Document:

SFG emp agree 1

     Exhibit
      10.1

    

    FIRST
      AMENDMENT TO EMPLOYMENT AGREEMENT

     

    This
      First
      Amendment to Employment Agreement (this “Agreement”)
      made in duplicate originals and effective this 1st day of July, 2000, is
      between
      Summit Financial Group, Inc. (formerly
      known as South Branch Valley Bancorp, Inc.), a West Virginia corporation (the
      “Company”) and
      Ronald Miller
      (“Employee”).

     

    WHEREAS,
      Employee and Company executed an Employment Agreement, effective August 1,
      1998
      (the “Employment Agreement”).

     

    WHEREAS,
      Employee and the Company desire to amend the Employment Agreement to provide
      for
      the waiver of future merit raises by Employee in exchange for the establishment
      of a Supplement Executive Retirement Plan by the Company for the benefit of
      Employee.

     

    NOW
      THEREFORE, in consideration of the mutual promises and covenants made in this
      Agreement, the parties agree as follows:

     

    1. Paragraph
      2
      of the Agreement shall be amended to read as follows:

     

    
      	 	
              2.

            	
              Term.
                The term of this Agreement shall be for three (3) years commencing
                on July
                1, 2000, and ending on June 30, 2003, unless one of the parties terminates
                this Agreement as provided herein. On July 1, 2003, and every three
                years thereafter (the “Anniversary Date”), the Agreement shall renew
                automatically for an additional three years unless either the Board
                of
                Directors of Company or Employee gives contrary written notice to
                the
                other no later than the Anniversary Date. References herein to the
                term of
                this Agreement shall refer both to the initial term and successive
                terms.

            

    

     

    2. Paragraph
      6,
      Subsections A and B of the Agreement shall be amended to read as
      follows:

     

    
      	 	
              A.

            	
              For
                a
                period of three (3) years after Employee’s employment with the Company is
                terminated by Employee for any reason other than Employee’s disability,
                Employee shall not, directly or indirectly, engage in the business
                of
                banking in the City of Winchester or the County of Frederick, Virginia.
                For purposes of this Paragraph 6(A), being engaged in the business
                of
                banking shall mean Employee’s presence or work in a bank office in the
                specified geographic area or Employee’s solicitation of business from
                clients with a primary or principle office in the specified geographic
                area.

            

    

     

    
      	 	
              B.

            	
              During
                Employee’s employment by the Company and for three (3) years after
                Employee’s employment with the Company is terminated by Employee for any
                reason other than Employee’s permanent disability rendering him unable to
                perform the duties of an officer or director of a banking organization,
                Employee shall not, on his own behalf or on behalf of any other person,
                corporation or entity, either directly or indirectly, solicit, induce,
                recruit or cause another person in the employ of the Company or its
                affiliates to terminate his or her employment for the purpose of
                joining,
                associating or becoming an employee with any business which is in
                competition with any business or activity engaged in by the Company
                or its
                affiliates.

            

    

     

    3. Exhibit
      A,
      Subsection A, shall be amended to read as follows:

     

    Base
      Salary.
      Employee’s starting base salary shall be Seventy-five Thousand Dollars ($75,000)
      per year. As of the date that the Virginia Bank opens for business, the base
      salary shall be increased to One Hundred Thousand Dollars ($100,000) per year.
      Effective March 1, 2000, Employee’s base salary shall be $125,000. Employee
      shall be considered for salary increases on the basis of cost of living
      increases, beginning with the year ended December 31, 2000.

     

    4. Exhibit
      A,
      Paragraph B shall be amended to read as follows:

     

    Bonus.
      In
      addition to the base salary provided for herein, beginning at year end 2001,
      Employee shall be eligible for incentive bonuses subject to goals and criteria
      to be determined by the Board of Directors of the Company.

     

    5. In
      consideration of Employee’s
      waiver of
      future merit raises, Company and Employee agree that Company shall establish
      a
      Supplemental Executive Benefit Plan for the benefit of Employee.

     

    6.   Except
      as
      modified by this Agreement, the terms of the Employment Agreement shall remain
      in full force and effect.

     

    IN
      WITNESS
      WHEREOF,
      the
      Company has caused this Agreement to be executed in its corporate name, by
      its
      corporate officer, thereunto duly authorized, and Employee has hereunto set
      his
      hand and seal as of the day and year first written above.

