Document:

Exhibit 10.13

 

SECOND AMENDMENT TO EMPLOYMENT
AGREEMENT

 

THIS
SECOND AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”),
is made effective as of November 5, 2010, to the Employment Agreement
dated July 24, 2009, as amended by the First Amendment (the “Employment Agreement”), between
State Bank and Trust Company, a banking corporation organized under the laws of
the State of Georgia (the “Bank”), and
Kim M. Childers, a resident of the State of Georgia (the “Employee”).

 

WHEREAS,
Employee and the Bank entered into the Employment Agreement which provides for
the terms and conditions of the Bank’s employment of Employee;

 

WHEREAS,
Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), and additional
guidance issued thereunder, requires that in order to avoid taxation and
penalties to the Employee, any deferred compensation paid by the Bank to the
Employee must comply with the requirements of Section 409A in form and
operation at all times on and after January 1, 2005; and

 

WHEREAS,
the Bank has administered the Employment Agreement in good faith compliance
with Section 409A, adopted the First Amendment with provisions to comply
with Section 409A, and now wishes to clarify the interpretation and
compliance with Section 409A in the form of an amendment to the Employment
Agreement.

 

NOW
THEREFORE, in consideration of the foregoing and for good and valuable
consideration, the receipt and sufficient of which are hereby acknowledged, the
Bank and Employee hereby agree as follows:

 

1.             Section 1.7.2 of the
Employment Agreement is hereby amended by substituting for subsection (d) and
by inserting a new subsection (e) at the end:

 

“(d)         If the Bank requires, for
any reason whatsoever, that the Employee relocate his work location a material
distance from the Macon, Georgia area, or assume or be assigned
responsibilities that will require the Employee to engage in material levels of
business travel on a regular basis outside of the Macon, Georgia area.

 

(e)           Notwithstanding the
foregoing, Employee must provide written notice to the Bank of the existence of
a condition described in subsections (a), (b), (c) or (d) within 90
days of the initial existence of such condition and Bank shall have 30 days to
remedy the condition before the Bank is required to pay under Section 3.”

 

2.             Section 1.11 of the
Employment Agreement is hereby amended by inserting the following language to
the end of Section 1.11:

 

 

“Notwithstanding
the provisions in this Section 1.11, Permanent Disability for purposes of
this Agreement must also be a disability within the meaning of Code Section 409A(a)(2)(A)(ii) and
409A(a)(2)(C) and Treas. Reg. Section 1.409A-3(a)(2).”

 

3.            Section 3.2.3 of the Employment Agreement is hereby amended by
substituting the section with:

 

“3.2.3     By
the Employee within the period commencing three (3) months prior to and
ending twelve (12) months after a Change in Control (the “Election Period”), provided
that the Employee shall give thirty (30) days’ written notice prior to the end
of the Election Period to the Bank of the Employee’s intention to terminate
this Agreement and shall terminate employment at the end of such 30-day period,
in which event the Bank shall be required to meet its obligations to the
Employee under Section 3.3.2 below.”

 

4.             Section 3.3.1 of the
Employment Agreement is hereby amended by substituting for the second sentence:

 

“In
addition, from the effective date of the termination pursuant to Section 3.2.1(b) or
Section 3.2.2(a), the Bank shall pay a monthly amount, subject to
applicable tax withholding, equal to what would be the Employee’s cost of COBRA
health continuation coverage for the Employee and eligible dependents for the
greater of twelve (12) months or the period during which the Employee and those
eligible dependents are entitled to COBRA health continuation coverage from the
Bank.”

 

5.            Section 3.3.2 of the
Employment Agreement is hereby amended by substituting for the second sentence:

 

“In
addition, from the effective date of the termination pursuant to Section 3.2.3
or Section 3.2.2(a), through the then unexpired portion of the Term (or,
if greater, for a period of twenty-four (24) months following the effective
date of the termination) (the “Severance Period”),
the Bank shall pay a monthly amount, subject to applicable tax withholding,
equal to what would be the Employee’s cost of COBRA health continuation
coverage for the Employee and eligible dependents for the greater of the
Severance Period or the period during which the Employee and those eligible
dependents are entitled to COBRA health continuation coverage from the Bank.”

