Document:

ex101_8k-110316.htm

EXHIBIT 10.1

 

EMPLOYMENT AGREEMENT

 

BETWEEN

 

BCB COMMUNITY BANK AND JOSEPH JAVITZ 

 

This Employment Agreement (the “Agreement”) is made effective as of the 1st day of July, 2016 (the “Effective Date”), by and between BCB COMMUNITY BANK, a New Jersey state-chartered bank (the “Bank”), with its principal offices at 595 Avenue C, Bayonne, New Jersey, and JOSEPH JAVITZ (“Executive”). Any reference to the “Company” shall mean BCB Bancorp, Inc., or any successor thereto.

 

WHEREAS, the Bank wishes to assure itself of the services of Executive for the period provided in this Agreement; and

 

WHEREAS, in order to induce Executive to remain in the employ of the Bank and to provide further incentive for Executive to achieve the financial and performance objectives of the Bank, the parties desire to enter into this Agreement; and

 

WHEREAS, the Bank desires to set forth the rights and responsibilities of Executive and the compensation payable to Executive, as modified from time to time.

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained, and upon the other terms and conditions hereinafter provided, the parties hereby agree as follows:

 

 

1.    POSITION AND RESPONSIBILITIES

 

During the term of this Agreement, Executive agrees to serve as Chief Lending Officer of the Bank (the “Executive Position”), and will perform all duties and will have all powers associated with such position as set forth in the Job Description provided to Executive by the Bank and as may be set forth in the Bylaws of the Bank.  The Job Description is attached hereto as Exhibit A. In addition, Executive shall be responsible for establishing the business objectives, policies and strategic plans of the Bank, in conjunction with the Board of Directors of the Bank (“Board”).  During the term of the Agreement, Executive also agrees to serve, if elected, as an officer and/or director of any subsidiary or affiliate of the Bank and in such capacity carry out such duties and responsibilities reasonably appropriate to that office.

 

2.        TERM AND ANNUAL REVIEW

 

a. Term.  The term of this Agreement will begin as of the Effective Date and will continue until the close of business on June 30, 2017.

 

b.  Annual Review.  On an annual basis, at least thirty (30) and not more than sixty (60) days prior to the end of the term of this Agreement, the compensation committee (the “Committee”) designated by the Board will conduct a comprehensive performance evaluation and review of Executive’s performance, and the results thereof will be included in the Minutes of the Committee's meeting.

 

  

  

  

c.  Continued Employment Following Expiration of Term.  Nothing in this Agreement shall mandate or prohibit a continuation of Executive’s employment following the expiration of the term of this Agreement, upon such terms and conditions as the Bank and Executive may mutually agree.

 

3.PERFORMANCE OF DUTIES

 

During the period of his employment hereunder, except for periods of absence occasioned by illness, reasonable vacation periods, and reasonable leaves of absence, Executive will devote all of his business time, attention, skill and efforts to the faithful performance of his duties under this Agreement, including activities and duties directed by the Board.  Notwithstanding the preceding sentence, subject to the approval of the Board, Executive may serve as a member of the board of directors of business, community and charitable organizations, provided that in each case such service shall not materially interfere with the performance of his duties under this Agreement, adversely affect the reputation of the Bank or any other affiliates of the Bank, or present any conflict of interest.  Executive will present annually to the Board for its review and approval, a list of organizations in which Executive is participating or proposes to participate.  Such service to and participation in outside organizations will be presumed for these purposes to be for the benefit of the Bank, and the Bank will reimburse Executive his reasonable expenses associated therewith, to the extent Executive’s expenses are not reimbursed by such organizations.

4. COMPENSATION AND REIMBURSEMENT

 

a.       Base Salary.  In consideration of Executive’s performance of the responsibilities and duties set forth in Section 1, the Bank will provide Executive the compensation specified in this Agreement.  The Bank will pay Executive a salary of $220,000 for the term of this Agreement (“Base Salary”).  Such Base Salary will be payable in accordance with the customary payroll practices of the Bank.

 

b.       Bonus and Incentive Compensation.  Executive shall be eligible to receive up to fifty (50%) percent of his Base Salary in a performance bonus for the term of this Agreement. After due consideration, and in recognition of the Executive’s performance for the calendar year 2015, the Executive has been awarded a bonus of $75,000.

 

In addition, Executive may be entitled to participate in any other incentive compensation and bonus plans or arrangements of the Bank or the Company.  Any incentive compensation will be paid in cash in accordance with the terms of such plans or arrangements, or on a discretionary basis by the Committee.  Nothing paid to Executive under any such plans or arrangements will be deemed to be in lieu of other compensation to which Executive is entitled under this Agreement.

 

c.       Benefit Plans.  Executive will be entitled to participate in all employee benefit plans, arrangements and perquisites offered to employees and executives of the Company or the Bank.  Without limiting the generality of the foregoing provisions of this Section 4(c), Executive also will be entitled to participate in any employee benefit plans including, but not limited to, stock benefit plans, retirement plans, supplemental retirement plans, pension plans, profit-sharing plans, health-and-accident plans, or any other employee benefit plan or arrangement made available by the Bank in the future to its senior executives and key management employees, subject to and on a basis consistent with the terms, conditions and overall administration of such plans and arrangements.

