Document:

ex10-1.htm

 

 

Exhibit 10.1

July 1, 2010

Harlee Olafson

109 Buckingham Court

Mankato, MN  56001

Dear Harlee:

I am pleased to offer you employment as Executive Vice President and Chief Risk Officer of West Bancorporation, Inc. (the "Company") and West Bank.

1.           Your employment will commence on or before August 20, 2010 (the “Effective Date”).

2.           In your positions, you will report to the Chief Executive Officer of the Company and perform the duties customarily associated with chief risk officer positions at a publicly traded company and a bank, including such specific duties as may be assigned to you by the CEO or the boards of directors from time to time. You will be expected to perform faithfully and loyally and to the best of your abilities the duties assigned to you and to devote your full business time, attention, and effort to the affairs of the Company and its subsidiaries.

3.           Your annual base salary will be $210,000 ("Base Salary") to be paid in accordance with West Bank’s regular payroll practices (less any withholdings and deductions required by law or authorized by you).  Your Base Salary may be increased for subsequent years, but not decreased, by the Company’s Board of Directors, in its sole discretion, in accordance with the executive compensation plans and policies then in effect.

4.           You shall be eligible to receive a performance bonus of up to forty percent of the amount of your Base Salary for each calendar year worked in accordance with the Company's senior executive bonus plan then in effect ("Performance Bonus").  The amount, if any, of such bonus shall be determined by the Board in its sole discretion.  Any Performance Bonuses awarded while the Company is participating in the Department of the Treasury’s TARP program will be paid in long-term restricted stock.  The stock restrictions shall include (1) a vesting period of not more than the longer of three years from the grant date or the time of repayment of all TARP funds and (2) a requirement that you be employed by the Company on each vesting date.  To the extent not precluded by law or any TARP restriction, the continued employment conditions for vesting of each Performance Bonus shall be satisfied if during your employment by the Company or West Bank you become permanently and fully disabled or die or in the event of a change in control of the Company or a sale of substantially all of the Company’s operating assets.  The Company’s Compensation Committee has the sole discretion to impose vesting restrictions under the West Bancorporation, Inc. Restricted Stock Compensation Plan.  The Company’s Board of Directors has the sole discretion to determine the form of payment (i.e., cash, restricted stock, other) for Performance Bonuses awarded after the Company is no longer subject to TARP executive compensation restrictions.

5.           As consideration for your willingness to enter into this agreement, you will be granted that number of shares of restricted stock pursuant to the Company's Restricted Stock Compensation Plan to constitute $30,000 (valued as of the grant date).  The stock will vest on the later of 1) the time of the Company’s repayment of all TARP funds or 2) two years from the date of the grant.  You will not have to be employed by the Company or West Bank at the time of vesting in order to receive this stock.  If this stock grant can not be made by December 15, 2010, you will be paid $30,000 cash (less any withholdings and deductions required by law or authorized by you) on or before December 31, 2010.

6.           You shall receive those employee benefits and perquisites which the Company makes available to its senior executive officers, including specifically allowances for country club dues and a car in amounts of at least what you are receiving through your current employment.  You shall be entitled to not less than 25 days of paid time off, plus all Company-recognized holidays, during each full year of employment hereunder in accordance with the general terms of the vacation policy adopted by the Company.  The Company reserves the right to modify, amend, suspend, or terminate any or all such employee benefit plans and policies at any time.

 

 

  

  

  

 

7.           The Company will pay your standard and actual relocation expenses including, but not limited to, up to four months of temporary housing in the Des Moines area for you and real estate commission, if any, incurred by you on the sale of your current house.  If you are not able to sell your current house by November 15, 2010, the Company will buy it at its appraised value.

8.           You will be reimbursed for all proper and reasonable expenses incurred by you in the performance of your duties in accordance with the policies of the Company.

