Separation from Employment. Executive and Comerica agree that Executive’s employment with Comerica shall terminate effective January 31, 2019 (the “Separation Date”).
Public Announcement. Comerica may, in its sole discretion, issue one or more announcement(s) of Executive’s departure from Comerica at such time(s) as Comerica deems appropriate.
Resignation from Boards and Committees. Effective before or as of the Separation Date, Executive shall resign from any and all positions Executive holds as an officer, member or manager of Comerica and any and all positions Executive holds as a member of a Comerica board or committee.
Return of Comerica Property. Executive shall return to Comerica, no later than the close of business on the Separation Date, all property of Comerica including, but not limited to, customer information, personal computer, laptop, keys, identification cards, access cards, corporate credit cards, and files or other documents received, compiled or generated by or for Executive in connection with or by virtue of Executive’s employment with Comerica.
Compensation and Benefits. In consideration for the release of claims set forth in Paragraph 6, the covenants set forth in Paragraphs 7, 8, 9, 10 and 11 and such other promises of Executive as set forth in this Agreement, Comerica agrees that it shall pay or provide to Executive the following payments, benefits and/or other consideration:
Prior to the Separation Date, so long as Executive continues to be employed by Comerica, Comerica shall continue to pay Executive’s regular base salary at the rate in effect as of immediately prior to the delivery of this Agreement, in accordance with the payroll practices of Comerica applicable to similarly situated executives.
Prior to the Separation Date, so long as Executive continues to be employed by Comerica, Executive shall continue to be eligible to participate in Comerica’s health, welfare benefit and retirement plans in which Executive participated immediately prior to the delivery of this Agreement, as such plans may be in effect from time to time.
Following the Separation Date, Executive shall be eligible to elect continuation coverage under Comerica’s healthcare benefit plans in
Comerica shall reimburse Executive for reasonable and documented business expenses incurred by Executive on or before the Separation Date, in accordance with the terms of Comerica’s policy in effect as of the Separation Date.
Executive shall receive a lump-sum payment for all accrued but unused Paid Time Off (PTO) days that are paid upon termination of employment in accordance with the established policies of Comerica. This lump sum payment shall be subject to all applicable taxes, FICA, and other withholdings and deductions required by law.
Executive will receive, pursuant to the terms of the 1999 Comerica Incorporated Amended and Restated Deferred Compensation Plan (“DCP”)
Stock options and/or performance-based restricted stock units granted to Executive under the Comerica Incorporated 2006 Amended and Restated Long-Term Incentive Plan or under the Comerica Incorporated 2018 Long-Term Incentive Plan, each as amended and/or restated from time to time (collectively, the “LT Incentive Plan”), shall be governed by the terms of the LT Incentive Plan and the respective grant agreements evidencing the grant of such options and/or restricted stock units.
Executive received or will receive any and all applicable incentive payments to which he is entitled pursuant to the Comerica Incorporated 2016 Management Incentive Plan or its successor plan ("MIP") for performance periods ending on or prior to December 31, 2018, including, without limitation, incentive payments payable in the year 2019 based on the attainment of performance goals established by the Governance,
At the meeting of the Comerica Incorporated Governance, Compensation and Nominating Committee (the “Committee”) held or to be held on January 22, 2019, Comerica recommended or will recommend to the Committee that Executive’s restricted shares of Comerica Incorporated common stock that are not vested as of the Separation Date shall fully vest as of the Separation Date, subject to the execution and delivery by Executive of this Agreement at least eight (8) calendar days prior to the Separation Date and Executive’s non-revocation of this Agreement and subject to such other terms and conditions of the LT Incentive Plan and the grant agreements evidencing the grant of such restricted stock, including Executive’s obligation to satisfy all tax withholding obligations.
To the extent provided by the Amended and Restated Bylaws of Comerica Incorporated, Article V, Section 12, Comerica agrees to defend, indemnify
Release of Claims. In consideration for the payments and other benefits provided to Executive by this Agreement, including those described above in Paragraph 5, certain of which Executive is not otherwise entitled, and the sufficiency of which Executive acknowledges, Executive further agrees, as follows:
For Executive and for all people acting on Executive’s behalf (such as, but not limited to, family, heirs, executors, administrators, personal representatives, agents and/or legal representatives), Executive agrees to waive any and all claims or grievances which Executive may have against Comerica and Comerica’s past or present stockholders, directors, officers, trustees, agents, representatives, attorneys, employees, in their individual or representative capacities, and any and all employee benefit plans and their respective past, current and future trustees and administrators (hereafter, collectively, the “Released Parties”). By Executive’s signature hereto, Executive, for himself and for all people acting on Executive’s behalf, forever and fully releases and discharges any and all of the Released Parties from any and all claims, causes of action, contracts, grievances, liabilities, debts, judgments, and demands, including but not limited to any claims for attorney fees, that Executive ever had, now has, or may have by reason of or arising in whole or in part out of any event, act or omission
To the maximum extent permitted by law, Executive agrees that Executive has not filed, nor will Executive ever file, a lawsuit asserting any claims which are released by this Agreement.
