Document:

CBSH 12.31.2014 EX 10(g)(2)

Exhibit 10(g)(2)

SEVERANCE AGREEMENT

THIS AGREEMENT is made and entered into as of the      day of                      by and between Commerce Bancshares, Inc.,  a Missouri corporation (the “Company”) and (the “Executive”).

                                                                         W I T N E S S E T H:
                                                                     ‐  ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

WHEREAS, the Board of Directors of the Company has approved the company entering into this Agreement; and

WHEREAS, the Company desires assurance that it will have the continued dedication of the Executive and the availability of his advice and counsel notwithstanding any possibility or occurrence of a Change in Control of the Company:

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt of which is acknowledged, the parties hereto agree as follows:

1.    Certain Definitions.

a.    Base Salary.  “Base Salary” means the salary of record paid to Executive as annual salary, excluding amounts received under incentive or other bonus plans, whether or not deferred.  

b.    Cause.  “Cause” means conduct of Executive which is knowingly fraudulent, deliberately dishonest or willful misconduct.

c.    Change in Control.  “Change in Control” means the happening of any of the following events:

i.    any Person is or becomes the “beneficial owner” (within the meaning of Rule 13d‐3 promulgated under Section 13 of the Securities Exchange Act of 1934 (the “Exchange Act”)), directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its affiliates other than in connection with the acquisition by the Company or its affiliates of a business) representing 20% or more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company’s then outstanding securities; or

ii.    the following individuals cease for any reason to constitute a majority of the number of directors then serving:  individuals who, on the Effective Date, as defined in Section 3 herein, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two‐thirds (2/3) of the 

1

directors then still in office who either were directors on the Effective Date or whose appointment, election or nomination for election was previously so approved; or 

iii.    there is consummated a merger or consolidation of the Company (or any direct or indirect subsidiary of the Company) with any other corporation, other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger  or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company, at least 80% of the combined voting power of the voting securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the beneficial owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its subsidiaries other than in connection with the acquisition by the Company or its subsidiaries of a business) representing twenty percent (20%) or more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company’s then outstanding securities; or

iv.    the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated a sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity at least eighty percent (80%) of the combined voting power of the voting securities of which are owned by Persons in substantially the same proportions as their ownership of the Company immediately prior to such sale.

For purposes of the above definition of Change in Control, “Person” shall have the meaning set forth in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

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

e.    Disability.  “Disability” means a physical or mental condition of Executive which totally and permanently prevents him from engaging in any occupation or employment for remuneration or profit except for the purpose of rehabilitation not incompatible with a finding of total and permanent disability.  The determination as to whether Executive is totally and permanently disabled shall be made based solely on evidence that he is eligible for disability payments under an employee‐sponsored long‐term disability program, if any such program is in effect.

2

f.    Effective Date of Termination.  “Effective Date of Termination” means the date on which a Qualifying Termination occurs which triggers the payment of Severance Benefits hereunder.

g.    Good Reason.  “Good Reason” means, without Executive’s express written consent, the occurrence of any one or more of the following:

i.    a determination by Executive, in his reasonable judgment, that his duties have been materially reduced in terms of authority and responsibility as an employee of the Company in comparison to Executive’s duties immediately prior to the occurrence of a Change in Control; 

ii.    the Company’s requiring Executive to be based at a location which is at least thirty‐five (35) miles further from Executive’s primary residence at the time such requirement is imposed than is such residence from the Company’s office at which Executive is primarily rendering services at such time, except for required travel on the Company’s business to an extent substantially consistent with Executive’s business obligations in effect immediately prior to the occurrence of a Change in Control; 

iii.    a reduction by the Company in Executive’s Base Salary as in effect 12 months before a Change in Control; or

iv.    a material reduction in Executive’s level of participation in any of the Company’s short‐ and/or long‐term incentive compensation plans, or employee benefit or retirement plans, policies, practices, or arrangements in which Executive participated immediately prior to the occurrence of a Change in Control; provided, however, that reductions in the levels of participation in any such plans shall not be deemed to be “Good Reason” if Executive’s reduced level of participation in each such program remains substantially consistent with the average level of participation of other executives who have positions commensurate with Executive’ s position. 

h.    Qualifying Termination.  “Qualifying Termination” shall have the meaning ascribed to it in Section 5 herein.  

i.    Retirement.  “Retirement” means the Executive’s “Normal Retirement Date,” as such term is defined in the Company’s tax‐qualified, defined benefit plan (or any successor or substitute plan or plans of the Company put into effect prior to a Change in Control).

