Document:

Unassociated Document

Exhibit 10.76

CHANGE OF CONTROL SEVERANCE AGREEMENT

This AMENDED AND RESTATED CHANGE OF CONTROL SEVERANCE AGREEMENT (the "Agreement") is made and entered into as of January 1, 2011 (the “Initial Effective Date”) by and among ASTORIA FEDERAL SAVINGS AND LOAN ASSOCIATION, a savings and loan association organized and existing under the laws of the United States of America and having an office at One Astoria Federal Plaza, Lake Success, New York 11042 (the "Association"), ASTORIA FINANCIAL CORPORATION, a business corporation organized and existing under the laws of the State of Delaware and having an office at One Astoria Federal Plaza, Lake Success, New York 11042 (the "Company") and Peter M. Finn, an individual residing at 315 Harold Avenue, Leonia, New
Jersey 07605 (the "Officer").

INTRODUCTORY STATEMENT

WHEREAS, the Officer is a key officer of the Association;

 

WHEREAS, should the possibility of a Pending Change of Control or Change of Control of the Association or the Company arise, the Boards of Directors of the Association and the Company believe it is imperative that the Association, the Company and the Boards of Directors of the Association and the Company should be able to rely upon the Officer to continue in his or her position, and that the Association and the Company should be able to receive and rely upon the Officer's advice, if requested, as to the best interests of the Association and the Company and their respective shareholders without concern that the Officer might be distracted by the personal
uncertainties and risks created by the possibility of a Pending Change of Control or Change of Control;

 

WHEREAS, should the possibility of a Pending Change of Control or Change of Control arise, in addition to his or her regular duties, the Officer may be called upon to assist in the assessment of such possible Pending Change of Control or Change of Control, advise management and the Board as to whether such Pending Change of Control or Change of Control would be in the best interests of the Association, the Company and their respective shareholders, and to take such other actions as the Boards of Directors of the Association and the Company might determine to be appropriate;

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and conditions hereinafter set forth, the Association, the Company and the Officer hereby agree as follows:

AGREEMENT

	
  

	
Section 1.

	
Effective Date; Term; Pending Change of Control and Change of Control Defined.

 

(a)           This Agreement shall remain in effect during the period (the "Term") beginning on the Initial Effective Date and ending on the earlier of:

 

  

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(i)           the date, prior to the occurrence of a Pending Change of Control or a Change of Control, as defined below, respectively, on which the Officer's employment by the Association terminates whether by discharge, resignation, death, disability or retirement, or

 

(ii)          the later of:

 

(A)           the first anniversary of the date on which the Association notifies the Officer of its intent to discontinue the Agreement (the "Initial Expiration Date") or,

 

(B)           the second anniversary of the latest Change of Control, as defined below, that occurs after the Initial Effective Date and before the Initial Expiration Date.

 

(b)           For purposes of this Agreement, a "Change of Control" shall be deemed to have occurred upon the happening of any of the following events:

 

(i)           the consummation of a transaction that results in the reorganization, merger or consolidation of the Company with one or more other persons, other than a transaction following which:

 

(A)           at least 51% of the equity ownership interests of the entity resulting from such transaction are beneficially owned (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) in substantially the same relative proportions by persons who, immediately prior to such transaction, beneficially owned (within the meaning of Rule 13d-3 promulgated under the Exchange Act) at least 51% of the outstanding equity ownership interests in the Company; and

 

(B)           at least 51% of the securities entitled to vote generally in the election of directors of the entity resulting from such transaction are beneficially owned (within the meaning of Rule 13d-3 promulgated under the Exchange Act) in substantially the same relative proportions by persons who, immediately prior to such transaction, beneficially owned (within the meaning of Rule 13d-3 promulgated under the Exchange Act) at least 51% of the securities entitled to vote generally in the election of directors of the Company;

 

(ii)           the acquisition of all or substantially all of the assets of the Company or beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of the outstanding securities of the Company entitled to vote generally in the election of directors by any person or by any persons acting in concert;

 

  

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(iii)          a complete liquidation or dissolution of the Company, or approval by the shareholders of the Company of a plan for such liquidation or dissolution;

 

(iv)          the occurrence of any event if, immediately following such event, at least 50% of the members of the Board of Directors of the Company do not belong to any of the following groups:

 

(A)          individuals who were members of the Board of Directors of the Company on the Initial Effective Date; or

 

(B)          individuals who first became members of the Board of Directors of the Company after the Initial Effective Date either:

 

(I)           upon election to serve as a member of the Board of Directors of the Company by affirmative vote of three-quarters of the members of such Board, or of a nominating committee thereof, in office at the time of such first election; or

 

II)           upon election by the stockholders of the Company to serve as a member of such Board, but only if nominated for election by affirmative vote of three-quarters of the members of the Board of Directors of the Company, or of a nominating committee thereof, in office at the time of such first nomination;

 

 provided, however, that such individual's election or nomination did not result from an actual or threatened election contest (within the meaning of Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents (within the meaning of Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) other than by or on behalf of the Board of Directors of the Company; or

 

(v)          any event which would be described in section 1(b)(i), (ii), (iii) or (iv) if the term "Association" were substituted for the term "Company" therein.

 

In no event, however, shall a Change of Control be deemed to have occurred as a result of any acquisition of securities or assets of the Company, the Association, or an affiliate or subsidiary of either of them, by any employee benefit plan maintained by any of them. For purposes of this section 1(b), the term "person" shall have the meaning assigned to it under sections 13(d)(3) or 14(d)(2) of the Exchange Act.

 

(c)           For purposes of this Agreement, a "Pending Change of Control" shall mean:

 

  

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(i)           the approval by the shareholders of the Association or the Company of a definitive agreement for a transaction which, if consummated, would result in a Change of Control; or

 

(ii)           the approval by the shareholders of the Association or the Company of a transaction which, if consummated, would result in a Change of Control.

 

	
  

	
Section 2.

	
Discharge Prior to a Pending Change of Control.

 

The Association may discharge the Officer at any time prior to the occurrence of a Pending Change of Control or, if no Pending Change of Control has occurred, a Change of Control, for any reason or for no reason. In such event:

 

(a)           The Association shall pay to the Officer or the Officer's estate his or her earned but unpaid compensation, including, without limitation, salary and all other items which constitute wages under applicable law, as of the date of the Officer's termination of employment. This payment shall be made at the time and in the manner prescribed by law applicable to the payment of wages but in no event later than 30 days after the date of the Officer's termination of employment.

 

(b)           The Association shall provide the benefits due, if any, to the Officer or the Officer's estate, surviving dependents or designated beneficiaries, as applicable, under the employee benefit plans and programs and compensation plans and programs maintained for the benefit of the officers and employees of the Association, including the annual bonus (if any) to which he or she is entitled under any cash-based annual bonus or performance compensation plan in effect for the year in which his or her termination occurs, to be paid at the same time and on the terms and conditions (including but not limited to achievement of performance goals) applicable
under the relevant plan. The time and manner of payment or other delivery of these benefits and the recipients of such benefits shall be determined according to the terms and conditions of the applicable plans and programs.

 

The payments and benefits described in sections 2(a) and (b) shall be referred to in this Agreement as the "Standard Termination Entitlements."

 

	
  

	
Section 3.

	
Termination of Employment Due to Death.

 

The Officer's employment with the Association shall terminate automatically, and without any further action on the part of any party to this Agreement, on the date of the Officer's death. In such event, the Association shall pay and deliver to the Officer's estate and surviving dependents and designated beneficiaries, as applicable, the Standard Termination Entitlements.

 

  

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Section 4. 

	
Termination Due to Disability after a Pending Change of Control or a Change of Control.

 

The Association may terminate the Officer's employment during the Term and after the occurrence of a Pending Change of Control or a Change of Control upon a determination by the Board of Directors of the Association, by the affirmative vote of 75% of its entire membership, acting in reliance on the written advice of a medical professional acceptable to it, that the Officer is suffering from a physical or mental impairment which, at the date of the determination, has prevented the Officer from performing the Officer's assigned duties on a substantially full-time basis for a period of at least one hundred and eighty (180) days during the period of one (1) year ending with the date of the determination or is likely
to result in death or prevent the Officer from performing the Officer's assigned duties on a substantially full-time basis for a period of at least one hundred and eighty (180) days during the period of one (1) year beginning with the date of the determination. In such event:

 

(a)           The Association shall pay and deliver the Standard Termination Entitlements to the Officer or, in the event of the Officer's death following such termination but before payment, to the Officer's estate, surviving dependents or designated beneficiaries, as applicable.

 

(b)           In addition to the Standard Termination Entitlements, the Association shall continue to pay the Officer his or her base salary, at the annual rate in effect for the Officer immediately prior to the termination of the Officer's employment, during a period ending on the earliest of: (i) the expiration of one hundred and eighty (180) days after the date of termination of the Officer's employment; (ii) the date on which long-term disability insurance benefits are first payable to the Officer under any long-term disability insurance plan covering employees of the Association; or (iii) the date of the Officer's death.

 

A termination of employment due to disability under this section 4 shall be effected by a notice of termination given to the Officer by the Association and shall take effect on the later of the effective date of termination specified in such notice or, if no such date is specified, the date on which the notice of termination is deemed given to the Officer.

 

	
  

	
Section 5.

	
Discharge with Cause after a Pending Change of Control or Change of Control.

 

(a)          The Association may terminate the Officer's employment with "Cause" during the Term and after the occurrence of a Pending Change of Control or a Change of Control, but a termination shall be deemed to have occurred with "Cause" only if:

 

(i)           (A)           the Board of Directors of the Association, by the affirmative vote of 75% of its entire membership, determines that the Officer is guilty of personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final cease and desist order, or any material breach of this

 

  

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Agreement, in each case measured against standards generally prevailing at the relevant time in the savings and community banking industry;

 

(B)           prior to the vote contemplated by section 5(a)(i)(A), the Board of Directors of the Association shall provide the Officer with notice of the Association's intent to discharge the Officer for Cause, detailing with particularity the facts and circumstances which are alleged to constitute Cause (the "Notice of Intent to Discharge"); and

 

(C)          after the giving of the Notice of Intent to Discharge and before the taking of the vote contemplated by section 5(a)(i)(A), the Officer, together with the Officer's legal counsel, if he so desires, are afforded a reasonable opportunity to make both written and oral presentations before the Board of Directors of the Association for the purpose of refuting the alleged grounds for Cause for the Officer's discharge; and

 

(D)          after the vote contemplated by section 5(a)(i)(A), the Association has furnished to the Officer a notice of termination which shall specify the effective date of the Officer's termination of employment (which shall in no event be earlier than the date on which such notice is deemed given) and include a copy of a resolution or resolutions adopted by the Board of Directors of the Association, certified by its corporate secretary, authorizing the termination of the Officer's employment with Cause and stating with particularity the facts and circumstances found to constitute Cause for the Officer's discharge (the "Final Discharge Notice"); or

 

(ii)  the Officer, during the 90 day period commencing on the delivery to the Officer by the Association of the Notice of Intent to Discharge specified in section 5(a)(i)(B), resigns his or her employment with the Association prior to the delivery to the Officer by the Association of the Final Discharge Notice specified in section 5(a)(i)(D).  For purposes of this section 5, no act or failure to act, on the part of the Officer, shall be considered "willful" unless it is done, or omitted to be done, by the Officer in bad faith or without reasonable belief that the Officer's action or omission was in the best interests of the Association or the Company, respectively. Any act or failure to act
based upon authority given pursuant to a resolution duly adopted by the Board of Directors of the Association or the Company or based upon the written advice of counsel for the Association or the Company shall be conclusively presumed to be done or omitted to be done by the Officer in good faith and in the best interests of the Association or the Company, respectively.

 

(b)           If the Officer is discharged with Cause during the Term and after a Pending Change of Control or a Change of Control, the Association shall pay and provide to him or, in the event of the Officer's death following such discharge but prior to payment and providing, to the Officer's estate, surviving dependents or designated beneficiaries, as applicable, the Standard Termination Entitlements only.

