Peter Crocitto Change in Control Agreement




	



November 30, 2004 



AMENDED AND RESTATED 

CHANGE IN CONTROL AGREEMENT 
(PETER CROCITTO)
2004 



        
        THIS
AMENDED AND RESTATED CHANGE IN CONTROL AGREEMENT (this “Agreement”), is
made as of this 30th day of November, 2004, among VALLEY NATIONAL BANK
(“Bank”), a national banking association with its principal office at
1455 Valley Road, Wayne, New Jersey, VALLEY NATIONAL BANCORP (“Valley”),
a New Jersey corporation which maintains its principal office at 1455 Valley Road, Wayne,
New Jersey (Valley and the Bank collectively are the “Company”) and
PETER CROCITTO (the “Executive”). 



BACKGROUND 



        
        WHEREAS,
the Executive has been employed by Valley and the Bank for many years; 



        
        WHEREAS,
 the  Executive  throughout  his tenure has worked  diligently  in his  position  in the
business of the Bank and Valley; 



        
        WHEREAS,
the Board of Directors of the Bank and Valley (either one, the “Board of
Directors” and, together the “Company Boards”) believe that the
future services of the Executive are of great value to the Bank and Valley and that it is
important for the growth and development of the Bank that the Executive continue in his
position; 



        
        WHEREAS,
if the Company receives any proposal from a third person concerning a possible business
combination with, or acquisition of equities securities of, the Company, the Company
Boards believe it is imperative that the Company and the Company Boards be able to rely
upon the Executive to continue in his position, and that they be able to receive and rely
upon his advice, if they request it, as to the best interests of the Company and its
shareholders, without concern that the Executive might be distracted by the personal
uncertainties and risks created by such a proposal; 

















	




        
        WHEREAS,
to achieve that goal, and to retain the Executive’s services prior to any such
activity, the Board of Directors and the Executive have agreed to enter into this
Agreement to govern the Executive’s termination benefits in the event of a Change in
Control of the Company, as hereinafter defined; and 



        
        WHEREAS,
the Executive and the Company had entered into a Change in Control Agreement dated as of January
1, 1998, which was amended and restated on January 1, 1999, and have agreed to further
amend and restate that agreement with this Agreement. 



        
        NOW,
THEREFORE, to assure the Company that it will have the continued dedication of the
Executive and the availability of his advice and counsel notwithstanding the possibility,
threat or occurrence of an acquisition or a bid to take over control of the Company, and
to induce the Executive to remain in the employ of the Company, and for other good and
valuable consideration, the Company and the Executive, each intending to be legally bound
hereby, agree as follows: 



        1.        Definitions 



        
                   a.            Cause.
For purposes of this Agreement “Cause” with           respect to the
termination by the Company of Executive’s employment shall           mean (i)
willful and continued failure by the Executive to perform his duties           for the
Company under this Agreement after at least one warning in writing from           the
Board of Directors identifying specifically any such failure; (ii) the           willful
engaging by the Executive in misconduct which causes material injury to           the
Company as specified in a written notice to the Executive from the Board of
          Directors; or (iii) conviction of a crime (other than a traffic violation),
          habitual drunkenness, drug abuse, or excessive absenteeism (other than for
          illness), after a warning (required with respect to drunkenness or absenteeism
          only) in writing from the Board of Directors to refrain from such behavior. No
          act or failure to act on the part of the Executive shall be considered willful
          unless done, or omitted to be done, by the Executive not in good faith and
          without reasonable belief that the action or omission was in the best interests
          of the Company.  


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                   b.            Change
in Control. “Change in Control” means any of the           following
events: (i) when Valley or a Valley Subsidiary acquires actual           knowledge that
any person (as such term is used in Sections 13(d) and 14(d)(2)           of the Exchange
Act), other than an affiliate of Valley or a Valley Subsidiary           or an employee
benefit plan established or maintained by Valley, a Valley           Subsidiary or any of
their respective affiliates, is or becomes the beneficial           owner (as defined in
Rule 13d-3 of the Exchange Act) directly or indirectly, of           securities of Valley
representing more than twenty-five percent (25%) of the           combined voting power
of Valley’s then outstanding securities (a           “Control Person”);




