Document:

ex10_7.htm

Exhibit 10.7

 

SECOND AMENDED AND RESTATED

CHANGE OF CONTROL AGREEMENT

 

THIS SECOND AMENDED AND RESTATED CHANGE OF CONTROL AGREEMENT (this “Agreement”), dated as of the 29th day of March, 2010, is by and between CENTRAL JERSEY BANCORP, a New Jersey corporation (the “Company” or “Bancorp”), and ANTHONY GIORDANO, III (the “Executive”).

 

WHEREAS, the Board of Directors of the Company (the “Board”) recognizes that, as is the case with many publicly held companies, the possibility of a change of control exists and that such possibility, and the uncertainty and questions which it may raise among management, could result in the departure or distraction of management personnel to the detriment of the Company;

 

WHEREAS, the Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Company’s management, including the Executive, to their assigned duties without distraction in the face of the possibility of a change of control;

 

WHEREAS, the Company and the Executive previously entered into that certain Change of Control Agreement, dated as of August 1, 2006, as amended on February 21, 2007 and as amended and restated on December 23, 2008 (the “Prior Agreement”), whereby the Company and the Executive  memorialized the benefits to which the Executive shall be entitled in the event of a change of control; and

 

WHEREAS, the Company and the Executive desire to amend and restate the Prior Agreement in its entirety as set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants, undertakings and representations contained herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the Executive agree as follows:

1.           Term of Agreement.  This Agreement shall continue in full force and effect for so long as the Executive is employed by Bancorp and/or Central Jersey Bank, N.A., the bank subsidiary of Bancorp (the “Bank”); provided, however, that this Agreement shall continue in effect after the termination of the Executive’s employment, regardless of the reason, for such period as is necessary to effectuate the rights of the Executive and Bancorp hereunder and for the Executive and Bancorp to fulfill and observe their respective obligations set forth herein; provided, further, that if the Executive’s employment is terminated without Cause (as defined below) by Bancorp prior to a Change of Control Event (as defined below), the Executive shall be entitled to receive the full benefits under this Agreement if a Change of Control Event occurs within 12 months after the effective date of termination of the Executive’s employment.  In other words, in the event the Executive’s employment is terminated without Cause, he will be entitled to receive the Severance (as defined below) provided for in Section 3(a) hereof in connection with a Change of Control Event which occurs within 12 months after such termination.  In the event that the Executive is to receive Severance as provided for herein, the Severance shall be payable in-full by the Company within 10 business days after the effective date of the Change of

 

  

 

  

Control Event; provided, however, that, notwithstanding the foregoing, all Severance shall be paid on or before December 31 of the calendar year in which the Change of Control Event occurred.

 

2.           Relationship of the Parties.  The Executive shall serve, at the discretion of the Board, as Senior Executive Vice President, Chief Financial Officer, Treasurer and Assistant Secretary of Bancorp and the Bank.  This Agreement shall not constitute an employment agreement between the Company and the Executive and shall not guarantee the Executive’s continued employment with Bancorp or the Bank.

 

3.           Termination as a Result of a Change of Control Event.

 

(a)           In the event that either (i) the Executive is terminated without Cause in connection with (A) a merger of Bancorp where Bancorp is not the surviving entity, (B) the acquisition of greater than 50% of Bancorp’s voting stock by an entity or group of individuals other than the shareholders of Bancorp as of the Effective Date (or any individual or entity which receives from a current shareholder of Bancorp an interest in Bancorp through will or the laws of descent and distribution), (C) the sale or disposition of all or substantially all of Bancorp’s assets, or (D) the determination (which may be made effective as of a particular date specified by the Board) by the Board that a change of control has occurred or is about to occur (each a “Change of Control Event”), or (ii) a Change of Control Event occurs and the Executive is not retained by the successor entity or group (the “Successor Entity”) for a period of at least 36 months commencing on the effective date of the Change of Control Event pursuant to a written agreement (the “New Agreement”) which provides that the Executive shall have (A) the same or substantially equal position with similar title and responsibilities and the same or greater salary, benefits (including, without limitation, health insurance for the Executive and his family, life insurance for the Executive, matching 401(k) contributions and automobile allowance, as applicable) and bonuses that the Executive was entitled to receive from the Company immediately prior to the Change of Control Event, and (B) a commuting distance that is not greater than 30 miles from the Executive’s current residence, the Executive shall be entitled to Severance from the Company; provided, however, that the Executive shall only be entitled to such Severance if he agrees to remain as an employee of the Company and assist in the transition until the effective date of the Change of Control Event; provided, further, in no event shall a Change of Control Event be deemed to have occurred, with respect to the Executive, if the Executive is part of a purchasing group which consummates the transaction relating to the Change of Control Event.  The Executive shall be deemed “part of the purchasing group” for purposes of the preceding sentence if the Executive is an equity participant or has agreed to become an equity participant in the purchasing company or group (except for (i) passive ownership of less than 5% of the voting securities of the purchasing company; or (ii) ownership of equity participation in the purchasing company or group which is otherwise deemed not to be significant, as determined prior to the Change of Control Event by a majority of the non-employee members of the Board).  In the event that the Executive is to receive Severance as provided for herein, the Severance shall be payable in-full by the Company within 10 business days after the effective date of the Change of Control Event; provided, however, that, notwithstanding the foregoing, all Severance shall be paid on or before December 31 of the calendar year in which the Change of Control Event occurred.