 

  

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(c)           Following the giving of a Notice of Intent to Discharge, the Association may temporarily suspend the Officer's duties and authority and, in such event, may also suspend the payment of salary and other cash compensation, but not the Officer's participation in retirement, insurance and other employee benefit plans. If the Officer is not discharged or is discharged without Cause within forty-five (45) days after the giving of a Notice of Intent to Discharge, payments of salary and cash compensation shall resume, and all payments withheld during the period of suspension shall be promptly restored.  If the Officer is discharged with Cause
not later than forty-five (45) days after the giving of the Notice of Intent to Discharge, all payments withheld during the period of suspension shall be deemed forfeited and shall not be included in the Standard Termination Entitlements. If a Final Discharge Notice is given later than forty-five (45) days, but sooner than ninety (90) days, after the giving of the Notice of Intent to Discharge, all payments made to the Officer during the period beginning with the giving of the Notice of Intent to Discharge and ending with the Officer's discharge with Cause shall be retained by the Officer and shall not be applied to offset the Standard Termination Entitlements. If the Association does not give a Final Discharge Notice to the Officer within ninety (90) days after giving a Notice of Intent to Discharge, the Notice of Intent to Discharge shall be deemed withdrawn and any future action to
discharge the Officer with Cause shall require the giving of a new Notice of Intent to Discharge. If the Officer resigns pursuant to section 5(a)(ii), the Officer shall forfeit his or her right to suspended amounts that have not been restored as of the date of the Officer's resignation or notice of resignation, whichever is earlier.

 

	
  

	
Section 6.

	
Discharge Without Cause after a Pending Change of Control or Change of Control.

 

The Association may discharge the Officer without Cause at any time after the occurrence of a Pending Change of Control or a Change of Control, and in such event:

 

(a)           The Association shall pay and deliver the Standard Termination Entitlements to the Officer or, in the event of the Officer's death following the Officer's discharge but before payment, to the Officer's estate, surviving dependents or designated beneficiaries, as applicable.

 

(b)           In addition to the Standard Termination Entitlements:

 

(i)           the Association shall provide for a period of two years following the date of the Officer's discharge or, if less, the period from date of the Officer's discharge to the Initial Expiration Date provided, however, that the Association has previously notified the Officer pursuant to Section 1(a)(ii)(A) (the "Assurance Period") for the benefit of the Officer and the Officer's spouse and dependents continued group life, health (including hospitalization, medical and major medical), dental, accident and long-term disability insurance benefits on substantially the same terms and conditions
(including any co-payments and deductibles, but excluding any premium sharing arrangements, it being the intention of the parties to this Agreement that the premiums for such insurance benefits shall be the sole cost and expense of the Association) in effect for them immediately prior to the Officer's discharge. The coverage provided

 

  

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under this section 6(b)(i) may, at the election of the Association, be secondary to the coverage provided as part of the Standard Termination Entitlements and to any employer-paid coverage provided by a subsequent employer or through Medicare, with the result that benefits under the other coverages will offset the coverage required by this section 6(b)(i), provided, however, that for purposes of this section 6(b)(i) benefits provided at the cost of the Officer or the Officer's spouse or dependants pursuant to the Comprehensive Omnibus Budget Reconciliation Act, as amended, shall not be considered Standard Termination Entitlements.

 

 (ii)           The Association shall make a lump sum payment to the Officer or, in the event of the Officer's death following the Officer's discharge but before payment, to the Officer's estate in an amount equal to the salary that the Officer would have earned if he had continued working for the Association during the Assurance Period at the highest annual rate of salary achieved during the period of three (3) years ending immediately prior to the date of termination (the "Salary Severance Payment"). The Salary Severance Payment shall be computed using the following formula:

 

SSP  =   BS x NY

 

where:

 

"SSP" is the amount of the Salary Severance Payment, before the deduction of applicable federal, state and local withholding taxes;

 

"BS" is the highest annual rate of salary achieved by the Officer during the period of three (3) years ending immediately prior to the date of termination; and

 

"NY" is the Assurance Period expressed as a number of years and fractions of years.

 

The Salary Severance Payment shall be made sixty (60) days after the Officer's termination of employment and shall be in lieu of any claim to a continuation of base salary which the Officer might otherwise have and in lieu of cash severance benefits under any severance benefits program which may be in effect for officers or employees of the Association.

 

(iii)           The Association shall make a lump sum payment to the Officer or, in the event of the Officer's death following the Officer's discharge but before payment, to the Officer's estate in an amount equal to the potential annual bonuses that the Officer would have earned if the Officer had continued working for the Association during the period of the same length as the Assurance Period, beginning on the date after the end of the current performance period under the Association’s Annual Incentive Plan for Select Executives at the highest annual rate of salary

 

  

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achieved during the period of three (3) years ending immediately prior to the date of termination (the "Bonus Severance Payment"). The Bonus Severance Payment shall be computed using the following formula:

 

BSP   =    ((BS x TIO x IP) + ( BS x TIO x FP)) x NY

 

where:

 

"BSP" is the amount of the Bonus Severance Payment, before the deduction of applicable federal, state and local withholding taxes;

 

"BS" is the highest annual rate of salary achieved by the Officer during the period of three (3) years ending immediately prior to the date of termination;

 

“TIO” is the target incentive opportunity (expressed as a percentage of base salary) established by the Compensation Committee of the Board of Directors of the Association for the Officer pursuant to the Association’s Annual Incentive Plan for Select Executives for the year in which the employment of the Officer by the Association terminates or, if no target incentive opportunity is established by the Compensation Committee of the Board of Directors of the Association for such year with respect to the Officer, then the highest of the target incentive opportunity established by the Compensation Committee of the Board of Directors of the Association for the Officer pursuant to the Annual Incentive
Plan for Select Executives during the period of three (3) years ending immediately prior to the date of termination;

"IP" is either (i) the percentage of the TIO which is to be determined by the individual performance of the Officer as established by the Compensation Committee of the Board of Directors of the Association pursuant to the Association's Annual Incentive Plan for Select Executives for the year in which the employment of the Officer by the Association terminates or, (ii) if no target incentive opportunity has been established with respect to the Officer by the Compensation Committee of the Board of Directors of the Association for the year in which the employment of the Officer by the Association terminates, then the lowest percentage of the target incentive opportunity to be determined by the individual performance
of the Officer established by the Compensation Committee of the Board of Directors of the Association for the Officer pursuant to the Annual Incentive Plan for Select Executives during the period of three (3) years ending immediately prior to the date of termination;

 

"FP" is either (i) the percentage of the TIO with respect to the Officer which is to be determined by the financial performance of the Company as established by the Compensation Committee of the Board of Directors of the Association pursuant to the Association's Annual Incentive Plan for 

 

  

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Select Executives for the year in which the employment of the Officer by the Association terminates or, (ii) if no target incentive opportunity has been established with respect to the Officer by the Compensation Committee of the Board of Directors of the Association for the year in which the employment of the Officer by the Association terminates, then a percentage equal to 100% minus the IP;

 

"NY" is the Assurance Period expressed as a number of years and fractions of years.

 

The Bonus Severance Payment shall be made on the date sixty (60) days after the Officer's termination of employment and shall be in lieu of any claim to a continuation of participation in any cash-based annual bonus or performance-based compensation plans of the Association which the Officer might otherwise have, other than any claim based on rights the Officer may have with regard to any performance period under any such plan that begins before the effective date of the Officer's termination of employment.

 

The payments and benefits described in section 6(b) are referred to in this Agreement as the "Additional Termination Entitlements". The payments described in section 6(b)(ii) and (iii) shall be computed at the expense of the Company by an attorney of the firm of Arnold & Porter, 399 Park Avenue, New York, NY 10022 or, if such firm is unavailable or unwilling to perform such calculation, by a firm of independent certified public accountants selected by the Officer and reasonably satisfactory to the Company (the "Computation Advisor"). The determination of the Computation Advisor as to the amount of such payments shall be final and binding in the absence of manifest error.

 

	
  

	
Section 7.

	
Tax Indemnification.

 

(a)           If the Officer's employment terminates under circumstances entitling the Officer or, in the event of the Officer's death following such termination but before payment, his or her estate to the Additional Termination Entitlements, the Company shall pay to the Officer or, in the event of the Officer's death, his or her estate an additional amount (the “Tax Indemnity Payment”) intended to indemnify the Officer against the financial effects of the excise tax imposed on excess parachute payments under section 280G of the Internal Revenue Code of 1986, as amended (the "Code"). The Tax Indemnity Payment shall be determined under the
following formula:

 

	
TIP   =   

	
E x P

	
1 - (( FI x ( 1 - SLI )) + SLI + E + M )

 

where:

 

"TIP" is the Tax Indemnity Payment, before the deduction of applicable federal, state and local withholding taxes;

 

  

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"E" is the percentage rate at which an excise tax is assessed under section 4999 of the Code;

 

"P" is the amount with respect to which such excise tax is assessed, determined without regard to this section 16;

 

"FI" is the highest marginal rate of income tax applicable to the Officer under the Code for the taxable year in question;

 

"SLI" is the sum of the highest marginal rates of income tax applicable to the Officer under all applicable state and local laws for the taxable year in question; and

 

"M" is the highest marginal rate of Medicare tax applicable to the Officer under the Code for the taxable year in question.

 

Such computation shall be made at the expense of the Company by the Computation Advisor and shall be based on the following assumptions:

 

(i)           that a change in ownership, a change in effective ownership or control or a change in the ownership of a substantial portion of the assets of the Association or the Company has occurred within the meaning of section 280G of the Code (a "280G Change of Control");

 

(ii)          that all direct or indirect payments made to or benefits conferred upon the Officer on account of the Officer's termination of employment are "parachute payments" within the meaning of section 280G of the Code; and

 

(iii)         that no portion of such payments is reasonable compensation for services rendered prior to the Officer's termination of employment.

 

(b)           With respect to any payment that is presumed to be a parachute payment for purposes of section 280G of the Code, the Tax Indemnity Payment shall be made to the Officer on the earlier of the date the Company, the Association or any direct or indirect subsidiary or affiliate of the Company or the Association is required to withhold such tax or the date the tax is required to be paid by the Officer, unless, prior to such date, the Company delivers to the Officer the written opinion (the "Opinion Letter"), in form and substance reasonably satisfactory to the Officer, of the Computation Advisor or, if the Computation Advisor is unable to provide such
opinion, of an attorney or firm of independent certified public accountants selected by the Company and reasonably satisfactory to the Officer, to the effect that the Officer has a reasonable basis on which to conclude that:

 

(i)           no 280G Change in Control has occurred, or

 

(ii)          all or part of the payment or benefit in question is not a parachute payment for purposes of section 280G of the Code, or

 

  

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(iii)         all or a part of such payment or benefit constitutes reasonable compensation for services rendered prior to the 280G Change of Control, or

 

(iv)         for some other reason which shall be set forth in detail in such letter, no excise tax is due under section 4999 of the Code with respect to such payment or benefit.

 

If the Company delivers an Opinion Letter, the Computation Advisor shall re-compute, and the Company shall make, the Tax Indemnity Payment in reliance on the information contained in the Opinion Letter.

 

(c)           In the event that the Officer's liability for the excise tax under section 4999 of the Code for a taxable year is subsequently determined to be different than the amount with respect to which the Tax Indemnity Payment is made, the Officer or the Company, as the case may be, shall pay to the other party at the time that the amount of such excise tax is finally determined, an appropriate amount, plus interest, such that the payment made pursuant to sections 7(a) or 7(b), when increased by the amount of the payment made to the Officer pursuant to this section 7(c), or when reduced by the amount of the payment made to the Company pursuant to this
section 7(c), equals the amount that should have properly been paid to the Officer under section 7(a). The interest paid to the Company under this section 7(c) shall be determined at the rate provided under section 1274(b)(2)(B) of the Code. The payment made to the Officer shall include such amount of interest as is necessary to satisfy any interest assessment made by the Internal Revenue Service and an additional amount equal to any monetary penalties assessed by the Internal Revenue Service on account of an underpayment of the excise tax. To confirm that the proper amount, if any, was paid to the Officer under this section 7, the Officer shall furnish to the Company a copy of each tax return which reflects a liability for an excise tax, at least 20 days before the date on which such return is required to be filed with the Internal Revenue Service. Nothing in this Agreement shall give
the Company any right to control or otherwise participate in any action, suit or proceeding to which the Officer is a party as a result of positions taken on the Officer's federal income tax return with respect to the Officer's liability for excise taxes under section 4999 of the Code.  Any payment pursuant to this section 7(c) shall be made promptly following the relevant subsequent determination, and shall in any case be made no later than the last day of the calendar year following the calendar year in which any additional taxes for which the Tax Indemnity Payment is to be made are remitted to the Internal Revenue Service.

