Exhibit 10.1

 

RESIGNATION AND CONSULTING AGREEMENT

BY AND BETWEEN

BEVERLY NATIONAL CORPORATION AND PETER E. SIMONSEN

 

THIS AGREEMENT is made and concluded this 29th day of April, 2005, by and
between Beverly National Corporation, organized and existing under the laws of
the Commonwealth of Massachusetts with its main office located in the City of
Beverly, Commonwealth of Massachusetts, and Peter E. Simonsen, an individual
currently residing in the City of Beverly in the Commonwealth of Massachusetts.

 

WITNESSETH:

 

WHEREAS, Mr. Simonsen is currently serving as an Officer of Beverly National
Corporation and its subsidiaries including, but not limited to, Beverly National
Bank (collectively referred to as the “Corporation”);

 

WHEREAS, Mr. Simonsen has notified the Board of his intention to resign from the
Corporation;

 

WHEREAS, in light of Mr. Simonsen’s years of valuable service to the
Corporation, the Corporation, acting through its Board of Directors, is willing
to enter into this Resignation and Consulting Agreement (the “Agreement”) on the
terms and conditions hereinafter set forth;

 

NOW THEREFORE, in consideration of the premises, the mutual understandings and
undertakings and especially for other good and valuable consideration received
to each party’s full satisfaction, the parties do hereby agree as follows:

 

1. Effective April 29, 2005, Mr. Simonsen resigns from any and all titles and
positions that he may hold with the Corporation and any subsidiaries and/or
affiliates of the Corporation. The Corporation will pay Mr. Simonsen all accrued
and unpaid compensation through the end of the pay period ending May 6, 2005.

 

2. Upon execution of this Agreement, Mr. Simonsen will sign a General Release
substantially in the form attached hereto as Exhibit A.

 

3. Mr. Simonsen agrees that through April 30, 2006, he will make himself
reasonably available at times mutually agreeable to Mr. Simonsen and the
Corporation to provide consulting services to the Corporation as may be
reasonably requested by the Corporation in order to facilitate the smooth
transition of management for the Corporation and assist the Corporation in the
resolution of certain priority matters. Mr. Simonsen shall generally not be
required to devote more than twenty (20) hours per month to his duties hereunder
and shall be free to conduct a job search or pursue other employment
opportunities during such period but shall not directly or indirectly solicit
any customers or employees of the Corporation. The Corporation will pay Mr.
Simonsen through the term of this Agreement. Payments shall be made as provided
for in Exhibit B.

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4. As provided in paragraphs 1 and 2 of Exhibit B, the Corporation shall pay to
Mr. Simonsen all amounts that would have been due to Mr. Simonsen under Section
8(d) of the Employment Agreement dated February 23, 2000 and Change in Control
Agreement dated February 23, 2000, which are replaced and superceded by this
Agreement and the additional amounts provided for in paragraph 3 of Exhibit B
attached hereto.

 

5. Mr. Simonsen shall return all documents, records, materials, software,
equipment, and other physical property, and all copies of any of the foregoing,
whether or not pertaining to Confidential Information, that have come into his
possession or have been produced by him in connection with his employment.

 

6. Mr. Simonsen shall not, reveal or disclose to any person outside the
Corporation or use to his own benefit, without the Corporation’s specific
written authorization in each instance, whether by private communication or by
public address, publication or otherwise, any confidential information not
already lawfully available to the public of the Corporation or any of its
customers, or any marketing technique or cost method of the Corporation, or any
customer, mailing or supplier list, whether or not maintained by the
Corporation, and whether or not made, developed and/or conceived by Mr. Simonsen
or by others in the employ of the Corporation. All originals and copies of any
of the foregoing, relating to the business of the Corporation, however and
whenever produced, shall be the sole property of the Corporation, not to be
removed from the premises or custody of the Corporation without in each instance
first obtaining written consent or authorization of the Corporation. Upon the
termination of Mr. Simonsen’s engagement hereunder and upon the written request
of any officer of the Corporation for any reason, Mr. Simonsen shall promptly
surrender to the Corporation all copies of any of the foregoing, together with
any other documents, materials, data, information and equipment belonging to or
relating to the Corporation’s business (but not relating to Mr. Simonsen) and in
his possession, custody or control, and Mr. Simonsen shall not thereafter retain
or deliver to any other person, copies of any of the foregoing or any summary or
memorandum thereof. Nothing contained in the section 6 shall be deemed to
prevent Mr. Simonsen (a) from disclosing generally matters relating to his
resignation from the Corporation and the circumstances surrounding such
resignation, or (b) subject to his obligations not to disclose confidential
information of the Corporation, from competing with the business of the
Corporation.