 

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d.       Health, Dental, Life and Disability Coverage.  The Bank shall provide Executive with life, medical, dental and disability coverage made available by the Bank to its senior executives and key management employees, subject to and on a basis consistent with the terms, conditions and overall administration of such coverage.

 

e.       Vacation and Leave.  Executive will be entitled to paid vacation time each year during the term of this Agreement measured on a fiscal or calendar year basis, in accordance with the Bank’s customary practices, as well as sick leave, holidays and other paid absences in accordance with the Bank’s policies and procedures for senior executives.  Any unused paid time off during an annual period will be treated in accordance with the Bank’s personnel policies as in effect from time to time.

 

f.    Expense Reimbursements.  The Bank will reimburse Executive for all reasonable travel, entertainment and other reasonable expenses incurred by Executive during the course of performing his obligations under this Agreement, including, without limitation, fees for memberships in such organizations as Executive and the Board mutually agree are necessary and appropriate in connection with the performance of his duties under this Agreement, upon substantiation of such expenses in accordance with applicable policies and procedures of the Bank.  All reimbursements pursuant to this Section 4(f) shall be paid promptly by the Bank and in any event no later than March 15 of the year immediately following the year in which the expense was incurred.   

5.WORKING FACILITIES 

 

Executive’s principal place of employment will be at such place as directed by the Board.  The Bank will provide Executive at his principal place of employment with a private office, secretarial and other support services and facilities suitable to his position with the Bank and necessary or appropriate in connection with the performance of his duties under this Agreement.

 

6.   TERMINATION AND TERMINATION PAY  

 

Subject to Section 7 of this Agreement which governs the occurrence of a Change in Control, Executive’s employment under this Agreement may be terminated in the following circumstances:

 

a.       Death.  Executive’s employment under this Agreement will terminate upon his death during the term of this Agreement, in which event Executive’s estate or beneficiary will receive the compensation due to Executive through the last day of the calendar month in which his death occurred, and the Bank will continue to provide to Executive’s family for one (1) year after Executive’s death non-taxable medical and dental coverage substantially comparable (and on substantially the same terms and conditions) to the coverage maintained by the Bank for Executive and his family immediately prior to Executive’s death.

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b.   Retirement.  This Agreement will terminate upon Executive’s “Retirement” under the retirement benefit plan or plans of the Bank in which he participates.  Executive will not be entitled to the termination benefits specified in Section 6 or 7 hereof in the event of termination due to Retirement.  For purposes of this Agreement, termination of Executive’s employment based on Retirement shall include termination of Executive’s employment by the Board for any reason after Executive attains the age of sixty-five (65) or in accordance with any retirement arrangement established by the Board with Executive’s consent.

 

c.   Disability.

 

	
(i)  

	
Termination of Executive’s employment based on “Disability” shall mean termination because of any permanent and total physical or mental impairment that restricts Executive from performing all the essential functions of normal employment.  A determination as to whether Executive has suffered a Disability shall be made by the Board with objective medical input.  In the event of termination due to Disability, Executive will be entitled to disability benefits, if any, provided under a long term disability plan sponsored by the Bank, if any.

 

	
(ii)  

	
In the event the Board determines that Executive is Disabled, Executive will no longer be obligated to perform services under this Agreement.  Upon Executive’s termination due to Disability, the Bank will cause to continue to provide to Executive life insurance and non-taxable medical and dental coverage substantially comparable (and on substantially the same terms and conditions) to the coverage maintained by the Company or the Bank for Executive immediately prior to his termination for Disability.  This coverage shall cease upon the earlier of (i) three (3) years from the date of termination, or (ii) the date Executive becomes eligible for Medicare coverage; provided further that if Executive is covered by family coverage or coverage for self and spouse, then Executive’s family or spouse shall continue to be covered for the remainder of the three (3) year period, or in the case of the spouse, until the spouse becomes eligible for Medicare coverage or obtains health care coverage elsewhere, whichever period is less.

 

d.   Termination for Cause.

 

	
 
(i)  

 

	
The Board may by written notice to Executive in the form and mannerspecified in this paragraph, immediately terminate his employment at anytime for cause (“Cause”). Executive shall have no right to receivecompensationor other benefits for any period after termination for Cause, except for vested benefits. Termination for Cause shall mean termination (as determined by the Board in good faith) because of the Executive’s:

 

(1)   material act of dishonesty in performing Executive’s duties on behalf of the Bank;

 

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(2)  

	
willful misconduct that, in the judgment of the Board, will likely cause material economic damage to the Bank or injury to the business reputation of the Bank;

 

	
(3)  

	
incompetence (in determining incompetence, the acts or omissions shall be measured against standards generally prevailing in the commercial banking  industry);

 

	
(4)  

	
breach of fiduciary duty;

 

	
(5)  

	
intentional failure to perform stated duties under this Agreement after written notice thereof from the Board;

 

	
(6)  

	
willful violation of any law, rule or regulation (other than traffic violations or similar offenses) that reflect adversely on the reputation of the Bank, any felony conviction, any violation of law involving moral turpitude, or any violation of a regulatory order;

 

	
(7)  

	
material breach of any provision of this Agreement; or,

 

	
(8)  

	
failure to satisfy the requirements set forth in the Executive’s Job Description.

