Document:

eqbk-ex101_278.htm

 

 

Exhibit 10.1

AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

This Amended and Restated Employment Agreement (the “Agreement”) is made and entered into this _15____ of __December______ 2014 (the “Effective Date”), by and among EQUITY BANK, a Kansas banking corporation (“Equity Bank”), EQUITY BANCSHARES, INC., a Kansas corporation (“Bancshares,” and together with Equity Bank, the “Bank”), and JULIE HUBER , an individual (“Executive”).

RECITALS

WHEREAS, Executive is currently employed, and has an employment agreement with, the Bank and Bancshares, which employment agreement shall be amended and restated upon the execution of this Agreement.

WHEREAS, the Bank desires to continue to be assured of the association and services of Executive for the Bank.

WHEREAS, Executive is willing and desires to be employed by the Bank, and the Bank is willing to employ Executive, upon the terms, covenants and conditions hereinafter set forth.

For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Bank and Executive hereby agree as follows:

1.Employment.  The Bank agrees to employ Executive, and Executive agrees to accept such employment, on the terms and conditions hereinafter provided.

2.Term.  The term of this Agreement shall be for an initial period of three years commencing as of the Effective Date, and shall be automatically renewed for successive one-year periods thereafter, unless terminated pursuant to Section 6 below; provided, however, that Executive’s obligations in Section 5 below shall continue in effect after such termination.

3.Title, Duties and Responsibilities.  The Bank hereby employs Executive as its Chief Credit Officer Executive Vice President (“EVP”) subject to the supervision and direction of the Bank’s CEO.  Executive shall have such duties as may be assigned to her from time to time by the CEO commensurate with her experience and ordinary responsibilities and regulatory requirements for the position for which she is employed, EVP.  Such duties shall be exercised subject to the control and supervision of the CEO. The Bank shall employ Executive on a full-time basis, and Executive shall devote her full time and professional efforts to the performance of her assigned duties.  The foregoing specifications are not intended as a complete itemization of the duties Executive shall perform and undertake on behalf of the Bank in satisfaction of her employment obligations under this Agreement.

4.Compensation and Benefits.

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(a)Base Compensation.  For all services rendered by Executive under this Agreement, the Bank shall pay Executive a base salary of One  Hundred Seventy-Five Thousand and  Forty Nine Dollars ($175,049.00) per annum, payable in equal installments in accordance with the Bank’s normal payroll practices, effective as of the Effective Date (the “Base Salary”).  The amount of the Base Salary may be reviewed at any time and from time to time by the CEO and shall be reviewed at least annually, but shall not be reduced.  No such change upward shall in any way abrogate, alter, terminate or otherwise affect the other terms of this Agreement.

(b)Vacation and Management Benefits.  Executive shall be entitled to (i) four (4) weeks annual paid vacation (which shall not accumulate from year to year and shall be “paid” upon termination pursuant to Section 7); (ii) sick leave in accordance with Bank policy; (iii) benefits similarly provided to other executive officers of the Bank with similar job responsibilities, including but not limited to health insurance, appropriate county club membership, short term incentives, long term incentives and expenses.  All benefits shall be administered in accord with the Bank’s written policies.  

(c)Reimbursement.  Executive shall be reimbursed for all reasonable “out-of-pocket” business expenses for continuing training and education, business travel and business entertainment (and where appropriate for business reasons, the business travel and business entertainment of her spouse) incurred in connection with the performance of her duties under this Agreement.  The reimbursement of Executive’s business expenses shall be upon monthly presentation to and approval by the Bank (in accordance with Bank’s expense reimbursement policy) of valid receipts and other appropriate documentation for such expenses, and in accordance with applicable governmental bank regulations.  

(d)Restrictions on Reimbursements, Gross-Ups and In-Kind Benefits.  Any reimbursements, gross-ups or in-kind benefits to be provided pursuant to this Agreement (including but not limited to the benefits described in Sections 4(c)) which are taxable to Executive shall be subject to the following restrictions:  (i) each reimbursement or gross-up must be paid no later than the last day of the calendar year following Executive’s tax year during which the expense was incurred or tax was remitted, as the case may be; (ii) the amount of expenses or taxes eligible for reimbursement or in-kind benefits or gross-ups provided, during a tax year of Executive may not affect the expenses or taxes eligible for reimbursement or in-kind benefits or gross-ups to be provided, in any other tax year of Executive; (iii) the period during which any reimbursement or gross-up may be paid or in-kind benefit may be provided shall end two years after termination of this Agreement; and (iv) the right to reimbursement, gross-up or in-kind benefits is not subject to liquidation or exchange for another benefit. 

5.Confidentiality of Trade Secrets; Non-Solicitation; Non-Competition.

