Document:

Exhibit

Exhibit 10.3

Aspen Technology, Inc.
Terms and Conditions of Stock Option Agreement
Granted Under 2016 Omnibus Incentive Plan
    
1.         Grant of Option.
These terms and conditions together with the notice of grant of stock option (the “Notice”) set forth on the cover page to which they are attached constitute an Agreement evidencing the grant by Aspen Technology, Inc., a Delaware corporation (the “Company”), on the grant date set forth in the Notice (the “Grant Date”) to the employee named in the Notice (the “Participant”), of an option to purchase, in whole or in part, on the terms provided herein and in the Company’s 2016 Omnibus Incentive Plan (the “Plan”), the number of shares (the “Shares”) of common stock, $0.10 par value per share, of the Company (“Common Stock”) set forth on the Notice, at a strike price set forth per Share set forth in the Notice.  Unless earlier terminated, this Agreement shall expire at 5:00 p.m., Eastern Time, on the Expiration Date set forth in the Notice (the “Final Exercise Date”).
To the extent permitted by the Code (as defined below) and designated in the Notice, it is intended that the option evidenced by this Agreement shall be an incentive stock option as defined in Section 422 of the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the “Code”) or a nonqualified stock option, to the extent designated in this Notice.
2.         Vesting Schedule.
The options granted hereunder will vest according to the schedule set forth on the Notice. The right of exercise shall be cumulative so that to the extent the option is not exercised in any period to the maximum extent permissible it shall continue to be exercisable, in whole or in part, with respect to all Shares for which it is vested until the earlier of the Final Exercise Date or the termination of this Agreement under Section 3 hereof or the Plan.
3.         Exercise of Option.
(a)    Form of Exercise.  Each election to exercise this Agreement shall be in the manner permitted by the Company’s third party stock incentive plan administrator.  If no such third party administrator is administering the Plan at such time, such election shall be in writing, signed by the Participant and received by the Company at its principal office, accompanied by this Agreement and payment in full in the manner provided in the Plan, or as otherwise provided in the Plan.  The Participant may purchase less than the number of shares covered hereby, provided that no partial exercise of this Agreement may be for any fractional share.
(b)    Continuous Relationship with the Company Required.  Except as otherwise provided in this Section 3, this Agreement may not be exercised unless the Participant, at the time he or she exercises this Agreement, is, and has been at all times since the Grant Date, an employee or officer of, or consultant or advisor to, the Company or any parent or subsidiary of the Company as defined in Section 424(e) or (f) of the Code (an “Eligible Participant”).
(c)    Termination of Relationship with the Company.  If the Participant ceases to be an Eligible Participant for any reason, then, except as provided in paragraphs (d) and (e) below, the right to exercise this Agreement shall terminate three months after such cessation (but in no event after the Final Exercise Date), provided that this Agreement shall be exercisable only to the extent that the Participant was entitled to exercise this Agreement on the date of such cessation.  Notwithstanding the foregoing, if the Participant, prior to the Final Exercise Date, violates the non-competition or confidentiality provisions of any employment contract, confidentiality and nondisclosure agreement or other agreement between the Participant and the Company, the right to exercise this Agreement shall terminate immediately upon such violation.
(d)    Exercise Period Upon Death or Disability.  Unless otherwise agreed by the Company and the Participant, if the Participant dies or becomes disabled (within the meaning of Section 22(e)(3) of the Code) prior to the Final Exercise Date while he or she is an Eligible Participant and the Company has not terminated such relationship for “cause” as specified in paragraph (e) below, this Agreement shall be exercisable, within the period of eighteen months following the date of death, or one year following the date of disability, of the Participant, by the Participant (or in the case of death by an authorized transferee), provided that this Agreement shall be exercisable only to the extent that this 

