award. 

  

	7.	Vesting: An Option Award will vest in equal 1/3 increments on the anniversary dates of the Date of Award, beginning on the first anniversary of the Date of Award. Except as otherwise provided below, if the grantee
terminates employment prior to the becoming fully vested in the Option Award, the unvested portion of the Option Award shall be forfeited and all rights of the grantee to the unvested Option Award shall terminate. 

 

	8.	Exercise Method: The Company will provide instructions to the grantee for how to exercise the Option, pay the exercise price and pay applicable taxes. 

 

	9.	Automatic Forfeiture: An Option Award, whether vested or unvested, will automatically be forfeited under the following circumstances: 

 

	 	a.	Employment of the grantee is terminated for “gross misconduct.” Gross misconduct is defined as (i) fraud, misappropriation or embezzlement; (ii) engaging in conduct that is demonstratively and
materially injurious to the Company; (iii) gross or intentional neglect of duties or responsibilities as an employee; or (iv) gross or intentional violation of the Company’s policies and procedures. 

  
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	 	b.	The grantee breaches any confidentiality, non-solicitation or non-competition covenant set forth on the attached Exhibit A or in any Restrictive Covenants Agreement between the grantee and the Company or an
affiliate. 

  

	 	c.	The Committee requires recoupment of the Option Award in accordance with the Company Recoupment Policy. 

  

	10.	Restrictive Covenants: By accepting the Option Award, the grantee agrees to comply with the confidentiality, non-solicitation and non-competition covenants set forth on the attached Exhibit A. If the grantee has
a written Restrictive Covenants Agreement with the Company or an affiliate, the grantee also agrees to continue to comply with the obligations under such Restrictive Covenants Agreement as a condition of grant of this Option Award.

  

	11.	Termination of Employment: Any Option Award shall be subject to the following provisions relating to the exercise of the Option Award subsequent to termination of employment, subject to Section 9 above and the
requirement that an Option cannot be exercised after ten (10) years from the Date of Award: 

  

	 	a.	In the event of involuntary termination of employment with the Company or any of its affiliates (other than for gross misconduct) by reason of a divestiture of a business of the Company, mutual agreement, or job
elimination, the unvested portion of the Option Award shall be forfeited and the right to exercise the vested portion of the Option Award shall expire two (2) years after the date of such termination. If termination is for any other reason,
other than death, disability (as defined below) or retirement (as defined below), the right to exercise the vested portion of the Option Award expires ninety (90) days after the date of termination. 

 

	 	b.	In the event of termination of employment due to disability, the unvested portion of the Option Award shall immediately vest and the right to exercise the vested portion of the Option Award shall expire three
(3) years after the date of such termination. The term “disability” shall mean permanently and totally disabled under the terms of the Company’s qualified retirement plans. 

 

	 	c.	In the event of termination of employment upon reaching retirement age, the Option Award shall be treated as follows: 

  

	 	i.	For a termination of employment on or after 65 or age 62 (with 20 years of service), the unvested portion of the Option Award shall immediately vest and the right to exercise the vested portion of the Option Award shall
expire ten (10) years after the Date of Award. 

  

	 	ii.	For a termination of employment on or after age 55 (with 20 years of service), the unvested portion of the Option Award shall continue to vest after termination and the right to exercise the vested portion of the Option
Award shall expire upon the earlier of five (5) years from the date of termination or ten (10) years after the Date of the Award. 

  
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	 	d.	In the event of termination of employment due to death, the unvested portion of the Option Award shall immediately vest and the right to exercise the vested portion of the Option Award shall expire three (3) years
after the date of death. In the case of death following retirement, the Committee shall have the discretion, as permitted by law, to alleviate any hardship on an estate’s ability to exercise any Non-Qualified Stock Option. In case the employee
is deceased, the Option Award is exercisable by the grantee’s personal representative (executor or administrator) heirs or legatees. 

  

	12.	Leave of Absence: In the event that a grantee is on an approved leave of absence, the grantee’s Option shall continue in accordance with its terms during his or her leave of absence, subject to the Committee’s
discretion. 

  

	13.	Change of Control: If, prior to the Vesting Date, there is a Change of Control as defined in the Plan, as a result of the Business Combination Agreement between the Company and Rock-Tenn Company dated January 25,
2015, the grantee shall earn a pro-rata portion of the Option Award approved by the Committee (and the remaining Option Award shall be cancelled). The pro-rata portion shall be determined as the number of the Option Award multiplied by a fraction,
the numerator of which is the number of completed full months from January 1, 2015 to the effective date of the Change of Control and the denominator of which is 36. The pro-rata Option Award shall vest as provided in Section 7, subject to
the following. If the grantee voluntarily terminates employment prior to the becoming fully vested in the Option Award, the unvested portion of the Option Award shall be forfeited and all rights of the grantee to the unvested Option Award shall
terminate. If the grantee’s employment terminates for any other reason (including death, disability or retirement but excluding gross misconduct, as these terms are defined above), the Option Award shall fully vest. 

 

	14.	Transferability: To the extent permitted by law, Non-qualified Stock Options may be transferred to immediate family members and to charities described in Sections 170(c), 2055(a) and 2552(a) of the Code, with the
restriction that any attempted further transfer shall be void. 

  

	15.	Tax Withholding: The grantee is solely responsible for the satisfaction of all taxes and penalties that may arise in connection with the Option Award. The grantee may satisfy any tax withholding obligations arising with
respect to the Option by (a) authorizing the Company to deduct from the grantee’s brokerage account the necessary cash to satisfy the tax withholding, (b) authorizing the Company to withhold Shares otherwise issuable as part of the
Option, as applicable, (c) tendering Shares previously acquired to the Company, or (d) authorizing the Company to sell a portion of Shares otherwise issuable as part of the Option in an amount necessary to generate sufficient cash to
satisfy the withholding obligation, as applicable. If the Company receives no instruction from the grantee with respect to alternative means to satisfy his or her tax withholding obligation, the obligation shall be satisfied by withholding Shares
from the grantee’s Option. Any share withholding shall not exceed the minimum applicable withholding tax rate for federal (including FICA), state, local and foreign tax liabilities. 

  
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 Exhibit A - Restrictive Covenants 

By accepting this Option Award, the grantee agrees to comply with the following terms: 

Confidential Information 
  

	a.	For purposes of this Award, the term “Confidential Information” shall mean information that the Company or any of its affiliates owns or possesses, that the Company or its affiliates have developed at
significant expense and effort, that they use or that is potentially useful in the business of the Company or its affiliates, that the Company or its affiliates treat as proprietary, private or confidential, and that is not generally known to the
public. Confidential Information includes, but is not limited to, information that qualifies as trade secret under applicable law. The grantee acknowledges that the grantee’s relationship with the Company is one of confidence and trust such
that the grantee has in the past been, and may in the future be, privy to Confidential Information of the Company or its affiliates. 

  

	b.	The grantee hereby covenants and agrees at all times during employment with the Company and its affiliates and thereafter to hold in strictest confidence, and not to use, any Confidential Information, except for the
benefit of the Company, and not to disclose any Confidential Information to any person or entity without written authorization of the Company, except as otherwise required by law. 

