Document:

CFFN-STPP063015-EX1010

CAPITOL FEDERAL® FINANCIAL, INC.

SHORT TERM PERFORMANCE PLAN

OCTOBER 1, 2015

CAPITOL FEDERAL FINANCIAL, INC.

SHORT TERM PERFORMANCE PLAN

Table of Contents

	
			
	 
	Page
	

	ARTICLE 1 – PURPOSE AND TERM OF PLAN
	1
	

	ARTICLE 2 – DEFINITIONS
	1
	

	ARTICLE 3 – ELIGIBILITY
	5
	

	ARTICLE 4 – PLAN ADMINISTRATOR
	5
	

	ARTICLE 5 – FORM AND DETERMINATION OF AWARDS
	7
	

	ARTICLE 6 – PAYMENT OF AWARDS
	10
	

	ARTICLE 7 – CHANGE IN CONTROL
	12
	

	ARTICLE 8 – MISCELLANEOUS
	13
	

-i-

CAPITOL FEDERAL FINANCIAL, Inc.

Short Term Performance Plan

W I T N E S S E T H: That;

WHEREAS, the Company desires to provide motivation to Officers of the Company to put forth maximum efforts toward the continued growth, profitability, and success of the Company by offering cash bonus incentives to such individuals on the terms and conditions set forth herein; and

WHEREAS, the Committee has reviewed the terms and provisions hereof and approved the Plan, and such action by the Committee has been ratified by the Board. 

NOW, THEREFORE, the Company hereby adopts the Plan on the terms and conditions set forth herein, which Plan shall be known as the "Capitol Federal Financial, Inc. Short Term Performance Plan." 

ARTICLE 1 – PURPOSE AND TERM OF PLAN

1.1    Purpose.  The purpose of the Plan is to provide motivation to selected Officers of Capitol Federal Financial, Inc. (including any successor thereto, "CFF") and Capitol Federal Savings Bank (including any successor thereto, the "Bank," and collectively with CFF, the "Company") to put forth maximum effort toward the continued growth, profitability, and success of the Company by providing cash bonus incentives to such employees.  Toward this objective, the Committee may grant Performance Awards, in the form of cash bonus payments, to Company Employees classified as Officers on the terms and subject to the conditions set forth in the Plan.

1.2    Term.  The Plan shall become effective as of October 1, 2015.  Awards shall not be granted pursuant to the Plan after September 30, 2020, except that the Committee may grant Awards after such date in recognition of performance prior to such date. 

ARTICLE 2 – DEFINITIONS

2.1    "Approved Reason" means a reason for terminating employment with the Company which, in the opinion of the Committee, is in the best interest of the Company.

2.2    "Award" or "Performance Award" means a lump sum cash payment granted under the Plan to a Participant by the Committee pursuant to such terms, conditions, restrictions, and/or limitations, if any, as the Committee may establish.

2.3    "Award Payment Date" means, for a Performance Year, the date the Awards for such Performance Year shall be paid to Participants.  The Award Payment Date for 

	
			
	 
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each Performance Year shall occur as soon as administratively possible following the completion of the Committee's determinations pursuant to Section 6.3, but in no event later than January 15th following the end of such Performance Year.

2.4    "Average Basic Shares Outstanding" means the average basic shares of CFF common stock outstanding during a Performance Year.  

2.5    "Average Equity" means the sum of CFF's total stockholders' equity at the beginning of a Performance Year and at each month end during such year, divided by 13.

2.6    "Board" means the Board of Directors of CFF.

2.7    "Cause" means:

		
	(a)
	the willful and continued failure by an Employee to substantially perform his or her duties with his or her employer after written warnings identifying the lack of substantial performance are delivered to the Employee by his or her employer to specifically identify the manner in which the employer believes that the Employee has not substantially performed his or her duties, or

		
	(b)
	the willful engaging by an Employee in illegal conduct which is materially and demonstrably injurious to CFF or a Subsidiary.

2.8    "Change In Control" means the occurrence of any of the following three events: (i) any third person, including a "group" as defined in Section 13(d)(3) of the Exchange Act, shall become the beneficial owner of shares of CFF with respect to which 25% or more of the total number of votes for the election of the Board may be cast, (ii) as a result of, or in connection with, any cash tender offer, merger or other business combination, sale of assets or contested election, or combination of the foregoing, the persons who were Directors of CFF shall cease to constitute a majority of the Board, or (iii) the stockholders of CFF shall approve an agreement providing either for a transaction in which CFF will cease to be an independent publicly-owned corporation (whether in stand alone or mutual holding company form) or for a sale or other disposition of all or substantially all of the assets of CFF.
 
2.9    "Committee" means the Compensation Committee of the Board, or such other Board committee as may be designated by the Board to administer the Plan; provided, however, that the Committee shall consist of three or more Directors, each of whom is a "Non-Employee Director" within the meaning of Rule 16b-3 under the Exchange Act, or any successor definition adopted.

2.10    "Compensation" means all wages for federal income tax withholding purposes as defined under Code § 3401(a) (for purposes of income tax withholding at the source), disregarding any rules limiting the remuneration included as wages based on the nature or location of the employment or the services performed; provided, however, that 

	
			
	 
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the term Compensation shall not include (i) any ordinary or extra ordinary bonus or bonuses paid by the Company, or (ii) wages attributable to property transferred to an individual in exchange for the performance of services (including, but not necessarily limited to, restricted stock and stock options) where such transfer was in the nature of a bonus or supplemental compensation, or (iii) dividends on unvested shares of restricted stock.  The amount of an individual's Compensation shall be determined by the Committee, in its Sole Discretion. 