Agreement was exercisable by the Participant on the date of his or her death or disability, and further provided that this Agreement shall not be exercisable after the Final Exercise Date.
(e)     Termination for Cause.  If, prior to the Final Exercise Date, the Participant’s employment is terminated by the Company for Cause (as defined below), the right to exercise this Agreement shall terminate immediately upon the effective date of such termination of employment, unless otherwise agreed by the Company and the Participant.  If the Participant is party to an employment or severance agreement with the Company that contains a definition of “cause” for termination of employment, “Cause” shall have the meaning ascribed to such term in such agreement.  Otherwise, “Cause” shall mean (i) any willful failure by the Participant, which failure is not cured within 30 days of written notice to the Participant from the Company, to perform his or her material responsibilities to the Company, or (ii) willful misconduct by the Participant that affects the business reputation of the Company, in either case as determined by the Company, which determination shall be conclusive.
4.         Tax Matters.
(a)    Withholding.  No Shares will be issued pursuant to the exercise of this Agreement unless and until the Participant pays to the Company, or makes provision satisfactory to the Company for payment of, any federal, state or local withholding taxes required to be withheld in respect of this Agreement. To satisfy any such tax obligation, the Company may deduct and retain from the Shares to be issued upon exercise of the Option such number of Shares as is equal in value up to the Company’s maximum statutory withholding obligations with respect to the income recognized by the Participant upon such exercise (based on statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to such income), and pay the required amounts to the relevant taxing authorities.
(b)    Disqualifying Disposition.  To the extent the option is an incentive stock option, if the Participant disposes of Shares acquired upon exercise of this Agreement within two years from the Grant Date or one year after such Shares were acquired pursuant to exercise of this Agreement, the Participant shall notify the Company in writing of such disposition.
5.         Nontransferability of Option.
This Agreement may not be sold, assigned, transferred, pledged or otherwise encumbered by the Participant, either voluntarily or by operation of law, except by will or the laws of descent and distribution, and, during the lifetime of the Participant, this Agreement shall be exercisable only by the Participant.
6.         Provisions of the Plan; Change in Control.
This Agreement is subject to the provisions of the Plan, the terms of which are incorporated herein by reference.   A prospectus describing the Plan has been delivered to the Participant.  The Plan itself is available upon request.  In that regard, the Option is subject to adjustment in connection with a change in capital of the Company or a Corporate Transaction, as provided in Sections 15.1 and 15.2 of the Plan.  In addition, vesting of the Option in connection with a Change in Control shall be determined in accordance with Section 15.3 of the Plan.  For purposes of Section 15.3.1(ii) of the Plan, if the Option is assumed, converted or replaced by the resulting entity in the Change in Control, if, within one year after the date of the Change in Control, the Participant has a Separation from Service by the Company other than for Cause or by the Participant for Good Reason, any unvested portion of the Option shall become fully vested and exercisable as of the date of such Separation from Service.  For this purpose, “Cause” and “Good Reason” mean as follows:   
"Cause" is as defined in Section 3(e) above.
 "Good Reason" means any significant diminution in the Participant's title, authority, or responsibilities from and after the Change in Control, or any reduction in the annual cash compensation payable to the Participant from and after the Change in Control.

7.    Miscellaneous.
(a)      No Rights to Employment.   The Participant acknowledges and agrees that the vesting and exercisability of the Option shall be in accordance with the vesting schedule set forth in the Notice, and is contingent upon status as an employee at the time of vesting at the will of the Company (not through the act of being hired). The Participant further 

