Document:

grub-ex101_281.htm

Exhibit 10.1

AMENDMENT NO. 1

This AMENDMENT NO. 1 (this “Amendment”), dated as of May 8, 2020, by and among GRUBHUB HOLDINGS INC., a corporation organized and existing under the laws of the State of Delaware (the “Borrower”); GRUBHUB INC., a corporation organized and existing under the laws of the State of Delaware (the “Parent”); CITIBANK, N.A., as Administrative Agent (the “Administrative Agent”), and the lenders party hereto (collectively, the “Consenting Lenders”), is entered into in connection with the Amended and Restated Credit Agreement, dated as of February 6, 2019 (as amended, amended and restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”), among the Borrower, the Parent, the Lenders party thereto, and the Administrative Agent.

The Borrower, the Parent, the Administrative Agent and the Lenders party have agreed to certain amendments to the Credit Agreement. 

Now, therefore, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

Section 1Definitions.  Except as otherwise defined in this Amendment, terms defined in the Credit Agreement are used herein as defined therein. 

Section 2Amendments to Credit Agreement.  The following amendments to the Credit Agreement shall take effect on the date hereof:

(a)References Generally.  References in the Credit Agreement (including references to the Credit Agreement as amended hereby) to “this Agreement” (and indirect references such as “hereunder”, “hereby”, “herein” and “hereof”), and references in the other Loan Documents to the “Credit Agreement” shall be deemed to be references to the Credit Agreement as amended hereby. 

(b)Definitions.  Section 1.1 of the Credit Agreement shall be amended by amending the following definitions and replacing them in their entirety with the definitions set forth herein (to the extent already included in Section 1.1), or, as applicable, adding the following definitions in the appropriate alphabetical order (to the extent not already included in Section 1.1):

“Adjusted Eurodollar Rate” means, for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum obtained by dividing (rounded upwards to the next nearest 1/100 of 1%) (a) the rate per annum equal to the rate determined by the Administrative Agent to be the rate per annum (rounded upward to the nearest 1/100 of 1%) appearing on Reuters LIBOR01 Page (or any successor page) as the London interbank offered Rate for deposits (for delivery on the first day of such Interest Period) with a term equivalent to such period in Dollars, determined as of approximately 11:00 a.m. (London, England time) two (2) Business Days prior to the first day of such Interest Period, by (b) an amount equal to (i) one minus (ii) the Eurodollar Reserve Requirement; provided that, if the Adjusted Eurodollar Rate shall be less than 0.75%, such rate shall be deemed to be 0.75% for the purposes of this Agreement.

“Alternate Base Rate” means, for any day, a rate per annum equal to the highest of:

 

(a) the rate of interest in effect for such day as announced publicly by Citibank as its prime rate for loans denominated in Dollars;

(b) the Federal Funds Rate in effect on such day plus 1/2 of 1.00%; and

(c) the Adjusted Eurodollar Rate for a one month Interest Period on such day plus 2.00%;

provided, that if the Alternate Base Rate is less than 1.75%, such rate shall be deemed to be 1.75% for purposes of this Agreement. Any change in the Alternate Base Rate due to a change in Citibank’s prime rate, the Federal Funds Rate or the Adjusted Eurodollar Rate shall be effective from and including the effective date of such change in Citibank’s prime rate, the Federal Funds Rate or the Adjusted Eurodollar Rate, respectively and without the necessity of notice being provided to the Borrower or any other Person.

“Amendment No. 1 Adjustment Period” means the period beginning with the Fiscal Quarter of the Parent ended June 30, 2020 and ending on (and including) the last day of the Fiscal Quarter of the Parent ended March 31, 2021.

“Amendment No. 1 Effective Date” means May 8, 2020.

“BHC Act Affiliate” means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12. U.S.C. 1841(k)) of a party.