Executive understands and agrees that, other than the payments and benefits expressly enumerated in this Agreement, Executive is not entitled to receive any other compensation, incentive, wage, vacation or other paid time off, leave, benefit or other payment from Comerica, other than any vested benefits to which Executive may be entitled under the Comerica Incorporated Preferred Savings Plan, the Supplemental Retirement Income Account Plan for Employees of Comerica Incorporated, the Comerica Incorporated Retirement Income Account Plan, the DCP, the DCIAP, and the Comerica Incorporated Amended and Restated Employee Stock Purchase Plan, each as amended and/or restated from time to time, and in each case in accordance with the terms of such plans and, if applicable, any valid elections thereunder. In addition, prior to November 23, 2004, a portion of the Executive’s incentive bonus attributable to the three-year performance period under the MIP’s predecessor plan(s) was automatically invested in common stock that is non-transferrable until Executive terminates employment with Comerica (sometimes referred to as the non-deferred 3-year award program) (the “Non-Deferred Account”). Executive
The provisions of this Paragraph 6 do not apply to any claim Executive may have for representation and indemnification pursuant to Paragraph 5(j) above.
Disclosure of Information. Executive hereby acknowledges that Executive has been and will continue to have access and exposure to confidential and proprietary information of Comerica and trade secrets, including details of the business or affairs of Comerica, its subsidiaries or affiliates (including, without limitation, planning information and strategies, information and/or strategies for the prosecution and/or defense of any matter that is now or may be in the future the subject of any lawsuit, dispute, controversy, claim and/or regulatory action, financial information, organizational structure, strategic planning, sales and marketing strategies, distribution methods, data processing and other systems, personnel policies and compensation plans and arrangements); any customer or advertising lists; any information, knowledge or data of a technical nature (including, without limitation, methods, know-how, processes, discoveries, machines, or research projects); any information, knowledge or data relating to future developments (including without limitation, tax planning research and development, future marketing or merchandising); or any and all other trade secrets (collectively, "Confidential Information"). Confidential Information does not include (i) information already known or independently developed by Executive from public sources or information in the public domain, (ii) information in the
Cooperation. Executive agrees that in the event of a legal proceeding (whether threatened or pending, whether investigative, administrative, or judicial) involving matters of which Executive has knowledge by virtue of the positions Executive held during Executive’s employment at Comerica, Executive shall disclose to Comerica and its counsel any facts known to Executive which might be relevant to said legal proceeding and shall cooperate fully with Comerica and its counsel so as to enable Comerica to present any claim or defense which it may have relating to such matters. For purposes of this paragraph, “cooperate fully” shall mean that
Executive agrees that Executive will make no disparaging remarks about Comerica, its parent and/or affiliates, their respective businesses, products or services, any current or former director, the Chairman and Chief Executive Officer, or any of Executive’s direct reports, or their policies, procedures or practices (including but not limited to, business, lending, or credit policies, procedures or practices) to any third parties, including but not limited to, customers or prospective customers of Comerica. It is agreed and understood that nothing in this Paragraph 9(a) shall be construed to preclude Executive from (1) testifying truthfully pursuant to subpoena or as otherwise required by law, (2) engaging in any action consistent with public policy, or (3) cooperating in any internal or government investigation to the extent such cooperation is mandated by policy, regulation or statute.
Comerica agrees that the Chairman and Chief Executive Officer and his direct reports will not make any disparaging remarks regarding Executive or Executive’s performance while employed at Comerica. It is agreed and understood that nothing in this Paragraph 9(b) shall be construed to preclude those covered from (1) testifying truthfully pursuant to subpoena or as otherwise required by law, (2) engaging in any action consistent with public policy, or (3) cooperating in any internal or government investigation to the extent such cooperation is mandated by policy, regulation or statute. It is further agreed and understood that nothing in this Paragraph shall be construed to preclude Comerica from discharging its legal obligations to its Boards of Directors, any administrative or regulatory agencies or auditing entities.