 

(ii)           Executive’s termination for Cause will not become effective unlessthe Board has delivered to Executive a copy of a notice of termination inaccordance with Section 8(a) hereof.  Executive shall not be deemed tohave been terminated for Cause unless and until there shall have been delivered to the Executive a notice of termination, which shall include a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the disinterested members of the Board, stating that the Executive wasguilty of the conduct described above and specifying the particulars of such conduct.

 

e.           Voluntary Termination by Executive.  In addition to the Executive's other rights to terminate his/her employment under this Agreement, the Executive may voluntarily terminate his/her employment during the term of this Agreement upon at least sixty (60) days prior written notice to the Board. Upon Executive’s voluntary termination, he/she will receive only his/her compensation and vested rights and benefits to the date of his/her termination. Following his/her voluntary termination of employment under this Section 6(e), the Executive will be subject to the restrictions set forth in Section 9 of this Agreement.

 

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f.           Termination Without Cause.

 

	
                          (i)   

	
The Board may, by written notice to Executive, immediately terminate his employment at any time for a reason other than for cause (a termination “Without Cause”). Any termination of Executive’s employment, other than Termination for Cause, shall have no effect on or prejudice the vested rights of Executive under the Bank’s qualified or non-qualified retirement, pension, savings, thrift, profit-sharing or stock bonus plans, group life, health (including hospitalization, medical and major medical), dental, accident and long term disability insurance plans or other employee benefit plans or programs, or compensation plans or programs in which Executive was a participant.

 

	
(ii)  

	
 
In the event of termination under this Section 6(f) the Bank shall pay Executive, or in the event of Executive’s subsequent death, Executive’s beneficiary or estate, as severance pay, a cash lump sum payment equal to his Base Salary. Such payment shall be payable within thirty (30) days following Executive’s date of termination, and willbe subject to applicable withholding taxes.

 

	
(iii)   

	
In addition, the Bank will continue to provide to Executive life insurance coverage and non-taxable medical and dental insurance coverage substantially comparable (and on substantially the same terms and conditions) to the coverage maintained by the Bank for Executive immediately prior to his termination. Such life insurance coverage and non-taxable medical and dental insurance coverage shall cease upon the earlier of (i) the end of the term of this Agreement, or (ii) with respect to each such coverage (e.g., life insurance, medical and/or dental coverage), the date on which such substantially comparable coverage is made available to the Executive through subsequent employment.

 

 

g.           Termination and Board Membership.  To the extent Executive is a member of the board of directors of the Company, the Bank or any of their affiliates on the date of termination of employment with the Bank (other than a termination due to Retirement), Executive will resign from all of the boards of directors immediately following such termination of employment with the Bank.  Executive will be obligated to tender this resignation regardless of the method or manner of termination (other than termination due to Retirement), and such resignation will not be conditioned upon any event or payment.

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7.CHANGE IN CONTROL

 

a.           Change in Control Defined.  For purposes of this Agreement, a “Change in Control” shall mean a change in the effective control of the Company or Bank, as described below.

 

(i)           A change in the effective control of the Company or Bank occurs on thedate that (i) any one person, or more than one person acting as a group (as definedin Treasury Regulation 1.409A-3(i)(5)(vi)(D)) acquires (or has acquired duringthe 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company or Bank possessing more than 50 percent of the total voting power of the stock of the Company or Bank, and (ii) a majority of the members of the Company’s or Bank’s board of directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s or Bank’s board of directors prior to the date of the appointment or election.

 

b.           Change In Control Benefits.  Upon the occurrence of a Change in Control, the Bank shall pay Executive a lump-sum cash payment equal to the Base Salary of the Executive at the time of a Change in Control. Such payment shall be payable within thirty (30) days following the date of the Change in Control, and will be subject to all applicable withholding taxes.  Notwithstanding the foregoing, the cash payment made pursuant to this Section 7(b) shall be made in lieu of any cash payments which may be subsequently triggered pursuant to Section 6(f)(ii) hereof.

 

c.           280G Cutback.  Notwithstanding anything in this Agreement to the contrary, in no event shall the aggregate payments or benefits to be made or afforded to Executive under this Agreement, either as a stand-alone benefit or when aggregated with other payments to, or for the benefit of, Executive that are contingent on a Change in Control, constitute an “excess parachute payment” under Section 280G of the Internal Revenue Code (“Code”) or any successor thereto, and in order to avoid such a result, Executive’s benefits hereunder shall be reduced, if necessary, to an amount, the value of which is one dollar ($1.00) less than an amount equal to three (3) times Executive’s “base amount,” as determined in accordance with Code Section 280G.  In the event a reduction is necessary, the cash severance payable pursuant to this Section 7 hereof shall be reduced by the minimum amount necessary to result in no portion of the payments and benefits payable by the Bank under this Section 7 being non-deductible pursuant to Code Section 280G and subject to excise tax imposed under Code Section 4999.

 

           8.NOTICE

 

a.           Notice of Termination.  A “notice of termination” shall mean a written notice which shall indicate the specific termination provision in this Agreement relied upon as a basis for termination of Executive’s employment.

 

b.           Date of Termination.  “Date of termination” shall mean: (i) if Executive’s employment is terminated for Disability, thirty (30) days after a notice of termination is given (provided that he shall not have returned to the performance of his duties on a full-time basis during such thirty (30) day period); or (ii) if Executive’s employment is terminated for any other reason, the date specified in the notice of termination.

