Document:

Exhibit 10.58

 

STEEL DYNAMICS, INC.

 

Stock Appreciation Rights Award Agreement

 

This Stock Appreciation Rights Award Agreement (the “Award Agreement”) is made and entered into on this         day of                 , 201   , by and between STEEL DYNAMICS, INC., an Indiana corporation (the “Company”) and                                                    (“You” or the “Participant”), reflecting an Award granted by the Company’s Compensation Committee on the date set forth below, pursuant to the provisions of Section 7.5 of the Steel Dynamics, Inc. 2015 Equity Incentive Plan (the “Plan”).  Capitalized terms used but not defined herein will have the meaning ascribed to them in the Plan.

 

Summary of Pertinent Terms

 

Grant Date:                                                       , 201    .

Number of SARs:                                                  (        )

Nature of Grant:  Free Standing Stock Appreciation Right

Exercise Price per SAR:                                             (         )

Expiration Date: Ten (10) years from Grant Date, or                      , 201     )

Vesting Terms: One-third (1/3) vests after 12 months, and monthly vesting of 1/24 of balance over following twenty-four (24) months.

 

1.                            Grant of SARs.

 

1.1                               Grant. The Company hereby grants You to an aggregate of                                                                         (        ) stock appreciation rights (the “SARs”), each of which will entitle You to receive, upon exercise, an amount, in cash, equal to the excess of (a) the Fair Market Value of a share of Common Stock on the Exercise Date, over (b) the Exercise Price (the “Appreciation Value”).

 

1.2                               Exercise Price. The Exercise Price set forth above has been determined by the Committee at not less than One Hundred Percent (100%) of the Fair Market Value of one (1) share of Common Stock on the SAR Grant Date, determined by the NASDAQ closing price of the Company’s common stock on the business day preceding the Grant Date.

 

2.                            Vesting.

 

2.1                               Vesting Schedule. The SARs will vest and become exercisable as follows: 1/3 (or 12/36) will vest twelve months following the Grant Date, and, thereafter, 1/24 of the remaining SARs will vest monthly in equal installments , for the next twenty-four (24) months. Any unvested SARs will not be exercisable on or after Your termination of Continuous Service.

 

 

2.2                               Expiration. The SARs will expire on the Expiration Date set forth above, or earlier if so provided in this Award Agreement or in the Plan.

 

3.                            Termination of Continuous Service.

 

3.1                               Termination for Reasons Other Than Cause, Death or Disability. If Your Continuous Service is terminated for any reason other than Cause, death or Disability, You may exercise any vested SARs, but only within such period of time ending on the earlier of (a) ninety (90) following termination of Continuous Service, or (b) the Expiration Date.  In the event of retirement, unvested SARs will immediately vest if You have attained age 65 or if you are between 55 and 65, so long as Your number of years employed exceeds 10 plus the number of years below age 65 at Your retirement.

 

3.2                               Termination for Cause. If Your Continuous Service is terminated for Cause, the SARs (whether vested or unvested) shall immediately terminate and cease to be exercisable.

 

3.3                               Termination Due to Disability. If Your Continuous Service terminates as a result of Your Disability, You may exercise any vested SARs, but only within such period of time ending on the earlier of (a) one hundred eighty (180) days following Your termination of Continuous Service, or (b) the Expiration Date.

 

3.4                               Termination Due to Death. If Your Continuous Service terminates as a result of Your death, any vested SARs may be exercised by Your estate, by a person who acquired the right to exercise the SARs by bequest or inheritance, or by the person designated to exercise the SARs upon Your death, but only within the time period ending on the earlier of (a) one hundred eighty (180) days following either (i) Your termination of Continuous Service, or (ii) the date of death, if death occurs within ninety (90) days following Your termination of Continuous Service, or (b) the Expiration Date.

 

4.                            Manner of Exercise.

 

4.1                               When to Exercise. Except as otherwise provided in the Plan or in this Award Agreement, You (or in case of exercise after Your death or Disability, Your executor, administrator, heir or legatee, as the case may be) may exercise Your vested SARs, in whole or in part, at any time after vesting and until the Expiration Date (or earlier termination pursuant to Section 3), by following the procedures set forth in this Section 4. If partially exercised, You may exercise the remaining unexercised portion of the SARs at any time after vesting and until the Expiration Date (or earlier termination pursuant to Section 3). No SARs shall be exercisable after the Expiration Date.