2.11    "Director" means a member of the Board.

2.12    "Disability" means a disability under the terms of any long-term disability plan maintained by the Company.

2.13    "Earnings Per Share - Basic" ("EPS-B") means Net Income for the Performance Year divided by Average Basic Shares Outstanding for the Performance Year.  

2.14    "Efficiency Ratio" ("ER") means, in the context of determining an IPC, CFF's consolidated noninterest expense for the Performance Year divided by CFF's consolidated net interest and dividend income before provision expense and noninterest income for the Performance Year.

2.15    "Employee" means a common law employee of the Company paid from the Company payroll account.

2.16    "Exchange Act" means the Securities and Exchange Act of 1934, as amended from time to time, including rules thereunder and successor provisions and rules thereto.

2.17    "Negative Discretion" means the discretion authorized by the Plan to be applied by the Committee in determining the size of an Award if, in the Committee's sole judgment, such application is appropriate.  Negative Discretion may only be used by the Committee to eliminate or reduce the size of an Award.  By way of example and not by way of limitation, in no event shall any discretionary authority granted to the Committee by the Plan, including, but not limited to Negative Discretion, be used to: (a) grant Awards if the Performance Goals for such year have not been attained, or (b) increase an Award above the maximum amount payable under the Plan.

2.18    "Net Income" means CFF's consolidated net income for a Performance Year as determined in accordance with accounting principles generally accepted in the United States.  

2.19    "Officer" means only those certain salaried Employees of the Company who are administrative executives in continuous service with the Company employed by the Company in one of the following job classifications: Chairman, Chief Executive Officer, 

	
			
	 
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President, Executive Vice-President, Senior Vice-President, First Vice-President, Vice-President, Assistant Vice-President, and Assistant Cashier.

2.20    "Participant" means a common law Employee paid from the Company payroll account who the Company has designated in writing as an Officer to whom an Award has been granted by the Committee under the Plan.

2.21    "Performance Criteria" means the Institutional Performance Criteria and Personal Performance Criteria which the Committee shall use to establish Performance Targets for each Officer for each Performance Year as more fully described in section 5.3.  Institutional Performance Criteria ("IPCs") shall be established for each Performance Year by equally weighting the Company's target Return On Average Equity (ROAE), Earnings Per Share - Basic (EPS-B), and Efficiency Ratio (ER).  Personal Performance Criteria ("PPCs") shall be established within the first 90 days of a Performance Year and PPC points may be divided between one or more criteria.  Such criteria shall be established by the Participant's supervisor or the Committee as appropriate.  PPC criteria must be in writing for any officer with PPC points greater than 10 points (See section 5.4 Performance Points).

2.22    "Performance Year" means the fiscal year of the Company ending each September 30th over which the attainment of one or more Performance Targets will be measured for the purpose of determining a Participant's right to and the payment of an Award.

2.23    "Performance Targets" means, for a Performance Year, the goals established by the Committee for the Performance Year based upon the Performance Criteria.  The Committee is authorized at any time during the first 90 days of a Performance Year, or at any time thereafter, in its Sole Discretion, to adjust or modify the Performance Target for such Performance Year in order to prevent the dilution or enlargement of the rights of Participants:

		
	(a)
	in the event of, or in anticipation of, any unusual or extraordinary corporate item, transaction, event or development; 

		
	(b)
	in recognition of, or in anticipation of, any other unusual or nonrecurring events affecting the Company, or the financial statements of the Company, or in response to, or in anticipation of, changes in applicable laws, regulations, accounting principles, or business conditions; and 

		
	(c)
	in view of the Committee's assessment of the business strategy of the Company, performance of comparable organizations, economic and business conditions, and any other circumstances deemed relevant.

2.24    "Plan" means the Capitol Federal Financial, Inc. Short Term Performance Plan.

	
			
	 
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2.25    "Retirement" means, for all Plan purposes other than the Plan's change of control provision, a termination of employment, other than for Cause, from the Company on or after attainment of age 65.

2.26    "Return On Average Equity" ("ROAE") means Net Income for the Performance Year divided by Average Equity for the Performance Year.

2.27    "Sole Discretion" means the right and power to decide a matter, which may be exercised arbitrarily at any time and from time to time.

2.28    "Subsidiary" means a corporation or other business entity in which CFF directly or indirectly has an ownership interest of 80 percent or more.

ARTICLE 3 – ELIGIBILITY

3.1    Eligibility.  All Company Officers are eligible to participate in the Plan.  Subject to Section 6.6, the Committee shall, in its Sole Discretion, designate within the first 90 days of a Performance Period which Officers will be Participants for such Performance Period.  However, the fact that an Officer is a Participant for a Performance Period shall not in any manner entitle such Participant to receive an Award for the period.  The determination as to whether or not such Participant shall be paid an Award for such Performance Period shall be decided solely in accordance with the provisions of Articles 5 and 6 hereof.