“Consolidated EBITDA” means, for any period, the sum, without duplication, for such period, of Consolidated Net Income during such period; 

	
 
	
(a)
	
plus the following to the extent deducted in calculating Consolidated Net Income:

	
 
	
(i)
	
Consolidated Interest Expense during such period, plus amounts excluded from Consolidated Interest Expense as set forth in clauses (1) through (5) of the definition thereof;

	
 
	
(ii)
	
the provision for all income, franchise and similar taxes (whether paid or deferred) of the Parent and its Subsidiaries;

	
 
	
(iii)
	
the amortization, accretion and depreciation of expense of the Parent and its Subsidiaries during such period;

	
 
	
(iv)
	
reasonable fees, expenses and charges related to (A) the Loans and the Loan Documents, (B) other Indebtedness permitted to be incurred by the Borrower or any other Loan Party under this Agreement, and (C) mergers, acquisitions, restructurings and dispositions permitted by this Agreement; provided, that the aggregate amount added back in reliance on this clause (iv) for the Rolling Period ending as of the last day of the most recently ended Fiscal Quarter shall not exceed (1) 10% of Consolidated EBITDA for the Rolling Period ending as of the last day of the most recently ended Fiscal Quarter after giving effect to any such add-backs or (2) together with amounts added back under clauses (v), (vi) and (x), 25% of Consolidated EBITDA for the Rolling Period ending as of 

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the last day of the most recently ended Fiscal Quarter after giving effect to any such add-backs; 

	
 
	
(v)
	
one-time restructuring and integration expenses (which for the avoidance of doubt, shall include, but not be limited to, retention, severance, systems establishment costs, contract termination costs, including future lease commitments, and costs to consolidate any facilities and relocate employees) incurred by the Parent and its Subsidiaries in connection with, and directly related to, any Permitted Acquisition, only to the extent that such restructuring and integration expenses are incurred within twelve (12) months following the consummation of such Permitted Acquisition; provided, that the aggregate amount added back in reliance on this clause (v) for the Rolling Period ending as of the last day of the most recently ended Fiscal Quarter shall not exceed (1) 10% of Consolidated EBITDA for the Rolling Period ending as of the last day of the most recently ended Fiscal Quarter after giving effect to any such add-backs or (2) together with amounts added back under clauses (iv), (vi) and (x), 25% of Consolidated EBITDA for the Rolling Period ending as of the last day of the most recently ended Fiscal Quarter after giving effect to any such addbacks; 

	
 
	
(vi)
	
non-recurring costs, extraordinary expenses and other pro forma adjustments (including anticipated savings and other synergies) attributable to Permitted Acquisitions that have been consummated during such period to the extent that such costs, expenses or adjustments (A) are reasonably expected to be realized within twelve (12) months of such Permitted Acquisition as set forth in reasonable detail on a certificate of a Financial Officer of the Borrower delivered to the Administrative Agent and (B) are calculated on a basis consistent with GAAP and are, in each case, reasonably identifiable, factually supportable, and expected to have a continuing impact on the operations of the Parent and its Subsidiaries; provided, that the aggregate amount added back in reliance on this clause (vi), for the Rolling Period ending as of the last day of the most recently ended Fiscal Quarter shall not exceed (1) 10% of Consolidated EBITDA for the Rolling Period ending as of the last day of the most recently ended Fiscal Quarter after giving effect to any such add-back and (2) together with amounts added back under clauses (iv), (v) and (x), 25% of Consolidated EBITDA for the Rolling Period ending as of the last day of the most recently ended Fiscal Quarter after giving effect to any such add-backs;

	
 
	
(vii)
	
stock-based compensation expenses;

	
 
	
(viii)
	
other expenses reducing Consolidated Net Income which do not represent a cash item in such period or any future period (in each case of or by the Parent and its Subsidiaries for such period); 

	
 
	
(ix)
	
the Acquired EBITDA of any Person, property, business or asset acquired by Parent, the Borrower or any Subsidiary during such period to the extent not subsequently sold, transferred or otherwise disposed of (but not including the 

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Acquired EBITDA of any related Person, property, business or assets to the extent not so acquired) (each such Person, property, business or asset acquired, including pursuant to a transaction consummated prior to the Effective Date, and not subsequently so disposed of, an “Acquired Entity or Business”), based on the Acquired EBITDA of such Acquired Entity or Business for such period (including the portion thereof occurring prior to such acquisition or conversion) determined on a historical Pro Forma Basis; and