 

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4.2                               Election to Exercise. To exercise the SARs, You (or in the case of exercise after Your death or Disability, Your executor, administrator, heir or legatee, as the case may be) must deliver to the Company a written notice (the “Exercise Notice”), either by hand-delivery, by email to SARsExercise@steeldynamics.com, or by overnight courier addressed as prescribed in Section 12, in any case effective only upon receipt. The Exercise Notice shall set forth the number of SARs being exercised, together with any additional documents the Company may require.  No SAR may be purchased, terminated or otherwise reacquired by the Company, in exchange for cash, so long as the Fair Market Value of a share of Common Stock exceeds the SAR Exercise Price.

 

4.3                               Documentation of Right to Exercise. If someone other than You exercises the SARs, then such person must submit documentation reasonably acceptable to the Company verifying that such person has the legal right to exercise the SARs.

 

4.4                               Exercise Date. The SAR shall be deemed to be exercised on the business day that the Company receives a fully executed exercise notice, which shall thereupon establish the Fair Market Value of the SAR as determined by the NASDAQ closing price of the Company’s common stock on the business day preceding the Exercise Date. If the notice is received after business hours on such date, then the SAR shall be deemed to be exercised on the business date immediately following the business date such notice is received by the Company.

 

5.                            Withholding. Prior to the payment of the Appreciation Value in connection with the exercise of any SAR, the Company shall make such applicable federal, state and local tax withholdings as may be required from time to time.  Notwithstanding the foregoing, however, the ultimate liability for the payment of all tax withholding obligations is and remains Your responsibility.

 

6.                            Form of Payment. Upon the valid exercise of all or any portion of the SARs, the Company shall pay to You, an amount, payable in cash, equal to the product of the Appreciation Value of the exercised SAR, on the Exercise Date, multiplied by the number of exercised SARs, less any amounts withheld pursuant to Section 5.

 

7.                            Section 409A; No Deferral of Compensation. Neither the Plan nor this Award Agreement is intended to provide for the deferral of compensation within the meaning of Section 409A of the Internal Revenue Code (the “Code”). The Company reserves the right to unilaterally amend or modify the Plan or this Award Agreement, however, to the extent the Company considers it necessary or advisable, in its sole discretion, to comply with, or to ensure that the SARs granted hereunder are not subject to, Section 409A of the Code.

 

8.                            No Right to Continued Employment. Neither the Plan nor this Award Agreement is intended to confer upon You any right to be retained in any position in connection with which Your Award was granted. Further, nothing in the Plan or this Award Agreement shall be construed to limit the discretion of the Company to terminate Your Continuous Service at any time, with or without Cause.

 

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9.                            Transferability. The SARs are not transferable by You, otherwise than: (i) following Your death, (x) by will or by the applicable laws of descent and distribution, or (y) if You have previously delivered written notice to the Company, in a form satisfactory to the Company, designating a third party who, in the event of Your death, shall thereafter be entitled to exercise the SAR, if otherwise exercisable; or (ii) pursuant to the provisions of a Qualified Domestic Relations Order. No assignment or transfer of a SAR, or the rights represented thereby, whether voluntary or involuntary, by operation of law or otherwise (except as set forth above) will be effective to vest in the assignee or transferee any interest or right therein. You have no right or authority to pledge, encumber or hypothecate Your interest in any SAR in favor of any party other than the Company, nor shall You be entitled to subject Your interest in any SAR to any lien, obligation or liability in favor of any other person other than the Company or an Affiliate.

 

10.                     Change in Control.

 

10.1                        Effect on SARs. In the event of a Change in Control, the SARs evidenced hereby shall become immediately vested and exercisable. notwithstanding anything in the Plan or in this Agreement to the contrary.

 

10.2                        Cash-out. In the event of a Change in Control, the Committee may, in the exercise of its discretion and upon at least ten (10) days advance notice to You, cancel the SARs and, instead, pay to You the Appreciation Value of the SARs based upon the price per share of Common Stock received or to be received by other shareholders of the Company in connection with the Change in Control event. If at the time of the Change in Control event the Exercise Price of the SAR equals or exceeds the price paid or to be paid for a share of Common Stock in connection with the Change in Control, the Committee may cancel the SAR without the payment of consideration therefor.