9.           From and after the Effective Date and through and including the date that is one year after the effective date of your termination of employment, you agree to not do any of the following, directly or indirectly, without the prior written consent of the Company’s Board of Directors:

	
  

	
(a)

	
directly or indirectly (whether as owner, stockholder, director, officer, employee, principal, agent, consultant, independent contractor, partner or otherwise) own, manage, operate, control, or otherwise carry on a business in competition with the business conducted by the Company or any subsidiary of the Company; or

	
  

	
(b)

	
directly or indirectly attempt to induce any employee of the Company or a subsidiary of the Company to terminate or abandon his or her employment for any purpose whatsoever or any attempt directly or indirectly to solicit the trade or business of any current customer, supplier, or partner of the Company; or

	
  

	
(c)

	
directly or indirectly engage in any activity which is contrary, inimical, or harmful to the interests of the Company, including but not limited to (i) violations of Company policies or (ii) disclosure or misuse of any confidential information or trade secrets of the Company or a subsidiary of the Company.

You acknowledge that any breach or potential breach of this paragraph will result in serious and irreparable injury to the Company for which the Company cannot be adequately compensated by monetary damages alone. You agree, therefore, that, in addition to any other remedy the Company may have, the Company will be entitled to seek both preliminary and permanent injunctive relief (to the extent permitted by law) without the necessity of proving actual damages or posting of a bond.

10.           During your employment by the Company and West Bank, you will not earn any fees for your service, if any, as a director of the Company or any of its subsidiaries. You may engage in charitable, civic, or community activities and, with the prior approval of the Board, may serve as a director of any other business corporation, provided that such activities or service do not interfere with your duties to the Company or violate the terms of any of the covenants contained in this agreement.

11.           Except for disputes between the parties concerning this agreement, the Company shall protect and indemnify you against any and all legal claims or actions involving you as a consequence of your employment under this agreement to the maximum extent allowed under the Iowa Business Corporation Act.  The Company shall also provide you the maximum insurance coverage provided any other employee of the Company.  The Company agrees to continue your coverage under such directors and officers’ liability insurance policies as shall from time to time be in effect for Company officers and employees for not less than six years following your termination of employment.

12.           Should your employment by the Company be terminated, you agree to thereafter cooperate in the truthful and honest prosecution and/or defense of any claim in which the Company or its subsidiaries may have an interest (with the right of reimbursement for reasonable expenses actually incurred), which may include, without limitation, being available to participate in any proceeding involving the Company or its subsidiaries, permitting interviews with representatives of the Company, appearing for depositions and trial testimony, and producing and/or providing any documents or names of other persons with relevant information in your possession or control arising out of your employment in a reasonable time, place, and manner.

13.           This agreement constitutes the entire agreement and understanding between you, the Company, and West Bank with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements, or representations by or between the parties, written or oral, which may have related in any manner to the subject matter hereof.

 

 

  

  

  

 

14.           No provision of this agreement may be modified or waived unless such modification or waiver is agreed to in writing and signed by you and an authorized representative of the Company and West Bank.  No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. Failure by you, the Company, or West Bank to insist upon strict compliance with any provision of this agreement or to assert any right hereunder shall not be deemed to be a waiver of such provision or right or any other provision or right of this agreement.

15.           The interpretation, construction, and performance of this agreement shall be governed by, construed, and enforced in accordance with the internal laws of the state of Iowa without regard to its principles of conflicts of laws.  The invalidity or enforceability of any provision of this agreement shall not affect the validity or enforceability of any of the other provisions of this agreement, which other provisions shall remain in full force and effect.

16.           Please note that the purpose of this agreement is merely to describe the terms of your employment.  This agreement does not create any contract for or right to continued employment for any specific period of time.  Your employment with the Company and West Bank at all times will be “at will.”  This means that you, the Company, or West Bank may end your employment at any time for any or no reason by providing a ninety day written notice of termination.  You agree to faithfully continue your service to the Company and West Bank during the notice period if you terminate your employment.

To indicate your acceptance of the terms of this agreement, please sign this letter in the space below and return it to me.  Both the Board and I look forward to your long and successful service to the Company and West Bank.