     

                        SUMMIT
      FINANCIAL
      GROUP, INC

     

                       By:
/s/
      H.
      Charles Maddy, III    

                     H.
      Charles Maddy, III

                     President
      and Chief Executive
      Officer

     

                                                          /s/
      Ronald
      Miller

                     
Ronald
      MillerSFG Emp Agree 2

    Exhibit
      10.2

     

    AMENDED
      AND RESTATED EMPLOYMENT
      AGREEMENT

     

    THIS
      AMENDED
      AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) made in duplicate originals
      and effective this 6th day of July, 2004, is between SUMMIT FINANCIAL GROUP,
      INC. (“Summit”), CAPITAL STATE BANK, INC., a West Virginia corporation (the
“Company”), and C. DAVID ROBERTSON (“Employee”).

     

    WHEREAS,
      the
      Company offers the terms and conditions of employment hereinafter set forth
      and
      the Employee has indicated his willingness to accept such terms and conditions
      in consideration of his employment with the Company;

     

    WHEREAS,
      Employee and Company executed an Employment Agreement, effective February 5,
      1999 (the “Employment Agreement”);

     

    WHEREAS,
      Employee and the Company amended the Employment Agreement to provide for the
      waiver of merit raises by Employee in exchange for the establishment of
      supplement executive retirement plan by the Company on behalf of Employee on
      December 12, 2000 (the “First Amendment to Employment Agreement”);
      and

     

    WHEREAS,
      Employee and the Company desire to amend the Employment Agreement to provide
      for
      the changes set forth in the First Amendment to Employment Agreement and to
      provide for (i) renewal of the original term of the Employment Agreement for
      an
      additional five (5) years commencing on July 1, 2004, and (ii) a reduction
      in
      the Employment Agreement’s noncompetition and nonsolicitation clauses from five
      (5) years to three (3) years.

    

    NOW,
      THEREFORE, in consideration of the mutual promises and covenants made in this
      Amended and Restated Agreement, the parties agree as follows:

     

    1. Employment.
      The
      Company hereby employs Employee and Employee hereby accepts employment with
      the
      Company as President and Chief Executive Officer of the Company and member
      of
      the Board of Directors of the Company upon the terms and conditions set forth
      herein effective July 1, 2004, or such earlier date as the parties may mutually
      agree.

     

    2. Term.
      The term
      of this Amended and Restated Agreement shall be for five (5) years, unless
      one
      of the parties terminates this Amended and Restated Agreement as provided
      herein. Upon termination of the original term of the Agreement, the Board of
      Directors of the Company shall review the Agreement at least annually, and
      may,
      with the consent of the Employee, extend this term of employment for additional
      one (1) year term(s), in which case such term shall end one (1) year from the
      date on which it is last renewed.

     

    3. Duties.
      Employee
      shall perform and have all of the duties and responsibilities that may be
      assigned to him from time to time by the Board of Directors of the Company.
      Employee shall devote his best efforts on a full-time basis to the performance
      of such duties.

     

    4. Compensation
      and Benefits.
      During the
      term of employment, the Company agrees to pay Employee a base salary and to
      provide benefits as set forth in Exhibit A, which is attached hereto and
      incorporated herein by reference.

     

    5. Termination
      by the Company or Employee.
      The
      employment of Employee with the Company may be terminated by any one of the
      following means, in which case Employee shall be entitled to such compensation
      as is described below:

     

    
      	 	
              A.

            	
              Mutual
                Agreement.
                The
                Employee’s employment may be terminated by mutual agreement of the parties
                upon such terms and conditions as they may
                agree.

            

    

     

    
      	 	
              B.

            	
              For
                Cause.

            

    

    

    
      	 	
              (1)

            	
              The
                Employee’s employment may be terminated by the Company for cause
                consisting of one or more of the reasons specified in Paragraph 5(B)(2)(a)
                - (e) below; provided, however, that if the cause of termination
                is for a
                reason specified in Paragraph 5(B)(2)(a) below, and if in the reasonable
                judgment of the Board of Directors of the Company the damage incurred
                by
                the Company as a result of Employee’s conduct constituting cause is damage
                of a type that is capable of being substantially reversed and corrected,
                the Company shall give Employee thirty (30) days advance notice of
                the
                Company’s intention to terminate his employment for cause and a reasonable
                opportunity to cure the cause of the possible termination to the
                satisfaction of the Company.