Non-Solicitation 
  

	a.	The grantee covenants and agrees that during the grantee’s employment with the Company and its affiliates, and during the 12 month period following the grantee’s termination of employment for any reason (the
“Restricted Period”), the grantee shall not, directly or indirectly, (i) solicit, hire or attempt to hire any employee of the Company or any of its affiliates as an employee, consultant or independent contractor of the grantee
or any other person or business entity, or (ii) solicit any employee, consultant or independent contractor of the Company or any of its affiliates to change or terminate his or her relationship with the Company or any of its affiliates, unless
in each case more than six months shall have elapsed between the last day of such person’s employment or service with the Company or any of its affiliates and the first date of such solicitation or hiring. 

 

	b.	The grantee covenants and agrees that during the grantee’s employment with the Company and its affiliates and during the Restricted Period, the grantee shall not, either directly or indirectly: 

 

	 	(i)	solicit or do business with, or attempt to solicit or do business with, any customer with whom the grantee had material contact, or about whom the grantee received Confidential Information within 12 months prior to the
grantee’s date of termination for the purpose of providing such customer with services or products competitive with those offered by the Company or any of its affiliates during the grantee’s employment with the Company or its affiliates,
or 

  
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	 	(ii)	encourage any customer with whom the grantee had material contact, or about whom the grantee received Confidential Information within 12 months prior to the grantee’s date of termination to reduce the level or
amount of business such customer conducts with the Company or any of its affiliates. 

 Non-Competition 

The grantee covenants and agrees that during the grantee’s employment with the Company and its affiliates and during the Restricted Period, the grantee
will not, without the Company’s express written consent, in any geographic area in which the grantee had a responsibility within the last two years prior to the grantee’s termination of employment where the Company or its affiliates do
business, directly or indirectly in the same or similar capacity to the services the grantee performed for the Company: 
  

	 	(i)	own, maintain, finance, operate, invest or engage in any business that competes with the businesses of the Company and its affiliates in which the grantee was materially involved during the two years prior to the
grantee’s termination; or 

  

	 	(ii)	provide services, as an employee, consultant, independent contractor, agent or otherwise, to any business that competes with the Company and its affiliates in businesses in which the grantee was materially involved
during the two years prior to the grantee’s termination. 

 Notwithstanding the foregoing, the grantee may invest in or have an interest
in entities traded on any public market, provided that such interest does not exceed five percent of the voting control of such entity. 
 Other
Acknowledgements and Agreements 
 The grantee acknowledges and agrees that in the event the grantee breaches any of the covenants or agreements contained
in this Exhibit A: 
  

	 	(i)	The Company may determine that the grantee shall forfeit the outstanding stock options (without regard to whether the stock options have vested), and the outstanding stock options shall immediately terminate, and

  

	 	(ii)	The Company may require the grantee to return to the Company any cash or shares of Company stock received upon exercise of the stock option, net of the exercise price paid by the grantee upon exercise of the stock
option; provided, that if the grantee has disposed of any shares of Company stock received upon exercise of the stock option, then the Committee may require the grantee to pay to the Company, in cash, the fair market value of such shares of Company
stock as of the date of disposition, net of the exercise price paid by the grantee upon exercise of the stock option. The Company shall exercise the right of recoupment provided in this section (a) within one year after the Company’s
discovery of the grantee’s breach of the covenants or agreements contained in this Exhibit A. 

  
 14 

 If any portion of the covenants or agreements contained in this Exhibit A, or the application hereof, is
construed to be invalid or unenforceable, the other portions of such covenants or agreements or the application thereof shall not be affected and shall be given full force and effect without regard to the invalid or unenforceable portions to the
fullest extent possible. If any covenant or agreement in this Exhibit A is held to be unenforceable because of the duration thereof or the scope thereof, then the court making such determination shall have the power to reduce the duration and
limit the scope thereof, and the covenant or agreement shall then be enforceable in its reduced form. The covenants and agreements contained in this Exhibit A shall survive the termination of this Award. 

  
 15egbn20150331_10q.htm

Exhibit 10.25

 

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the 1st day of November, 2014, by and between EagleBank, a Maryland chartered commercial bank (the “Bank”), and Charles C. Brockett (“Executive”).

 

RECITALS:

The Bank has retained Executive as Executive Vice President and Director of Operations of the Bank and the parties desire to state their agreement in its entirety.

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.     Employment. The Bank agrees to employ Executive, and Executive agrees to be employed as Executive Vice President and Director of Operations of the Bank, subject to the terms and provisions of this Agreement.

 

2.     Certain Definitions. As used in this Agreement, the following terms have the meanings set forth below:

 

2.1     “Affiliate” means, with respect to any Person, (i) any Person directly or indirectly controlling, controlled by or under common control with such Person, (ii) any Person owning or controlling fifty percent (50%) or more of the outstanding voting interests of such Person, (iii) any officer, director, general partner, managing member, or trustee of, or Person serving in a similar capacity with respect to, such Person, or (iv) any Person who is an officer, director, general partner, member, trustee, or holder of fifty percent (50%) or more of the voting interests of any Person described in clauses (i), (ii), or (iii) of this sentence. For purposes of this definition, the terms "controlling," "controlled by," or "under common control with" shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

2.2     “Bancorp” means Eagle Bancorp, Inc., a Maryland corporation.

 

2.3     “Bank” is defined in the Recitals. If the Bank is merged into any other Entity, or transfers substantially all of its business operations or assets to another Entity, the term “Bank” shall be deemed to include such successor Entity for purposes of applying Article 8 of this Agreement.

 

2.4     “Bank Entities” means and includes any of the Bank, Bancorp and their Affiliates.

 

2.5     “Bank Regulatory Agency” means any governmental authority, regulatory agency, ministry, department, statutory corporation, central bank or other body of the United States or of any other country or of any state or other political subdivision of any of them having jurisdiction over the Bank or any transaction contemplated, undertaken or proposed to be undertaken by the Bank, including, but not necessarily be limited to:

 

(a)     the Federal Deposit Insurance Corporation or any other federal or state depository insurance organization or fund;

 

(b)     the Federal Reserve System, the Maryland Division of Financial Institutions, or any other federal or state bank regulatory or commissioner’s office;

 

(c)     any Person established, organized, owned (in whole or in part) or controlled by any of the foregoing; and

 

(d)     any predecessor, successor or assignee of any of the foregoing.

 

 

 

 

 

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2.6     “Board” means the Board of Directors of the Bank.

 

2.7     “Code” means the Internal Revenue Code of 1986, as amended.

 

2.8     “Competitive Business” means the banking and financial services business, which includes, without limitation, consumer savings, commercial banking, the insurance and trust business, the savings and loan business and mortgage lending, or any other business in which any of the Bank Entities is engaged or has invested significant resources within the prior six (6) month period in preparation for becoming actively engaged.

 

2.9     “Competitive Products or Services” means, as of any time, those products or services of the type that any of the Bank Entities is providing, or is actively preparing to provide, to its customers.

 

2.10     “Disability” means a mental or physical condition which, in the good faith opinion of the Board, renders Executive, with or without reasonable accommodation, unable or incompetent to carry out the essential functions of the position or the material job responsibilities which Executive held or the material duties to which Executive was assigned at the time the disability was incurred, which has existed for at least three (3) months and which in the opinion of a physician mutually agreed upon by the Bank and Executive (provided that neither party shall unreasonably withhold such agreement) is expected to be permanent or to last for an indefinite duration or a duration in excess of nine (9) months.