j.    Separation from Service.  “Separation from Service”, “termination of employment,” “terminates employment” and similar terms mean the date that Executive separated from service within the meaning of Section 409A of the Code.  Generally, Executive will separate from service if Executive dies, retires, or otherwise has a Separation from Service with the Company, determined in accordance with the following:
i.    Leaves of Absence.  The employment relationship is treated as continuing intact while Executive is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six (6) months, or, if longer, so long as Executive retains a right to reemployment with the Company under an applicable statute or by contract.  A leave of absence constitutes a bona fide leave of absence only if there is a reasonable expectation that Executive will return to perform services for the Company.  If 

3

the period of leave exceeds six (6) months and Executive does not retain a right to reemployment under an applicable statute or by contract, the employment relationship is deemed to terminate on the first date immediately following such six (6)-month period.  Notwithstanding the foregoing, where a leave of absence is due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six (6) months, where such impairment causes Executive to be unable to perform the duties of his or her position of employment or any substantially similar position of employment, a twenty-nine (29)-month period of absence shall be substituted for such six (6)-month period. 
ii.    Dual Status.  Generally if Executive performs services both as an employee and an independent contractor, Executive must separate from service both as an employee, and as an independent contractor pursuant to standards set forth in the Treasury Regulations, to be treated as having a Separation from Service.  However, if Executive provides services to the Company as an employee and as a member of the Board, and if any plan in which such person participates as a Board member is not aggregated with this Agreement pursuant to Treasury Regulation Section 1.409A-1(c)(2)(ii), then the services provided as a director are not taken into account in determining whether Executive has a Separation from Service as an employee for purposes of this Agreement.
iii.    Separation from Service.  Whether a Separation from Service has occurred is determined based on whether the facts and circumstances indicate that the Company and Executive reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services Executive would perform after such date (whether as an employee or as an independent contractor except as provided in the preceding paragraph) would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services performed (whether as an employee or an independent contractor, except as provided in the preceding paragraph) over the immediately preceding thirty six (36) month period (or the full period of services to the Company if Executive has been providing services to the Company less than thirty six (36) months).  For periods during which Executive is on a paid bona fide leave of absence and has not otherwise terminated employment as described above, for purposes of this paragraph Executive is treated as providing bona fide services at a level equal to the level of services that Executive would have been required to perform to receive the compensation paid with respect to such leave of absence.  Periods during which Executive is on an unpaid bona fide leave of absence and has not otherwise terminated employment are disregarded for purposes of this paragraph (including for purposes of determining the applicable thirty six (36) month (or shorter) period). 
iv.    Service with Related Companies.  For purposes of determining whether a Separation from Service has occurred under the above provisions, the “Company” shall include the Company and all Related Companies.  “Related Company” means:  (1) any corporation that is a member of a controlled group of corporations (as defined in Code Section 414(b) that includes the Company); and (ii) any trade or business (whether or not incorporated) that is under common control (as defined in Code Section 414(c) with the Company.  For purposes of applying Code Sections 414(b) and (c), 50% is substituted for the 80% ownership level
k.    Tax Rate.  “Tax Rate” means Executive’s effective tax rate based upon the combined federal and state and local income, earnings, Medicare and any other tax rates applicable 

4

to Executive, net of the reduction in federal income taxes which could be obtained by deduction of such state and local taxes.

2.    Right to Terminate.  The Company or Executive may terminate Executive’s employment at any time for any reason.  The Company is obligated to provide the benefits hereinafter specified only if such benefits are due in accordance with the terms hereof.

3.    Term of Agreement.  This Agreement shall commence on the date hereof (the “Effective Date”) and shall continue until the date that is the third anniversary of the Effective Date; provided, however, that the term of this Agreement shall automatically be extended for one additional year on each anniversary, unless at least 30 days prior to such anniversary, the Company, with approval of the Board of Directors, or Executive shall have given notice that this Agreement shall not be extended; and provided that, notwithstanding the delivery of any such notice, this Agreement shall continue in effect for a period of thirty‐six (36) months after a Change in Control of the Company, as defined in Section 1 herein, if such Change in Control shall have occurred during the term of this Agreement, as it may be extended; and provided that in any event this Agreement shall expire upon the Executive’s sixty‐fifth (65th) birthday.

4.    Right to Severance Benefits.  Executive shall be entitled to receive from the Company Severance Benefits, as described in Section 6 herein, upon the occurrence of a Qualifying Termination, as defined in Section 5 herein.