 

	 	
Section 8. 

	
Indemnification upon and following a Change of Control.

 

(a)           To the maximum extent permitted under applicable law, from and after the effective date of a Change of Control, the Association and the Company agree to indemnify and hold harmless the Officer, against any costs or expenses (including reasonable attorneys' fees), judgments, fines, losses, claims, damages or liabilities (collectively, "Costs") incurred in connection with any claim, action, suit, proceeding or investigation, whether civil, criminal, administrative or investigative, for acts or omissions in connection with service as an officer of the Association or service in other capacities at the request of the Association or the Company at or
prior to the time the Change of Control became effective, whether asserted or claimed prior to,

 

  

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at or after the effective date of the Change of Control, and to advance any such Costs to the Officer as they are from time to time incurred, in each case to the fullest extent the Officer would have been indemnified as a director or officer of the Association or the Company, as applicable, and as then permitted under applicable law. No provision in this Agreement nor any termination or expiration of this Agreement is intended to authorize the elimination or impairment of any right to indemnification or to advancement of expenses arising under a provision of the certificate of incorporation or a bylaw of the Company or the Charter and or a bylaw of the Association by amendment to such a provision after the
occurrence of an act or omission that is the subject of an action, suit or proceeding for which indemnification is sought.

 

 (b)           The Officer, seeking to claim indemnification under section 8(a) of this Agreement and upon learning of any such claim, action, suit, proceeding or investigation, shall promptly notify the Association thereof, but the failure to so notify shall not relieve the Association or the Company of any liability it may have pursuant to this Agreement to the Officer if such failure does not materially and substantially prejudice the Association or the Company. In the event of any such claim, action, suit, proceeding or investigation,

 

(i)           the Association and the Company shall have the right to assume the defense thereof with counsel reasonably acceptable to the Officer, and the Association and the Company shall not be liable to the Officer for any legal expenses of other counsel subsequently incurred by the Officer in connection with the defense thereof, except that if the Association and the Company do not elect to assume such defense within a reasonable time or counsel for the Officer at any time advises that there are issues which raise conflicts of interest between the Association or the Company and the Officer (and counsel for the Association or the Company does not
disagree), the Officer may retain counsel satisfactory to the Officer, and the Association and the Company shall remain responsible for the reasonable fees and expenses of such counsel as set forth above, to be paid promptly as statements therefor are received; provided, however, that the Association and the Company shall be obligated pursuant to this paragraph (b)(i) to pay for only one firm of counsel for all indemnified parties in any one jurisdiction with respect to any given claim, action, suit, proceeding or investigation unless the use of one counsel for such indemnified parties, including the Officer, would present such counsel with a conflict of interest;

 

(ii)           the Officer will reasonably cooperate in the defense of any such matter; and

 

(iii)          the Association and the Company shall not be liable for any settlement effected by the Officer without their prior written consent, which shall not be unreasonably withheld.

 

	
  

	
Section 9.

	
Resignation.

 

(a)           The Officer may resign from the Officer's employment with the Association at any time. A resignation under this section 9 shall be effected by notice of resignation given by the Officer to the Association and shall take effect on the later of the

 

  

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effective date of termination specified in such notice or the date on which the notice of termination is deemed given by the Officer. For purposes of this Agreement, retirement of the Officer from the employment of the Association or the Company under circumstances defined as "normal retirement" or "early retirement" pursuant to any qualified defined benefit or qualified defined contribution pension plan maintained by the Association shall be deemed a resignation by the Officer of the Officer's employment with the Association. A resignation by the Officer as described in section 5(a)(ii) of this Agreement, for purposes of this Agreement shall be deemed to be termination with "Cause". The Officer's resignation
of any of the positions within the Association or the Company to which he has been assigned shall be deemed a resignation from all such positions.

 

(b)           The Officer's resignation shall be deemed to be for "Good Reason" if the effective date of resignation occurs during the Term, but on or after the effective date of a Pending Change of Control or Change of Control, and is on account of:

 

(i)           the failure of the Association (whether by act or omission of the Board of Directors, or otherwise) to appoint, re-appoint, elect or re-elect the Officer to the office and position with the Association that he held immediately prior to the Change of Control or Pending Change of Control (the "Assigned Office") or to a more senior office and position;

 

(ii)          if the Officer is or becomes a member of the Board of Directors of the Association, the failure of the shareholders of the Association (whether in an election in which the Officer stands as a nominee or in an election where the Officer is not a nominee), to elect or re-elect the Officer to such directorship at the expiration of the Officer's term as a director, unless such failure is a result of the Officer's refusal to stand for election;

 

(iii)         a material failure by the Association, whether by amendment of the charter or organization, by-laws, action of the Board of Directors of the Association or otherwise, to vest in the Officer the functions, duties, or responsibilities customarily associated with the Assigned Office; provided that the Officer shall have given notice of such failure to the Association, and the Association has not fully cured such failure within thirty (30) days after such notice is deemed given;

 

(iv)         any reduction of the Officer's rate of base salary in effect from time to time, whether or not material, or any failure, other than due to reasonable administrative error that is fully cured within 5 days after notice of such administrative error is deemed given, to pay any portion of the Officer's compensation as and when due;

 

(v)          any change in the terms and conditions of any compensation or benefit program in which the Officer participates which, either individually or together with other changes, has a material adverse effect on the aggregate value of the Officer's total compensation package; provided that the Officer shall have given notice of such material adverse effect to the Association,

 

  

Page 14 of 24

  

and the Association has not fully cured such failure within thirty (30) days after such notice is deemed given;

 

(vi)         any material breach by the Company or the Association of any material term, condition or covenant contained in this Agreement; provided that the Officer shall have given notice to the Company and the Association of such material adverse effect, and the Company or the Association have not fully cured such failure within thirty (30) days after such notice is deemed given; or

 

(vii)         a change in the Officer's principal place of employment to a location that is outside of Nassau County or Queens County, New York.  In all other cases, a resignation by the Officer shall be deemed to be without Good Reason. In the event of resignation, the Officer shall state in the Officer's notice of resignation whether the Officer considers his or her resignation to be a resignation with Good Reason, and if he does, he shall state in such notice the grounds which constitute Good Reason. The Officer's determination of the existence of Good Reason shall be conclusive in the absence of fraud, bad faith or manifest error.

 

(c)           In the event of the Officer's resignation for any reason, the Association shall pay and deliver the Standard Termination Entitlements. In the event of the Officer's resignation with Good Reason and such resignation is effective within six (6) months of the effective date of the Change of Control (the "Resignation Window Period"), the Association shall also pay and deliver the Additional Termination Entitlements.  In the event the Officer's resignation with Good Reason is based upon section 9(b)(iii),(iv),(v) or (vi) and the notice required by such provision has been given within six months of the effective date of the Change of Control
but the applicable cure period will not expire until on or after the date which is six months following the effective date of the Change of Control, the Resignation Window Period shall be extended so as expire 30 days following the expiration of the applicable cure period.

 

Section 10.           Terms and Conditions of the Additional Termination Entitlements.

 

The Association and the Officer hereby stipulate that the damages which may be incurred by the Officer following any termination of employment are not capable of accurate measurement as of the date first above written and that the Additional Termination Entitlements constitute reasonable damages under the circumstances and shall be payable without any requirement of proof of actual damage and without regard to the Officer's efforts, if any, to mitigate damages.  The Association and the Officer further agree that the Association may elect to condition the payment and delivery of the Additional Termination Entitlements on the receipt and effectiveness of:

 

(a)           the Officer's resignation from any and all positions which he holds as an officer, director or committee member with respect to the Association or any subsidiary or affiliate of the Association; and

 

(b)           a release of the Association and the Company and their officers, directors, shareholders, subsidiaries and affiliates, in form and substance

 

  

Page 15 of 24

  

satisfactory to the Association, of any liability to the Officer, whether for compensation or damages, in connection with the Officer's employment with the Association and the termination of such employment, except for the Standard Termination Entitlements, the Additional Termination Entitlements, the Tax Indemnity Payment and indemnification payments due the Officer pursuant to section 6 or section 7 of this Agreement;

 

provided, however, that any such election by the Association will only be effective if the Association notifies the Officer of its election in writing within five (5) days of the Officer's termination of employment.

 

To the extent the Association timely elects to condition the payment and delivery of the Additional Termination Entitlements or any other amount due under this Agreement upon the receipt and effectiveness of the Officer's resignation or release provided in section 10(b) of this Agreement, neither the Additional Termination Entitlements nor any other amount due so conditioned shall be paid to the Officer if any resignation or release so required is not both received by the Association and effective before the first date upon which such payments are to be paid under this Agreement.

 

	
  

	
Section 11.

	
Confidentiality.

 

Unless the Officer obtains the prior written consent of the Association or the Company, the Officer shall keep confidential and shall refrain from using for the benefit of himself or herself, or any person or entity other than the Company or any entity which is a subsidiary of the Company or of which the Company is a subsidiary, any material document or information obtained from the Company, or from its parent or subsidiaries, in the course of the Officer's employment with any of them concerning their properties, operations or business (unless such document or information is readily ascertainable from public or published information or trade sources or has otherwise been made available to the public through no
fault of the Officer) until the same ceases to be material (or becomes so ascertainable or available); provided, however, that nothing in this section 11 shall prevent the Officer, with or without the Company's consent, from participating in or disclosing documents or information in connection with any judicial or administrative investigation, inquiry or proceeding to the extent that such participation or disclosure is required under applicable law.

 

	
  

	
Section 12.

	
No Effect on Employee Benefit Plans or Programs.

 

Except to the extent specifically provided herein, the termination of the Officer's employment during the Term or thereafter, whether by the Association or by the Officer, shall have no effect on the rights and obligations of the parties hereto under the Association'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 such other employee benefit plans or programs, or compensation plans or programs, as may be maintained by, or cover employees of, the Association from time to time; provided, however, that nothing in this Agreement
shall be deemed to duplicate any compensation or benefits provided under any severance agreement, plan or program covering the Officer to which the Association or Company is a party and any

  

Page 16 of 24

  

duplicative amount payable under any such agreement, plan or program shall be applied as an offset to reduce the amounts otherwise payable hereunder. The Additional Termination Entitlements provided hereunder, when due and payable or provided to the Officer, or in the case of the Officer's death, to his or her estate, surviving dependants or designated beneficiaries, as applicable, are acknowledged to be in lieu of any benefits that would otherwise be provided under such circumstances pursuant to the Association's Severance Pay Plan, as amended, or Severance Compensation Plan, as amended.

 

	
  

	
Section 13.

	
Successors and Assigns.

 

This Agreement will inure to the benefit of and be binding upon the Officer, the Officer's legal representatives and testate or intestate distributees, and the Company and the Association and their respective successors and assigns, including any successor by merger or consolidation or a statutory receiver or any other person or firm or corporation to which all or substantially all of the assets and business of the Company or the Association may be sold or otherwise transferred. Failure of the Company to obtain from any successor its express written assumption of the Company's or Association's obligations hereunder at least 60 days in advance of the scheduled effective date of any such succession shall, if such
succession constitutes a Change of Control, constitute Good Reason for the Officer's resignation on or at any time during the Term following the occurrence of such succession.

 

	
  

	
Section 14.

	
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 affect any such action shall be null, void, and of no effect.

 

	
  

	
Section 15.

	
Notices.

 

Any communication required or permitted to be given under this Agreement, including any notice, direction, designation, consent, instruction, objection or waiver, shall be in writing and shall be deemed to have been given at such time as it is delivered personally, or five days after mailing if mailed, postage prepaid, by registered or certified mail, return receipt requested, addressed to such party at the address listed below or at such other address as one such party may by written notice specify to the other party:

 

  

Page 17 of 24

  

If to the Officer:

 

Peter M. Finn

315 Harold Avenue

Leonia, New Jersey 07605

If to the Company or the Association:

Astoria Financial Corporation

One Astoria Federal Plaza

Lake Success, New York 11042

 

Attention:  Executive Vice President, Secretary and General Counsel

 

with a copy to:

 

Arnold & Porter

399 Park Avenue

New York, NY 10022

 

Attention:  W. Edward Bright, Esq.

 

 

Section 16.          Indemnification for Attorneys' Fees.

