Document:

Exhibit 10.10

 

THIS EXPENSE ADVANCEMENT
AGREEMENT (this “Agreement”), dated as of [_________], 2014, is made and entered into by and among Terrapin
3 Acquisition Corporation, a Delaware corporation (the “Company”), and Apple Orange LLC, MIHI LLC,
Noyac Path LLC and Periscope, LLC (collectively, the “Sponsors”).

 

RECITALS

 

WHEREAS, the
Company is engaged in an initial public offering (the “Offering”) pursuant to which the Company will
issue and deliver up to 21,275,000 units (the “Units”) (including up to 2,775,000 Units subject to an
over-allotment option granted to the underwriters of the Offering), with each Unit comprised of one share of Class A common stock,
par value $0.0001 per share (the “Common Stock”), of the Company and one warrant, each warrant exercisable
to purchase one-half of one share of Common Stock at $5.75 per half share ($11.50 per whole share), subject to certain adjustments
(each, a “Warrant,” and collectively, the “Warrants”);

 

WHEREAS, the
Company has filed with the Securities and Exchange Commission a registration statement on Form S-1, No. 333-196980 (the
“Registration Statement”) for the registration, under the Securities Act of 1933, as amended (the “Securities
Act”), of the Units, and the Warrants and Common Stock underlying the Units, including a prospectus (the “Prospectus”);

 

WHEREAS, the
gross proceeds of the Offering will be deposited in a trust account (the “Trust Account”) at J.P. Morgan
Chase Bank, N.A. and managed by Continental Stock Transfer & Trust Company, as trustee, as described in the Registration Statement
and the Prospectus; and

 

WHEREAS, the
Sponsors desire to enter into this Agreement in order to facilitate the Offering and the other transactions contemplated in the
Registration Statement and the Prospectus, including any merger, capital stock exchange, asset acquisition, stock purchase, reorganization
or other similar business combination by the Company with one or more businesses (a “Business Combination”).

 

NOW, THEREFORE,
in consideration of the representations, covenants and agreements contained herein, and certain other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as
follows:

 

1.           (a)         From
time to time, as may be requested by the Company, the Sponsors agree to advance to the Company up to $1,000,000 in the aggregate,
allocated in accordance with Schedule I hereto, in each instance pursuant to the terms of the form of promissory note attached
as Exhibit A hereto (the “Note”), as may be necessary to fund the Company’s expenses relating
to investigating and selecting a target business and other working capital requirements following the Offering and prior to any
potential Business Combination.

 

(b)          The
Sponsors represent to the Company that they are capable of making such advances, collectively, to satisfy their obligations under
clause (a) of this Section 1.

 

(c)          Notwithstanding
anything to the contrary herein or in the Note, Sponsors hereby waive any and all right, title, interest or claim of any kind ("Claim") in
or to any distribution of the Trust Account in which the proceeds of the Offering, as described in greater detail in the Registration
Statement and the Prospectus, will be deposited, and hereby agree not to seek recourse, reimbursement, payment or satisfaction
for any Claim against the Trust Account for any reason whatsoever; provided, however, that if the Company completes its Business
Combination, the Company shall repay such loaned amounts out of the proceeds released to the Company from the Trust Account.

 

    	 

    	 

    

 

2.           This
Agreement, together with the Note, constitutes the entire agreement and understanding of the parties hereto in respect of the subject
matter hereof and supersedes all prior understandings, agreements, or representations by or among the parties hereto, written or
oral, to the extent they relate in any way to the subject matter hereof or the transactions contemplated hereby. This Agreement
may not be changed, amended, modified or waived (other than to correct a typographical error) as to any particular provision, except
by a written instrument executed by the parties hereto.

 

3.           No
party may assign either this Agreement or any of his, her or its rights, interests, or obligations hereunder without the prior
written consent of the other party. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall
not operate to transfer or assign any interest or title to the purported assignee. This Agreement shall be binding on the undersigned
and each of his or its heirs, personal representatives, successors and assigns.