Executive shall not be entitled to receive Severance Benefits, and the Company shall have no obligation under this Agreement, if his employment is terminated under circumstances that do not constitute a Qualifying Termination, including, but not limited to, Disability, Retirement, death, termination for Cause or termination by Executive other than for Good Reason.

5.    Qualifying Termination.  “Qualifying Termination” means the occurrence of any one or more of the following events:

a.    within twelve (12) months prior to a Change in Control, an involuntary termination of Executive’s employment by the Company that is in contemplation of, and caused by, such Change in Control, such Change in Control is pending at the time of such termination and such Change in Control actually occurs; provided that such termination shall not be a Qualifying Termination if circumstances constituting Cause exist;

b.    within three (3) years following a Change in Control, an involuntary termination of Executive’s employment by the Company for reasons other than Cause, the failure or refusal by a successor company to assume the Company’s obligations under this Agreement, as required by Section 14 herein, or a breach by the Company or any successor company of any of the provisions of this Agreement; or

c.    a voluntary termination of employment by Executive for Good Reason within three (3) years following a Change in Control.
. 

6.    Description of Severance Benefits.  In the event that Executive becomes entitled to receive Severance Benefits, as provided in Section 4 herein, the Company shall pay to Executive and provide him with the following:

a.    a payment equal to the product of: (i) the lesser of ‐‐ (a) three (3) or (b) the quotient of the number of months following termination until the Executive attains age sixty-five 

5

(65), divided by twelve (12); multiplied by (ii) the sum of ‐‐ (a) the Executive’s Base Salary in effect on the date that is twelve (12)‐months prior to the Change in Control and (b) Executive’s average bonus for the three (3) completed fiscal years of the Company preceding the fiscal year in which the Change in Control occurs;

b.    a payment equal to the greater of ‐‐ (a) Executive’s actual bonus for the fiscal year of the Company preceding the fiscal year in which the Change in Control occurs or (b) Executive’s target bonus for the fiscal year of the Company in which the Effective Date of Termination occurs, calculated assuming that both the Company and Executive achieved the performance objectives required to earn the target bonus, and prorated based on the number of days elapsed in the Company’s fiscal year during which his employment terminates;

c.    for the lesser of ‐‐ (i) three (3) years following the Effective Date of Termination; or (ii) until both Executive and his spouse (if covered by any of the following plans) are both age sixty-five (65), all insured and self‐insured medical, life insurance and disability benefit plans in which Executive participated as of the earlier of ‐‐ (a) immediately prior to the Effective Date of Termination; or (b) immediately prior to any change to such benefits that could have constituted Good Reason to terminate, shall continue to be made available to Executive and his dependents, at a cost to Executive and his dependents equal to such rates paid from time to time by active Company employees whose position is similarly situated to the position held by Executive immediately prior to the earliest event that could have constituted Good Reason to terminate.  In the event that Executive’s participation in any such plan is barred or the cost thereof or benefits thereunder would be taxable, the Company, for no additional cost to Executive, shall arrange to have issued for the benefit of Executive and his dependents individual policies of insurance providing benefits substantially similar to those which Executive otherwise would have been entitled to receive under such plans if such benefits or the cost thereof were not taxable or, if such insurance is not available at a reasonable cost to the Company, the Company shall otherwise provide Executive and his dependents with benefits that, after taxes calculated at the Tax Rate, are equivalent to the benefits Executive otherwise would have been entitled to receive under such plans if such benefits or the cost thereof were not taxable;

d.    the opportunity to borrow from the Company or an affiliate thereof, for an interest rate set by Executive (which may be zero), an amount equal to the sum of the exercise price of Executive’s outstanding stock options and taxes resulting from such exercise and the vesting of Executive’s restricted stock, with repayment required upon the passage of one hundred eighty (180) consecutive days of Executive being able to sell stock acquired by exercise of such options and being able to sell vested, restricted stock, in both cases without restriction, to the extent that such borrowing will not violate Section 402(a) of the Sarbanes-Oxley Act of 2002, codified at 15 U.S.C. 78m(k), which prohibits personal loans from the Company to a director or executive officer of the Company with limited exceptions; and

e.    reimbursement for the costs, if any, of all outplacement services obtained by Executive following a Qualifying Termination.
 
7.    Notice of Termination.  Any Qualifying Termination shall be communicated by Notice of Termination.  For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated.

6

8.    Form and Timing of Severance Benefits.  The Severance Benefits described in Sections 6(a) and 6(b) herein shall be paid in cash to Executive in a single lump sum as soon as practicable following the Effective Date of Termination, but in no event beyond three (3) days from such date.  The loan option described in Section 6(d) shall be provided to Executive within three (3) days of demand for such loan by Executive.