	
 
	
(x)
	
any cash costs, expenses, fees, fines, penalties, judgments, legal settlements and other cash amounts (to the extent not reimbursed by insurance) associated with any litigation, claim, proceeding or investigation related to or undertaken by or against the Parent or any of its Subsidiaries for the Rolling Period ending as of the last day of the most recently ended Fiscal Quarter, in an amount not to exceed, together with amounts added back under clauses (iv), (v) and (vi), 25% of Consolidated EBITDA for the Rolling Period ending as of the last day of the most recently ended Fiscal Quarter after giving effect to any such add-backs;

	
 
	
(b)
	
minus the following to the extent included in calculating Consolidated Net Income:

	
 
	
(i)
	
all income and franchise tax credits; and

	
 
	
(ii)
	
all non-cash items increasing Consolidated Net Income (in each case of or by the Parent and its Subsidiaries for such period);

provided, to the extent included in determining Consolidated Net Income for such period, Consolidated EBITDA shall be calculated so as to exclude (x) the effects of adjustments (including without limitation, in connection with the fair value adjustment directly related to the Parent’s deferred revenue and fair value adjustments determined in accordance with GAAP related earn-outs, holdbacks or other contingent consideration obligations) resulting from the application of purchase accounting related to any acquisition consummated prior to the date hereof or any Permitted Acquisition or the amortization or write-off of any amounts thereof, net of Taxes and (y) the cumulative effect for any changes in GAAP or accounting principles applied by management during such period.

“Consolidated Total Net Leverage Ratio” means, as of the last day of any Fiscal Quarter of the Parent, the ratio of: (a) (i) the outstanding principal amount of Consolidated Total Indebtedness, as reflected on the balance sheet of the Parent and its Subsidiaries on a consolidated basis less (ii) the amount of unrestricted, unencumbered (other than Liens described in Section 8.3(j)) cash and cash equivalents as set forth on the balance sheet of the Parent and its Subsidiaries on a consolidated basis as of the last day of such Fiscal Quarter end of the Parent and its Subsidiaries (for the avoidance of doubt, excluding Cash Collateral), (i) solely during the Amendment No. 1 Adjustment Period, in excess of $175,000,000 and (ii) at all other times, not to exceed $100,000,000; to (b) Consolidated EBITDA for the Rolling Period ending as of the last day of such Fiscal Quarter.

“Covered Entity” means any of the following:

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(1)A “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

(2)A “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b);

(3)A “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

“Covered Party” is defined in Section 12.11.

“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

“QFC Credit Support” is defined in Section 12.11.

“Supported QFC” is defined in Section 12.11.

“U.S. Special Resolution Regime” is defined in Section 12.11.

	
 
	
(c)
	
Amendment to Article XII.  Article XII is hereby amended by adding new Section 12.11 as follows:

“12.11 Acknowledgement Regarding Any Supported QFCs.  To the extent that the Loan Documents provide support, through a guarantee or otherwise, for swap and related hedging agreements or any other agreement or instrument that is a QFC (such support, “QFC Credit Support” and each such QFC a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States.  In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the 

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laws of the United States or a state of the United States.  Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.”

Section 3Conditions to Effectiveness.  This Amendment shall become effective as of the date upon which each of the following conditions has been satisfied in a manner acceptable to the Administrative Agent and each Consenting Lender (the “Amendment No. 1 Effective Date”):

(a)the Administrative Agent shall have received counterparts of this Amendment executed by each Loan Party and each Consenting Lender;

(b)the Administrative Agent shall have received (i) for the account of the Consenting Lenders, an amendment fee in an amount equal to 0.10% of the total outstanding Revolving Loan Commitments of the Consenting Lenders as of the Amendment No. 1 Effective Date and (ii) all reasonable and documented out-of-pocket expenses of the Administrative Agent (including, without limitation, the reasonable and documented fees and out-of-pocket expenses of legal counsel to the Administrative Agent); 

(c)the representations and warranties set forth in Article VI of the Credit Agreement and in the other Loan Documents shall be true and correct in all material respects as of the Amendment No. 1 Effective Date with the same effect as if then made; provided, that such representations and warranties (i) that relate solely to an earlier date shall be true and correct in all material respects as of such earlier date and (ii) shall be true and correct in all respects if they are qualified by a materiality standard; and

(d)no Default or Event of Default shall have then occurred and be continuing or would result therefrom.

