Document:

ex10b.htm

    
      

    

    EMPLOYMENT
      AGREEMENT

     

    Employment
      Agreement (the "Employment Agreement") executed this 20th day of February,
      2008
      and effective as of August 1, 2007 (the “Effective Date”)  is by and
      between TAMMY CASE, an
      individual residing at 9 Carriage Lane, Sparta, New Jersey 07871 (the
      "Employee") and  SUSSEX BANK, a state chartered
      bank with its principal place of business located at 399 State Highway 23,
      Franklin, New Jersey 07416 (the “Employer”).

    

    WHEREAS,
      the Board of
      Directors of the Employer (or an appropriate committee thereof)  has
      determined that it is in the best interests of the Employer to enter into this
      Agreement with Employee, and has authorized the Employer to enter into this
      Agreement;

    

    WHEREAS,
Employer
      acknowledges
      that Employee has fulfilled the terms and conditions of her previous employment
      agreement;

    

    WHEREAS,
      the Employee agrees
      to be employed pursuant to the terms and conditions of this
      Agreement;

    

    NOW,
      THEREFORE, in
      consideration of the premises and covenants contained herein, and with the
      intent to be legally bound hereby, the parties hereto hereby agree as
      follows:

    

    1.           Employment.  The
      Employer agrees to employ the Employee, and the Employee hereby accepts such
      employment, upon the terms and conditions set forth herein.

    

    2.           Position
      and
      Duties.  The Employee shall be employed as Executive Vice
      President, Loan Administration of the Employer (the “Position”) to perform such
      services commensurate with  that capacity as are usual and customary
      for comparable institutions and as shall from time-to-time be established by
      the
      Chief Executive Officer, President and the Board of Directors of the
      Employer.  Employee agrees that she will devote her full business time
      and efforts to her duties hereunder.

    

    3.           Compensation.  Employer
      shall pay to the Employee compensation for her services as follows:

    

    (a)           Base
      Salary.  The Employee shall be entitled to receive, commencing
      upon the date of this Agreement, an annual base salary (the "Base Salary")
      of
      $120,000, which shall be payable in installments in accordance with Employer's
      usual payroll method.  Starting February 2009 and annually thereafter
      at the time the Employer conducts reviews of its senior executive officers
      generally, the Chief Executive Officer, President and Board of Directors
      shall

    
      
         
          

      

      
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    review
      the Employee's performance, the status of Employer and such other factors as
      the
      Board of Directors or a committee thereof shall deem appropriate and shall
      adjust the Base Salary accordingly.  Employee acknowledges that her
      Base Salary hereunder may be adjusted upward or downward; provided, however,
      that in no event will her Base Salary be adjusted downward below the minimum
      base salary established by the Employer as part of its regular annual employee
      review process for employees having the same grade as Employee, if
      any.

    

    (b)           Discretionary
      Bonus.  Employee shall be entitled to receive annually a bonus
      in cash, stock options, restricted stock or deferred compensation as determined
      by the Board of Directors or a Committee thereof.

    

    4.           Other
      Benefits; Fringe
      Benefits.  Employee shall be entitled to receive hospital,
      health, medical, prescription, long-term disability and life insurance of a
      type
      currently provided to and enjoyed by other senior officers of Employer, and
      shall be entitled to participate in any other employee benefit or retirement
      plans, including but not limited to the Employer’s 401(k) plan,  the
      Employee Stock Ownership Plan (“ESOP”), and the Executive Incentive Plan offered
      by Employer to its employees generally or to its senior management. In addition,
      Employee shall be entitled to not less than four (4) weeks of paid vacation
      each
      calendar year, whether or not such vacation is actually taken.  In
      addition, Employee shall receive a car allowance of not less than $400 per
      month.