 

7. Mr. Simonsen shall not be subject to the direct supervision or control of any
employee of the Corporation, but rather shall be given direction in accordance
with the terms of this Agreement with the direction to carry out such direction
as an independent contractor. No employment or agency is intended hereby. Mr.
Simonsen shall not be authorized to represent the Corporation except as
expressly set forth herein and shall have no authority whatsoever to legally
bind the Corporation to any contract or agreement of any kind or nature.

 

8. All notices required or permitted to be given under this Agreement shall be
in writing and sent by certified mail, return receipt requested, as follows:

 

If to the Corporation:    Beverly National Corporation      240 Cabot Street  
   Beverly, MA 01915

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If to Mr. Simonsen:    Mr. Peter E. Simonsen      24 Dartmouth Street     
Beverly, MA 01915

 

Either party may change the address to which a notice shall be sent by giving
the other party notice of such change in accordance with this Section. All
notices shall be deemed given when deposited in the mail in accordance with this
Section.

 

9. In the event that the Corporation shall be merged with, consolidated into, or
acquired by any other corporation or entity, or in the event that it shall sell
and transfer substantially all of its assets to another corporation or entity,
the terms of this Agreement will inure to the benefit of, and be assumed by, the
corporation or other entity resulting from such merger or consolidation, or to
which the Corporation’s assets shall be sold and transferred. This Agreement
shall not be assignable by Mr. Simonsen.

 

10. This Agreement replaces and supercedes the Employment Agreement of February
23, 2000 and Change in Control Agreement dated February 23, 2000 and contains
the entire agreement between the Corporation and Mr. Simonsen with respect to
the subject matter hereof and there have been no oral or other agreements of any
kind whatsoever as a condition precedent or inducement to the signing of this
Agreement or otherwise concerning this Agreement or the subject matter hereof.

 

11. Mr. Simonsen recognizes and agrees that the Corporation’s remedy at law for
any breach of the provisions of this Agreement would be inadequate, and he
agrees that for breach of such provisions, the Corporation shall, in addition to
such other remedies as may be available to it at law or in equity or as provided
in this Agreement, be entitled to injunctive relief and to enforce its rights by
an action for specific performance to the extent permitted by law. Nothing in
this Agreement shall improve any rights or remedies of the Corporation, its
successors or assists to initiate any action against Mr. Simonsen.

 

12. Any waiver of any terms or conditions of this Agreement shall not operate as
a waiver of any other breach of such terms or conditions or any other term or
condition, nor shall any failure to enforce any provision hereof operate as a
waiver of such provision or of any other provisions hereof; provided, however,
that no such written waiver, unless it, by its own terms, explicitly provides to
the contrary, shall be construed to effect a continuing waiver of the provisions
being waived and no such waiver in any instance shall constitute a waiver in any
other instance or for any other purpose or impair the right of the party against
whom such waivers claimed in all other instances or for all other purposes to
require full compliance with such provision. Each of the parties hereto agrees
to execute all such further instruments and documents and to take all such
further action as the other party may reasonably request in order to effectuate
the terms and purposes of this Agreement.

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13. This Agreement may not be amended, nor shall any waiver, change,
modification, consent or discharge be effected except by an instrument in
writing executed by or on behalf of the party against whom enforcement of any
waiver, change, modification, consent or discharge is sought.