Section 4Loan Documents.  Except as herein provided, the Loan Documents shall remain unchanged and in full force and effect.  This Amendment is a Loan Document executed under the Credit Agreement and shall be construed in accordance with the Credit Agreement. 

Section 5Miscellaneous.  This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or other electronic imaging means (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Amendment.  This Amendment and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. This Amendment and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Amendment and the transactions contemplated hereby and thereby shall each be governed by, and each be construed in accordance with, the laws of the State of New York. 

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Section 6Forum Selection and Consent to Jurisdiction.  Each of the Parent, the Borrower and each other Loan Party irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against the Administrative Agent or any other Lender Party or any Related Party of the foregoing in any way relating to this Amendment or the transactions relating hereto, in any forum other than the courts of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of such courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by applicable Law, in such federal court.  Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law.  Nothing in this Amendment or in any other Loan Document shall affect any right that the Administrative Agent or any other Lender Party may otherwise have to bring any action or proceeding relating to this Amendment against the Parent, the Borrower or any other Loan Party or its properties in the courts of any jurisdiction.  Each of the Parent, the Borrower and each other Loan Party irrevocably and unconditionally waives, to the fullest extent permitted by applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Amendment in any court referred to in this Section 9.  The Parent, the Borrower and each other Loan Party hereby irrevocably waives, to the fullest extent permitted by applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.  To the extent that the Parent, the Borrower or any other Loan Party has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution or otherwise) with respect to itself or its property, the Parent, the Borrower or such other Loan Party hereby irrevocably waives such immunity in respect of its obligations under this Agreement and the other Loan Documents.  The Parent, the Borrower and each Loan Party irrevocably consents to service of process in the manner provided for notices in Section 11.2 of the Credit Agreement at the address for such parties set forth in Section 11.2 of the Credit Agreement.  Nothing in this Amendment or in any other Loan Document shall affect the right of any party to this Amendment to serve process in any other matter permitted by Law.    

Section 7Waiver of Jury Trial, etc.

  EACH PARTY HERETO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AMENDMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE LENDER PARTIES, THE PARENT OR THE BORROWER.  THE PARENT AND THE BORROWER EACH ACKNOWLEDGE AND AGREE THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE LENDER PARTIES ENTERING INTO THIS AMENDMENT.

 

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[Signature Page Follows]

[Signature Page – Amendment No. 1]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above. 

 

		
	
GRUBHUB INC. 

	
 
	
 

	
 
	
 

	
By:
	
/s/ Adam DeWitt

	
 
	
Name: Adam DeWitt

	
 
	
Title:   President and Chief Financial Officer

 

 

		
	
GRUBHUB HOLDINGS INC. 

	
 
	
 

	
 
	
 

	
By:
	
/s/ Adam DeWitt

	
 
	
Name: Adam DeWitt

	
 
	
Title:   President and Chief Financial Officer

[Signature Page – Amendment No. 1]

 

		
	
ADMINISTRATIVE AGENT:

	
 

	
 

	
 

	
CITIBANK, N.A., 

	
as the Administrative Agent

	
 
	
 

	
 
	
 

	
By:
	
/s/ Ronald Homa

	
 
	
Name: Ronald Homa

	
 
	
Title:  Director, as authorized 

 

 

[Signature Page – Amendment No. 1]

 

 

		
		
	
LENDERS:

	
 

	
 

	
 

	
CITIBANK, N.A., as Lender, Swing Line Lender and L/C Issuer

	
 

	
 
	
 

	
 
	
 

	
By:
	