ARTICLE 4 – PLAN ADMINISTRATOR

4.1     Responsibility.  The Committee shall have total and exclusive responsibility to control, operate, manage, and administer the Plan in accordance with its terms.

4.2    Authority of the Committee.  The Committee shall have all the authority that may be necessary or helpful to enable it to discharge its responsibilities with respect to the Plan.  Without limiting the generality of the preceding sentence, the Committee shall have the exclusive right to: 

		
	(a)
	make discretionary interpretations regarding the terms of the Plan; 

		
	(b)
	determine eligibility for participation in the Plan; 

		
	(c)
	decide all questions concerning eligibility for and the amount of Awards payable under the Plan; 

		
	(d)
	construe any ambiguous provision of the Plan; 

		
	(e)
	correct any default; 

	
			
	 
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	(f)
	supply any omission; 

		
	(g)
	reconcile any inconsistency; 

		
	(h)
	issue administrative guidelines as an aid to administer the Plan and make changes in such guidelines as it from time to time deems proper; 

		
	(i)
	make regulations for carrying out the Plan and make changes in such regulations as it from time to time deems proper; 

		
	(j)
	to the extent permitted under the Plan, grant waivers of Plan terms, conditions, restrictions, and limitations; 

		
	(k)
	accelerate the payment of an Award when such action or actions would be in the best interest of the Company; 

		
	(l)
	establish and administer the Performance Targets and certify whether, and to what extent, they have been attained; and 

		
	(m)
	take any and all other action it deems necessary or advisable for the proper operation or administration of the Plan.

4.3    Discretionary Authority.  The Committee shall have full discretionary authority in all matters related to the discharge of its responsibilities and the exercise of its authority under the Plan including, without limitation, its construction of the terms of the Plan and its determination of eligibility for participation and Awards under the Plan.  It is the intent of the Plan that the decisions of the Committee and its action with respect to the Plan shall be final, binding, and conclusive upon all persons having or claiming to have any right or interest in or under the Plan.

4.4    Action by the Committee.  The Committee may act only by a majority of its members.  Any determination of the Committee may be made, without a meeting, by a writing or writings signed by all of the members of the Committee.  In addition, the Committee may authorize any one or more of its number to execute and deliver documents on behalf of the Committee.

4.5    Delegation of Authority.  The Committee may delegate some or all of its authority under the Plan to any person or persons provided that any such delegation be in writing; provided, however, that only the Committee may select and grant Awards to Participants who are subject to Section 16 of the Exchange Act.

	
			
	 
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ARTICLE 5 – FORM AND DETERMINATION OF AWARDS 

5.1    Form.  All Performance Awards paid pursuant to the terms of this Plan shall be cash lump sums paid as bonus compensation.

5.2.    Procedure for Determining Awards.  The procedure for establishing IPCs and PPCs and the procedure for determining Performance Targets and actual Awards for a Performance Year shall be as follows:

		
	(a)
	Within the first ninety (90) days of a Performance Year the Committee shall:

		
	(1)
	Establish Performance Targets for each of the three IPCs, pursuant to Section 5.3.

		
	(2)
	Establish a minimum performance measure ("Minimum Performance Measure") for each IPC pursuant to Section 5.3.

		
	(3)
	Further establish a maximum performance measure ("Maximum Performance Measure") for each IPC pursuant to Section 5.3.

		
	(4)
	Create a Target Scale and an Award Scale, pursuant to Section 5.3.

		
	(5)
	Establish individual PPC goals 

		
	(b)
	Within ninety (90) days following the end of a Performance Year, the Committee shall:

		
	(1)
	Review overall Company profitability for the Performance Year and consider possible exercise of Negative Discretion.

		
	(2)
	Determine percentage of Target Level actually achieved for each IPC.

		
	(3)
	Determine PPCs achieved.

		
	(4)
	Calculate individual Officer Awards pursuant to Section 5.5.

Upon completion of this process, any Awards earned for the Performance Year shall be paid in accordance with Article 6.

5.3     Determination of IPC Performance Targets and Restrictions on            Payments of IPC and PPC Awards

		
	(a)
	Determination of IPC Performance Targets - During the first ninety (90) days of a Performance Year, the Committee shall establish Performance Targets for all three IPCs based upon information provided by Company senior management, which may include internal forecasts for the Company and the forecasts of outside analysts.  The Committee shall then establish 

	
			
	 
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two scales for each Performance Target.  The Target Scale shall include increments between the Target and the Maximum Performance Measure and decrements between the Target and Minimum Performance Measure for each IPC.  The Award Scale shall co-relate to the Target Scale and shall proceed at one percent (1%) increments beginning at twenty percent (20%) in correspondence to Minimum Performance Measure on the Target Scale through sixty percent (60%), which shall correspond to one hundred percent (100%) on the Target Scale, up to one hundred percent (100%) on the Award Scale, which shall correspond to the Maximum Performance Measure on the Target Scale.

		
	(b)
	Restriction on Payment of IPC Performance Awards – No IPC awards will be paid in the event the Company incurs a net loss for the fiscal year.  Additionally, in order to pay any IPC Award achieved above the Target IPC, the Committee must compare the Company's Actual Net Income less Target Net Income to the Calculated IPC Award less the Target IPC award amount.  