Notwithstanding any provision of the Severance Agreement to the contrary, and to the extent necessary to avoid subjecting Executive to any additional tax, interest or penalties under Code Section 409A, if Executive is a “Specified Employee”, no portion of his or her benefit that is subject to Code Section 409A and is due to be paid or provided due to Separation from Service shall be provided before the earlier of (a) the first business day following date which is six (6) months after the date of Separation from Service, or (b) the date of death of the Participant.  A “Specified Employee” is a key employee, as defined under Code Section 416(i), without regard to paragraph (5) thereof (and any successor or comparable Code sections).  Amounts or benefits that would have been paid or provided during the delay shall be credited with interest at Commerce Bank’s prime rate in effect at the time the delay commenced, and shall be paid on the first business day following the end of the six month delay.
9.    Offset of Severance Benefits.  To the extent the offset described in this section would not result in subjecting Executive to any additional tax, interest or penalties under Code Section 409A, the Severance Benefits provided Executive under this Agreement shall offset any other severance benefits or damages for termination of employment owed to Executive by Company.  However, it is expressly agreed that payments or benefits to Executive under any retirement, supplemental retirement, deferred compensation, pension, stock option, restricted stock, incentive or bonus plan or arrangement shall not be offset against or reduce in any way any payments or benefits to which Executive is entitled under this Agreement.

10.    Tax Issues.

a.    All payments to be made to Executive under this Agreement will be subject to required withholding of federal, state and local income and employment taxes.

b.    Anything in this Agreement to the contrary notwithstanding, in the event that it shall be determined that any payments by the Company under this Agreement (“Payments”) to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of the Agreement or otherwise) would result in an “excess parachute payment” within the meaning of Section 280G(b)(1) of the Code, but that no portion of the Payments would be treated as excess parachute payments if the aggregate amount of the Payments were reduced then the Payments may be reduced to the “Reduced Amount” as provided in this Section. The “Reduced Amount” shall be an amount expressed in present value which maximizes the aggregate present value of Payments without causing any Payment to be an excess parachute payment under Section 280G(b)(1) of the Code.  For purposes of this provision, present value shall be determined in accordance with Section 280G(d)(4) of the Code.  Executive shall receive whichever of the following results in the largest after tax amount: (i) the Reduced Amount, or (ii) the sum of all Payments.  Any determinations with respect to the amount of any Reduced Amount and the Payments that are to be reduced hereunder shall be made by the Company. If Executive disagrees with the Company’s determination pursuant to this paragraph, Executive and Company shall mutually designate a nationally certified public accounting firm to determine the proper amount payable pursuant to this paragraph.  To the extent necessary to achieve the Reduced Amount, Payments shall be reduced as follows: (A) first, outplacement reimbursements pursuant to Section 6.e shall be reduced beginning with reimbursement for the most recent cost incurred by the 

7

Executive; (B) second, disability benefit coverage under Section 6.c shall be reduced by terminating such coverage earlier than the date specified in that Section as necessary; (C) third, life insurance benefit coverage under Section 6.c shall be reduced by terminating such coverage earlier than the date specified in that section as necessary; (D) fourth, insured and self-insured medical insurance benefit coverage under Section 6.c shall be reduced by terminating such coverage earlier than the date specified in that Section as necessary; (E) fifth, lump sum payments pursuant to Section 6.a and 6.b; and (F) sixth, any loan pursuant to Section 6.d.  In no event, however, shall any Payments be reduced if and to the extent such reduction would cause a violation of Section 409A of the Code or other applicable law or would fail to reduce any excess parachute payment under this Section.  The calculations required by this Section will be made assuming that the Executive pays Federal, state and local income taxes at the highest marginal rate of tax in each case. 

c.    Notwithstanding anything in this Agreement to the contrary, if any portion of any payments to Executive by the Company under this Agreement and any other present or future plan of the Company or other present or future agreement between Executive and the Company would not be deductible by the Company for federal income tax purposes by reason of application of Section 162(m) of the Code, then payment of that portion to Executive shall be deferred until the earliest date upon which payment thereof can be made to Executive without being non-deductible pursuant to Section 162(m) of the Code.  In the event of such deferral, the Company shall pay interest to Executive on the deferred amount at 120% of the applicable federal rate provided for in Section 1274(d)(2) of the Code.
11.    The Company’s Payment Obligation.