/s/ Ronald Homa

	
 
	
Name: Ronald Homa

	
 
	
Title:   Director

 

[Signature Page – Amendment No. 1]

 

 

		
		
	
 

	
 

	
 

	
 

	
BANK OF AMERICA, N.A., as Lender

	
 

	
 
	
 

	
 
	
 

	
By:
	
/s/ A. Quinn Richardson

	
 
	
Name:  A. Quinn Richardson

	
 
	
Title:   Senior Vice President

 

 

[Signature Page – Amendment No. 1]

 

 

		
		
	
 

	
 

	
 

	
 

	
BMO HARRIS BANK N.A., as Lender and L/C Issuer

	
 

	
 
	
 

	
 
	
 

	
By:
	
/s/ Kendal B. Cross

	
 
	
Name:  Kendal B. Cross

	
 
	
Title:   Director

 

[Signature Page – Amendment No. 1]

 

 

		
		
	
 

	
 

	
 

	
 

	
BANK OF THE WEST, as Lender

	
 

	
 
	
 

	
 
	
 

	
By:
	
/s/ Joe Arnold

	
 
	
Name: Joe Arnold

	
 
	
Title:   Vice President

 

 

[Signature Page – Amendment No. 1]

 

 

		
		
	
 

	
 

	
 

	
 

	
GOLDMAN SACHS BANK USA, as Lender

	
 

	
 
	
 

	
 
	
 

	
By:
	
/s/ Jamie Minieri

	
 
	
Name: Jamie Minieri

	
 
	
Title:   Authorized Signatory

 

 

[Signature Page – Amendment No. 1]

 

 

		
		
	
 

	
 

	
 

	
 

	
JPMORGAN CHASE BANK, N.A., as Lender

	
 

	
 
	
 

	
 
	
 

	
By:
	
/s/ Maria Riaz

	
 
	
Name:  Maria Riaz

	
 
	
Title:   Vice President

 

[Signature Page – Amendment No. 1]

 

 

		
		
	
 

	
 

	
 

	
 

	
MUFG BANK, LTD., as Lender

	
 

	
 
	
 

	
 
	
 

	
By:
	
/s/ Yen Hua

	
 
	
Name:  Yen Hua

	
 
	
Title:   Director

 

[Signature Page – Amendment No. 1]

 

 

		
		
	
 

	
 

	
 

	
 

	
CIBC BANK USA, as Lender

	
 

	
 
	
 

	
 
	
 

	
By:
	
/s/ Robert Cybulski

	
 
	
Name:  Robert Cybulski

	
 
	
Title:   Managing Director

 

[Signature Page – Amendment No. 1]

 

 

		
		
	
 

	
 

	
 

	
 

	
THE HUNTINGTON NATIONAL BANK, as Lender

	
 

	
 
	
 

	
 
	
 

	
By:
	
/s/ Edward A. Cheney

	
 
	
Name:  Edward A. Cheney

	
 
	
Title:  Managing Director

 

 

 

[Signature Page – Amendment No. 1]

 

 

		
		
	
 

	
 

	
 

	
 

	
WINTRUST BANK, as Lender

	
 

	
 
	
 

	
 
	
 

	
By:
	
/s/ Jason Girardin

	
 
	
Name:  Jason Girardin

	
 
	
Title:  Group Senior Vice President

 

[Signature Page – Amendment No. 1]Exhibit 10.1

 

AMENDMENT
TO EMPLOYMENT AGREEMENT

 

THIS AMENDMENT (“Amendment”)
to the Employment Agreement dated as of May 31, 2011 (the “Employment Agreement”) by and between The
First, a National Banking Association (the “Bank) and M. Ray (Hoppy) Cole, Jr. (the “Executive”),
shall be effective as of the 16th day of January, 2020.

 

1.                  
Section 5(c) of the Employment Agreement shall be deleted in its entirety and replaced with the following:

 

		“(c)	Mandatory Reduction of Payments in Certain Events.