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c.           Good Faith Resolution.  If the party receiving a notice of termination desires to dispute or contest the basis or reasons for termination, the party receiving the notice of termination must notify the other party within ten (10) days after receiving the notice of termination that such a dispute exists, and shall pursue the resolution of such dispute in good faith and with reasonable diligence pursuant to Section 17 of this Agreement.  During the ten (10) days after receiving notice of termination and during the pendency of any such dispute, the Bank shall not be obligated to pay Executive compensation or other payments beyond the date of termination.  Any amounts paid to Executive upon resolution of such dispute under this Section shall be offset against or reduce any other amounts which may be due under this Agreement.

 

           9.POST-TERMINATION OBLIGATIONS/NON-COMPETE

 

a.           Non-Solicitation/Non-Compete.  Executive hereby covenants and agrees that, if his employment with the Bank is terminated under Sections 6(b) - (d) of this Agreement, for a period of one (1) year following his termination of employment with the Bank (other than a termination of employment following a Change in Control), he shall not, without the written consent of the Bank, either directly or indirectly:

 

(i)           solicit, offer employment to, or take any other action intended (or that areasonable person acting in like circumstances would expect) to have theeffect of causing any officer or employee of the Bank, or any of itsrespective subsidiaries or affiliates, to terminate his employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever to, any business whatsoever which competes with the business of the Bank, or any of its direct or indirect subsidiaries or affiliates,which has headquarters or officeswithin twenty-five (25) miles of any location(s) in which the Bank has business operations or has filed an application for regulatory approval to establish business operations;

 

(ii)           become an officer, employee, consultant, director, independent contractor,agent, joint venturer, partner or trustee of any savings bank, savings and loan association, savings and loan holding company, credit union, bank or bank holding company, insurance company or agency, any mortgage or loan broker or any other entity that competes with the business of the Bankor any of its  direct or indirect subsidiaries or affiliates, which: (i) has headquarters within twenty-five (25) miles of any location(s) in which the Bank has business operations or has filed an application for regulatory approval to establish business operations  (the “Restricted Territory”); or (ii) has one or more offices, but is not headquartered, within the Restricted Territory, but only if Executive would be employed, conduct business or have other responsibilities or duties within the Restricted Territory; or,

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(iii)           solicit, provide any information, advice or recommendation, or take anyother action intended (or that a reasonable person acting in likecircumstances would expect) to have the effect of causing any customer ofthe Bank to terminate an existing business or commercial relationship with the Bank.

 

b.    Executive hereby covenants and agrees that, if his employment with the Bank is terminated under Section 6(e) of this Agreement, for a period of one (1) year following his termination of employment with the Bank (other than a termination of employment following a Change in Control), he shall not, without the written consent of the Bank, either directly or indirectly:

 

(i)           solicit, offer employment to, or take any other action intended (or that areasonable person acting in like circumstances would expect) to have theeffect of causing any officer or employee of the Bank, or any of itsrespective subsidiaries or affiliates, to terminate his employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever to any entity whatsoever which competes with the business of the Bank or any of its direct or indirect subsidiaries or affiliateswhich is physically located in the State of New Jersey or in any county of another state in which the Bank operates a branch;

 

(ii)           become an officer, employee, consultant, director, independent contractor,agent, joint venturer, partner or trustee of any savings bank, savings and loan association, savings and loan holding company, credit union, bank or bank holding company, insurance company or agency, any mortgage or loan broker or any other entity which competes with the business of the Bank or any of its direct or indirect subsidiaries or affiliateswhich is physically located in the State of New Jersey or in any county of another state in which the Bank operates a branch; or,

 

(iii)           solicit, provide any information, advice or recommendation, or take anyother action intended (or that a reasonable person acting in likecircumstances would expect) to have the effect of causing any customer ofthe Bank to terminate an existing business or commercial relationship with the Bank.

 

c.           Confidentiality.  Executive recognizes and acknowledges that the knowledge of the business activities, plans for business activities, and all other proprietary information of the Bank, as it may exist from time to time, are valuable, special and unique assets of the business of the Bank.  Executive will not, during or after the term of his employment, disclose any knowledge of the past, present, planned or considered business activities or any other similar proprietary information of the Bank to any person, firm, corporation, or other entity for any reason or purpose whatsoever unless expressly authorized by the Board or required by law.  Notwithstanding the foregoing, Executive may disclose any knowledge of banking, financial and/or economic principles, concepts or ideas which are not solely and exclusively derived from the business plans and activities of the Bank.  Further, Executive may disclose information regarding the business activities of the Bank to any bank regulator having regulatory jurisdiction over the activities of the Bank pursuant to a formal regulatory request.  In the event of a breach or threatened breach by Executive of the provisions of this Section, the Bank will be entitled to an injunction restraining Executive from disclosing, in whole or in part, the knowledge of the past, present, planned or considered business activities of the Bank or any other similar proprietary information, or from rendering any services to any person, firm, corporation, or other entity to whom such knowledge, in whole or in part, has been disclosed or is threatened to be disclosed.  Nothing herein will be construed as prohibiting the Bank from pursuing any other remedies available to the Bank for such breach or threatened breach, including the recovery of damages from Executive.