Non-Competition and Non-Solicitation. Prior to the Separation Date and for the period ending two (2) years after the execution of this Agreement, Executive agrees that Executive shall not, directly or indirectly, for Executive’s own account or in conjunction with any other person or entity, whether as an employee, shareholder,
Enter into or engage in any business in competition with the businesses conducted by Comerica in the states of Michigan, California, Texas, Arizona
Request or advise any individual or company that is a customer of Comerica to withdraw, curtail, or cancel any such customer’s actual or prospective business with Comerica;
Solicit, induce or attempt to induce any customers of Comerica with whom Executive had professional contact or with respect to whom Executive was privy to any information during the two (2) year period prior to the
Solicit or induce or attempt to solicit or induce any employee, agent or consultant of Comerica to terminate his or her employment, representation, or other relationship with Comerica.
Executive has no knowledge of, is not otherwise aware of, has no evidence of and/or has not reported to any person, organization and/or governmental or regulatory authority any of the following: (i) any violation by the Released Parties of any securities and/or other laws, rules and regulations applicable to Comerica, (ii) any breach by Comerica and/or by any Released Party of any fiduciary duty or obligation to any person, organization and/or governmental or regulatory authority, and/or (iii) any violation by any Released Party of Comerica’s Code of Business Conduct and Ethics for Employees, Senior Financial Officer Code of Ethics, or Code of Business
Executive has a special relationship of trust and confidence with Comerica and its customers and clients, which creates a high risk and opportunity for
Executive agrees Executive has carefully considered the nature and extent of the restrictions placed upon Executive and the remedies conferred upon Comerica in this Agreement and has had the opportunity to retain legal counsel at Executive’s own expense to review this Agreement. Executive agrees the restrictions are reasonable in time and geographic scope and are necessary to protect the legitimate business interests of Comerica and its
Early Resolution Conference. This Agreement is understood to be clear and enforceable as written and is executed by both parties on that basis.
Injunctive Relief. In the event of a breach or threatened breach of Paragraphs 6, 7, 8, 9, 10, or 11 of this Agreement, Executive agrees that Comerica shall be entitled to injunctive relief in a Michigan court of appropriate jurisdiction to remedy any such breach or threatened breach, and Executive acknowledges that monetary damages alone would not be an adequate remedy to compensate Comerica for the loss of goodwill and other harm to its reputation and business.
Arbitration. Except as provided in Paragraph 12(a) and (b) hereof, in the event of any dispute between any of the Released Parties and Executive relating to Executive’s employment with or separation from employment with Comerica, the terms of and the parties’ entry into this Agreement and/or breach of this Agreement, Executive and Comerica agree to submit the dispute, including any claims of discrimination under federal, state or local law by Executive, to final and binding arbitration pursuant to the provisions of Michigan statutory law and/or the Federal Arbitration Act, 9 U.S.C. Sec. 1 et seq. The arbitration shall be conducted by the National Center for Dispute Settlement or a similar organization mutually agreed to by the parties. The arbitration shall be before a single, neutral arbitrator selected by the parties.
Entire Agreement. This Agreement supersedes all prior and contemporaneous relationships, agreements, understandings, negotiations and discussions, whether oral or written, of the parties with respect to the subject matter hereof, to the extent they conflict herewith, and, except as otherwise set forth herein, there are no other agreements between the parties with respect to the subject matter hereof. No amendment, supplement, modification or waiver of this Agreement shall be implied or be binding unless in writing and signed by the party against which such amendment, supplement, modification or waiver is asserted. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver, unless otherwise therein provided.
Governing Law. This Agreement shall be interpreted and governed by the laws of the State of Michigan, except as to matters specifically governed by federal statute or regulation.
Severability. The provisions of this Agreement are severable, and if any part or portion of it is found to be unenforceable, the other portions shall remain fully valid and enforceable.
Withholding. Comerica may withhold from any amounts payable under this Agreement such Federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or regulation.
Notice. Any notices relating to or arising out of this Agreement shall be sent by registered mail, return receipt requested, and shall be addressed as follows:
Consideration Period, Revocation Period and Effective Date. Executive confirms that Executive had at least twenty-one (21) days to consider this Agreement, or that, by executing this Agreement, Executive voluntarily waives the twenty-one (21) day consideration period and that Executive had an opportunity to consult with an attorney during said consideration period and prior to signing this Agreement. For an additional period of seven (7) days following the signing of this Agreement,
/s/ John D. Buchanan
John D. Buchanan
Executive Vice President,
January 8, 2019