Document:

Exhibit
10.52

2003
GRANTS — EXECUTIVES

 

XM SATELLITE RADIO HOLDINGS INC.

1998 SHARE AWARD PLAN

 

NON-QUALIFIED STOCK OPTION AGREEMENT

1.     Definitions. 
Terms defined in the Plan and not otherwise defined in this Agreement
are used in this Agreement as defined in the Plan.  In this Agreement, except where the context otherwise indicates,
the following definitions apply:

A.                                   “Agreement” means this Non-Qualified Stock Option
Agreement, including the Notice of Grant of Stock Options and Option Agreement
attached hereto.

B.                                     “XM” means XM Satellite Radio Holdings Inc., a
Delaware corporation.

C.                                     “Committee” means the committee appointed by the XM
Board of Directors to administer the Plan.

D.                                    “Covered Shares” means the Shares subject to the
Option.

E.                                      “Date of Exercise” means the date on which XM
receives notice of the exercise, in whole or in part, of the Option pursuant to
Section 5.A. of this Agreement.

F.                                      “Date of Expiration” means, subject to the provisions
of Section 3.C and D of this Agreement, ten (10) years after the Date of Grant.

G.                                     “Date of Grant” means the effective date of grant as
set forth on the Notice of Grant of Stock Options and Option Agreement attached
hereto.

H.                                    “Option” means the non-qualified stock option granted
to the Optionee in Section 2 of this Agreement.

I.                                         “Option Period” means the period beginning on the
Date of Grant and terminating on the Date of Expiration.

J.                                        “Option Price” means the dollar amount set forth on
the Notice of Grant of Stock Options and Option Agreement attached hereto.

K.                                    “Optionee” means the person identified as the grantee
on the Notice of Grant of Stock Options and Option Agreement attached hereto.

L.                                      “Plan” means the XM 1998 Shares Award Plan, as the
same may be amended from time to time.

M.                                 “Securities Act” means the Securities Act of 1933, as
amended.

 

1

N.            “Shares” means shares of Class A
Common Stock of XM.

2.     Grant of Option. 
Pursuant to the Plan and subject to the terms of this Agreement, XM
grants to the Optionee the option to purchase from XM that number of Shares
identified in the Notice of Grant of Stock Options and Option Agreement
attached hereto, exercisable at the Option Price, and effective on the Date of
Grant.

3.     Terms of the Option.

A.                                   Type of Option.  The Option is
intended to be a non-qualified stock option and is not an incentive stock
option within the meaning of Section 422 of the Code.

B.                                     Vesting and Exercise.  The Option may be
exercised during the Option Period, subject to the limitation that the Option
shall vest in three (3) equal annual installments such that:

a.                                       no portion of the Covered Shares may be exercised during the first year
following the Date of Grant;

b.                                      during the second year following the Date of Grant, the Option may be
exercised to a maximum of 

33 1/3 % of the Covered Shares;

c.                                       during the third year following the Date of Grant, the Option may be
exercised to a cumulative maximum of 66 2/3% of the Covered Shares; and

d.                                      thereafter the Option with respect to the Covered Shares may be
exercised in full.

C.                                     Termination of Employment:  If the
Optionee’s employment terminates during the Option Period, the Option may be
exercised for the following periods after such termination:  zero (0) months in the case of a termination
for Good Cause; three (3) months in the case of a voluntary termination; six
(6) months following an involuntary termination, or twelve (12) months in the
case of death, disability, retirement or voluntary or involuntary termination
after a Change of Control.  Upon the
Optionee’s termination of employment, the Option shall be exercisable only to
the extent that it was vested and exercisable as of the date of the Optionee’s
termination, except that in the case of (i) Optionee’s death or (ii)
involuntary termination within one year of a Change of Control, the Option
shall vest immediately in full and shall be fully exercisable by the Optionee
or the Optionee’s authorized representative or by his or her properly appointed
attorney-in-fact, guardian, trustee, or conservator, as the case may be.  Notwithstanding the foregoing, (x) the
foregoing shall be subject to (and limited by) the terms of any Employment
Agreement in effect from time to time between XM and the Optionee and (y) the
Option (and the Shares issued upon exercise thereof) may be subject to
forfeiture pursuant to other agreements between XM (or its affiliates) and
Optionee.

 

 

2

 

D.                                    Nontransferability.  The Option is not
transferable by the Optionee other than (i) by will or by the laws of descent
and distribution, or (ii) pursuant to a qualified domestic relations order as
defined in Section 414(p) of the Code or Title I of the Employee Retirement
Income Security Act or the rules thereunder, and is exercisable, during the
Optionee’s lifetime, only by the Optionee or, in the case of the Optionee’s
legal disability, by the Optionee’s legal representative except as provided in
paragraph C of this Section 3.

4.     Capital Adjustments. 
The number of Covered Shares and the Option Price shall be subject to
such adjustment, if any, in accordance with Section 11(a) of the Plan.