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d.           Information/Cooperation.  Executive shall, upon reasonable notice, furnish such information and assistance to the Bank as may be reasonably required by the Bank, in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become, a party; provided, however, that Executive shall not be required to provide information or assistance with respect to any litigation between Executive and the Bank or any other subsidiaries or affiliates.

 

e.           Reliance.  All payments and benefits to Executive under this Agreement shall be subject to Executive’s compliance with this Section 9, to the extent applicable.  The parties hereto, recognizing that irreparable injury will result to the Bank, its business and property in the event of Executive’s breach of this Section 9, agree that, in the event of any such breach by Executive, the Bank will be entitled, in addition to any other remedies and damages available, to an injunction to restrain the violation hereof by Executive and all persons acting for or with Executive. Executive represents and admits that Executive’s experience and capabilities are such that Executive can obtain employment in a business engaged in other lines of business than the Bank, and that the enforcement of a remedy by way of injunction will not prevent Executive from earning a livelihood.  Nothing herein will be construed as prohibiting the Bank from pursuing any other remedies available to them for such breach or threatened breach, including the recovery of damages from Executive.

 

10.    SOURCE OF PAYMENTS/RELEASE

 

a.           All payments provided in this Agreement shall be timely paid in cash or check from the general funds of the Bank.

 

b.           Notwithstanding anything to the contrary in this Agreement, Executive shall not be entitled to any payments or benefits under this Agreement unless and until Executive executes an unconditional release of any claims against the Company, the Bank, and their affiliates, including their officers, directors, successors and assigns, releasing said persons from any and all claims, rights, demands, causes of action, suits, arbitrations or grievances relating to the employment relationship other than claims for benefits under tax-qualified plans or other benefit plans in which Executive is vested, claims for benefits required by applicable law or claims with respect to obligations set forth in this Agreement that survive the termination of this Agreement.

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11.    REQUIRED REGULATORY PROVISIONS

 

a.           Notwithstanding anything herein contained to the contrary, any payments to Executive by the Bank, whether pursuant to this Agreement or otherwise, are subject to and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. Section 1828(k), and the regulations promulgated thereunder in 12 C.F.R. Part 359.

 

b.           Notwithstanding anything else in this Agreement to the contrary, Executive’s employment shall not be deemed to have been terminated unless and until Executive has a "Separation from Service" within the meaning of Code Section 409A.  For purposes of this Agreement, a “Separation from Service” shall have occurred if the Bank and Executive reasonably anticipate that either no further services will be performed by Executive after the date of the termination (whether as an employee or as an independent contractor) or the level of further services performed is less than 50% of the average level of bona fide services in the thirty-six (36) months immediately preceding the termination.  For all purposes hereunder, the definition of Separation from Service shall be interpreted consistent with Treasury Regulation Section 1.409A-1(h)(ii).

 

c.           Notwithstanding the foregoing, in the event the Executive is a "Specified Employee" (as defined herein), then, solely, to the extent required to avoid penalties under Code Section 409A, the Executive’s payments shall be delayed until the first day of the seventh month following the Executive’s Separation from Service.  A “Specified Employee” shall be interpreted to comply with Code Section 409A and shall mean a key employee within the meaning of Code Section 416(i) (without regard to paragraph 5 thereof), but an individual shall be a “Specified Employee” only if the Bank or Company is or becomes a publicly traded company.

 

12.           NO ATTACHMENT

 

Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation, or to execution, attachment, levy, or similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void, and of no effect.

 

13.           ENTIRE AGREEMENT; MODIFICATION AND WAIVER

 

a.           This Agreement contains the entire agreement of the parties relating to the subject matter hereof, and supersedes in its entirety any and all prior agreements, understandings or representations relating to the subject matter hereof, except that the parties acknowledge that this Agreement shall not affect any of the rights and obligations of the parties  under any agreement or plan entered into with or by the Bank pursuant to which Executive may receive compensation or benefits except as set forth in Section 6(d) hereof.

 

b.           This Agreement may not be modified or amended except by an instrument in writing signed by each of the parties hereto.

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c.           No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel.  No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future as to any act other than that specifically waived.

 

d.           The terms defined in this Agreement have the meanings assigned to them in this Agreement, and they include the plural as well as the singular, and the use of any gender herein shall be deemed to include the other gender.

 

14.    SEVERABILITY

 

If, for any reason, any provision of this Agreement, or any part of any provision, is held invalid, such invalidity shall not affect any other provision of this Agreement or any part of such provision not held so invalid, and each such other provision and part thereof shall to the full extent consistent with law continue in full force nd effect.

 

15.           HEADINGS FOR REFERENCE ONLY

 

The headings of sections and paragraphs herein are included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Agreement.

 

16.     GOVERNING LAW

 

This Agreement shall be governed by the laws of the State of New Jersey, but only to the extent not superseded by federal law.

 

17.     ARBITRATION

 

Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by binding arbitration, as an alternative to civil litigation and without any trial by jury to resolve such claims, conducted by a single arbitrator mutually acceptable to the Bank and Executive, sitting in a location selected by the Bank within twenty-five (25) miles from the main office of the Bank, in accordance with the rules of the American Arbitration Association’s National Rules for the Resolution of Employment Disputes then in effect.  Judgment may be entered on the arbitrator’s award in any court having jurisdiction.

