EX-10.1 2 dex101.htm RESTRICTIVE COVENANTS AND GENERAL RELEASE AGREEMENT RESTRICTIVE COVENANTS AND GENERAL RELEASE AGREEMENT

Separation from Employment. Executive and Comerica agree that Executive’s employment with Comerica shall terminate effective February 28, 2009 (the “Separation Date”).

Public Announcement. Comerica shall issue an announcement of Executive’s departure from Comerica by February 26, 2009.

Resignation from Boards and Committees. Effective February 28, 2009, Executive shall resign from his position as Executive Vice President of Comerica Incorporated and Comerica Bank and, effective before or as of February 28, 2009, Executive shall resign from any other positions he holds as an officer, member or manager of Comerica or 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, Blackberry, 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 his 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 and benefits:

Prior to the Separation Date, so long as Executive continues to be employed by Comerica, Comerica shall continue to pay Executive his 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 accordance with Section 4980B (“COBRA”) of the Internal Revenue Code

of 1986, as amended (the “Code”) and the terms of the applicable plan. Assuming Executive elects COBRA continuation coverage under Comerica’s medical benefit plan, Executive shall be eligible to continue medical benefit plan coverage under COBRA for the period of coverage under COBRA, with the cost of such coverage to be paid by Executive pursuant to the terms generally applicable to retired employees of Comerica as in effect from time to time. Executive’s conversion rights under other insurance programs following the Separation Date shall be determined in accordance with the terms of the applicable plan.

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.

Executive will receive, pursuant to the terms of the 1999 Amended and Restated Comerica Incorporated Deferred Compensation Plan (“DCP”) and the 1999 Comerica Incorporated Amended and Restated Common Stock Deferred Incentive Award Plan (“DIAP”), distributions from his accounts under those plans, payable in accordance with his prior elections and the terms of the DCP and the DIAP, respectively. Such distributions will be subject to all applicable taxes, FICA and other withholding and deductions required by law and will be made pursuant to the distribution schedule followed under the administrative procedures of the DCP and the DIAP, respectively.

At the meeting of the Comerica Incorporated Governance, Compensation and Nominating Committee (the “Committee”) held on January 27, 2009, upon the recommendation of Comerica, the Committee adopted resolutions generally providing that, subject to the execution and delivery by Executive of this Agreement at least eight (8) calendar days prior to the Separation Date and his non-revocation of this Agreement:

To the extent provided by the Amended and Restated Bylaws of Comerica Incorporated, Article V, Section 12, Comerica agrees to defend, indemnify and hold Executive harmless from and against all liability for actions taken by him within the scope of his responsibilities so long as his conduct in any such matter was consistent with the standards contained in such Article V, Section 12.

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 himself and for all people acting on his behalf (such as, but not limited to, his family, heirs, executors, administrators, personal representatives, agents and/or legal representatives), Executive agrees to waive any and all claims or grievances which he 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 his signature hereto, Executive, for himself and for all people acting on his 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 occurring on or prior to the Effective Date of this Agreement. This release includes, but is not limited to, any and all claims of any nature that relate to Executive’s employment by or termination of employment with Comerica. This release includes, but is not limited to: claims of promissory estoppel, forced resignation, constructive discharge, libel, slander, deprivation of due process, wrongful or retaliatory discharge, discharge in violation of public policy, breach of contract, breach of implied contract, infliction of emotional distress, detrimental reliance, invasion of privacy, negligence, malicious prosecution, false imprisonment, fraud, assault and battery, interference with contractual or other relationships, or any other claim under common law. This release also specifically includes, but is not limited to: any and all claims under any federal, state, and/or local law, regulation, or order prohibiting discrimination, including the Age Discrimination in Employment Act, the Americans With Disabilities Act, Title VII of the Civil Rights Act of 1964, the Texas Commission on Human Rights Act, the Public Employment Discrimination Act, the Texas Free Enterprise and Enterprise Act of 1938, the Texas Payday Law, the Texas Minimum Wage Act of 1970, together with any and all claims under the Fair Credit Reporting Act, the Uniform Services Employment and Reemployment Rights Act, the Employee Retirement Security Income Security Act, the

Family Medical Leave Act, or any other federal, state, and or local law, regulation, or order relating to employment, as they all have been or may be amended. It is Executive’s intent, by executing this Agreement, to release all claims as specified above to the maximum extent permitted by law, whether said claims are presently known or unknown.