a.    The Company’s obligation to make the payments and the arrangements provided for herein shall be absolute and unconditional, and shall not be affected by any circumstances, including, without limitation, any offset, counterclaim, recoupment, defense, or other right which the Company may have against Executive or anyone else.  All amounts payable by the Company hereunder shall be paid without notice or demand.  Each and every payment made hereunder by the Company shall be final, and the Company shall not seek to recover all or any part of such payment from Executive or from whomsoever may be entitled thereto, for any reasons whatsoever.

b.    This Agreement establishes and vests in Executive a contractual right to the benefits to which he is entitled hereunder.  However, nothing herein contained shall require or be deemed to require, or prohibit or be deemed to prohibit, the Company to segregate, earmark, or otherwise set aside any funds or other assets, in trust or otherwise, to provide for any payments to be made or required hereunder.

12.    No Obligation to Mitigate.  Executive shall not be required to mitigate the damages or the amount of any payment provided for under this Agreement by seeking other employment or otherwise, nor shall the amount of any payment provided under this Agreement be reduced by any compensation earned by Executive as a result of employment by another employer after any Qualifying Termination, or otherwise.

13.    Other Rights.  Except as specifically provided herein, the provisions of this Agreement, and any payment provided hereunder, shall not reduce any amounts otherwise payable, or in any way diminish Executive’s existing rights or rights which would accrue solely as a result of the passage of time, under any benefit or incentive plan, employment arrangement or other contact, plan or arrangement of the Company.  As soon as practicable following any Qualifying Termination, Executive shall receive cash 

8

payment(s) for: (a) Executive ’s earned but unpaid salary as of the Employment Termination Date; (b) the value of Executive’s earned but unused vacation time as of the Employment Termination Date in accordance with the current Company policy, and (c) the value of Executive’s deferred compensation account(s) under any Company or deferred compensation plan in accordance with Executive’s then current payment election.

14.    Successors; Binding Agreement.

a.    This Agreement and the rights and obligations of the parties hereto shall bind and inure to the benefit of any successor or successors of the Company by way of reorganization, merger, acquisition or consolidation, and any assignee of all or substantially all of its business and properties.

b.    This Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  If Executive dies while any amount is still payable to Executive hereunder, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to Executive’s devisee, legatee or other designee or, if there be no such designee, to Executive’s estate.

15.    No Assignment.  No benefit hereunder shall be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt to do so shall be void.

16.    Survival.  The respective obligations of, and benefits afforded to, the Company and Executive as provided in Sections 10, 14, 19 and 20 of this Agreement shall survive termination of this Agreement.

17.    Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction, arbitrator or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in force and effect and shall in no way be affected, impaired or invalidated.

18.    Consultation with Counsel.  Executive acknowledges (a) that he has been given the opportunity to consult with counsel of his own choice concerning this Agreement, and (b) that he has read and understands the Agreement, is fully aware of its legal effect, and has entered into it freely based upon his own judgment with or without the advice of such counsel.

19.    Arbitration.  Executive shall have the option to elect (in lieu of litigation) to have any dispute or controversy arising under or in connection with this Agreement settled by arbitration, conducted by a panel of three arbitrators in a location selected by Executive within fifty (50) miles from the location of his job with the Company, in accordance with the rules of the American Arbitration Association then in effect.  Judgment may be entered on the arbitrators’ award in any court having jurisdiction.  

20.    Attorney’s Fees.  Company shall pay Executive’s attorney’s fees and costs incurred in connection with any dispute concerning this Agreement unless each and every disputed claim by the Executive is found to be wholly frivolous in arbitration or by a court of competent jurisdiction.

21.    Amendments; Waivers.  This Agreement may not be modified, amended or terminated except by an instrument in writing, signed by Executive and by a duly authorized representative of the Company other than the Executive.  By an instrument in writing similarly executed, either party may 

9

waive compliance by the other party with any provision of this Agreement that such other party was or is obligated to comply with or perform, provided, however, that such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent failure.  No failure to exercise and no delay in exercising any right, remedy or power hereunder shall operate as a waiver thereof or as a waiver of any other right, remedy or power, nor shall any single or partial exercise of any right, remedy or power hereunder preclude any other or further exercise of any other right, remedy, or other power provided herein or by law or in equity.

22.    Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.  

23.    Descriptive Headings.  Descriptive headings of the several sections and subsections of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof.