            

    

     

    
      	 	
              (2)

            	
              For
                purposes of this Amended and Restated Agreement, the term “cause” shall be
                defined as follows:

            

    

     

    
      	 	
              (a)

            	
              Employee’s
                negligence, malfeasance or misfeasance in the performance of Employee’s
                duties that can reasonably be expected to have an adverse impact
                upon the
                business and affairs of the Company, including but not limited to
                (i) failure of Employee to ensure the overall quality of the
                Company’s loan portfolio is maintained at a level which is satisfactory to
                the Board of Directors of the Company, and (ii) failure of the
                Employee to ensure that the Company’s loan loss experience remains at a
                level which is satisfactory to the Company’s Board of
                Directors;

            

    

     

    
      	 	
              (b)

            	
              Employee’s
                commission of any act constituting theft, intentional wrongdoing
                or
                fraud;

            

    

     

    
      	 	
              (c)

            	
              The
                conviction of the Employee of a felony criminal offense in either
                state or
                federal court;

            

    

     

    
      	 	
              (d)

            	
              Any
                single act by Employee constituting gross negligence or which causes
                material harm to the reputation, financial condition or property
                of the
                Company; or

            

    

     

    
      	 	
              (e)

            	
              The
                death of Employee during the term of this Amended and Restated Agreement,
                in which event the Company shall pay to the estate of the Employee
                any
                compensation for services rendered but unpaid prior to the Employee’s date
                of death.

            

    

     

    
      	 	
              (3)

            	
              The
                Board of Directors of the Company shall determine, in its sole discretion,
                whether any acts and/or omissions on the part of Employee constitute
                “cause” as defined above. Notwithstanding the foregoing, Employee shall be
                entitled to arbitrate a finding of the Board of Directors of “cause” in
                accordance with Paragraph 9 hereof.

            

    

     

    
      	 	
              (4)

            	
              In
                the
                event that Company terminates Employee’s employment for cause as defined
                above, Employee shall be entitled to be paid his regular salary and
                benefits up to the effective date of the termination, but not any
                additional compensation.

            

    

     

    
      	 	
              C.

            	
              Not
                for Cause.
                Employee’s employment may be terminated by the Company for any reason so
                long as Employee is given thirty (30) days advance written notice
                (or
                payment in lieu thereof). In the event of a termination pursuant
                to this
                subparagraph, Employee shall be entitled to payment from the Company
                equivalent to the base salary compensation set forth in this Amended
                and
                Restated Agreement for the remaining term of the Agreement or severance
                pay equal to six (6) months of base salary payments, whichever is
                greater.

            

    

     

    
      	 	
              D.

            	
              Change
                in Control.
                Exhibit B hereto sets forth the rights and responsibilities of the
                parties
                in the event of a change in control, as defined therein, and is
                incorporated herein by reference.

            

    

     

    6. Noncompetition
      and Nonsolicitation.
      In
      consideration of the covenants set forth herein, including but not limited
      to
      the severance pay set forth in Paragraph 5(E) and Exhibit A, Employee
      agrees as follows:

     

    
      	 	
              A.

            	
              For
                a
                period of three (3) years after Employee’s employment with the Company is
                terminated by Employee for any reason other than Employee’s disability or
                Good Reason (as that term is defined in Exhibit B hereto), Employee
                shall
                not, directly or indirectly, engage in the business of banking in
                the City
                of Charleston or the Counties of Kanawha and Greenbrier, West Virginia,
                or
                in any other county in which the Company has operating offices at
                the time
                of the termination. For purposes of this Paragraph 6(A), being engaged
                in
                the business of banking shall mean Employee’s presence or work in a bank
                office in the specified geographic area or Employee’s solicitation of
                business from clients with a primary or principle office in the specified
                geographic area.

            

    

     

    
      	 	
              B.

            	
              During
                Employee’s employment by the Company and for three (3) years after
                Employee’s employment with the Company is terminated by Employee for any
                reason other than Employee’s disability, Employee shall not, on his own
                behalf or on behalf of any other person, corporation or entity, either
                directly or indirectly, solicit, induce, recruit or cause another
                person
                in the employ of the Company or its affiliates to terminate his or
                her
                employment for the purpose of joining, associating or becoming an
                employee
                with any business which is in competition with any business or activity
                engaged in by the Company or its
                affiliates.

            

    

     

    
      	 	
              C.