 

(a)           The Association shall indemnify, hold harmless and defend the Officer against reasonable costs, including legal fees, incurred by him in connection with or arising out of any action, suit or proceeding in which he may be involved, as a result of the Officer's efforts, in good faith, to defend or enforce the terms of this Agreement; provided, however, that the Officer shall have substantially prevailed on the merits pursuant to a judgment, decree or order of a court of competent jurisdiction or of an arbitrator in an arbitration proceeding, or in a settlement. For purposes of this Agreement, any settlement agreement which provides for payment of
any amounts in settlement of the Association's obligations under this Agreement shall be conclusive evidence of the Officer's entitlement to indemnification under this Agreement, and any such indemnification payments shall be in addition to amounts payable pursuant to such settlement agreement, unless such settlement agreement expressly provides otherwise.

 

(b)           The Association's or the Company's obligation to make the payments provided for in this Agreement and otherwise to perform their respective obligations under this Agreement shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Association or the Company may have against the Officer or others. In no event shall the Officer be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Officer under any of the provisions of this Agreement and such amounts shall not be reduced whether or not the Officer obtains other employment. Unless it
is determined that the Officer has acted frivolously or in bad faith, the Association shall pay as incurred, to the full extent permitted by law, all legal fees and expenses which the Officer may reasonably incur as a result of or in connection with the Officer's

 

  

Page 18 of 24

  

consultation with legal counsel or arising out of any action, suit, proceeding, tax controversy, appeal or contest (regardless of the outcome thereof) by the Association, the Company, the Officer or others regarding the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by the Officer about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at the applicable Federal rate provided for in section 7872(f)(2)(A) of the Code.

 

(c)           Any payment or reimbursement by the Association or the Company pursuant to this section 16 shall be made no later than the last day of the calendar year following (i) the calendar year in which the Officer incurs the expense, or (ii) if later, in the case of fees or expenses incurred due to a tax audit or litigation addressing the existence or amount of a tax liability regarding any excise tax that is subject to indemnification by the Officer under section 7 of this Agreement, (A) the calendar year in which such tax liability is paid, or (B), if no tax liability is to be paid as a result of such tax audit or litigation, the calendar year in
which the audit is completed or there is a final and nonappealable settlement or other resolution of the litigation, or (iii), if later, within sixty (60) days after the settlement or resolution that gives rise to the Officer's right to reimbursement; provided, however, that the Officer shall have submitted to the Association or the Company documentation supporting such expenses at such time and in such manner as the Association or the Company may reasonably require.

 

	
  

	
Section 17.

	
Employment Rights and Funding Obligations.

 

(a)           Nothing expressed or implied in this Agreement shall create any right or duty on the part of the Association, the Company or the Officer to have the Officer continue as an officer of the Association or the Company or to remain in the employment of the Association, the Company.

 

(b)           Nothing expressed or implied in this Agreement shall create any right or duty on the part of the Association, the Company or the Officer to create a trust of any kind to fund any benefits which may be payable pursuant to this Agreement, and to the extent that the Officer acquires a right to receive benefits from the Association or the Company pursuant to this Agreement, such right shall be no greater than the right of any unsecured general creditor of the Association or the Company, respectively.

 

	
  

	
Section 18.

	
Withholding.

 

The Association or the Company, as applicable, shall have the right to deduct and withhold from any amounts paid in cash pursuant to this Agreement by the Association or the Company, respectively, any taxes or other amounts required by law to be withheld with respect to such payment.

 

	
  

	
Section 19.

	
Compliance with Section 409A of the Code.

 

The Officer, the Association and the Company acknowledge that each of the payments and benefits promised to the Officer under this Agreement must either comply with the requirements of Section 409A of the Code and the regulations thereunder ("Section 409A") or

 

  

Page 19 of 24

  

qualify for an exception from compliance.  To that end, the Officer, the Association and the Company agree that

 

(a)           the payment described in section 2(a) is intended to be excepted from compliance with Section 409A pursuant to Treasury Regulation section 1.409A-1(b)(3) as payment made pursuant to the Company’s customary payment timing arrangement;

 

(b)           the benefits and payments described in section 2(b) are expected to comply with or be excepted from compliance with Section 409A on their own terms;

 

(c)           the payments on a disability described in section 4(b) are expected to be excepted from compliance with Section 409A as “disability pay” pursuant to Treasury Regulation section 1.409A-1(a)(5);

 

(d)           the welfare benefits provided in kind under section 6(b)(i) are intended to be excepted from compliance with Section 409A as welfare benefits pursuant to Treasury Regulation section 1.409A-1(a)(5) and/or as benefits not includible in gross income;

 

(e)           the Tax Indemnity Payment provided under section 7 is intended to satisfy the requirements for a “tax gross-up payment” described in Treasury Regulation section 1.409A-3(i)(1)(v);

 

(f)           the indemnification provided in section 8(a) is intended to be excepted from compliance with Section 409A pursuant to Treasury Regulation section 1.409A-1(b)(10) as indemnification against claims based on acts or omissions as a service provider;

 

(g)           the general indemnification and reimbursements described in section 16 are intended to satisfy the requirements for a "reimbursement plan" described in Treasury Regulation section 1.409A-3(i)(1)(iv) and shall be administered to satisfy such requirements; and

 

(h)           the reimbursements of expenses incurred due to a tax audit or litigation addressing a tax liability in section 16 are intended to satisfy the requirements for reimbursement of expenses incurred under such audits or litigation described in Treasury Regulation section 1.409A-3(i)(1)(v).

 

In the case of a payment that is not excepted from compliance with Section 409A, and that is not otherwise designated to be paid immediately upon a permissible payment event within the meaning of Treasury Regulation section 1.409A-3(a), the payment shall not be made prior to, and shall, if necessary, be deferred (with interest at the annual rate of 6%, compounded monthly from the date of the Officer’s termination of employment to the date of actual payment) to and paid on the later of the date sixty (60) days after the Officer’s earliest separation from service (within the meaning of Treasury Regulation section 1.409A-1(h)) and, if the Officer is a

 

  

Page 20 of 24

  

specified employee (within the meaning of Treasury Regulation section 1.409A-1(i)) on the date of his or her separation from service, the first day of the seventh month following the Officer’s separation from service.  Each amount payable under this plan that is required to be deferred beyond the Officer’s separation from service, shall be deposited on the date on which, but for such deferral, the Association or the Company would have paid such amount to the Officer, in a grantor trust which meets the requirements of Revenue Procedure 92-65 (as amended or superseded from time to time), the trustee of which shall be a financial institution selected by the Association or the Company with
the approval of the Officer (which approval shall not be unreasonably withheld or delayed), pursuant to a trust agreement the terms of which are approved by the Officer (which approval shall not be unreasonably withheld or delayed) (the “Rabbi Trust”), and payments made shall include earnings on the investments made with the assets of the Rabbi Trust, which investments shall consist of short-term investment grade fixed income securities or units of interest in mutual funds or other pooled investment vehicles designed to invest primarily in such securities.  Furthermore, this Agreement shall be construed and administered in such manner as shall be necessary to effect compliance with Section 409A.

 

	
  

	
Section 20.

	
Severability.

 

A determination that any provision of this Agreement is invalid or unenforceable shall not affect the validity or enforceability of any other provision hereof.

 

	
  

	
Section 21.

	
Survival.

 

The rights and obligations of the Association, the Company and the Officer under this Agreement, unless otherwise expressly provided in this Agreement, shall survive the expiration of the term or other termination of this Agreement.

 

	
  

	
Section 22.

	
Waiver.

 

Failure to insist upon strict compliance with any of the terms, covenants or conditions hereof shall not be deemed a waiver of such term, covenant, or condition. A waiver of any provision of this Agreement must be made in writing, designated as a waiver, and signed by the party against whom its enforcement is sought. Any waiver or relinquishment of any right or power hereunder at any one or more times shall not be deemed a waiver or relinquishment of such right or power at any other time or times.

 

	
  

	
Section 23.

	
Counterparts.

 

This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same Agreement.

 

	
  

	
Section 24.

	
Governing Law.

 

Except to the extent preempted by federal law, this Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York applicable to contracts entered into and to be performed entirely within the State of New York.

 

  

Page 21 of 24

  

	 	
Section 25. 

	
Headings and Construction.

 

The headings of sections in this Agreement are for convenience of reference only and are not intended to qualify the meaning of any section. Any reference to a section number shall refer to a section of this Agreement, unless otherwise stated.

 

	
  

	
Section 26.

	
Entire Agreement; Modifications.

 

This instrument 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. No modifications of this Agreement shall be valid unless made in writing and signed by the parties hereto; provided, however, that this Agreement shall be subject to amendment in the future in such manner as the Association or the Company shall reasonably deem necessary or appropriate to effect compliance with Section 409A, and to avoid the imposition of penalties and additional taxes under Section 409A, it being the express
intent of the parties that any such amendment shall not diminish the economic benefit of the Agreement to the Officer on a present value basis.

 

	
  

	
Section 27.

	
Required Regulatory Provisions.

 

The following provisions are included for the purposes of complying with various laws, rules and regulations applicable to the Association:

 

(a)           Notwithstanding anything herein contained to the contrary, in no event shall the aggregate amount of compensation payable to the Officer on account of the Officer's termination of employment exceed three times the Officer's average annual total compensation for the last five consecutive calendar years to end prior to the Officer's termination of employment with the Association (or for the Officer's entire period of employment with the Association if less than five calendar years).

 

(b)           Notwithstanding anything herein contained to the contrary, any payments to the Officer by the Association, 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 ("FDI Act"), 12 U.S.C. Section 1828(k), and any regulations promulgated thereunder.

 

(c)           Notwithstanding anything herein contained to the contrary, if the Officer is suspended from office and/or temporarily prohibited from participating in the conduct of the affairs of the Association pursuant to a notice served under section 8(e)(3) or 8(g)(1) of the FDI Act, 12 U.S.C. Section 1818(e)(3) or 1818(g)(1), the Association's obligations under this Agreement shall be suspended as of the date of service of such notice, unless stayed by appropriate proceedings. If the charges in such notice are dismissed, the Association, in its discretion, may (i) pay to the Officer all or part of the compensation withheld while the Association's
obligations hereunder were suspended and (ii) reinstate, in whole or in part, any of the obligations which were suspended.

 

  

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(d)           Notwithstanding anything herein contained to the contrary, if the Officer is removed and/or permanently prohibited from participating in the conduct of the Association's affairs by an order issued under section 8(e)(4) or 8(g)(1) of the FDI Act, 12 U.S.C. Section 1818(e)(4) or (g)(1), all prospective obligations of the Association under this Agreement shall terminate as of the effective date of the order, but vested rights and obligations of the Association and the Officer shall not be affected.

 

(e)           Notwithstanding anything herein contained to the contrary, if the Association is in default (within the meaning of section 3(x)(1) of the FDI Act, 12 U.S.C. Section 1813(x)(1), all prospective obligations of the Association under this Agreement shall terminate as of the date of default, but vested rights and obligations of the Association and the Officer shall not be affected.

 

(f)           Notwithstanding anything herein contained to the contrary, all prospective obligations of the Association hereunder shall be terminated, except to the extent that a continuation of this Agreement is necessary for the continued operation of the Association: (i) by the Director of the Office of Thrift Supervision ("OTS") or his designee or the Federal Deposit Insurance Corporation ("FDIC"), at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Association under the authority contained in section 13(c) of the FDI Act, 12 U.S.C. Section 1823(c); (ii) by the Director of the OTS or his designee at the time such
Director or designee approves a supervisory merger to resolve problems related to the operation of the Association or when the Association is determined by such Director to be in an unsafe or unsound condition. The vested rights and obligations of the parties shall not be affected.

 

If and to the extent that any of the foregoing provisions shall cease to be required or by applicable law, rule or regulation, the same shall become inoperative as though eliminated by formal amendment of this Agreement. None of the foregoing provisions, other than section 27(b) shall limit any obligations of the Company under this Agreement.

 

	
  

	
Section 28.

	
Guaranty.

 

The Company hereby irrevocably and unconditionally guarantees to the Officer the payment of all amounts, and the performance of all other obligations, due from the Association in accordance with the terms of this Agreement as and when due without any requirement of presentment, demand of payment, protest or notice of dishonor or nonpayment. Solely for purposes of determining the extent of the Company's guarantee, the obligations of the Association under this Agreement shall be determined as though section 27(a), (c), (d), (e) and (f) did not apply to the Association.

 

  

Page 23 of 24

  

IN WITNESS WHEREOF, the Association and the Company have caused this Agreement to be executed and the Officer has hereunto set the Officer's hand, all as of the day and year first above written.