5.     Method of Exercise.

A.                                   Notice.  The Option shall
be exercised, in whole or in part, by the delivery to XM of written notice of
such exercise, in such form as the Committee may from time to time prescribe,
accompanied by:

a.                                       full payment in cash or readily available funds or in Shares in the
amount of the Option Price with respect to that portion of the Option being
exercised or pursuant to a cashless exercise program to be established by the
Committee in accordance with Section 4(b) of the Plan;

b.                                      any amount that must be withheld by XM for Federal, State, and/or local
tax purposes, payable either in cash or in Shares, including through
withholding of Shares upon exercise;

c.                                       such representations and documents as the corporation, in its absolute
discretion, deems necessary or advisable to effect compliance with all
applicable provisions of the Securities Act and any other Federal or State
securities laws or regulations.  XM may,
in its absolute discretion, also take whatever additional actions it deems
appropriate to effect such compliance, including, without limitation placing
legends on share certificates and issuing stop-transfer orders to transfer agents
and registrars; and

d.                                      if the Option or portion thereof shall be exercised pursuant to the
provisions of Section 3.C of this Agreement by any person or persons other than
the Optionee, appropriate proof of the right of such person or persons to
exercise the Option or portion thereof.

 

Until the Committee notifies the Optionee to the contrary, the form
attached to this Agreement as Exhibit A shall be used to exercise the Option.

B.                                     Effect.     The exercise, in whole or in part, of the
Option shall cause a reduction in the number of Covered Shares equal to the
number of Shares with respect to which the Option is exercised.

 

3

 

6.     Compliance with Law; Disposition of Shares of Common Stock
Issued Upon Exercise.

A.                                   Compliance with Law:  Notwithstanding
any other provision of this Agreement, the Optionee agrees, for himself or
herself and his or her successors, that XM shall not be required to honor the
exercise of the Option if XM does not have in effect a registration statement
under the Securities Act relating to the offer of Shares to the Optionee under
the Plan, if XM reasonably determines that the exercise of such Option would
violate the Securities Act.  The
Optionee further agrees, for himself or herself and his or her successors, that
upon the issuance of any Shares upon the exercise of the Option, he or she
will, upon the request of the XM, agree in writing that he or she is acquiring
the Shares for investment only and not with a view to resale, and that he or
she will not sell, pledge or otherwise dispose of such shares so issued, unless
and until (a) XM is furnished with an opinion of counsel satisfactory to XM to
the effect that registration of such shares pursuant to the Securities Act is
not required by that Act and the rules and regulations thereunder; (b) the
staff of the Securities and Exchange Commission has issued a “no-action” letter
with respect to such disposition; or (c) such registration or notification as
is, in the opinion of counsel for the corporation, required for the lawful
disposition of such shares has been filed by XM and has become effective;
provided, however, that XM is not obligated hereby to file any such
registration or notification.

The Optionee
further agrees that so long as the Optionee is an employee of XM he or she will
only sell, pledge or otherwise dispose of such shares issued upon the exercise
of the Option in accordance with all insider trading policies of XM then in
effect.  The present version of XM’s
policy requires approval of transfers by certain categories of employees, and
notice and certification by other employees. 
An approval or notification form based on the current plan is attached
for Optionee’s convenience, although Optionee is responsible for completing
different or other forms if then required by XM’s policy.

B.                                     Disposition or Transfer. 
Notwithstanding any other provision of this Agreement, the Optionee
agrees, for himself or herself and his or her successors, that he or she will
not sell, pledge or otherwise dispose of shares issued upon the exercise of the
Option until the first to occur of the following:  (i) the average closing price for the
Shares on the Nasdaq National Market system, or principal stock exchange on
which the Shares are then listed, over the any 20 consecutive trading days
following the Date of Grant equals or exceeds $10, or (ii) seven years have
elapsed since the Date of Grant.  If Optionee intends to dispose of shares issued upon the exercise of the
Option, Optionee will provide to XM a written notice describing the proposed
transfer and indicating which of the prior clauses has been satisfied.

7.     Representations and Warranties.  Upon exercise of the Option in whole or in part, if the shares
underlying the option shall not then be registered under the Securities Act,
the Optionee shall represent, warrant and acknowledge the following:

A.                                   The Optionee has made such investigations as the
Optionee deems necessary and appropriate of the business and/or financial
prospects of XM.

 

4

 

B.                                     The Option is being exercised and the Covered Shares
are being acquired for investment for the Optionee’s own account and not with
the view to, or for resale in connection with, any distribution or public
offering thereof within the meaning of the Securities Act, and the certificate
for such stock may be legended to that effect, that such stock is not
registered under federal or state securities laws and that the registration
exemptions being relied on are the federal and state private or limited
offering exemptions and the Optionee has no reason to believe that such
exemptions are not applicable to the Optionee.

C.                                     The Optionee acknowledges that XM has made available
to the Optionee the opportunity to obtain information to evaluate the merits
and risks associated with this Agreement and the transactions contemplated
thereby.  The Optionee acknowledges that
the investment contemplated by the Option involves a high degree of risk,
including risks associated with XM’s business operations and prospects
including competition and the dependence on XM’s technology and events beyond
XM’s control, the limits on transferability of the Option and Covered Shares,
and the absence of a public market for the Covered Shares.

8.     Rights as Stockholder. 
The Optionee shall have no rights as a stockholder with respect to any
Covered Shares subject to the Option until and unless a certificate or
certificates representing such shares are issued to the Optionee pursuant to
this Agreement.  Except as provided in
Section 4 of this Agreement, no adjustment shall be made for dividends or other
rights for which the record date is prior to the issuance of such certificate
or certificates.

9.     Employment. 
Neither the granting of the Option evidenced by this Agreement nor any
term or provision of this Agreement shall constitute or be evidence of any
understanding, express or implied, on the part of XM to employ or continue the
employment of the Optionee for any period. 
Whenever reference is made in this Agreement to the employment of the
Optionee, it means employment by XM or its affiliates.