            	
              Employee
                further recognizes and acknowledges that in the event of the termination
                of Employee’s employment with the Company for any reason other than
                Employee’s disability, (1) a breach of the obligations and conditions set
                forth herein will irreparably harm and damage the Company; (2) an
                award of
                money damages may not be adequate to remedy such harm; and (3) considering
                Employee’s relevant background, education and experience, Employee
                believes that he will be able to earn a livelihood without violating
                the
                foregoing restrictions. Consequently, Employee agrees that, in the
                event
                that Employee breaches any of the covenants set forth in this Paragraph
                6,
                the Company and/or its affiliates shall be entitled to both a preliminary
                and permanent injunction in order to prevent the continuation of
                such harm
                and to recover money damages, insofar as they can be determined,
                including, without limitation, all costs and attorneys’ fees incurred by
                the Company in enforcing the provisions of this Paragraph 6. Such
                relief
                may be sought notwithstanding the arbitration provision set forth
                in
                Paragraph 10 below.

            

    

     

    7. Definition
      of Disability.
      For
      purposes of the Agreement, the term “disability” shall mean a physical or mental
      condition rendering Employee substantially and permanently unable to perform
      the
      duties of an officer and director of a banking organization.

     

    8. Notices.
      Any notice
      required or permitted to be given under this Amended and Restated Agreement
      shall be sufficient if in writing and sent by registered or certified mail
      listed herein; in the case of Employee, to the following address: 206 Georgetown
      Place, Charleston, West Virginia 25314; in the case of Summit and the Company,
      addressed to H. Charles Maddy, III, in care of Summit Financial Group, Inc.,
      300
      North Main Street, Moorefield, WV 26836.
      Any notice
      sent pursuant to this paragraph shall be effective when deposited in the
      mail.

     

    9. Confidential
      Information.
      Employee
      shall not, during the term of this Amended and Restated Agreement or at any
      time
      thereafter, directly or indirectly, publish or disclose to any person or entity
      any confidential information concerning the assets, business or affairs of
      the
      Company, including but not limited to any trade secrets, financial data,
      employee or customer/client information or organizational
      structure.

     

    10. Arbitration.
      Any dispute
      between the parties arising out of or with respect to this Amended and Restated
      Agreement or any of its provisions or Employee’s employment with the Company
      shall be resolved by the sole and exclusive remedy of binding arbitration.
      Arbitration shall be conducted in Charleston, West Virginia in accordance with
      the rules of the American Arbitration Association (“AAA”). The parties agree to
      select one arbitrator from an AAA employment panel. The arbitration shall be
      conducted in accordance with the West Virginia Rules of Evidence and all
      discovery issues shall be decided by the arbitrator. The arbitrator shall supply
      a written opinion and analysis of the matter submitted for arbitration along
      with the decision. The arbitration decision shall be final and subject to
      enforcement in the local circuit court.

     

    11. Entire
      Agreement.
      This
      Amended and Restated Agreement constitutes the entire Agreement between the
      parties and shall supersede all prior agreements and understandings, both
      written and oral, among the parties with respect to the subject matter hereof,
      and may not be changed or amended except by an instrument in writing to be
      executed by each of the parties hereto.

     

    12. Severability.
      If any
      provision hereof, or any portion of any provision hereof, is held to be invalid,
      illegal or unenforceable, all other provisions shall remain in force and effect
      as if such invalid, illegal or unenforceable provision or portion thereof had
      not been included herein. If any provision or portion of any provision of this
      Amended and Restated Agreement is so broad as to be unenforceable, such
      provision or a portion thereof shall be interpreted to be only so broad as
      is
      enforceable.

     

    13. Headings.
      The
      headings contained in this Amended and Restated Agreement are included for
      convenience or reference only and shall have no effect on the construction,
      meaning or interpretation of this Amended and Restated Agreement.

     

    14. Governing
      Law.
      The laws
      of the State of West Virginia shall govern the interpretation and enforcement
      of
      this Amended and Restated Agreement.

     

    15. Amendments.
      Any
      amendments to the Agreement must be in writing and signed by all parties hereto
      except that extensions of the term of this Amended and Restated Agreement under
      Paragraph 2 above, may be evidenced by minutes of a meeting of the Board of
      Directors.