 

  

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In addition to the forgoing, in the event the Executive’s employment is terminated without Cause in connection with any acquisition by Bancorp of any bank, bank holding company or other similar institution (the “Acquisition”), and the Acquisition does not constitute a Change of Control Event, the Executive shall nevertheless be entitled to receive Severance from the Company, which shall be payable in-full by the Company within 10 business days after the effective date of the termination of the Executive’s employment without Cause; provided, however, that, notwithstanding the foregoing, all Severance shall be paid on or before December 31 of the calendar year in which the termination of employment occurred.

 

For purposes of this Agreement, “Severance” shall mean (i) an amount equal to the product of the Executive’s monthly salary in effect at the time of the Change of Control Event or the Acquisition multiplied by 30, plus (ii) an amount equal to the product of (A) the quotient of the largest annual cash bonus payment made to the Executive for services provided in any of the three years ended on December 31 of the year preceding the year in which the Change of Control Event or the Acquisition occurs, divided by 12, multiplied by (B) 30, plus (iii) an amount equal to the product of the cash equivalent of the monthly benefits provided to the Executive at the time of the Change of Control Event or the Acquisition, as determined by the Board in good faith and its sole discretion, multiplied by 30.  In addition, for purposes of this Agreement, “Cause” shall mean as follows:  (i) the Executive willfully, or as a result of gross negligence on his part, fails substantially to (A) carry out the lawful policies of the Board or (B) discharge his duties and responsibilities as an executive of Bancorp and the Bank for any reason other than the Executive’s disability, (ii) the Executive is convicted of or enters a plea of no contest with respect to a felony, (iii) the Executive engages in conduct which is demonstrably and substantially injurious to the Company (as determined in good faith by the Board), (iv) the Executive materially breaches this Agreement, or commits any deliberate and intentional violation of the provisions of Sections 4 and/or 5 of this Agreement, or (v) the Executive commits willful or intentional misconduct that has a material adverse effect on Bancorp or the Bank.

 

(b)           In addition to the provisions set forth in Section 3(a) of this Agreement, the New Agreement also will provide that if the Executive accepts employment with the Successor Entity as of the effective date of the Change of Control Event and the Executive (i) is terminated by the Successor Entity without Cause during the 36 month period commencing on the effective date of the Change of Control Event, (ii) dies or becomes disabled (and such disability results in the termination of the Executive’s employment), or (iii) voluntarily terminates his employment with the Successor Entity for any other reason or no reason on the 6 month anniversary of the effective date of the Change of Control Event (the “Six Month Anniversary Date”), the Executive shall be entitled to Severance from the Successor Entity.  If the Executive’s employment is terminated as provided in Section 3(b)(i) or 3(b)(ii), he shall receive Severance for the number of months equal to the remainder of 30 months less the number of whole months the Executive was employed by the Successor Entity following the 6 Month Anniversary Date; provided, however, that if the Executive’s employment is terminated by the Successor Entity as provided in Section 3(b)(i) prior to the 6 Month Anniversary Date or he dies or becomes disabled (and such disability results in the termination of the Executive’s employment) as provided in Section 3(b)(ii) prior to the 6 Month Anniversary Date, the Executive shall receive 30 months Severance; provided, further, that in the event the Executive is entitled to receive Severance as provided in Section 3(b)(i) or 3(b)(ii), the Executive shall not

 

  

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receive less than 6 months Severance.  In the event the Executive elects to terminate his employment with the Successor Entity on the Six Month Anniversary Date as provided in Section 3(b)(iii), he shall receive 30 months Severance.  To calculate the Severance payable in accordance with this Section 3(b), the number 30 set forth in the definition of Severance in Section 3(a) of this Agreement shall be replaced with the number of months of Severance the Executive is entitled to receive as provided in this Section 3(b).  Such Severance shall be payable in-full within 10 business days after the termination of the Executive’s employment with the Successor Entity; provided, however, that, notwithstanding the foregoing, all Severance shall be paid on or before December 31 of the calendar year in which the termination of employment occurred.  In addition, the New Agreement will contain the provisions set forth in Sections 4 through 17 of this Agreement; provided, however, that the provisions of Section 4(a) shall not be applicable to the Executive if his employment with the Successor Entity terminates after the end of the 36 month period which commences on the effective date of the Change of Control Event and, as a result, he is not entitled to any Severance in connection with such termination.  For purposes of clarity, the Executive shall not be entitled to any Severance should his employment with the Successor Entity terminate for any reason after the expiration of the 36 month period commencing on the effective date of the Change of Control Event.