 

	  	
/S/ Peter M. Finn

	  	
PETER M. FINN

 

	
Attest:

	  	  	
ASTORIA FEDERAL SAVINGS AND LOAN ASSOCIATION

	 	 	 	 
	
By:  

	
/S/ Alan P. Eggleston

	
By:  

	
/S/ Monte N. Redman

	
Name:  

	
Alan P. Eggleston

	
Name:  

	
Monte N. Redman

	 	 	 	 
	
Title:  

	
Executive Vice President, Secretary and General Counsel

	
Title:  

	
President and Chief Operating Officer

  

	
Attest:

	  	  	
ASTORIA FINANCIAL CORPORATION

	  	  	  	  
	
By:  

	
/S/ Alan P. Eggleston

	
By:  

	
/S/ Monte N. Redman

	
Name:  

	
Alan P. Eggleston

	
Name:  

	
Monte N. Redman

	 	 	 	 
	
Title:  

	
Executive Vice President, Secretary and General Counsel

	
Title:  

	
President and Chief Operating Officer

  

Page 24 of 24Unassociated Document

EXHIBIT 10.1

 

EMPLOYMENT AGREEMENT

 

Employment Agreement (this “Agreement”), dated as of February 18, 2011 (the “Effective Date”), by and between Corporate Resource Services, Inc., a Delaware corporation (the “Company”), and Scott Schecter (the “Executive”).

 

In consideration of the mutual promises and covenants set forth herein, the parties agree as follows:`

 

1.           Employment.  The Company hereby employs the Executive as Chief Financial Officer (“CFO”) during the Term of this Agreement (as set forth in Paragraph 4 below).  The Executive hereby accepts such employment with the Company under the terms and conditions set forth in this Agreement.

 

2.           Duties and Authority of the Executive.

 

(a)           Throughout the Term, the Executive shall have such duties and authority as shall be consistent with the Executive’s position as CFO and as may be reasonably assigned to the Executive from time to time by the Chief Executive Officer (the “CEO”) or the President (the “President”) of the Company, and the Executive shall report to the CEO and the President.

 

(b)           The Company shall provide Executive with the resources and support necessary for the accurate reporting and disclosure of financial information, protection of corporate assets, and compliance with applicable legal requirements, in connection with the performance of his duties as CFO.

 

(c)           The Company shall hire by June 30, 2011, the following two full time Finance Department employees: (I) an Assistant Controller and (2) an administrative assistant.  The Executive shall diligently assist and cooperate with the Company in recruiting and hiring for these positions.

 

3.           Full Business Time.  Throughout the Term, the Executive agrees to devote all or substantially all of the Executive’s professional time and efforts to the performance of the Executive’s duties hereunder.  Provided that such activities do not violate any term or condition of this Agreement, or materially interfere with the performance of the Executive’s duties hereunder, or create a conflict of interest, nothing herein shall prohibit the Executive from (a) participating in other business activities approved in advance in
writing by the CEO in accordance with any terms and conditions of such approval, (b) engaging in charitable, civic, fraternal or trade group activities, (c) investing the Executive’s personal assets in other entities or business ventures, subject to any policies of the Company applicable to all executive personnel of the Company, (d) continuing to serve on the boards of directors of the Jacob Wetchler Foundation for Innovative Pediatric Cancer Research and bieMedia, Inc, or (e) serving on the board of directors of another entity, provided that such service is approved in advance in writing by the CEO.

 

4.           Term.  The term of this Agreement (the “Term”) is the period which commences on the Effective Date and ends on September 30, 2015, or any earlier date pursuant to Paragraph 9 of this Agreement.  If the Executive’s employment continues after the expiration of the Term, then any such continued employment (a) shall be on an “at will” basis, meaning that the Executive may resign at any time, without prior notice, for any or no reason, and that the Company may end the employment relationship at any time, without prior
notice, for any or no reason, and (b) shall be subject to the terms of this Agreement (other than those provisions of Paragraph 9 which expressly apply to a termination of or resignation from employment which occurs during the Term), which terms may unilaterally be modified by the Company prospectively after the Term by delivery of written notice to the Executive of such modification, except for Paragraphs 9(f)(ii) and 9(g)(ii), which may only be modified by an agreement executed by both parties.  Unless an amendment extending the Term, or a new agreement applicable after September 30, 2015, is executed by Executive and the Company by May 1, 2015, Executive shall be afforded reasonable time away from work to seek other employment.

 

  

  

  

 

5.           Base Compensation.  During the Term, the Company shall pay the Executive a base salary (“Base Salary”), subject to applicable payroll deductions and withholdings, at the rate of Three Hundred Thousand Dollars ($300,000) per annum, which shall be subject to increase in the sole discretion of the Company.

 

6.           Bonus.

 

(a)           The Executive shall be paid a Bonus for signing this Agreement in the gross amount of Twenty Five Thousand Dollars ($25,000.00), subject to applicable payroll deductions and withholdings, which shall be paid in equal weekly amounts over a six-week period commencing on the second payroll date following the Effective Date.

 

(b)           For each calendar year during the Term (a “Bonus Year”) in which the Executive remains employed through December 31 of such year, the Executive shall be eligible to earn a performance bonus based on the Company’s achievement of performance targets and the Executive’s achievement of performance goals.  The Executive and the CEO shall mutually agree on targets and goals for each Bonus Year by January 31 of such year (except for 2011, in which such date will be March 31, 2011), provided, however, if they are unable to reach agreement by such date, then the Compensation Committee of the Board of
Directors of the Company (the “Board”) shall establish such goals and targets, after presentations by the CFO and CEO, by February 28 of such year (except for 2011, in which such date will be April 29, 2011).  If the Executive and the Company fully achieve the goals and targets for a Bonus Year, then the Executive shall be awarded a Bonus for such year in an amount equal to 50% of Base Salary (the ‘Target Bonus”) for such year.  If the goals are partially achieved, Executive shall be awarded a percentage of the Target Bonus, based upon the percentage of each goal that has been achieved.  The CEO shall decide, in the good faith exercise of his judgment, the extent to which the Executive and the Company have achieved the goals and targets for each Bonus Year.  The Bonus, if any, for each Bonus Year shall be paid in full by
March 15 of the year following the Bonus Year, in four equal weekly installments commencing on February 1 of the year following the Bonus Year (or, if February 1 is not a business day, then the first business day after February 1), subject to the condition that the Executive remains employed through December 31 of the Bonus Year, except to the extent otherwise provided in Paragraph 9 herein, such as in the event of termination without Cause, resignation for Good Reason, or non-extension of the Term of this Agreement.

 

  

2

  

 

7.           Restricted Stock/Restricted Stock Units.

 

(a)           On or before March 15, 2011, the Company shall award (the “Award”) the Executive, pursuant to a restricted stock unit agreement between the Company and the Executive (the “RSU Agreement”), 555,000 Restricted Share Units (“RSUs”), which Award shall vest in accordance with the provisions of Paragraph 7(b).

 

(b)           Subject to the condition that the Executive is employed by the Company as of a vesting date, the Award shall vest in equal amounts over a three-year period as follows:  (i) 185,000 RSUs shall vest immediately when awarded; (ii) 185,000 RSUs shall vest on March 1, 2012; and (iii) 185,000 RSUs shall vest on December 31, 2012.  If the Executive’s employment ceases for any reason prior to a vesting date, then the Executive shall not be entitled to any benefits or rights for RSUs which have not vested as of such date of termination of or resignation from employment, except as provided in Paragraph
9(f)(i) and 9(g)(i).

 

(c)           The Company shall have the right to withhold from amounts otherwise payable to the Executive such withholding taxes as may be required by law in connection with the vesting of RSUs, or to otherwise require the Executive to pay such withholding taxes.  The Company shall file all required tax information returns in respect of such vesting.  At the Executive’s sole discretion, the Executive shall have the right to require the Company to satisfy the withholding tax obligations that arise in connection with the vesting of RSUs by reducing the number of shares of Company common stock
(“Shares”) otherwise deliverable to the Executive as a result of such vesting by such whole number of Shares having an aggregate value equal to the aggregate withholding tax obligations, with such Shares to be valued in the same manner used to calculate the income derived by the Executive.

 

8.           Employee Benefits.  Throughout the Executive’s employment during the Term, the Company shall provide the Executive with:

 

(a)           family group medical and dental insurance fully paid by the Company with coverage as favorable as provided to any senior executive of the Company or its affiliates, and if Executive elects not to participate in said Company benefits, reimbursement of the premium amount for other family coverage obtained by Executive;

 

(b)           reimbursement for the annual premium cost of a term life insurance policy in the amount of $1,000,000, pursuant to which Executive may name his beneficiary;

 

(c)           reimbursement for the annual premium cost of the Executive individual long term disability (“LTD”) insurance policy (or policies) in an amount not to exceed $10,500 per year;

 

(d)           reimbursement for professional dues and licenses (such as AICPA, NYSSCPA dues and New York CPA license) paid by the Executive;

 

(e)           four weeks paid vacation per year, the dates being subject to prior reasonable approval by the CEO, provided that (i) payment for unused vacation for 2010, in the gross amount of $10,000, will be paid to Executive by April 1, 2011, and (ii) unused vacation accrued after 2011 will neither be carried over to subsequent calendar years nor paid after termination of employment;

 

  

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(f)           any other fringe benefits offered to senior executives of the Company and its affiliates;

 

(g)           reimbursement for all reasonable and necessary business and travel expenses, and other disbursements incurred by the Executive for or on behalf of the Company in the performance of the Executive’s duties hereunder, upon presentation by the Executive to the Company of an appropriate accounting or documentation of such in accordance with Company policies, which shall be paid within 30 days of submission of all required documentation;

 

(h)           coverage in reasonable amounts and subject to reasonable conditions under a Directors and Officers Liability Insurance policy and an Employment Practices Liability Insurance policy; and

 

(i)           an office comparable to his current office.

 

9.           Termination.

 

(a)           Death.  If the Executive dies, then this Agreement shall automatically terminate as of the date of the Executive’s death, and the Executive’s Base Salary shall continue to be paid to his estate for ninety (90) days after the date of the Executive’s termination.  For purposes of this agreement, the actual date that Executive’s employment with the Company is terminated shall hereinafter be referred to as the “Termination Date”.

 

(b)           Disability.  If the Executive is unable to perform the Executive’s duties hereunder as a result of any physical or mental disability (i) which continues for one hundred and eighty (180) consecutive calendar days or (ii) for any one hundred and thirty (130) business days in any three hundred sixty-five (365) consecutive calendar day period, then the Company may terminate the Executive’s employment upon thirty (30) days’ written notice to the Executive, and the Executive shall not receive any additional payments after the Termination
Date.

 

(c)           Termination by the Company for Cause.  The Company may, by action of the Board, terminate the Executive’s employment with the Company for Cause.  Termination for “Cause” shall mean termination by the Company upon written notification to the Executive, setting forth in reasonable detail the specific conduct of Executive considered to constitute Cause and the specific provision of this Agreement upon which the Company relies, on account of one or more of the following reasons:

 

(i)           the Executive’s conviction by a court of competent jurisdiction in the United States (including a nolo contendere plea) of a felony, or a crime involving, fraud, dishonesty or moral turpitude;

 

(ii)           notwithstanding (i) above, the Executives conviction by a court of competent jurisdiction for a violation of federal or state criminal laws committed by Executive in connection with the performance of his duties under this Agreement;

 

  

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(iii)           in connection with the performance of his duties under this Agreement and resulting in demonstrable material harm to the Company, any of the following: the Executive’s gross negligence, willful violation of Company policies, or, breach of fiduciary duty or intentional tortious conduct;

 

(iv)           in connection with the performance of his duties under this Agreement, the Executive’s willful and material violation of applicable securities laws;

 

(v)           the Executive’s willful, material and continued failure or refusal to comply with the lawful directions of the CEO or President regarding Executive’s substantive duties, or to perform the Executive’s substantive duties under this Agreement, other than as a result of mental or physical illness or injury, subject to the condition that the Executive fails to substantially cure such failure or refusal within thirty (30) days of receiving a written termination notice, provided that no such cure period shall apply if such failure or refusal is not susceptible to cure; or

 

(vi)           The Executive’s willful and material breach of any of the covenants set forth in Paragraphs 10 and 11 of this Agreement.