 

2.11     “Expiration Date” means August 31, 2017.

 

2.12     “Person” means any individual or Entity.

 

2.13     “Section 409A” means Section 409A of the Code and the regulations and administrative guidance promulgated thereunder.

 

2.14     “Termination Date” means the Expiration Date or such earlier date on which the Term expires pursuant to Section 3.1 or is terminated pursuant to Section 7.2, 7.3, 7.4, 7.5, 9.2 or 9.3, as applicable.

 

Other terms are defined throughout this Agreement and have the meanings so given them.

 

3.     Term; Position.

 

3.1     Term. Executive’s employment hereunder shall continue until the Expiration Date, unless extended in writing by both the Bank and Executive or sooner terminated in accordance with the provisions of this Agreement (the “Term”). 

 

3.2     Position. The Bank shall employ Executive to serve as Executive Vice President and Director of Operations of the Bank.

 

3.3     No Restrictions. Executive represents and warrants to the Bank that Executive is not subject to any legal obligations or restrictions that would prevent or limit Executive’s entering into this Agreement and performing Executive’s responsibilities hereunder.

 

4.     Duties of Executive.

 

4.1      Nature and Substance. Executive shall report directly to and shall be under the direction of the Chairman of the Board or the Chairman’s designee. The specific powers and duties of Executive shall be established, determined and modified by and within the discretion of the Board.

 

 

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4.2     Performance of Services. Executive agrees to devote Executive’s full business time and attention to the performance of Executive’s duties and responsibilities under this Agreement, and shall use Executive’s best efforts and discharge Executive’s duties to the best of Executive’s ability for and on behalf of the Bank and toward its successful operation. Executive agrees that, without the prior written consent of the Board, he will not during the Term, directly or indirectly, perform services for or obtain a financial or ownership interest in any other Entity (an “Outside Arrangement”) if such Outside Arrangement would interfere with the satisfactory performance of Executive’s duties to the Bank, present a conflict of interest with the Bank and/or Bancorp, breach Executive’s duty of loyalty or fiduciary duties to the Bank and/or Bancorp, or otherwise conflict with the provisions of this Agreement. Executive shall promptly notify the Board of any Outside Arrangement, provide the Bank with any written agreement in connection therewith and respond fully and promptly to any questions that the Board may ask with respect to any Outside Arrangement. If the Board determines that Executive’s participation in an Outside Arrangement would interfere with Executive’s satisfactory performance of Executive’s duties to the Bank, present a conflict of interest with the Bank and/or Bancorp, breach Executive’s duty of loyalty or fiduciary duties to the Bank and/or Bancorp, or otherwise conflict with the provisions of this Agreement, Executive shall not undertake, or shall cease, such Outside Arrangement as soon as feasible after the Board notifies him of such determination. Notwithstanding any provision hereof to the contrary, this Section 4.2 does not restrict Executive’s right to own securities of any Entity that files periodic reports with the Securities and Exchange Commission under Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended; provided that Executive’s total ownership constitutes less than two percent (2%) of the outstanding securities of such company.

 

4.3     Compliance with Law. Executive shall comply with all laws, statutes, ordinances, rules and regulations relating to Executive’s employment and duties. 

 

5.      Compensation; Benefits. As full compensation for all services rendered pursuant to this Agreement and the covenants contained herein, the Bank shall pay to Executive the following:

 

5.1     Salary. Through the end of the Term, Executive shall be paid a salary (“Salary”) of Two Hundred and Eighty-Five Thousand Dollars ($285,000) on an annualized basis. The Bank shall pay Executive’s Salary in equal installments in accordance with the Bank’s regular payroll periods as may be set by the Bank from time to time. Executive’s Salary may be further increased from time to time, at the discretion of the Board. Executive may also be entitled to certain incentive bonus payments as determined by Board approved incentive plans.

 

5.2     Withholding. Payments of Salary shall be subject to the customary withholding of income and other employment taxes as is required with respect to compensation paid by an employer to an employee.

 

5.3     Vacation and Leave. Executive shall be entitled to such vacation and leave as may be provided for under the current and future leave and vacation policies of the Bank for executive officers.

 

5.4     Office Space. The Bank will provide customary office space and office support to Executive.

 

5.5     Parking. Paid parking at Executive’s regular worksite will be provided by the Bank at its expense.

 

5.6     Car Allowance. The Bank will pay Executive a monthly car allowance of Seven Hundred fifty Dollars ($750).

 

5.7     Non-Life Insurance. The Bank will provide Executive with group health, disability and other insurance as the Bank may determine appropriate for all employees of the Bank.

 

5.8     Life Insurance.

 

 

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5.8.1     Executive may obtain a term life insurance policy (the “Policy”) on Executive in the amount of Seven Hundred Fifty Thousand Dollars ($750,000.00), the particular product and carrier to be chosen by Executive in Executive’s discretion. Executive shall have the right to designate the beneficiary of the Policy. If the Policy is obtained, Executive shall provide the Bank with a copy of the Policy, and the Bank will pay, during the Term of this Agreement, the premiums for the Policy upon submission by Executive to the Bank of the invoices therefor. In the event Executive is rated and the premium exceeds the standard rate for a Seven Hundred Fifty Thousand Dollar ($750,000.00) policy, the Policy amount shall be lowered to the maximum amount that can be purchased at the standard rate for a Seven Hundred Fifty Thousand Dollar ($750,000.00) policy. For example, if Executive is rated and the standard rate for a Seven Hundred Fifty Thousand Dollar ($750,000.00) policy would acquire a Five Hundred Thousand Dollar ($500,000.00) policy, the Bank would only be required to pay the premium for a Five Hundred Thousand Dollar ($500,000.00) policy. If a Policy is obtained and it is cancelled or terminated, Executive shall immediately notify the Bank of such cancellation or termination.

 

5.8.2     The Bank may, at its cost, obtain and maintain "key-man" life insurance and/or Bank-owned life insurance on Executive in such amount as determined by the Board from time to time. Executive agrees to cooperate fully and to take all actions reasonably required by the Bank in connection with such insurance.

 

5.9     Expenses. The Bank shall, promptly upon presentation of proper expense reports therefor, pay or reimburse Executive, in accordance with the policies and procedures established from time to time by the Bank for its officers, for all reasonable and customary travel (other than local use of an automobile for which Executive is being provided the car allowance) and other out-of-pocket expenses incurred by Executive in the performance of Executive’s duties and responsibilities under this Agreement and promoting the business of the Bank, including approved membership fees, dues and the cost of attending business related seminars, meetings and conventions.

 

5.10     Retirement Plans. Executive shall be entitled to participate in any and all qualified pension or other retirement plans of the Bank which may be applicable to personnel of the Bank.

 

5.11      Other Benefits. While this Agreement is in effect, Executive shall be entitled to all other benefits that the Bank provides from time to time to its officers and such other benefits as the Board may from time to time approve for Executive, subject to applicable eligibility requirements.

 

5.12      Eligibility. Participation in any health, life, accident, disability, medical expense or similar insurance plan or any qualified pension or other retirement plan shall be subject to the terms and conditions contained in such plan as amended from time to time in the Bank’s sole discretion. All matters of eligibility for benefits under any insurance plans shall be determined in accordance with the provisions of the applicable insurance policy issued by the applicable insurance company.