    

    5.           Term.  The
      term of
      this Agreement shall be three (3) years, commencing on the Effective Date and
      continuing until the third anniversary of the Effective Date; provided, however,
      that the term of this Agreement shall automatically renew for one (1) additional
      year on the third anniversary of the Effective Date unless, at least three
      (3)
      months prior to such anniversary date, either Employer or Employee shall have
      provided the other with written notice of their intention not to extend the
      term
      of this Agreement; further provided however, that in the event the term of
      this
      Agreement is so extended, it shall also automatically renew for one (1)
      additional year on the fourth anniversary of the Effective
      Date  unless, at least three (3) months prior to such anniversary
      date, either Employer or Employee shall have provided the other with written
      notice of their intention not to further extend the term of this
      Agreement.

    

    6.           Termination.  Employee
      may be terminated at any time, without prejudice to Employee's right to
      compensation or benefits as provided herein.  Employee's rights upon
      a

    
      
         
          

      

      
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    termination
      shall be as follows:

    

    (a)           Cause.  As
      used in this Agreement, the term "Cause" shall mean the Employee's personal
      dishonesty or willful misconduct involving moral turpitude or casting a negative
      light on the reputation of Employer, breach of fiduciary duty involving personal
      profit, directly or indirectly to the Employee or any person or entity
      affiliated, in any manner,  with the Employee, 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
      a material breach of any provision of this Agreement.

    

    (b)           Termination
      With
      Cause.  Employer shall have the right to terminate the Employee
      for "cause", upon written notice to her of such determination, specifying the
      alleged "cause".  In the event of such termination, the Employee shall
      not be entitled to any further benefits under this Agreement, other than the
      payment to her of accrued and unpaid compensation or any other benefits required
      under law.

    

    (c)           Termination
      Without
      Cause.   Upon a termination of Employee's employment
      hereunder without "cause", Employee shall be entitled to receive her then
      current base salary for the remaining term of this Agreement, but in no event
      for less than six (6) months.  Such payments may be made over the
      remaining term of this Agreement in periodic payments in the same manner in
      which the Employee's salary was paid through the time of such termination,
      or by
      a lump sum payment of the discounted present value of all base salary payments
      through the remaining term of this Agreement.  The determination of
      the method of payment shall be made mutually by Employer and the Employee;
      provided, however, that in the event the parties cannot agree on the method
      of
      payment, Employer shall be entitled to choose.  In addition, Employer
      shall continue to provide the Employee with hospital, health, medical,
      prescription, long-term disability and life insurance, and any other like
      benefits in effect at the time of such termination through the end of the term
      of this Agreement, but in no event less than six (6) months.  The
      Employee shall have no duty to mitigate damages in connection with her
      termination by Employer without "cause."  However, if the Employee
      obtains new employment and such new employment provides for hospital, health,
      medical, prescription, long-term disability and life insurance, and other
      benefits, in a manner substantially similar to the benefits payable by Employer
      hereunder, Employer may permanently terminate the duplicative benefits
      it

    
      
         
          

      

      
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    is
      obligated to provide hereunder.

    

    (d)           Suspension
      and Special Regulatory Rules.

    

    (i)           If
      the Employee is suspended and/or temporarily prohibited from participating
      in
      the conduct of the affairs of the Employer by a notice served under Section
      8(e)(3) or Section 8(g)(1) of the Federal Deposit Insurance Act ("FDI Act"),
      Employer shall have the right to suspend all or a portion of its obligations
      under this Agreement as of the date of service of notice, unless stayed by
      appropriate proceedings.

    

    (ii)           If
      the Employee is removed and/or permanently prohibited from participating in
      the
      conduct of the affairs of the Employer by an order issued under Section 8(e)
      or
      Section 8(g)(1) of the FDI Act, all obligations of Employer under this Agreement
      shall terminate as of the effective date of the order and the Employee shall
      not
      be entitled to receive the payments provided for under Paragraph (c)
      above.

    

    (iii)           If
      the Employer is in default, as defined in Section 3(x)(1) of the FDI Act, all
      obligations of Employer under this Agreement shall terminate as of the date
      of
      default.