acknowledges and agrees that the transactions contemplated hereunder and the vesting schedule set forth in the Notice do not constitute an express or implied promise of continued engagement as an employee or consultant for the vesting period, for any period, or at all.
(b)       Severability.   The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.
(c)       Waiver.   Any provision for the benefit of the Company contained in this Agreement may be waived, either generally or in any particular instance, by the Board of Directors of the Company.
(d)       Binding Effect.   This Agreement shall be binding upon and inure to the benefit of the Company and the Participant and their respective heirs, executors, administrators, legal representatives, successors and assigns, subject to the restrictions on transfer set forth in Section 5 of this Agreement.
(e)       Notice.   A Any notice which either party hereto may be required or permitted to give to the other shall be in writing and may be delivered personally, by intraoffice mail, by fax, by electronic mail or other electronic means, or via a postal service, postage prepaid, to such electronic mail or postal address and directed to such person as the Company may notify the Participant from time to time; and to the Participant at the Participant’s electronic mail or postal address as shown on the records of the Company from time to time, or at such other electronic mail or postal address as the Participant, by notice to the Company, may designate in writing from time to time.
(f)       Pronouns.   Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa.
(g)       Entire Agreement.   This Agreement and the Plan constitute the entire agreement between the parties, and this Agreement supersedes all prior agreements and understandings, relating to the subject matter of this Agreement.
(h)       Amendment.   This Agreement may be amended or modified only by a written instrument executed by both the Company and the Participant.
(i)       Governing Law.   This Agreement shall be construed, interpreted and enforced in accordance with the internal laws of the State of Delaware, USA without regard to any applicable conflicts of laws principles.
(j)       Participant’s Acknowledgments.   The Participant acknowledges that he or she: (i) has read this Agreement; (ii) understands the terms and consequences of this Agreement; and (iii) is fully aware of the legal and binding effect of this Agreement.
(k)       Unfunded Rights.   The right of the Participant to receive Shares upon exercise of the Option pursuant to this Agreement is an unfunded and unsecured obligation of the Company. The Participant shall have no rights under this Agreement other than those of an unsecured general creditor of the Company.
(l)    Additional Acknowledgments; Appendix A.  By accepting this Award, the Participant acknowledges and agrees that this Award is subject to the terms applicable to Awards granted to service providers outside the U.S. set forth in the Appendix A hereto.  Appendix A constitutes part of this Agreement.  Please review the provisions of Appendix A carefully, as this Award will be null and void absent the Participant’s acceptance of such provisions.  The Company reserves the right to impose other requirements on the Award to the extent that the Company determines it is necessary or advisable in order to comply with local law or facilitate the administration of the Award and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

By accepting this grant online, I hereby acknowledge that I have read these Terms and Conditions, the 2016 Omnibus Incentive Plan and related prospectus, and agree to all terms and conditions set forth therein.  

APPENDIX A
TO THE TERMS AND CONDITIONS OF STOCK OPTION AWARD

1.    ADDITIONAL ACKNOWLEDGEMENTS

By entering into this Agreement and accepting the grant of the Option evidenced hereby, the Participant acknowledges, understands and agrees that: 
 
(a)    the Plan is established voluntarily by the Company, and all awards under the Plan are discretionary in nature;
 
(b)    the grant of the Option is voluntary and occasional and does not create any contractual or other right to receive future awards of Options or benefits in lieu of Options, even if such awards have been awarded in the past; 
 
(c)    all decisions with respect to future awards, if any, will be at the sole discretion of the Company;
 
(d)    the grant of Option shall not create a right to employment with the Company or any other Subsidiary and shall not interfere with the ability of the Company or any Subsidiary to terminate the Participant’s employment or service relationship (if any);
 
(e)    the Participant is voluntarily participating in the Plan;
 
(f)    the Option and any payment made pursuant to the Option, and the value and income of same, are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement benefits or welfare benefits or similar payments;
 
(g)    unless otherwise agreed with the Company, the Option and any Shares subject to the Option, and the value and income of same, are not granted as consideration for, or in connection with, any service the Participant may provide as a director of any Subsidiary;

(h)    in accepting the grant of the Option, the Participant expressly recognizes that the Option is an award made solely by the Company, with principal offices in Massachusetts, U.S.A.; the Company is solely responsible for the administration of the Plan and the Participant’s participation in the Plan; in the event that the Participant is an employee or consultant of an Subsidiary, the Option and the Participant’s participation in the Plan will not create a right to employment be interpreted to form an employment or service contract or relationship with the Company; furthermore, the Option will not be interpreted to form an employment or service contract with any Subsidiary;  

(i)    the future value of the Shares which may be delivered upon exercise of the Option is unknown, indeterminable and cannot be predicted with certainty;
 