	  	
Very truly yours,

	  
	  	  	  
	  	  	  
	  	
/s/ David D. Nelson

	  
	  	
David D. Nelson

	  
	  	
Chief Executive Officer

	  
	  	
West Bancorporation, Inc.

	  

I understand and accept the terms and conditions of my employment with West Bancorporation, Inc. and West Bank as expressed above.

	
By:

	
/s/ Harlee Olafson

	 	
Date:  July 9, 2010

	  
	  	
Harlee Olafsonexhibit101.htm

EXHIBIT 10.1

 

 

AMENDMENT NO. 3 TO CREDIT AGREEMENT 

This Amendment No. 3 to Credit Agreement (this “Amendment”) dated as of May 12, 2010, is made by and among CARMAX AUTO SUPERSTORES, INC., a Virginia corporation (the “Revolving Borrower”), the Subsidiaries of the Company (other than the Revolving Borrower) listed as “Borrowers” on the signature pages hereto (each a “Designated Borrower” and, together with the Revolving Borrower, the “Borrowers” and, each a “Borrower”), CARMAX, INC., a Virginia corporation (the “Company”), the Subsidiaries of the Company listed as “Subsidiary Guarantors” on the signature pages hereto (each a “Subsidiary Guarantor” and collectively, the “Subsidiary Guarantors”), BANK OF AMERICA, N.A., a national banking association organized and existing under the laws of the United States (“Bank of America”), in its capacity as administrative agent for the Lenders (as defined in the Credit Agreement described below) (in such capacity, the “Administrative Agent”), and each Lender party to this Amendment.

 

W I T N E S S E T H:

 

WHEREAS, the Borrowers, the Company, the Administrative Agent, Bank of America, as Swing Line Lender, New Vehicle Swing Line Lender and L/C Issuer, and the Lenders have entered into that certain Credit Agreement dated as of August 24, 2005, as amended by Amendment No. 1 to Credit Agreement and Joinder Agreement dated as of December 8, 2006 and Amendment No. 2 to Credit Agreement and Joinder Agreement dated as of July 17, 2008 (the “Credit Agreement”; capitalized terms used in this Amendment not otherwise defined herein shall have the respective meanings given thereto in the Credit Agreement), pursuant to which the Lenders have made available to the Borrowers a revolving credit facility with letter of credit and swing line subfacilities; and

 

WHEREAS, the Subsidiary Guarantors and the Administrative Agent have entered into that certain Subsidiary Guaranty Agreement dated as of August 24, 2005 pursuant to which the Subsidiary Guarantors have guaranteed the payment and performance of the obligations of the Borrowers under the Credit Agreement and the other Loan Documents; and

 

WHEREAS, the Company and the Administrative Agent have entered into that certain Company Guaranty Agreement dated as of August 24, 2005 pursuant to which the Company has guaranteed the payment and performance of the obligations of the Borrowers under the Credit Agreement and the other Loan Documents; and

 

WHEREAS, the Company and the Borrowers have advised the Administrative Agent and the Lenders that they desire to amend certain provisions of the Credit Agreement to, among other things, amend the definitions of Consolidated Total Liabilities, Consolidated Interest Charges and Excluded Special Purpose Finance Subsidiaries, in each case as more particularly set forth below, and the Administrative Agent and the Lenders parties hereto are willing to effect such amendments on the terms and conditions contained in this Amendment;

 

 

  

  

  

 

NOW, THEREFORE, in consideration of the premises and further valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1. Amendments to Credit Agreement.  Subject to the terms and conditions set forth herein, the Credit Agreement is hereby amended as follows:

 

	
(a)  

	
The existing definition of “Consolidated Total Liabilities” in Section 1.01 is deleted in its entirety and the following is inserted in lieu thereof:

 

“Consolidated Total Liabilities” means, as of any date of determination, for the Company and its Subsidiaries on a consolidated basis, the sum of current liabilities plus long-term liabilities, including contingent liabilities that constitute Indebtedness, liabilities under Synthetic Leases and other Off-Balance Sheet Liabilities, in each case as of such date, but excluding liabilities of (i) any Excluded Special Purpose Finance Subsidiary or (ii) any Person that is neither the Company nor a Subsidiary, which liabilities (in the case of each of clauses (i) and (ii)) arise pursuant to a Permitted Sale Facility.