		
	(i)
	If the Company's Actual Net Income less Target Net Income is at least five (5) times greater than the difference between the Calculated IPC Award less the Target IPC award, the payout will be the Calculated IPC Award amount.

		
	(ii)
	If the Company's Actual Net Income less Target Net Income is negative, the Committee shall exercise its Negative Discretion and calculate Awards only up to the Target IPC award level.  

		
	(iii)
	If the Company's Actual Net Income less Target Net Income is less than five (5) times greater than the difference between the Calculated IPC Award less the Target IPC award but greater than zero, the Committee shall exercise its Negative Discretion and calculate the IPC Awards as follows:

(Target IPC award amount) + ((Actual Net Income less Target Net Income)/ divided by 5).  

		
	(c)
	Restriction on Payment of PPC Performance Awards – PPC awards shall be awarded based on the performance achieved except that no PPC awards will be paid in the event the Company incurs a net loss for the fiscal year.  

	
			
	 
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5.4    Performance Points.  For the purpose of calculating overall achievement with regard to the various Performance Targets, the Committee shall assign one hundred (100) points to each Participant.  IPCs and PPCs shall be given the relative number of points for each Officer level as follows:
	
			
	 
	Institutional
	Personal

	Officer Level
	Performance Criteria
	Performance Criteria

	 
	 
	 

	Chairman
	90 points
	10 points

	Chief Executive Officer
	90 points
	10 points

	President
	90 points
	10 points

	Executive Vice-President
	90 points
	10 points

	Senior Vice-President
	90 points
	10 points

	First Vice-President
	90 points
	10 points

For Officer titles of Vice President, Assistant Vice President and Assistant Cashier, their point total will be composed of either IPC of 90 and PPC of 10 or IPC of 50 and PPC of 50, set at the discretion of the Executive Vice President for their division. If the point total is split IPC of 50 and PPC of 50, the PPC criteria must be established in writing within the first 90 days of a Performance Year (see section 2.21 Performance Criteria). This determination will be set by September 30 of the Company fiscal year immediately preceding the Performance Year.  If no determination is submitted to the Human Resources Director, it will remain the same as the prior year's determination.    

5.5    Maximum Amount of Awards.   No Officer may receive an Award in an amount exceeding the maximum amount for his or her Officer classification as calculated under this Section.  

		
	(a)
	Calculation of the maximum amount for each classification shall be based upon the stated Compensation payable to the Officer as of the September 30th of the Company fiscal year immediately preceding the Performance Year multiplied by the following percentages as applicable:

	
		
	 
	Percentage of Compensation

	Officer Level
	Taken into Account

	 
	 

	Chairman
	60%

	Chief Executive Officer
	60%

	President
	50%

	Executive Vice-President
	40%

	Senior Vice-President
	35%

	First Vice-President
	30%

	Vice-President
	25%

	Assistant Vice-President
	25%

	Assistant Cashier
	25%

	
			
	 
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In the case of a newly elected or appointed Officer, Compensation shall be determined based upon stated Compensation for such Officer at the date of election or appointment as provided in Section 6.6.  For individuals holding multiple officer levels, the officer level with the highest percentage will be used in the calculation.
		
	(b)
	For participants who receive a promotion or demotion during a performance period, which results in a change in Officer title, the Participant's Award shall be calculated based upon the number of months in each Officer Level, on a pro rata basis of the Performance Year, based upon the corresponding Percentage of Compensation of the Officer's Compensation at the beginning of the period in each Officer Level.  The change in Officer Level will be effective, for purposes of this calculation, beginning the first day of the month following the change in Officer Level.  These pro rata Awards will be combined to determine the maximum Award eligibility.  The Award total will then be calculated in accordance with section 5.6.  Adjustments to the maximum Award eligibility will not be made based upon any other salary changes.

5.6    Calculation of Awards.  Actual Awards shall be calculated by first converting the Performance Points described in Section 5.4 into percentages and allocating the maximum Award between the IPC percentage and the PPC percentage.  The amount allocable to the IPC percentage shall be divided by the number of IPCs (3).  In the event an IPC is within the Minimum and Maximum Performance Measure on the Target Scale, the applicable percentage from the Award Scale shall be applied to the dollar amount assigned to such IPC.  If a Performance for an IPC does not reach the Target Scale, the dollar amount allocated to such IPC shall be zero.  A similar process shall be followed to determine whether PPCs have been achieved; provided, however, that determinations of PPC goal achievement may or may not be based upon the Target Scale.  Notwithstanding anything set forth herein to the contrary, no Award may be calculated for Performance above the Maximum Performance level on the Target Scale.

ARTICLE 6 – PAYMENT OF AWARDS

6.1    Condition of Receipt of Awards.  Except as provided in Section 6.9, a Participant must be employed by the Company on the last day of a Performance Year to be eligible for an Award for such Performance Year.

6.2    Limitation.  A Participant shall be eligible to receive an Award for a Performance Year only if at least some of the Performance Targets for such Year are achieved.

6.3    Certification.  Following the completion of a Performance Year, the Committee shall meet to review and certify in writing whether, and to what extent, the Performance Targets for the Performance Year have been achieved.  If the Committee certifies that the Performance Targets have been achieved, it shall, based upon application of the provisions of Article 5 of this Plan, determine the maximum amount of each 

	
			
	 
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Participant's Award for the Performance Year.  The Committee shall then determine the actual size of each Participant's Award for the Performance Year. 

