Document:

EXHIBIT
10.4

 

TRANCHE C TERM LOAN JOINDER AGREEMENT

 

THIS TRANCHE C TERM LOAN JOINDER AGREEMENT (this “Agreement”),
dated as of May 14, 2008, to the Credit Agreement referenced below is by
and among the Tranche C Term Lenders identified on the signature pages hereto
(the “Tranche C Term Lenders”), DIRECTV HOLDINGS LLC, a Delaware limited
liability company (the “Borrower”), and BANK OF AMERICA, N.A., as
Administrative Agent and Collateral Agent.

 

W I T N E S S E T H

 

WHEREAS, pursuant to the terms and conditions of that
certain Credit Agreement, dated as of April 13, 2005 (as amended,
restated, increased, supplemented and otherwise modified from time to time, the
“Credit Agreement”) by and among the Borrower, the Guarantors identified
therein, the Lenders from time to time party thereto, and Bank of America,
N.A., as the Administrative Agent and Collateral Agent, the Lenders have
provided to the Borrower a $500 million revolving credit facility, a Tranche A
Term Loan in an initial aggregate principal amount of $500 million and a
Tranche B Term Loan in an initial aggregate principal amount of $1.5 billion;

 

WHEREAS, pursuant to Section 2.01(g) and
(k) of the Credit Agreement, the Borrower has requested that the
Administrative Agent establish a Tranche C Term Loan in an initial aggregate
principal amount of $1 billion under the Credit Agreement;

 

WHEREAS, in connection with the arrangement and syndication
of the Tranche C Term Loan, Banc of America
Securities LLC and
J.P. Morgan Securities Inc. will act as Joint Lead Arrangers and Joint Book
Managers, and JPMorgan Chase Bank, N.A. will act as sole and exclusive
Syndication Agent; and

 

WHEREAS, each of the Tranche C Term Lenders has agreed
to make a portion of the Tranche C Term Loan on the terms and conditions set forth
herein and to become a “Tranche C Term Lender” under the Credit Agreement in
connection therewith;

 

NOW,
THEREFORE, IN CONSIDERATION of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

1.             Defined Terms.  Capitalized
terms not otherwise defined herein shall have the meanings ascribed to them in
the Credit Agreement.

 

2.             Tranche C Term
Loan Commitments.  The initial
Tranche C Term Loan Commitments and Tranche C Term Loan Commitment Percentages
are set forth on Schedule 2.01 attached hereto.  Further, Schedule 2.01 to the Credit
Agreement shall be deemed amended to include the information on the Tranche C
Term Loan Commitments and the Tranche C Term Loan Commitment Percentages
provided on Schedule 2.01 attached hereto.

 

3.             Funding of
Tranche C Term Loan.  Subject to
the terms and conditions set forth herein, each of the Tranche C Term Lenders
severally agrees to make its portion of a term loan (the “Tranche C Term
Loan”) in an original principal amount of ONE BILLION DOLLARS
($1,000,000,000) to the Borrower in a single advance.  The Tranche C Term Loan may consist of Base
Rate Loans, Eurodollar Rate Loans or a combination thereof, as the Borrower may
request.  Amounts repaid on the Tranche C
Term Loan may not be reborrowed.

 

 

4.             Principal
Payments of Tranche C Term Loan.  The full original principal amount of the
Tranche C Term Loan shall be payable in nineteen (19) consecutive quarterly
installments which, except for the final installment, shall be due on the last
day of each March, June, September and December, beginning with September 30,
2008 and ending on December 31, 2012, with the final installment due on April 13,
2013 (being the eighth anniversary of the Closing Date).  Subject to adjustment in connection with
prepayments made pursuant to Section 2.06 of the Credit Agreement, each of
the first eighteen (18) quarterly installments shall be in the principal amount
equal to the sum of $2,500,000, and the final installment shall be in the
amount of the remaining principal balance of the Tranche C Term Loan.

 

5.             Interest on
Tranche C Term Loan.  Subject to
the provisions of Section 2.08(b) of the Credit Agreement, the
principal amount of the Tranche C Term Loan shall bear interest at a rate per
annum as follows:

 

(i)            the portion of the Tranche C Term Loan comprised of
Eurodollar Rate Loans shall bear interest equal to the sum of (A) (i) prior
to the third anniversary of the establishment of the Tranche C Term Loan, the
greater of the Eurodollar Rate for such Interest Period or three percent (3.0%)
or (ii) after the third anniversary of the establishment of the Tranche C
Term Loan, the Eurodollar Rate for such Interest Period plus (B) the
Applicable Percentage; or

 

(ii)           the portion of the Tranche C Term Loan comprised of
Base Rate Loans shall bear interest equal to the sum of (A) (i) prior
to the third anniversary of the establishment of the Tranche C Term Loan, the
greater of the Base Rate for such Interest Period or four percent (4.0%) or (ii) after
the third anniversary of the establishment of the Tranche C Term Loan, the
Eurodollar Rate for such Interest Period plus (B) the Applicable
Percentage.

 

The
“Applicable Percentage” for the Tranche C Term Loan shall be (i) two
and one-quarter of one percent (2.25%) for Eurodollar Rate Loans, and (ii) one
and one-quarter of one percent (1.25%) for Base Rate Loans.

 

6.             Call Protection
on Tranche C Term Loan.  Due to the inability to accurately access the
damages suffered by the Tranche C Term Lenders if forced to redeploy their
capital, any voluntary prepayment of the Tranche C Term Loan made in
connection with the refinancing of the Tranche C Term Loan with a term loan
with more favorable pricing for the Borrower shall be made with a one percent
(1.00%) premium if made within the first year after establishment of the
Tranche C Term Loan.  On or after the first anniversary of the date
hereof, no premiums shall be payable pursuant to this Section 6 in
connection with any prepayments of the Tranche C Term Loan.

 

7.             Tranche C Term
Lenders’ Representations and Warranties.  Each Tranche C Term Lender (a) represents
and warrants that it is a commercial lender, other financial institution or
other “accredited” investor (as defined in Regulation D as promulgated by the
SEC) that makes or acquires loans in the ordinary course of business and that
it will make or acquire Tranche C Term Loans for its own account in the
ordinary course of business; (b) confirms that it has received a copy of
the Credit Agreement, together with copies of the financial statements referred
to in Section 7.01 of the Credit Agreement and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Agreement; 

 

 

(c) agrees
that it will, independently and without reliance upon the Administrative Agent
or any other Lender, and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Agreement; (d) appoints and
authorizes each of the Administrative Agent and the Collateral Agent to take
such action as agent on its behalf and to exercise such powers and discretion
under the Credit Agreement as are delegated to the Administrative Agent and/or
the Collateral Agent by the terms thereof, together with such powers and
discretion as are reasonably incidental thereto; (e) agrees that, as of
the date hereof, each Tranche C Term Lender shall be (i) a party to the
Credit Agreement and the other Credit Documents and (ii) a “Tranche C Term
Lender” for all purposes of the Credit Agreement and the other Credit
Documents; (f) agrees that it will perform all of the obligations that by
the terms of the Credit Agreement are required to be performed by it as a “Lender”
and a “Tranche C Term Lender” under the Credit Agreement; (g) agrees that
it and each other Tranche C Lender shall have the rights and obligations of a
Lender and a Tranche C Term Lender under the Credit Agreement and the other
Credit Documents; (h) ratifies and approves all acts previously taken by
the Administrative Agent on such Tranche C Term Lender’s behalf; and (i) agrees
to waive the borrowing notice provisions of Section 2.02 of the Credit
Agreement with respect to the advance of the Tranche C Term Loan on the date
hereof.