    

    7.           Resignation
      for
      Cause.  During the term of this Agreement, the Employee shall
      be entitled to resign from her employment with Employer, and receive the
      payments provided for below, in the event that the Employee is not in material
      breach of this Agreement and Employer (i) reassigns the Employee to a position
      of lesser rank or status than the Position, or (ii) reduces the Employee's
      compensation or other benefits below the amounts provided for under Sections
      3
      hereof.  Upon the occurrence of any of these events, the Employee
      shall have thirty days to provide Employer notice of her intention to terminate
      this Agreement.  In the event the Employee elects to so terminate this
      Agreement, such termination shall be treated as a termination without "cause"
      by
      Employer under Section 6(c) hereof, and the Employee shall be entitled to
      receive all payments and other benefits called for under Section
      6(c).

    

    8.           Change
      in
      Control.

    

    (a)           Upon
      the occurrence of a Change in Control (as herein defined) followed at any time
      during the term of this Agreement by the termination of the Employee's
      employment other than for "cause", as defined in Section 6(a) hereof, Employee
      shall become entitled to

    
      
         
          

      

      
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    receive
      the payments provided for under paragraph (c) below.  At any time
      following the occurrence of a Change in Control, the Employee shall have the
      right to elect to voluntarily terminate her employment and receive the payments
      provided for under paragraph (c) below.

    

    (b)           A
      "Change in Control" shall mean:

    

    
      	
               
                

            	
              (i)

            	
              a
                reorganization, merger, consolidation or sale of all or majority
                of the
                assets of Sussex Bancorp (the “Company”), or a similar transaction, in
                which the shareholders of the Company prior to such transaction hold
                less
                than a majority of the voting power of the resulting
                entity;

            

    

    

    
      	
               
                

            	
              (ii)

            	
              individuals
                who constitute the Incumbent Board (as herein defined) of the Company
                cease for any reason to constitute a majority
                thereof;

            

    

    

    
      	
               
                

            	
              (iii)

            	
              an
                event of a nature that would be required to be reported in response
                to
                Item I of the current report on Form 8-K, as in effect on the date
                hereof,
                pursuant to Section 13 or 15(d) of the Securities Exchange Act of
                1934
                (the "Exchange Act") if Employer were a reporting company subject
                to the
                Exchange Act; or

            

    

    

    
      	
               
                

            	
              (iv)

            	
              Without
                limitation, a change in control shall be deemed to have occurred
                at such
                time as any "person" (as the term is used in Section 13(d) and 14(d)
                of
                the Exchange Act) other than the Company or the Employer or the trustees
                or any administration of any employee stock ownership plan and trust,
                or
                any other employee benefit plans, established by the Company or the
                Employer from time-to-time in is or becomes a "beneficial owner"
                (as
                defined in Rule 13-d under the Exchange Act) directly or indirectly,
                of
                securities of the Company representing 25% or more of the Company’s
                outstanding securities ordinarily having the right to vote at the
                election
                of directors; or

            

    

    

    
      	
               
                

            	
              (v)

            	
              A
                tender offer is made for 25% or more of the voting securities of
                the
                Company and the shareholder owning beneficially or of record 25%
                or more
                of the outstanding securities of the Company have tendered or offered
                to
                sell their shares pursuant to such tender and such tendered shares
                have
                been accepted by the tender
                offeror.

            

    

    

    For
      these
      purposes, "Incumbent Board" means the Board of Directors of the Company on
      the
      start date of Employee’s employment with Employer, provided that any person
      becoming a director subsequent to the date hereof whose election was approved
      by
      a voting of at least three-quarters of the directors comprising the Incumbent
      Board, or whose nomination for election by

    
      
         
          

      

      
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    members
      or stockholders was approved by the same nominating committee serving under
      an
      Incumbent Board, shall be considered as though he were a member of the Incumbent
      Board.