 

4.           Covenant Not to Compete/Solicit.  In consideration for the right to receive the Severance provided for herein, the Executive agrees as follows:

 

(a)           During his employment with the Company and for a period of 6 months from the effective date of any termination of the Executive’s employment by the Company for (A) Cause, or (B) without Cause, or (ii) by the Executive, the Executive shall not, directly or indirectly, commence employment with or render services to any other bank or banking institution within the State of New Jersey; provided, however, that if the Executive’s employment is terminated by the Company without Cause, or the Executive voluntarily terminates his employment with the Company, and he is not entitled to any Severance with respect to any such termination, the provisions of this Section 4(a) shall not apply to the Executive.

 

(b)           During his employment with the Company and for a period of 12 months from the effective date of any termination of the Executive’s employment with the Company for any reason whatsoever, the Executive shall not recruit any employee of the Company or solicit or induce, attempt to solicit or induce, or assist in the solicitation or inducement of any employee of the Company to terminate his or her employment, or otherwise cease his or her relationship, with the Company, or solicit, divert or take away, or attempt to solicit, divert or take away, the business or patronage of any of the clients, customers or accounts of the Company that were served by the Company while the Executive was employed by the Company.

 

(c)           The Executive acknowledges that the restrictions set forth in this Section 4 are reasonable and necessary for the protection of the business and good will of the Company.

 

5.           Confidential Information and Materials.  The Executive acknowledges that by reason of the Executive’s employment with the Company, the Executive has and will hereafter, from time to time during his employment with the Company, become exposed to and/or become knowledgeable about proposals, plans, inventions, practices, systems, programs, subscriptions,

 

  

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strategies, formulas, processes, methods, techniques, research, records, suppliers, sources, customer lists, billing information, any other form of business information and any trade secrets of every kind and character, whether or not they constitute a trade secret under applicable law, which are not known to the Company’s competitors and which are kept secret and confidential by the Company (the “Confidential Information”).  The Executive therefore agrees that at no time during or after his employment will he disclose or use the Confidential Information or materials to or with any person, firm, business, corporation, association, or other entity for any reason or purpose except as may be required in the prudent course of business for the sole benefit of the Company, or as may be required by a court order or by law.

 

6.           Company Property.  All correspondence, memoranda, notes, records, reports, plans, price lists, customer lists, financial statements, catalogs, computer programs, disks, tapes, other papers and other medium on or by which Confidential Information is  stored, received or made by the Executive in connection with his employment by the Company shall be the property of the Company and shall be delivered to the Company upon the termination of his employment or at any other time upon request of the Company.

 

7.           Equitable Remedies.  The Company and the Executive acknowledge and confirm that the restrictions contained in Sections 4, 5 and 6 hereof are, in view of the nature of the business of the Company, reasonable and necessary to protect the legitimate interests of the Company and that any violation of any provisions of Sections 4, 5 and 6 will result in irreparable injury to the Company.  Therefore, the Executive hereby agrees that in the event of any breach or threatened breach of the terms or conditions of this Agreement by the Executive, the Company’s remedies at law will be inadequate and, in any such event, the Company shall be entitled to commence an action for preliminary and permanent injunctive relief and other equitable and monetary relief in any court of competent jurisdiction.

 

8.           Excise Tax.  In the event that the payments and other benefits provided for in this Agreement constitute “parachute payments” within the meaning of Section 280G of the Code and will be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Executive’s severance benefits payable under the terms of this Agreement will be either (a) delivered in full, or (b) delivered as to such lesser extent which would result in no portion of such severance benefits being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by the Executive, on an after-tax basis, of the greatest amount of severance benefits, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code.  Unless the Company and the Executive otherwise agree in writing, any determination required under this Section 8 will be made in writing by the Company’s independent public accountants (the “Accountants”), whose determination will be conclusive and binding upon the Executive and the Company for all purposes.  For purposes of making the calculations required by this Section 8, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Section 280G and 4999 of the Code.  The Company and the Executive will furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 8.  The Company will bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 8.