(j)    no claim or entitlement to compensation or damages shall arise from forfeiture of the Option resulting from termination of the Participant’s employment or service (for any reason whatsoever, whether or not such termination is later found to be invalid or in breach of the employment laws in the jurisdiction where the Participant is employed or providing services or the terms of the Participant’s employment or service agreement, if any) and, in consideration of the grant of the Option, the Participant irrevocably agrees never to institute any claim against the Company, the Participant’s employer or any other affiliate, waives the Participant’s ability, if any, to bring any such claim, and releases the Company, the Participant’s employer and any other affiliate from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, the Participant shall be deemed irrevocably to have agreed not to pursue such claim, and the Participant agrees to execute any and all documents necessary to request dismissal or withdrawal of such claim;

(k)    the Participant is solely responsible for investigating and complying with any exchange control laws applicable to the Participant in connection with his or her participation in the Plan; 

(l)    unless otherwise provided in the Plan or by the Company in its discretion, the Option and the benefits evidenced by this Agreement do not create any entitlement to have the Option or any such benefits transferred to, or assumed 

by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Company’s Common Stock; and

(m)    neither the Company, the Participant’s employer nor any other affiliate shall be liable for any foreign exchange rate fluctuation between the Participant’s local currency and the United States Dollar that may affect the value of the Option, any payment made pursuant to the Option or the subsequent sale of any shares of Common Stock acquired under the Plan.

2.    NO ADVICE REGARDING GRANT

The Company is not providing any tax, legal, or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan or the Participant’s acquisition of any Shares under the Plan or subsequent sale of such Shares.  The Participant is hereby advised to consult with the Participant’s personal tax, legal and financial advisors regarding the Participant’s participation in the Plan before taking any action in relation thereto.

3.    LANGUAGE

If the Participant has received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version differs from the English version, the English version shall control.

4.    Electronic Delivery and Acceptance

The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  The Participant hereby consents to receive such documents by electronic delivery and agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

5.    Insider-Trading/Market-Abuse Laws

The Participant acknowledges that, depending on his or her country, the Participant may be subject to insider-trading restrictions and/or market-abuse laws, which may affect his or her ability to acquire or sell Shares acquired or rights to acquire Shares (e.g., Awards, Units) under the Plan during such times as the Participant is considered to have “inside information” regarding the Company (as defined by the laws in his or her country).  Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy.  The Participant is responsible for complying with any applicable restrictions, and the Participant is advised to speak to his or her personal legal advisor regarding this matter.Exhibit

EXHIBIT 10.1

Valley National Bancorp

January 24, 2017

Mr. Gerald H. Lipkin, Chairman and CEO
Valley National Bancorp
Valley National Bank
1445 Valley Road
Wayne, New Jersey 07470

Dear Mr. Lipkin:

The Board of Directors of Valley National Bancorp (“Bancorp”) and Valley National Bank (the “Bank”) (collectively, the “Company”) have determined that it is in the best interests of Bancorp and the Bank for the Company to agree to provide you with a revised overall pension benefit, as provided herein.
We originally entered into a letter agreement with you, dated October 7, 2008 concerning your pension benefit, which was replaced and restated in a letter agreement, dated February 8, 2011, which was again replaced and restated in a letter agreement, dated February 19, 2013, and which was again replaced and restated in a letter agreement, dated November 21, 2013 (the “Prior Agreement”).  This letter agreement restates and amends the provisions of the Prior Agreement, and the Prior Agreement is rescinded upon your consent to this letter.  Any other agreement between us referencing the Prior Agreement shall be deemed a reference to this letter agreement without the need to amend such other agreement.
In view of the foregoing, and in consideration of your continued employment with the Company and your consent to this letter, the Company agrees:
1.    If the Company elects to terminate you as Chief Executive Officer of Bancorp and/or the Bank, upon the termination of your employment the Company will pay you a lump sum severance benefit equal to 12 months of your annual base salary plus a portion of your most recent bonus.  This payment will be made within thirty (30) days following the date of your termination of employment.  The bonus amount shall equal your most recent bonus multiplied by a fraction, the numerator of which is the number of months which have elapsed in the current calendar year and the denominator of which is 12.  This severance benefit will not be paid if the Company terminates you for “cause”.  “Cause” means gross misconduct by you in connection with Company business.  Section 1 and Section 2 below are inapplicable in the event of a termination of your employment due to death or disability, or if you are paid a severance benefit pursuant to any change in control agreement with the Company.  If you die after the Company elects to terminate you as 