    

    (c)           In
      the event the conditions of Section (a) above are satisfied, Employee shall
      be
      entitled to receive a lump sum payment equal to 2.99 times Employee's then
      current Base Salary; provided, however,
      that
      in no event shall any payments provided for hereunder constitute an "excess
      parachute payment" under Section 280G of the Internal Revenue Code of 1986,
      as
      amended or any successor thereto, and in order to avoid such a result the
      benefits provided for hereunder will be reduced, if necessary, to an amount
      which is One Dollar ($1.00) less than an amount equal to three (3) times
      Employee's "base amount" as determined in accordance with such Section
      280G.  In addition to the foregoing, Employee shall be entitled to
      receive from Employer, or its successor, hospital, health, medical,
      prescription, long term disability and life insurance on the terms and at the
      cost to Employee as Employee was receiving such benefits upon the date of her
      termination.  Employer's obligation to continue such insurance
      benefits will be for a period of two (2) years.

    

    9.           Covenant
      Not to
      Compete.  Employee agrees that, subject to performance by
      Employer or its successor in interest of its obligations under this Agreement,
      during the term of her employment hereunder and for a period of one (1) year
      after the termination of her employment, she will not within Sussex County,
      New
      Jersey in any way, directly or indirectly, manage, operate, control, accept
      employment or a consulting position with or otherwise advise or assist or be
      connected with or own or have any other interest in or right with respect to
      (other than through ownership of not more than five percent (5%) of the
      outstanding shares of a corporation whose stock is listed on a national
      securities exchange or on the National Association of Securities Dealers
      Automated Quotation System) any enterprise which competes with the Employer
      in
      the business of banking; provided, however, that this covenant not to compete
      shall not apply in the event Employee's employment hereunder is terminated
      at
      the end of the term of this Agreement due to Employer's decision not to extend
      or renew the terms of Employee's employment with Employer or a termination
      without "cause" by the Employer under Section 6(c) of this
      Agreement.  In the event that this covenant not to compete shall be
      found by a court of competent jurisdiction to be invalid or unenforceable as
      against public policy, such court shall exercise discretion in reforming such
      covenant to the end that Employee shall be

    
      
         
          

      

      
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    subject
      to a covenant not to compete that is reasonable under the circumstances and
      enforceable by the Company.  Employee agrees to be bound by any such
      modified covenant not to compete.

    

    10.           Miscellaneous.

    

    (a)           Governing
      Law.  In the absence of controlling Federal law, this Agreement
      shall be governed by and interpreted under the substantive law of the State
      of
      New Jersey. All litigation in connection with this Agreement shall be brought
      in
      the United States District Court for the District of New Jersey or the Superior
      Court of the state of New Jersey sitting in Sussex County. The parties hereto
      consent to , and waive any objection to jurisdiction by, either of such
      courts.

    

    (b)           Severability.  If
      any provision of this Agreement shall be held to be invalid, void, or
      unenforceable, the remaining provisions hereof shall in no way be affected
      or
      impaired, and such remaining provisions shall remain in full force and
      effect.

    

    (c)           Entire
      Agreement;
      Amendment.  This Agreement sets for the entire understanding of
      the parties with regarding to the subject matter contained herein and supersedes
      any and all prior agreements, arrangements or understandings relating to the
      subject matter hereof and may only be amended by written agreement signed by
      both parties hereto or their duly authorized representatives.

    

    
        
        (d)          
        Successors
        and
        Assigns.  This Agreement shall be binding upon and become
        the legal obligation of the successors and assigns of
        Employer.

    

     

    

    [this
      space left intentionally blank; signature for Employment Agreement on next
      page]

    
      
         
          

      

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

    

    
      	 
              	
              SUSSEX
                BANK

            
	 
              	 
              	 
              
	 
              	 
              	 
              
	 
              	
              By:

            	 
              
	 
              	 
              	
              Name:   Donald
                L. Kovach

            
	 
              	 
              	
              Title:     Chief
                Executive Officer

            
	 
              	 
              	 
              
	 
              	 
              	 
              
	 
              	
              EMPLOYEE:

            
	 
              	 
              	 
              
	 
              	 
              	 
              
	 
              	 
              	 
              
	 
              	
              Name:   Tammy
                Case

            

    

    

    

    Sussex
      Bancorp guarantees the payments
      described in paragraphs 6(c), 7 & 8(c) of this Agreement and executes this
      Agreement solely for that purpose.

