South Dakota Executive Change in Control Agreement for The First National Bank of Litchfield

• Category: Corporations - Public
• State: Multi-State
• Control #: US-EG-9378
• Format: Word; Rich Text

Description

Executive Change in Control Agreement between the First National Bank of Litchfield, First Litchfield Financial Corporation and Jerome J. Whalen as President of First National Bank of Litchfield and First Litchfield Financial Corporation (Not to be A South Dakota Executive Change in Control Agreement is a legal document specifically tailored for The First National Bank of Litchfield, located in South Dakota. This agreement is drafted to outline the terms and conditions that govern the compensation and benefits of executive employees in the event of a change in control of the bank. The purpose of this agreement is to protect the rights and interests of executives by ensuring fair treatment, job security, and appropriate compensation in case of a change in ownership, merger, or acquisition. The First National Bank of Litchfield understands the importance of maintaining a stable and motivated leadership team during such transitions, which is why this agreement is crucial. The South Dakota Executive Change in Control Agreement for The First National Bank of Litchfield contains various provisions, including but not limited to: 1. Definitions: This section clearly defines important terms used throughout the agreement, such as "change in control," "executive," "base salary," "bonus," "equity awards," and more. 2. Triggering Events: The agreement identifies the specific events that will trigger the agreement, such as a merger, acquisition, sale of assets, or a change in majority ownership. 3. Severance Compensation: The agreement specifies the severance compensation that executives will be entitled to in the event of a triggering event. This may include a predetermined amount of base salary, additional cash payments, medical and dental benefits, pension benefits, and continued equity awards. 4. Good Reason: This section outlines the circumstances under which an executive may terminate their employment for "good reason" and still be eligible for severance benefits. These reasons may include a material change in job responsibilities, relocation, reduction in compensation, or a loss of certain benefits. 5. Non-Competition and Non-Solicitation: To protect the bank's interests, the agreement includes provisions restricting executives from engaging in competitive activities or soliciting clients or employees for a specified period after the termination of their employment. 6. Amendment and Governing Law: This clause states that any modification or amendment to the agreement must be in writing and signed by both parties. It also identifies South Dakota law as the governing law for any disputes arising from the agreement. Different types of South Dakota Executive Change in Control Agreements for The First National Bank of Litchfield may exist depending on the specific roles, responsibilities, and seniority of the executives involved. For instance, there may be separate agreements for the CEO, CFO, and other top executives, each tailored to reflect their individual compensation packages. In conclusion, the South Dakota Executive Change in Control Agreement for The First National Bank of Litchfield is a crucial contractual arrangement designed to safeguard the interests of executives during significant changes in ownership. It provides a framework for fair treatment, compensation, and job security, ensuring a smooth transition and stability within the bank's leadership team.

A South Dakota Executive Change in Control Agreement is a legal document specifically tailored for The First National Bank of Litchfield, located in South Dakota. This agreement is drafted to outline the terms and conditions that govern the compensation and benefits of executive employees in the event of a change in control of the bank. The purpose of this agreement is to protect the rights and interests of executives by ensuring fair treatment, job security, and appropriate compensation in case of a change in ownership, merger, or acquisition. The First National Bank of Litchfield understands the importance of maintaining a stable and motivated leadership team during such transitions, which is why this agreement is crucial. The South Dakota Executive Change in Control Agreement for The First National Bank of Litchfield contains various provisions, including but not limited to: 1. Definitions: This section clearly defines important terms used throughout the agreement, such as "change in control," "executive," "base salary," "bonus," "equity awards," and more. 2. Triggering Events: The agreement identifies the specific events that will trigger the agreement, such as a merger, acquisition, sale of assets, or a change in majority ownership. 3. Severance Compensation: The agreement specifies the severance compensation that executives will be entitled to in the event of a triggering event. This may include a predetermined amount of base salary, additional cash payments, medical and dental benefits, pension benefits, and continued equity awards. 4. Good Reason: This section outlines the circumstances under which an executive may terminate their employment for "good reason" and still be eligible for severance benefits. These reasons may include a material change in job responsibilities, relocation, reduction in compensation, or a loss of certain benefits. 5. Non-Competition and Non-Solicitation: To protect the bank's interests, the agreement includes provisions restricting executives from engaging in competitive activities or soliciting clients or employees for a specified period after the termination of their employment. 6. Amendment and Governing Law: This clause states that any modification or amendment to the agreement must be in writing and signed by both parties. It also identifies South Dakota law as the governing law for any disputes arising from the agreement. Different types of South Dakota Executive Change in Control Agreements for The First National Bank of Litchfield may exist depending on the specific roles, responsibilities, and seniority of the executives involved. For instance, there may be separate agreements for the CEO, CFO, and other top executives, each tailored to reflect their individual compensation packages. In conclusion, the South Dakota Executive Change in Control Agreement for The First National Bank of Litchfield is a crucial contractual arrangement designed to safeguard the interests of executives during significant changes in ownership. It provides a framework for fair treatment, compensation, and job security, ensuring a smooth transition and stability within the bank's leadership team.