To the maximum extent permitted by law, Executive agrees that he has not filed, nor will he ever file, a lawsuit asserting any claims which are released by this Agreement, or to accept any benefit from any lawsuit which might be filed by another person or government entity based in whole or in part on any event, act, or omission which is the subject of Executive’s release.

Executive understands and agrees that, other than the payments and benefits expressly enumerated in this Agreement, he 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 he may be entitled under the Comerica Incorporated Retirement Plan, the Comerica Incorporated Preferred Savings [401(k)] Plan, the 1999 Comerica Incorporated Amended and Restated Deferred Compensation Plan, the 1999 Comerica Incorporated Amended and Restated Common Stock Deferred Incentive Award Plan, and the Comerica Incorporated Amended and Restated Employee Stock Purchase Plan, in each case in accordance with the terms of such plans and 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 was automatically invested in common stock that, pursuant to a No Sale Agreement, will be non-transferrable until he terminates employment with Comerica (sometimes referred to as the non-deferred 3-year award program or plan) (the “Non-Deferred Account”). Executive shall be entitled to receive the shares in his Non-Deferred Account following his Separation Date. Executive agrees that he is not entitled to any benefits under any other program or plan of Comerica.

The provisions of this Paragraph 6 do not apply to any claim Executive may have for representation and indemnification pursuant to Paragraph 5(g) above or any claim based solely upon his status as a shareholder of Comerica Incorporated.

Disclosure of Information. Executive hereby acknowledges that he 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 public domain through no wrongful act of the recipient, or (iii) information received by Executive from a third party who was free to disclose it. Executive understands that Comerica’s Confidential Information, including its trade secrets, is highly sensitive information relating to the business of Comerica and of Comerica’s clients, which has had its secrecy protected both internally and externally and which is a competitive asset of Comerica. Executive hereby agrees that he shall not use, commercialize or disclose such Confidential Information or information as to the existence and/or provisions of this Agreement to any person or entity, except to such individuals as approved by Comerica in writing prior to any such disclosure or as otherwise required by law. Executive’s obligations pursuant to this paragraph shall survive the termination of this Agreement.

Cooperation. Executive agrees that in the event of a legal proceeding (whether threatened or pending, whether investigative, administrative, or judicial) involving matters of which he has knowledge by virtue of the positions Executive held during his 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 shall make himself reasonably available for interviews, depositions, and testimony as directed by Comerica or its counsel, and shall further execute truthful statements, declarations, or affidavits pertaining to such matters at the request of Comerica or its counsel. Executive shall be reimbursed for any reasonable out of pocket expenses that he may incur as a result of his compliance with this paragraph, subject to Comerica’s expense reimbursement policies. Nothing in this paragraph shall be construed as requiring Executive to be non-truthful or as preventing him from disclosing information that would be considered adverse to Comerica or requiring him to do anything in violation of any applicable law, rule or regulation.

Non-Disparagement.

Executive agrees that he 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 his 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. Executive agrees that he shall provide notice to Comerica in advance of any such cooperation or testimony, unless such notice is prohibited. It is further understood that nothing in this Paragraph 9(a) shall be construed to preclude Executive from discharging his legal obligations to any administrative or regulatory agencies or auditing entities.

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 and will respond to any inquiries regarding Executive’s separation with the statement that Executive retired from 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 the Agreement, Executive agrees that he shall not, directly or indirectly, for his own account or in conjunction with any other person or entity, whether as an employee, shareholder, partner, investor, principal, agent, representative, proprietor, consultant, or in any other capacity, do any of the following:

Enter into or engage in any business in competition with the businesses conducted by Comerica in the states of Michigan, California, Texas, Arizona or Florida. For purposes of this Paragraph 10(a), Executive shall be “in competition with Comerica” if (1) Executive accepts employment or serves as an agent, employee, director or consultant to, a competitor of Comerica, or (2) Executive acquires or has an interest (direct or indirect) in any firm, corporation, partnership or other entity engaged in a business that is competitive with Comerica. The mere ownership of less than 1% debt and/or equity interest in a competing company whose stock is publicly held shall not be considered as having a prohibited interest in a competitor, and neither shall the mere ownership of less than 5% debt and/or equity interest in a competing company whose stock is not publicly held. For purposes of this Paragraph 10(a), any commercial bank, savings and loan association, securities broker or dealer, or other business or financial institution that offers any major service offered by Comerica as of the Separation Date, and which conducts business in Michigan, California, Texas, Arizona or Florida, shall be deemed a competitor;

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 he was privy to any information during the two (2) year period prior to the Separation Date to patronize any business that is competitive with Comerica; and

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.