 

6.            Section 3.3.4 of the
Employment Agreement is hereby amended by substituting the section with:

 

“3.3.4      For purposes of compliance with Code Section 409A:

 

(a)           It is intended that this
Agreement shall comply with the provisions of Code Section 409A and the
Treasury regulations relating thereto, or an exemption to Code Section 409A.  Any payments that qualify for the “short-term
deferral” exception shall be considered as paid first, then any payments that
qualify for the separation pay plan exception shall be considered as paid next,
then payments that qualify for any other exception under Section Code 409A
shall be paid under the applicable exception. 
For 

 

2

 

purposes of the limitations on nonqualified deferred
compensation under Code Section 409A, each payment of compensation under
this Agreement shall be treated as a separate payment of compensation for
purposes of applying the deferral election rules and the exclusion for
certain short-term deferral amounts under Code Section 409A.  All payments to be made upon a termination of
employment under this Agreement that constitute non-qualified deferred
compensation may only be made upon a “separation from service” under Section Code
409A.  In no event may the Employee,
directly or indirectly, designate the calendar year of any payment under this
Agreement.  To the extent permitted under
Code Section 409A or any Internal Revenue Service (“IRS”)
or Treasury rules or other guidance issued thereunder, the Bank may, in
consultation with the Employee, modify the Agreement in order to cause the
provisions of the Agreement to comply with the requirements of Code Section 409A,
so as to avoid the imposition of taxes and penalties on the Employee pursuant
to Code Section 409A.

 

(b)           Notwithstanding anything to
the contrary in this Agreement, all reimbursements and in-kind benefits
provided under this Agreement shall be made or provided in accordance with the
requirements of Code Section 409A, including, where applicable, the
requirement that (i) any reimbursement is for expenses incurred during the
Employee’s lifetime (or during a shorter period of time specified in this
Agreement), (ii) the amount of expenses eligible for reimbursement, or
in-kind benefits provided, during a calendar year may not affect the expenses
eligible for reimbursement, or in- kind benefits to be provided, in any other
calendar year, (iii) the reimbursement of an eligible expense will be made
no later than the last day of the calendar year following the year in which the
expense is incurred and (iv) the right to reimbursement or in-kind
benefits is not subject to liquidation or exchange for another benefit.

 

(c)           Notwithstanding any other
provision of this Agreement to the contrary and if applicable, if the Employee
is considered a “specified employee” for purposes of Code Section 409A (as
determined in accordance with the methodology established by the Bank as in
effect on the date of termination), (i) any payment or other benefit that
constitutes nonqualified deferred compensation within the meaning of Code Section 409A
that is otherwise due to the Employee under this Agreement during the six-month
period following his separation from service (as determined in accordance with
Code Section 409A) on account of his separation from service shall be
accumulated and paid to the Employee on the first business day of the seventh
month following his separation from service (the “Delayed
Payment Date”).  If the
Employee dies during the postponement period, the amounts and entitlements
delayed on account of Code Section 409A shall be paid to the personal
representative of his estate on the first to occur of the Delayed Payment Date
or 30 days after the date of the Employee’s death.”

 

7.             Terms defined in the
Employment Agreement shall have the same meaning herein unless otherwise
defined herein or unless the context clearly requires otherwise.

 

8.             Except as expressly amended
hereby, all terms, provisions, conditions and covenants contained in the
Employment Agreement are not modified by this Amendment and continue in full
force and effect as originally written.

 

3

 

[Signatures Appear on Following Page]

 

IN
WITNESS WHEREOF, the parties have caused this Amendment to be duly executed and
delivered as of the date first written above.