 

5.13     Equity Compensation. Executive shall be eligible to receive awards of options, SARs and /or Restricted Stock under the 2006 Stock Plan of Bancorp, from time to time, at the discretion of the 2006 Plan Committee or Compensation Committee of the Board of Directors of Bancorp. 

 

6.     Conditions Subsequent to Continued Operation and Effect of Agreement.

 

6.1     Continued Approval by Bank Regulatory Agencies. This Agreement and all of its terms and conditions, and the continued operation and effect of this Agreement and the Bank’s continuing obligations hereunder, shall at all times be subject to the continuing approval of any and all Bank Regulatory Agencies whose approval is a necessary prerequisite to the continued operation of the Bank. Should any term or condition of this Agreement, upon review by any Bank Regulatory Agency, be found to violate or not be in compliance with any then-applicable statute or any rule, regulation, order or understanding promulgated by any Bank Regulatory Agency, or should any term or condition required to be included herein by any such Bank Regulatory Agency be absent, this Agreement may be rescinded and terminated by the Bank if the parties hereto cannot in good faith agree upon such additions, deletions or modifications as may be deemed necessary or appropriate to bring this Agreement into compliance.

 

7.     Termination of Agreement. Prior to the Expiration Date, the Term of this Agreement may be terminated as provided below in this Article 7.

 

 

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7.1     Definition of Cause. For purposes of this Agreement, “Cause” means:

 

(a)     any act of theft, fraud, intentional misrepresentation of a material matter, personal dishonesty or breach of fiduciary duty or similar conduct by Executive with respect to any of the Bank Entities or the services to be rendered by him under this Agreement;

(b)     any failure of this Agreement to comply with any Bank Regulatory Agency requirement which is not cured in accordance with Section 6.1 within a reasonable period of time after written notice thereof;

 

(c)     any Bank Regulatory Agency action or proceeding against Executive as a result of Executive’s negligence, fraud, malfeasance or misconduct;

 

(d)     indictment of Executive for, or Executive’s conviction of or plea of nolo contendere at the trial court level to, a felony, or any crime of moral turpitude, or involving dishonesty, deception or breach of trust;

 

(e)     any of the following conduct on the part of Executive that has not been corrected or cured by Executive within thirty (30) days after having received written notice from the Bank describing such conduct (provided, however, that the Bank shall not be required to provide Executive with notice and opportunity to cure more than two (2) times in any twelve (12) month period):

 

(i)     habitual absenteeism, or the failure by or the inability of Executive to devote full time and attention to the performance of Executive’s duties pursuant to this Agreement (other than by reason of Executive’s death or Disability); or

 

(ii)     intentional material failure by Executive to carry out the stated lawful and reasonable directions, instructions, policies, rules, regulations or decisions of the Board which are consistent with Executive’s position; or

 

(iii)     any action (including any failure to act) or conduct by Executive in violation of a material provision of this Agreement (including but not limited to the provisions of Article 8 hereof, which shall be deemed to be material); or

 

(f)     the use of drugs, alcohol or other substances by Executive to an extent which materially interferes with or prevents Executive from performing Executive’s duties under this Agreement;

 

(g)     the determination by the Board, in the exercise of its reasonable judgment and in good faith, that Executive’s job performance is substantially unsatisfactory and that he has failed to cure such performance within a reasonable period (but in no event more than thirty (30) days) after written notice specifying in reasonable detail the nature of the unsatisfactory performance; or

 

(h)     Executive’s commission of unethical business practices, acts of moral turpitude, financial impropriety, fraud or dishonesty in any material matter which the Board in good faith determines could adversely affect the reputation, standing or financial prospects of the Bank or its Affiliates; or

 

(i)     willful or intentional misconduct on the part of Executive that results, or that the Board in good faith determines may result, in substantial injury to the Bank or any of its Affiliates.

 

7.2     Termination by the Bank for Cause. After the occurrence of any of the conditions specified in Section 7.1, the Bank shall have the right to terminate the Term for Cause on written notice to Executive, effective immediately.

 

7.3     Termination by the Bank without Cause. The Bank shall have the right to terminate the Term at any time on written notice without Cause, for any or no reason, such termination to be effective on the date on which the Bank gives such notice to Executive or such later date as may be specified in such notice.

 

7.4     Termination for Death or Disability. The Term shall automatically terminate upon the death of Executive or upon the Board’s determination that Executive is suffering from a Disability.

 

 

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7.5     Termination by Executive. Executive shall have the right to terminate the Term at any time, such termination to be effective on the date ninety (90) days after the date on which Executive gives such notice to the Bank unless Executive and the Bank agree in writing to a later date on which such termination is to be effective the “Notice Period”). After receiving notice of termination, the Bank may require Executive to devote Executive’s good faith energies to transitioning Executive’s duties to Executive’s successor and to otherwise helping to minimize the adverse impact of Executive’s resignation upon the operations of the Bank. If Executive fails or refuses to fully cooperate with such transition, the Bank may immediately terminate Executive, in which case it shall no longer have any obligation to pay any Salary or provide any benefits to him, but solely for purposes of Sections 8.5 and 8.6 below, the Termination Date shall be the date ninety (90) days after the date on which Executive gives notice of termination to the Bank pursuant to the first sentence of this Section 7.5, or the later date referred to therein, whichever is later. At any time during the Notice Period, the Bank may elect to relieve Executive of some or all of Executive’s duties, responsibilities, privileges and positions for the remainder of the Notice Period, in its sole discretion.

 

7.6     Pre-Termination Salary and Expenses. Without regard to the reason for, or the timing of, the termination or expiration of the Term: (a) the Bank shall pay Executive any unpaid Salary due for the period prior to the Termination Date; and (b) following submission of proper expense reports by Executive, the Bank shall reimburse Executive for all expenses incurred prior to the Termination Date and subject to reimbursement pursuant to Section 5.9 hereof. These payments shall be made promptly upon termination and within the period of time mandated by law.

 

7.7     COBRA if Termination by the Bank without Cause. If the Term is terminated by the Bank during the Term without Cause, and provided that Executive signs and delivers to the Bank no later than twenty-one (21) days after the Termination Date (the “Submission Period”), a General Release and Waiver in the form attached to as Exhibit A to the supplemental Non-compete Agreement (the “Release”), the Bank shall, for a period of one (1) year following the date on which the Release is executed and delivered to the Bank, if Executive timely elects to continue Executive’s health insurance benefits under COBRA, pay to the insurer or, at the Bank’s election, to Executive a gross monthly amount equal to the Employer’s share of Executive’s premiums for health insurance benefits continuation (for so long as Executive remains qualified for such continuation under COBRA). Notwithstanding the foregoing: (a) if the twenty-one (21) day period in which Executive may deliver the Release begins in one calendar year and ends in the following calendar year, the date on which payments will commence under this Section 7.7 shall be the first day of such following calendar year or, if later, the date on which the Release is delivered to the Bank; and (b) Executive shall not be entitled to any payments pursuant to this Section 7.7 if he is otherwise entitled to payments pursuant to Section 9.4 in relation to a Change in Control. In the event Executive breaches any provision of Article 8 of this Agreement, Executive’s entitlement to any payments payable pursuant to Section 7.5 during the Notice Period or this Section 7.7, if and to the extent not yet paid, shall thereupon immediately cease and terminate as of the date of such breach, with Executive having the obligation to repay to the Bank any payments for salary or for health insurance or other benefits pursuant to Section 7.5, 7.6 or 7.7 with respect to the period after such breach occurred and before such breach became known to the Bank. Furthermore, if termination was initially not for Cause but the Bank thereafter determines in good faith that, during the Term, Executive had engaged in conduct that would have constituted Cause, Executive’s entitlement to any payments pursuant to Section 7.5 or 7.7 shall terminate retroactively to the Termination Date, with Executive having the obligation to repay to the Bank any payments for salary subsequent to the occurrence of the event(s) constituting Cause or for health insurance benefits continuation pursuant to this Section 7.7, and, upon the return of all such payments, said General Release and Waiver shall be deemed rescinded and of no force or effect. Notwithstanding anything to the contrary in this Section 7.7, any payment pursuant to this Section shall be subject to (i) any delay in payment required by Section 10.2 hereof and (ii) any reduction required pursuant to Section 10.1.2 hereof.