(a)Trade Secrets.  Other than in the performance of her duties hereunder, Executive agrees not to disclose, either during the term of Executive’s employment by the Bank or during a period of one year thereafter, to any person, firm or corporation, any confidential information concerning the business affairs, the trade secrets, the customer 

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lists or similar information of the Bank. Without limitation, any unique technique, method, process or technology used by the Bank shall be considered a “trade secret” for the purposes of this Agreement. This paragraph shall survive the expiration or termination of this Employment Agreement for any reason.

(b)Ownership of Trade Secrets; Assignment of Rights.  Executive hereby agrees that all know-how, documents, reports, plans, proposals, marketing and sales plans, client lists, client files and materials made by Executive, or made or otherwise possessed by the Bank, are the property of the Bank and shall not be used by Executive in any way adverse to the Bank’s interests. Executive shall not deliver, reproduce or in any way allow such documents or things to be delivered to or used by any third party other than as reasonably necessary to carry out Executive’s duties without specific direction or consent of the CEO. Executive hereby assigns to the Bank any rights which Executive may otherwise have in any such trade secret or proprietary information and agrees to execute any further documents reasonably requested to secure the assignment.

(c)Non-Solicitation.  Executive covenants and agrees that both during and after her termination of employment with the Bank for any reason; she shall comply with the following:

	
 
	
(i)
	
During Executive’s employment with the Bank and for a period of twelve (12) months after her termination of employment with the Bank for any reason, Executive shall not engage in the following acts of “solicitation”:

	
 
	
1.
	
directly or indirectly, whether as an individual for Executive’s own account, or on behalf of any other person, firm, corporation, partnership, joint venture or entity whatsoever, solicit or endeavor to entice away from the Bank any employee who is employed by the Bank;

	
 
	
2.
	
directly or indirectly through any other individual or entity, solicit, entice, persuade or induce any individual or entity to terminate, reduce or refrain from forming, renewing or extending its relationship, whether actual or prospective, with the Bank; or

	
 
	
3.
	
directly or indirectly through any other individual or entity, solicit, entice, persuade or induce any individual or business that was a customer of Bank during the term of Executive’s employment with Bank to do business with any individual or entity with respect to matters that the Bank did business or was attempting to do with such customer either during the term of Executive’s employment with the Bank or during the term of this solicitation prohibition.

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(d)Non-Competition.

	
 
	
(i)
	
During the term of this Agreement and continuing thereafter, if Executive continues to be employed by the Bank and/or any other entity owned by or affiliated with the Bank, for the duration of such period, and thereafter for a period equal to twelve (12) months, Executive shall not, directly or indirectly, for herself or on behalf of or in conjunction with any other person, company, partnership, corporation, business, group, or other entity:

	
 
	
1.
	
serve, as an officer, director, shareholder, owner, partner, joint venturer, or in a managerial capacity, whether as an employee, independent contractor, consultant, advisor, or sales representative, with an insured depository institution that has a location within any county in which the Bank has a physical location at the time of termination, plus any county that is contiguous to any such county (the “Territory”);

	
 
	
2.
	
The foregoing covenants shall not be deemed to prohibit Executive from acquiring an ownership interest in any publicly-traded depository institution or its holding company, so long as that ownership interest does not exceed one percent (1%) of the total number of shares outstanding of that depository institution, and/or invest in an existing mutual fund that invests, directly or indirectly, in such insured depository institutions.

(e)Conflicting Activities.  Executive shall not, during the term of this Agreement, be engaged in any other outside business activity without the prior written consent of the CEO with the exception of paid Board membership with non-competing companies, as approved by the CEO; provided, however, that this restriction shall not be construed as preventing Executive from investing her personal assets in publicly traded stocks and bonds and similar passive assets.

(f)Acknowledgment, Enforceability.  Executive acknowledges that, in exchange for the execution of the terms set forth in this Section 5, she has received substantial, valuable consideration, and that this Section 5 is the result of arms-length negotiations.  Executive further acknowledges and agrees that this consideration constitutes fair and adequate consideration for the execution of the restriction set forth in this Section.

	
 
	
(i)
	
Executive agrees that the restrictions set forth above are ancillary to an otherwise enforceable agreement and supported by independent valuable consideration as required by Kansas law.  Executive further agrees that the limitations as to time, geographical area, and scope of activity to be restrained by this Section are reasonable and acceptable, and do not impose any greater restraint than is reasonably necessary to protect the trade secrets, proprietary information, goodwill and other 

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business interests of the Bank.  Executive agrees that if, at some later date, a court of competent jurisdiction determines that the agreement set forth in this Section does not meet the criteria established by Kansas law, this Section may be reformed by the court and enforced to the maximum extent permitted under Kansas law.