     

    16. Wavier
      of Breach.
      No
      requirement of this Amended and Restated Agreement may be waived except by
      a
      written document signed by the party adversely affected. A waiver of a breach
      of
      any provision of the Agreement by any party shall not be construed as a waiver
      of subsequent breaches of that provision.

     

    17. Counterparts.
      This
      Amended and Restated Agreement may be executed in counterparts, all of which
      shall be considered one and the same Agreement and each of which shall be deemed
      an original.

     

    IN
      WITNESS
      WHEREOF, the Company and Summit have each caused this Amended and Restated
      Agreement to be executed in its corporate name by its corporate officer
      thereunto duly authorized, and Employee has hereunto set his hand and seal,
      as
      of the day and year first above written:

     

                            SUMMIT
      FINANCIAL
      GROUP, INC.

     

     

                            By: /s/
      H.
      Charles Maddy, III

                            Its: President_____________

    
 

     

                            CAPITAL
      STATE BANK,
      INC.

     

                             By: /s/
      H.
      Charles Maddy, III __   

                          
  Its: Director___________________

     

     

                             /s/
      C.
      David Robertson_______

                       C.
      David
      Robertson

     

    

     

    

     

    
      
        
          

          

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    Exhibit
      A

    Compensation
      and Benefits

     

    
      	
              A.

            	
              Base
                Salary.
                Employee’s base salary shall be $142,700. Upon consummation of the
                proposed consolidation of Capital State Bank, Inc. and Summit Community
                Bank, Inc., Employee’s base salary shall be increased to $170,000.
                Thereafter, Employee’s base salary shall be as mutually agreed upon by
                Employee and Company. Employee shall be considered for salary increases
                on
                    the basis of cost of living increases and increases in responsibility.
                In
                consideration of Employee’s waiver of future merit raises, Summit has
                established a Supplemental Executive Benefit Plan for the benefit
                of
                Employee.

            

    

     

    
      	
              B.

            	
              Bonus.
                In
                addition to the base salary provided for herein, Employee shall be
                eligible for incentive bonuses subject to goals and criteria to be
                determined by the Board of Directors of the
                Company.

            

    

     

    
      	
              C.

            	
              Other
                Compensation.
                The
                Company shall provide the following other compensation to Employee,
                up to
                a maximum of $13,000 per year:

            

    

     

    
      	 	
              (1)

            	
              An
                amount equal to Employee’s monthly country club
                dues.

            

    

     

    
      	 	
              (2)

            	
              An
                amount equal to the premiums on the life insurance policy held by
                Employee
                as of the effective date of this Amended and Restated
                Agreement.

            

    

     

    Employee
      shall be subject to taxation on such other compensation as required by the
      Internal Revenue Code.

     

    
      	
              D.

            	
              Vacation.
                Employee shall be entitled to all paid vacation and holidays and
                other
                paid leave as provided by the Company to other
                employees.

            

    

     

    
      	
              E.

            	
              Fringe
                Benefits.
                The
                Company shall afford to Employee the benefit of retirement plans
                afforded
                to all other Company officers, subject to the terms and conditions
                thereof. In the event that Employee’s health insurance coverage is
                discontinued or becomes unavailable to him for some reason outside
                the
                control of Employee, Employee shall be afforded the opportunity to
                enroll
                in the Company’s health insurance plan; provided, however, that the
                Company may adjust the Other Compensation set forth above in Paragraph
                C
                in an amount equivalent to the cost of Employee’s participation in the
                Company’s health insurance plan.

            

    

     

    
      	
              F.

            	
              Business
                Expenses.
                The
                Company shall reimburse Employee for all reasonable expenses incurred
                by
                Employee in carrying out his duties and responsibilities, including
                but
                not limited to reimbursing civic club organization dues and reasonable
                expenses for customer
                entertainment.

            

    

     

    
      	
              G.

            	
              Automobile.
                The
                Company shall provide Employee with the use of an automobile for
                the
                employee’s business and personal use. The Company shall be responsible for
                expenses associated with the vehicle including but not limited to
                taxes,
                gasoline, licenses, maintenance, repair, insurance and reasonable
                cellular
                phone charges. Employee shall be subject to tax for his personal
                use of
                the vehicle in accordance with the Internal Revenue Code and any
                applicable state law. Upon approval of the Company, appropriate
                replacement vehicles may be provided in the
                future.

            

    

     

    
      	
              H.

            	
              Director’s
                Fees.
                The
                Company shall pay Employee the same director’s fees as are provided to
                other inside officer members of the Board of
                Directors.