10.   Subject to the Plan. 
The Option evidenced by this Agreement and the exercise of the Option
are subject to the terms and conditions of the Plan, which are incorporated
herein by reference and made a part hereof, but the terms of the Plan shall not
be considered an enlargement of any benefits under this Agreement.  In addition, the Option is subject to any
rules and regulations promulgated by the Committee.

11.   Fractional Shares. 
Notwithstanding anything contained herein to the contrary, following a
Public Offering, award exercises and issuances involving the issuance of Shares
may only be effected in whole (and not fractional) shares.

12.   Applicable Law. 
This Agreement shall be subject to the laws of the State of Delaware,
without giving effect to the principles of conflict of laws thereof.

13.   Entire Agreement. 
This Agreement is in lieu of and supersedes all prior agreements,
representations, negotiations, or other understandings of the parties with
respect to the subject matter hereof. 
It may not be amended or altered except in a writing signed by the
Optionee and the authorized representatives of XM.

 

5

 

14.   Waiver and Severability.

A.                                   The waiver by either party of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of
the same or any other breach by either of the parties to this Agreement,
whether prior or subsequent.

B.                                     If any term or provision of this Agreement is
determined by a court of competent jurisdiction to be illegal, invalid, or
unenforceable, the legality, validity, or enforceability of the remainder of
this Agreement shall not thereby be affected, and this Agreement shall be
deemed to be amended to the extent necessary to delete such provision.

15.   Headings.  The
Section, paragraph, and subparagraph headings contained in this Agreement are
for reference purposes only, and shall not in any way affect the meaning or
interpretation of this Agreement.

 

 

6

 

“EXHIBIT A”

 

 

EXERCISE OF OPTION

 

Chairman, Board of Directors

XM Satellite Radio Holdings Inc.

1500 Eckington Place, N.E.

Washington, D.C.   20002-2194

 

To the Board:

 

The undersigned, the Optionee under the Non-Qualified Stock Option
Agreement identified as Option No.          
, granted pursuant to the XM Satellite Radio Holdings Inc. 1998 Share
Award Plan, hereby irrevocably elects to exercise the Option granted in the
Agreement to purchase         shares of
Class A Common Stock of XM Satellite Radio Holdings Inc. (“XM”), par value
$0.01 per share (“Shares”), and herewith makes payment of $           in the form of [cash, Common Stock,
cash plus Common Stock, through the exercise of the cashless exercise program]
for the shares purchased and $         
in the form of                  
[cash, Common Stock, cash plus Common Stock, through the exercise of the
cashless exercise program] to cover the Corporation’s withholding tax liability
in respect of the purchase.  (Please
complete, and complete separate cashless exercise form as appropriate.)

 

 [Note:  Shares of Common Stock being delivered in payment of all or any
part of the exercise price must be represented by certificates registered in
the name of the Optionee and duly endorsed by the Optionee and by each and
every other co-owner in whose name the shares may also be registered.]

 

The Optionee hereby re-affirms his or her agreement under Section 6.B of
the Non-Qualified Stock Option Agreement that he or she will not sell, pledge
or otherwise dispose of Shares issued upon the exercise of the Option until the
first to occur of the following: 
(i) the average closing price for the Shares on the Nasdaq National
Market system, or principal stock exchange on which the Shares are then listed,
over the prior 20 trading days equals or exceeds $10, or (ii) [three] years
have elapsed since the Date of Grant.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature of Optionee)

  

 

Received by XM Satellite Radio Holdings Inc.:  

 

 

	
   

  	
   

  
	
  Name

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Title

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date

  	
   

  

 

7

 

APPROVAL/NOTIFICATION
FORM FOR SALE OF SHARES OF XM STOCK

 

NAME:
________________________________________________________________

 

DATE: ________________________________________________________________

 

NUMBER OF SHARES TO BE SOLD:
_______________________________________

 

SALE TO BE COMPLETED BY:
_____________________________________ 
[DATE]

 

SHARES ACQUIRED THROUGH: [CHECK AS
APPROPRIATE]

                o            MARKET PURCHASE

 

                o            ESPP

 

                o            STOCK OPTION PLAN

     VESTING DATE OF OPTIONS TO BE SOLD  ___________________

 

                o            OTHER ___________________________________

 

I CONFIRM I AM NOT AWARE OF ANY MATERIAL
NON-PUBLIC INFORMATION RELATING TO XM SATELLITE RADIO HOLDINGS, INC. OR ITS
AFFILIATES.

 

 

	
   

  	
   

  	
   

  
	
  [Signature]

  	
   

  	
  [Title]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Print Name]

  	
   

  	
  [Date]

  

 

 

 

APPROVAL OF GENERAL COUNSEL, IF REQUIRED

 

o            Approved

 

o            NOT Approved

 

If approved, sale must be completed with
fourteen (14) calendar days from
the date set forth below (or by such other date as specifically stated herein
by the General Counsel)

 

 

	
   

  	
   

  	
   

  	
   

  
	
  Joseph M.
  Titlebaum

  	
   

  	
  [Date]

  	
   

  
	
  Senior Vice
  President

  	
   

  	
   

  	
   

  
	
  General Counsel
  & Secretary

  	
   

  	
   

  	
   

  

 

8Exhibit 10.2

 

EMPLOYMENT AGREEMENT

 

BETWEEN

 

TEAM FINANCIAL, INC.

 

AND

 

MICHAEL L. GIBSON

 

 

TABLE OF CONTENTS

 

	
  Section

  
	
   

  	
   

  
	
  1.