	
 
	
(ii)
	
This Section 5 shall survive any expiration, non-renewal or termination of the Agreement or any termination of Executive’s employment with the Bank.  To the extent that any provision of this Section 5 conflicts with the terms or provisions of any other agreement between the Bank and Executive, the terms of this Section 5 shall control for the applicable restriction period thereafter.

	
 
	
(iii)
	
All of the covenants in this Section shall be construed as an agreement independent of any other provision in this Agreement, and the existence of any claim or cause of action of Executive against the Bank, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Bank of such covenants.

	
 
	
(iv)
	
It is specifically agreed that any restriction period stated in this Section 5 during which the agreements and covenants of Executive shall be effective, shall be computed by excluding from such computation any time during which Executive is in violation of any provision of this Section.

6.Termination. Notwithstanding anything to the contrary contained herein, Executive’s employment with the Bank and this Agreement shall terminate upon the occurrence of any of the following:

(a)Basis of Termination.

	
 
	
(i)
	
Executive’s employment hereunder may be terminated at any time by mutual agreement of the parties.

	
 
	
(ii)
	
This Agreement shall automatically terminate upon the Executive’s death or the date Executive becomes permanently incapacitated.  “Permanent Incapacity” as used herein, shall mean mental or physical incapacity, or both reasonably determined by the CEO based upon an opinion of Executive’s regularly attending physician or other qualified physician, rendering Executive unable to perform substantially all of her duties hereunder and which appears reasonably certain to continue for at least twelve consecutive months without substantial improvement.  Executive shall be deemed to have “become permanently incapacitated” on the date the CEO has determined that Executive is permanently incapacitated and so notifies Executive.

	
 
	
(iii)
	
Executive’s employment may be terminated by the Bank with “cause,” effective upon delivery of written notice to Executive given at any 

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time (without any necessity for prior notice) if any of the following shall occur:

	
 
	
(1)
	
a violation of a material business directive of the CEO which is demonstrably willful and deliberate on Executive’s part and not remedied within a reasonable time period after receipt of written notice from the CEO;

	
 
	
(2)
	
(A) a felony conviction; (B) any other criminal conviction involving Executive’s theft, dishonesty, or moral turpitude; (C) continuing or habitual drug or alcohol use to an extent that interferes with the performance of Executive’s duties; or (D) Executive’s bankruptcy;

(3)Material breach of any material term of this Agreement; or

	
 
	
(4)
	
Failure to materially perform her duties to the satisfaction of any regulatory agency responsible for supervision of the Bank.

(b)Termination of Executive “Non-Performance”.   Executive’s employment may be terminated by the Bank for “non-performance,” effective upon delivery of written notice to Executive given at any time (without any necessity for prior notice) if any one of the following shall occur:

	
 
	
(i)
	
failure to substantially perform her duties to the satisfaction of the Direct Supervisor or CEO; or

	
 
	
(ii)
	
extended absences from the Bank aggregating six (6) months or more due to illness or disability within a twelve (12) month period. 

(c)Termination by Executive with Notice.  Executive may terminate her employment hereunder by giving the Bank sixty (60) days’ prior written notice, which termination shall be effective on the 60th day following such notice (the “Notice Termination Date”).  The Bank may, in lieu of continuing performance during the 60-day notice period, pay Executive her salary for the balance of the 60-day notice period without requiring further performance by Executive.

(d)Termination of Executive without Notice.  Executive’s employment may be terminated by the Bank for any reason other than death, permanent incapacity (as defined in paragraph 6(a)(ii) above), or cause (as defined in paragraph 6(a)(iii) above) by giving fifteen (15) days’ prior written notice to Executive and such termination shall be effective as of the date of termination stated in such notice.

(e)Termination by Executive for Good Reason.  Executive may terminate her employment for “good reason”.  For purposes of this Agreement, good reason means:

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(i)
	
A change in Executive’s status, title, position or responsibilities (including reporting responsibilities) materially inconsistent with her current duties as EVP ;

	
 
	
(ii)
	
Any material breach by the Bank of any provision of this Agreement.

(f)Nonrenewal.  Either the Bank or Executive may terminate this Agreement and the employment relationship that existed between them by giving written notice to the other not less than ninety (90) days before the end of the initial term hereof, or any subsequent renewal term.    

7.Payment upon Termination.

(a)Upon termination pursuant to Section 6(a) or (b)(ii), the Bank shall pay to Executive within ten (10) days after termination an amount equal to the sum of Executive’s Base Salary accrued to the date of termination, plus any unreimbursed expenses, vacation pay, and other benefits accrued to the date of termination.  

(b)Upon termination pursuant to Section 6(c), the Bank shall pay to Executive, consistent with the Bank’s payroll practices (subject to the acceleration of contemplated by Section 6(c)), an amount equal to Executive’s Base Salary through the Notice Termination Date, plus any unreimbursed expenses, vacation pay, and other benefits accrued through the Notice Termination Date.