 

8.             Borrower’s and
Guarantors’ Agreements.  The
Borrower and the Guarantors agree that, as of the date hereof, each Tranche C
Term Lender shall be (i) a party to the Credit Agreement and the other
Credit Documents, (ii) a “Lender” and a “Tranche C Term Lender” for all
purposes of the Credit Agreement and the other Credit Documents and (iii) have
the rights and obligations of a Lender and a Tranche C Term Lender under the
Credit Agreement and the other Credit Documents.

 

9.             Borrower’s and
Guarantors’ Representations and Warranties.  The Borrower and the Guarantors affirm that (a) the
representations and warranties made by the Credit Parties in the Credit Agreement
and in the other Credit Documents and that are contained in any certificate
furnished at any time under or in connection with the Credit Documents are true
and correct in all material respects on and as of the date hereof (except for
those that expressly relate to an earlier date) and (b) no Default or
Event of Default has occurred and is continuing on the date hereof or after
giving effect to the Tranche C Term Loan.

 

10.          Guarantor Acknowledgments.  Each
Guarantor hereby (i) acknowledges and consents to all of the terms and
conditions of this Agreement, (ii) reaffirms that, jointly and
severally together with the other Guarantors, it guarantees the prompt payment
and performance of their obligations as provided in Article IV of the
Credit Agreement and (iii) acknowledges and agrees that such obligations
will include any Obligations with respect to or resulting from the
establishment of the Tranche C Term Loan.

 

11.          Conditions
Precedent.  This
Amendment shall be effective immediately upon satisfaction of the following
conditions:

 

(a)           Executed Agreement.  Receipt by the Administrative Agent of
multiple counterparts of this Agreement duly executed by the Credit Parties,
the Tranche C Term Lenders and the Administrative Agent.

 

(b)           Legal Opinions.  Receipt by the Administrative Agent of
favorable legal opinions of counsel for the Credit Parties, in form and
substance reasonably satisfactory to the Administrative Agent and the requisite
Lenders.

 

 

(c)           Organization Documents, Incumbency, Resolutions, Etc.  Receipt by the Administrative Agent of the
following, each of which shall be originals or facsimiles (followed promptly by
originals), in form and substance satisfactory to the Administrative Agent:

 

(i)            copies of the Organization
Documents of each Credit Party certified to be true and complete as of a recent
date by the appropriate Governmental Authority of the state or other
jurisdiction of its incorporation or organization, where applicable, and
certified by a secretary or assistant secretary of such Credit Party to be true
and correct as of the date of this Agreement, unless a Responsible Officer of
such Credit Party certifies in a certificate that the Organization Documents
previously delivered to the Administrative Agent in connection with the Credit Agreement
have not been amended, supplemented or otherwise modified and remain in full
force and effect as of the date hereof;

 

(ii)           incumbency certificates
identifying the Responsible Officers of each Credit Party who are authorized to
execute this Amendment and related documents and to act on behalf of such
Credit Party in connection with this Agreement and the Credit Documents, unless
a Responsible Officer of such Credit Party certifies in a certificate that the
incumbency certificates previously delivered to the Administrative Agent in
connection with the Credit Agreement have not been amended, supplemented or
otherwise modified and remain in full force and effect as of the date hereof.

 

(iii)          such certificates of
resolutions or other action, incumbency certificates and/or other certificates
of Responsible Officers of each Credit Party as the Administrative Agent may
require evidencing the identity, authority and capacity of each Responsible
Officer thereof authorized to act as a Responsible Officer in connection with
this Amendment; and

 

(iv)          such documents and
certifications as the Administrative Agent may reasonably require to evidence
that each Credit Party is duly organized or formed, and is validly existing,
and in good standing in its state of organization or formation;

 

(d)           Receipt by the Administrative Agent of all other fees and expenses required to be paid
on or before the establishment of the Tranche C Term Loan, including, without
limitation, fees and expenses of Moore & Van Allen, PLLC, legal counsel
to the Administrative Agent.

 

12.          Notice
Addresses of Tranche C Term Lenders.  The address of each Tranche C Term Lender for
purposes of all notices and other communications shall be as provided in the
Administrative Questionnaire delivered by such Tranche C Term Lender to the
Administrative Agent.

 

13.          Multiple
Counterparts.  This
Agreement may be executed in any number of counterparts and by the various
parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute
one contract.  Delivery of an executed
counterpart of this Agreement by telecopier shall be effective as delivery of a
manually executed counterpart of this Agreement.

 

14.          Governing Law.  This Agreement shall be governed by, and
construed in accordance with, the law of the State of New York.

 

[Signatures on Following Pages]

 

 

IN
WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
executed by a duly authorized officer as of the date first above written.

 

	
  BORROWER:

  	
  DIRECTV
  HOLDINGS LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  GUARANTORS:

  	
  DIRECTV
  FINANCING CO., INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DIRECTV
  ENTERPRISES, LLC,

  
	
   

  	
  a
  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTV
  CUSTOMER SERVICES, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DIRECTV
  HOME SERVICES, LLC,

  
	
   

  	
  a
  Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DIRECTV,
  INC.,

  
	
   

  	
  a
  California corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

DIRECTV HOLDINGS
LLC

TRANCHE C TERM LOAN JOINDER AGREEMENT

 

 

	
   

  	
  DIRECTV MERCHANDISING, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DIRECTV
  OPERATIONS, LLC,

  
	
   

  	
  a
  California limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DIRECTV
  PROGRAMMING HOLDINGS I, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DIRECTV
  PROGRAMMING HOLDINGS II, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LABC
  PRODUCTIONS, LLC,

  
	
   

  	
  a
  California limited liability corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
  ADMINISTRATIVE
  AGENT:

  	
  BANK OF
  AMERICA, N.A.,

  
	
   

  	
  as
  Administrative Agent and Collateral Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
  LENDERS:

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
   

  	
  [OTHER LENDERS]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Schedule 2.01

to Tranche C Term Loan Joinder Agreement

 

TRANCHE C TERM LOAN COMMITMENT AMOUNTS AND COMMITMENT PERCENTAGES

 

	
  Lenders

  	
   

  	
  Tranche C Term

  Loan Commitment

  Percentage

  	
   

  	
  Tranche C Term

  Loan

  Commitment

  Amount

  	
   

  
	
  Bank of America,
  N.A.