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(ii)      upon
the first purchase of           Valley’s common stock pursuant to a tender or
exchange offer (other than a           tender or exchange offer made by Valley, a Valley
Subsidiary or an employee           benefit plan established or maintained by Valley, a
Valley Subsidiary or any of           their respective affiliates); (iii) the
consummation of (A) a transaction, other           than a Non-Control Transaction,
pursuant to which Valley is merged with or into,           or is consolidated with, or
becomes the subsidiary of another corporation, (B) a           sale or disposition of all
or substantially all of Valley’s assets or (C) a           plan of liquidation or
dissolution of Valley; (iv) if during any period of two           (2) consecutive years,
individuals (the “Continuing Directors”)           who at the beginning
of such period constitute the Board of Directors of Valley           (the “Valley
Board”) cease for any reason to constitute at           least 60% thereof or,
following a Non-Control Transaction, 60% of the board of           directors of the
Surviving Corporation; provided that any individual           whose election or
nomination for election as a member of the Valley Board (or,           following a
Non-Control Transaction, the board of directors of the Surviving           Corporation)
was approved by a vote of at least two-thirds of the Continuing           Directors then
in office shall be considered a Continuing Director; or (v) upon           a sale of (A)
common stock of the Bank if after such sale any person (as such           term is used in
Section 13(d) and 14(d)(2) of the Exchange Act) other than           Valley, an employee
benefit plan established or maintained by Valley or a Valley           Subsidiary, or an
affiliate of Valley or a Valley Subsidiary, owns a majority of           the Bank’s
common stock or (B) all or substantially all of the Bank’s           assets (other
than in the ordinary course of business). For purposes of this           paragraph: (I)
Valley will be deemed to have become a subsidiary of another           corporation if any
other corporation (which term shall include, in addition to a           corporation, a
limited liability company, partnership, trust, or other           organization) owns,
directly or indirectly, 50 percent or more of the total           combined outstanding
voting power of all classes of stock of Valley or any           successor to Valley; (II)
“Non-Control Transaction” means a           transaction in which Valley
is merged with or into, or is consolidated with, or           becomes the subsidiary of
another corporation pursuant to a definitive agreement           providing that at least
60% of the directors of the Surviving Corporation           immediately after the
transaction are persons who were directors of Valley on           the day before the
first public announcement relating to the transaction;           (III) the “Surviving
Corporation” in a transaction in           which Valley becomes the subsidiary
of another corporation is the ultimate           parent entity of Valley or Valley’s
successor; (IV) the “Surviving Corporation” in any other transaction
pursuant to which Valley is           merged with or into another corporation is the
surviving or resulting           corporation in the merger or consolidation; and (V) “Valley
          Subsidiary” means any corporation in an unbroken chain of
corporations,           beginning with Valley, if each of the corporations other than the
last           corporation in the unbroken chain owns stock possessing 50% or more of the
total           combined voting power of all classes of stock in one of the other
corporations           in such chain.  



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                   c.            Contract
Period. “Contract Period” shall mean the period           commencing
the day immediately preceding a Change in Control and ending on the           earlier of
(i) the third anniversary of the Change in Control or (ii) the date           the
Executive would attain age 65 or (iii) the death of the Executive. For the
          purpose of this Agreement, a Change in Control shall be deemed to have occurred
          at the date specified in the definition of Change in Control.  



        
                   d.            Exchange
Act. “Exchange Act” means the Securities           Exchange Act of
1934, as amended. 



        
                   e.                 Good
Reason. When used with reference to a voluntary termination by           Executive of
his employment with the Company, “Good Reason”          shall mean any
of the following, if taken without Executive’s express prior           written
consent:  



        
                                   (1)                      The
assignment to Executive of any duties inconsistent with, or the reduction of
          powers or functions associated with, Executive’s position, title, duties,
          responsibilities and status with the Company immediately prior to a Change in
          Control; any removal of Executive from, or any failure to re-elect Executive
to,           any position(s) or office(s) Executive held immediately prior to such
Change in           Control.  