  	
  Term of Agreement and Definitions

  
	
   

  	
   

  
	
  2.

  	
  Entire
  Agreement

  
	
   

  	
   

  
	
  3.

  	
  Validity

  
	
   

  	
   

  
	
  4.

  	
  Paragraphs and other headings

  
	
   

  	
   

  
	
  5.

  	
  Successors

  
	
   

  	
   

  
	
  6.

  	
  Designation of beneficiaries

  
	
   

  	
   

  
	
  7.

  	
  Duties

  
	
   

  	
   

  
	
  8.

  	
  Salary,
  Bonus, Benefits, Additional Compensation

  
	
   

  	
   

  
	
  9.

  	
  Protection of Company’s Interests

  
	
   

  	
   

  
	
  10.

  	
  Termination by Company

  
	
   

  	
   

  
	
  11.

  	
  Termination by Executive

  
	
   

  	
   

  
	
  12.

  	
  Consequences of Breach

  
	
   

  	
   

  
	
  13.

  	
  Mitigation and Offset

  
	
   

  	
   

  
	
  14.

  	
  Tax “Gross-Up” Provision

  
	
   

  	
   

  
	
  15.

  	
  Remedies

  
	
   

  	
   

  
	
  16.

  	
  Binding
  Agreement

  
	
   

  	
   

  
	
  17.

  	
  Arbitration

  
	
   

  	
   

  
	
  18.

  	
  Amendment;
  Waiver

  
	
   

  	
   

  
	
  19.

  	
  Governing
  Law

  
	
   

  	
   

  
	
  20.

  	
  Notices

  
	
   

  	
   

  
	
  Signatures

  

 

(i)

 

EMPLOYMENT AGREEMENT

BETWEEN

TEAM FINANCIAL, INC.

AND

MICHAEL L. GIBSON

 

This Agreement is made this 1st
day of January, 2003, between Team Financial, Inc., a Kansas corporation (“Company”) and Michael L. Gibson (“Executive”).

 

A.                                    Executive is
employed as President of Investments/CFO, has rendered valuable services to
Company and has acquired an extensive background in and knowledge of Company’s
business.

 

B.                                    Company desires to
continue the services of Executive and Executive desires to continue to serve
Company as President of Investments/CFO.

 

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

 

1.                                      Term of Agreement and Definitions:

 

1.0                               Term
of Agreement:  Company shall employ
Executive and Executive accepts such employment for a period beginning on the
date of this Agreement and ending the 31st day of December, 2005, subject to
the terms and condition set forth herein, unless earlier termination of the
agreement shall occur in accordance with the subsequent provisions set forth
herein.

 

1.1                               Automatic
Extension of Agreement Term:  Not
withstanding the foregoing, if this Agreement shall not have been terminated in
accordance with the provisions herein on or by the 31st day of December, 2005
the term of this Agreement shall be extended automatically without further
action by either party such that at every moment of time thereafter, the term
shall be one year.

 

Provided,
however, during such period of automatic extension of the term, this Agreement
may be terminated in accordance with the termination provisions of this
Agreement as set forth in Sections 10 and 11.

 

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

 

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

 

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

 

1.2.3                     Annual Base
Salary is the sum of money regularly paid by Company to Executive each year
of the term of this Agreement pursuant to provisions of Section 8.0 of this
Agreement.

 

1

 

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

 

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

 

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

 

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

 

1.2.8                     Gross
misappropriation of funds shall be any misappropriation of company funds by
any means which is intentional and not of an inconsequential nature or amount.

 

2.                                      Entire Agreement

 

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

 

3.                                      Validity

 

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

 

4.                                      Paragraphs and other headings

 

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

 

5.                                      Successors

 

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

 

6.                                      Designation of beneficiaries

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

 

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

 

2

 

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

 

7.                                      Duties

 

7.0                                 Company
employs Executive upon an active full-time basis, as President of
Investments/CFO subject to the order and direction of the Chief Executive
Officer (“CEO”) of Company.

 

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

 

7.2                                 The
duties of President of Investments/CFO shall be defined using a written job definition,
developed by CEO on behalf of Company. 
The CEO shall consult with Executive in the development of the written
job definition.  Executive and said
written job definition shall be subject to any systematic evaluation system(s)
that the Company may from time to time employ.

 

7.3                                 Executive’s
duties shall be performed principally at Company’s headquarters located in
Paola, Kansas.  During the term of the
Agreement, it is understood that Company expects to maintain its principal
place of business in Paola, Kansas.

 

8.                                      Salary, Bonus, Benefits, Additional Compensation

 

8.0                               Annual
Base Salary.

 

Executive
shall receive an annual base salary of $155,250.00 payable according to the
customary payroll practices of Company and subject to all required withholding
taxes.  The Chief Executive Officer, in
his discretion, may increase this base salary upon relevant circumstances.  Executive will be reviewed at least
annually.  At least every two years
Company will review Executive’s annual base salary for competitiveness and
appropriateness in the industry.  Any
increase in annual base salary awarded to the Executive by the Company, shall
constitute a new annual base salary for the purpose of this Agreement. To be
effective such changes in the annual base salary shall be in writing signed by
the Company.

 

8.1                               Bonus.

 

8.1.1                     Standard
Company Bonuses.  Executive shall be
eligible to receive, in addition to his salary, any contributions or sums
specified as additional compensation through any established plan or policy of
the Company which is available to senior executives as compensation over and
above established salaries.