 

	
(b)  

	
The existing definition of “Consolidated Interest Charges” in Section 1.01 is deleted in its entirety and the following is inserted in lieu thereof:

 

“Consolidated Interest Charges” means, for any period, for the Company and its Subsidiaries on a consolidated basis, the sum of (a) all gross interest expense (without reducing such amount by, or otherwise netting out, any interest income, floorplan assistance, interest credits or other similar income), premium payments, debt discount, fees, charges and related expenses of the Company and its Subsidiaries in connection with borrowed money or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with GAAP, but excluding any such interest or expense of (i) an Excluded Special Purpose Finance Subsidiary or (ii) any Person that is neither the Company nor a Subsidiary, which interest or expense (in the case of each of clauses (i) and (ii)) arises pursuant to a Permitted Sale Facility, and (b) the portion of rent expense of the Company and its Subsidiaries with respect to such period under (i) capital leases that is treated as interest in accordance with GAAP and (ii) Synthetic Lease Obligations that would be treated as interest under GAAP were such leases treated as capital leases.

 

	
(c)  

	
The existing definition of “Excluded Special Purpose Finance Subsidiaries” in Section 1.01 is deleted in its entirety and the following is inserted in lieu thereof:

 

“Excluded Special Purpose Finance Subsidiaries” means, collectively, (a) CarMax Funding II, (b) CarMax Auto Funding LLC, a Delaware limited liability company, (c) CarMax Funding III, LLC, a Delaware limited liability company, (d) CarMax Funding Services, LLC, a Delaware limited liability company, (e) CarMax Funding Services II, LLC, a Delaware limited liability company, and (f) any other special purpose Subsidiary formed to purchase or otherwise acquire retail installment contracts in connection with an existing or proposed Permitted Sale Facility and which does not conduct any business other than in connection with such Permitted Sale Facility.

 

 

  

  

  

 

2. Effectiveness; Conditions Precedent.  The effectiveness of this Amendment and the amendments to the Credit Agreement herein provided are subject to the satisfaction of the following conditions precedent:

 

(a) the Administrative Agent shall have received each of the following documents or instruments in form and substance reasonably acceptable to the Administrative Agent:

 

(i) counterparts of this Amendment, duly executed by the Company, the Administrative Agent, the Borrowers, the Subsidiary Guarantors and Lenders which constitute Required Lenders; and

 

(ii) such other documents, instruments, opinions, certifications, undertakings, further assurances and other matters as the Administrative Agent, the L/C Issuer or any Lender party hereto shall reasonably request; and

 

(b) unless waived by the Administrative Agent, all expenses payable to the Administrative Agent and the Lenders (including the fees and expenses of counsel to the Administrative Agent to the extent invoiced prior to the date hereof) estimated to date shall have been paid in full (without prejudice to final settling of accounts for such fees and expenses).

 

3. Consent of the Subsidiary Guarantors.  Each of the Subsidiary Guarantors hereby consents, acknowledges and agrees to the amendments set forth herein and hereby confirms and ratifies in all respects the Subsidiary Guaranty Agreement (including without limitation the continuation of such Subsidiary Guarantor’s payment and performance obligations thereunder upon and after the effectiveness of this Amendment and the amendments contemplated hereby) and the enforceability of the Subsidiary Guaranty Agreement against such Subsidiary Guarantor in accordance with its terms.

 

4. Consent of the Company.  The Company hereby consents, acknowledges and agrees to the amendments set forth herein and hereby confirms and ratifies in all respects the Company Guaranty Agreement (including without limitation the continuation of the Company’s payment and performance obligations thereunder upon and after the effectiveness of this Amendment and the amendments contemplated hereby) and the enforceability of the Company Guaranty Agreement against the Company in accordance with its terms.