 

14. If any provision of this Agreement shall be held or deemed to be, or shall
in fact be, invalid, inoperative or unenforceable as applied to any particular
case in any jurisdiction or jurisdictions, or in all jurisdictions or in all
cases, because of the conflict of any provision with any constitution or statute
or rule of public policy or for any other reason, such circumstance shall have
the effect of rendering the provision or provisions in question, invalid,
inoperative or unenforceable in any other jurisdiction or in any other case or
circumstance or of rendering any other provision or provisions herein contained
invalid, inoperative or unenforceable to the extent that such other provisions
are not themselves actually in conflict with such constitution, statute or rule
of public policy, but this Agreement shall be reformed and construed in any such
jurisdiction or case as if such invalid, inoperative or unenforceable provision
had never been contained herein and such provision reformed so that it would be
valid, operative and enforceable to the maximum extent permitted in such
jurisdiction or in such case.

 

15. This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument, and in pleading or proving any provision of this Agreement,
it shall not be necessary to produce more than one of such counterparts.

 

16. Whenever used herein, the singular number shall include the plural, the
plural shall include the singular, and the use of any gender shall include all
genders.

 

17. This Agreement shall be governed by and construed and enforced in accordance
with the law (other than the law governing conflict of law questions) of the
Commonwealth of Massachusetts.

 

18. Any action to enforce, arising out of, or relating in any way to, any of the
provisions of this Agreement may be brought and prosecuted in such court or
courts located in Massachusetts as is provided by law; and the parties consent
to the jurisdiction of said court or courts located in Massachusetts and to
service of process by registered mail, return receipt requested, or by any other
manner provided by law.

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19. The Corporation and its officers will not issue disparaging statements
concerning Mr. Simonsen and Mr. Simonsen will not issue disparage statements
concerning the Corporation. The Corporation will provide a copy of the reference
letter attached as Exhibit C upon request.

 

Agreed this 29th day of April, 2005.

 

WITNESSES   BEVERLY NATIONAL CORPORATION

 

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  By:  

 

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        Donat A. Fournier     Its:   President and Chief Executive Officer

 

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        WITNESSES        

 

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    Peter E. Simonsen

 

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COMMONWEALTH OF MASSACHUSETTS   )     ) ss. at                      COUNTY OF
ESSEX   )

 

On this          day of April, 2005, before me personally appeared Peter E.
Simonsen, to me known to be the person described in and who executed the
foregoing instrument, and acknowledged that he executed the same as his free act
and deed.

 

In Witness Whereof I hereunto set my hand.

 

 

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Notary Public My Commission Expires:

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COMMONWEALTH OF MASSACHUSETTS   )     ) ss. at                      COUNTY OF
ESSEX   )

 

On this          day of April, 2005, before me appeared Donat A. Fournier to me
personally known, who, being by me duly sworn, did say that he is the President
of Beverly National Corporation and that the seal affixed to the foregoing
instrument is the corporate seal of Beverly National Corporation and that said
instrument was signed and sealed on behalf of Beverly National Corporation by
authority of its Board of Directors and said Donat A. Fournier acknowledged said
instrument to be the free act and deed of Beverly National Corporation.

 

In Witness Whereof I hereunto set my hand.

 

 

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Notary Public My Commission Expires:

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EXHIBIT A

 

GENERAL RELEASE

 

In consideration of the benefits provided to me pursuant to the Resignation and
Consulting Agreement of even date (the “Consulting Agreement”) between Beverly
National Corporation and all of its subsidiary and affiliates (the
“Corporation”) and me, I, Peter E. Simonsen (“Releasor”), make the following
agreements and acknowledgments:

 

1. Except as provided in the accompanying the Consulting Agreement and this
General Release, no promise or inducement has been offered to me in
consideration for my acceptance of the benefits to be provided to me pursuant
thereto. I acknowledge that I have not relied on any representation or
statement, written or oral, not set forth in this General Release or the
Consulting Agreement.