 

8.1.2                     Annual
Executive Bonus.  In addition,
Executive shall be entitled to receive a yearly annual bonus.  The amount of such bonus shall be based upon
criteria established by the CEO and may include either or both stock and
cash.  Provided, however, such bonus
shall not exceed fifty percent (50%) of Executive’s annual base salary in
effect for the period for which the bonus is granted.  During the term of this Agreement, the yearly annual bonus shall
be paid not later than January 31 of the calendar year following annual bonus
year.

 

8.2                               Benefits.

 

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

 

3

 

8.2.1                        Executive
shall be entitled, in addition to life insurance coverage in effect for all
employees, to a life insurance policy in the amount of $240,000.00 all premiums
to be paid by Company.

 

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

 

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

 

8.2.4                        Special Executive Allowance.  Company agrees to pay reasonable room, board, travel,
and sponsored event expenses of Executive’s spouse on two (2) business trips
per year of Executive’s choice.

 

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

 

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

 

8.2.7                        During (i)
the term of this Agreement, (ii) the twelve month period following the
termination of this Agreement as a result of death, (iii) a two year period
following the termination of this Agreement as a result of disability, (iv) a
three year period following termination of this Agreement by Executive for
material breach or good cause, and (v) a three year period following a
termination of this Agreement by Company without cause; Company shall pay to
Executive, or his estate if he be deceased, a sum as reimbursement for
reasonable out-of-pocket expenses incurred for third-party professional
financial and tax advice provided by a licensed professional of Executive’s
choice.  Provided, however, that in (i)
above, the sum shall not exceed fifteen percent (15%) of Executive’s annual
base salary for that year; (ii) above, the sum shall not exceed twenty-five
percent (25%) of Executive’s annual base salary for that year; (iii), (iv) and
(v) above, the sum shall not exceed twenty-five percent (25%), each year, of
Executive’s annual base salary at the time of Executive’s disability or time of
termination.

 

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

 

8.3                                 Additional Compensation.

 

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

 

4

 

8.4                                 Tax Liability.

 

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

 

9.                                      Protection of Company’s Interests

 

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

 

9.1                                 Except
for actions taken in the course of his employment hereunder, at no time shall
Executive divulge, furnish or make accessible to any person any information of
a confidential or proprietary nature obtained by him while in the employ of
Company.  Upon termination of his
employment by Company, Executive shall return to Company all such information
which exists in writing or other physical form and all copies thereof in his
possession or under his control.

 

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

 

10.                               Termination by Company

 

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

(i)                                     Upon
the death of Executive;

(ii)                                  Upon
the disability of Executive;

(iii)                               Upon
material breach or good cause; and

(iv)                              Upon
written notice by Company without cause.

(v)                                 Upon
written notice by Company, during the period of automatic extension of
the term, of Company’s 

intention to have this Agreement expire in
one year.

 

10.1         If Executive dies before his employment
with Company is otherwise terminated, Executive’s designated beneficiary, or in
the absence of a designated beneficiary, the estate of the Executive, will
receive all sums due under the Split Dollar Agreement and Deferred Compensation
Agreement between Executive and TeamBank, N. A. then in existence.  In the event the total amount paid to the
beneficiaries or the estate of Executive is less than $500,000.00, Company shall
pay to the designated beneficiary of Executive, or in the absence of a
designated beneficiary, to the estate of Executive, as soon as reasonably
practical, a sum equal to the difference between the total amount paid under
the Split Dollar Agreement and $500,000.00. 
Under this section it is the intent of the Company and Executive that
the Executive’s beneficiary, or in the absence of a designated beneficiary, to
the estate of Executive, receive in total death benefits shall not be less than
$500,000.00. Company may purchase life insurance to cover all or any part of
its obligations contained in this section. Executive agrees to take a physical
examination to facilitate the Company’s purchase of such insurance.  In the event that Executive is uninsurable,
Company may elect to disperse any funds owed by Company under this section in
equal monthly payments over the remaining period of the year of Executive’s
death, or if less than six (6) months, over a period of twelve (12) consecutive
months.  Executive’s dependents will
also be entitled to:

 

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

 

5

 

amount greater
than that which Executive would have paid in order to participate in Company’s
plans and policies.

 

Entitlement
(i) above shall be maintained in effect for the continued benefit of
Executive’s dependents for a period of six (6) months after the date of
termination due to death.

 

10.2                           For the
purposes of this Agreement, Executive shall be deemed to have become disabled,
if, during any year of the term of this Agreement, because of ill health,
physical or mental impairment, or for other causes beyond Executive’s control,
Executive shall have been continuously unable or unwilling, or shall have
failed to perform his duties under this Agreement for ninety (90) consecutive
days, or if, during any calendar year of the term of this Agreement, Executive
shall have been unable or unwilling or shall have failed to perform his duties
for a total period of one hundred eighty (180) days, irrespective of whether or
not such days are consecutive.  With
respect to any termination by Company for disability, the specifics of the
basis of termination shall be communicated to Executive in writing at least thirty
(30) days before the date on which the termination is proposed to take
effect.  Executive shall have until the
effective date of the notice to cure or remedy such disability and or correct
the misconception of the disability.  If
this Agreement is terminated for disability, any questions as to the existence
of the Total and Permanent disability of Executive as to which Executive and
Company cannot agree shall be determined in writing by a qualified independent
physician mutually acceptable to Executive and Company.  If Executive and Company cannot agree as to
a qualified independent physician, each shall appoint such a physician and
those two physicians shall select a third who shall make such determination in
writing.  If there is a disagreement
between Executive and Company as to the disability of Executive, the effective
date of the termination will be extended a reasonable time to allow for a
determination by a physical, as described above.  Any refusal by Executive to submit to a medical examination for
the purpose of certifying disability under this section shall be deemed to
constitute evidence of Executive’s disability. 
If Executive is disabled before his employment with Company is otherwise
terminated, Company shall continue to pay the current annual base salary for
the remainder of the contract to the Executive, or if the Executive is totally
incapacitated, to his appointed guardian, at the time he is determined to be
disabled.  Whenever compensation is
payable to Executive hereunder, during a time when he is disabled, pursuant to
the terms of any insurance provided by Company, the compensation payable to him
hereunder shall be inclusive of any such disability insurance and shall not be
in addition thereto.  If this agreement
is terminated for disability Executive shall also be entitled to:

 

(i)                                     All
Company insured and self insured medical and dental plans in which Executive
was participating immediately prior to termination paid for by the company for
a period of one year provided, further that, in no event shall Executive be
required to pay any premiums or other charges in an amount greater than that
which Executive would have paid in order to participate in Company’s plans and
policies..

(ii)                                  The
group individual life insurance policies of Company then in effect for
Executive for a period of one year; provided that if Company so elects, or such
continued participation is not possible under the general terms and conditions
of such plans or under such policies, Company shall, in lieu of the foregoing,
arrange to have issued for the benefit of Executive and Executive’s dependents
equivalent benefits (on an after-tax basis); provided, further that, in no
event shall Executive be required to pay any premiums or other charges in an
amount greater than that which Executive would have paid in order to
participate in Company’s plans and policies.

(iii)                               All
such Bonuses and Other Compensation as provided for in Section 8 above, it
being understood, however, that all such payments due, if made pursuant to this
clause shall be paid in cash within thirty (30) days of the date of
termination.  All stock options granted
by Company to Executive under any provision of Section 8 or granted by Company
to Executive prior to the date hereof will accelerate and become immediately
exercisable;

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

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

 

6

 

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

 

If this
agreement is terminated for material breach or good cause, Executive shall be
entitled to:

(i)                                     All
Company insured and self insured medical and dental plans in which Executive
was participating immediately prior to termination; and

(ii)                                     The group
individual life insurance and disability policies of Company then in effect for
Executive; 

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

 

Entitlement of
(i) and (ii) of this section shall be maintained in effect for the continued
benefit of the Executive and his dependents for a period of six (6) months
after the date of termination or until the commencements of each equivalent
benefit from Executive’s new employer, but not to be provided longer than six
(6) months.

 

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

(i)                                     All
Company insured and self insured medical and dental plans in which Executive
was participating immediately prior to termination; and

(ii)                                  The
group individual life insurance and disability insurance policies of Company
then in effect for Executive;  provided,
however, that if Company so elects, or such continued participation is not
possible under the general terms and conditions of such plans or under such
policies, Company shall, in lieu of the foregoing, arrange to have issued for
the benefit of Executive and Executive’s dependents equivalent benefits (on an
after-tax basis); provided, further that, in no event shall Executive be
required to pay any premiums or other charges in an amount greater than that
which Executive would have paid in order to participate in Company’s plans and
policies.

 

Entitlement of
(i) and (ii) of this section shall be maintained in effect for the continued
benefit of Executive and his dependents for a period of three (3) years after
the date of termination or until the commencement of each equivalent benefit
from Executive’s new employer, but not to be provided longer than three (3)
years after the date of termination.

(iii)                               A
furnished office, like his Company office, from which to operate for a period
of six (6) months or until Executive accepts employment with another employer,
which ever occurs first.  Executive’s
office will be provided, at Company’s expense, with a desk; phone; access to
fax for outgoing and incoming faxes; computer, software, and access to a
printer.

(iv)                              A
cash payment equal to the present value (based on a discount rate equal to the
then current 5 year treasure note with a floor of 5% and a ceiling of 9%) of
Executive’s annual base salary hereunder for the remainder of the term of the
Agreement, or for one (1) year, which ever is longer, payable within thirty
(30) days of the date of such termination;

 

7

 

(v)                                 All
such Bonuses and Other Compensation as provided for in Section 8 above, it
being understood, however, that all such payments due, if made pursuant to this
clause shall be paid in cash within thirty (30) days of the date of
termination.  All stock options granted
by Company to Executive under any provision of Section 8 or granted by Company
to Executive prior to the date hereof will accelerate and become immediately
exercisable;

(vi)                              A
sum as reimbursement for reasonable out-of-pocket expenses incurred for
third-party professional financial and tax advice provided by a licensed
professional of Executive’s choice for a period of three (3) years after the
date of termination, sum not to exceed, in any one year, twenty-five percent
(25%) and in the aggregate, seventy-five percent (75%) of Executive’s base
salary, as provided in Section 8;

(vii)                           A sum
as reimbursement for reasonable out-of-pocket expenses incurred for
out-placement advice and counseling provided by a professional placement agency
and/or recruiter of Executive’s choice for a period of twelve (12) months after
date of termination, sum not to exceed fifty percent (50%) of Executive’s base
salary, as provided in Section 8;

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

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

10.5                           Company
shall be entitled to terminate this Agreement during the period of automatic
extension of the term as set forth in section 1.1, by giving written notice to
Executive of the company’s intention to have the term of this Agreement expire
one year from the date of such notification. 
If Company shall so terminate this agreement, Executive shall be
entitled only to those benefits provided under existing law.