 

18.    INDEMNIFICATION

 

Insurance.  During the term of this Agreement, the Bank will provide Executive with coverage under a directors’ and officers’ liability policy, at the Bank’s expense, that is at least equivalent to the coverage provided to directors and senior executives of the Bank.

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19.    SUCCESSORS AND ASSIGNS

 

The Bank shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise to all or substantially all the business or assets of the Bank, to expressly and unconditionally assume and agree to perform the Bank’s obligations under this Agreement, in the same manner and to the same extent that the Bank would be required to perform if no such succession or assignment had taken place.

 

 

20.           ATTORNEYS' FEES AND COSTS

 

If any action is brought by either party against the other party to enforce the terms of this Agreement, the prevailing party shall be entitled to recover from the other party reasonable Attorneys' Fees and costs incurred in connection with the prosecution or defense of such action.

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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the dates set forth below.

 

	
  

	
BCB COMMUNITY BANK

November 3, 2016                                                                By:  __/s/Thomas Coughlin_______                                                                           

Name: Thomas Coughlin

Title: President and Chief Executive Officer

EXECUTIVE

November 3, 2016                                                                By: __/s/Joseph Javitz_____________                                                                

Name: Joseph Javitz

 

 

 

 

 

14mbvt_Ex10_2

		

			 

		

		
			Exhibit 10.2
		

		
			 
		

		
			EMPLOYMENT AGREEMENT
		

		
			This Employment Agreement (“Agreement”) is made and effective this 3rd day of October, 2016 between Merchants Bank, a Vermont chartered bank (“the Bank”), and Robert G. Ripley, Jr. (the “Executive Officer”).
		

		
			 
		

		
			NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
		

		
			 
		

			
	
			
				 1.
			

			
	
			
			Employment, Compensation & Employment Term.  

		
			 
		

			
	
			
				 (a)
			

			
	
			
			Position and Duties.  The Executive Officer shall serve as President of Merchants Trust Company and Senior Vice President and Senior Trust Officer of Merchants Bank reporting directly to Geoffrey R. Hesslink, President and Chief Executive Officer of the Bank. The Executive Officer will be primarily responsible for leading all trust division activities and services for the Bank. This position is responsible for; developing and implementing short and long-range strategic plans and policies to promote growth and profitability while upholding fiduciary and regulatory compliance objectives; defining and ensuring the highest level of service standards for trust clients. The Executive Officer shall also have such powers and duties as may be assigned to the Executive Officer from time to time by the President and Chief Executive Officer of the Bank and/or its Board of Directors. It is anticipated that the Executive Officer shall devote an average of four (4) business days per week to his duties with the Bank with a work week consisting of three to five (3-5) business days. Notwithstanding the foregoing, the Executive Officer may serve on other boards of directors, with the approval of the CEO, or engage in his current consulting business provided such services and activities do not materially interfere with the Executive Officer’s performance of his duties to the Bank as provided for in this Agreement.

		
			 
		

			
	
			
				 (b)
			

			
	
			
			Term. This Employment Agreement is for seven (7) months commencing October 3rd, 2016 and ending April 30, 2017 subject to the termination provisions of section 2 below.

		
			 
		

			
	
			
				 (c)
			

			
	
			
			Base Salary. The Executive Officer’s salary for his seven (7) month term shall be $122,500 (annualized as $210,000) payable bi-weekly beginning Friday, October 14, 2016.

		
			 
		

		
			 
		

			
	
			
				 (d)
			

			
	
			
			Bonus. Executive Officer shall receive a signing bonus of $25,000, less standard deductions no later than Friday, October 14, 2016. Should you for any reason terminate your employment with the Bank within 6 months of receipt of this payment, you will be responsible to repay the bonus on a pro-rata basis. Executive Officer shall not be entitled to any other incentive compensation or other compensation unless expressly set forth in this Agreement.

		
			 
		

			
	
			
				 (e)
			

			
	
			
			Benefits. On October 3, 2016, the Executive Officer shall have earned fifteen (15) vacation days.  At the conclusion of the Executive Officer’s employment, the Bank shall pay the Executive Officer all earned but unused vacation days in a lump sum.  During Executive Officer’s seven (7) month term of employment, he shall also be entitled to standard bank holidays and sick time consistent with that provided to other executives employed at the Bank. The Executive Officer shall not receive any other benefits except as required by law.

		
			 
		

			
	
			
				 (f)
			

			
	
			
			Expenses. The Executive Officer shall be reimbursed for all business mileage, including weekly commuting mileage, and lodging in accordance with the Bank’s Travel and Expense policy. Expenses will be reimbursed by the Bank within five (5) days of submitting a completed expense form. Executive Officer shall submit such an expense form bi-weekly.

		
			

		 

		

			 

		

 

		

		
			 
		

			
	
			
				 2.
			

			
	
			
			Termination.  

		
			 
		

		
			(a)  In the event of the death or disability of the Executive Officer (disability being defined as the Executive Officer being unable to perform the essential functions of his job even with a reasonable accommodation), this Agreement shall terminate.  Should Executive Officer be die or become disabled (as defined), the Bank shall have no further obligation to provide Executive Officer with any compensation beyond his last day of employment.
		