    

    

    
      	 
              	
              SUSSEX
                BANCORP

            
	 
              	 
              	 
              
	 
              	 
              	 
              
	 
              	
              By:

            	 
              
	 
              	 
              	
              Name:  Donald
                L. Kovach

            
	 
              	 
              	
              Title:    President
                and Chief Executive Officer

            

    

     

     

    8Exhibit 10.34 

FOURTH AMENDMENT 

TO THE 

LABORATORY CORPORATION
OF AMERICA HOLDINGS 

DEFERRED COMPENSATION
PLAN 

        THIS
FOURTH AMENDMENT to the Laboratory Corporation of America Holdings Deferred Compensation
Plan is made this 6th day of December, 2007. 

        WHEREAS, Laboratory Corporation of
America Holdings, a Delaware Corporation, created the Laboratory Corporation of America
Holdings Deferred Compensation Plan (“Plan”) with an original effective date of
January 1, 2002; 

        WHEREAS, pursuant to Section 9.4,
Company’s Board of Directors (“Board”) has the right to amend the Plan at
any time;  

        WHEREAS, the Board has decided to
amend the Plan to expand the definition of Compensation, to permit installment payments of
compensation under certain circumstances, and to amend the Retirement Date under the terms
of the Plan, 

        NOW, THEREFORE, the Board does hereby
make this Fourth Amendment to the Plan. 

         1.       
          Section 1.1(l) of the Plan, as amended by the First Amendment to the Laboratory
          Corporation of America Holdings Deferred Compensation Plan, shall be amended by
          deleting the paragraph in its entirety. All references to the term: “Early
          Retirement Date” shall be stricken from the Plan. 

         2.       
          Section 1.1(s) of the Plan shall be amended by deleting the second sentence
          thereof and substituting in its place the following: 

	  	        Any
Employee who is a Plan Participant and who incurs a Separation of Employment with the
Employer for any reason other than retirement, death, disability, or termination of
employment for cause shall receive a payment in accordance with Section 5.6. Such
individual (or his Beneficiary) will be considered a Participant only if he elects to
receive an installment payment distribution under Section 5.4 and only for so long as the
individual has any balance in his Account. Conversely, the individual will no longer be a
Participant if he receives a lump sum distribution under Section 5.6. 

         3.       
          Section 1.1(w) of the Plan, as amended by the First Amendment to the Laboratory
          Corporation of America Holdings Deferred Compensation Plan, shall be amended by
          deleting the paragraph in its entirety and substituting in its place the
          following sentence: “Retirement Date” shall mean any date on or after
          a Participant both (i) attains the age of fifty-five with at least five (5)
          years of service and (ii) has incurred a Separation of Service, either
          voluntarily or involuntarily, for any reason. 

         4.       
          Section 3.1 of the Plan shall be amended by striking the first sentence thereof
          and substituting in its place the following sentence: Each Participant may elect
          to execute a compensation deferral election with the Employer to reduce his
          Compensation by either a specified dollar amount or a specified percentage of
          Compensation (equal to a whole number multiple of one (1) percent), provided,
          however that said election does not exceed 50% of Compensation. 

         5.       
          Section 4.4 of the Plan shall be amended by striking from the third sentence in
          the second paragraph thereof the word “monthly” and substituting in
          its place: “once per day.” 

         6.       
          Section 5.1(a) of the Plan, as amended by the First Amendment to the Laboratory
          Corporation of America Holdings Deferred Compensation Plan, shall be amended by
          striking the third and fourth sentence thereof and substituting in its place the
          following sentence: When a Participant attains the Retirement Date, the Plan
          will commence making distributions to the Participant on the first business day
          of the first month which is at least six (6) months after the date the
          Participant attained the Retirement Date (or as soon as administratively
          feasible after the first business day of the following month or, if earlier, the
          Participant’s date of death). 