(c)Upon termination pursuant to Sections 6(b)(i), (d), (e) or (f), the Bank shall pay to Executive within ten (10) days after termination an amount equal to the sum of all compensation due to Executive under Section 4 accrued to the date of termination, including, without limitation, Executive’s Base Salary, bonus, vacation and management benefits, unreimbursed expenses, and other accrued benefits, subject to Executive signing a general release of claims in a form reasonably acceptable to the Bank within twenty-one (21) days or forty-five (45) days, whichever period is required by applicable law.  In addition to the foregoing payments, the Bank shall continue to pay Executive her Base Salary for twelve (12) months following her termination pursuant to Sections 6 (b)(i), (d), (e), or (f); provided, if Executive is in material breach of any of her obligations under Section 5 of this Agreement, the Bank may cease making these payments. 

(d)In addition to an amount equal to the sum of Executive’s Base Salary accrued to the date of a Change in Control Termination (defined below), plus any unreimbursed expenses, vacation pay, and other benefits accrued to the date of a Change in Control Termination, within thirty (30) days after a Change in Control Termination, the Bank shall pay Executive an amount equal to 2.99 times the sum of (i) the immediately prior year’s Base Salary and (ii) all additional cash compensation paid by the Bank and received by Executive during such year (but for the avoidance of doubt, it shall not include the value of any stock-based compensation) (“Change in Control Payment”); provided that in the event it is determined that any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Internal Revenue Code), would constitute an “excess parachute payment” within the meaning of 

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Section 280G of the Internal Revenue Code, then the Change in Control Payment under this Agreement shall be reduced by the maximum amount that may be paid without resulting in the imposition of excise tax on the Executive under Section 4999 of the Internal Revenue Code.  Any required reduction in the Change in Control Payment pursuant to the foregoing shall be accomplished by first reducing the amount of cash payments due under Section 4 and then by any other cash payments due to Executive.  All determinations to be made under this Section 7(d) shall be made by an independent public accounting firm selected by the Bank immediately prior to the Change in Control Termination, which shall provide its determinations and any supporting calculations both to the Bank and Executive within ten (10) days after the Change in Control Termination.  Any such determination by such accounting firm shall be binding upon the Bank and Executive.  The fees and expenses of such accounting firm in performing the determinations referred to in this Section shall be paid by the Bank.  For the avoidance of doubt, if Executive is eligible for the payment described in this Section, she shall not be eligible for any other severance benefit, inclusive of the benefits described in Section 7(b) hereof.  

(e)A “Change in Control Termination” shall mean (i) termination of Executive’s employment within twelve (12) months after a Change in Control (as defined below) for any reason other than death, “permanent incapacity”, “Cause” (as defined in Section 6(a)(iii) of this agreement), or (ii) Executive’s resignation from the Bank for any reason within twelve (12) months after the Change in Control.

(f)“Change in Control” shall mean the first to occur of any of the following events from and after the date of this Agreement:

	
 
	
(i)
	
Any person, entity or a “group” (as defined in Section 13(d)(3) of the Security Exchange Act, as amended (the “Exchange Act”)) becomes the beneficial owner, directly or indirectly of securities of Bancshares or Equity Bank representing 50% or more of: (1) the then outstanding shares of common stock of Bancshares or Equity Bank, as applicable;  (2) the combined voting power of Bancshares or Equity Bank’s then outstanding securities, as applicable; or (3) the fair market value of all Bancshares or Equity Bank’s then outstanding securities, as applicable; provided, however, if any person, entity or group is considered to own more than 50% of (1) the then outstanding shares of common stock of Bancshares or Equity Bank, as applicable; (2) the combined voting power of Bancshares or Equity Bank’s then outstanding securities, as applicable; or (3) the fair market value of all  Bancshares or Equity Bank’s then outstanding securities, as applicable, the acquisition of additional securities by the same person, entity or group shall not be deemed to be a Change in Control; or

	
 
	
(ii)
	
The majority of the members of the Board of Directors of Bancshares is replaced during any 24-month period by directors whose appointment or election is not endorsed by a majority of the members 

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of the Board of Directors of Bancshares prior to the date of the appointment or election; or

	
 
	
(iii)
	
The consummation of a merger or consolidation of Bancshares or Equity Bank with any other entity other than (1) a merger or consolidation which would result in the voting securities of Bancshares or Equity Bank outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof)  50% or more of the combined voting power of the voting securities of Bancshares or Equity Bank or such surviving entity or any parent hereof outstanding immediately after such merger or consolidation, or (2) a merger or consolidation effected to implement a recapitalization of Bancshares or Equity Bank (or similar transaction) in which no person, entity or “group” (as defined in Section 13(d)(3) of the Exchange Act) is or becomes the beneficial owner, directly or indirectly, of securities of Bancshares or Equity Bank representing 50% or more of (1) the then outstanding shares of common stock of Bancshares or Equity Bank; (2) the combined voting power of Bancshares or Equity Bank’s then outstanding securities; or (3) the fair market value of all Bancshares or Equity Bank’s then outstanding securities; or

	
 
	
(iv)
	
The sale or disposition of all or substantially all of the assets of Bancshares or Equity Bank, as applicable;

Notwithstanding the foregoing, no “Change in Control” shall be deemed to have occurred if there is consummated any transaction or series of integrated transactions immediately following which the holders of the common stock of Bancshares or Equity Bank immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of Bancshares or Equity Bank immediately following such transaction or series of transactions.