		
			(b)  Termination by the Bank for Cause.  The Bank may terminate the Executive’s employment hereunder for Cause.  For purposes of this Agreement, “Cause” shall mean: (i) fraud, embezzlement or other misappropriation by the Executive of funds, property or rights of the Bank; (ii) conviction  of the Executive, by plea or otherwise, of any felony, or any misdemeanor, if such misdemeanor involves a crime of theft, trust or dishonesty; (iii) any gross misconduct by the Executive that is injurious in any material respect to the Bank; (iv) continued non-performance by the Executive of his/her material obligations under this Agreement (other than by reason of the Executives physical or mental illness, incapacity or disability); or (v) a breach of the Executive’s Fiduciary duties as an employee of the Bank including a breach of any of the provisions contained in Section 3 of this Agreement. 
		

		
			(c)  This Agreement may also be terminated by the Bank without cause.  Should Executive Officer be terminated without cause, he shall receive the compensation he otherwise would have received had he worked the full seven (7) month term, bi-weekly, in accordance with the Bank’s normal payroll practices provided he executes a comprehensive release in favor of the Bank.  In addition, the Bank shall also pay the Executive Officer all reimbursable expenses and all earned but unpaid vacation days on the date of his termination.
		

		
			(d)  This Agreement may also be terminated by the Executive Officer without cause by giving a two-week written notice of resignation to the CEO of the Bank.  The Bank shall pay the Executive Officer his compensation for the two notice weeks prior to the effective date of his resignation as well as all reimbursable expenses and all earned but unpaid vacation days, but shall have no obligation to make any further payments to the Executive Officer. 
		

		
			 
		

			
	
			
				 3.
			

			
	
			
			Confidential Information & Cooperation.  

		
			 
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			Confidential Information. As used in this Agreement, “Confidential Information” means information belonging to the Bank which is of value to the Bank in the course of conducting its business and the disclosure of which could result in a competitive or other disadvantage to the Bank or its interests. Confidential information includes, without limitation, financial information, reports, potential business and forecasts; inventions, improvements, and other intellectual property; trade secrets; know-how; designs; processes or formulae; software; market or sales information or plans; customer lists; and business plans, prospects and opportunities (such as possible acquisitions, sale or disposition of the business or facilities) which have been discussed or considered by the management of the Bank. Confidential Information includes information developed by the Executive Officer in the course of Executive Officer’s employment with the Bank, as well as other information to which the Executive Officer may have access in connection with the Executive Officer’s employment with the Bank. Confidential Information also includes the confidential information of others with which the Bank has a business relationship. Notwithstanding the foregoing, Confidential Information does not include information in the public domain, unless it is in the public domain due to the breach of Executive Officer’s duties herein. 

		
			 
		

			
	
			
				 (b)
			

			
	
			
			Confidentiality. The Executive Officer understands and agrees that the employment relationship creates a relationship of confidence and trust between Executive Officer and Bank with respect to all Confidential Information. At all times, during Executive Officer’s employment with the Bank and after its termination, the Executive Officer will keep in confidence and trust all such Confidential Information and will not use or disclose any such Confidential Information without the written consent of the Bank’s CEO except as may be necessary during the ordinary course of performing Executive Officer’s duties with the Bank.

		
			 
		

		
			

		 

		

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				 (c)
			

			
	
			
			Documents, Records, etc. All documents, records, data, apparatus, equipment and other physical property, whether or not pertaining to Confidential Information, which are furnished to the Executive Officer by the Bank will be and remain the sole property of the Bank. The Executive Officer shall return to the Bank all such materials and properties as and when requested by the Bank or immediately after Executive Officer’s termination. The Executive Officer shall not retain any such material or property or any copies thereof after such termination.

		
			 
		

			
	
			
				 (d)
			

			
	
			
			Non-Solicitation.  During the Executive Officer’s employment with the Bank and for a period of one (1) year thereafter, Executive Officer shall: (i) refrain from directly or indirectly employing, attempting to employ, recruiting or otherwise soliciting, inducing any person to leave employment with the Bank or its successor (with the exception of terminations of employment of subordinate Executive Officers undertaken during the course of the Executive Officer’s employment with the Bank); and (ii) refrain from soliciting or encouraging any customer or supplier to terminate or otherwise modify adversely its business relationship with the Bank. Executive Officer understands that the restrictions set forth in this paragraph are intended to protect the Bank’s and any successor’s interest in their Confidential Information and established Executive Officer, customer and supplier relationships and goodwill, and agrees such restrictions are reasonable and appropriate for such purpose.

		
			 
		

			
	
			
				 (e)
			

			
	
			
			Third-Party Agreements and Rights.  The Executive Officer hereby confirms that the Executive Officer is not bound by the terms of any agreement with any current or previous employer or other party which restricts in any way the Executive Officer’s use or disclosure of information or the Executive Officer’s engagement in any business. The Executive Officer represents to the Bank that the Executive Officer’s execution of this Agreement, the Executive Officer’s employment with the Bank and the performance of Executive Officer’s duties for the Bank will not violate any obligations the Executive Officer may have to such previous employer or other party. In the Executive Officer’s work for the Bank, Executive Officer shall not disclose or make use of any information in violation of any agreements with or rights of any previous employer, current employer or other party, and the Executive Officer shall not bring to the Bank premises any copies or tangible embodiments of non-public information belonging to or obtained from any other employment or party.