 

(i)       Notwithstanding
anything in this Agreement to the contrary, in the event it shall be determined that any payment or distribution by Bank to or
for the benefit of Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or
otherwise) (such benefits, payments or distributions are hereinafter referred to as “Payments”) would,
if paid, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then, prior
to the making of any Payments to Executive, a calculation shall be made comparing (X) the net after-tax benefit to Executive of
the Payments after payment by Executive of the Excise Tax, to (Y) the net after-tax benefit to Executive if the Payments had been
limited to the extent necessary to avoid being subject to the Excise Tax. If the amount calculated under (X) above is less than
the amount calculated under (Y) above, then the Payments shall be limited to the extent necessary to avoid being subject to the
Excise Tax (the “Reduced Amount”). The reduction of the Payments due hereunder, if applicable, shall
be made by first reducing cash Payments and then, to the extent necessary, reducing those Payments having the next highest ratio
of Parachute Value (as defined below) to actual present value of such Payments as of the date of the Change in Control, as determined
by the Determination Firm (as defined in Section 5(c)(ii)) below). For purposes of this Section 5(c), present value shall be determined
in accordance with Section 280G(d)(4) of the Code. For purposes of this Section 5(c), the “Parachute Value”
of a Payment means the present value as of the date of the Change in Control of the portion of such Payment that constitutes a
 “parachute payment” under Section 280G(b)(2) of the Code, as determined by the Determination Firm for purposes of determining
whether and to what extent the Excise Tax will apply to such Payment.

 

(b)       All
determinations required to be made under this Section 5(c), including whether an Excise Tax would otherwise be imposed, whether
the Payments shall be reduced, the amount of the Reduced Amount, and the assumptions to be utilized in arriving at such determinations,
shall be made by an accounting firm or compensation consulting firm selected by Bank (the “Determination Firm”)
which shall provide detailed supporting calculations both to Bank and Executive within 15 business days after the receipt of notice
from Executive that a Payment is due to be made, or such earlier time as is requested by Bank. All fees and expenses of the Determination
Firm shall be borne solely by Bank. Any determination by the Determination Firm shall be binding upon Bank and Executive. As a
result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Determination
Firm hereunder, it is possible that Payments which Executive was entitled to, but did not receive pursuant to Section 5(c)(i),
could have been made without the imposition of the Excise Tax (“Underpayment”), consistent with the calculations
required to be made hereunder. In such event, the Determination Firm shall determine the amount of the Underpayment that has occurred
and any such Underpayment shall be promptly paid by Bank to or for the benefit of Executive but no later than March 15 of the year
after the year in which the Underpayment is determined to exist, which is when the legally binding right to such Underpayment arises.

 

(c)       In
the event that the provisions of Code Section 280G and 4999 or any successor provisions are repealed without succession, this Section
5(c) shall be of no further force or effect.”

 

     

     

    

 

2.                  
Section 6 of the Employment Agreement shall be deleted in its entirety and replaced with the following:

 

“In
the event of a termination of Executive's employment for any reason, Executive covenants and agrees that for a period of one (1)
year after his termination of employment ("Restricted Period"), not to compete, directly or indirectly,
with the Bank or any of its affiliates within fifty (50) miles of any branch or office of the Bank or its affiliates ("Restricted
Area"). Such competition shall include, but not be limited to, participating in or investing in banking or consulting services
provided to individuals or businesses within the Restricted Area for the Restricted Period. However, nothing in this Agreement
shall be constructed in any way to prevent Executive from becoming employed in any such business that is located outside of the
Restricted Area, nor should this Agreement be constructed to prevent Executive from becoming employed during the Restricted Period
by any business within the Restricted Area that does not compete directly or indirectly with the
Bank or any of its affiliates.”

 

3.                  
The following new Section 11 shall be added to the Employment Agreement:

 

		“11.	Code Section 409A.