 

4.           Any
notice, statement or demand authorized by this Agreement shall be sufficiently given (i) when so delivered if by hand or overnight
delivery, (ii) the date and time shown on a telefacsimile transmission confirmation, or (iii) if sent by certified mail or private
courier service within five (5) days after deposit of such notice, postage prepaid. Such notice, statement or demand shall
be addressed as follows:

 

If to the Company:

 

Terrapin 3 Acquisition
Corporation

590 Madison Avenue

35th Floor

New York, NY 10022

Attn: Nathan Leight

Facsimile: (212) 710-4105 

 

with a copy in each case (which shall not constitute notice)
to:

 

Ellenoff Grossman &
Schole LLP

1345 Avenue of the
Americas

New York, New York
10105

Attn: Stuart Neuhauser,
Esq.

Facsimile: (212) 370-7889

 

If to the Sponsors:

 

[________________]

 

with a copy in each case (which shall not constitute notice)
to:

 

[________________]

 

5.          This
Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

6.          This
Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the
validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid
or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision
as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

 

    	 

    	 

    

 

7.          This
Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving
effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. The
parities hereto (i) agree that any action, proceeding, claim or dispute arising out of, or relating in any way to, this Agreement
shall be brought and enforced in the courts of New York, in the State of New York, and irrevocably submits to such jurisdiction
and venue, which jurisdiction and venue shall be exclusive and (ii) waives any objection to such exclusive jurisdiction and venue
or that such courts represent an inconvenient forum.

 

[Signature Page Follows]

 

    	 

    	 

    

 

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

 

	 	TERRAPIN 3 ACQUISITION

CORPORATION, a Delaware corporation
	 	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 
	 	 
	 	[SPONSORS]
	 	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 

 

    	 

    	 

    

 

Schedule I

 

Allocation

 

To be allocated 50% for each of MIHI LLC and, in the aggregate,
the Terrapin Sponsors, up to a total of $500,000 each.

 

Among the Terrapin Sponsors, the allocation is as follows:

 

Apple Orange LLC: 91.94%

 

Noyac Path LLC: 4.84%

 

Periscope, LLC: 3.22%

 

    	 

    	 

    

 

Exhibit A

 

Promissory Note

 

    	 

    	 

    

 

THIS PROMISSORY NOTE (“NOTE”)
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THIS NOTE HAS
BEEN ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF REGISTRATION OF THE RESALE THEREOF
UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED.  

 

PROMISSORY NOTE

 

	 	 Dated as of _____, 2014
	Principal Amount:  $____________ 	 
	 	New York, New York

  

Pursuant to that certain
Expense Advance Agreement (the “Agreement”), dated as of [_____], by and between Terrapin 3 Acquisition Corporation, a
Delaware corporation (the “Maker”), and [________] (the “Payee”), the Maker hereby promises
to pay to the order of the Payee or its registered assigns or successors in interest, or order, the principal sum of _________
Dollars ($_________) in lawful money of the United States of America, on the terms and conditions described below.  All
payments on this Note shall be made by check or wire transfer of immediately available funds or as otherwise determined by the
Maker to such account as the Payee may from time to time designate by written notice in accordance with the provisions of this
Note. Certain terms used herein but not defined herein shall have the meaning given to such terms in the Agreement.

 

1.            Principal. The
principal balance of this Note shall be payable on the date on which Maker consummates its Businesses Combination. The principal
balance may be prepaid at any time.

 

2.            Interest. No
interest shall accrue on the unpaid principal balance of this Note.

 

3.            Application
of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum
due under this Note, including (without limitation) reasonable attorney’s fees, then to the payment in full of any late charges
and finally to the reduction of the unpaid principal balance of this Note.

 

4.            Events
of Default. The following shall constitute an event of default (“Event of Default”):

 

(a)           Failure
to Make Required Payments. Failure by Maker to pay the principal amount due pursuant to this Note within five (5) business
days of the date specified above.

 

(b)           Voluntary
Bankruptcy, Etc. The commencement by Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization,
rehabilitation or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator (or other similar official) of Maker or for any substantial part of its property, or
the making by it of any assignment for the benefit of creditors, or the failure of Maker generally to pay its debts as such debts
become due, or the taking of corporate action by Maker in furtherance of any of the foregoing.

 

    	 

    	 

    

 

 (c)           Involuntary
Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker
in an involuntary case under any applicable bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering
the winding-up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period
of 60 consecutive days.

 

  5.            Remedies.

 

 (a)           Upon
the occurrence of an Event of Default specified in Section 4(a) hereof, Payee may, by written notice to Maker, declare this Note
to be due immediately and payable, whereupon the unpaid principal amount of this Note, and all other amounts payable thereunder,
shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby
expressly waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding.