 

Notwithstanding anything to the contrary in this Agreement, no act or omission of Executive shall constitute Cause under subparagraphs (iii), (iv), (v) or (vi) above, so long as he acts in good faith and with reasonable diligence, and takes whatever actions are necessary or appropriate to address and/or resolve any such issue.

 

(d)           Resignation without Good Reason.  The Executive may resign during the Term for reasons other than those described in Paragraph 9(g) by delivering written notice to the Company 60 days in advance of the effective date of his resignation.  The Company may, in its discretion, require that the Executive cease performing services for the Company during any portion of such sixty day period, during which Executive’s employment and rights under this Agreement shall continue, except that the requirement that Executive cease performing services
shall not constitute Good Reason for Executive’s resignation.  After the Term, Executive may resign at any time and without any reason, without providing advance notice to the Company.

 

(e)           Payment of Base Salary.  Upon any of the terminations identified in Paragraphs 9(a), (b), (c) or (d) above, either during or after the Term, the Executive or the Executive’s estate shall be entitled to receive only the Executive’s Base Salary through the date of the Executive’s resignation or termination.  Notwithstanding the foregoing, if the Term of this Agreement is not extended and the Executive resigns in October, November or December 2015 without Good Reason, then Executive shall be eligible for a pro-rated Bonus for
20 IS calculated pursuant to Paragraph 9(f)(ii)(E).

 

(f)           Termination by the Company without Cause.  The Company may terminate the Executive’s employment without Cause at any time by delivery of a termination notice.

 

(i)           If the Company terminates the Executive’s employment without Cause during the Term, then any RSUs then unvested shall immediately vest and the Company shall: (A) pay the Executive’s Base Salary through the Termination Date; (B) continue to pay the Executive Base Salary, and reimburse LTD premiums, for twelve (12) months after the Termination Date; (C) pay any Bonus earned for the Bonus Year prior to the year in which the termination occurs which has not been paid as of the Termination Date; (D) pay a Bonus for the Bonus Year in which the termination occurs, to the extent that the Executive and the Company
achieve the goals and targets for such Bonus Year as determined by the CEO pursuant to Paragraph 6, provided that any such Bonus (I) shall be pro-rated based on the period of time the Executive worked for the Company in the Bonus Year, and (II) shall be paid at the time provided in Paragraph 6; and (E) for twelve (12) months after the Termination Date, (x) continue medical and dental insurance coverage (to the extent permitted by applicable group insurance contracts), pay the Executive’s COBRA premium costs (provided that the Executive timely elects COBRA coverage), or (z) continue to reimburse Executive for premium payments as provided in Paragraph 8(a).

  

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(ii)           If the Company terminates the Executive’s employment without Cause after the expiration of the Term, then the Company shall: (A) pay the Executive’s Base Salary through the Termination Date; (B) continue to pay the Executive Base Salary for six (6) months after the Termination Date; (C) pay any Bonus earned for the Bonus Year prior to the year in which the termination occurs which has not been paid as of the Termination Date; (D) for six (6) months after the Termination Date, (x) continue medical and dental insurance coverage (to the extent permitted by applicable group insurance contracts), (y) pay the
Executive’s COBRA premium costs (provided that the Executive timely elects COBRA coverage), or (z) continue to reimburse Executive for premium payments as provided in Paragraph 8(a); and (E) if the termination occurs in October, November or December 2015, pay a pro-rata Bonus for 2015, based on the fraction of the year worked by the Executive in 2015 and the percentage of each goal achieved through the date of termination.

 

(iii)           Any benefits provided and payments made pursuant to Paragraph 9(f) or 9(g) shall be due at such time as they would have been provided or paid had Executive’s employment continued under this Agreement (except for RSUs that shall immediately vest), and in the event of Executive’s death, shall be provided or paid to his estate.

 

(g)           Resignation by Executive for Good Reason or Change in Control.

 

(i)           The Executive may resign during the Term for “Good Reason” if (A) the Company breaches any of its obligations under Paragraphs 1, 2(b), 2(c), 5,6,7, 8(a)-(i) or 14 of this Agreement, (B) the Company assigns duties to the Executive which are not consistent with the Executive’s office as set forth in Paragraph 1, takes any other action that results in a material diminution in the Executive’s authority, duties, or responsibilities as CFO, or requires him to report to any person or entity other than the Board, the CEO or the President, (C) the Company assigns Executive to work in a location that is not
in New York City, Westchester County, NY, Bergen County, NJ or Fairfield County, CT, without the Executives’ consent; or (D) the Company provides a directive to Executive that, if followed, would result in a violation of law, breach of fiduciary duty, or the breach of any duty to the shareholders of the Company.  If the Executive resigns for Good Reason during the Term, then such resignation shall be treated as a termination without Cause during the Term for all purposes of this Agreement, including but not limited to the Executive’s entitlement to payments, RSU vesting and continued benefits pursuant to Paragraph 9(f)(i).

 

  

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(ii)           The Executive may resign for Good Reason after the expiration of the Term if (A) the Company fails to pay or reduces, Base Salary , (B) the Company breaches its payment obligations under Paragraph 14 of this Agreement; (C) the Company assigns Executive to work in a location that is not in New York City, Westchester County, NY, Bergen County, NJ or Fairfield County, CT, without the Executives’ consent; or (D) the Company assigns duties to Executive that are not consistent with his experience or abilities.  If the Executive resigns for Good Reason after the Term, then such resignation shall be treated as a
termination without Cause after the Term for all purposes of this Agreement, including but not limited to the Executive’s entitlement to payments and continued benefits pursuant to Paragraph 9(f)(ii).

 

(iii)           Notwithstanding any provision of Paragraph 9(g) to the contrary, the Executive may only resign for Good Reason at any time if (A) within ninety (90) days after the Executive first has actual knowledge of the occurrence of the action or event constituting Good Reason, the Executive gives notice to the Company of the Executive’s intention to resign for Good Reason, which sets forth in reasonable detail the specific conduct of the Company considered to constitute Good Reason and the specific provision of this Agreement upon which the Executive relies, (B) the Company does not revoke or reasonably cure any such action
or event within thirty (30) days after the date of delivery of such notice, and (C) the Executive resigns within sixty (60) days after the date of delivery of such notice.

 

(iv)           The Executive may resign for any or no reason within three months after a Change in Control during the Term, upon providing two (2) weeks advance written notice, in which case the Company shall: (I) pay the Executive’s Base Salary through the Termination Date; (II) pay the Executive a lump sum amount equal to two years of Base Salary as of the Termination Date within sixty days after the Termination Date; and (III) reimburse Executive’s LTD premiums for the twelve month period after the Termination Date and provide to Executive all payments and benefits described in Paragraph 9(f)(i)(B-(E).  For
purposes of this Agreement, a “Change in Control” shall be deemed to occur when and only when any of the following events first occurs:

 

(A)           any person or entity (or related persons or entities) who or that is (or are) not currently such becomes the beneficial owner, directly or indirectly, of securities of the Company representing at least 50% of the combined voting power of the Company’s then outstanding voting securities, or of securities or other equity or rights convertible into such voting securities;

 

(B)           individuals who at any time during the Term, constitute the board of directors of the Company cease, for any reason, to constitute at least a majority of the board of directors, unless the election or nomination for election of each new director was approved by a majority of the directors then still in office who were directors at the beginning of the Term; or

 

(C)           any merger (other than a merger where the Company is the survivor and there is no accompanying Change in Control under clause (a) of this Paragraph 10), consolidation, liquidation or dissolution of the Company, or the sale, transfer or other disposition (whether in a single transaction or a series of coordinated or related transactions) of all or substantially all of the assets of the Company.

 

  

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(D)           Notwithstanding the foregoing, a Change in Control shall not be deemed to occur pursuant to clause (A) of this Paragraph 9(g)(v) solely because 50% or more of the combined voting power of the Company’s outstanding securities is acquired by one or more employee benefit plans maintained by the Company or by any other employer, the majority interest in which is held, directly or indirectly, by the Company.  For purposes of this Paragraph 9(h), the terms “person” and “beneficial owner” shall have the meaning set forth in Sections 3(a) and 13(d) of the Exchange Act, and in the regulations
promulgated thereunder.

 

(h)           Withholding; Separation Agreement.  All payments described in Paragraphs 9(f) and 9(g) are subject to deductions and withholdings required by applicable law.  In order to receive the payments, acceleration of RSU vesting, and benefits pursuant to Paragraphs 9(f) and 9(g) (other than Base Salary earned prior to the Termination Date), the Executive shall be required to execute a separation agreement and release in form and substance as provided in Exhibit “A” hereto, which may be modified by the Company to comply in good faith with
any changes in applicable law (“Separation Agreement”).  The Company shall provide to Executive within 5 business days of Executives resignation from or the termination of his employment the Separation Agreement it has prepared for his signature in accordance with the terms of this Agreement, which shall specifically reference the consideration the Company shall provide to Executive under the Separation Agreement.  The Executive shall execute the Separation Agreement so as to be effective no later than 60 days following the Executive’s termination or resignation, and promptly return it to the Company.

 

10.           Confidentiality Agreement and Ownership of Information.

 

(a)           The Executive agrees that during the course of employment with the Company, the Executive has and will come into contact with and have access to various forms of Confidential Information and Trade Secrets, which are the property of the Company.  This information relates to the Company, its customers and its employees.  Such Confidential Information and Trade Secrets include, but are not limited to: (i) financial and business information, such as information with respect to costs, commissions, fees, profits, sales, markets, mailing lists, strategies and plans for future business, new business, product or
other development, potential acquisitions or divestitures, new marketing ideas, and intellectual property and trade secrets; (ii) product and technical information, such as product formulations, new and innovative product ideas, methods, procedures, devices, machines, equipment, data processing programs, software, software codes, computer models, and research and development projects; marketing information, such as the identity of the Company’s customers, distributors and suppliers and their names and addresses, the names of representatives of the Company’s customers, distributors or suppliers responsible for entering into contracts with the Company, the amounts paid by such customers to the Company, details of contracts, pricing policies, price lists, trade promotion and discount schedules, operational methods, specific customer needs and requirements, and leads and
referrals to prospective customers; and (iv) personnel information, such as the identity and number of the Company’s employees, their salaries, bonuses, benefits, skills, qualifications, and abilities.  The Executive acknowledges and agrees that the Confidential Information and Trade Secrets are not generally known or available to the general public, but have been developed, compiled or acquired by the Company at its great effort and expense and that Confidential Information and Trade Secrets can be in any form, whether oral or written, reduced to paper or electronic.

 

  

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(b)           During the Term and for as long as such information shall remain Confidential Information or Trade Secrets of the Company, the Executive will not disclose to any person or entity, without the Company’s prior consent, any Confidential Information or Trade Secrets of the Company, whether prepared by the Executive or others, except in the course of the Executive’s employment with the Company and in furtherance of the Company’s business.

 

(c)           (i)  Upon the Executive’s resignation or the termination of the Executive’s employment with the Company for whatever reason, with or without Cause, or at any other time the Company so requests, the Executive will promptly deliver to the Company all originals and copies (whether in note, memo or other document form or on video, audio or computer tapes or discs or otherwise) of (A) Confidential Information or Trade Secrets of the Company that is in the Executive’s possession, custody or control, whether prepared by the Executive or others, and (B) all records, designs, patents, plans, manuals,
memoranda, lists and other property of the Company delivered to the Executive by or on behalf of the Company or by its customers, and all records compiled by the Executive which pertain to the business of the Company, whether or not confidential.  All such material shall be and remain the property of the Company and shall be subject at all times to its discretion and control.

 

(ii)           Information shall not be deemed Confidential Information or Trade Secrets if:

 

(A)           such information was available to the public prior to disclosure thereof by the Executive,

 

(B)           such information shall, other than by an act or omission on the Executive’s part, be or become available to the public or lawfully made available by a third party to the public without restrictions as to disclosure;

 

(C)           such information is approved for disclosure to the public by prior written consent from the Board, and the terms of any said written consent shall govern its disclosure; or

 

(D)           such information was already in the lawful possession of the Executive prior to the Executive’s receipt of such information from the Company.

 

(iii)           Notwithstanding the foregoing, Confidential Information or Trade Secrets of the Company may be disclosed where required by law or order of a court of competent jurisdiction, provided that, to the extent reasonably practicable, the Executive first gives to the Board reasonable prior notice of such disclosure and affords the Company, to the extent reasonably practicable, the reasonable opportunity for the Company to obtain protective or similar orders, where available.  Nothing in this Paragraph 10 or in Paragraph 11 shall preclude Executive from undertaking employment with any person or entity.