 

  

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9.           Costs.  If litigation is brought to enforce or interpret any provision contained herein, the court shall award reasonable attorneys’ fees and disbursements to the prevailing party as determined by the court.

 

10.           Severability.  If any provision of this Agreement or application thereof to any person or circumstance is adjudicated to be invalid or unenforceable in a jurisdiction, such invalidity or unenforceability shall not affect any other provision or application of this Agreement, which can be given effect without the invalid or unenforceable provision or application and shall not invalidate or render unenforceable such provision or application in any other jurisdiction.

 

11.           Entire Agreement, Amendments.  This Agreement contains the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, oral or written, with respect to the subject matter hereof.  This Agreement may not be changed, amended or modified orally, but may change only by an agreement in writing signed by the party against whom any waiver, change, amendment, modification or discharge may be sought.

 

12.           Binding Agreement.  This Agreement shall be binding upon and inure to the benefit of all executors, administrators, heirs, successors and assigns of the parties; provided, however, that this Agreement shall not be assignable by the Executive and shall terminate upon the death of the Executive.

 

13.           Governing Law, Consent to Jurisdiction.  This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey without application of its conflict of laws rules.  The Executive hereby submits to the exclusive jurisdiction and venue of the courts of the State of New Jersey or the United States District Court for the District of New Jersey for purposes of any legal action.

 

14.           Counterparts.  This Agreement may be executed in one or more counterparts, all of which taken together shall constitute one and the same agreement.

 

15.           Notices.  All notices required or permitted hereunder shall be in writing and shall be sent by overnight courier or certified or registered mail, return receipt requested, postage prepaid, as follows:

 

	
  

	
If to the Company:

	
Central Jersey Bancorp

1903 Highway 35

Oakhurst, New Jersey  07755

Attn.:  James S. Vaccaro

Chairman, President and Chief Executive

Officer

 

	
  

	
If to the Executive:

	
Anthony Giordano, III

4 Kelly Lane

Long Branch, NJ  07740

  

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Notices may be sent to such other address as either party may designate in a written notice served upon the other party in the manner provided herein.  All notices required or permitted hereunder shall be deemed duly given and received on the next business day, if delivery is by overnight courier, or the second day next succeeding the date of mailing, if delivery is by mail.

 

16.           Headings.  The section headings herein are for convenience only and shall not affect the interpretation or construction of this Agreement.

 

17.           Waiver.  The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that party’s right to subsequently enforce and compel strict compliance with every provision of this Agreement.

 

18.           Further Assurances.  Each party shall cooperate with and take such action as may be reasonably requested by the other party in order to carry out the provisions and purposes of this Agreement.

 

[Signature Page Follows.]

  

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IN WITNESS WHEREOF, the parties hereto have duly executed this Second Amended and Restated Change of Control Agreement as of the date first written above.

 

	  	  	
CENTRAL JERSEY BANCORP

	  	  	  	  
	  	  	  	  
	  	
By:   

	
/s/ James S. Vaccaro

	  
	  	
Name:   

	
James S. Vaccaro

	  	
Title:   

	
President and Chief Executive Officer

	 	 	 
	 	 	 
	  	  	
EXECUTIVE

	  	  	  	  
	  	  	
/s/ Anthony Giordano, III

	  
	  	  	
Anthony Giordano, III

 

 

8p02534_x102.htm

    Exhibit
10.2

    

    EMPLOYMENT
AGREEMENT

    

    THIS AGREEMENT, made and entered into
this _____ day of __________, ____, by and between PATRICK INDUSTRIES, INC., an
Indiana corporation, hereinafter referred to for convenience as “PATRICK”, and
___________________, hereinafter referred to for convenience as
“EMPLOYEE,”

    RECITALS:

    A.  Patrick
desires to continue the employment of Employee, and Employee desires to continue
his employment with Patrick under the terms and conditions set forth in this
Agreement.

    B.  Patrick
is a manufacturer of building products and materials for sale to the
Manufactured Housing and Recreational Vehicle Industries in the United States,
and a supplier of products to other markets, including furniture, marine,
architectural, and automotive, and an independent wholesale distributor of
pre-finished wall and ceiling panels, particleboard, hardboard siding, roofing
products, high pressure laminates, passage doors, building hardware, insulation,
and other related products (“Patrick’s Business”).

    C.  Employee
has been or will be employed in the position of
____________________________.  This Agreement shall be deemed amended
to reflect any actual change in the position, duties, or responsibilities of
Employee.