 

11.                     Adjustments. Following the Grant Date, in the event of a stock dividend (but only on Common Stock), stock split, reverse stock split, recapitalization , reorganization, merger, consolidation, combination, exchange, separation or other change in the Company’s capital structure, the Exercise Price of the SARs, the Number of SARs, and the number of shares of Common Stock subject to each SAR shall be equitably adjusted as to number, price or kind of share of Common Stock, or other consideration subject to this Award, to the extent necessary in order to preserve the economic intent of this Award; provided, however, that any adjustments made under this Section 11 shall be made in a manner which does not adversely affect the short-swing profits exemption provided pursuant to SEC Rule 16b-3.

 

12.                     Notices. Any notice required to be delivered to the Company under this Award Agreement shall be in writing, hand-delivered, sent by email, or dispatched by overnight courier, effective upon delivery, to: SDI Corporate Payroll Manager, SARs Exercise, 7575 West Jefferson Blvd., Fort Wayne, IN 46804, email SARsExercise@steeldynamics.com. Any notice required to be delivered to You under this Agreement shall be in writing, hand-delivered, sent by email or sent by overnight courier, effective upon delivery, to You at Your address as shown in the records of the Company.

 

13.                     Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the State of Indiana, without regard to conflict of law principles.

 

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14.                     Interpretation. Any dispute regarding the interpretation of this Award Agreement shall be submitted by You or the Company to the Committee for review. The resolution of such dispute by the Committee shall be final and binding on You and the Company.

 

15.                     SARs Subject to Plan. This Agreement is subject to the Plan. The terms and provisions of the Plan, as it may be amended from time to time by the Committee are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein, unless otherwise specifically provided, and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern.

 

16.                     Successors and Assigns. The Company may assign any of its rights under this Award Agreement. This Award Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Award Agreement will be binding upon You and Your beneficiaries, executors, administrators and the person(s) to whom the SARs may be transferred by will or the laws of descent or distribution.

 

17.                     Severability. The invalidity or unenforceability of any provision of the Plan or this Award Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Award Agreement, and each provision of the Plan and this Award Agreement shall be severable and enforceable to the extent permitted by law.

 

18.                     Acceptance. You hereby acknowledge that You have read and understand the Plan and that You accept these SARs, subject to all of the terms and conditions of the Plan and this Award Agreement. You acknowledge that any questions You may have regarding the tax consequences upon exercise of the SARs should be discussed with a tax advisor prior to such exercise.

 

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

 

	
 
    	
STEEL   DYNAMICS, INC.
    
	
 
    	
By:
    	
 
    
	
 
    	
Printed   Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Participant’s   Signature:
    
	
 
    	
Printed   Name:
    	
 
    	
:
    
							

 

5Exhibit 10.1

 

AMENDMENT

OF THE

EXECUTIVE EMPLOYMENT AGREEMENT

 

This AMENDMENT of the Executive Employment Agreement (this “Amendment “) by and between Cardinal Financial Corporation, a Virginia corporation (“Cardinal”), and Christopher W. Bergstrom (“you” and all similar references), collectively the “parties”, is entered into and is effective as of March 30, 2016.

 

WHEREAS, you and Cardinal are parties to an Executive Employment Agreement dated as of February 12, 2002 (as amended on or before the date of this Amendment, including amendments on December 23, 2008, on August 12, 2011, and on March 13, 2012, the “Employment Agreement”), and

 

WHEREAS, you and Cardinal desire to amend the Employment Agreement by this Amendment.

 

NOW, THEREFORE, in consideration of the promises and obligations of Cardinal and you and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows.

 

1.             The first sentence of Section 1 of the Employment Agreement is replaced with the following sentence:

 

“By accepting employment as President and Chief Executive Officer of Cardinal and its subsidiary Cardinal Bank, you agree:”

 

2.             The first sentence of Section 2(a) of the Employment Agreement is replaced with the following:

 

Cardinal agrees to pay you salary at the annual rate of four hundred fifty thousand dollars ($450,000), less required and authorized withholding and deductions, payable in installments in accordance with normal payroll practices.