  	
   

  	
  100.0000000000

  	
  %

  	
  $

  	
  1,000,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  100.0000000000

  	
  %

  	
  $

  	
  1,000,000,000Exhibit 10.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMPLOYMENT AGREEMENT

 

BETWEEN

 

TEAM FINANCIAL, INC.

 

AND

 

ROBERT J. WEATHERBIE

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

	
  Section

  	
   

  	
   

  	
  Page No.

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Term of Agreement and
  Definitions

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Approval

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Entire Agreement

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Validity

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Paragraphs and other
  headings

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Successors

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Designation of
  beneficiaries

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Duties

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Salary, Bonus,
  Benefits, Additional Compensation

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Protection of Company’s
  Interests

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Termination by Company

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Termination by
  Executive

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Consequences of Breach

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  Mitigation and Offset

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Tax “Gross-Up”
  Provision

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Remedies

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  Binding Agreement

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  Arbitration

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Amendment; Waiver

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  Governing Law

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
   

  	
  Notices

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  Signatures

  	
   

  	
  15

  

 

 

2

 

EMPLOYMENT AGREEMENT

BETWEEN

TEAM
FINANCIAL, INC.

AND

ROBERT J.
WEATHERBIE

 

 

 

This Employment Agreement
(“Agreement”) is made this 1st day of
January, 2008, between Team Financial, Inc., a Kansas corporation (“Company”) and Robert J. Weatherbie (“Executive”).

 

A.            Executive
is employed as a Chief Executive Officer, has rendered valuable services to
Company and has acquired an extensive background in and knowledge of Company’s
business.

 

B.            Company
desires to continue the services of Executive and Executive desires to continue
to serve Company as Chairman and Chief Executive Officer.

 

In consideration of the
foregoing recitals and the agreements set forth herein, Company and Executive
agree as follows:

 

1.             Term of Agreement and Definitions:

 

1.0          Term of Agreement: 
On the date of this Agreement Company shall employ Executive and
Executive accepts such employment for a term that, at any moment in time
thereafter, shall be 36 months.

 

1.1          Continuance of Agreement Term: This Agreement shall remain effective until terminated
by Company or terminated by Executive as set forth in Sections 11 and 12.

 

1.2          Definitions: The following definitions shall be used
in the interpretation of this Agreement.

 

1.2.1       Employment on an active full time basis means: the Executive’s professional
services shall be substantially devoted to Company.  Although prior approval by the Company of
Executive’s employment by third parties is not required, the Company shall have
the right to review any employment of Executive by any entity and shall have
the right to require Executive to abandon any unsuitable employment as may be
determined by Company or any activities competitive with Company. The term
active full time basis includes the requirement that Executive refrain from any
activities which interfere with Executive’s Company duties.

 

1.2.2       Year, Month, Week and Day, unless otherwise provided in this
Agreement, the word “year” shall be construed to mean a calendar year of 365
days, the word “month” shall be construed to mean a calendar month, the word “week”
shall be construed to mean a calendar week of 7 days, and the word “day” shall
be construed to mean a period of 24 hours running from midnight to midnight.

 

1.2.3       Annual Base Salary is the sum of money regularly paid by
Company to Executive each calendar year of the term of this Agreement pursuant
to provisions of Section 9.0.

 

1.2.4       Customary payroll practices are those policies and procedures
routinely followed by the Company concerning the time and method of payment of
compensation to its employees as may from time to time be adopted by the
Company during course of this Agreement.

 

1.2.5       Company policies/practices are those written policies adopted by the
Company and/or customary practices routinely followed by the Company which may
from time to time be adopted by the Company during the course of the
Agreement.  The parties acknowledge the
Company may from time to time reasonably enact new policies/practices or alter
existing policies/practices.

 

1.2.6       Organization as used herein shall be broadly defined
to include any business, civic or community group or entity.

 

1.2.7       Willful Misconduct is any act performed with a designed
purpose or intent on the part of a person to do wrong.

 

3

 

1.2.8       Gross misappropriation of funds. Gross misappropriation as used herein
means a large or extreme or flagrant, rather than a minor or unintended,
diversion of Company funds to a non Company business purpose or third party.

 

1.2.9                     Disability shall mean either (i) that the
Executive is incapable of engaging in any substantial gainful occupation by
reason of any medically determinable physical or mental impairment which can be
expected to result in death or to last for a continuous period of not less than
twelve (12) months, or (ii) that the Executive is, by reason of 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 twelve (12) months, receiving income replacement
benefits for a period of not less than three(3) months under an accident
and health plan covering employees of the company, or as hereinafter modified
pursuant to Section 409(a) of the Internal Revenue Code.

 

1.2.10              Earned Executive Bonus. The performance based bonus that is
calculated as of December 31 of each calendar year, per Paragraph 9.1.1,
and is to be paid within thirty (30) calendar days after the certification of
the bonus year year-end income results are posted.

 

1.2.11              Eligible Executive Bonus. The percentage (%) of the Executive’s
Base Salary that the Committee determines is appropriate as a cap for Paragraph
9.1.1 performance based bonus awards.

 

1.2.12              Committee as used herein shall mean the
Compensation Committee of the Board of Directors.

 

2.             Approval

 

2.0 As set forth in the Compensation Committee Charter
this Agreement has been approved by the Committee and any changes/addendums to
this Agreement are subject to Committee approval.

 

3.             Entire Agreement

 

3.0           With respect to the matters specified
herein, this Agreement contains the entire agreement between the parties and
supersedes all prior oral and written agreements, understandings and
commitments between the parties.  This
Agreement shall not affect the provisions of any other compensation, retirement
or other benefit programs of Company to which Executive is a party or of which
he is a beneficiary.

 

4.             Validity

 

4.0           In the event that any provision of
this Agreement is held to be invalid, void or unenforceable, the same shall not
affect, in any respect whatsoever, the validity of any other provision of the
Agreement.

 

5.             Paragraphs and other headings

 

5.0           Paragraphs and other headings
contained in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement.

 

6.             Successors

 

6.0           The rights and duties of a party
hereunder shall not be assignable by that party; provided, however, that this
Agreement shall be binding upon and inure to the benefit of any successor of
Company, and any such successor shall be deemed substituted for Company under
the terms of this Agreement.  The term ‘successor’
as used herein shall include any person, firm, corporation or other business
entity which at any time, by merger, purchase or otherwise, acquires all or
substantially all of the assets or business of Company.

 

4

 

7.             Designation of beneficiaries

 

7.0           If Executive should die during the
term of this Agreement, all such sums due to Executive hereunder shall be paid
as designated by Executive on the attached Beneficiary Designation Form.

 

7.1           The spouse of the Executive shall
join in any designation of a beneficiary other than the spouse.

 

7.2           If Executive wholly fails to
designate a beneficiary as provided for in this paragraph, or if the Executive’s
spouse at the time of his death shall not have joined in the designation of a
beneficiary, then the sums due Executive shall be paid to his estate.