 

10.6                           Company
may purchase life insurance to cover all or any part of its obligations
contained in this paragraph and Executive agrees to take a physical examination
to facilitate the placement of such insurance. 
In the event that Executive is uninsurable, Company may elect to
disperse the funds due in equal monthly payments over the remaining period of
the year due, or if less than six (6) months, over a period of twelve (12)
consecutive months.

 

11.                               Termination by Executive

 

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

(i)                                     Upon
material breach or good cause; and

(ii)                                  Upon
written notice to the Chief Executive Officer without cause.

 

11.1                           For
purposes of this Agreement, a material breach by Company of the terms of this
Agreement shall entitle Executive, upon written notice to the Company, to
terminate his services under this Agreement effective thirty (30) days from and
after receipt of such notice by Company. 
Such notice shall include a specific description of such breach and the
Company shall have until the effective date of the notice to cure or remedy
such breach.  Upon the cure or remedy of
such breach, the Executive shall rescind his notice of termination.  For purposes of this Agreement, a
termination for good cause by Executive shall be based upon the following
action by the Company:  a failure,
without good cause to continue Executive as President of Investments/CFO of
Company; a failure, without good cause to continue to vest Executive with the
power and authority of President of Investments/CFO of Company; the loss,
without good cause of Executive’s consent, of any significant duties or
responsibilities attending such office. 
Provided, however, Executive’s title, duties and responsibilities shall
be deemed to be altered with good cause by the Chief Executive Officer if
Company is (or substantially all of its assets are) sold to or combined with
another entity and Executive shall thereafter continue to have the same
significant duties and responsibilities with respect to Company’s continuing
business and if Executive shall report to the Chief Executive Officer of the
continuing Company with a like Agreement, for a term no less than that
remaining on this Agreement or two (2) years, whichever is longer.  Upon the occurrence of any happening which
would authorize Executive to terminate his employment for good cause, Executive
shall notify the Chief Executive Officer in writing within sixty (60) days following
such occurrence or Executive shall be deemed to have waived his right to
terminate this Agreement for such occurrence. 
The Chief Executive Officer shall have until the effective date of the
notice to cure or remedy such good cause occurrence.  Upon the cure or remedy of 

 

8

 

such good
cause occurrence, the Executive shall rescind his notice of termination.  Upon termination of employment by Executive
for material breach or good cause, Executive shall be entitled to:

(i)                                     All
company insured and self insured medical and dental plans in which Executive
was participating immediately prior to termination; and

(ii)                                  The
group individual life insurance and disability insurance policies of Company
then in effect for Executive; provided, however, that if Company so elects, or
such continued participation is not possible under the general terms and
conditions of such plans or under such policies, Company shall, in lieu of the
foregoing, arrange to have issued for the benefit of Executive and Executive’s
dependents equivalent benefits (on an after-tax basis); provided, further that,
in no event shall Executive be required to pay any premiums or other charges in
an amount greater than that which Executive would have paid in order to
participate in Company’s plans and policies.

 

Entitlement of
(i) and (ii) of this section shall be maintained in effect for the continued
benefit of Executive and his dependents for a period of three (3) years after
the date of termination or until the commencement of each equivalent benefit
from Executive’s new employer, but not to be provided longer than three (3)
years after the date of termination.

(iii)                               A
furnished office, like his Company office, from which to operate for a period
of one (1) year or until Executive accepts employment with another employer,
which ever occurs first.  Executive’s
office will be provided, at Company expense, with a desk; phone; access to fax
for outgoing and incoming faxes; computer, software, and access to printer.

(iv)                              A
cash payment equal to the present value (based on a discount rate equal to the
then current 5 year treasure note with a floor of 5% and a ceiling of 9%) of
Executive’s base salary hereunder for the remainder of the term of the
Agreement, or for one (1) year, which ever is longer, payable within thirty
(30) days of the date of such termination;

(v)                                 All
such Bonuses and Other Compensation as provided for the Section 8 above, it
being understood, however, that all such payments due, if made pursuant to this
clause shall be paid in cash within thirty (30) days of the date of
termination.  All stock options granted
by Company to Executive under any provision of Section 8 or granted by Company
to Executive prior to the date hereof will accelerate and become immediately
exercisable;

(vi)                              A
sum as reimbursement for reasonable out-of-pocket expenses incurred for
third-party professional financial and tax advice provided by a licensed
professional of Executive’s choice for a period of three (3) years after date
of termination, sum not to exceed, in any one year, twenty five  percent (25%) and in the aggregate, seventy
five percent (75%) of Executive’s base salary, as provided in Section 8;

(vii)                           A sum
as reimbursement for reasonable out-of-pocket expenses incurred for
out-placement advice and counseling provided by a professional placement agency
and/or recruiter of Executive’s choice for a period of twelve (12) months after
date of termination, sum not to exceed fifty (50) percent of Executive’s base salary.

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

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

 

11.2                           Company
may purchase life insurance to cover all or any part of its obligations
contained in this paragraph and Executive agrees to take a physical examination
to facilitate the placement of such insurance. 
In the event that Executive is uninsurable, Company may elect to
disperse the funds due in equal monthly payments over the remaining period of
the year due, or if less than six (6) months, over a period of twelve (12)
consecutive months.