         7.       
          Section 5.4 of the Plan, as amended by the First Amendment to the Laboratory
          Corporation of America Holdings Deferred Compensation Plan, shall be amended by
          deleting the paragraph in its entirety and by substituting in its place the
          following:  

	  	        The
Participant will determine the method of distribution of benefits to himself and the
method of distribution to his Beneficiary. Such determinations will be made at the time
the Participant makes his initial deferral election as set forth in Section 3.1. If the
Participant does not determine the method of distribution to him or his Beneficiary, the
method shall be a lump sum. This distribution election (including a deemed election) can
be changed by a Participant once per calendar year, but the new election may not take
effect until at least 12 months after the date on which the election is made. Any new
election which does not meet this 12-month requirement shall be null and void. When a
Participant makes his initial deferral election, a Participant may elect one of the
following four distributions for a distribution under Section 5.1: 

	  	        (1)    
          lump sum payment;  

	  	        (2)    
          annual payments over 5 years; 

	  	        (3)    
          annual payments over 10 years; or 

	  	        (4)    
          annual payments over 15 years. 

	  	        When
a Participant makes his initial election, a Participant may elect one of the following
distributions for a distribution under Section 5.6:  

	  	        (1)    
          lump sum payment or  

	  	        (2)    
          annual payments over 5 years. 

	  	        The
annual payments will be made on the anniversary of the Participant’s initial
distribution under Sections 5.1 or 5.6. The amount will be determined as follows. Each
annual payment will be equal to a fraction of the Account balance as of the date the
installment is processed for payment. The numerator of the fraction will be “1”
and the denominator will be the number of years remaining in the payment schedule. The
Participant’s account balance will be adjusted for investment gain or loss before
determining the amount of the remaining annual payments.  

         8.       
          Section 5.6 of the Plan, as amended by the First Amendment to the Laboratory
          Corporation of America Holdings Deferred Compensation Plan, shall be amended by
          deleting said section in its entirety and substituting in its place the
          following: 

	  	        If
the Participant incurs a Separation of Service for any reason which does not entitle him
to begin receiving distributions under Section 5.1, the Plan make or will commence making
distributions to the Participant on the first business day of the first month which is at
least six (6) months after the Participant’s effective date of the Separation of
Service (or as soon as administratively feasible after the first business day of the
following month or, if earlier, the Participant’s date of death).  

         9.       
          Section 5.7 of the Plan, as amended by the First Amendment to the Laboratory
          Corporation of America Holdings Deferred Compensation Plan, shall be amended by
          deleting the first sentence thereof and substituting in its place: A Participant
          may apply in writing to the Company for, and the Company may grant, (i) a
          cancellation of a deferral election for the election of the Plan Year and/or
          (ii) an emergency withdrawal of all or any part of the vested portion of the
          Participant’s Account, if the Company, in its sole discretion, determines
          that the Participant has incurred an Unforeseeable Emergency.

         10.       
          The Plan document, as it existed prior to the First Amendment and this
          Amendment, shall apply to all amounts deferred in Plan Years ending on or before
          December 31, 2004, provided that a Participant has a legally binding right to be
          paid such amounts on December 31, 2004, and that the Participant’s right to
          such amounts is earned and vested on December 31, 2004. To the extent that any
          pre-2005 deferrals are so grandfathered, the earnings on such deferrals shall
          similarly only be subject to the original Plan document prior to any such
          amendments. All other deferrals and the earnings thereon shall be subject to the
          Plan document as amended by the First through Fourth Amendment thereto for
          compliance with Code Section 409A.

         11.       
          This Fourth Amendment to the Plan shall be effective on January 1, 2008.

        IN
WITNESS WHEREOF, the Company has caused this Fourth Amendment to the Plan to be executed as
of the date first written above. 

	 	 	 	 	 
	 	Laboratory Corporation of America Holdings

 

 	 
	 	By:  	/s/Bradford T. Smith
 	 
	 	 	Bradford T. Smith, Executive Vice President

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