 

8.             Duties

 

8.0           Company employs Executive upon an
active full-time basis, as Chairman of the Board of Directors and Chief
Executive Officer subject to the order and direction of the Board of Directors
(“Board”) of Company.

 

8.1           During the term of this Agreement
Executive shall devote substantially all of his time, attention, and best
efforts to the business of Company and its subsidiaries.  Executive shall perform such duties and shall
exercise such power and authority as delegated by the Board from time to time
provided that such duties are commensurate with the positions of Chairman of
the Board and Chief Executive Officer. 
Executive may engage in other non-business activities such as
charitable, educational, religious and similar types of activities so long as
such activities do not prevent the performance of Executive’s duties herein or
conflict in any material way with the business of Company.  Notwithstanding the above, Executive shall be
permitted to serve as a Director or Trustee of other organizations, in
accordance with the policies of Company.

 

8.2           The duties of Chairman of the Board
and Chief Executive Officer shall be defined using a written job definition,
developed by the Committee, appointed by the Board of Directors, pursuant to
the provisions of Section 2.0.  The
Committee shall consult with Executive in the development of the written job
definition.  Executive and said written
job definition shall be subject to any systematic evaluation system(s) that
the Company may from time to time employ.

 

8.3           Executive’s duties shall be performed
principally at Company’s headquarters located in Paola, Kansas.  During the term of the Agreement, it is
understood that Company expects to maintain its principal place of business in
Paola, Kansas.  If the requirements of
Company, as determined by the Board, make it desirable to relocate the
principal offices of Company to another location during any period of
employment, Executive will be consulted in advance of any such relocation.  Unless Executive otherwise consents, the
principal place of Executive’s employment shall be within a 50 mile radius of
Paola, Kansas.

 

9.             Salary, Bonus, Benefits, Additional
Compensation

 

9.0          Executive’s Base Salary. Executive shall receive an annual Base
Salary of $300,431.25 payable according to the customary payroll practices of
Company and subject to all required withholding taxes.  The Committee, pursuant to provisions of Section 2.0,
may increase this annual base salary upon relevant circumstances.  Executive shall be reviewed at least
annually.  At least annually the
Compensation Committee will review Executive’s Base Salary for competitiveness
and appropriateness in the industry.  Any
increase in annual Base Salary awarded to the Executive by Company, shall
constitute a new annual Base Salary for the purpose of this Agreement. To be
effective such changes in the annual Base Salary shall be in writing signed by
the Company.

 

9.1          Bonus.

 

9.1.0       Standard Company Bonuses. 
Executive shall be eligible to receive, in addition to his Base Salary,
any contributions or sums specified as additional compensation through any
established plan or policy of Company which is available to executives as
compensation over and above established Base Salaries.

 

5

 

9.1.1       Executive Bonus. 
In addition, Executive shall be entitled to receive an annual bonus as
additional compensation.  The amount of
such bonus shall be based upon criteria established by the Committee, pursuant
to provisions of Section 2.0, and may include either or both stock and cash.  Provided, however, such bonus shall not
exceed fifty percent (50%) of Executive’s Base Salary in effect for the year
for which the bonus is granted.  During
the term of this Agreement, the Executive’s bonus shall be paid not later than January 31
of the calendar year following the year for which the bonus is granted.

 

9.2          Benefits.

 

9.2.0        General Benefits.  Executive shall be entitled to receive all
benefits generally made available to executives of Company as may from time to
time be in effect.

 

9.2.1        Life Insurance Policy.  For the term of this Agreement Executive
shall be entitled, in addition to life insurance coverage in effect for all
employees, to a life insurance policy in the amount of $240,000.00, all
premiums to be paid by Company.  Upon termination
of this Agreement for any cause other than death, this life insurance policy
shall be assigned to the Executive.

 

9.2.2        Group Life, Medical,
Dental and Other health and welfare Plans.  Executive shall be entitled to participate,
during the term of the Agreement, under the terms and conditions thereof, in
any group life, medical, dental or other health and welfare plans generally
available to management personnel of Company which may be in effect from time
to time; provided that nothing herein shall require the Company to establish or
maintain such plans.

 

9.2.3        Executive
Expenses. Executive shall be entitled to reimbursement for business
expenses.  Executive shall be expected to
incur various business expenses customarily incurred by persons holding like
positions, including but not limited to traveling, entertainment and similar
expenses, all of which are to be incurred by Executive for the benefit of
Company.  Executive shall be subject to
Company’s policies regarding the reimbursement and non-reimbursement of said
expense which may be in effect from time to time.  Executive acknowledges that Company policies
do not necessarily provide for the reimbursement of all expenses.

 

9.2.4        Special
Executive Allowance.  Company
agrees to pay reasonable room, board, travel, and sponsored event expenses of
Executive’s spouse on three (3) business trips per year of Executive’s
choice.

 

9.2.5        Accounting.  Executive shall account to Company for any
reimbursement or payment of such expenses in such a manner as Company practices
may from time to time require.  Subject
to Company’s policy regarding the payment of reimbursable expenses, Company
shall reimburse Executive for such expenses from time to time, at Executive’s
request.

 

9.2.6        Home office use.  Executive shall be entitled to reimbursement,
not to exceed $3,500.00 in any one year time period, for home office use,
including, but not limited to, an appropriate computer/modem installation,
printer, desk, chair, and such business related supplies as are used for Company’s
business.

 

9.2.7        Indemnification.  Company shall indemnify and hold Executive
harmless for any legal fees and. expenses incurred by Executive in the
performance of his duties as a result of civil or criminal actions against him
in accordance with the indemnification provisions of the Articles of
Incorporation and Bylaws of Company.

 

9.2.8        Financial and Tax Advice.  During (i) the term of this Agreement, (ii) the
twelve month period following the termination of this Agreement as a result of
death, (iii) a two year period following the termination of this Agreement
as a result of disability, (iv) a three year period following termination
of this Agreement by Executive for material breach or good cause, and (v) a
three year period following a termination of this Agreement by Company without
cause; Company shall pay to Executive, or the Executive’s designated
beneficiary or his estate if he be deceased, a sum as reimbursement for
reasonable 

 

6

 

out-of-pocket expenses
incurred for third-party professional financial and tax advice provided by a
licensed professional of Executive’s choice, or the choice of Executive’s
designated beneficiary, or in the absence of a designated beneficiary his
estate if he be deceased.  Provided,
however, that in (i) above, the sum shall not exceed ten percent (10%) of
Executive’s annual Base Salary for that year; (ii) above, the sum shall
not exceed ten percent (10%) of Executive’s annual Base Salary for that year;
(iii), (iv) and (v) above, the sum shall not exceed ten percent
(10%), each year, of Executive’s annual Base Salary at the time of Executive’s
disability or time of termination.

 

9.2.9        Automobile.  Executive shall be provided with a personal
automobile under arrangements equivalent to those currently in effect with
respect to other Company executives and of equivalent size and features as
presently driving.