Representation. Executive represents and warrants:

Executive has no knowledge of or 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 Conduct and Ethics for Members of the Board of Directors, each as amended and/or restated.

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 to misappropriate the relationship and goodwill existing between Comerica and such entities and individuals. Executive further acknowledges that, at the outset of his employment with Comerica and throughout his employment with Comerica, Executive received, and continues to receive and/or have access to Comerica and Comerica’s clients’ proprietary Confidential Information, specialized training and goodwill that he would not otherwise have but for his employment with Comerica. Therefore, Executive agrees that it is fair and reasonable for Comerica to take steps to protect itself from the risk of misappropriation of Comerica’s trade secrets including but not limited to its business relationships, goodwill, proprietary information, specialized training, and other Confidential Information. Executive agrees he has carefully considered the nature and extent of the restrictions placed upon him and the remedies conferred upon Comerica in this Agreement and has had the opportunity to retain legal counsel at his 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 customers and do not confer a benefit on Comerica that is out of proportion to the restrictions placed on Executive.

Dispute Resolution.

Early Resolution Conference. This Agreement is understood to be clear and enforceable as written and is executed by both parties on that basis. However, should Executive later challenge any provision as unclear, unenforceable, or inapplicable to any competitive activity that Executive intends to engage in, Executive will first notify Comerica in writing and meet with a Comerica representative and a neutral mediator (if either party elects to retain one at its own expense) to discuss resolution of any disputes between the parties. Executive will provide this notification at least fourteen (14) calendar days before he engages in any activity that could reasonably and foreseeably fall within a questioned restriction. Executive’s failure to comply with this early resolution conference requirement (the “Resolution Requirement”) shall waive his right to challenge the reasonable scope, clarity, applicability or enforceability of the Agreement and its restrictions at a later time. Comerica will respond to Executive’s notification required by this paragraph within fourteen (14) calendar days following receipt of the written notification. Comerica’s failure to respond with an acceptance or denial within the fourteen (14) calendar day period, unless a party has invoked the mediation process described above, shall waive its right to challenge Executive’s activity that could reasonably fall within a questioned restriction at a later time. All

rights of both parties will be preserved if the Resolution Requirement is complied with even if no agreement is reached in the conference.

Injunctive Relief. In the event of a breach or threatened breach of Paragraphs 6, 7, 8, 9 or 10 of this Agreement, Executive agrees that Comerica shall be entitled to injunctive relief in a Texas 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) 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 Texas 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; TARP Provisions. 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, other than the Waiver signed as of November 14, 2008 by Executive in connection with Comerica’s participation in the United States Department of the Treasury’s Troubled Assets Relief Program (“TARP”) Capital Purchase Program (the “Waiver”), and the Capital Purchase Program Senior Executive Officer Consent to Comerica’s amendments to compensation, bonus, incentive and other benefit plans, arrangements and agreements in connection with Comerica’s participation in the

United States Department of the Treasury’s TARP Capital Purchase Program, signed by Executive as of November 14, 2008 (the “Consent”), and, except as otherwise set forth herein, there are no other agreements between the parties with respect to the subject matter hereof, other than the Waiver and the Consent. The amendments set forth in the Resolution and Amendment attached to the Consent (the “TARP Provisions”) are incorporated herein and made a part hereof and, for the avoidance of doubt, this Agreement shall be subject in all respects to such TARP Provisions. No further 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; provided, however, that the Waiver shall not be affected by this sentence.

Governing Law. This Agreement shall be interpreted and governed by the laws of the State of Texas, 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:

18.

Consideration Period, Revocation Period and Effective Date. Executive confirms that he had at least twenty-one (21) days to consider this Agreement and that he 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, Executive understands he may revoke his signature by delivery of a written notice of revocation to ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Senior Vice President and General Counsel, Litigation and Corporate Operations, ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇, ▇▇▇▇▇. The revocation must be delivered to this address before 5:00 p.m. CDST on or before the 7th day following the signing of this Agreement. This Agreement shall become effective and enforceable on the eighth (8th) day following its execution by Executive, provided he does not exercise his right of revocation as described above (the

“Effective Date”). If Executive fails to sign this Agreement on or before the 21st day from the date set forth below or revokes his signature, this Agreement will be without force or effect, and Executive shall not be entitled to any of the rights and benefits hereunder.

Comerica Incorporated

By:

/s/ ▇▇▇ ▇. ▇▇▇▇▇▇▇▇

Name:

▇▇▇ ▇. ▇▇▇▇▇▇▇▇

Title:

Executive Vice President