24.    Integration.  The parties understand and agree that the preceding sections recite the sole consideration for this Agreement; that no representation or promise has been made by Company or Executive concerning the subject matter of this Agreement, except as expressly set forth in this Agreement; and that all agreements and understandings between the parties concerning the subject matter of this Agreement are embodied and expressed in this Agreement.  This Agreement shall supersede all prior agreements and understandings among the parties whether written or oral, express or implied, with respect to the employment, termination and benefits of Employee in the event of a Qualifying Termination, including without limitation, any employment‐related agreement or benefit plan, except to the extent that the provisions of any such agreement or plan have been expressly referred to in this Agreement as having continued effect.

25.    Governing Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Missouri.

26.    Notices.  All notices hereunder shall be in writing, and shall be delivered in person, by facsimile or by certified mail‐return receipt requested.  Notices shall be delivered as follows:
If to the Company:
                
Commerce Bancshares, Inc. 
1000 Walnut Street
Kansas City, MO 64106
Attention:    ______________

If to the Executive:

[NAME]
[ADDRESS]

Any party may change its address by notice giving notice to the other party of a new address in accordance with the foregoing provisions.

27.    Employment Rights.  Nothing contained in this Agreement or any act done pursuant hereto shall be construed as giving any person any legal or equitable right against the Company, unless specifically provided herein, or as giving any person a right to be retained in the employ of the Company.  Executive shall remain subject to assignment, reassignment, promotion, transfer, layoff, reduction, suspension, and discharge to the same extent as if this Agreement had never been executed.

10

28.    Acknowledgment.  Executive hereby acknowledges that he shall have no rights hereunder unless and until all circumstances constituting a Qualifying Termination shall have occurred.

29.    Reimbursements, Gross-Ups and In-Kind Benefit Rules.  Any reimbursements, gross-ups or in-kind benefits to be provided pursuant to this Agreement (including but not limited to Sections 6 and 20) that are taxable to Executive shall be subject to the following restrictions: (a) each reimbursement or gross-up must be paid no later than the last day of the calendar year following the Executive’s tax year during which the expense was incurred or tax was remitted, as the case may be; (b) the amount of expenses or taxes eligible for reimbursement, or in-kind benefits or gross-ups provided, during a tax year of the Executive may not affect the expenses or taxes eligible for reimbursement, or in-kind benefits or gross-ups to be provided, in any other tax year of the Executive; (c) the period during which any reimbursement or gross-up may be paid or in-kind benefit may be provided shall end ten years after termination of this Agreement; and (d) the right to reimbursement, gross-up or in-kind benefits is not subject to liquidation or exchange for another benefit.
30.    Compliance with Section 409A of the Internal Revenue Code.  Notwithstanding any provision in this Severance Agreement to the contrary, the Severance Agreement shall be interpreted, construed and conformed in accordance with Code Section 409A and regulations and other interpretative guidance issued thereunder.  It is intended by the Company and Executive that all compensation and benefits payable or provided to the Executive under this Severance Agreement or otherwise shall fully comply with the provisions of Section 409A of the Internal Revenue Code and the Treasury Regulations relating thereto so as not to subject Executive to the additional tax, interest or penalties which may be imposed under Section 409A.  The parties acknowledge that 409A is ambiguous in certain respects.  The Company agrees that it will attempt in good faith not to take any action, or refrain from taking any action, that would result in the imposition of tax, interest and/or penalties upon the Executive under 409A.  To the extent the Company has acted or refrained from acting in good faith as required by this Section, it will not be responsible for any consequences of failure to comply with 409A, and any such failure shall not be a breach of this Agreement even though this Agreement requires certain actions to be taken in conformance with 409A.

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

COMMERCE BANCSHARES, INC. 

By:                        
Name:                        
Title:                        

EXECUTIVE
                        
                                                
Name: 

This agreement signed by:
John W. Kemper, President and Chief Operating Officer 

11EX-10.19

 EXHIBIT 10.19 

MARTIN MARIETTA MATERIALS, INC. 

FORM OF SPECIAL RESTRICTED STOCK UNIT AGREEMENT 

THIS SPECIAL RESTRICTED STOCK UNIT AGREEMENT (the “Award Agreement”), made as of
[                    ], between Martin Marietta Materials, Inc., a North Carolina corporation (the “Corporation”), and
                    (the “Employee”). 
 1.
GRANT 
 Pursuant to the Martin Marietta Materials, Inc. Amended and Restated Stock-Based Award Plan (the “Plan”), the
Corporation hereby grants the Employee                     Restricted Stock Units on the terms and conditions contained in this Award
Agreement, and subject to the terms and conditions of the Plan. The term “Restricted Stock Unit” or “Unit(s)” as used in this Award Agreement refers only to the Restricted Stock Units awarded to the Employee under this Award
Agreement. 
 2. GRANT DATE 
 The Grant Date is
[                    ]. 
 3. RESTRICTION PERIOD

 Subject to the terms and conditions hereof and of the Plan, the restriction period begins on the Grant Date and ends on
[                    ] (the “Vesting Date”). 