 

9.3           Additional
Compensation. Executive shall be eligible to receive, in addition to
his Base Salary, any contributions or sums specified for additional
compensation through any established plan or policy of  Company which is available to executives as
compensation over and above established salaries, including but not limited to stock
options.

 

9.4           Tax
Liability. Any tax liability which these benefits create for
Executive will be the sole responsibility of Executive.

 

10.          Protection of Company’s Interests

 

10.0         During the term of this Agreement
Executive shall not directly or indirectly engage in competition with, or not
own any interest in any business which competes with, any business of Company;
provided, however, that the provisions of this Section shall not prohibit
beneficial ownership of not more than five percent (5%) of voting stock of any
publicly held corporation.

 

10.1         Except for actions taken in the course
of his employment hereunder, at no time shall Executive divulge, furnish or
make accessible to any person any information of a confidential or proprietary
nature obtained by him while in the employ of Company.  Executive shall at all times comply with
company policies regarding disclosure of non public information and business
secrets including, but not limited to, Company’s Prevention of Insider Trading
policy. Upon termination of his employment by Company, Executive shall return
to Company all such information which exists in writing or other physical form
and all copies thereof in his possession or under his control.

 

10.2         Company, its successors and assigns,
shall, in addition to Executive’s services, be entitled to receive and own all
of the results and proceeds of said services (including, without limitation,
literary material and other intellectual property) produced or created during
the term of Executive’s employment hereunder. 
Executive shall, at the request of Company, execute such assignments,
certificates or other instruments as Company may from time to time deem
necessary or desirable to evidence, establish, maintain, protect, enforce or
defend its right or title to any such material.

 

11.          Termination by Company

 

11.0         Company shall have the right to
terminate this Agreement under the following circumstances:

 

	
   

  	
  (i)

  	
   

  	
  Upon the death
  of Executive; paragraph 11.1

  
	
   

  	
  (ii)

  	
   

  	
  Upon the disability
  of Executive; paragraph 11.2

  
	
   

  	
  (iii)

  	
   

  	
  Upon material breach
  or good cause; paragraph 11.3

  
	
   

  	
  (iv)

  	
   

  	
  Upon written notice by Company without cause;
  paragraph 11.4 and

  
	
   

  	
  (v)

  	
   

  	
  Upon written notice by Company  of
  Company’s intention to have this Agreement expire in thirty six (36) months;
  paragraph 11.5

  

 

11.1         If Executive dies before his employment
with Company is otherwise terminated, Executive’s designated beneficiary, or in
the absence of a designated beneficiary, the estate of the Executive, shall
receive all sums due under the Split Dollar Agreement and Deferred Compensation
Agreement between 

 

 

7

 

Executive and TeamBank,
N. A. then in existence.  In the event
the total amount paid to the beneficiaries or the estate of Executive is less
than $500,000.00, Company shall pay to the designated beneficiary of Executive,
or in the absence of a designated beneficiary, to the estate of Executive, as
soon as reasonably practical, a sum equal to the difference between the total
amount paid under the Split Dollar Agreement and Deferred Compensation
Agreement and $500,000.00. Under this section it is the intent of the Company
and Executive that the Executive’s beneficiary, or in the absence of a
designated beneficiary, the Executive’s estate, receive in total death benefits
not less than $500,000.00. Company may purchase life insurance to cover all or
any part of its obligations contained in this section. Executive agrees to take
a physical examination to facilitate the Company’s purchase of such
insurance.  In the event that Executive
is deemed uninsurable, Company may elect to pay any funds owed by Company under
this section in six (6) equal monthly payments following the month of
Executive’s death. Executive’s dependents shall also be entitled to;

 

(i)            All Company insured and self insured
medical and dental plans in which Executive was participating immediately prior
to his death, provided, however, that if Company so elects, or such continued
participation is not possible under the general terms and conditions of such
plans or under such policies, Company shall, in lieu of the foregoing, arrange
to have issued for the benefit of Executive’s dependents equivalent benefits
(on an after-tax basis); provided, further that, in no event shall Executive’s
dependents be required to pay any premiums or other charges in an amount
greater than that which Executive would have paid in order to participate in
Company’s plans and policies. This entitlement shall be maintained in affect
for the continued benefit of Executive’s dependents for a period of twelve (12)
months after the month of the executive’s death.

 

11.2         With respect to any termination by
Company for disability as defined above in 1.2.9, the specifics of the basis of
termination shall be communicated, pursuant to provisions of Section 2.0,
to Executive in writing at least thirty (30) days before the date on which the
termination is proposed to take effect. 
Executive shall have until the effective date of the notice to cure or
remedy such disability and/or correct the misconception of the disability.  If this Agreement is terminated for
disability, any questions as to the existence of the Total and Permanent
disability of Executive as to which Executive and Company cannot agree shall be
determined in writing by a qualified independent physician mutually acceptable
to Executive and Company.  If Executive
and Company cannot agree as to a qualified independent physician, each shall
appoint such a physician and those two physicians shall select a third physician
who shall make such determination in writing. 
If there is a disagreement among Executive and Company as to the
disability of Executive, the effective date of the termination will be extended
a reasonable time to allow for a determination by a physician, as described
above.  Any refusal by Executive to
submit to a medical examination for the purpose of certifying disability under
this section shall be deemed to constitute conclusive evidence of Executive’s
disability.  If Executive is disabled
before their employment with Company is otherwise terminated, Company shall
continue to pay the current annual Base Salary for three (3) years to the
Executive, or if the Executive is totally incapacitated, to his appointed
guardian, at the time he is determined to be disabled.  Whenever compensation is payable to Executive
hereunder, during a time when he is disabled, pursuant to the terms of any
insurance provided by Company, the compensation payable to him hereunder shall
be inclusive of any such disability insurance and shall not be in addition
thereto.  If this agreement is terminated
for disability Executive shall also be entitled to:

 

(i)            All Company insured and self insured
medical and dental plans in which Executive was participating immediately prior
to termination, provided, however, that if Company so elects, or such continued
participation is not possible under the general terms and conditions of such
plans or under such policies, Company shall, in lieu of the foregoing, arrange
to have issued for the benefit of Executive and Executive’s dependents
equivalent benefits (on an after-tax basis); provided, further that, in no
event shall Executive and Executive’s dependents be required to pay any
premiums or other charges in an amount greater than that which Executive would
have paid in order to participate in Company’s plans and policies. This
entitlement shall be maintained in effect for the continued benefit of
Executive and Executive’s dependents for a period of twelve (12) months after
the date of termination due to disability or until the commencements of each
equivalent benefit from Executive’s new employer, but not to be provided longer
than twelve (12) months.

 

8

 

(ii)           An Earned Executive Bonus and other
such Bonuses and Compensation as provided for in Section 9 above, it being
understood, however, that payment for Earned Executive Bonus shall be paid, in
cash, within 30 days after receipt of the bonus year year-end income results,
and that all other payments due will be paid in cash within thirty (30) days of
the date of termination.  All stock
options granted by Company to Executive under any provision of Section 9
or granted by Company to Executive prior to the date hereof shall accelerate
and become immediately exercisable;

 

(iii)          Company shall pay Executive a sum
equal to the Paola Country Club membership dues for one (1) year;

 

(iv)          Company shall transfer to Executive
title of the personal car, furnished Executive by Company, in use at the time
of the termination.