For purpose of this Section, “beneficial ownership” shall be determined in accordance with Rule 13d-3 under the Exchange Act.

8.Notices.  Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered in person or sent by registered or certified mail, postage paid, to Executive at the last address Executive has filed in writing with the Bank, or, in the case of the Bank, to the attention of the CEO.  All such communications shall be deemed given upon receipt.  Any party may by notice in writing to the other parties change the address to which notices to it or her are to be addressed hereunder.

9.Internal Revenue Code Section 409A.

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(a)It is intended that this Agreement will comply with Section 409A of the Code and any regulations and guidelines issued thereunder (collectively, “Section 409A”) to the extent this Agreement is subject thereto.  This Agreement shall be interpreted on a basis consistent with such intent.

(b)If any payments or benefits provided to the Executive by the Bank, either per this Agreement or otherwise, are non-qualified deferred compensation subject to, and not exempt from, Section 409A (“Subject Payments”), the following provisions shall apply to such payments and/or benefits:

(c)For payments and benefits triggered by termination of employment, reference to the Executive’s “termination of employment” (and corollary terms) with the Bank shall be construed to refer to the Executive’s “separation from service” from the Bank (with such phrase determined under Treas. Reg. Section 1.409A-1(h), as uniformly applied by the Bank) in tandem with the termination of her employment with the Bank.

(d)If the Executive is deemed on the date of her “separation from service” to be a “specified employee” (within the meaning of Treas. Reg. Section 1.409A-l(i)), then with regard to any payment that is required to be delayed pursuant to Internal Revenue Code Section 409A(a)(2)(B) (the “Delayed Payments”), such payment shall not be made prior to the earlier of (i) the expiration of the six (6) month period measured from the date of her “separation from service” and (ii) the date of her death.  Any payments other than the Delayed Payments shall be paid in accordance with the normal payment dates specified herein.  In no case will the delay of any of the Delayed Payments by the Bank constitute a breach of the Bank’s obligations to the Executive.

(e)The Executive’s right to receive installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.  Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Bank.  

(f)Notwithstanding any other provision of this Agreement to the contrary, in no event shall any Subject Payment be subject to offset by any other amount unless otherwise permitted by Section 409A.

(g)Notwithstanding anything herein to the contrary, in regard to Subject Payments, the definition of Change in Control set forth herein shall not be broader than the definition of “change in control event” as set forth under Section 409A, and if a transaction or event does not otherwise fall within such definition of “change of control event,” it shall not be deemed a Change in Control.

(h)To the extent that any reimbursement or in-kind benefits are Subject Payments: (x) the amount eligible for reimbursement or in-kind benefit in one calendar year may not affect the amount eligible for reimbursement or in-kind benefit in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), (y) the right to 

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reimbursement or an in-kind benefit is not subject to liquidation or exchange for another benefit, and (z) subject to any shorter time periods provided herein, any such reimbursement of an expense or in-kind benefit must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred.

(i)If an amendment of this Agreement is necessary in order for it to comply with Section 409A, the Executive and the Bank agree to negotiate in good faith to amend this Agreement in a manner that preserves the original intent of the parties to the extent reasonably possible.  No action or failure by the Bank in good faith to act, pursuant to this Section 20, shall subject the Bank to any claim, liability, or expense, and the Bank shall not have any obligation to indemnify or otherwise protect the Executive from the obligation to pay any taxes pursuant to Section 409A.  The Bank does not make any representations as to the personal income tax treatment of any severance payments or other benefits provided to the Executive.

10.Miscellaneous.

(a)Entire Agreement.  This Agreement constitutes the entire agreement between the parties and may not be changed except by a writing duly executed and delivered by the parties hereto.

(b)Governing Law.  This Agreement is governed by and shall be construed in accordance with the laws of the State of Kansas, without giving effect to its conflicts of laws principles. 

(c)Survival.  Except as otherwise provided in this Agreement, upon the termination of this Agreement, the obligations of the Bank and Executive contained in Sections 5 and 6 shall survive and remain in effect.