6.4    Negative Discretion.  In determining the actual size of an individual Award to be paid for the Performance Year, the Committee may, through the use of Negative Discretion, reduce or eliminate the amount of the Award for the Performance Year, if in its Sole Discretion, such reduction or elimination is appropriate.

6.5    Timing of Award Payments.  The Awards granted by the Committee for a Performance Year shall be paid to Participants on the Award Payment Date for such Performance Year.

6.6    New Participants.  Qualified Officers who are employed by the Company after the Committee's selection of Participants for the Performance Year, shall, in the event Awards are paid for the Performance Year, only be entitled to a pro rata Award.  The amount of the pro rata Award shall be determined by multiplying the Award the Participant would have otherwise been paid if he or she had been a Participant for the entire Performance Year by a fraction the numerator of which is the number of full months he or she was eligible to participate in the Plan during the Performance Year and the denominator of which is twelve (12).  For purposes of this calculation, only full months of service shall be considered.

6.7    Termination of Employment.  If a Participant's employment with the Company terminates for a reason other than death, Disability, Retirement, or any Approved Reason, all unpaid Awards, including, but not by way of limitation, Awards earned but not yet paid, shall be canceled or forfeited.  The Committee shall have the authority to promulgate rules and regulations to determine the treatment of an Award under the Plan in the event of the Participant's death, Disability, Retirement, or termination for an Approved Reason.

6.8    Noncompetition.  A Participant shall forfeit all unpaid Awards, including, but not by way of limitation, Awards earned but not yet paid, if, (i) in the opinion of the Committee, the Participant, without the prior written consent of the Company, engages directly or indirectly in any manner or capacity as principal, agent, partner, officer, director, stockholder, employee, or otherwise, in any business or activity competitive with the business conducted by the Company; (ii) at any time divulges to any person or any entity other than the Company any trade secrets, methods, processes, or the proprietary or confidential information of the Company; or (iii) the Participant performs any act or engages in any activity which in the opinion of the Committee is inimical to the best interests of the Company.

6.9    Termination of Employment During Performance Cycle.  In the event a Participant terminates employment due to death, Disability, Retirement or termination of employment for an Approved Reason prior to the Award Payment Date for a Performance Year, the Participant shall receive, if Awards are paid for such Performance Year and if he or she complies with the requirements of Subsection 6.8 through the Award Payment Date, 

	
			
	 
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a pro rata Award.  The amount of the pro rata Award shall be determined by multiplying the Award the Participant would have otherwise been paid if he or she had been a Participant through the last day of the Performance Year by a fraction, the numerator of which is the number of full months he or she was a Participant during such Performance Year and the denominator of which is twelve (12).  For purposes of this calculation, only full months of service shall be considered.

6.10    Claw back Provision.  In the event that any payment under the Plan was based upon materially inaccurate financial statements requiring a restatement or fraud in determining an individual or company performance metric, recipients shall pay back such payment and related deferral into the deferred incentive bonus plan, if any, to the Company.  If the required restatements relate to financial statements filed more than 24 months prior to the date of discovery, no repayment of the cash award is required.  The requirement of repayment, in whole or in part, is at the sole discretion of the Committee.

ARTICLE 7 – CHANGE IN CONTROL

7.1    Background.  Notwithstanding any provision contained in the Plan to the contrary, the provisions of this Article 7 shall control over any contrary provision.  All Participants shall be eligible for the treatment afforded by this Article if their employment with the Company terminates within two years following a Change In Control, unless the termination is due to (a) Death; (b) Disability; (c) Cause; (d) resignation other than (1) resignation from a declined reassignment to a job that is not reasonably equivalent in responsibility or compensation, or that is not in the same geographic area, or (2) resignation within thirty days of a reduction in base pay; or (e) Retirement.

7.2    Payment of Awards.  If a Participant qualifies for treatment under Section 7.1, he or she shall be paid, as soon as practicable, but in no event later than 90 days after his or her termination of employment, the Awards set forth in (a) and (b) below:

		
	(a)
	All of the Participant's unpaid Awards; and

		
	(b)
	A pro rata Award for the Performance Year in which his or her termination of employment occurs.  The amount of the pro rata Award shall be determined by assuming all Participant Performance Targets on IPC's and PPC have been reached.  The pro rata Award shall be calculated using a fraction, the numerator of which shall be the number of full months in the Performance Year prior to the date of the Participant's termination of employment and the denominator of which shall be twelve (12).  For purposes of this calculation, a partial month shall be treated as a full month to the extent 15 or more days in such month have elapsed.   To the extent Performance Targets have not yet been established for the Performance Year, the Performance Targets for the immediately preceding Performance Year shall be used.  The pro rata 

	
			
	 
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Awards shall be paid to the Participant in the form of a lump-sum cash payment.

7.3    Miscellaneous.  Upon a Change In Control, no action, including, but not by way of limitation, the amendment, suspension, or termination of the Plan, shall be taken which would affect the rights of any Participant or the operation of the Plan with respect to any Award to which the Participant may have become entitled hereunder prior to the date of the Change In Control or to which he or she may become entitled as a result of such Change In Control.