 

(b)           Upon
the occurrence of an Event of Default specified in Sections 4(b) and 4(c), the unpaid principal balance of this Note, and all other
sums payable with regard to this Note, shall automatically and immediately become due and payable, in all cases without any action
on the part of Payee.

 

6.            Waivers. Maker
and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor, protest,
and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings instituted by Payee under
the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting any property,
real or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or sale under execution,
or providing for any stay of execution, exemption from civil process, or extension of time for payment; and Maker agrees that any
real estate that may be levied upon pursuant to a judgment obtained by virtue hereof, on any writ of execution issued hereon, may
be sold upon any such writ in whole or in part in any order desired by Payee.

 

7.            Unconditional
Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement
of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other
party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or
consented to by Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted
by Payee with respect to the payment or other provisions of this Note, and agrees that additional makers, endorsers, guarantors,
or sureties may become parties hereto without notice to Maker or affecting Maker’s liability hereunder.

 

8.            Notices. All
notices, statements or other documents which are required or contemplated by this Agreement shall be: (i) in writing and delivered
personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic transmission
to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address
or fax number as may be designated in writing by such party and (iii) by electronic mail, to the electronic mail address most recently
provided to such party or such other electronic mail address as may be designated in writing by such party.  Any notice
or other communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the
business day following receipt of written confirmation, if sent by facsimile or electronic transmission, one (1) business day after
delivery to an overnight courier service or five (5) days after mailing if sent by mail.

 

    	 

    	 

    

 

9.            Construction. THIS
NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF.

 

10.          Severability. Any
provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

11.          Trust
Waiver.  Notwithstanding anything herein to the contrary, the Payee hereby waives any Claim in or to any distribution
of or from the Trust Account, and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against
the Trust Account for any reason whatsoever; provided, however, that if the Maker completes its Business Combination, the Maker
shall repay the principal balance of this Note out of the proceeds released to the Maker from the Trust Account.

 

12.          Amendment;
Waiver.  Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent
of the Maker and the Payee.

 

13.          Assignment.  No
assignment or transfer of this Note or any rights or obligations hereunder may be made by any party hereto (by operation of law
or otherwise) without the prior written consent of the other party hereto and any attempted assignment without the required consent
shall be void; provided, however, that the foregoing shall not apply to an affiliate of the Payee who agrees to be bound
to the terms of this Note.

 

		14.	Conversion.

 

(a)         At
the Payee’s option, at any time prior to payment in full of the principal balance of this Note, the Payee may elect to convert
all or any portion of this Note into that number of warrants (the “Warrants”) equal to: (i) the portion of the
principal amount of the Note being converted pursuant to this Section 14, divided by (ii) $0.50, rounded up to the nearest whole
number. Each Warrant shall have the same terms and conditions as the warrants issued by the Maker pursuant to a private placement,
as described in Maker’s Registration Statement on Form S-1 (333-196980). The Warrants, the ordinary shares of Maker underlying
th Warrants and any other equity security of Maker issued or issuable with respect to the foregoing by way of a stock dividend
or stock split or in connection with a combination of shares, recapitalization, amalgamation, consolidation or reorganization (the
“Warrant Shares”), shall be entitled to the registration rights set forth in Section 15 hereof.

 

(b)         Upon
any complete or partial conversion of the principal amount of this Note, (i) such principal amount shall be so converted and such
converted portion of this Note shall become fully paid and satisfied, (ii) the Payee shall surrender and deliver this Note, duly
endorsed, to Maker or such other address which Maker shall designate against delivery of the Warrants, (iii) Maker shall promptly
deliver a new duly executed Note to the Payee in the principal amount that remains outstanding, if any, after any such conversion
and (iv) in exchange for all or any portion of the surrendered Note, Maker shall deliver to Payee the Warrants, which shall bear
such legends as are required, in the opinion of counsel to Maker or by any other agreement between Maker and the Payee and applicable
state and federal securities laws.

 

(c)         The
Payee shall pay any and all issue and other taxes that may be payable with respect to any issue or delivery of the Warrants upon
conversion of this Note pursuant hereto; provided, however, that the Payee shall not be obligated to pay any transfer taxes resulting
from any transfer requested by the Payee in connection with any such conversion.