        
                                   (2)                      A
reduction by the Company in Executive’s annual base compensation as in
          effect immediately prior to a Change in Control or the failure to award
          Executive annual increases in accordance herewith;  



        
                                   (3)                      A
failure by the Company to continue any bonus plan in which Executive
          participated immediately prior to the Change in Control (except that the
Company           may institute plans, programs or arrangements providing the Executive
          substantially similar benefits) or a failure by the Company to continue
          Executive as a participant in such plans on at least the same basis as
Executive           participated in such plan prior to the Change in Control; or a
failure to pay           the Executive the bonus provided for in Section 4.b hereof at
the time and in           the manner therein specified;  



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                                   (4)                      The
Company’s transfer of Executive to another geographic location outside           of
New Jersey or more than 25 miles from his present office location, except for
          required occasional travel on the Company’s business to an extent
          consistent with Executive’s business travel obligations immediately prior
          to such Change in Control;  



        
                                   (5)                      The
failure by the Company to continue in effect any employee benefit plan,           program
or arrangement (including, without limitation the Company’s           retirement
plan, benefit equalization plan, life insurance plan, health and           accident plan,
disability plan, deferred compensation plan or long term stock           incentive plan)
in which Executive is participating immediately prior to a           Change in Control
(except that the Company may institute or continue plans,           programs or
arrangements providing Executive with substantially similar           benefits); the
taking of any action by the Company which would adversely affect           Executive’s
participation in or materially reduce Executive’s benefits           under, any of
such plans, programs or arrangements; the failure to continue, or           the taking of
any action which would deprive Executive, of any material fringe           benefit
enjoyed by Executive immediately prior to such Change in Control; or the
          failure by the Company to provide Executive with the number of paid vacation
          days to which Executive was entitled immediately prior to such Change in
          Control;  



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                                   (6)                      The
failure by the Company to obtain an assumption in writing of the obligations           of
the Company to perform this Agreement by any successor to the Company and to
          provide such assumption to the Executive prior to any Change in Control; or  



        
                                   (7)                      Any
purported termination of Executive’s employment by the Company during           the
term of this Agreement which is not effected pursuant to all of the
          requirements of this Agreement; and, for purposes of this Agreement, no such
          purported termination shall be effective.  



        
        2.       Employment.
The Company hereby agrees to employ the Executive, and the           Executive hereby
accepts employment, during the Contract Period upon the terms           and conditions
set forth herein.  



        
        3.       Position.
During the Contract Period the Executive shall be employed as           Executive Vice
President of Valley and the Bank, or such other corporate or divisional profit center as
shall then be the principal successor to the business, assets and properties of the
Company, with the same title and with the same duties and responsibilities as before the
Change in Control. The Executive shall devote his full time and attention to the business
of the Company, and shall not during the Contract Period be engaged in any other business
activity. This paragraph shall not be construed as preventing the Executive from managing
any investments of his which do not require any service on his part in the operation of
such investments or from continuing to serve on any boards of directors or trustees which
he served prior to the Change in Control or for which consent is provided by the Valley
Board after a Change in Control.  



        
        4.       Cash
Compensation. The Company shall pay to the Executive compensation           for his
services during the Contract Period as follows:  



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                   a.            Base
Salary. A base annual salary equal to the annual salary in effect as           of the
Change in Control. The annual salary shall be payable in installments in
          accordance with the Company’s usual payroll method.  



        
                   b.            Annual
Bonus. An annual cash bonus equal to at least the average of the           bonuses
paid to the Executive in the three years prior to the Change in Control.           The
bonus shall be payable at the time and in the manner which the Company paid
          such bonuses prior to the Change in Control.  



        
                   c.            Annual
Review. The Board of Directors during the Contract Period shall           review
annually, or at more frequent intervals which the Board of Directors           determines
is appropriate, the Executive’s compensation and shall award him
          additional compensation to reflect the Executive’s performance, the
          performance of the Company and competitive compensation levels, all as
          determined in the discretion of the Board of Directors.  



        
        5.       Expenses
and Fringe Benefits.  



        
                   a.            Expenses.
During the Contract Period, the Executive shall be entitled to           reimbursement
for all business expenses incurred by him with respect to the           business of the
Company in the same manner and to the same extent as such           expenses were
previously reimbursed to him immediately prior to the Change in           Control.  



        
                   b.            Benefit
Equalization Plan. During the Contract Period, if the Executive           was
entitled to benefits under the Company’s Benefit Equalization Plan           (“BEP”)
prior to the Change in Control, the Executive shall be           entitled to continued
benefits under the BEP after the Change in Control and           such BEP may not be
modified or terminated to reduce or eliminate such benefits           during the Contract
Period.  