 

(a)       General.
This Agreement shall be interpreted and administered in a manner so that any amount or benefit payable hereunder shall be paid
or provided in a manner that is either exempt from or compliant with the requirements of Section 409A of the Code and applicable
Internal Revenue Service guidance and Treasury Regulations issued thereunder (and any applicable transition relief under Section
409A of the Code). Nevertheless, the tax treatment of the benefits provided under the Agreement is not warranted or guaranteed.
Neither Bank nor its directors, officers, employees, or advisers shall be held liable for any taxes, interest, penalties, or other
monetary amounts owed by Executive as a result of the application of Section 409A of the Code.

 

(b)       Definitional
Restrictions. Notwithstanding anything in this Agreement to the contrary, to the extent that any amount or benefit that would
constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code (“Non-Exempt Deferred
Compensation”) would otherwise be payable or distributable hereunder, or a different form of payment of such Non-Exempt
Deferred Compensation would be effected, such Non-Exempt Deferred Compensation will not be payable or distributable to Executive,
and/or such different form of payment will not be effected, by reason of such circumstance unless the circumstances giving rise
to such payment event meet any description or definition of “change in control event” or “separation from service,”
as the case may be, in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that
may be available under such definition). This provision does not affect the dollar amount or prohibit the vesting of any
Non-Exempt Deferred Compensation termination of employment, however defined. If this provision prevents the payment or distribution
of any Non-Exempt Deferred Compensation, or the application of a different form of payment, then such payment or distribution shall
be made at the time and in the form that would have applied absent the non-409A-conforming event.

 

(c)       Treatment
of Installment Payments. Each payment of termination benefits under this Agreement, including but not limited to Section 6,
shall be considered a separate payment, as described in Treas. Reg. Section 1.409A-2(b)(2), for purposes of Section 409A of the
Code.

 

     

     

    

 

(d)       Six-Month
Delay in Certain Circumstances. Notwithstanding anything in this Agreement to the contrary, if any amount or benefit that would
constitute Non-Exempt Deferred Compensation would otherwise be payable or distributable under this Agreement by reason of Executive’s
separation from service during a period in which he is a Specified Employee (as defined below), then, subject to any permissible
acceleration of payment by Bank under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts
of interest), or (j)(4)(vi) (payment of employment taxes): (i) the amount of such Non-Exempt Deferred Compensation that would otherwise
be payable during the six-month period immediately following Executive’s separation from service will be accumulated through
and paid or provided on the first day of the seventh month following Executive’s separation from service (or, if Executive
dies during such period, within 30 days after Executive’s death) (in either case, the “Required Delay Period”);
and (ii) the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the
Required Delay Period. For purposes of this Agreement, the term “Specified Employee” has the meaning
given such term in Code Section 409A and the final regulations thereunder.

 

(e)       Timing
of Reimbursements and In-kind Benefits. If Executive is entitled to be paid or reimbursed for any taxable expenses under this
Agreement, and such payments or reimbursements are includible in Executive’s federal gross taxable income, the amount of
such expenses reimbursable in any one calendar year shall not affect the amount reimbursable in any other calendar year, and the
reimbursement of an eligible expense must be made no later than December 31 of the year after the year in which the expense was
incurred. No right of Executive to reimbursement of expenses under this Agreement shall be subject to liquidation or exchange for
another benefit.

 

(f)       Permitted
Acceleration. Bank shall have the sole authority to make any accelerated distribution permissible under Treas. Reg. Section
1.409A-3(j)(4) to Executive of deferred amounts, provided that such distribution meets the requirements of Treas. Reg. Section
1.409A-3(j)(4).”

 

4.                  
The Employment Agreement, as modified by the terms of this Amendment, shall continue in full force and effect from and after
the date of the adoption of this Amendment.

 

     

     

    

 

IN WITNESS WHEREOF,
the parties have caused this Amendment to be duly executed and delivered on the day and year first above written.

 

 

	 	The
    first, a national banking association.
	 	 	 	 
	 	By:	 	/s/
    Donna T. (Dee Dee) Lowery
	 	Name:	 	Donna T. (Dee Dee) Lowery
	 	Title:	 	EVP and CFO

 

 

	 	EXECUTIVE
	 	 
	 	/s/
    M. Ray (Hoppy) Cole, Jr.
	 	M. Ray (Hoppy) Cole,
    Jr.

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