    D.  Employee
has or will become acquainted with the affairs of Patrick, its officers and
employees, its services, products, business practices, business relationships,
and the needs and requirements of its customers or prospective customers, trade
secrets, Intellectual Property, Works, Confidential Information, and other
property that is proprietary to Patrick.  This Agreement is entered
into to protect each of these interests of Patrick and Patrick’s goodwill, and
to prevent unfair competition in the event of the use or disclosure of
Confidential Information or trade secrets by Employee.

    NOW, THEREFORE, in consideration of
Employee’s continued employment by Patrick, acknowledged by the parties as
valuable consideration and for other valuable consideration, the parties hereby
agree as follows:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.           Employment and
Compensation.  Employee is hereby employed by Patrick, and he
shall assist in Patrick’s business by performing the duties, having the
responsibilities, and by performing such other services for Patrick as may from
time to time be assigned by Patrick to him.  All services performed by
Employee for Patrick shall be performed in accordance with Patrick’s
instructions relating thereto.  Employee’s job performance shall be
subject to regular review and evaluation by Patrick.  Employee’s
employment with Patrick shall be on a full-time basis and, while employed by it,
he shall not engage, directly or indirectly, in any activity, employment or
business venture, whether or not for remuneration, that might reasonably be
expected to be detrimental to Patrick, conflict with his commitment and loyalty
to Patrick, result in a conflict of interest, or adversely affect the proper
performance of his duties.  Patrick shall pay Employee an annualized
salary of
______________________________________($XXXXXXXXX).  Employee shall be
eligible for such benefits as are made available to all other full-time salaried
employees of Patrick, as such benefits are amended from time to time by Patrick,
including, but not limited to, medical and health insurance
programs.  Employee’s salary shall be subject to review periodically
by Patrick in accordance with its customary salary review process.

    2.           Term.  This
agreement and Employee’s employment hereunder shall continue on an at-will basis
until terminated by one of the parties hereto.

    In the event Patrick terminates
Employee’s employment without cause during this agreement, Patrick shall make a
separation payment to Employee equivalent to___ months of his
salary (payable in equal installments over the ___ month period after the
termination of his employment).

    The parties understand and agree that
Employee’s resignation from employment, for any reason, with or without cause,
shall not result in any obligation by Patrick to make any separation payment to
him.  Furthermore, as a condition precedent to the payment of
separation pay to Employee after this Agreement is terminated without cause by
Patrick during the Agreement, Employee and Patrick shall sign a Mutual Release
of Claims in a form satisfactory to Patrick and Employee.  All
obligations of Employee contained in paragraphs 3 through 7, inclusive hereof,
shall survive the termination of this Agreement

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    and his
employment hereunder.  Additionally, any amounts owed by Employee to
Patrick shall be deducted from the separation pay that is paid to
him.  Except to the extent otherwise provided by applicable state or
federal law, benefits shall cease upon termination of employment for any
reason.

    For purposes of this Agreement,
termination for “cause” means Employee’s: (a) commission of an act of
dishonesty, fraud, theft, or embezzlement; (b) sabotage or intentional failure
to act on the direction of an Officer or the Board of Directors of Patrick or
any affiliate; (c) engagement, directly or indirectly, in a business or
occupation (as a proprietor, partner, officer, shareholder, or employee, or
otherwise) in competition with Patrick or any of its affiliates, or his
commission of a breach of paragraphs 3 through 7 of this Agreement; (d) other
material breach of this Agreement; (e) indictment or conviction for a felony
violation of a criminal law, other than motor vehicle offenses; (f) the use or
possession of illegal drugs; or (g) failure to achieve and/or perform, to
Patrick’s satisfaction, Employee’s duties and responsibilities (other than due
to disability); provided, however, that no
termination may take place under this subparagraph (g) unless and until Employee
has been given at least forty-five (45) days’ prior written notice of the
deficiency which shall provide him with an opportunity to correct it, and at the
end of such period Patrick may, if it desires, terminate his employment if it
determines that he has not performed or corrected any deficiency in a manner
satisfactory to Patrick.

    Employee agrees to give Patrick at
least thirty (30) days’ prior written notice of his resignation of
employment.  If Employee provides such notice of resignation, Patrick
may, after receiving such notice, move the effective date of Employee’s
resignation to an earlier date by providing notice of same to Employee, and such
action by Patrick shall not be deemed a termination without cause under this
Agreement.  Rather, the Employee’s effective date of resignation shall
be the date so designated by Patrick.