 

11.3         For purposes of this Agreement,
material breach and good cause shall mean willful misconduct in following the
legitimate directions of the Committee; commission of a significant act of
dishonesty, deceit or breach of fiduciary duty in the performance of Executive’s
duties; gross misappropriation of Company funds or property; habitual
drunkenness; excessive absenteeism not related to illness, sick leave or
vacations.  Provided, however, Executive
shall be entitled to written notice of any acts which the Committee considers
is misconduct or excessive absenteeism as described in this paragraph.  Such notice shall include the specifics of
the basis for possible termination for cause and shall be communicated to
Executive in writing at least thirty (30) days prior to any proposed termination.  Prior to any such termination, if requested
before the effective date of the intended termination, Executive shall be given
a reasonable period of time in which to show that he has corrected any
specified deficiencies.  Upon the cure or
remedy of such deficiencies, the Company shall rescind its notice of
termination.  If there is any question
about the effective correction of the deficiencies, a written decision will be
sought from a lawyer agreed to by Company and Executive.  If the Company and Executive cannot agree on
a lawyer, each will pick a lawyer who will together pick a separate lawyer who
will render a written decision as to whether or not the deficiencies have, as a
matter of fact, been cured. If this Agreement is terminated for material breach
or good cause, Executive shall be entitled to:

 

(i)            All Company insured and self insured
medical and dental plans in which Executive was participating immediately prior
to termination, provided, however, that if Company so elects, or such continued
participation is not possible under the general terms and conditions of such
plans or under such policies, Company shall, in lieu of the foregoing, arrange
to have issued for the benefit of Executive and Executive’s dependents
equivalent benefits (on an after-tax basis); provided, further that, in no
event shall Executive and Executive’s dependents be required to pay any
premiums or other charges in an amount greater than that which Executive would
have paid in order to participate in Company’s plans and policies. This
entitlement shall be maintained in effect for the continued benefit of
Executive and Executive’s dependents for a period of six (6) months after
the date of termination for material breach or good cause or until the
commencements of each equivalent benefit from Executive’s new employer, but not
to be provided longer than six (6) months;

 

11.4         Company shall be entitled to terminate
this Agreement without cause upon ninety (90) days written notice to
Executive.  If Company shall so terminate
this Agreement, Executive shall be entitled to:

 

(i)            All Company insured and self insured
medical and dental plans in which Executive was participating immediately prior
to termination, provided, however, that if Company so elects, or such continued
participation is not possible under the general terms and conditions of such
plans or under such policies, Company shall, in lieu of the foregoing, arrange
to have issued for the benefit of Executive and Executive’s dependents
equivalent benefits (on an after-tax basis); provided, further that, in no
event shall Executive and Executive’s dependents be required to pay any
premiums or other charges in an amount greater than that which Executive would
have paid in

 

 

9

 

order
to participate in Company’s plans and policies. This entitlement shall be
maintained in effect for the continued benefit of Executive and Executive’s
dependents for a period of three (3) years after the date of termination
without cause or until the commencements of each equivalent benefit from
Executive’s new employer, but not to be provided longer than three (3) years;

 

(ii)           The group individual life insurance
policies of Company then in effect for Executive, provided that if Company so
elects, or such continued participation is not possible under the general terms
and conditions of such plans or under such policies, Company shall, in lieu of
the foregoing, arrange to have issued for the benefit of Executive and
Executive’s dependents equivalent benefits (on an after-tax basis); provided,
further that, in no event shall Executive be required to pay any premiums or
other charges in an amount greater than that which Executive would have paid in
order to participate in Company’s plans and policies. This entitlement shall be
maintained in effect for the continued benefit of Executive and Executive’s
dependents for a period of three (3) years after the date of termination
without cause or until the commencements of each equivalent benefit from
Executive’s new employer, but not to be provided longer than three (3) years;

 

(iii)          A cash payment equal to the present
value (based on a discount rate equal to the then current 5 year treasure note
with a floor of 5% and a ceiling of 9%) of Executive’s Base Salary for thirty
six (36) months, payable within thirty (30) days of the date of such
termination;

 

(iv)          Any Earned Executive Bonus and other
such Bonuses and Compensation as provided for in Section 9 above, it being
understood, however, that payment for Earned Executive Bonus shall be paid, in
cash, within 30 days after receipt of the bonus year year-end income results,
and that all other payments due will be paid in cash within thirty (30) days of
the date of termination.  All stock
options granted by Company to Executive under any provision of Section 9
or granted by Company to Executive prior to the date hereof shall accelerate
and become immediately exercisable;

 

(v)           A sum as reimbursement for reasonable
out-of-pocket expenses incurred for third-party professional financial and tax
advice provided by a licensed professional of Executive’s choice for a period
of three (3) years after the date of termination, sum not to exceed, in
any one year, ten percent (10%) and in the aggregate, thirty percent (30%) of
Executive’s Base Salary, as  provided in Section 9;

 

(vi)                              Reimbursement of up to $20,000.00 for
professional out-placement service expense incurred by Executive within the 12
months after the date of termination without cause.

 

(vii)                        Company shall pay Executive a sum equal
to the Paola Country Club membership dues for one (1) year;

 

(viii)                        Company shall transfer to Executive title
of the personal car, furnished Executive by Company, in use at the time of the
termination.

 

11.5         Company shall be entitled to terminate
this Agreement by giving written notice to Executive of the Company’s intention
to have the term of this Agreement expire thirty-six (36) months form the date
of such notification. If Company shall so terminate this Agreement, Executive
shall be entitled only to those benefits provided under existing law after the
expiration of the Agreement.

 

11.6         Company may purchase life insurance to
cover all or any part of its obligations contained in this section and
Executive agrees to take a physical examination to facilitate the placement of
such insurance.  In the event that Executive is deemed uninsurable, Company may elect to
disperse the funds due, where a time is not specified herein, in twelve (12)
equal monthly payments.