4. DIVIDEND EQUIVALENTS 
 On each date that dividends are
paid (each a “Dividend Payment Date”) on shares of the Corporation’s common stock, par value $0.01 per share (the “Common Stock”) with respect to which the record date (the “Record Date”) also occurs during the
Restriction Period, the Corporation will credit to an account for the Employee an amount equal to the dividend paid on a share of the Common Stock multiplied by the number of Restricted Stock Units. These dividend equivalent amounts shall be paid to
the Employee quarterly on each March 31, June 30, September 30 and December 31 during the Restriction Period; provided, however, that if any such date falls on a non-business day, such payment will be made on the
business day immediately prior to such date. Any remaining dividend equivalent amounts credited to the account of the Employee on the date that the Restricted Stock Units are converted to shares of Common Stock, or subsequently credited to such
account with respect to a Record Date that occurs during the Restriction Period, shall be paid to the Employee on the next successive Dividend Payment Date. The dividend equivalent amounts shall be paid from the general assets of the Corporation and
shall be treated and reported as additional compensation for the year in which payment is made. 

  
 1 

 5. AWARD PAYOUT 

Unless forfeited or converted and paid earlier as provided in Section 7 below, the Restricted Stock Units granted hereunder will vest (“Vest”)
and be converted into shares of Common Stock and delivered to the Employee as soon as practicable following the Vesting Date (but in no event later than 60 days following the Vesting Date) provided that the Employee is employed by the Corporation on
the Vesting Date. The vesting and conversion from Units to Common Stock will be one Unit for one share of Common Stock. 
 6. TRANSFERABLE ONLY UPON
DEATH 
 This Restricted Stock Unit grant shall not be assignable or transferable by the Employee except by will or the laws of descent and distribution.

 7. TERMINATION, DISABILITY OR DEATH 
  

	 	(a)	Termination. If the Employee’s employment with the Corporation is terminated prior to the Vesting Date for any reason other than on account of death or Disability (as defined below), whether by the Employee or by
the Corporation with Cause (as defined below), then the Restricted Stock Units will be forfeited upon such termination. “Cause” shall mean the Employee’s having been convicted in a court of competent jurisdiction of a felony or having
been adjudged by a court of competent jurisdiction to be liable for fraudulent or dishonest conduct, or gross abuse of authority or discretion, with respect to the Corporation, and such conviction or adjudication has become final and non-appealable.
If the Employee’s employment with the Corporation is terminated prior to the Vesting Date by the Corporation without Cause, then the terms of all outstanding Units shall be unaffected by such termination and the Restricted Stock Units will vest
on [                    ]; provided, however, that in the case of the Employee’s termination on account of Disability, if the Vesting Date
occurs following such termination but before the date which is six months following such termination, to the extent compliance with the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any successor provision) is necessary to avoid the
application of an additional tax under Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A), the Vesting Date shall be postponed until the date that is six months following such termination. 

 

	 	(b)	Disability. If the Employee’s employment with the Corporation is terminated prior to the Vesting Date as the result of a disability under circumstances entitling the Employee to the commencement of benefits under a
long-term disability plan maintained by the Corporation (“Disability”), then the terms of all outstanding units shall be unaffected by such Disability and the Restricted Stock Units will vest on
[                    ]; provided, however, that in the case of the Employee’s termination on account of Disability, if the Vesting Date occurs
following such termination but before the date which is six months following such termination, to the extent compliance with the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any successor provision) is necessary to avoid the application of
an additional tax under Section 409A of the Internal Revenue Code of 1986, as amended (“Section 3 409A), the Vesting Date shall be postponed until the date that is six months following such termination. 

 

	 	(c)	Death. If, prior to the Vesting Date, the Employee dies while employed by the Corporation or after termination by reason of Disability, then the Restriction Period shall lapse and the Vesting Period shall be accelerated
and all outstanding Units shall be converted into shares of Common Stock and delivered to the Employee’s estate or beneficiary. 