 

	
   

  	
  “BANK”

  
	
   

  	
   

  
	
   

  	
  STATE
  BANK AND TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Joseph W. Evans

  
	
   

  	
  Name:

  	
  Joseph
  W. Evans

  
	
   

  	
  Title:

  	
  Chairman
  and Chief Executive Officer

  
	
   

  	
   

  
	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
  /s/ J. Daniel Speight

  	
   

  	
   

  
	
  Name:

  	
  J.
  Daniel Speight

  	
   

  	
   

  
	
  Title:

  	
  Chief
  Financial Officer and Chief Operating Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “EMPLOYEE”

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Kim M. Childers

  
	
   

  	
  Name:

  	
  Kim
  M. Childers

  

 

4Exhibit 10.14

 

SECOND AMENDMENT TO EMPLOYMENT
AGREEMENT

 

THIS
SECOND AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”),
is made effective as of November 5, 2010, to the Employment Agreement
dated July 24, 2009, as amended by the First Amendment (the “Employment Agreement”), between
State Bank and Trust Company, a banking corporation organized under the laws of
the State of Georgia (the “Bank”), and
J. Daniel Speight, a resident of the State of Georgia (the “Employee”).

 

WHEREAS,
Employee and the Bank entered into the Employment Agreement which provides for
the terms and conditions of the Bank’s employment of Employee;

 

WHEREAS,
Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), and additional
guidance issued thereunder, requires that in order to avoid taxation and
penalties to the Employee, any deferred compensation paid by the Bank to the
Employee must comply with the requirements of Section 409A in form and
operation at all times on and after January 1, 2005; and

 

WHEREAS,
the Bank has administered the Employment Agreement in good faith compliance
with Section 409A, adopted the First Amendment with provisions to comply
with Section 409A, and now wishes to clarify the interpretation and
compliance with Section 409A in the form of an amendment to the Employment
Agreement.

 

NOW
THEREFORE, in consideration of the foregoing and for good and valuable
consideration, the receipt and sufficient of which are hereby acknowledged, the
Bank and Employee hereby agree as follows:

 

1.             Section 1.7.2 of the
Employment Agreement is hereby amended by inserting a new subsection (d) at
the end:

 

“(d)         Notwithstanding the foregoing, Employee
must provide written notice to the Bank of the existence of a condition
described in subsections (a), (b), or (c) within 90 days of the initial
existence of such condition and Bank shall have 30 days to remedy the condition
before the Bank is required to pay under Section 3.”

 

2.             Section 1.11 of the Employment
Agreement is hereby amended by inserting the following language to the end of Section 1.11:

 

“Notwithstanding
the provisions in this Section 1.11, Permanent Disability for purposes of
this Agreement must also be a disability within the meaning of Code Section 409A(a)(2)(A)(ii) and
409A(a)(2)(C) and Treas. Reg. Section 1.409A-3(a)(2).”

 

3.            Section 3.2.3 of the Employment
Agreement is hereby amended by substituting the section with:

 

 

“3.2.3     By the Employee within the period
commencing three (3) months prior to and ending twelve (12) months after a
Change in Control (the “Election
Period”), provided that the Employee shall give thirty (30) days’
written notice prior to the end of the Election Period to the Bank of the
Employee’s intention to terminate this Agreement and shall terminate employment
at the end of such 30-day period, in which event the Bank shall be required to
meet its obligations to the Employee under Section 3.3.2 below.”

 

4.             Section 3.3.1 of the
Employment Agreement is hereby amended by substituting for the second sentence:

 

“In
addition, from the effective date of the termination pursuant to Section 3.2.1(b) or
Section 3.2.2(a), the Bank shall pay a monthly amount, subject to
applicable tax withholding, equal to what would be the Employee’s cost of COBRA
health continuation coverage for the Employee and eligible dependents for the
greater of twelve (12) months or the period during which the Employee and those
eligible dependents are entitled to COBRA health continuation coverage from the
Bank.”

 

5.            Section 3.3.2 of the Employment
Agreement is hereby amended by substituting for the second sentence:

 

“In
addition, from the effective date of the termination pursuant to Section 3.2.3
or Section 3.2.2(a), through the then unexpired portion of the Term (or,
if greater, for a period of twenty-four (24) months following the effective
date of the termination) (the “Severance Period”),
the Bank shall pay a monthly amount, subject to applicable tax withholding,
equal to what would be the Employee’s cost of COBRA health continuation
coverage for the Employee and eligible dependents for the greater of the
Severance Period or the period during which the Employee and those eligible
dependents are entitled to COBRA health continuation coverage from the Bank.”