		
			 
		

			
	
			
				 (f)
			

			
	
			
			Litigation and Regulatory Cooperation. During and after the Executive Officer’s employment, the Executive Officer shall cooperate fully with the Bank or any successor in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Bank or any successor which relate to events or occurrences that transpired while Executive Officer was employed by the Bank. The Executive Officer’s full cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Bank at mutually convenient times. During and after the Executive Officer’s employment, the Executive Officer shall fully cooperate with the Bank or any successor in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while Executive Officer was employed by the Bank. The Bank or any successor shall compensate the Executive Officer for any time required at a rate commensurate with the compensation set forth in this Agreement and shall reimburse the Executive Officer for any reasonable out of pocket expenses incurred in connection with the Executive Officer’s performance of obligations pursuant to this paragraph 3(f).

		
			 
		

			
	
			
				 (g)
			

			
	
			
			Injunction. The Executive Officer agrees that it would be difficult to measure any damages caused to the Bank or any successor that might result from any breach by the Executive Officer of the promises set forth in this Section 3, and that in any event money damages would be an inadequate remedy for any such breach. Accordingly, the Executive Officer agrees that if the Executive Officer breaches or proposes to breach any portion of this Agreement, the Bank and any successor shall be entitled, in addition to all other remedies that it may have, to an injunction or other appropriate equitable relief to restrain any such breach without showing or proving actual damage to the Bank or any successor.

		
			

		 

		

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				 4.
			

			
	
			
			Indemnification.  In accordance with the limits set forth in the Vermont Business Corporations Law and Delaware General Corporations Law, as applicable, the Bank or any successor shall indemnify the Executive Officer as provided by the Articles of Association and Bylaws.

		
			 
		

			
	
			
				 5.
			

			
	
			
			Integration. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements between the parties concerning such subject matter.

		
			 
		

			
	
			
				 6.
			

			
	
			
			Withholding.  All payments made to the Executive Officer by the Bank under this Agreement shall be net of any tax or other amounts required to be withheld by the Bank under applicable law.

		
			 
		

			
	
			
				 7.
			

			
	
			
			Successor to the Executive Officer. This Agreement shall inure to the benefit of and be enforceable by the Executive Officer’s personal representatives, executors, administrators, heirs, distributes and legatees. In the event of the Executive Officer’s death prior to the completion of all payments due him under this Agreement, the Bank shall continue such payments to the Executive Officer’s beneficiary designated in writing to the Bank prior to his death (or his estate of the Executive Officer fails to make such a designation).

		
			 
		

			
	
			
				 8.
			

			
	
			
			Enforceability. If any part or provision of this Agreement (including without limitation any portion or provision of this section of the Agreement)  to any extent be declared illegal, or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application or such part or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each part and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

		
			 
		

			
	
			
				 9.
			

			
	
			
			Survival. The provisions of this Agreement shall survive the termination of this Agreement and/or Executive Officer’s termination of employment to the extent necessary to effectuate the terms contained herein.

		
			 
		

			
	
			
				 10.
			

			
	
			
			Waiver. No waiver of any provision of this Agreement shall be effective unless made in a writing signed by the waiving party. The failure of any party to require the performance of any term or obligation of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

		
			 
		

			
	
			
				 11.
			

			
	
			
			Notices.  Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if in writing and delivered in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt requested, to the Executive Officer at the last address the Executive Officer has filed in writing with the Bank or any successor, or in the case of the Bank or any successor, at its main offices, attention of the Board.

		
			 
		

			
	
			
				 12.
			

			
	
			
			Amendment.  This Agreement may be amended or modified only by a written instrument signed by the Executive Officer and by the CEO of the Bank.

		
			 
		

			
	
			
				 13.
			

			
	
			
			Governing Law.  This is a Vermont contract and shall be construed under and be governed in all respects by the laws of the State of Vermont, without giving effect to the choice of law principles of such State. With respect to any disputes concerning federal law, such disputes shall be determined in accordance with the law as it would be interpreted and applied by the United States Court of Appeals for the Second Circuit.

		
			 
		

			
	
			
				 14.
			

			
	
			
			Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be taken to be an original; but such counterparts shall be considered one and the same document.

		
			 
		

		
			

		 

		

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				 15.
			

			
	
			
			Successor to the Bank. The Bank shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the assets of the Bank, expressly to assume and agree to perform this Agreement to the same extent the Bank would be required to perform it if no succession had taken place.

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

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			IN WITNESS WHEREOF, the parties have executed this Agreement this 3rd day of October, 2016.
		

			
					
						 

					
					
						 

				
	
					
						MERCHANTS BANK

				
	
					
						By:

					
					
						/s/ Geoffrey R. Hesslink

				
	
					
						Its:

					
					
						President & Chief Executive Officer

				
	
					
						Dated: 

					
					
						October 3, 2016

				
	
					
						EXECUTIVE OFFICER

				
	
					
						/s/ Robert G. Ripley, Jr.

				
	
					
						Robert G. Ripley, Jr.

				
	
					
						Dated:

					
					
						October 3, 2016

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		 

		

			6

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