 

7.8     Termination After Change in Control. Sections 9.2 and 9.3 set out provisions applicable to certain circumstances in which the Term may be terminated after Change in Control.

 

8.     Confidentiality; Non-Competition; Non-Interference.

 

 

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8.1     Confidential Information. Executive, during employment, will have, and has had, access to and become familiar with various confidential and proprietary information of the Bank Entities and/or relating to the business of the Bank Entities (“Confidential Information”), including, but not limited to: business plans; operating results; financial statements and financial information; contracts; mailing lists; purchasing information; customer data (including lists, names and requirements); feasibility studies; personnel related information (including compensation, compensation plans, and staffing plans); internal working documents and communications; and other materials related to the businesses or activities of the Bank Entities which is made available only to employees with a need to know or which is not generally made available to the public. Failure to mark any Confidential Information as confidential, proprietary or protected information shall not affect its status as part of the Confidential Information subject to the terms of this Agreement.

 

8.2     Nondisclosure. Executive hereby covenants and agrees that he shall not, directly or indirectly, disclose or use, or authorize any Person to disclose or use, any Confidential Information (whether or not any of the Confidential Information is novel or known by any other Person); provided however, that this restriction shall not apply to the use or disclosure of Confidential Information (i) to any governmental entity to the extent required by law, (ii) which is or becomes publicly known and available through no wrongful act of Executive or any Affiliate of Executive or (iii) in connection with the performance of Executive’s duties under this Agreement.

 

8.3     Nondisclosure of this Agreement. The terms, conditions and fact of this Agreement are strictly confidential. From and after the date of execution of this Agreement, Executive agrees not to disclose, directly or indirectly, the existence of this Agreement or any of the terms and conditions herein to any Person except that Executive may disclose the existence of this Agreement or the terms and conditions herein to Executive’s immediate family, tax, financial or legal advisers, any taxing authority, or as required by law, and Executive shall disclose the provisions of Articles 8 and 9 to prospective employers during the Restricted Period. Except as provided in this Section, if Executive is asked about the existence and/or terms and conditions of this Agreement, Executive is permitted to state only that “the terms of my employment are a confidential matter that I am not able to disclose.” Executive acknowledges that the terms of this Section 8.3 are a material inducement for the Bank to enter into this Agreement. Notwithstanding the foregoing, Executive may disclose such information regarding this Agreement as may be disclosed by the Bank Entities in any document filed with the Securities and Exchange Commission.

 

     8.4     Documents. All files, papers, records, documents, compilations, summaries, lists, reports, notes, databases, tapes, sketches, drawings, memoranda, and similar items (collectively, “Documents”), whether prepared by Executive, or otherwise provided to or coming into the possession of Executive, that contain any Confidential or proprietary information about or pertaining or relating to the Bank Entities (the “Bank Information”) shall at all times remain the exclusive property of the Bank Entities. Promptly after a request by the Bank or the Termination Date, Executive shall take reasonable efforts to (i) return to the Bank all Documents in any tangible form (whether originals, copies or reproductions) and all computer disks or other media containing or embodying any Document or Bank Information and (ii) purge and destroy all Documents and Bank Information in any intangible form (including computerized, digital or other electronic format) as may be requested in writing by the Chief Executive Officer of the Bank or Chairman of the Board of the Bank, and Executive shall not retain in any form any such Document or any summary, compilation, synopsis or abstract of any Document or Bank Information.     

 

8.5     Non-Competition. Executive hereby acknowledges and agrees that, during the course of employment, in addition to Executive’s access to Confidential Information, Executive has become, and will become, familiar with and involved in all aspects of the business and operations of the Bank Entities. Executive hereby covenants and agrees that during the Term until the later to occur of the date one (1) year after the Termination Date, or the Expiration Date (the “Restricted Period”), Executive will not at any time (except for the Bank Entities), directly or indirectly, in any capacity (whether as a proprietor, owner, agent, officer, director, shareholder, organizer, partner, principal, manager, member, employee, contractor, consultant or otherwise):

 

 

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(a) provide any advice, assistance or services of the kind or nature which he provided to any of the Bank Entities or relating to business activities of the type engaged in by any of the Bank Entities within the preceding two years, to any Person who owns or operates a Competitive Business or to any Person that is attempting to initiate or acquire a Competitive Business (in either case, a “Competitor”) if (i) such Competitor operates, or is planning to operate, any office, branch or other facility (in any case, a “Branch”) that is (or is proposed to be) located within a fifty (50) mile radius of the Bank’s headquarters or any Branch of the Bank Entities and (ii) such Branch competes or will compete with the products or services offered or planned to be offered by the Bank Entities during the Restricted Period; or 

 

(b) sell or solicit sales of Competitive Products to Persons within such 50 mile radius, or assist any Competitor in such sales activities. 

 

Notwithstanding any provision hereof to the contrary, this Section 8.5 does not restrict Executive’s right to (i) own securities of any Entity that files periodic reports with the Securities and Exchange Commission under Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended; provided that Executive’s total ownership constitutes less than two percent (2%) of the outstanding securities of such company and that such ownership does not does not violate: (A) the Code of Conduct or any other policy of the Bank, including any policy related to inside information; (B) any applicable securities law; or (C) any applicable standstill or other similar contractual obligation of the Bank. The parties have also entered into that certain Non-Compete Agreement as of even date herewith (the “Non-Compete”).

 

8.6     Non-Interference. Executive hereby covenants and agrees that during the Restricted Period, he will not, directly or indirectly, for himself or any other Person (whether as a proprietor, owner, agent, officer, director, shareholder, organizer, partner, principal, member, manager, employee, contractor, consultant or any other capacity):

 

(a)     induce or attempt to induce any customer, supplier, officer, director, employee, contractor, consultant, agent or representative of, or any other Person that has a business relationship with, any Bank Entity, to discontinue, terminate or reduce the extent of its or his relationship with any Bank Entity or to take any action that would disrupt or otherwise damage any such relationship;

 

(b)     solicit any customer of any of the Bank Entities for the purpose of providing any Competitive Products or Services to such customer (other than any solicitation to the general public that is not disproportionately directed at customers of any Bank Entity); or 

 

(c)     solicit any employee of any of the Bank Entities to commence employment with, become a consultant or independent contractor to or otherwise provide services for the benefit of any other Competitive Business. 