 

    	 

    	 

    

 

(d)         The
Warrants shall not be issued upon conversion of this Note unless such issuance and such conversion comply with all applicable provisions
of law.

 

		15.	Registration Rights.

 

(a)         Reference
is made to that certain Registration Rights Agreement between the Maker and the parties thereto, dated as of the date hereof (the
“Registration Rights Agreement”). All capitalized terms used in this Section 15 shall have the same meanings
ascribed to them in the Registration Rights Agreement.

 

(b)         The
holders (“Holders”) of the Warrants (or the Warrant Shares) shall be entitled to one Demand Registration, which
shall be subject to the same provisions as set forth in Section 2.1 of the Registration Rights Agreement.

 

(c)         The
Holders shall also be entitled to include the Warrants (or the Warrant Shares) in Piggyback Registrations, which shall be subject
to the same provisions as set forth in Section 2.2 of the Registration Rights Agreement; provided, however, that in the event that
an underwriter advises the Maker that the Maximum Number of Securities has been exceeded with respect to a Piggyback Registration,
the Holders shall not have any priority for inclusion in such Piggyback Registration.

 

(d)         Except
as set forth above, the Holders and the Maker, as applicable, shall have all of the same rights, duties and obligations set forth
in the Registration Rights Agreement.

 

[Signature Page Follows]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, Maker, intending
to be legally bound hereby, has caused this Note to be duly executed by the undersigned as of the day and year first above written.

 

	 	Terrapin 3 Acquisition Corporation	 
	 	 	 	 
	 	By:	 	 
	 	 	Name: 	 
	 	 	 	 
	 	 	Title:Exhibit 10.1

 

AMENDMENT NO. 2 TO THE RUSSELL GOLDSMITH
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

This AMENDMENT NO. 2 TO THE RUSSELL GOLDSMITH AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Amendment”) is made and entered into as of July 14, 2014, by and among Russell Goldsmith (“Goldsmith”), City National Bank (“CNB”) and City National Corporation (the “Parent Corporation”).

 

WHEREAS, Goldsmith, CNB and the Parent Corporation are parties to an Amended and Restated Employment Agreement dated as of June 24, 2010 (as amended on March 14, 2012, the “Agreement”); and

 

WHEREAS, the parties desire to extend the term of the Agreement to July 15, 2017 and to amend certain terms of the Agreement.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are acknowledged by the parties, it is mutually agreed as follows:

 

1.                                      Term.  Paragraph 4 of the Agreement is hereby deleted in its entirety and replaced with the following:

 

“4.                              Term.  Subject to the provisions for termination as hereinafter provided, the term of this Agreement shall commence as of  July 16, 2010 (the “Start Date”) and shall terminate July 15, 2017, and may be extended as mutually agreed between Employer and Goldsmith.”

 

2.                                      Performance Awards.  Effective for awards granted following the date of this Amendment, Paragraph 7 of the Agreement is hereby deleted in its entirety and replaced with the following:

 

“7.                              Performance Awards.

 

(a)                               Annual Stock Awards.

 

(i)                                     In each fiscal year beginning in 2015 and continuing during the employment term, upon the earlier to occur of (i) the date the Employer generally grants annual stock awards to other corporate officers who are members of the Employer’s Executive Committee and Strategy and Planning Committee, and (ii) March 15, the Employer shall grant to Goldsmith an award of restricted stock units (an “Annual Stock Award”) under the Current Plan having a Fair Market Value (as defined in such Plan) on the grant date of $1,225,000 (the “Target Annual Stock Amount”), which shall be earned at 100% if the Parent Corporation’s net income goal, as established by the Committee, for the fiscal year in which the Annual Stock Award is granted (the “Performance Goal”) is achieved at 75% of target, scaled down to 75% of the Target Annual Stock Amount if the Performance Goal is achieved at 62.5% of target and 50% of the Target Annual Stock Amount if the Performance Goal is achieved at 50% of target.  The Annual Stock Award will be forfeited in its entirety if the Performance Goal is achieved at less than 50% of target.  The Target Annual Stock Amount may be increased at the discretion of the Committee, from time to time.

 

 

(b)                               Scorecard-Based Long-Term Cash Award.