 

2. I acknowledge that I have made the decision to accept the Consulting
Agreement and General Release freely, voluntarily, knowingly and with the
benefit of legal counsel. I recognize that in agreeing to accept the separation
benefits, I am waiving any claims I may have against the Corporation, including,
but not limited to, any rights which I may have pursuant to my Employment
Agreement or Change in Control Agreement dated February 23, 2000 with the
Corporation.

 

3. General Release and Waiver. In consideration for the special benefits
provided under the Agreement, I release and discharge the Corporation and its
successors, subsidiaries, employees, officers, agents and directors, and the
trustees and administrators of any plan or benefit listed in the Consulting
Agreement (collectively referred to as the “Releasee”) from any and all charges,
causes of action, suits, debts, liabilities and any and all other claims of
every kind (including without limitation, any and all rights, claims and
entitlement which I have or may have under any employment agreement or benefit
plan or contract made by and between the Releasee and the undersigned other than
the Consulting Agreement and including, without limitation, any claims, demands
and causes of action for compensatory damages for financial harm suffered by the
Releasor, punitive damages, demands and causes of action under federal or state
law, regulation or decision, or any actions or claims arising under any and all
laws of the Commonwealth of Massachusetts, Title VII of the Civil Rights Act of
1964, as amended, 42 U.S.C. §2000e, et seq.; or based upon physical or mental
disability, The Americans With Disabilities Act, 42 U.S.C. §12101, et seq.; the
Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. §621, et
seq., and regulations issued thereunder; the Civil Rights Act of 1866, 42 U.S.C.
§1981; the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. §201, et
seq.; State and Federal Insurance Continuation Laws; including any claims,
demands, or causes of action to recover attorney fees, or costs permitted under
any statute, regulation or State or Federal law), known or unknown, arising or
which may have existed prior to the date I sign this document.

 

NOTICE: THIS AGREEMENT INVOLVES THE RELEASE OF LEGAL RIGHTS YOU MAY HAVE AGAINST
THE CORPORATION. IT IS A BINDING LEGAL DOCUMENT. YOU ARE ENCOURAGED TO DISCUSS
THIS DOCUMENT WITH YOUR

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ATTORNEY PRIOR TO SIGNING BELOW. IN ANY EVENT, YOU SHOULD THOROUGHLY REVIEW AND
UNDERSTAND THE EFFECT OF THIS AGREEMENT BEFORE ACTING ON IT. THEREFORE, PLEASE
TAKE THIS AGREEMENT HOME AND CONSIDER IT BEFORE YOU DECIDE TO SIGN IT. IF YOU
HAVE ANY QUESTIONS, PLEASE HAVE THEM ANSWERED BEFORE SIGNING BELOW.

 

 

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Date    Peter E. Simonsen

 

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Witness    Date    

 

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Witness    Date          BEVERLY NATIONAL CORPORATION

 

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   By:  

 

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Date        Donat A. Fournier      Its:   President and Chief Executive Officer

 

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Witness    Date    

 

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Witness    Date    

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EXHIBIT B

 

SCHEDULE OF PAYMENTS

 

1. Within five (5) business days of execution of this Agreement and the
effectiveness of the General Release attached as Exhibit A, Mr. Simonsen shall
be paid a lump sum amount equal to twelve months’ base annual salary as in
effect as of the date of such termination, payable within five (5) business
days, ($127,300.16) plus the value of accrued vacation ($3,060.10);

 

2. During the period through April 30, 2006, Mr. Simonsen shall be entitled to
all group insurance (including life (death benefit at two (2) times annual
salary), health, accident and disability insurance) and all other employee
benefit plans, programs or arrangements (other than the Bank’s retirement plan,
the Bank’s profit-sharing plan, the Bank’s 401(K) plan, and the Beverly National
Corporation Employee Stock Ownership Plan), in which Mr. Simonsen participated
at any time during the twelve months preceding such termination, at the Bank’s
sole expense; and

 

3. Payment of an aggregate of $32,820.90 to be paid in arrears in twelve (12)
monthly installments of $2,735.08 each.