ARTICLE 8 – MISCELLANEOUS

8.1    Nonassignability.  No Awards or any other payment under the Plan shall be subject in any manner alienation, anticipation, sale, transfer (except by will or the laws of descent and distribution), assignment, pledge, or encumbrance, nor shall any Award be payable to or exercisable by anyone other than the Participant to whom it was granted.

8.2    Withholding Taxes.  The Company shall be entitled to deduct from any payment under the Plan, regardless of the form of such payment, the amount of all applicable income and employment taxes required by law to be withheld with respect to such payment or may require the Participant to pay to it such tax prior to and as a condition of the making of such payment. 

8.3.    Amendments to Awards.  The Committee may at any time unilaterally amend any unpaid Award, including, but not by way of limitation, Awards earned but not yet paid, to the extent it deems appropriate; provided, however, that any such amendment which, in the opinion of the Committee, is adverse to the Participant shall require the Participant's consent.

8.4.    No Right to Continued Employment or Grants.  Participation in the Plan shall not give any Employee any right to remain in the employ of CFF or any subsidiary.  CFF or, in the case of employment with a Subsidiary, the Subsidiary (either an "Employer"), reserves the right to terminate any Employee at any time, and nothing herein shall interfere with the right of an Employer to discharge an Employee at any time without regard to the effect such discharge might have on the Employee as a Participant under the Plan.  Further, the adoption of this Plan shall not be deemed to give any Employee or any other individual any right to be selected as a Participant or to be granted an Award.

8.5.    Amendment/Termination.  The Committee may suspend or terminate the Plan at any time with or without prior notice.  In addition, the Committee may, from time to time and with or without prior notice, amend the Plan in any manner, but may not, without stockholder approval, adopt any amendment which would require the vote of the stockholders of CFF pursuant to any applicable law, rule or regulation.

	
			
	 
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8.6.    Governing Law.  The Plan shall be governed by and construed in accordance with the laws of the State of Kansas, except as superseded by applicable Federal Law.  Any action concerning the Plan shall be maintained exclusively in the state or federal courts in Topeka, Kansas.

8.7.    No Right, Title, or Interest in Company Assets.  No Participant shall have any rights as a stockholder as a result of participation in the Plan until the date of issuance of a stock certificate in his or her name, and, in the case of restricted shares of Common Stock, such rights are granted to the Participant under the Plan.  To the extent any person acquires a right to receive payments from the Company under the Plan, such rights shall be no greater than the rights in or against any specific assets of the Company.  All of the Awards granted under the Plan shall be unfunded.

8.8.    No Right to Continued Employment.  Participation in this Plan shall not give any Officer any right to remain in the employ of the Company.  The Company reserves the right to terminate an Employee (including Officers) at any time.  Further, adoption of this Plan shall not be deemed to give any Employee or any other individual any right to be selected as a Participant or to be granted an Award.

8.9.    No Guarantee of Tax Consequences.  No person connected with the Plan in any capacity, including but not limited to, CFF and its Subsidiaries and their directors, officers, agents and employees makes any representation, commitment, or guarantee that any tax treatment, including, but not limited to, Federal, state, and local income, estate and gift tax treatment, will be applicable with respect to amounts paid to or for the benefit of a Participant under the Plan, or that such tax treatment will apply to or be available to a Participant on account of participation in the Plan.

8.10.    Other Benefits.  No Award granted under the Plan shall be considered compensation for purposes of computing benefits under any retirement plan of the Company nor affect any benefits or compensation under any other benefit or compensation plan of the Company now or subsequently in effect.

[Signature page follows.]
    

	
			
	 
	-14-
	10/1/2015

IN WITNESS WHEREOF, this Capitol Federal Financial, Inc. Short Term Performance Plan is executed this 30th day of June 2015, to be first effective as of October 1, 2015.

CAPITOL FEDERAL FINANCIAL, Inc.

By____________________________
Chairman

CAPITOL FEDERAL FINANCIAL, Inc.
COMPENSATION COMMITTEE 

By____________________________
Chairman

CAPITOL FEDERAL SAVINGS BANK

By____________________________
President

	
			
	 
	-15-
	10/1/2015ex_101.htm

Ex 10.1

 

 

SEVENTH AMENDMENT TO LINE OF CREDIT PROMISSORY NOTE

 

THIS SEVENTH AMENDMENT TO LINE OF CREDIT PROMISSORY NOTE (this “Agreement”), dated as of the 11th day of June, 2015, is between and among ATRION CORPORATION, a Delaware corporation, ATRION MEDICAL PRODUCTS, INC., a Delaware corporation, HALKEY-ROBERTS CORPORATION, a Florida corporation,  QUEST MEDICAL, INC., a Delaware corporation, ALATENN PIPELINE COMPANY, LLC, an Alabama limited liability company, and ATRION LEASING COMPANY, LLC, an Alabama limited liability company (collectively, the “Borrowers”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, successor by merger to Wachovia Bank, National Association (the “Lender”).