 

(i)                                     In each fiscal year beginning in 2015 and continuing during the employment term, upon the earlier to occur of (i) the date the Employer generally grants annual stock awards to other corporate officers who are members of the Employer’s Executive Committee and Strategy and Planning Committee, and (ii) March 15, the Employer shall grant to Goldsmith a long-term cash incentive award (an “LTIP Award”) with a target payout of $1,325,000 (the “LTIP Target Amount”).  The LTIP Award will be divided into segments (each, an “LTIP Segment”) and each LTIP Segment will have a target payout of 25% of the LTIP Target Amount.  Each LTIP Segment shall have an earned payout of $579,687.50 if the Performance Goal for the year in which the LTIP Award is granted (the “Section 162(m) Goal”) is achieved at 75% of target; provided, that one of the four LTIP Metrics shall be assigned to each LTIP Segment and the earned payout, if any, for each LTIP Segment will be adjusted downward in accordance with the following matrix if the Company’s performance relative to that of Peer Banks for the three-year performance measurement period beginning on January 1 of the year of grant for the LTIP Metric assigned to such LTIP Segment is achieved at less than Maximum.  No payout shall be made in respect of any of the LTIP Segments if the Section 162(m) Goal for the LTIP Award is achieved at less than 75% of target.

 

	
LTIP Award Level
    	
Percentile Achieved
    	
Earned Payout per
   LTIP Segment
    
	
Maximum
    	
75th or above
    	
$579,687.50
    
	
Target
    	
50th
    	
$331,250
    
	
Threshold
    	
35th
    	
$165,625
    

 

The amount of the LTIP Segment that will be earned for performance between Threshold and Target and between Target and Maximum will be determined on a straight-line basis.

 

(ii)                                  “Peer Banks” means, for each three-year measurement period, the component companies ranked as the 11th through 50th of the largest banks in the SNL Bank Index (but excluding Employer) as measured by assets based on the most recently available public data as of the first day of the measurement period, or if the SNL Bank Index is no longer maintained or is no longer appropriate, in the reasonable judgment of the Committee, the Peer Banks shall instead be the companies included in any other reasonably comparable index prepared by a third party or the Committee of publicly-traded financial companies such that Employer falls between the 25th and 75th percentile in terms of size of market capitalization and/or assets.

 

(iii)                               The “LTIP Metrics” shall be (1) growth in cumulative actual diluted earnings per share, (2) return on tangible equity, (3) net charge-offs to total loans, and (4) nonperforming assets to total loans.  The definition of each LTIP Metric, and the percentile achieved for each LTIP Metric, shall be determined in the reasonable judgment of the Committee.  For the avoidance of doubt, the earned payout for the LTIP Award will be the sum of the earned payout for each LTIP Segment.

 

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(c)                                TSR-Based Long-Term Cash Award.

 

(i)                                     No later than July 31 of 2015 and of each subsequent fiscal year during the term of this Agreement (and for 2017, no later than July 15 unless this Agreement is extended), the Employer shall grant to Goldsmith a long-term cash incentive award (the “TSR Award”) with a target payout of $1,000,000.  The TSR Award will be earned based on the Parent Corporation’s performance relative to that of Peer Banks for a three-year performance measurement period beginning on July 1 of the year of grant as follows:

 

	
LTIP Award Level
    	
Percentile Achieved
    	
Earned Payout
    
	
Maximum
    	
90th or above
    	
$1,750,000
    
	
Superior
    	
75th
    	
$1,500,000
    
	
Target
    	
50th
    	
$1,000,000
    
	
Threshold
    	
25th
    	
$500,000
    

 

The amount of the TSR Award that will be earned for performance between Threshold and Target, between Target and Superior and between Superior and Maximum will be determined on a straight-line basis.  For the avoidance of doubt, nothing in this Amendment shall be deemed to supersede the Employer’s obligation to grant to Goldsmith a long-term incentive cash award in accordance with Section 7(b) of the Agreement as in effect prior to this Amendment no later than July 31, 2014.

 

(ii)                                  “Peer Banks” has the meaning provided in Section 7(b)(ii) above.  “TSR” shall be determined for a company, including the Parent Corporation and each of the Peer Banks, as follows:

 

(Price End – Price Begin) + Dividends

Price Begin

 

with “Price Begin” equal to the company’s closing price per share of common stock on its principal exchange or trading market on the first trading day in the three-year measurement period (adjusted to give effect to stock splits and stock dividends during the measurement period), “Price End” equal to the company’s closing price per share of common stock on its principal exchange or trading market on the final trading day in the three-year measurement period, and “Dividends” equal to the aggregate cash dividend per share of common stock paid during the three-year measurement period; provided that, in determining the Price Begin and Price End, the Committee may, in its sole discretion, use the average of the closing prices for a reasonable period of time ending on the first trading day and the final trading day, respectively, in the three-year measurement period.