 

6.            Section 3.3.4 of the Employment
Agreement is hereby amended by substituting the section with:

 

“3.3.4      For
purposes of compliance with Code Section 409A:

 

(a)           It is intended that this Agreement shall comply with the
provisions of Code Section 409A and the Treasury regulations relating
thereto, or an exemption to Code Section 409A.  Any payments that qualify for the “short-term
deferral” exception shall be considered as paid first, then any payments that
qualify for the separation pay plan exception shall be considered as paid next,
then payments that qualify for any other exception under Section Code 409A
shall be paid under the applicable exception. 
For purposes of the limitations on nonqualified deferred compensation
under Code Section 409A, each payment of compensation under this Agreement
shall be treated as a separate payment of compensation for purposes of applying
the deferral election rules and the exclusion for certain short-term
deferral amounts under Code Section 409A. 
All payments to be made upon a termination of employment under this
Agreement that constitute non-qualified deferred compensation may only be made
upon a “separation from service” under Section Code 409A.  In no event may the Employee, directly or 

 

2

 

indirectly, designate the calendar year of any
payment under this Agreement.  To the
extent permitted under Code Section 409A or any Internal Revenue Service (“IRS”) or Treasury rules or
other guidance issued thereunder, the Bank may, in consultation with the
Employee, modify the Agreement in order to cause the provisions of the
Agreement to comply with the requirements of Code Section 409A, so as to
avoid the imposition of taxes and penalties on the Employee pursuant to Code Section 409A.

 

(b)           Notwithstanding anything to the contrary in this
Agreement, all reimbursements and in-kind benefits provided under this
Agreement shall be made or provided in accordance with the requirements of Code
Section 409A, including, where applicable, the requirement that (i) any
reimbursement is for expenses incurred during the Employee’s lifetime (or
during a shorter period of time specified in this Agreement), (ii) the
amount of expenses eligible for reimbursement, or in-kind benefits provided,
during a calendar year may not affect the expenses eligible for reimbursement,
or in- kind benefits to be provided, in any other calendar year, (iii) the
reimbursement of an eligible expense will be made no later than the last day of
the calendar year following the year in which the expense is incurred and (iv) the
right to reimbursement or in-kind benefits is not subject to liquidation or
exchange for another benefit.

 

(c)           Notwithstanding any other provision of this Agreement to
the contrary and if applicable, if the Employee is considered a “specified
employee” for purposes of Code Section 409A (as determined in accordance
with the methodology established by the Bank as in effect on the date of
termination), (i) any payment or other benefit that constitutes
nonqualified deferred compensation within the meaning of Code Section 409A
that is otherwise due to the Employee under this Agreement during the six-month
period following his separation from service (as determined in accordance with
Code Section 409A) on account of his separation from service shall be
accumulated and paid to the Employee on the first business day of the seventh
month following his separation from service (the “Delayed
Payment Date”).  If the
Employee dies during the postponement period, the amounts and entitlements
delayed on account of Code Section 409A shall be paid to the personal
representative of his estate on the first to occur of the Delayed Payment Date
or 30 days after the date of the Employee’s death.”

 

7.             Terms defined in the Employment
Agreement shall have the same meaning herein unless otherwise defined herein or
unless the context clearly requires otherwise.

 

8.             Except as expressly amended hereby,
all terms, provisions, conditions and covenants contained in the Employment
Agreement are not modified by this Amendment and continue in full force and
effect as originally written.

 

[Signatures Appear on Following Page]

 

3

 

IN
WITNESS WHEREOF, the parties have caused this Amendment to be duly executed and
delivered as of the date first written above.

 

	
   

  	
  “BANK”

  
	
   

  	
   

  
	
   

  	
  STATE
  BANK AND TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Joseph W. Evans

  
	
   

  	
  Name:

  	
  Joseph
  W. Evans

  
	
   

  	
  Title:

  	
  Chairman
  and Chief Executive Officer

  
	
   

  	
   

  
	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
  /s/ Kim M. Childers

  	
   

  	
   

  
	
  Name:

  	
  Kim
  M. Childers

  	
   

  	
   

  
	
  Title:

  	
  President
  and Chief Credit Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “EMPLOYEE”

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  J. Daniel Speight

  
	
   

  	
  Name:

  	
  J.
  Daniel Speight

  

 

4

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