    3.  Confidential Information and
Records

    A.  Confidential Information
Defined.  Employee has or may have access to or knowledge of
trade secrets and other information about Patrick which is confidential or
proprietary to Patrick, including but not limited to (1) information about
Patrick, Patrick’s Business, its employees and its products and services; (2)
techniques, technical

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    know-how,
methods, and formulations; (3) hardware, software and computer programs, and
technology used by Patrick; (4) the customer/client database and other
information about Patrick’s customers/clients, such as contacts, criteria,
requirements, specifications, policies, or other similar information; (5)
relationships with other service providers, partners, and contractors; (6)
vendor and supplier information; (7) marketing plans and concept; (8) fee, rate,
and price information; (9) sales, costs, profits, profit margins, salaries, and
other financial information pertaining to Patrick or Patrick’s Business; and
(10) information pertaining to Patrick’s customers, including but not limited
to, personal information such as names, addresses, e-mail addresses, financial
information, and any information concerning personal matters or preferences of
same.  (All collectively referred to as “Confidential
Information”).

    B.  Use and Disclosure of
Confidential Information.  Employee acknowledges that the
disclosure of any Confidential Information to an unauthorized third party would
be extremely detrimental and prejudicial to Patrick.  Therefore,
Employee shall keep confidential and shall not use or disclose any Confidential
Information to anyone except Patrick or Patrick’s authorized
representatives.  Employee shall use such Confidential Information
only in the course of Employee’s duties as an employee of Patrick and for no
other purpose.  Employee shall follow all company policies and
procedures to protect all Confidential Information and shall take any additional
precautions necessary under the circumstances to preserve and protect the use or
disclosure of any Confidential Information at all times.

    C.  Duty Not to Use or Disclose
After Termination.  These confidentiality obligations shall
continue as long as the Confidential Information and/or records remain
confidential and shall survive both the termination of this Agreement and the
termination of Employee’s employment with Patrick.

    D.  Public
Information.  From time to time, Patrick may, for its own
benefit, choose to place certain Confidential Information or records of Patrick
in the public domain.  The fact that such Confidential Information may
be made available to the public in a limited form and under limited
circumstances does not change the confidential

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    and
proprietary nature of such information,  and does not release Employee
from his duties with respect to such Confidential Information as set forth in
this Agreement.

    4.  Ownership of Documents and
Return of Material Upon Termination

    A.  Ownership of Records and
Copies.  Any and all documents, records and copies of records,
including but not limited to hard copies or copies stored on a computer or disk,
e-mail, databases, etc. pertaining to Intellectual Property, Works, or
Confidential Information (collectively “Patrick Documents”) that are made or
received by Employee in the course of his employment shall be deemed to property
of Patrick.  Employee shall use Patrick Documents and information
contained in them only in the course of Employee’s employment for Patrick and
for no other purpose.  Employee shall not use or disclose any Patrick
Documents or copies of Patrick Documents to anyone except to authorized
representatives of Patrick.

    B.  Return Upon
Termination.  Upon termination of employment for any reason,
Employee shall immediately deliver to Patrick all of Patrick’s Documents and all
other property of Patrick in Employee’s possession or under Employee’s custody
or control.

    5.  Restrictive
Covenants

    A.  Non-Competition.  During
the Restricted Period, Employee agrees that he shall not, directly or
indirectly, render services to, become employed by, associated with, participate
or engage in, or otherwise become connected with (other than solely as a less
than five percent (5%) investor through purchases of securities in a publicly
traded company) any person, partnership, corporation, or other entity engaged in
a business competitive to that of the Company and its subsidiaries in any state
where the Company has customers during the term of Employee’s employment with
the Company and will not solicit any customer of the Company on behalf of any
business competitive to the Company.

    For the purpose of this agreement, a
business shall be deemed to be competitive to that of the Company and its
subsidiaries if such business is primarily engaged in the manufacture,
distribution, and sale of materials for use in the manufactured housing,
recreational vehicle, furniture, or aluminum extrusions
industries.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Further, in consideration of this
agreement and as a condition to the Company’s obligations hereunder, Employee
agrees that he will not, without prior written authorization of the Board of
Directors of Company, at any time use or disclose to any person or entity not
legally entitled thereto any confidential information relating to the business
of the Company and its subsidiaries obtained by him while in the Company’s
employ and, further, after the Employee leaves the employ of the Company, he
shall not take with him, without the President’s prior written consent, any
documents or reproductions thereof, data, calculation or copies thereof, or any
nonpublic information of any kind pertaining to the Company and its
subsidiaries.

    It is agreed by the parties that the
time, territory, product and business activities limitations, and definitions
contained herein are reasonable in all respects.  In the event
Employee shall violate his agreement of noncompetition or nondisclosure, or
both, Company shall be relieved from the payment of any further benefits which
would otherwise be payable to the Employee under the terms hereof.