(d)Enforcement.  In view of the substantial harm which will result from the breach by Executive of any of the covenants contained in Section 5 the parties agree that such covenants shall be enforced to the fullest extent permitted by law.  Accordingly, if, in any judicial proceeding, a court shall determine that such covenants are unenforceable because they cover too extensive a geographic area or survive for too long a period of time, or for any other reason, then the parties intend that such covenants shall be deemed to cover such maximum geographic area and maximum period of time and shall otherwise be deemed to be limited in such manner as will permit enforceability by such court.  If any term or provision of this Agreement or the application thereof to any circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement or the application to other persons and circumstances shall not be affected thereby and each term and provision hereof shall be enforced to the fullest extent permitted by law.

(e)Remedies.  Executive agrees that her breach of any of the provisions of Section 5 above will cause irreparable damage to the Bank and that the recovery by the Bank of money damages will not alone constitute an adequate remedy for such breach.  Accordingly, Executive agrees that such provisions may be specifically enforced against 

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her, in addition to any other rights or remedies available to the Bank on account of any such breach, and Executive hereby waives the defense in any equitable proceeding that there is an adequate remedy at law for any such breach and agrees that injunctive or other equitable relief will not constitute any hardship upon Executive.

(f)Assignment.  The rights and obligations of the parties to this Agreement shall not be assignable, except that the rights and obligations of the Bank hereunder shall be assignable to any successor of the Bank upon a merger, reorganization or recapitalization or any entity that acquires substantially all of the assets of the Bank.

(g)Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument, regardless of whether or not the signatures of all of the parties hereto appear on any single counterpart hereof.  For purposes of this Agreement, the Bank and Executive agree that a facsimile or electronically transmitted counterpart bearing the signature of any party to this Agreement shall, absent manifest evidence of fraud, be binding upon such party when actually delivered to the other parties hereto.

(h)Notices.  Unless otherwise provided herein, any and all payments, notices, requests, instructions and other communications required or permitted to be given under this Agreement after the date hereof by any party hereto to any other party may be delivered personally or by nationally recognized overnight courier service or sent by mail or (except in the case of payments) by facsimile transmission, at the respective addresses or transmission numbers set forth below and shall be effective (i) in the case of personal delivery, electronic transmission, when received; (ii) in the case of mail, upon the earlier of actual receipt or five (5) business days after deposit in the United States Postal Service, first class certified or registered mail, postage prepaid, return receipt requested; and (iii) in the case of nationally-recognized overnight courier service, one (1) business day after delivery to such courier service together with all appropriate fees or charges and instructions for such overnight delivery.  The parties may change their respective addresses and transmission numbers by written notice to all other parties, sent as provided in this Paragraph 9(h).  All communications must be in writing and addressed as follows:

If to Executive:

Julie Huber  

1938 N. Split Rail Ct. 

Wichita, KS  67230

E-mail: 

 

If to the Bank:

Equity Bank

7701 E. Kellogg, Suite 200

Wichita, Kansas 67207

ATTN: CEO 

E-mail: belliott@equitybank.com

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Or such other addresses as will be furnished in writing by the parties. 

 

(i)Remedies Cumulative; No Waiver.  No remedy conferred upon either party by this Agreement is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to any other remedy given hereunder or now or hereafter existing at law or in equity.  No delay or omission by either party in exercising any right, remedy, or power hereunder or existing at law or in equity shall be construed as a waiver thereof, and any such right, remedy, or power may be exercised by such party from time to time and as often as may be deemed expedient or necessary by such party in such party’s sole discretion.

(j)Arbitration.  Subject to Section 9(e) hereof, any dispute, controversy, or claim arising out of or relating to this Agreement or breach thereof, or arising out of or relating in any way to the employment of Executive or the termination thereof, shall be submitted to arbitration in accordance with the Employment Dispute Arbitration Rules of the American Arbitration Association.  The arbitration proceedings shall be held in the either Butler County, Kansas, or Sedgwick County, Kansas.  Judgment upon the award rendered by the arbitrator may be entered in any court of competent jurisdiction.  In reaching her decision, the arbitrator shall have no authority to ignore, change, modify, add to or delete from any provision of this Agreement, but instead is limited to interpreting this Agreement.  The parties specifically acknowledge that the Arbitrator must award fees, including attorneys’ fees, and costs of the arbitration to the prevailing party in any such proceeding.

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

 

EXECUTIVE

 

 

 

	
	
  /s/ Julie Huber

	
  Julie Huber

 

 

 

 

 

EQUITY BANK

 

 

 

	
	
  /s/ Brad S. Elliott

	
  Brad S. Elliott

 

 

 

79249.000003 EMF_US 49775422v22

 
 
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Exhibit 10.1

 

February 14, 2017

Dr. Ilham Kadri

Charlotte, NC

Re:Potential Spin-Off or Sale of Diversey

Dear Dr. Kadri:

In light of the announcement that Sealed Air Corporation (the “Company”) is pursuing a spin-off (a “Spin-Off”) of its Diversey Care division and the food hygiene and cleaning business within its Food Care division (collectively, “Diversey”), this letter agreement provides a summary of certain special compensation that you may be eligible to receive in the event of a Spin-Off.