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                   c.            Club
Membership and Automobile. If prior to the Change in Control, the           Executive
was entitled to membership in a country club and/or the use of an           automobile,
during the Contract Period he shall be entitled to the same           membership and/or
use of an automobile at least comparable to the automobile           provided to him
prior to the Change in Control.  



        
                   d.            Other
Benefits. During the Contract Period, the Executive also shall be           entitled
to vacations and sick days, in accordance with the practices and           procedures of
the Company, as such existed immediately prior to the Change in           Control. During
the Contract Period, the Executive also shall be entitled to           hospital, health,
medical and life insurance, and any other benefits enjoyed,           from time to time,
by senior officers of the Company, all upon terms as           favorable as those enjoyed
by other senior officers of the Company.           Notwithstanding anything in this
paragraph 5(d) to the contrary, if the Company           adopts any change in the
benefits provided for senior officers of the Company,           and such policy is
uniformly applied to all officers of the Company (and any           successor or acquiror
of the Company, if any), including the chief executive           officer of such
entities, then no such change shall be deemed to be contrary to           this paragraph.  



        
        6.       Termination
for Cause. During the Contract Period, the Company shall have           the right to
terminate the Executive for Cause, upon written notice to him of           the
termination which notice shall specify the reasons for the termination. In           the
event of termination for Cause the Executive shall not be entitled to any
          further compensation or benefits under this Agreement.  



        
        7.       Disability.
During the Contract Period if the Executive becomes           permanently disabled, or is
unable to perform his duties hereunder for 4           consecutive months, the Company
may terminate the employment of the Executive.           In such event, the Executive
shall be paid within 10 days of termination a lump           sum equal to the highest
annual salary (including 401(k) plan deferral) paid to           the Executive during any
calendar year in each of the three calendar years           immediately prior to the
Change in Control, but shall not be entitled to any           further compensation or
benefits under this Agreement, except as provided in the           next sentence and in
Section 12. If the Company fails to pay the Executive the           lump sum amount due
him under this Section 7 or the payments under Section 12,           the Executive, after
giving 10 days’ written notice to the Company           identifying the Company’s
failure, shall be entitled to recover from the           Company on a monthly basis as
incurred all of his reasonable legal fees and           expenses incurred in connection
with his enforcement against the Company of the           terms of this Agreement. The
Executive shall be denied payment of his legal fees           and expenses only if a
court finds that the Executive sought payment of such           fees without reasonable
cause and not in good faith.  


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        8.       Death
Benefits. During the Contract Period (defined without regard to his           death),
upon the Executive’s death his estate shall be paid within 20           business
days of his death a lump sum equal to the highest annual salary           (including
401(k) plan deferral) paid to the Executive during any calendar year           in each of
the three calendar years immediately prior to the Change in Control,           but shall
not be entitled to any further compensation or benefits under this           Agreement,
except as provided in the next sentence and in Section 12. If the           Company fails
to pay the Executive’s estate the lump sum amount due him           under this
Section or the payments under Section 12, the Executive’s           estate, after
giving 10 days’ written notice to the Company identifying the           Company’s
failure, shall be entitled to recover from the Company on a           monthly basis as
incurred all of its reasonable legal fees and expenses incurred           in connection
with its enforcement against the Company of the terms of this           Agreement. The
Executive’s estate shall be denied payment of its legal fees           and expenses
only if a court finds that the Executive sought payment of such           fees without
reasonable cause and not in good faith.  