 

R E C I T A L S:

 

A.           Lender has heretofore established a credit facility for the Borrowers' benefit in the current maximum principal amount of Forty Million Dollars ($40,000,000) (the “Credit Facility”).  The Credit Facility is evidenced and secured by the following loan documents:

 

1.           Loan and Security Agreement dated November 12, 1999 (evidencing a Credit Facility in the original maximum principal amount of $18,500,000), as amended by the following documents, each duly executed by Borrowers and Lenders:   an Amendment to Loan and Security Agreement dated as of December 26, 2001; a Second Amendment to Loan and Security Agreement dated November 7, 2003 (which such Second Amendment, among other things, increased the principal balance of the Credit Facility to $25,000,000); a Third Amendment to Loan and Security Agreement dated September 1, 2005; a Fourth Amendment to Loan and Security Agreement dated July 1, 2008; a Fifth Amendment to Loan and Security Agreement dated September 30, 2008; and a Sixth Amendment to Loan and Security Agreement and Loan Increase Agreement dated October 1, 2011 (which such Sixth Amendment, among other things, increased the principal balance of the Credit Facility to $40,000,000) (as amended, the “Loan Agreement”); and

 

2.           Line of Credit Promissory Note dated November 12, 1999 in the original stated principal amount of $18,500,000, as amended by the following documents, each duly executed by Borrowers and Lenders: a Note Extension Agreement dated August 31, 2001; a Second Amendment to Line of Credit Promissory Note dated December 26, 2001 (which such Second Amendment, among other things, increased the principal balance of the Line of Credit Note to $25,000,000); a Third Amendment to Line of Credit Promissory Note dated November 7, 2003; a Fourth Amendment to Line of Credit Promissory Note dated September 1, 2005; a Fifth Amendment to Line of Credit Promissory Note dated July 1, 2008; and a Sixth Amendment to Line of Credit Promissory Note dated as of October 1, 2011 (which such Sixth Amendment, among other things, increased the principal balance of the Line of Credit Note to $40,000,000) (as amended, the “Line of Credit Note”), evidencing the Line of Credit Loan portion of the Credit Facility.

 

  

  

  

 

B.           The Credit Facility terminates on the Termination Date of October 1, 2016 and the outstanding principal balance of all Advances, together with accrued and unpaid interest thereon, is due and payable in full on the Termination Date of October 1, 2016.

 

C.           Borrowers have requested that the Termination Date be extended until October 1, 2021 and Lender has so agreed on the terms set forth below.

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained, Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1. Defined Terms.  Capitalized terms used in this Agreement without definition shall have the meanings ascribed to them in the Line of Credit Note.

 

2. Termination Date Extended. The Line of Credit Note is hereby modified and amended to extend the Termination Date from October 1, 2016 until October 1, 2021 by deleting in its entirety the Defined Term “Termination Date” as the same appears in Section 1 of the Line of Credit Note, and by inserting in lieu thereof the following:

 

“Termination Date” means October 1, 2021, or such earlier date on which the obligations of the Lender to make Advances hereunder are terminated pursuant to the terms of this Agreement.

 

3. Pricing Matrix.  The Pricing Matrix attached as Exhibit A is hereby deleted in its entirety and the Revised Pricing Matrix attached as Revised Exhibit A is inserted in lieu thereof.

 

4. Amendment to Loan Agreement. Contemporaneously herewith, Borrowers and Lender have entered into that certain Seventh Amendment to Loan and Security Agreement.  Accordingly, all references in the Line of Credit Note to the “Loan Agreement” shall henceforth refer to the Loan Agreement, as amended by the Seventh Amendment to Loan Agreement and Security Agreement.

 

5. Confirmation of Obligations.  Except as herein modified, the Line of Credit Note shall remain in full force and effect, and the Line of Credit Note is hereby ratified and affirmed in all respects.

 

6. No Novation and No Release of Collateral. The execution and delivery of this Agreement shall not be interpreted or construed as, and in fact does not constitute, a novation, payment, or satisfaction of all or any portion of the Line of Credit Note; rather, this Agreement is strictly amendatory in nature.  The execution, delivery, and performance of this Agreement shall not operate to release any Collateral securing the Line of Credit Note nor modify or otherwise affect the lien and security interest held by Lender in and to such Collateral.

 

7. Counterparts. This Agreement may be executed in multiple counterparts and using multiple signature pages and shall be binding and enforceable at such time as each party has executed a counterpart of this Agreement.  The signature of any party to a counterpart of this Agreement shall bind such party to the same extent as if all parties executed a single original hereof.

 

  

  

  

 

8. Interpretation. No provision of this Agreement shall be construed against or interpreted to the disadvantage of any party to this Agreement by any court or other governmental or judicial authority by reason of such party's having or being deemed to have structured or dictated such provision.

 

9. Integration.  Borrowers acknowledge and agree that no promises, agreements, understandings, or commitments of any nature whatsoever have been made by or on behalf of Lender in respect to the Credit Facility and the Line of Credit Note, except as set forth herein.  Specifically, Borrowers acknowledge and agree that Lender has made no agreement, and is in no way obligated, to grant any extension, indulgence, forbearance, or consent with respect to the Credit Facility or the Line of Credit Note or any matter relating to the Credit Facility or the Line of Credit Note, except as specifically set forth herein.

 

10. Severability.  If any provisions of this Agreement or the application thereof to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provisions to other persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law.