  
 2 

 8. TAX WITHHOLDING 

At the time Units are converted into shares of Common Stock and delivered to the Employee, the Employee will recognize ordinary income equal to the fair market
value of the common shares received. The Corporation shall withhold applicable taxes as required by law at the time of such Vesting by deducting shares of Common Stock from the payment to satisfy the obligation prior to the delivery of the
certificates for shares of Common Stock. Withholding will be at the minimum rates prescribed by law; therefore, the Employee may owe additional taxes as a result of the distribution. The Employee may not request tax to be withheld at greater than
the minimum rate. If the Employee terminates employment on account of Disability or Retirement and the Units are not forfeited, the Corporation may require the Employee to pay to the Corporation or withhold from the Employee’s compensation, by
canceling Units or otherwise, an amount equal to satisfy the obligation to withhold federal employment taxes as required by law. 
 9. CHANGE IN CONTROL

 In the event of a change in control of the Corporation, as defined in Section 11 of the Plan, the Restriction Period of all outstanding Units
shall lapse and the Vesting Date shall be accelerated and all outstanding Units shall convert to shares of Common Stock. Such shares will be distributed no later than 2 1⁄2 months following the date of such change in control. 
 10. AMENDMENT AND TERMINATION OF PLAN OR AWARDS 

As provided in Section 8 of the Plan, subject to certain limitations contained within Section 8, the Board of Directors may at any time amend,
suspend or discontinue the Plan and the Management Development and Compensation Committee of the Board of Directors may at any time alter or amend all Award Agreements under the Plan. Notwithstanding Section 8 of the Plan, no such amendment,
suspension or discontinuance of the Plan or alteration or amendment of this Award Agreement shall accelerate any distribution under the Plan or, except with the Employee’s express written consent, adversely affect any Restricted Stock Unit
granted under this Award Agreement; provided, however, that the Board of Directors or the Management Development and Compensation Committee may amend the Plan or this Award Agreement to the extent it deems appropriate to cause this Agreement or the
Units hereunder to comply with Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) (including the distribution requirements thereunder) or be exempt from Section 409A or the tax penalty under
Section 409A(a)(1)(B). If the Plan and the Award Agreement are terminated in a manner consistent with the requirements of Treas. Reg. § 1.409A-3(j)(4)(ix), the Board of Directors may, in its sole discretion, accelerate the conversion of
Units to shares of Common Stock and immediately distribute such shares of Common Stock to the Employee. 
 11. EXECUTION OF AWARD AGREEMENT 

No Restricted Stock Unit granted under this Award Agreement is distributable nor is this Award Agreement enforceable until this Award Agreement has been fully
executed by the Corporation and the Employee. By executing this Award Agreement, the Employee shall be deemed to have accepted and consented to any action taken under the Plan by the Management Development and Compensation Committee, the Board of
Directors or their delegates. 

  
 3 

 12. MISCELLANEOUS 
  

	 	(a)	Nothing contained in the Award Agreement confers on the Employee the rights of a shareholder with respect to this Restricted Stock Unit award during the Restriction Period. 

 

	 	(b)	For purposes of this Award Agreement, the Employee will be considered to be in the employ of the Corporation during an approved leave of absence unless otherwise provided in an agreement between the Employee and the
Corporation. 

  

	 	(c)	Nothing contained in this Award Agreement or in any Restricted Stock Unit granted hereunder shall confer upon any Employee any right of continued employment by the Corporation, expressed or implied, nor limit in any way
the right of the Corporation to terminate the Employee’s employment at any time. 

  

	 	(d)	Except as provided under Section 6 herein, neither these Units nor any of the rights or obligations hereunder shall be assigned or delegated by either party hereto. 

13. NOTICES 
 Notices and all other communications
provided for in this Award Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by overnight mail courier service, postage prepaid, addressed as follows: 

If to the Employee, to the address set forth in the first paragraph in this Award Agreement. 

If to the Corporation, to: 
 Martin Marietta Materials, Inc.

 2710 Wycliff Road 
 Raleigh, NC 27607 

Fax: (919) 783-4535 
 Attn: Corporate Secretary 

or to such other address or such other person as the Employee or the Corporation shall designate in writing in accordance with this Section 13, except
that notices regarding changes in notices shall be effective only upon receipt. 
 14. GOVERNING LAW 

This Award Agreement shall be governed by the laws of the State of North Carolina. 

IN WITNESS WHEREOF, the Corporation has caused this Award Agreement to be executed and the Employee has hereunto set his hand as of the day and year first
above written. 
  

			
	MARTIN MARIETTA MATERIALS, INC.
		
	By:		  

	Corporate Secretary
	
	EMPLOYEE
		
	By:		  

	Employee’s Signature

  
 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00240-of-00352.parquet"}]]