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        9.       Termination
Without Cause or Resignation for Good Reason. The Company may           terminate the
Executive without Cause during the Contract Period by written           notice to the
Executive providing four weeks notice. The Executive may resign           for Good Reason
during the Contract Period upon four weeks written notice to the           Company
specifying the facts and circumstances claimed to support the Good           Reason. The
Executive shall be entitled to give a Notice of Termination that his           or her
employment is being terminated for Good Reason at any time during the           Contract
Period, not later than twelve months after any occurrence of an event           stated to
constitute Good Reason. If during the Contract Period the Company           terminates
the Executive’s employment without Cause or the Executive           Resigns for Good
Reason, then the Executive shall be entitled to the following:           (i) (subject to
the possible age related reduction in the next sentence) the           Company shall
within 20 business days of the termination of employment pay the           Executive a
lump sum severance payment in an amount equal to three times the           highest annual
compensation, consisting solely of salary (including any 401(k)           plan deferral)
and bonus, paid to (or in the case of bonus accrued for) the           Executive during
any calendar year in each of the three calendar years           immediately prior to the
Change in Control; (ii) the Company shall continue to           provide the Executive for
a period of three years after termination (but not           beyond the date the
Executive reaches age 65) with health, hospitalization and           medical insurance,
as well as life and disability insurance, as were provided at           the time of the
termination of his employment with the Company, at the           Company’s cost
(subject to payment by the Executive of the same           contribution amount and
deductibles as Executive previously paid); (iii) the           Company shall credit
Executive under the BEP immediately upon termination with           additional years of
credited service as if he had continued to work for the           Company for three years
after the date of termination (but not beyond the date           the Executive reaches
age 65  or a total of 35 years of credited service), the benefit plans covered thereby had remained           the same during such
period, and the BEP was not changed or modified after the           Change in Control or
otherwise during such period. After the Executive has           reached age 62, the “three
times” referred to in clause (i) of the           previous sentence shall be reduced
to a number multiplier equal to the quotient           (rounded to the nearest thousand)
the numerator of which is the whole number of           months left until the Executive
reaches age 65 and the denominator of which is           12.  


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        The
Executive shall not have a duty to mitigate the damages suffered by him in connection with
the termination by the Company of his employment without Cause or a resignation for Good
Reason during the Contract Period. If the Company fails to pay the Executive the lump sum
amount due him hereunder or to provide him with the health, hospitalization and medical
insurance, life disability or BEP benefits due under this section or the payments under
Section 12, the Executive, after giving 10 days’ written notice to the Company
identifying the Company’s failure, shall be entitled to recover from the Company on a
monthly basis as incurred all of his reasonable legal fees and expenses incurred in
connection with his enforcement against the Company of the terms of this Agreement. The
Executive shall be denied payment of his legal fees and expenses only if a court finds
that the Executive sought payment of such fees without reasonable cause and not in good
faith. 



        
        10.       Resignation
Without Good Reason. The Executive shall be entitled to           resign from the
employment of the Company at any time during the Contract Period           without Good
Reason, but upon such resignation the Executive shall not be           entitled to any
additional compensation for the time after which he ceases to be           employed by
the Company, and shall not be entitled to any of the other benefits           provided
hereunder. No such resignation shall be effective unless in writing           with four
weeks’ notice thereof.  


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        11.       Non-Disclosure
of Confidential Information.  



        
                   a.            Non-Disclosure
of Confidential Information. Except in the course of his           employment with
the Company and in the pursuit of the business of the Company or           any of its
subsidiaries or affiliates, the Executive shall not, at any time           during or
following the Contract Period, disclose or use, any confidential           information or
proprietary data of the Company or any of its subsidiaries or           affiliates. The
Executive agrees that, among other things, all information           concerning the
identity of and the Company’s relations with its customers           is confidential
information.  



        
                   b.            Specific
Performance. Executive agrees that the Company does not have an           adequate
remedy at law for the breach of this section and agrees that he shall           be
subject to injunctive relief and equitable remedies as a result of the breach
          of this section. The invalidity or unenforceability of any provision of this
          Agreement shall not affect the force and effect of the remaining valid
portions.           No alleged breach of this Section 11 shall give the Company the right
to           withhold or offset against any payments due the Executive under this
Agreement.  



        
                   c.            Survival.
This section shall survive the termination of the           Executive’s employment
hereunder and the expiration of this Agreement.  