 

11. Controlling Law. THE VALIDITY, INTERPRETATION, ENFORCEMENT AND EFFECT OF THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF ALABAMA.  ONE OF THE LENDER'S PLACES OF BUSINESS IS LOCATED IN JEFFERSON COUNTY IN THE STATE OF ALABAMA, AND THE BORROWERS AGREE THAT THE LINE OF CREDIT LOAN SHALL BE FUNDED FROM AND THIS AGREEMENT SHALL BE HELD BY LENDER AT SUCH PRINCIPAL PLACE OF BUSINESS, AND THE HOLDING OF THIS AGREEMENT BY LENDER THEREAT SHALL CONSTITUTE SUFFICIENT MINIMUM CONTACTS OF BORROWERS WITH JEFFERSON COUNTY AND THE STATE OF ALABAMA FOR THE PURPOSE OF CONFERRING JURISDICTION UPON THE FEDERAL AND STATE COURTS PRESIDING IN SUCH COUNTY AND STATE.

 

11.           Waiver of Jury Trial. BORROWERS HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY ON ANY CLAIM, COUNTERCLAIM, SETOFF, DEMAND, ACTION OR CAUSE OF ACTION ARISING OUT OF OR IN ANY WAY PERTAINING OR RELATED TO LOAN OBLIGATION, THIS AGREEMENT, OR ANY OTHER LOAN DOCUMENT, OR IN ANY WAY CONNECTED WITH OR PERTAINING OR RELATED TO OR INCIDENTAL TO ANY DEALINGS OF LENDER AND BORROWERS WITH RESPECT TO THE LOAN OBLIGATIONS, THIS AGREEMENT, AND ANY OTHER LOAN DOCUMENT, OR IN CONNECTION WITH THE TRANSACTIONS RELATED HERETO OR CONTEMPLATED HEREBY OR THE EXERCISE OF ANY PARTY'S RIGHTS AND REMEDIES WITH RESPECT TO THE LOAN OBLIGATIONS, THIS AGREEMENT, OR OTHERWISE, OR THE CONDUCT OF THE RELATIONSHIP OF THE PARTIES HERETO, IN ALL OF THE FOREGOING CASES WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.  BORROWERS ACKNOWLEDGE THAT LENDER MAY FILE A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY, AND BARGAINED AGREEMENT OF THE BORROWERS IRREVOCABLY TO WAIVE THEIR RIGHTS TO TRIAL BY JURY, AND THAT, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY DISPUTE OR CONTROVERSY WHATSOEVER BETWEEN BORROWERS AND LENDER SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

 

[Signatures on Following Pages]

 

 

  

  

  

IN WITNESS WHEREOF, Borrowers and Lender have caused this Agreement to be executed by their respective duly authorized officers as of the date first above written.

 

BORROWERS:

 

	 	

ATRION CORPORATION,

a Delaware corporation

	 
	 	 	 	 
	
 

	
By: 

	/s/ Jeffery Strickland	 
	 	 	Jeffery Strickland	 
	 	 	

Its Vice President

	 
	 	 	 	 

 

	 	

ATRION MEDICAL PRODUCTS, INC.,

a Delaware corporation

	 
	 	 	 	 
	
 

	
By: 

	/s/ Jeffery Strickland	 
	 	 	

Jeffery Strickland

	 
	 	 	

Its Vice President

	 
	 	 	 	 

	 	

HALKEY-ROBERTS CORPORATION,

a Delaware corporation

	 
	 	 	 	 
	
 

	
By: 

	/s/ Jeffery Strickland	 
	 	 	

Jeffery Strickland

	 
	 	 	

Its Vice President

	 
	 	 	 	 

	 	

QUEST MEDICAL, INC.,

a Texas corporation

	 
	 	 	 	 
	
 

	
By: 

	/s/ Jeffery Strickland	 
	 	 	

Jeffery Strickland

	 
	 	 	

Its Vice President

	 
	 	 	 	 

 

 

  

  

  

	 	

ALATENN PIPELINE COMPANY, LLC,

an Alabama limited liability company

	 
	 	 	 	 
	
 

	
By: 

	/s/ Jeffery Strickland	 
	 	 	Jeffery Strickland	 
	 	 	

Its Vice President

	 
	 	 	 	 

	 	

ATRION LEASING COMPANY, LLC,

	 
	 	 	 	 
	
 

	
By: 

	/s/ Jeffery Strickland	 
	 	 	

Jeffery Strickland

	 
	 	 	

Its Vice President

	 
	 	 	 	 

 

LENDER:

 

	 	

WELLS FARGO BANK, NATIONAL ASSOCIATION,

a national banking association

	 
	 	 	 	 
	
 

	
By: 

	/s/  Jason Ford	 
	 	 	 Jason Ford	 
	 	 	

Its: Vice President

	 
	 	 	 	 

 

  

  

  

REVISED EXHIBIT A

PRICING MATRIX

(Effective June 11, 2015)

 

	
If the ratio of Funded Debt/EBITDA is:

	
The Line of Credit Loan Margin will be:

	
The Unused Line Fee will be:

	
The Term Loan Margin will be:

	  	  	  	  
	
Less than 1.50

	
100 bps (1.00%)

	
6.5 bps (.065%)

	
125 bps (1.25%)

	
1.50 or greater but less than 2.00

	
137.5 bps (1.375%)

	
6.5 bps (.065%)

	
162.50 bps (1.625%)

	
2.00 or greater but less than 2.25

 

	
175 bps (1.75%)

	
6.5 bps (.065%)

	
200 bps (2.00%)

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