Note that as an alternative to a Spin-Off, the Company may choose to pursue a divestiture of Diversey (a “Sale”).  Accordingly, this letter agreement also provides a summary of certain special compensation that you may be eligible to receive in the event of a Sale.

Diversey Spin-Off Special Compensation

In the event of a Spin-Off, Diversey would become a new, stand-alone public company (“SpinCo”) and would no longer be a subsidiary of the Company.

If a Spin-Off occurs, you will be granted restricted stock units (the “SpinCo RSUs”) under the equity compensation plan adopted by SpinCo (the “SpinCo Stock Plan”).  The SpinCo RSUs will be granted upon the closing of the Spin-Off, with a grant date fair value equal to your current Company long-term incentive plan target award.  The SpinCo RSUs will vest in substantially equal annual installments on the first three anniversaries of the Spin-Off, subject to 100% accelerated vesting in the event of your death, disability or termination of employment by SpinCo without Cause (as defined below).  If you terminate employment for any other reason (e.g., voluntary termination or termination for Cause), you will forfeit any unvested SpinCo RSUs.  In all events, the SpinCo RSUs shall be governed by the terms of the SpinCo Stock Plan and award agreements.

The SpinCo RSUs will be in addition to (1) any Company long-term incentive plan annual award that you may be granted in February 2017 and (2) any SpinCo long-term incentive plan annual award that you may be granted following the Spin-Off as part of SpinCo’s ongoing compensation program.

A Spin-Off will also impact your outstanding equity awards under the Sealed Air Corporation 2014 Omnibus Incentive Plan and, if applicable, the Sealed Air Corporation 2005 Contingent Stock Plan (each, a “Company Stock Plan”).  In that case, the Organization & Compensation (O&C) Committee of the Company’s board of directors will convert your outstanding Company Stock Plan equity awards into economically equivalent SpinCo awards with the same vesting terms (including termination treatment); for performance stock units, the O&C Committee will also adjust 

 

 

performance goals to reflect the Spin-Off (which may include adjustments for performance for the completed portion of the applicable performance period and adjustments to goals for the post-closing portion of the performance period). 

Notwithstanding anything in the foregoing to the contrary, any impact to your outstanding equity awards under the Company Stock Plan as a result of the Spin-Off will be subject to final action under the Company Stock Plan by the O&C Committee and formally communicated to you by the Company under separate cover at a later date, to the extent applicable.

Diversey Sale Special Compensation

In the event of a Sale, Diversey would become a member of the controlled group of the buying entity (the “Buyer”), such that Diversey would no longer be a subsidiary of the Company after the Sale.

If a Sale occurs, you will receive a cash retention bonus payable by the Buyer, subject to your post-Sale employment with the Buyer (the “Retention Bonus”).  The amount of the Retention Bonus will be equal to 1.0 times your current annual rate of base salary, or the following greater amount if the Sale price received by the Company exceeds a threshold level of [omitted] (as determined by the Company), as follows:

 

			
	
Sale Price
	
 
	
Retention Bonus Amount

	
[omitted]
	
 
	
1.25 times current annual rate of base salary

	
[omitted]
	
 
	
1.5 times current annual rate of base salary

	
[omitted]
	
 
	
2.0 times the sum of current annual rate of base salary plus target cash bonus

 

50% of the Retention Bonus will vest and become payable by the Buyer six months after the Sale, and the remaining 50% of the Retention Bonus will vest and become payable by the Buyer 12 months after the Sale, subject to your continued employment with the Buyer in each case.

Notwithstanding the preceding paragraph, 100% of the Retention Bonus will vest and become payable in the event of your death, disability or termination of employment by the Buyer without Cause.  If you terminate employment with Buyer for any other reason (e.g., voluntary termination or termination for Cause) before the vesting date, you will forfeit any unpaid portion of the Retention Bonus.  Payment of the vested Retention Bonus will be made promptly (not more than 30 days) after vesting in a single cash payment (less required tax withholdings).

In addition to the Retention Bonus, the Company will establish an enhanced Diversey severance program, to be assumed by Buyer, under which you will also be eligible to receive an enhanced severance benefit (the “Enhanced Severance”) if your employment is terminated by the Buyer without Cause within two years following a Sale.  The amount of the Enhanced Severance will be 2.0 times the sum of your then-current annual rate of base salary plus target cash bonus (but not less than any statutorily mandated severance amount, if applicable to you), and will be in lieu of any other severance to which you may be entitled from the Company or the Buyer.  