 

 

  

  

  

 

5. Representations and Warranties.  In order to induce the Administrative Agent and the Lenders to enter into this Amendment, each of the Company, the Borrowers and the Subsidiary Guarantors represent and warrant to the Administrative Agent and the Lenders as follows:

 

(a) Before and after giving effect to this Amendment, (A) the representations and warranties of the Company and the Borrowers contained in Article V of the Credit Agreement and the representations and warranties of each Loan Party contained in each other Loan Document are true and correct on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement, and (B) no Default exists;

 

(b) Since the date of the most recent financial reports of the Company and its Subsidiaries delivered pursuant to Section 6.01(a) of the Credit Agreement, there has been no event or circumstance, either individually or in the aggregate, that has had or would reasonably be expected to have a Material Adverse Effect;

 

(c) The Subsidiary Guarantors are the only Persons that are required to be a party to the Subsidiary Guaranty Agreement pursuant to the terms of the Credit Agreement; and

 

(d) This Amendment has been duly authorized, executed and delivered by the Company, each of the Borrowers and each of the Subsidiary Guarantors and constitutes a legal, valid and binding obligation of such parties, except as may be limited by general principles of equity or by the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally.

 

6. Entire Agreement.  This Amendment, together with the Loan Documents (collectively, the “Relevant Documents”), sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and agreements among the parties relating to such subject matter.  No promise, condition, representation or warranty, express or implied, not set forth in the Relevant Documents shall bind any party hereto, and no such party has relied on any such promise, condition, representation or warranty.  Each of the parties hereto acknowledges that, except as otherwise expressly stated in the Relevant Documents, no representations, warranties or commitments, express or implied, have been made by any party to any other party in relation to the subject matter hereof or thereof.  None of the terms or conditions of this Amendment may be changed, modified, waived or canceled orally or otherwise, except in writing and in accordance with Section 10.01 of the Credit Agreement.

 

 

  

  

  

 

7. Full Force and Effect of Agreement.  Except as hereby specifically amended, modified or supplemented, the Credit Agreement and all other Loan Documents are hereby confirmed and ratified in all respects and shall be and remain in full force and effect according to their respective terms.

 

8. Counterparts.  This Amendment may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic means (including .pdf file) shall be effective as a manually executed counterpart of this Amendment.

 

9. Governing Law.  This Amendment shall in all respects be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts executed and to be performed entirely within such State, and shall be further subject to the provisions of Sections 10.14 and 10.15 of the Credit Agreement.

 

10. Enforceability.  Should any one or more of the provisions of this Amendment be determined to be illegal or unenforceable as to one or more of the parties hereto, all other provisions nevertheless shall remain effective and binding on the parties hereto.

 

11. References.  All references in any of the Loan Documents to the “Credit Agreement” shall mean the Credit Agreement, as amended hereby, and as otherwise amended, modified, supplemented or restated from time to time by any other instrument in accordance with the terms thereof.

 

12. Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the Company, the Administrative Agent, the Borrowers, the Subsidiary Guarantors, the Lenders and their respective successors, legal representatives, and assignees to the extent such assignees are permitted assignees as provided in Section 10.06 of the Credit Agreement.

 

[Signature pages follow.]

 

  

  

  

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be made, executed and delivered by their duly authorized officers as of the day and year first above written.

	
COMPANY:

	 
	
CARMAX, INC.

	 
	 By:	
/s/ Thomas W. Reedy

	 Name:	
Thomas W. Reedy

	 Title:	
Senior Vice President and Treasurer

 

	
BORROWERS:

	 
	
CARMAX AUTO SUPERSTORES, INC.