 

12.          Termination by Executive

 

12.0         Executive shall have the right to
terminate this Agreement under the following circumstances:

 

	
   

  	
   

  	
  (i)

  	
   

  	
  Upon material breach
  or good cause; paragraph 12.1

  
	
   

  	
   

  	
  (ii)

  	
   

  	
  Upon written notice
  to the Compensation Committee without cause; paragraph 12.2 and

  
	
   

  	
   

  	
  (iii)

  	
   

  	
  Upon Company being
  (or substantially all of its assets being) sold to or combined with
  another entity. Paragraph 12.4

  

 

10

 

12.1         For purposes of this Agreement, a
material breach by Company of the terms of this Agreement shall entitle
Executive, upon written notice to the Company, to terminate Executive’s
services under this Agreement effective thirty (30) days from and after receipt
of such notice by Company. Such notice shall include a specific description of
such breach and the Company shall have until the effective date of the notice
to cure or remedy such breach. Upon the cure or remedy of such breach, the
Executive shall rescind his notice of termination. For purposes of this
Agreement, a termination for good cause by Executive shall be based upon the
following action by the Company: failure, without good cause to continue to
vest Executive with the power and authority of Chairman of the Board and Chief
Executive Officer; the loss, without good cause or Executive’s consent, of any
significant duties or responsibilities attending such office. Upon the
occurrence of any happening which would authorize Executive to terminate his
employment for good cause, Executive shall notify the Company in writing within
sixty (60) days following such occurrence or Executive shall be deemed to have
waived his right to terminate this Agreement for such occurrence. The Company
shall have until the effective date of the notice to cure or remedy such good
cause occurrence. Upon the cure or remedy of such good cause occurrence, the
Executive shall rescind his notice of termination. Upon termination of
employment by Executive for material breach of good cause, Executive shall be
entitled to:

 

(i)                                     All Company insured and self insured
medical and dental plans in which Executive was participating immediately prior
to termination, provided, however, that if Company so elects, or such continued
participation is not possible under the general terms and conditions of such
plans or under such policies, Company shall, in lieu of the foregoing, arrange
to have issued for the benefit of Executive and Executive’s dependents
equivalent benefits (on an after-tax basis); provided, further that, in no
event shall Executive and Executive’s dependents be required to pay any
premiums or other charges in an amount greater than that which Executive would
have paid in order to participate in Company’s plans and policies. This
entitlement shall be maintained in effect for the continued benefit of Executive
and Executive’s dependents for a period of three (3) years after the date
of termination without cause or until the commencements of each equivalent
benefit from Executive’s new employer, but not to be provided longer than three
(3) years.

 

(ii)           The group individual life insurance
policies of Company then in effect for Executive; provided that if Company so
elects, or such continued participation is not possible under the general terms
and conditions of such plans or under such policies, Company shall, in lieu of
the foregoing, arrange to have issued for the benefit of Executive and
Executive’s dependents equivalent benefits (on an after-tax basis); provided,
further that, in no event shall Executive be required to pay any premiums or
other charges in an amount greater than that which Executive would have paid in
order to participate in Company’s plans and policies. This entitlement shall be
maintained in effect for the continued benefit of Executive and Executive’s
dependents for a period of three (3) years after the date of termination
without cause or until the commencements of each equivalent benefit from
Executive’s new employer, but not to be provided longer than three (3) years;

 

(iii)          A cash payment equal to the present
value (based on a discount rate equal to the then current 5 year treasure note
with a floor of 5% and a ceiling of 9%) of Executive’s Base Salary for Thirty
Six (36) months, payable within thirty (30) days of the date of such
termination;

 

(iv)          Any Earned Executive Bonus and other such
Bonuses and Compensation as provided for in Section 9 above, it being
understood, however, that payment for Earned Executive Bonus shall be paid, in
cash, within 30 days after receipt of the bonus year year-end income results,
and that all other payments due will be paid in cash within thirty (30) days of
the date of termination.  All stock
options granted by Company to Executive

 

11

 

under any provision of Section 9
or granted by Company to Executive prior to the date hereof shall accelerate
and become immediately exercisable;

 

(v)           A sum as reimbursement for reasonable
out-of-pocket expenses incurred for third-party professional financial and tax
advice provided by a licensed professional of Executive’s choice for a period
of three (3) years after date of termination, sum not to exceed, in any
one year, ten percent (10%) and in the aggregate, thirty (30) percent (30%) of
Executive’s Base Salary, as provided in Section 9;

 

(vi)          Reimbursement of up to $20,000.00 for
professional out-placement service expense incurred by Executive within the 12
months after the date of termination without cause.

 

(vii)         Company shall pay Executive a sum equal
to the Paola Country Club membership dues for one (1) year; and

 

(viii)        Company shall transfer to Executive
title of the personal car, furnished Executive by company, in use at the time
of the termination.

 

12.2         Company may purchase life insurance to
cover all or any part of its obligations contained in this section and Executive
agrees to take a physical examination to facilitate the placement of such
insurance.  In the event that Executive
is deemed uninsurable, Company may elect to disperse the funds due, where a
time is not specified herein, in twelve equal monthly payments.

 

12.3         Executive shall be entitled to
terminate this Agreement without cause upon ninety (90) days written notice to
Company.  If Executive shall so terminate
this Agreement, Executive shall be entitled to those benefits provided under
existing law.

 

12.4         If Company is (or substantially all of
its assets are) sold to or combined with another entity, Executive shall have
the exclusive right and option to approve any resulting salary, benefits,
employment contract, title, duties and/or responsibilities of Executive if the
entity offers Executive continuing employment with the entity. In the
alternative, Executive shall be entitled to terminate this Agreement for good
cause.  Incompliance with Internal
Revenue Code Section 409A and Treasury regulations issued there under, in
no event shall any payment provided for in Section 12.4 be made prior to
the expiration of six (6) months following the actual date of termination
(separation from service) of Executive. 
If Executive shall so terminate this Agreement, Executive shall be
entitled to:

 

(i)            All Company insured and self insured
medical and dental plan in which Executive was participating immediately prior
to termination, provided, however, that if Company so elects, or such continued
participation is not possible under the general terms and conditions of such
plans or under such policies, Company shall, in lieu of the foregoing, arrange
to have issued for the benefit of Executive and Executive’s dependents
equivalent benefits (on an after-tax basis); provided, further that, in no
event shall Executive and Executive’s dependents be required to pay any
premiums or other charges in an amount greater than that which Executive would
have paid in order to participate in Company’s plans and policies. This
entitlement shall be maintained in effect for the continued benefit of
Executive and Executive’s dependents for a period of three (3) years after
the date of termination without cause or until the commencements of each
equivalent benefit from Executive’s new employer, but not to be provided longer
than three (3) years;

 

(ii)           The group individual life insurance
policies of Company then in effect for Executive; provided that if Company so
elects, or such continued participation is not 

 

12

 

possible under the
general terms and conditions of such plans or under such policies, Company
shall, in lieu of the foregoing, arrange to have issued for the benefit of
Executive and Executive’s dependents equivalent benefits (on an after-tax
basis); provided, further that, in no event shall Executive be required to pay
any premiums or other charges in an amount greater than that which Executive
would have paid in order to participate in Company’s plans and policies. This
entitlement shall be maintained in effect for the continued benefit of
Executive and Executive’s dependents for a period of three (3) years after
the date of termination without cause or until the commencements of each
equivalent benefit from Executive’s new employer, but not to be provided longer
than three (3) years;

 

(iii)          A cash payment equal to the present
value (based on a discount rate equal to the then current 5 year treasure note
with a floor of 5% and a ceiling of 9%) of Executive’s Base Salary for thirty
six (36) months, payable within thirty (30) days of the date of such
termination;

 

(iv)          Any Earned Executive Bonus and other
such Bonuses and Compensation as provided for in Section 9 above, it being
understood, however, that payment for Earned Executive Bonus shall be paid, in
cash, within 30 days after receipt of the bonus year year-end income results,
and that all other payments due will be paid in cash within thirty (30) days of
the date of termination.  All stock
options granted by Company to Executive under any provision of Section 9
or granted by Company to Executive prior to the date hereof shall accelerate
and become immediately exercisable;

 

(v)           A Termination Bonus resulting from
termination due to change of control of 100% of the Executive’s Eligible Executive
Bonus, it being understood that this bonus will be paid in cash within thirty
(30) days of the date of termination.