    It is the desire and intent of the
parties that the foregoing provisions of this Section 5 shall be enforced to the
fullest extent permissible under the laws and public policies applied in each
jurisdiction in which enforcement is sought.  Accordingly, if any
particular provision of this Section 5 shall be adjudicated to be invalid or
unenforceable, the parties agree that such provision shall be amended to limit
enforcement to the extent required by law and/or public policy and the provision
shall be enforced as amended, such amendment to apply only with respect to the
operation of such provision of this Section 5 in the particular jurisdiction in
which such adjudication is made.

    B.  Non-Solicitation.  During
the Restricted Period, Employee SHALL NOT contact or
solicit either for Employee or for others, any of Patrick’s Customers or Clients
or any prospective Customers or Clients with whom Employee has had contact or
solicited at any time in the twenty-four (24) month period of time preceding the
termination of Employee’s employment, to (1) divert or influence or attempt to
divert or influence any business of Patrick to a Competitor of Patrick; (2)
market, distribute, sell,

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    or
provide products or services in competition with Patrick; or (3) otherwise
interfere in any fashion with Patrick’s business or operations then being
conducted by Patrick.

    C.  No
Hire.  During the Restricted Period, Employee shall not hire,
employ, or attempt to hire or employ any person who is an employee of Patrick,
or who was within the preceding twelve (12) month period an employee of Patrick,
or in any way (1) cause or assist or attempt to cause or assist any employee to
leave Patrick; or (2) directly or indirectly seek to solicit, induce, bring
about, influence, promote, facilitate, or encourage any current employee of
Patrick to leave Patrick to join a Competitor, Vendor, Supplier, Customer or
Client, or otherwise.

    D.  Non-Disparagement.  Employee
shall not make any negative or disparaging remarks about Patrick to any
Competitor, Vendor, Supplier, Customer, Customer’s employees, prospective
Customer or other employee of Patrick, or to the media or to any other
person.

    E.  Definitions.

    1.  Restricted
Period.  “Restricted Period” shall mean the period of time
during Employee’s employment with Patrick and for a period of one (1) year from
the date of termination of Employee’s employment with Patrick for any
reason.  In the event of a breach of this Agreement by Employee, the
Restricted Period shall be extended automatically by the period of the
breach.

    2.  Competitor.  A
“Competitor” shall mean any person or entity that competes with Patrick in
Patrick’s Business.

    3.  Customer or Client
Defined.  A “Customer” or “Client” of Patrick is any person or
entity which, within the preceding twelve (12) month period, used or purchased
or contracted to use or purchase any services or products from
Patrick.

    F.  Permissible Ownership
Interest by Employee.  The prohibitions in this Section shall
apply to any employment with, involvement or engagement in, or control of,
another business or entity, whether as an employee, owner, manager, director,
officer, agent, sole proprietor, joint venturer, partner, member, shareholder,
independent

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    contractor,
or other capacity, however, these prohibitions shall not prevent the ownership
of stock which is publicly traded, provided that (1) the investment is passive;
(2) Employee has no other involvement with the corporation; (3) Employee’s
interest is less than five (5%) percent of the shares of the company; and (4)
Employee makes full written disclosure to Patrick of the stock at the time that
the Employee acquires the shares of stock.

    6.  Remedies.  Upon
any breach of this Agreement by Employee, Patrick shall be entitled to each of
the following remedies which shall be deemed cumulative:

    A.  Injunctive
Relief.  The parties agree that any violation by Employee of
paragraphs 3 through 5 of this Agreement will cause Patrick to suffer
irreparable harm for which Patrick will not have an adequate remedy at
law.  Therefore, if Employee threatens to violate or violates any such
provision of this Agreement, Patrick shall be entitled to injunctive relief,
including, but not limited to, a temporary restraining order and/or a
preliminary or permanent injunction to restrain or enjoin any violation or
threatened violation of this Agreement.  Patrick shall be entitled to
immediate injunctive relief without notice and without the posting of any
bond.  Patrick’s right to injunctive relief shall be in addition to,
and not in lieu of, any other remedy that may be sought by Patrick.

    B.  Damages.  To
the extent calculable, Patrick shall be entitled to recover from Employee,
monetary damages, including lost profits.  For purposes of determining
such damages, the parties agree that any gross profits earned by Employee as a
direct or indirect result of any activity of Employee in violation of this
Agreement shall be deemed “lost profits” of Patrick.

    C.  Costs, Expenses, and
Attorney’s Fees.  The substantially prevailing party shall be
entitled to recover from the other party all costs, expenses and reasonable
attorneys’ fees incurred in seeking either enforcement of this Agreement or
damages for its breach or in defending any action to challenge or construe the
terms of this Agreement.