 

In applying this Section 8.6:

 

(i)     the term “customer” shall be deemed to include, at any time, any Person to which any of the Bank Entities had, during the six (6) month period immediately prior to such time, (A) sold any products or provided any services or (B) submitted, or been in the process of submitting or negotiating, a proposal for the sale of any product or the provision of any services;

 

(ii)     the term “supplier” shall be deemed to include, at any time, any Person which, during the six (6) month period immediately prior to such time, (A) had sold any products or services to any of the Bank Entities or (B) had submitted to any of the Bank Entities a proposal for the sale of any products or services;

 

(iii)     for purposes of clause (c), the term “employee” shall be deemed to include, at any time, any Person who was employed by any of the Bank Entities within the prior six (6) month period (thereby prohibiting Executive from soliciting any Person who had been employed by any of the Bank Entities until six (6) months after the date on which such Person ceased to be so employed); and

 

 

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(iv)     If during the Restricted Period any employee of any of the Bank Entities accepts employment with or is otherwise retained by any Competitive Business of which Executive is an owner, director, officer, manager, member, employee, partner or employee, or to which Executive provides material services, it shall be presumed that such employee was hired in violation of the restriction set forth in clause (c) of this Section 8.6, with such presumption to be overcome only upon Executive’s showing by a preponderance of the evidence that he was not directly or indirectly involved in the hiring, soliciting or encouraging such employee to leave employment with the Bank Entities.

 

8.7     Injunction. In the event of any breach or threatened or attempted breach of any provision of this Article 8 by Executive, the Bank shall, in addition to and not to the exclusion of any other rights and remedies at law or in equity, be entitled to seek and receive from any court of competent jurisdiction (i) full temporary and permanent injunctive relief enjoining and restraining Executive and each and every other Person concerned therein from the continuation of such violative acts and (ii) a decree for specific performance of the applicable provisions of this Agreement, without being required to furnish any bond or other security.

 

8.8     Reasonableness.

 

8.8.1     Executive has carefully read and considered the provisions of this Article 8 and, having done so, acknowledges that he fully understands them, that he has had an opportunity to consult with counsel of Executive’s own choosing regarding the meaning and effect of such provisions, at Executive’s election, and he agrees that the restrictions and agreements set forth in this Article 8 are fair and reasonable and are reasonably required for the protection of the interests of the Bank Entities and their respective businesses, shareholders, directors, officers and employees. Executive agrees that the restrictions set forth in this Agreement will not impair or unreasonably restrain Executive’s ability to earn a livelihood. Executive further acknowledges that the Executive’s services have been and shall continue to be of special, unique and extraordinary value to the Bank.

 

8.8.2     If any court of competent jurisdiction should determine that the duration, geographical area or scope of any provision or restriction set forth in this Article 8 exceeds the maximum duration, geographic area or scope that is reasonable and enforceable under applicable law, the parties agree that said provision shall automatically be modified and shall be deemed to extend only over the maximum duration, geographical area and/or scope as to which such provision or restriction said court determines to be valid and enforceable under applicable law, which determination the parties direct the court to make, and the parties agree to be bound by, such modified provision or restriction.

 

8.9     Additional Obligations.

 

8.9.1     Non-disparagement. Executive shall not during or after the Executive’s employment disparage any officers, directors, employees, business, products, or services of the Bank, except when compelled to do so in connection with a government investigation or judicial proceeding, or as otherwise may be required or protected by law.

 

8.9.2     Cooperation. During and after Executive’s employment, Executive shall fully cooperate with the reasonable requests of the Bank, including providing information, with regard to any matter that the Executive has knowledge of as a result of the Executive’s employment or prior employment with the Bank. Executive further agrees to comply with any reasonable request by the Bank to assist in relation to any investigation into any actual or potential irregularities, including without limitation assisting with any threatened or actual litigation concerning the Bank, giving statements/affidavits, meeting with legal and/or other professional advisors, and attending any legal hearing and giving evidence; provided that the Bank shall reimburse the Executive for any reasonable out-of-pocket expenses properly incurred by the Executive in giving such assistance. Executive agrees to notify the Bank immediately if the Executive is contacted by any third parties for information or assistance with any matter concerning the Bank and agrees to co-operate the Bank with regard to responding to such requests.

 

9.     Change in Control.

 

 

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9.1     Definition. “Change in Control” means and shall be deemed to have occurred if:

 

(a)      there shall be consummated (i) any consolidation, merger, share exchange, or similar transaction relating to Bancorp, or pursuant to which shares of Bancorp’s capital stock are converted into cash, securities of another Entity and/or other property, other than a transaction in which the holders of Bancorp’s voting stock immediately before such transaction shall, upon consummation of such transaction, own at least fifty percent (50%) of the voting power of the surviving Entity, or (ii) any sale of all or substantially all of the assets of Bancorp, other than a transfer of assets to a related Person which is not treated as a change in control event under §1.409A-3(i)(5)(vii)(B) of the U.S. Treasury Regulations;

 

(b)     any person, entity or group (each within the meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) shall become the beneficial owner (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of securities of Bancorp representing more than fifty percent (50%) of the voting power of all outstanding securities of Bancorp entitled to vote generally in the election of directors of Bancorp (including, without limitation, any securities of Bancorp that any such Person has the right to acquire pursuant to any agreement, or upon exercise of conversion rights, warrants or options, or otherwise, which shall be deemed beneficially owned by such Person); or

 

(c)     over a twelve (12) month period, a majority of the members of the Board of Directors of Bancorp are replaced by directors whose appointment or election was not endorsed by a majority of the members of the Board of Directors of Bancorp in office prior to such appointment or election.

 

Notwithstanding the foregoing, if the event purportedly constituting a Change in Control under Section 9.1(a), Section 9.1(b), or Section 9.1(c) does not also constitute a “change in ownership” of Bancorp, a “change in effective control” of Bancorp or a “change in the ownership of a substantial portion of the assets” of Bancorp within the meaning of Section 409A, then such event shall not constitute a “Change in Control” hereunder.

 

9.2     Change in Control Termination. For purposes of this Agreement, a “Change in Control Termination” means that while this Agreement is in effect:

 

(a)     Executive’s employment with the Bank is terminated without Cause (i) within one hundred twenty (120) days immediately prior to and in conjunction with a Change in Control or (ii) within twelve (12) months following consummation of a Change in Control; or

 

(b)     Within twelve (12) months following consummation of a Change in Control, Executive’s title, duties and or position have been materially reduced such that Executive is not in a comparable position (with materially comparable compensation, benefits and responsibilities and is located within twenty-five (25) miles of Executive’s primary worksite) to the position he held immediately prior to the Change in Control, and within thirty (30) days after notification of such reduction he notifies the Bank that he is terminating Executive’s employment due to such change in Executive’s employment unless such change is cured within thirty (30) days of such notice by providing him with a comparable position (including materially comparable compensation and benefits and is located within twenty-five (25) miles of Executive’s primary worksite). If Executive’s employment is terminated under this Section, Executive’s last day of employment shall be mutually agreed to by Executive and the Bank, but shall be not more than sixty (60) days after such notice is given by Executive.