 

(d)                               Vesting of Performance Awards.

 

(i)                                     The Annual Stock Award will (1) vest twenty-five (25%) each year, commencing on the second anniversary of the grant date; (2) be entitled to dividend equivalent units, (3) unless deferred by Goldsmith, be settled solely in cash as soon as reasonably practicable following vesting, but in no event later than thirty (30) days following the applicable vesting date,

 

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and (4) otherwise be issued on terms and conditions consistent with restricted stock unit awards then being issued by the Committee to other corporate officers who are members of the Employer’s Executive Committee and Strategy and Planning Committee.  The LTIP Award and the TSR Award will each vest 100% on the third anniversary of the grant date, and be paid in cash in a single lump sum as soon as reasonably practicable (and in no event later than sixty (60) days) following the date of such anniversary.

 

(ii)                                  In the event a Change in Control Event (as defined in the Current Plan) occurs prior to completion of the applicable performance measurement period (whether prior to or after Goldsmith’s termination of employment under circumstances in which Annual Stock Awards, LTIP Awards and TSR Awards (collectively, “Performance Awards”) remain outstanding), any Annual Stock Award for which the attainment of the Performance Goal has not yet been determined shall be deemed earned as of the date of the Change in Control Event in full at target, and Goldsmith’s LTIP Awards and TSR Awards shall be deemed earned as of the date of the Change in Control Event based on the greater of (A) target and (B) actual performance through the date of the Change in Control Event.  Except as otherwise provided in the following sentence, each such Performance Award shall vest and be paid on the originally scheduled dates as set forth in subparagraph 7(d)(i) or, in the event of Goldsmith’s termination of employment, as set forth in subparagraph 7(d)(iii).  Subject to subparagraph 10(h) (if applicable to any individual Performance Award), if Goldsmith remains employed on the date on which such Change in Control Event occurs, and his employment is subsequently terminated in circumstances that cause such Performance Awards to become vested pursuant to subparagraph 7(d)(iii), then each such Performance Award shall be paid upon, or as soon as reasonably practicable (and in no event later than thirty (30) days) following, the effective date of termination; provided, that if such Performance Award is nonqualified deferred compensation within the meaning of Section 409A of the Code, then this sentence shall only apply to such Performance Award if such Change in Control Event constitutes a “change in control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5) and the effective date of termination occurs within two (2) years following the date on which such Change in Control Event occurs.

 

(iii)                               Upon the termination of Goldsmith’s employment with Employer, all Performance Awards granted to Goldsmith that are not vested at the time of termination will, for no consideration, be forfeited to the Parent Corporation, except that the service obligation applicable to any Performance Awards will immediately lapse and such awards will vest immediately if Goldsmith’s employment is terminated pursuant to subparagraph 10(b) (without good cause), 10(c) (disability), 10(d) (death) or 10(f) (expiration) hereof or Sections 5(c) and 6(a) (Good Reason), or 6(a) (without Cause) of the Amended Employment Agreement after a Change of Control; provided that, with respect to a termination prior to a Change in Control Event, (A) in the case of LTIP Awards and TSR Awards that are not yet earned as of the effective date of termination, such awards will remain outstanding until, and be deemed earned based on actual achievement of the applicable performance goals through, the end of the applicable three-year performance measurement period, and (B) in the case of Annual Stock

 

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Awards that are not yet earned as of the effective date of termination, such awards will remain outstanding until, and be deemed earned based on actual achievement of the applicable Performance Goal through, the end of the applicable one-year performance measurement period.  Subject to subparagraph 10(h) (if applicable to any individual Performance Award), all Annual Stock Awards that become vested as of the effective date of termination pursuant to this subparagraph 7(d) shall (I) if the effective date of termination occurs on or after the first February 15 following the end of the one-year performance measurement period applicable to an Annual Stock Award, be settled solely in cash as soon as reasonably practicable (and in no event later than thirty (30) days following such date of termination), and (II) if the effective date of termination occurs prior to the first February 15 following the end of the one-year performance measurement period applicable to an Annual Stock Award, be settled solely in cash during the seventy-five (75) day period beginning on the first January 1 following the end of the one-year performance measurement period.  Each LTIP Award and TSR Award that becomes payable following the termination of Goldsmith’s employment shall be paid on the originally scheduled payment date as set forth in subparagraph 7(d)(i).