 

11.           Non Interference Provisions.

 

(a)           While employed by the Company and for twelve months after the Executive’s employment ends for any reason (the “Restricted Period”), the Executive shall not, without the prior written consent of the Board, directly or indirectly, solicit, divert, disrupt or appropriate or attempt to solicit, divert, disrupt, or appropriate any customer, client, supplier or other relationships, contractual or otherwise, of the Company with respect to those persons who are customers, clients, or suppliers of, or have some other relationship, contractual or otherwise, with the Company at the time of the Termination Date or
within twelve (12) months prior thereto.

 

  

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(b)           While employed by the Company and during the Restricted Period, the Executive will not, without the prior written consent of the Board, whether as an agent, owner, investor, partner, manager, joint venturer, distributor, representative, employee, consultant, broker, contractor or otherwise, and whether personally or through other persons, solicit the employment of, offer employment to, hire or attempt to hire or encourage to leave the employment of the Company (whether as an employee, consultant or otherwise) any employee, sales representatives, distributors, or consultants, or other person with whom the Executive had
contact during the Executive’s employment with the Company within the eighteen (18) month period prior to the Termination Date and/or about whom the Executive possesses Confidential Information and/or Trade Secrets as a result of the Executive’s employment with the Company.

 

(c)           The foregoing shall not prohibit the Executive from owning no more than two percent (2%) of the outstanding stock of any company, which is a reporting company under the Securities Act of 1934.

 

12.           Enforcement.

 

(a)           Since monetary damages may be inadequate and the Company may be irreparably harmed if the provisions of Paragraph 10 or 11 are not specifically enforced, the Company shall be entitled, among other remedies, to seek an injunction from a court of competent jurisdiction (without the necessity of posting a bond or other security) restraining any violation of either Paragraph 10 or 11 by the Executive and any person or entity to whom, the Executive provides or proposes to provide any services or information in violation of such Paragraphs.

 

(b)           If any provision contained in Paragraphs 10 and 11 is determined to be void, illegal or unenforceable, in whole or in part, then the other provisions contained herein shall remain in full force and effect as if the provision which was determined to be void, illegal, or unenforceable had not been contained herein.  The courts enforcing Paragraph 10 or 11 shall be entitled to modify the duration and scope of any restriction contained herein to the extent such restriction would otherwise be unenforceable, and such restriction as modified shall be enforced.

 

13.           Use of General Abilities.  Nothing contained in this Agreement shall restrict the Executive after the Termination Date from using the Executive’s general business, organizational and financial abilities, and the exertion of the Executive’s efforts, in the prosecution and development of any business, so long as the confidentiality, non-interference and other provisions of this Agreement are not thereby violated.

 

  

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14.           Indemnification.

 

(a)           If the Executive was or is made a party or is threatened to be made a party to or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative, or investigative (hereinafter a “proceeding”), by reason of the fact that the Executive is or was an employee or an officer or a director of the Company or any of its affiliates or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation or of a partnership, joint venture, trust, or other enterprise, including service with respect to an employee benefit plan, whether the basis of
such proceedings is alleged action in an official capacity as a director, officer, employee or agent or in any other capacity while serving as a director, officer, employee or agent, the Executive shall be indemnified and held harmless by the Company to the fullest extent authorized or permitted by the Delaware General Corporation Law, ERISA, the Sarbanes-Oxley Act or other applicable federal or state laws as the same exist or may hereafter be amended against all expense, liability and loss (including attorneys’ fees, judgment, fines, ERISA excise taxes or penalties and amounts paid in settlement) reasonably incurred or suffered by the Executive in connection therewith; provided, however, that, except as provided in Paragraph 14(c) below with respect to proceedings to enforce rights to indemnification, the Company shall indemnify the Executive in connection with a proceeding (or
part thereof) initiated by the Executive only if such proceeding (or part thereof) was authorized by the Chief Executive Officer or Board of Directors of the Company.

 

(b)           The right to indemnification conferred in this Paragraph 14 shall include the right to be paid by the Company the expenses (including attorney’s fees) incurred in defending any such proceedings in advance of its final disposition (hereinafter an “advancement of expenses”), provided, however, such advancement of expenses shall be made only after delivery to the Company of an undertaking (hereinafter an “undertaking”), by or on behalf of the Executive, to repay all amounts so advanced if it shall ultimately be determined by final judicial decision from which there is no further right to appeal
(hereinafter a “final adjudication”) that the Executive is not entitled to be indemnified for such expenses under this Paragraph 14 or otherwise.  The rights to indemnification and to the advancement of expenses shall continue as to the Executive after he has ceased to be a director, officer, employee, or agent and shall inure to the benefit of the Executive’s heirs, executors, and administrators.

 

(c)           If a claim under Paragraph (a) or (b) of this Paragraph 14 is not paid in full by the Company within sixty (60) days after a written claim has been received by the Company, except in the case of a claim for an advancement of expenses, in which case the applicable period shall be twenty (20) days after the later of the Company’s receipt of a written claim or the undertaking required by Paragraph 14(b), then the Executive may at any time thereafter bring suit to recover the unpaid amount of the claim.  If successful in whole or in part in any such suit, or in a suit brought by the Company to recover an
advancement of expenses pursuant to the terms of an undertaking, the Executive shall be entitled to be paid the reasonable attorneys’ fees and costs of prosecuting or defending such suit.  In (i) any suit brought by the Executive to enforce a right to indemnification hereunder (but not in a suit brought by the Executive to enforce a right to an advancement of expenses) it shall be a defense, and (ii) in any suit brought by the Company to recover an advancement of expenses pursuant to the terms of an undertaking, the Company shall be entitled to recover such expenses upon a showing, that there is a final adjudication holding that the Executive has not met any applicable standard for indemnification set forth in the Delaware General Corporation Law, or that indemnification would violate any applicable federal or state law.  Neither the failure of the Company
(including its Board of Directors, independent legal counsel, or its stockholders) to have made a determination prior to the commencement of such suit by or on behalf of the Executive that indemnification of the Executive is proper in the circumstances because the Executive has met the applicable standard of conduct set forth in the Delaware General Corporation Law, nor an actual determination by the Company (including its Board of Directors, independent legal counsel, or its stockholders) that the Executive has not met such applicable standard of conduct, shall be a defense in the case of a suit by or on behalf of Executive to enforce a right to indemnification or advancement, or the basis for the Company to recover any advancement of expenses.  In any suit brought by the Executive to enforce a right to indemnification or to an advancement of expenses hereunder, or brought by
the Company to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that the Executive is not entitled to be indemnified, or to such advancement of expenses, under this Section 14 shall be on the Company.

 

  

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(d)           The Company shall, at no cost to the Executive, include the Executive, after the Term of the Executive’s employment hereunder and for so long thereafter as the Executive may be subject to any such claim, as an insured under any directors’ and officers’ liability insurance policy, as well as under any employment practices liability insurance policy maintained by the Company, which policies shall provide coverage in amounts and under terms as least as favorable to the Executive as provided for any director or officer of the Company or any of its affiliates.

 

15.           Code Section 409A.

 

(a)           Compliance with Code Section 409A.  To the extent the payments and benefits under this Agreement are subject to Section 409A of the Internal Revenue Code of 1986, as amended (“Code Section 409A”), this Agreement shall be interpreted, construed and administered in a manner that satisfies the requirements of Code Sections 409A(a)(2), (3) and (4) and the Treasury Regulations thereunder (and any applicable transition relief under Code Section 409A).  Specifically, any reimbursement of documented expenses (including repayments of
legal fees pursuant to Paragraph 14(b) hereof) provided pursuant to the terms of this Agreement (x) shall not affect the expenses eligible for reimbursement in any other year, (y) shall occur no later than the last day of the year following the year in which the expense was incurred, and (z) the right to such reimbursements shall not subject be subject to liquidation or exchange for another benefit.  For purposes of this Agreement, payments in connection with a termination of employment shall only be made if such termination constitutes a “Separation from Service” within the meaning of Code Section 409A.

 

(b)           Amendment of Agreement to Comply with Code Section 409A.  If the Executive and the Company determine that any payments or benefits payable under this Agreement do not comply with Code Section 409A, the Executive and the Company agree to amend this Agreement, or take such other actions as the Executive and the Company deem reasonably necessary or appropriate, to comply with the requirements of Code Section 409A, the Treasury Regulations thereunder (and any applicable transition relief) while preserving the economic agreement of the
parties.  If any provision of the Agreement would cause such payments or benefits to fail to so comply, such provision shall not be effective and shall be null and void with respect to such payments or benefits, and such provision shall otherwise remain in full force and effect.

 

(c)           Delayed Distribution under Code Section 409A.  If the Executive is a Specified Executive, within the meaning of Code Section 409A, on the date of his “separation from service,” as defined in Treasury Regulation Section 1.409A-1(h), any amounts payable on account of such separation from service that constitute “deferred compensation” within the meaning of Code Section 409A shall be paid no earlier than the earlier of the Executive’s death or six months following such separation from service, but only to the extent
necessary to avoid the imposition of additional taxes under Code Section 409A.

 

  

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16.           General Provisions.

 

(a)           Notices.  All notices, requests, consents, and other communications under this Agreement shall be in writing and shall be deemed to have been delivered (i) on the date personally delivered, or (ii) one business day after properly sent by overnight courier service, addressed to the respective parties at the following addresses:

 

	  	
To the Company:

	
Corporate Resource Services, Inc.

	  	  	
160 Broadway, 15th Floor

	  	  	
New York, NY 10038

	  	  	
Attn: Jay H. Schecter

	  	  	  
	  	
With copy to:

	
Bryan Cave LLP

	  	  	
1290 Avenue of the Americas

	  	  	
New York, NY 10104

	  	  	
Attn: Tara Newell, Esq.

	  	  	  
	  	
To the Executive:

	
Scott Schecter

	  	  	
45 Maple Hill Drive

	  	  	
Larchmont, NY  10538

	  	  	  
	  	
With copy to:

	
Duane Morris LLP

	  	  	
30 South 17th Street

	  	  	
Philadelphia, PA  19103-4196

	  	  	
Attn:  Jonathan D. Wetchler, Esq.

Either party hereto may designate a different address by providing written notice of such new address to the other party as provided above.

 

(b)           Severability.  If any provision contained in this Agreement shall be determined to be void, illegal or unenforceable, in whole or in part, then the other provisions contained herein shall remain in full force and effect as if the provision which was determined to be void, illegal, or unenforceable had not been contained herein.

 

(c)           Waiver, Modification and Integration.  The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach of any party.  This Agreement contains the entire agreement of the parties concerning employment and supersedes any and all other inconsistent agreements, either oral or in writing, between the parties hereto with respect to the employment of the Executive by the Company, except for the RSU Agreement (when executed) and any official employee benefit plan
documents between the parties, the terms and conditions of which shall be controlling.  This Agreement may not be modified, altered or amended except by a written agreement signed by both of the parties hereto.

 

  

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(d)           Binding Effect.  The Company hereby represents and warrants to Executive that it has received all authorizations and has taken all actions, necessary or appropriate for the due execution, delivery and performance of this Agreement.  This Agreement shall be binding upon and shall inure to the benefit of the Company and its successors and permitted assigns, and upon the Executive, the Executive’s heirs and the Executive’s executors and administrators.  The Company may assign this Agreement and its rights and obligations
hereunder to an affiliate (subject to the Company’s continuing to be bound by such obligations) or a purchaser of substantially all of its assets, but otherwise shall not be entitled to assign the Executive’s duties hereunder without the Executive’s prior written consent, which consent shall not be unreasonably withheld.  The Executive’s duties and rights under this Agreement shall not be assigned by the Executive, and any such assignment shall be null and void.

 

(e)           Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to its conflicts of law provisions.  Trial by jury is hereby waived by both of the parties to this Agreement.

 

(f)           Survival.  The obligations of the parties hereto under Paragraphs 9, 10, 11, 12, 13 and 14 of this Agreement shall survive the termination of this Agreement.

 

17.           Legal Fees.  Executive shall be reimbursed by the Company for up to Five Thousand Dollars ($5000) for his legal fees related to the preparation of and entry into this Agreement.

 

[Signatures Appear on Following Page]

 

 

 

 

 

  

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

	 	
COMPANY

	 
	 	 	 
	 	
CORPORATE RESOURCE SERVICES, INC.