            

    

     

    

    
      
        
          

          

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    Exhibit
      B

    Change
      in Control Agreement

     

    
      	
              A.

            	
              Definitions.
                For
                purposes of this Exhibit B, the following definitions shall
                apply:

            

    

     

    (1) “Change
      of
      Control” means

     

    
      	 	
              (a)

            	
              a
                change of ownership of the Company that would have to be reported
                to the
                Securities and Exchange Commission as a Change of Control, including
                but
                not limited to the acquisition by any “person” and/or entity as defined by
                securities regulations and law, of direct or indirect “beneficial
                ownership” as defined, of twenty-five percent (25%) or more of the
                combined voting power of the Company’s then outstanding securities;
                or

            

    

     

    
      	 	
              (b)

            	
              the
                failure during any period of three (3) consecutive years of individuals
                who at the beginning of such period constitute the Board for any
                reason to
                constitute at least a majority thereof, unless the election of each
                director who was not a director at the beginning of such period has
                been
                approved in advance by directors representing at least two-thirds
                (2/3) of
                the directors at the beginning of the period;
                or

            

    

     

    
      	 	
              (c)

            	
              the
                consummation of a “Business Combination” as defined in the company’s
                Articles of Incorporation.

            

    

     

    
      	 	
              (2)

            	
              “Company”
                shall mean Summit Financial Group,
                Inc.

            

    

     

    
      	 	
              (3)

            	
              “Salary”
                means the greater of the initial base salary or the average of Employee’s
                full earnings reported on IRS Form W-2 for the two full year periods
                immediately prior to the date of the consummation of the Change of
                Control
                or for the two full year periods immediately preceding the Date of
                Termination, whichever is greater.

            

    

     

    
      	 	
              (4)

            	
              For
                purposes of this Exhibit B, “Good Cause” has the same meaning as the term
                “cause” set forth in Paragraph 5(B)(2) of the foregoing Employment
                Agreement.

            

    

     

    
      	 	
              (5)

            	
              “Disability”
                means a physical or mental condition rendering Employee substantially
                unable to perform the duties of an officer and director of a banking
                organization.

            

    

     

    
      	 	
              (6)

            	
              “Retirement”
                means termination of employment by Employee in accordance with Company’s
                (or its successor’s) retirement plan, including early retirement as
                approved by the Board of Directors.

            

    

     

    
      	 	
              (7)

            	
              “Good
                Reason” means

            

    

     

    
      	 	
              (a)

            	
              A
                Change of Control in the Company (as defined above)
                and:

            

    

    
      	 	
              (i)

            	
              a
                decrease in Employee’s Salary below its level in effect immediately prior
                to the date of consummation of the Change of Control, without Employee’s
                prior written consent; or

            

    

    
      	 	
              (ii)

            	
              a
                material reduction in the importance of Employee’s job responsibilities or
                assignment of job responsibilities inconsistent with employee’s
                responsibility prior to the Change in Control without Employee’s prior
                written consent; or

            

    

    
      	 	
              (iii)

            	
              a
                geographical relocation of Employee to an office more than 20 miles
                from
                Employee’s location at the time of the Change of Control or the imposition
                of travel requirements inconsistent with those existing prior to
                the
                Change in Control without Employee’s prior written consent;
                or

            

    

     

    
      	 	
              (b)

            	
              Failure
                of the Company to obtain assumption of this Change in Control Agreement
                by
                its successor as required by Paragraph E(1) below;
                or

            

    

     

    
      	 	
              (c)

            	
              Any
                removal of Employee from, or failure to re-elect Employee to any
                of
                Employee’s position with Company immediately prior to a Change in Control
                (except in connection with the termination of Employee’s employment for
                Good Cause, death, Disability or Retirement) without Employee’s prior
                consent.

            

    

     

    
      	 	
              (8)

            	
              “Wrongful
                Termination” means termination of Employee’s employment by the Company or
                its affiliates for any reason other than at Employee’s option, Good Cause
                or the death, Disability or Retirement of Employee prior to the expiration
                of eighteen (18) months after consummation of the Change of
                Control.

            

    

     

    
      	
              B.