    D.  Prejudgment
Interest.  Patrick shall be entitled to recover prejudgment
interest on all amounts recovered in the amount of ten (10%) percent per
annum.

    E.  Other Legal or Equitable
Remedies.  Patrick shall be entitled to pursue any other legal
or equitable remedies that may be available to Patrick.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    F.  Claims by
Employee.  Any claim or cause of action by Employee against
Patrick shall not constitute a defense to the enforcement of the restrictions
and covenants set forth in this Agreement and shall not be used to prohibit
injunctive relief.

    7.  Statutory and Common Law
Duties.  The duties Employee owes to Patrick under this
Agreement shall be deemed to include federal, statutory, and the common law
obligations of the Employee, and does not in any way supersede or limit any of
the obligations or duties Employee otherwise owes to Patrick.  This
Agreement is intended, among other things, to supplement the provisions of the
Indiana Trade Secrets Act, as enacted and amended from time to
time.

    8.  Jurisdiction and Venue;
Governing Law.  Any action to enforce, challenge, or construe
the terms or making of this Agreement or to recover for its breach shall be
litigated exclusively in a state court located in Elkhart County, Indiana, or in
a federal court located in the Northern District of Indiana, except that Patrick
may elect, at its sole discretion, to litigate the action in the county or state
where any breach by Employee occurred or where the Employee can be
found.  Employee hereby waives any defense of lack of personal
jurisdiction, improper venue, or forum non convenieno.  This Agreement
and the performance by the parties under this Agreement shall be governed by the
laws of the State of Indiana, notwithstanding the choice of law provisions of
the venue where the action is brought, where the violation occurred, or where
the Employee may be located.

    9.  Severability.  The
restrictions contained in this Agreement are reasonable and necessary to
safeguard the protectable interests of Patrick.  Should any part of
this Agreement be unenforceable or invalid for any reason, the remainder of this
Agreement shall be deemed valid and enforceable and shall be enforced to the
greatest extent possible under the then existing law.

    10.  Entire Agreement,
Modifications, Interpretation.  This Agreement, with the
Officer’s Retirement Agreement, constitutes the entire agreement by and between
Patrick and Employee and shall supersede all prior and contemporaneous
agreements, representations, and understandings, whether written or oral, except
obligations imposed by law which shall be deemed a part of this
Agreement.  Any amendment of, change to, or modification of this
Agreement shall be effective only if such amendment, change, or

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    modification
is in writing and signed by an authorized representative of
Patrick.  This Agreement shall be construed as a whole, according to
its fair meaning, and not construed for or against either party.  This
Agreement may be executed in counterparts, each of which shall be deemed an
original but all of which shall constitute but one and the same
Agreement.

    11.  Successors.  This
Agreement shall inure to the benefit of and may be enforced by Patrick and it
respective legal representatives, successors, and assigns, and shall be binding
on Employee and his personal representatives.  As this Agreement is
personal in nature as to Employee, it may not be assigned by him.

    12.  Nonwaiver.  Failure
of either party to insist in any one or more instances upon performance of any
provision hereof or to pursue any right hereunder shall not be construed as a
waiver of such provision or the relinquishment of such right.

    13.  Employee
Warranties.  Employee represents and warrants that his
employment with Patrick and the performance of this Agreement will not violate
any express or implied obligation to any former employer or other
party.  Employee further represents that he has not brought with him
and will not use or disclose during his employment with Patrick any information,
documents, or materials subject to any legally enforceable restrictions or
obligations as to confidentiality or secrecy.  Furthermore, Employee
shall not make any agreements with, or commitments to, any person, firm, or
corporation that would prevent, restrict, or hinder the performance of his
duties or obligations under this Agreement.  In addition, Employee
agrees that he shall share a copy of this Agreement with any subsequent employer
in order to ensure that there is no violation hereof, and he consents to Patrick
sharing a copy of this Agreement with any such employer.

    THE PARTIES HERETO ACKNOWLEDGE THAT
THEY HAVE READ THIS AGREEMENT, UNDERSTAND IT, AND AGREED TO BE BOUND BY ITS
TERMS.  They further acknowledge that they have exercised due
diligence in reviewing this Agreement, and that each has had adequate
opportunity to consult with legal counsel or other advisors to the extent that
each deemed such consultation necessary.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the Company has
caused this Agreement to be signed on its behalf and its corporate seal to be
affixed and attested by its officers thereunto duly authorized, and Employee has
herein set his hand and seal the day and year first above written.

    

    PATRICK INDUSTRIES, INC.

    

    

    By:  _____________________________________

    

    Printed:  __________________________________

    

    Title:  ____________________________________

    

    

    EMPLOYEE

    By:  ______________________________________

    

    Printed:  __________________________________

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