 

3.             The first sentence of Section 4(b)(ii) of the Employment Agreement is replaced with the following:

 

“If Cardinal terminates you pursuant to Section 4(b) within twelve (12) months after the Effective Date of a Change in Control, Cardinal shall pay you, exclusively and in lieu of the benefits which otherwise would have been payable under this Agreement, in a single lump sum cash in an amount equal to 2.99 times your average compensation (as defined in this paragraph, including without limitation annual salary, bonuses, stock-based equity grants, directors’ fees and retainers) over the most recent five calendar year period of your employment with Cardinal prior to termination, less required and authorized withholdings and deductions, exclusively and in lieu of the benefits which otherwise would have been payable under this Agreement.”

 

4.             Section 4(c) of the Employment Agreement is replaced with the following:

 

You may Voluntarily Terminate your employment with Cardinal upon thirty (30) days’ prior written notice directed to Cardinal

 

5.             The first sentence of Section 5(a) of the Employment Agreement is replaced.  As revised, the first sentence is as follows:

 

“If you are entitled to benefits pursuant to this Section 5, then, on the 30th day after your termination of employment, Cardinal shall pay you an amount equal to 2.99 times your average compensation (as defined in this paragraph, including without limitation annual salary, bonuses, stock-based equity grants, directors’ fees and retainers) over the most recent five calendar year period of your employment with Cardinal prior to termination, less required and authorized withholdings and deductions, exclusively and in lieu of the benefits which otherwise would have been payable under this Agreement.”

 

6.             Clause ii of Section 5(d) of the Employment Agreement is replaced with the following:

 

 

“ii.                                 If you directly report to a corporate officer or employee instead of reporting directly to the Executive Chairman of the Board of Directors of Cardinal (or successor) or in the absence of an Executive Chairman to the Chairman of the Board of Directors of Cardinal (or successor);”

 

7.             The second sentence of Section 9 of the Employment Agreement is replaced with the following:

 

No waiver of any provision of this Agreement shall be valid unless in writing and signed by the person or party to be charged.

 

8.             Section 10 of the Employment Agreement is replaced with the following:

 

Any notice expressly provided for under this Agreement shall be in writing, shall be given either manually or by mail and shall be deemed sufficiently given when actually received by the party to be notified or when mailed, if mailed by certified or registered mail, postage prepaid, addressed to such party at their addresses as set forth below.  All notices shall be sent to Cardinal at its primary office location and to you at your address on Cardinal’s records.  Either party may, by notice to the other party, given in the manner provided for herein, change their address for receiving such notices.

 

9.             The second sentence of Section 11 of the Employment Agreement is replaced with the following:

 

This Agreement may not be amended except by an instrument in writing signed by or on behalf of each of the parties hereto.

 

10.          New Section 15 is added to the Employment Agreement:

 

15.                         Payment of Legal Fees.  Cardinal is aware that after a Change in Control management could cause or attempt to cause Cardinal to refuse to comply with its obligations under this Agreement, or could institute or cause or attempt to cause Cardinal to institute litigation seeking to have this Agreement declared unenforceable, or could take or attempt to take other action to deny you the benefits intended under this Agreement.  In these circumstances the purpose of this Agreement would be frustrated.  Accordingly, Cardinal intends that you not be required to incur expenses associated with enforcement of rights under this Agreement, whether by litigation or other legal action, because the cost and expense thereof would substantially detract from the benefits granted to you hereunder.  Cardinal intends that you not be forced to negotiate settlement of rights under this Agreement under threat of incurring expenses.  If after a Change in Control it appears to you that (x) Cardinal is failing to comply with any of its obligations under this Agreement or (y) Cardinal or any other person is taking any action to declare this Agreement void or unenforceable, or instituting any litigation or other legal action designed to deny, diminish, or to recover from you benefits intended to be provided to you hereunder, Cardinal hereby irrevocably authorizes you to retain counsel of your choice, at Cardinal’s expense as provided in this Section 15, to represent you in the initiation or defense of any litigation or other legal action, whether by or against Cardinal or any director, officer, stockholder, or other person affiliated with Cardinal, in any jurisdiction.  Despite any existing or previous attorney-client relationship between Cardinal and any counsel chosen by you under this Section 15, Cardinal hereby irrevocably consents to you entering into an attorney-client relationship with that counsel, and Cardinal and you agree that a confidential relationship exists between you and that counsel.  The fees and expenses of counsel selected by you will be paid or reimbursed to you by Cardinal on a regular, periodic basis upon presentation by you of a statement or statements prepared by counsel in accordance with counsel’s customary practices, regardless of whether suit is brought and regardless of whether incurred in trial, bankruptcy, or appellate proceedings , but Cardinal’s payment or reimbursement of your counsel’s fees and expenses must occur on or before the last day of your tax year immediately after your tax year in which the expense is incurred.  If you are a “specified employee” for purposes of Internal Revenue Code section 409A on the date of termination, payment under this Section 15 will not be made before the first day of the seventh month after the month in which your termination occurs, and interest on the delayed payment will accrue through the date of payment at the Prime Rate of Interest in effect on the date of termination and as reported