	 
	 	 	 	 
	 	
By: 

	/s/ Jay H. Schecter	 
	 	 	
Name:     Jay H. Schecter

	 
	 	 	
Title:       CEO

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

	 	
EXECUTIVE:

	 
	 	 	 	 
	 	
/s/ Scott Schecter

	 
	 	
Scott Schecter

	 
	 	 	 	 
	 	 	 	 

  

15

  

Exhibit “A”

GENERAL RELEASE AND WAIVER

 

THIS DOCUMENT WILL AFFECT YOUR LEGAL RIGHTS,

INCLUDING YOUR RIGHTS, IF ANY, WITH RESPECT TO

CORPORATE RESOURCE SERVICES, INC. AND OTHER

PERSONS AND ENTITIES INCLUDED WITHIN THE

DESCRIPTION OF “RELEASEE” IN PARAGRAPH 3 BELOW.  IF

YOU DECIDE TO SIGN THIS DOCUMENT, YOU MUST READ IT

CAREFULLY AND COMPLETELY, AND UNDERSTAND IT

FULLY, BEFORE YOU SIGN.

1.           Scott Schecter (“Employee”) hereby acknowledges that he and Corporate Resource Services, Inc. are parties to an Executive Employment Agreement dated as of February _, 2011 (the “Employment Agreement”), that his employment with the Company ceased effective _________, ____ (the ’Termination Date”) as a result of ___________________ (as defined in and pursuant to Paragraph 9 of the Employment Agreement) and that certain provisions of the Employment Agreement, as specified in Paragraph 16(f) of the Employment Agreement, will continue in effect after the Termination Date.  Employee
hereby waives any right, and agrees not, to seek reinstatement or employment with any Releasee (as defined in paragraph 3 of this Release) and, without waiver by any Releasee of the foregoing, the existence of this Release shall be a valid, non-discriminatory basis for rejecting any such application or, in the event Employee obtains such employment, to terminate such employment.

 

2.           (b)  Employee hereby agrees that in accordance with and subject to the terms and conditions of this Release, and after the delivery to the Company of a signed and notarized original of this Release, the expiration of seven (7) days from the signing of this Release and Employee’s compliance with Paragraph 9 of this Release, Employee will accept, as and on behalf of Releasor, from and/or on behalf of the Company and each Releasee, and the Company hereby agrees that it shall provide, the payments and benefits specified in Paragraph [9(f)(i)] [9(g)(i) 9(g)(iv)] of the Employment Agreement, less withholding for
income and/or other applicable taxes (the “Severance Payments”), at the times and subject to any conditions specified in the Employment Agreement.  Said payments and benefits the Company shall provide are as follows:

 

 

(b)           Employee acknowledges and agrees that (i) pursuant to Paragraph 9(h) of the Employment Agreement, signing and not revoking this Release is a condition precedent for receiving the Severance Payments; (ii) that the Severance Payments are adequate consideration for all the terms of this Release and do not include any benefit, monetary or otherwise, which was earned or accrued or to which Employee was already entitled without signing this Release; and (iii) prior to or contemporaneous with the execution of this Release, Employee received all salary, compensation and other payments that may be or have been due to Employee
pursuant to the Employment Agreement or otherwise due from the Company or any Releasee through the date of the execution of the Release.

 

  

  

  

 

3.           THIS PARAGRAPH PROVIDES A COMPLETE RELEASE AND WAIVER OF ALL EXISTING AND POTENTIAL CLAIMS YOU MAY HAVE AGAINST EVERY PERSON AND ENTITY INCLUDED WITHIN THE DESCRIPTION BELOW OF “RELEASEE.” BEFORE YOU SIGN THIS RELEASE, YOU MUST READ THIS PARAGRAPH CAREFULLY, AND MAKE SURE THAT YOU UNDERSTAND IT FULLY.

 

(a)           In consideration of Employee’s receipt and acceptance of the Severance Payments from the Company and on behalf of the Company and each Releasee (as defined below), Employee, on Employee’s behalf and on behalf of Employee’ s heirs, executors, administrators, successors and assigns (collectively, “Releasor”), hereby irrevocably, unconditionally and generally releases the Company, its current and former officers, directors, shareholders, trustees, parents, Affiliates (as defined in the Employment Agreement), subsidiaries, branches, divisions, agents, attorneys and employees, and the current and
former officers, directors, shareholders, agents, attorneys and employees of any such parent, affiliate, subsidiary, branch or division of the Company, and the heirs, executors, administrators, receivers, successors and assigns of all of the foregoing (collectively, “Releasee”), from or in connection with, and hereby waives and/or settles, except as may otherwise be stated in this Agreement, any and all actions, causes of action, suits, debts, dues, sums of money, accounts, controversies, agreements, promises, damages, judgments, executions, or any liability, claims or demands, known or unknown and of any nature whatsoever (collectively “Claims”) and which Releasor ever had, now has or hereafter can, shall or may have as of the date of this Release relating to Releasor’s employment with the Company or the termination thereof, including, without limitation,
except as provided in paragraph 3. b. herein, any rights and/or claims arising under the Employment Agreement or any other contract, express or implied, written or oral; for wrongful dismissal or termination of employment; and arising under any applicable foreign, federal, state, local or other statutes, orders, laws, ordinances, regulations or the like, or case law, that relate to employment or employment practices and/or, specifically, that prohibit discrimination based upon age, race, religion, sex, national origin, disability or any other unlawful bases, including without limitation, the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, as amended, the Civil Rights Acts of 1866 and 1871, as amended, the Age Discrimination in Employment Act of 1967, as amended, the Americans with Disabilities Act of 1990, as amended, the Family Medical Leave Act of 1993, as amended,
the Employee Retirement Income Security Act of 1990, as amended, the Vietnam Era Veterans’ Readjustment Assistance Act, as amended, and any similar applicable statutes, orders, laws, ordinances, regulations or the like, or case law, of the City of New York or the State of New York or any political subdivision or any political subdivision thereof, , including without limitation, the New York State Human Rights Law, as amended, the New York City Human Rights Law, as amended, the New York Labor Law, as amended, and the New York Civil Rights Law, as amended, and all applicable rules and regulations promulgated pursuant to or concerning any of the foregoing statutes, orders, laws, ordinances, regulations or the like.

 

(b)           Notwithstanding anything in paragraph 3. a.to the contrary, paragraph 3. a. does not apply to, and Employee does not release or waive any Claims: (i) for the payments and benefits the Company shall provide pursuant to Paragraph 2(a) herein; (ii) under any employee benefit plan or applicable law, including but not limited to COBRA and state laws regarding the conversion to individual coverage; (iii) for indemnification and advancement under applicable law and the Employment Agreement; (iv) reimbursement for expenses pursuant to Paragraph 8(g) of the Employment Agreement; (v) insurance coverage under Paragraph 8(h) or 14(d) of
the Employment Agreement; and (vi) Paragraph 15 of the Employment Agreement.

 

  

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4.           Employee represents and warrants that Employee has not filed or commenced any complaints, claims, actions or proceedings of any kind against any Releasee with any federal, state or local court or any administrative, regulatory or arbitration agency or body.

 

5.           This Release and any payments made hereunder are not intended to be, shall not be construed as and are not an admission or concession by any Releasee of any wrongdoing or illegal or actionable acts or omissions, and each Releasee expressly denies that any of them engaged in any wrongdoing or illegal or actionable acts or omissions.  Employee, as and on behalf of Releasor, hereby represents and agrees that (a) no written or oral statements, suggestions or representations that any Releasee has made or implied any such admission or concession have been or shall be made directly or indirectly by or on behalf of Employee
and (b) except as may be required by law, no oral or written negative, disparaging or adverse statements, suggestions or representations of or concerning the Company or any Releasee shall be made directly or indirectly by or on behalf of Employee.

 

6.           Employee has kept confidential and has not disclosed orally or in writing, directly or indirectly, to any person, and, in further consideration of the Company’s agreement to deliver the Severance Payments, shall keep confidential and not disclose orally or in writing, directly or indirectly, to any person, except his spouse, attorneys, accountants and financial advisors or as shall be required by law, any and all information concerning (b) any facts, claims or assertions relating to any experiences of Employee or treatment received by Employee by or on behalf of the Company or any Releasee during Employee’s
employment, which experiences or treatment could have provided a factual or legal basis for any claim of any kind in any action or proceeding before any court or administrative body; (c) the existence or terms of this Release; and (d) the amount and type of any payment or consideration provided hereunder.

 

7.           (a)  Employee hereby represents and agrees that upon execution of this Agreement (i) Employee has returned to the Company, and has not retained any copies of, all Company Property (as defined in the Employment Agreement); (ii) Employee has not disclosed any Confidential Information (as defined in the Employment Agreement) to any person or entity without the express authorization of an authorized officer of the Company; and (iii) in consideration of the Company’s agreement to deliver the Severance Payments pursuant to the terms of this Agreement, Employee and/or any Releasor shall not disclose or use any
Confidential Information or Company Property, in any manner directly or indirectly, except as shall be required by law.

 

(b)           In the event that Employee and/or any Releasor receives a subpoena or any other written or oral request for any Confidential Information, Company Property or any other information concerning the Company or any Releasee, Employee shall, within five (5) business days of the service or receipt of such subpoena or other request (i) notify the Company in writing, by fax to the Business/Legal Affairs Department, and (ii) provide a copy to the Company of such subpoena or other request if in writing, and/or disclose the nature of the request for information if oral.

 

  

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(c)           Employee understands and acknowledges that any breach of this provision will result in actual harm to the Company and Releasee, and that Employee will be subject to any and all remedies, including without limitation, injunctive relief and/or money damages.

 

(d)           Employee also represents and agrees that upon the execution of this Agreement Employee has returned to the Company all other property of the Company, including without limitation, any keys to the offices of the Company and any Company identification.

 

8.           By executing this Release, Releasor acknowledges that Employee (a) has been advised by the Company to consult with an attorney before executing this Release; (b) was provided adequate time (i.e, [twenty-one (21)] [forty five (45)] days) to review it and to consider whether to sign the Release; and (c) has been advised that Employee has seven (7) days following execution to revoke it (“Revocation Period”).  If Employee elects to revoke this Release, Employee must deliver written notice of such revocation to Corporate Resource Services, Inc., 160 Broadway, 15th Floor, New York, NY 10038, Attn: Jay H.
Schecter, within seven (7) days of signing this Release.

 

9.           Notwithstanding anything to the contrary contained herein, this Release will not be effective or enforceable, and the Severance Payments are not payable and shall not be delivered or paid by the Company, until the Revocation Period has expired and the Release has not been revoked.

 

10.           This Release, Paragraphs [9(f)], [9(g)], 9(h), 10, 11,12, 13, 14, 15 and 16 of the Employment Agreement, and the Corporate Resource Services, Inc. Restricted Stock Unit Agreement between the Company and Employee dated as of February __,2011, constitute the sole and complete understanding and agreement between the parties with respect to all matters concerning Employee’s employment by the Company, the termination of such employment, and the obligations of Employee to the Company after the termination of such employment, and there are no other agreements or understandings, whether written or oral and whether made
contemporaneously or otherwise.  No term, condition, covenant, representation or acknowledgment contained in this Release may be amended unless in a writing signed by both parties.  If any section of this Release is determined to be void, voidable or unenforceable, it shall have no effect on the remainder of the Release which shall remain in full force and effect.

 

This Release shall in all respects be subject to, governed by and enforced and construed pursuant to and in accordance with the laws of the State of New York.

 

11.           Employee agrees and acknowledges that (a) Employee has had an adequate opportunity to review this Release and all of its terms, and to be represented by counsel; (b) Employee understands all of the terms of this Release, which are fair, reasonable and are not the result of any fraud, duress, coercion, pressure or undue influence exercised by or on behalf of any Releasee; and (c) Employee has agreed to and/or entered into this Release and all of the terms hereof, knowingly, freely and voluntarily.

 

	 	 	 
	Scott Schecter	 	 

 

	STATE OF NEW YORK   	)
	 	) ss:
	COUNTY OF ________________	)

On the ____ day of ___________,2009, personally came Scott Schecter, and being duly sworn, acknowledged that he is the person described in and who executed the foregoing General Release and Waiver and acknowledged that he executed same.

 

	 	 	 
	
Notary Public

	 	 
	 

 

4

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