	
CARMAX OF LAUREL, LLC

	
CARMAX AUTO MALL, LLC

	
CARMAX AUTO SUPERSTORES CALIFORNIA, LLC

	 
	 By:	
/s/ Thomas W. Reedy

	 Name:	
Thomas W. Reedy

	 Title:	
Senior Vice President and Treasurer

 

	
SUBSIDIARY GUARANTORS:

	 
	
CARMAX OF LAUREL, LLC

	
CARMAX AUTO MALL, LLC

	
CARMAX AUTO SUPERSTORES CALIFORNIA, LLC

	
CARMAX BUSINESS SERVICES, LLC

	
CARMAX AUTO SUPERSTORES WEST COAST, INC.

	
CARMAX AUTO SUPERSTORES SERVICES, INC.

	
CARMAX PROPERTIES, LLC

	 
	 By:	
/s/ Thomas W. Reedy

	 Name:	
Thomas W. Reedy

	 Title:	
Senior Vice President and Treasurer

  

  

  

	
ADMINISTRATIVE AGENT:

	 
	
BANK OF AMERICA, N.A., as

	
Administrative Agent

	 
	 By:	
/s/ Anne M. Zeschke

	 Name:	
Anne M. Zeschke

	 Title:	
Vice President

  

  

  

 

	
LENDERS:

	 
	
BANK OF AMERICA, N.A., as a Lender, L/C Issuer, Swing Line Lender and New Vehicle Swing Line Lender

	 
	 By:	
/s/ M. Patricia Kay

	 Name:	
M. Patricia Kay

	 Title:	
Senior Vice President

  

  

  

 

	
JPMORGAN CHASE BANK, N.A., as a Lender

	 
	 By:	
/s/ Philip A. Mousin

	 Name:	
Philip A. Mousin

	 Title:	
Senior Vice President

  

  

  

 

	
SUNTRUST BANK, as a Lender

	 
	 By:	
/s/ Robert Maddox

	 Name:	
Robert Maddox

	 Title:	
Director

  

  

  

 

	
TOYOTA MOTOR CREDIT CORPORATION, as a Lender

	 
	 By:	
/s/ Anna Lee

	 Name:	
Anna Lee

	 Title:	
Dealer Credit Manager

  

  

  

 

	
WELLS FARGO BANK, N.A. (including as successor in interest by merger with Wachovia Bank, National Association), as a Lender

	 
	 By:	
/s/ Michael R. Burkitt

	 Name:	
Michael R. Burkitt

	 Title:	
Senior Vice President

  

  

  

 

	
SCOTIABANC INC., as a Lender

	 
	 By:	
/s/ J. F. Todd

	 Name:	
J.F. Todd

	 Title:	
Managing Director

 

 

 

  

  

  

 

	
CREDIT SUISSE, CAYMAN ISLAND BRANCH, as a Lender

	 
	 By:	
/s/ Shaheen Malik

	 Name:	
Shaheen Malik

	 Title:	
Vice President

	  
	 By:	
/s/ Kevin Buddhdew

	 Name:	
Kevin Buddhdew

	 Title:	
Associate

 

 

  

  

  

 

	
ROYAL BANK OF CANADA, as a Lender

	 
	 By:	
/s/ Meredith Majesty

	 Name:	
Meredith Majesty

	 Title:	
Authorized Signatory

 

 

  

  

  

	
U.S. BANK NATIONAL ASSOCIATION, as

	
a Lender

	 
	 By:	
/s/ D.G. Wiwon

	 Name:	
D.G. Wiwon

	 Title:	
Vice President

  

  

  

 

	
FIFTH THIRD BANK, as a Lender

	 
	 By:	
/s/ Randolph J. Stierer

	 Name:	
Randolph J. Stierer

	 Title:	
Vice President

  

  

  

	
COMERICA BANK, as a Lender

	  
	 By:	
/s/ David M. Garbanz

	 Name:	
David M. Garbanz

	 Title:	
SVP

  

  

  

 

	
BANK OF THE WEST, as a Lender

	  
	 By:	
/s/ James E. Chesser

	 Name:	
James E. Chesser

	 Title:	
Vice President

  

  

  

 

	
BARCLAYS BANK PLC, as a Lender

	  
	 By:	
/s/ Craig Malloy

	 Name:	
Craig Malloy

	 Title:	
Director

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