        
        12.
Gross Up for Taxes. 



        
                   a.            Additional
Payments. If, for any taxable year, Executive shall be liable           for the
payment of an excise tax under Section 4999 or other substitute or           similar tax
assessment (the “Excise Tax”) of the Internal           Revenue Code of
1986, as amended (the “Code”), including the           corresponding
provisions of any succeeding law, with respect to any payments or           benefits
under Section 9 of this Agreement or Sections 7 or 8 or any other           provision of
this Agreement, including but not limited to this Section 12 or           under any
benefit plan of the Company applicable to Executive individually or           generally
to executives or employees of the Company, then, notwithstanding any           other
provisions of this Agreement, the Company shall pay to the Executive an
          additional amount (the “Gross-Up Payment”) such that the net
          amount retained by the Executive, after deduction of the Excise Tax imposed on
          all such payments and benefits and of the federal, state and local income tax
          and Excise Tax imposed upon payments provided for in this Section 12, shall be
          equal to the payments and benefits due to the Executive hereunder and the
          payments and/or benefits due to the Executive under any benefit plan of the
          Company. Each Gross-Up Payment shall be made to Executive or as provided in
          Section 16 hereof, upon the later of (i) five (5) days after the date the
          Executive notifies the Company of its need to make such Gross-Up Payment, or
          (ii) the date of any payment causing the liability for such Excise Tax. The
          amount of any Gross-Up Payment under this section shall be computed by a
          nationally recognized certified public accounting firm designated jointly by
the           Company and the Executive. The cost of such services by the accounting firm
          shall be paid by the Company. If the Company and the Executive are unable to
          designate jointly the accounting firm, then the firm shall be the accounting
          firm used by the Company immediately prior to the Change in Control.  


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                   b.            IRS
Disputed Claims. The Executive shall notify the company in writing of           any
claim by the Internal Revenue Service (“IRS”) that, if
          successful, would require the payment by the Company of a Gross-Up Payment in
          addition to that payment previously paid by the Company pursuant to this
          section. Such notification shall be given an soon as practicable but no later
          than fifteen (15) business days after the Executive is informed in writing of
          such claim and shall apprise the Company of the nature of such claim, the date
          on which such claim is requested to be paid, and attach a copy of the IRS
          notice. The Executive shall not pay such claim prior to the expiration of the
          thirty (30) day period following the date on which the Executive gives such
          notice to the Company (or such shorter period ending on the date that any
          payment of taxes with respect to such claim is due). If the Company notifies
the           Executive in writing prior to the expiration of such period that it desires
to           contest such claim, the Executive shall:  



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                                   (i)                      Give
the Company any information reasonably requested by the Company  relating
to such claim; 



        
                                   (ii)                      Take
such action in connection with contesting such claim as the  Company
shall reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such claim by an attorney reasonably
selected by the Company; 



        
                                   (iii)                      Cooperate
with the Company in good faith in order effectively to  contest
such claim; and



        
                                   (iv)                      Permit
the Company to participate in any proceedings relating to such  claim;
provided, however that the Company shall pay directly all costs and expenses (including
legal and accounting fees, as well as other expenses and any additional interest and
penalties) incurred by the Executive and the Company in connection with an IRS levy,
contest or claim. 



        
                   c.                      This
Section shall survive the termination of Executive’s employment           hereunder
and the expiration of the Contract Period.  



        
        13.       Term
and Effect Prior to Change in Control.  



        
                   a.            Term.
This Agreement shall commence on the date hereof and shall remain           in effect for
a period of 3 years from the date hereof (the “Initial           Term”)
or until the end of the Contract Period, whichever is later. The           Initial Term
shall be automatically extended for an additional one year period           on the
anniversary date hereof (so that the Initial Term on any anniversary date           is
always 3 years) unless prior to a Change in Control the Chief Executive           Officer
of the Bank notifies the Executive in writing at any time that the           Contract is
not so extended, in which case the Initial Term shall end upon the           later of (i)
3 years after the date hereof, or (ii) 2 years after the date of           such written
notice. Notwithstanding anything to the contrary contained herein,           the Initial
Term shall cease when the Executive reaches age 65.  


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                   b.            No
Effect Prior to Change in Control. This Agreement shall not affect any
          rights of the Company or the Executive prior to a Change in Control or any
          rights of the Executive granted in any other agreement or contract or plan with
          the Company. The rights, duties and benefits provided hereunder shall only
          become effective upon a Change in Control. If the full-time employment of the
          Executive by the Company is ended for any reason prior to a Change in Control,
          this Agreement shall thereafter be of no further force and effect.  