Your outstanding equity awards under the Company Stock Plan upon a Sale will be treated in accordance with the terms of the applicable award agreements under the Company Stock Plan.  For any portion of the awards that is forfeited due to the Sale, the Buyer is to provide replacement awards 

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of equivalent value and vesting (timing), with accelerated vesting if your employment is terminated by Buyer without cause within two years following the Sale, all subject to the terms of the Sale.

Additional Terms and Conditions

The following additional terms and conditions will apply to the SpinCo RSUs, the Retention Bonus and the Enhanced Severance (collectively, the “Transaction Compensation”) and to this letter agreement.

	
1.
	
“Cause” Definition.  For purposes of this letter agreement, “cause” means any of the following, as determined by SpinCo or the Buyer, as applicable: (i) your engaging in fraud, embezzlement or theft in connection with your duties or in the course of your employment; (ii) an act or omission by you that is willfully or grossly negligent or materially harmful to SpinCo’s or the Buyer’s business or reputation or to the business of SpinCo’s or the Buyer’s customers or suppliers as it relates to SpinCo or the Buyer; (iii) your plea of no contest to, or conviction of, a felony; (iv) your substantial failure to perform your duties after receiving notice of the failure from SpinCo or the Buyer, which failure has not been cured within 30 days after you receive notice of the failure; (v) your breach of a restrictive covenant under any applicable agreement with SpinCo or the Buyer; or (vi) a breach of the confidentiality covenant set forth in Section 2 immediately below. 

	
2.
	
Confidentiality of this Letter Agreement.  Your eligibility for the Transaction Compensation is conditioned on your maintaining the confidentiality of this letter agreement.  To the extent permitted by applicable law, you may not discuss or disclose this letter agreement or its subject with any other person at the Company, SpinCo or the Buyer, except your manager or Human Resources representative, or his or her designated representatives. You also are not permitted to discuss or disclose this letter agreement with any other person except your financial advisor or other professional advisors, and your spouse, if applicable, and then only on the condition that you advise them of the obligation to maintain confidentiality under this paragraph.  This confidentiality provision will continue and be enforceable regardless of whether you remain employed and regardless of whether you receive any of the Transaction Compensation.  This confidentiality provision does not apply to the extent that the terms of the letter agreement are publicly disclosed by the Company (e.g., due to your status as an executive officer of the Company).  If you breach this confidentiality provision, your right to any unpaid portion of the Transaction Compensation will be immediately canceled and forfeited, and you will be required to repay any portion of the Transaction Compensation previously paid.

	
3.
	
Assignment.  In the event of a Spin-Off or Sale, this letter agreement will be assigned to and assumed by Diversey or its successor, such that following the transaction, this letter agreement will continue in effect as an obligation of Diversey or its successor, and not the Company.

	
4.
	
Miscellaneous.  This letter agreement contains our entire agreement with respect to the Transaction Compensation and supersedes and invalidates all of our prior or contemporaneous oral or written agreements and understandings with respect to the Transaction Compensation.  Any representations, inducements, promises or agreements, oral or otherwise, which are not embodied herein, will not be of any force or effect.

3

 

	
5.
	
No Effect on Employment Status.  This letter agreement documents our mutual understanding and the terms and conditions applicable to the Transaction Compensation.  This letter agreement does not address or make any promises with respect to your employment status with the Company, SpinCo or the Buyer.  Any determinations regarding your employment status will be addressed separately through your manager and Human Resources.

	
6.
	
Taxes.  Your Transaction Compensation will be subject to all applicable payroll and withholding taxes.

	
7.
	
Governing Law.  This letter agreement will be governed by and construed in accordance with the laws of the State of North Carolina without reference to principles of conflict of laws.  For purposes of litigating any dispute that arises directly or indirectly from this letter agreement, the parties hereby submit to and consent to the exclusive jurisdiction of the State of North Carolina and agree that such litigation will be conducted solely in the courts of Mecklenburg County, North Carolina or the federal courts for the United States for the Western District of North Carolina, where this letter agreement is made and/or to be performed, and no other courts.

	
8.
	
Captions; Amendment.  The captions of this letter agreement are not part of the provisions hereof and will have no force or effect.  This letter agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.

	
9.
	
No Duplication of Benefits.  For the avoidance of doubt, the Transaction Compensation will consist of either the SpinCo RSUs or the Retention Bonus and Enhanced Severance, not both the SpinCo RSUs and the Retention Bonus and Enhanced Severance.

Sincerely,

 

	
	
/s/ Jerome Peribere

	
Jerome Peribere

	
President and CEO

 

Accepted and Agreed To

 

	
/s/ Ilham Kadri
	
 
	
Date:
	
 
	
March 6, 2017

	
Dr. Ilham Kadri
	
 
	
 
	
 
	
 

 

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