 

9.3     Window Period Resignation After Change in Control. If at the expiration of the twelve (12) month period following consummation of a Change in Control (the “Action Period”), Executive’s employment by the Bank has not been terminated, Executive may, by giving written notice to the Bank within the thirty (30) day period immediately following the last day of the Action Period, elect to terminate the Term, in which event Executive’s last day of employment will be as mutually agreed to by the Bank and Executive but which shall be not more than sixty (60) days after such notice is given by Executive.

 

 

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9.4     Change in Control Payment. If there is a Change in Control Termination pursuant to Section 9.2 or Executive resigns after the Action Period pursuant to Section 9.3, Executive shall be paid a lump-sum cash payment (the “Change Payment”) equal to 1.99 times (the “Multiplier”) the sum of (a) Executive’s Salary at the highest rate in effect during the twelve (12) month period immediately preceding Executive’s Termination Date and (b) Executive’s cash bonus(es) paid in the most recent twelve (12) months, such Change Payment to be made to Executive on the date forty-five (45) days after the later of (i) the Termination Date or (ii) the date of the Change in Control; provided, however, that the Bank shall be relieved of its obligation to pay the Change Payment if Executive fails to sign and deliver to the Bank no later than twenty-one (21) days after the Termination Date a General Release and Waiver in the form attached to this Agreement as Exhibit A. To the extent the Executive’s Multiplier is 0.99 and during the Term Executive’s tenure with the Bank is five years or greater, the Multiplier shall change as of such anniversary and be 1.99 as of such date. In addition, and subject to the timely execution and delivery of the General Release and Waiver as aforesaid, Executive shall continue to receive for three (3) years after a Change in Control Termination the benefits provided above under Sections 5.7, 5.8.1 and 5.11. Notwithstanding anything to the contrary in this Section 9.4, (y)any payment pursuant to this Section 9.4 shall be subject to (i) any delay in payment required by Section 10.2 hereof and (ii) any reduction required pursuant to Section 10.1.2 hereof, as applicable and (z) shall not include any equity awards pursuant to Section 5.13 above or otherwise.

 

10.     Compliance with Certain Restrictions.

 

10.1     Section 280G. 

 

10.1.1     For purposes of this Agreement, the following terms are defined as follows:

 

(a)     “Additional 280G Payments” means any distributions in the nature of compensation by any Bank Entity to or for the benefit of Executive (including, but not limited to, the value of acceleration in vesting in restricted stock, options or any other stock-based compensation), whether or not paid or payable or distributed or distributable pursuant to this Agreement, which is required to be taken into consideration in applying Section 280G(b)(2)(A) of the Code;

 

(b)     “Parachute Payment” is defined as set forth in Section 280G(b)(2) of the Code; and

 

(c)      “Total Change in Control Payments” means the total amount of the Change Payment together with all Additional 280G Payments that are required to be paid because of a Change in Control.

 

10.1.2      Notwithstanding anything in this Agreement to the contrary, if the Determining Firm determines that any portion of the Total Change in Control Payments would otherwise constitute a Parachute Payment, the amount payable to Executive shall automatically be reduced by the smallest amount necessary so that no portion of the Total Change in Control Payments will be a Parachute Payment. . If Total Change in Control Payments are to be paid in other than a lump sum, such reduction shall be applied in such order as the Executive designates, subject to the approval of Bank, not to be unreasonably withheld, conditioned or delayed. If, despite the foregoing sentence, a payment shall be made to Executive that would constitute a Parachute Payment, Executive shall have no right to retain such payment and, immediately upon being informed of the impropriety of such payment, Executive shall return such payment to the Bank or other Bank Entity that was the payer thereof, together with interest at the applicable federal rate determined pursuant to Section 1274(d) of the Code.

 

 

10.2     Section 409A.

 

10.2.1     It is the intention of the parties hereto that this Agreement and the payments provided for hereunder shall not be subject to, or shall be in accordance with, Section 409A, and thus avoid the imposition of any tax and interest on Executive pursuant to Section 409A(a)(1)(B) of the Code, and this Agreement shall be interpreted and construed consistent with this intent. Executive acknowledges and agrees that he shall be solely responsible for the payment of any tax or penalty which may be imposed or to which he may become subject as a result of the payment of any amounts under this Agreement.

 

 

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10.2.2     Notwithstanding any provision of this Agreement to the contrary, if Executive is a “specified employee” at the time of Executive’s “separation from service”, any payment of “nonqualified deferred compensation” (in each case as determined pursuant to Section 409A) that is otherwise to be paid to Executive within six (6) months following Executive’s separation from service, then to the extent that such payment would otherwise be subject to interest and additional tax under Section 409A(a)(1)(B) of the Code, such payment shall be delayed and shall be paid on the first business day of the seventh calendar month following Executive’s separation from service, or, if earlier, upon Executive’s death. Any deferral of payments pursuant to the foregoing sentence shall have no effect on any payments that are scheduled to be paid more than six (6) months after the date of separation from service.

 

10.2.3     The parties hereto agree that they shall take such actions as may be necessary and permissible under applicable law, regulation and guidance to amend or revise this Agreement in order to ensure that Section 409A(a)(1)(B) does not impose additional tax and interest on payments made pursuant to this Agreement.

 

11.      Assignability. Executive shall have no right to assign this Agreement or any of Executive’s rights or obligations hereunder to another party or parties. The Bank may assign this Agreement to any of its Affiliates or to any Person that acquires a substantial portion of the operating assets of the Bank. Upon any such assignment by the Bank, references in this Agreement to the Bank shall automatically be deemed to refer to such assignee instead of, or in addition to, the Bank, as appropriate in the context.

 

12.      Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Maryland applicable to contracts executed and to be performed therein, without giving effect to the choice of law rules thereof. Any action to enforce any provision of this Agreement may be brought only in a court of the State of Maryland or in the United States District Court for the District of Maryland. Accordingly, each party (a) agrees to submit to the jurisdiction of such courts and to accept service of process at its address for notices and in the manner provided in Section 13 for the giving of notices in any such action or proceeding brought in any such court and (b) irrevocably waives any objection to the laying of venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient or inappropriate forum.

 

13.     Notices. All notices, requests, demands and other communications required to be given or permitted to be given under this Agreement shall be in writing and shall be conclusively deemed to have been given as follows: (a) when hand delivered to the other party; (b) when received by facsimile at the facsimile number set forth below, provided, however, that any notice given by facsimile shall not be effective unless either (i) a duplicate copy of such facsimile notice is promptly given by depositing the same in a United States post office first-class postage prepaid and addressed to the applicable party as set forth below or (ii) the receiving party delivers a signed, written confirmation of receipt for such notice either by facsimile or by any other method permitted under this Section; or (c) when deposited in a United States post office with first-class certified mail, return receipt requested, postage prepaid and addressed to the applicable party as set forth below; or (d) when deposited with a national overnight delivery service reasonably approved by the parties (Federal Express and DHL WorldWide Express being deemed approved by the parties), postage prepaid, addressed to the applicable party as set forth below with next-business-day delivery guaranteed; provided that the sending party receives a confirmation of delivery from the delivery service provider. Any notice given by facsimile shall be deemed received on the date on which notice is received except that if such notice is received after 5:00 p.m. (recipient’s time) or on a non-business day, notice shall be deemed given the next business day). Any notice sent by Untied States mail shall be deemed given three (3) business days after the same has been deposited in the United States mail. Any notice given by national overnight delivery service shall be deemed given on the first business day following deposit with such delivery service. For purposes of this Agreement, the term “business day” shall mean any day other than a Saturday, Sunday or day that is a legal holiday in Montgomery County, Maryland. The address of a party set forth below may be changed by that party by written notice to the other from time to time pursuant to this Article.