 

(e)                                Clawback.  Notwithstanding anything herein to the contrary, if a Performance Award is or was based on materially inaccurate financial statements (whether or not resulting in restatement) or any other materially inaccurate performance metric criteria, such Performance Award shall be subject to (1) forfeiture and recoupment from Goldsmith to the extent that calculation of the applicable performance goal(s) is determined to have erroneously increased the amount of the Performance Award or (2) increase to the extent that the applicable performance goal(s) is determined to have erroneously reduced the amount of the Performance Award.”

 

3.                                      Office Space and Secretarial Support.  Subparagraph 10(g) of the Agreement is hereby deleted in its entirety and replaced with the following:

 

“(g)                          Office Space and Secretarial Support.  From and after the expiration of the term of this Agreement or the Amended Employment Agreement or if Goldsmith’s employment is terminated other than pursuant to subparagraph 10(a) (or Section 5(a) of the Amended Employment Agreement if it is then in effect) for cause or other than pursuant to subparagraph 10(d) on account of his death, Employer shall provide Goldsmith (at no cost or expense to Goldsmith) for a period of five years with (i) an office at a location of Goldsmith’s choice, with a size comparable to, and the furnishing and appointments from, Goldsmith’s office as of the effective date of termination and (ii) exclusive personal secretarial support of one secretary, as selected by Goldsmith.”

 

4.                                      Bonus Compensation.  The following is hereby added as subparagraph 6(e) of the Agreement:

 

“(e)                            Notwithstanding anything in subparagraph 6(c) or 10(b) hereof to the contrary, for any fiscal year in which Goldsmith was not employed by Employer for the entire year, the amount of the Annual Bonus payable to Goldsmith for the portion of the year prior to the effective date of termination

 

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will be determined by reference to the actual achievement of the applicable plan goals through the end of the fiscal year as determined by the Committee consistent with past practice and on a basis no less favorable than as applied to similarly-situated executives and shall be in addition to any other severance payments which Goldsmith is entitled to receive for the period after the effective date of termination.  For the avoidance of doubt, there will be no duplication of payments for the same portion of any fiscal year with respect to the Annual Bonus for any fiscal year.”

 

5.                                      Section 409A.  The following is hereby added as the last sentence of Paragraph 24 of the Agreement:

 

“In connection with any Change in Control Event that constitutes a “change in control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5), Employer may terminate the Agreement with respect to the then-outstanding Performance Awards granted after July 14, 2014 that constitute nonqualified deferred compensation within the meaning of Section 409A of the Code as of the date on which such Change in Control Event occurs, if any, and cause such Performance Awards to be paid based on the levels of achievement required under the first sentence of Paragraph 7(d)(ii) within thirty (30) days following the date on which such Change in Control Event occurs in accordance with, and solely to the extent permitted by, Treasury Regulation Section 1.409A-3(j)(4)(ix)(B).”

 

6.                                      The terms of this Amendment shall control notwithstanding any provision in the Agreement to the contrary, and the terms of the Agreement shall be construed and interpreted consistent with the terms of this Amendment.  The terms of this Amendment shall not modify or amend any requirements or terms under the Agreement with respect to vesting or acceleration of any existing equity awards previously granted to Goldsmith.

 

7.                                      Capitalized terms not otherwise defined herein shall have the same meaning as in the Agreement.

 

8.                                      This Amendment may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

 

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IN WITNESS WHEREOF, the parties hereby execute this Amendment as of the day and year first above written.

 

 

	
 
    	
CITY   NATIONAL BANK
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael   B. Cahill
    
	
 
    	
Name:
    	
Michael   B. Cahill
    
	
 
    	
Title:
    	
Executive   Vice President, General Counsel and Corporate Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CITY   NATIONAL CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael   B. Cahill
    
	
 
    	
Name:
    	
Michael   B. Cahill
    
	
 
    	
Title:
    	
Executive   Vice President and General Counsel and Corporate Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
RUSSELL   GOLDSMITH
    
	
 
    	
 
    
	
 
    	
/s/   Russell Goldsmith
    

 

7

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