 

(v)           A sum as reimbursement for reasonable
out-of-pocket expenses incurred for third-party

 

professional financial
and tax advice provided by a licensed professional of Executive’s choice for a
period of three (3) years after the date of termination, sum not to
exceed, in any one year, ten  percent (10) and
in the aggregate, thirty  percent (30%)
of Executive’s Base Salary, as provided in Section 9;

 

(vi)          Reimbursement of up to $20,000.00 for
professional out-placement service expense incurred by Executive within the 12
months after the date of termination without cause.

 

(vii)         Company shall pay Executive a sum equal
to the Paola Country Club membership dues for one (1) year;

 

(viii)        Company shall transfer to Executive
title of the personal car, furnished Executive by Company, in use at the time
of the termination.

 

13.          Consequences of Breach

 

13.0         If this Agreement is terminated
pursuant to Section 11.1 hereof, or if Company shall terminate Executive’s
employment under this Agreement in any other way that is a breach of this
Agreement by Company, the following shall apply:

 

(i)            The parties believe that because of
the limitations of Section 11 the payments to Executive do not constitute “Excess
Parachute Payments” under Section 280G of the Internal Revenue Code of
1954, as amended (the “Code”). 
Notwithstanding such belief, if any benefit under the preceding
paragraph is determined to be an “Excess Parachute 

 

 

13

 

Payment” Company shall
pay Executive an additional amount (“Tax Payment”) such that (x) the
excess of all Excess Parachute Payments (including payments under this
sentence) over the sum of excise tax thereon under Section 4999 of the
Code and income tax thereon under Subtitle A of the Code and under applicable
state law is equal to (y) the excess of all Excess Parachute Payments
(excluding payments under this sentence) over income tax thereon under Subtitle
A of the Code and under applicable state law.

 

14.          Tax “Gross-Up” Provision

 

14.0         If any payment due Executive under this
Agreement results in Executive’s liability for an excise tax (“parachute tax”)
under Section 49 of the Internal Revenue Code of 1986, as amended (the “Code”),
the Company will pay to Executive, after deducting any Federal, state or local
income tax imposed on the payment, an amount sufficient to fully satisfy the “parachute
tax” liability.  Such payment shall be made
to Executive no later than thirty (30) days prior to the due date of the “parachute
tax”.

 

15.          Mitigation and Offset

 

15.0         Executive shall not be required to
mitigate the amount of any payment provided for in this Agreement by seeking
employment or otherwise, nor to offset the amount of any payment provided for
in this Agreement by amounts earned as a result of Executive’s employment or
self-employment during the period he is entitled to such payment, unless
otherwise specified herein.

 

16.          Remedies

 

16.0         Company recognizes that because of
Executive’s special talents, stature and opportunities in the financial
services industry, in the event of termination by Company hereunder (except
under Section 11), or in the event of termination by Executive under Section 12,
before the end of the agreed term, Company acknowledges and agrees that the
provisions of this Agreement regarding further payments of Base Salary, bonuses
and the acceleration of stock options constitute fair and reasonable provisions
for the consequences of such termination, do not constitute a penalty, and such
payments and benefits shall not be limited or reduced  by amounts Executive might earn or be able to
earn from any other employment or ventures during the remainder of the agreed
term of this Agreement.

 

17.          Binding Agreement

 

17.0         This Agreement shall be binding upon
and inure to the benefit of Executive, his heirs, distributes and assigns and
Company, its successors and assigns. 
Executive may not, without the express written permission of the
Company, assign or pledge any rights or obligations hereunder to any person,
firm or corporation.

 

18.          Arbitration

 

18.0         Company and Executive agree that any
dispute or claim concerning this Agreement, or the terms and conditions of
employment under this Agreement shall be settled by arbitration.  The arbitration proceedings will be conducted
under the Commercial Arbitration Rules of the American Arbitration
Association in effect at the time a demand for arbitration under the Rules is
made.  The decision of the arbitrators,
including determination of the amount of any damages suffered, will be
exclusive, final and binding on Company and Executive, their heirs, executors,
administrators, successors and assigns. 
Each party will bear that party’s own expenses in the arbitration
proceedings for arbitrators’ fees and attorney fees, for that party’s
witnesses, and other expenses of presenting the case.  Other arbitration costs, including
administrative fees and fees for records or transcripts, will be borne equally
by Company and Executive.

 

14

 

19.          Amendment; Waiver

 

19.0         This instrument contains the entire
agreement of the parties with respect to the employment of Executive by Company
and supersedes any prior Agreement between Company and Executive, it being
understood, however, that this agreement shall not affect any stock options
granted to Executive prior to the date hereof. 
No amendment or modification of this Agreement shall be valid unless
evidenced by a written instrument executed by the parties hereto.  No waiver by either party of any breach by
the other party of any provision or condition of this Agreement shall be deemed
a waiver of any similar or dissimilar provision or condition at the same or any
prior or subsequent time.

 

20.          Governing Law

 

20.0         This Agreement shall be governed by and
construed in accordance with the laws of the State of Kansas.

 

21.          Notices

 

21.0         All notices which a party is required
or may desire to give to the other party under or in connection with this
Agreement shall be given in writing by addressing the same to the other party
as follows:

 

If to Executive, to:

 

Robert J. Weatherbie

2205 Lakeview Drive

Paola, Kansas 66071

 

If to Company, to:

 

Team Financial, Inc.

Chairman of Compensation
Committee

8 West Peoria

Paola, Kansas 66071

 

or at such other place as
may be designated in writing by like notice. 
Any notice shall be deemed to have been given within forty-eight (48)
hours after being addressed as required herein and deposited, first-class
postage prepaid, in the United States mail.

 

IN
WITNESS THEREOF,
the parties have executed this agreement this 15th day of April, 2008 effective
as of the day and year first above written.

 

	
   

  	
   

  	
   

  	
  TEAM FINANCIAL, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ Denis A. Kurtenbach

  
	
   

  	
   

  	
   

  	
  Denis A. Kurtenbach

  	
   

  
	
   

  	
   

  	
   

  	
  Chairman of
  Compensation Committee

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ Robert J. Weatherbie

  
	
   

  	
   

  	
   

  	
  ROBERT J. WEATHERBIE

  
	
   

  	
   

  	
   

  	
  Executive

  
								

 

 

15

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