 

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in the Wall Street Journal.  The six-month delay applies if and only if an exemption from the six-month delay requirement of Internal Revenue Code section 409A is not available.  Your right to payment or reimbursement under this Section 15 is not subject to liquidation or exchange for another benefit.  Cardinal’s obligation to make reimbursement payments will not apply later than your remaining lifetime (or, if longer, through the 20th anniversary of the effective date of this Agreement).  The legal fee reimbursements are intended to satisfy the requirements for “reimbursement or in-kind benefit plans” described in Treasury Regulation section 1.409A-3(i)(1)(iv)(A) and will be administered to satisfy those requirements.  Cardinal’s obligation to pay your legal fees under this Section 15 operates separately from and in addition to any legal fee reimbursement obligation Cardinal may have with you under any separate severance, salary continuation, indemnification, or other agreement.  Despite anything in this Section 15 to the contrary however, Cardinal is not required to pay or reimburse your legal expenses if doing so would violate section 18(k) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)] and Rule 359.3 of the Federal Deposit Insurance Corporation [12 C.F.R. 359.3].

 

11.          New Section 16 is added to the Employment Agreement:

 

16.                               Clarifications and Establishment of a Rabbi Trust.  (a)  You and Cardinal agree that if you die before the severance payment to which you may become entitled under Section 4(b)(ii) or Section 5(a) is made, the severance payment will be made to your beneficiary.  You and Cardinal agree that the severance payment under Section 4(b)(ii) or Section 5 is the exclusive severance benefit available to you as the result of termination without Cause by Cardinal after a Change in Control and the exclusive severance benefit available to you as the result of termination by you within one year after a Change in Control, and is in lieu of, and not in addition to, any severance payment or other similar compensation payable under any other provision of this Agreement.

 

(b)           You and Cardinal agree that if you become entitled to the severance payment of Section 4(b)(ii) or Section 5(a), Cardinal will deposit with an independent bank to act as trustee cash in an amount sufficient to make payment to you of the severance payment under Section 4(b)(ii) or Section 5.  Selected by you or Cardinal, the bank must be independent of Cardinal and of the acquiring company in the Change in Control.  Cardinal will enter into the trust arrangement and make the deposit on or before the date on which both of the following conditions to completion of the Change in Control are satisfied: (1) receipt of all necessary federal and state bank regulatory approvals and (2) receipt of approval of Cardinal’s stockholders.  Until payment is made to you, the independent bank trustee will hold and manage trust assets in accordance with a Rabbi Trust Agreement in substantially the form attached to this Agreement.

 

12.          The parties acknowledge that Section 13 is reserved because there is no Section 13 as of this date.

 

13.          Except as amended by this Amendment, the terms of the Employment Agreement remain in effect.

 

 

	
 
    	
 
    	
CARDINAL   FINANCIAL CORPORATION
    
	
 
    	
 
    	
 
    
	
/s/ Christopher W. Bergstrom
    	
 
    	
By
    	
/s/William G. Buck
    
	
Christopher W. Bergstrom
    	
 
    	
 
    	
William G. Buck
    
	
 
    	
 
    	
 
    	
Chairman, Compensation Committee
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/Bernard H. Clineburg
    
	
 
    	
 
    	
 
    	
Bernard H. Clineburg
    
	
 
    	
 
    	
 
    	
Executive Chairman
    

 

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