 

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

 

11.4                           If
Company is (or substantially all of its assets are) sold to or combined with
another entity, Executive shall have the exclusive right and option to approve
any resulting salary, benefits, title, duties and/or responsibilities of
Executive if the entity offers Executive continuing employment 

 

9

 

with the entity or in the alternative Executive shall be entitled to
terminate  this Agreement for good cause
and shall have all of the entitlements set forth in Section 11.1 (i) through
(ix) except the entitlement provided for in (iv) which shall be void in these
circumstances and the following shall be substituted therefore; “(iv) A cash
payment equal to the present value (based on a discount rate equal to the then
current 5 year treasure note with a floor of 5% and a ceiling of 9%) of
Executives base after-tax salary hereunder for the remainder of the term of
this Agreement, or for three (3) years, which ever is longer, payable within
thirty days of the date of such termination.”Executive shall also be entitled
to:

 

(i)                                     All
Company insured and self insured medical and dental plans in which Executive
was participating immediately prior to termination; and

(ii)                                  The
group individual life insurance and disability insurance policies of Company
then in effect for Executive; provided, however, that if Company so elects, or
such continued participation is not possible under the general terms and
conditions of such plans or under such policies, Company shall, in lieu of the
foregoing, arrange to have issued for the benefit of Executive and Executive’s
dependents equivalent benefits (on an after-tax basis); provided, further that,
in no event shall Executive be required to pay any premiums or other charges in
an amount greater than that which Executive would have paid in order to participate
in Company’s plans and policies.

 

Entitlement of
(i) and (ii) of this section shall be maintained in effect for the continued
benefit of Executive and his dependents for a period of three (3) years after
the date of termination or until the commencement of each equivalent benefit
from Executive’s new employer, but not to be provided longer than three (3)
years after the date of termination.

 

(iii)                               A
furnished office, equivalent to his Company office, from which to operate for a
period of one (1) year or until Executive accepts employment with another
employer, which ever occurs first. 
Executive’s office will be provided, at Company’s expense, with a desk;
credenza; phone; access to fax for outgoing and incoming faxes; computer,
software, and printer.  All of the above
will be equivalent to what Executive was using at the time of termination.

(iv)                              All
such Bonuses and Other Compensation as provided for in Section 8 above, it
being understood, however, that all such payments due, if made pursuant to this
clause shall be paid in cash within thirty (30) days of the date of
termination.  All stock options granted
by Company to Executive under any provision of Section 8 or granted by Company
to Executive prior to the date hereof will accelerate and become immediately
exercisable;

(v)                                 A
sum as reimbursement for reasonable out-of-pocket expenses incurred for
third-party professional financial and tax advice provided by a licensed
professional of Executive’s choice for a period of three (3) years after the
date of termination, sum not to exceed, in any one year, twenty-five percent
(25%) and in the aggregate, seventy-five percent (75%) of Executive’s base
salary, as provided in Section 8;

(vi)                              A
sum as reimbursement for reasonable out-of-pocket expenses incurred for
out-placement advice and counseling provided by a professional placement agency
and/or recruiter of Executive’s choice for a period of twelve (12) months after
date of termination, sum not to exceed fifty percent (50%) of Executive’s base
salary, as provided in Section 8;

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

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

 

12.                               Consequences of Breach

 

12.0                           If this
Agreement is terminated pursuant to Section 11.01 hereof, or if Company shall
terminate Executive’s employment under this Agreement in any other way that is
a breach of this Agreement by Company, the following shall apply:

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

 

10

 

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

 

13.                               Mitigation and Offset

 

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

 

14.                               Tax “Gross-Up” Provision

 

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

 

15.                               Remedies

 

15.0                           Company
recognizes that because of Executive’s special talents, stature and
opportunities in the financial services industry, in the event of termination
by Company hereunder (except under Section 10.0), or in the event of
termination by Executive under Section 11, before the end of the agreed term,
Company acknowledges and agrees that the provisions of this Agreement regarding
further payments of base salary, bonuses and the exerciseability of stock
options constitute fair and reasonable provisions for the consequences of such
termination, do not constitute a penalty, and such payments and benefits shall
not be limited or reduced by amounts Executive might earn or be able to earn
from any other employment or ventures during the remainder of the agreed term
of this Agreement.

 

16.                               Binding Agreement

 

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

 

17.                               Arbitration

 

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

 

18.                               Amendment; Waiver

 

18.0                           This
instrument contains the entire agreement of the parties with respect to the
employment of Executive by Company and supersedes any prior Agreement between
Company and Executive (it being understood, however, that this agreement shall
not affect any stock options granted to Executive prior to the 

 

11

 

date
hereof).  No amendment or modification
of this Agreement shall be valid unless evidenced by a written instrument
executed by the parties hereto.  No
waiver by either party of any breach by the other party of any provision or
condition of this Agreement shall be deemed a waiver of any similar or
dissimilar provision or condition at the same or any prior or subsequent time.

 

19.                               Governing Law

 

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

 

20.                               Notices

 

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

If to Executive, to:

Michael L.
Gibson

205 Overhill
Dr.

Paola, Kansas
66071

 

If to Company,
to:

Team
Financial, Inc.

Chairman of
the Board

8 West Peoria

Paola, Kansas
66071

 

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

 

IN
WITNESS THEREOF, the parties have executed this
agreement this          day of                             , 2003, effective as of the day and
year first above written.

 

	
   

  	
  TEAM
  FINANCIAL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
  MICHAEL L.
  GIBSON

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