            	
              Compensation
                of Employee Upon Termination for Good Reason or Wrongful Termination
                within Eighteen (18) Months of a Change in Control.
                Except as hereinafter provided, if Employee terminates his employment
                with
                the Company for Good Reason or the Company terminates Employee’s
                employment in a manner constituting Wrongful Termination, the Company
                agrees as follows:

            

    

     

    
      	 	
              (1)

            	
              The
                Company shall pay Employee a cash payment equal to Employee’s Salary, on a
                monthly basis, multiplied by the number of months between the Date
                of
                Termination and the date that is eighteen (18) months after the date
                of
                consummation of the Change of
                Control.

            

    

     

    
      	 	
              (2)

            	
              For
                the year in which termination occurs, Employee will be entitled to
                receive
                his reasonable share of the Company’s cash bonuses, if any, allocated in
                accordance with existing principles and authorized by the Board of
                Directors. The amount of Employee’s cash incentive award shall not be
                reduced due to Employee not being actively employed for the full
                year.

            

    

     

    
      	 	
              (3)

            	
              Employee
                will continue to participate, without discrimination, for the number
                of
                months between the Date of Termination and the date that is eighteen
                (18)
                months after the date of the consummation of the Change of Control
                in
                benefit plans (such as retirement, disability and medical insurance)
                maintained after any Change of Control for employees, in general,
                of the
                Company, or any successor organization, provided Employee’s continued
                participation is possible under the general terms and conditions
                of such
                plans. In the event Employee’s participation in any such plan is barred,
                the Company shall arrange to provide Employee with benefits substantially
                similar to those which Employee would have been entitled had his
                participation not been barred. However, in no event will Employee
                receive
                from the Company the employee benefits contemplated by this subparagraph
                if Employee receives comparable benefits from any other
                source.

            

    

     

    
      	 	
              (4)

            	
              Paragraph
                6 (Noncompetition and Nonsolicitation) of the foregoing Agreement
                shall
                not apply.

            

    

     

    
      	
              C.

            	
              Other
                Employment.
                Employee shall not be required to mitigate the amount of any payment
                provided for in this Change in Control Agreement by seeking other
                employment. The amount of any payment provided for in this Change
                in
                Control Agreement shall not be reduced by any compensation earned
                or
                benefits provided (except as set forth in Paragraph B(3) above) as
                the
                result of employment by another employer after the Date of
                Termination.

            

    

     

    
      	
              D.

            	
              Rights
                of Company Prior to the Change of Control.
                This
                Change in Control Agreement shall not effect the right of the Company
                or
                Employee to terminate the foregoing Agreement or the employment of
                Employee in accordance thereof; provided, however, that any termination
                or
                reduction in salary or benefits that takes place after discussions
                have
                commenced that result in a Change in Control shall be presumed (without
                clear and convincing evidence to the contrary) to be a violation
                of this
                Change in Control Agreement entitling Employee to the benefits hereof,
                so
                that any termination by Company shall be deemed to be a wrongful
                termination, and all references in this Change in Control Agreement
                to
                Salary shall be deemed to mean the Salary, as defined herein, based
                on the
                earnings Employee would have had prior to any reduction
                thereof.

            

    

     

    
      	
              E.

            	
              Successors;
                Binding Agreement.

            

    

     

    
      	 	
              (1)

            	
              The
                Company shall require any successor (whether direct or indirect,
                by
                purchase, merger, consolidation or otherwise) to all or substantially
                all
                of the business and/or assets of the Company, by agreement in form
                and
                substance satisfactory to Employee, to expressly assume and agree
                to
                perform this Change in Control Agreement. Failure of the Company
                to obtain
                such agreement prior to the effectiveness of any such succession
                shall be
                a breach of the this Change in Control Agreement and shall entitle
                Employee to compensation from the Company in the same amount and
                on the
                same terms as he would be entitled to hereunder if he terminated
                his
                employment for Good Reason
                hereunder.

            

    

     

    
      	 	
              (2)

            	
              This
                Change in Control Agreement and all rights of Employee hereunder
                shall
                inure to the benefit of and be enforceable by Employee’s personal or legal
                representatives, executors, administrators, successors, heirs,
                distributees, devisees, and legatees. If Employee should die while
                any
                amounts would still be payable to him hereunder if he had continued
                to
                live, all such amounts, unless otherwise provided herein, shall be
                paid in
                accordance with the terms of this Amended and Restated Agreement
                to
                Employee’s devisee, legatee, or other designee or, if there be no such
                designee, to Employee’s estate.

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