        
        14.       Severance
Compensation and Benefits Not in Derogation of Other Benefits.           Anything to
the contrary herein contained notwithstanding, the payment or           obligation to pay
any monies, or granting of any benefits, rights or privileges           to Executive as
provided in this Agreement shall not be in lieu or derogation of           the rights and
privileges that the Executive now has or will have under any           plans or programs
of or agreements with the Company, except that if the           Executive receives the
lump sum severance payment due under paragraph 9 hereof,           the Executive shall
not be entitled to the lump sum severance payment due under           paragraph 1 of the
Severance Agreement (the “Severance           Agreement”), dated
January 1, 1998, between the Company and the           Executive, or to severance
payments under any other plan or program of the           Company providing for severance
pay, and shall not be entitled to health,           hospital and other benefits under
paragraph 2 of the Severance Agreement to the           extent such post-employment
benefits duplicate benefits provided hereunder.  



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        15.       Notice.
During the Contract Period, any notice of termination of the           employment of the
Executive by the Company or by the Executive to the Company           shall be
communicated by written Notice of Termination to the other party           hereto. For
purposes of this Agreement, a “Notice of           Termination” shall
mean a dated notice which shall (i) indicate the           specific termination provision
in this Agreement relied upon; (ii) set forth, if           necessary, in reasonable
detail the facts and circumstances claimed to provide a           basis for termination
of the employment of the Executive or from the Company           under the provision so
indicated; (iii) specify a date of termination, which           shall be not less than
two weeks nor more than six weeks after such Notice of           Termination is given,
except in the case of termination of employment by the           Company of the Executive
for Cause pursuant to Section 6 hereof, in which case           the Notice of Termination
may specify a date of termination as of the date such           Notice of Termination is
given; and (iv) be given by personal delivery or, if           the individual is not
personally available, by certified mail to the last known           address of the
individual. Upon the death of the Executive, no Notice of           Termination need be
given.  



        
        16.       Payroll
and Withholding Taxes. All payments to be made or benefits to be           provided
hereunder by the Company shall be subject to applicable federal and           state
payroll or withholding taxes. Any Gross-Up Payment to be made by the           Company
may be made in the form of withholding taxes, but shall be timely           directed to
the IRS (or any state division of taxation) on the Executive’s           behalf.  



        
        17.       Miscellaneous.
This Agreement is the joint and several obligation of the           Bank and Valley. The
terms of this Agreement shall be governed by, and           interpreted and construed in
accordance with the provisions of, the laws of New           Jersey. Except as set forth
herein, this Agreement supersedes all prior           agreements and understandings with
respect to the matters covered hereby,           including expressly any prior agreement
with the Company concerning Change in           Control benefits. The parties hereto
expressly agree that the Amended and           Restated Change in Control Agreement among
the Executive, the Bank and Valley,           dated as of January 1, 1999, is hereby
terminated, effective the date hereof.           Except as expressly specified in Section
14 with regard to the Severance           Agreement, this Agreement does not effect or
reduce the benefits or obligations           of the parties under the Severance Agreement
(or any supplement or amendment to           or replacement for that Agreement).


17

















	


 The
amendment or termination of this           Agreement may be made only in a writing
executed by the Company and the           Executive, and no amendment or termination of
this Agreement shall be effective           unless and until made in such a writing. This
Agreement shall be binding upon           any successor (whether direct or indirect, by
purchase, merge, consolidation,           liquidation or otherwise) to all or
substantially all of the assets of the           Company. This Agreement is personal to
the Executive and the Executive may not           assign any of his rights or duties
hereunder but this Agreement shall be           enforceable by the Executive’s legal
representatives, executors or           administrators. This Agreement may be executed in
two or more counterparts, each           of which shall be deemed an original, and it
shall not be necessary in making           proof of this Agreement to produce or account
for more than one such           counterpart.  


18

















	



        
        IN
WITNESS WHEREOF, Valley National Bank and Valley National Bancorp each have caused this
Agreement to be signed by their duly authorized representatives pursuant to the authority
of their respective Boards of Directors, and the Executive has personally executed this Agreement,
all as of the day and year first written above. 














	ATTEST:



  
——————————————

                                          , Secretary
 		VALLEY NATIONAL BANCORP



By:  
——————————————

    Robert McEntee, Chairman of
    the Compensation Committee







	ATTEST:



  
——————————————

                                          , Secretary
 		VALLEY NATIONAL BANK



By:  
——————————————

    Robert McEntee, Chairman of
    the Compensation Committee






	WITNESS:



  
——————————————

            
 		




——————————————

Peter Crocitto, Executive






	



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