 

 

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EagleBank Employment Agreement

November 1, 2014

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To:          Executive at set forth by Executive’s signature below

 

To:          EagleBank 

c/o Ronald D. Paul 

7815 Woodmont Ave.

Bethesda, MD 20814

Fax No.: 301-986-8529

 

cc:           Laurence E. Bensignor

EagleBank

7815 Woodmont Avenue

Bethesda, Maryland 20814

Fax: 301-841-9872

 

14.     Entire Agreement. This Agreement and the Non-Compete and, other than with respect to the term of employment, the letter agreement dated September 15, 2014 from Susan G. Riel, Senior Executive Vice President of EagleBank, to Executive, which is incorporated by reference, contain all of the agreements and understandings between the parties hereto with respect to the employment of Executive by the Bank, and supersede all prior agreements, arrangements and understandings related to the subject matter hereof. No oral agreements or written correspondence shall be held to affect the provisions hereof. No representation, promise, inducement or statement of intention has been made by either party that is not set forth in this Agreement or the Non-Compete, and neither party shall be bound by or liable for any alleged representation, promise, inducement or statement of intention not so set forth. Not in limitation of the foregoing, this Agreement supersedes and replaces the Executive’s employment arrangement with the Bank in effect prior to the date hereof, except that Executive shall remain entitled to receive any compensation earned but not yet paid thereunder.

 

15.     Headings. The Article and Section headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

 

16.     Severability. Should any part of this Agreement for any reason be declared or held illegal, invalid or unenforceable, such provision or portion of such provision shall be deemed severed herefrom and such determination shall not affect the legality, validity or enforceability of any remaining portion or provision of this Agreement, which remaining portions and provisions shall remain in force and effect as if this Agreement has been executed with the illegal, invalid or unenforceable portion thereof eliminated.

 

17.     Amendment; Waiver. Neither this Agreement nor any provision hereof may be amended, modified, changed, waived, discharged or terminated except by an instrument in writing signed by the party against which enforcement of the amendment, modification, change, waiver, discharge or termination is sought. The failure of either party at any time or times to require performance of any provision hereof shall not in any manner affect the right at a later time to enforce the same. No waiver by either party of the breach of any term, provision or covenant contained in this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such breach, or a waiver of the breach of any other term, provision or covenant contained in this Agreement.

 

18.     Gender and Number. As used in this Agreement, the masculine, feminine and neuter gender, and the singular or plural number, shall each be deemed to include the other or others whenever the context so indicates.

 

19.     Binding Effect. This Agreement is and shall be binding upon, and inures to the benefit of, the Bank, its successors and assigns, and Executive and Executive’s heirs, executors, administrators, and personal and legal representatives.

 

[signatures on following page]

 

 

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EagleBank Employment Agreement

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

 

	
EAGLEBANK  

	
 
	
 
	
 

	
 
	
 
	
 

	By:	 	 
	Name: Ronald D. Paul	 
	Title: Chief Executive Officer	 
	 	 	 
	Executive	 
	 	 	 
	 	 	 
	 	 
	 	 	 

 

  

	
Notice Address:  
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
Fax No. 
	
 
	
 

 

 

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EagleBank Employment Agreement

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Page 15 of 16

 

   

Attachment A

 

 

Form of

General Release and Waiver of All Claims

 

____________ ("you") executes this General Release And Waiver of All Claims (the "Release") as a condition of receiving certain payments and other benefits in accordance with the terms of Section 7.7 of your Employment Agreement dated ___________, 20__. All capitalized terms used but not otherwise defined herein shall have the same meaning as in your Employment Agreement.

 

	
1.
	
RELEASE.

 

You hereby release and forever discharge EagleBank and Eagle Bancorp, Inc. [modify to specifically include any additional Affiliates] and each and every one of their former or current subsidiaries, parents, affiliates, directors, officers, employees, agents, parents, affiliates, successors, predecessors, subsidiaries, assigns and attorneys (the "Released Parties") from any and all charges, claims, damages, injury and actions, in law or equity, which you or your heirs, successors, executors, or other representatives ever had, now have, or may in the future have by reason of any act, omission, matter, cause or thing through the date of your execution of this Release. You understand that this Release is a general release of all claims you may have against the Released Parties based on any act, omission, matter, case or thing through the date of your execution of this Release.

 

	
2.
	
WAIVER.

 

You realize there are many laws and regulations governing the employment relationship. These include, but are not limited to, Title VII of the Civil Rights Acts of 1964 and 1991; the Age Discrimination in Employment Act of 1967; the Americans with Disabilities Act; the National Labor Relations Act; 42 U.S.C. § 1981; the Family and Medical Leave Act; the Employee Retirement Income Security Act of 1974 (other than any accrued benefit(s) to which you have a non-forfeitable right under any pension benefit plan); the Maryland Civil Rights Act, the Maryland Wage Payment and Collection Law, Maryland Occupational Safety and Health Act, the Maryland Collective Bargaining Law, and any other state, local and federal employment laws; and any amendments to any of the foregoing. You also understand there may be other statutes and laws of contract and tort that also relate to your employment. By signing this Release, you waive and release any rights you may have against the Released Parties under these and any other laws based on any act, omission, matter, cause or thing through the date of your execution of this Release. You also agree not to initiate, join, or voluntarily participate in any action or suit in any court or to accept any damages or other relief from any such proceeding brought by anyone else based on any act, omission, matter, cause or thing through the date of your execution of this Release.

 

 

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3.
	
NOTICE PERIOD.

 

This document is important. We advise you to review it carefully and consult an attorney before signing it, as well as any other professional whose advice you value, such as an accountant or financial advisor. If you agree to the terms of this Release, sign in the space indicated below for your signature. You will have twenty-one (21) calendar days from the date you receive this document to consider whether to sign this Release. If you choose to sign the Release before the end of that twenty-one day period, you certify that you did so voluntarily for your own benefit and not because of any coercion.

 

	
4.
	
RETURN OF PROPERTY.

 

You certify that you have fully complied with Section 8.4 of your Employment Agreement. 

 

	
5.
	
REVOCATION.

 

You should also understand that even after you have signed this Release, you still have seven (7) days to revoke it. To revoke your acceptance of this Release, the Chairman of the Bank’s Board of Directors must receive written notice before the end of the seven (7)-day period. In the event you revoke or do not accept this Release, you will not be entitled to any of the payments or benefits that you would have been entitled to under your Employment Agreement by virtue of executing this Release. If you do not revoke this Release within seven (7) days after you sign it, it will be final, binding, and irrevocable.

 

IN WITNESS WHEREOF, the Parties have knowingly and voluntarily executed this Release, as of the day and year first set forth below.

 

 

 

 

	
 
	
 
	
 
	
 

	
Executive
	
 
	
 
	
Date
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
 
	
 
	
 

	 	 	 	Date	 

 

 

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