Chief Executive Officer of Bancorp and/or the Bank, but before you receive the lump sum severance benefit you are entitled to hereunder, your estate shall be entitled to the benefit.  
2.    In addition, within thirty (30) days following the termination of your employment by the Company (other than for Cause), the Company will pay to you a lump sum amount equal to one hundred twenty-five percent (125%), less applicable withholdings, of (A) the aggregate COBRA premium amounts (based upon the COBRA rates in effect at the date of termination) for three (3) years of health, hospitalization, dental and medical insurance coverage that was being provided to you (and your spouse) at the time of termination of employment, minus (B) the aggregate amount of any employee contributions that would have been required of you (determined as of the date of termination of employment) for such three (3) year period.  The Company also shall pay you within the same time frame a lump sum amount equal to one hundred twenty-five percent (125%), less applicable withholdings, of the Company’s share of the premium for three (3) years of the life insurance coverage provided to a similarly situated active employee (based upon the coverage and rates in effect on the date that your employment is  terminated).
Notwithstanding anything else to the contrary in this letter agreement, the Company may delay some or all of the payment of benefits provided in Sections 1, 2 and 9 herein for six (6) months following your termination from employment to the extent necessary to comply with Section 409A of the Internal Revenue Code.  At the end of such period of delay, you will be paid the delayed payment amounts, plus interest for the period of any such delay.  For purposes of the preceding sentence, interest shall be calculated using the six (6) month Treasury Bill rate in effect on the date on which the payment is delayed, and shall be compounded daily.  If the conditions of the severance exception under Treasury Regulation Section 1.409A-1(b)(9)(iii) (or any successor Regulation thereto), or the short-term deferral rule under Treasury Regulation Section 1.409A-1(b)(4) (or any successor Regulation thereto), are satisfied, then payment of benefits shall not be delayed for six (6) months following termination of employment to the extent permitted thereunder. (This paragraph is referred to hereafter as the “409A Paragraph”).  
Notwithstanding anything else to the contrary in this letter agreement, the payment of benefits provided in Sections 1, 2 and 8 herein shall not apply if you retire as the chief executive officer of the Company. 
As partial consideration for the Company entering into this letter agreement, you agree as follows:
3.    Following the termination of your employment with the Company for any reason, you shall retain in confidence any confidential information known to you concerning the Company and its business.
4.    While you are employed by the Company, and for a period of two years thereafter, you will not, without the prior written approval of the Board of Directors of Bancorp, directly or indirectly, as officer, director, employee, shareholder, principal or agent, or in any other capacity, own, manage, operate, consult with or be employed by any insured depository institution which transacts business in the State of New Jersey, New York or Florida if either (i) such insured depository institution maintains an office in New Jersey, New York or Florida from which you act 

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on behalf of such institution or (ii) such insured depository institution employs you in any capacity to solicit loans, trust, deposits or other customers of the Company.  However this paragraph shall not prohibit you from owning bonds, preferred stock or up to five percent (5%) of the outstanding common shares of any insured depository institution or its parent holding company.
5.    You agree that the Company has no adequate remedy at law for the violation of paragraphs 3 and 4 and that the Company shall be entitled to injunctive relief to enforce such provisions.
Both parties mutually agree as follows:
6.    This letter agreement shall commence on the date hereof and expire on January 1, 2018 (January 1, 2018 is referred to hereafter as the “Initial Expiration Date”).  On January l of each year starting January 1, 2018, the Initial Expiration Date shall be automatically extended for an additional one year period (so it remains a one year contract) unless you or Bancorp otherwise elect and so notify the other party in writing prior to January 1 of any year starting with January 1, 2018.  This letter agreement may be amended, supplemented or changed at any time only by a writing signed by Bancorp and yourself.  Notwithstanding the foregoing, the terms of paragraphs 3, 4, 5, 7, 9 and 10, of this letter agreement (as well the 409A Paragraph as applied to paragraph 9) shall survive any termination or expiration.
7.    This Agreement shall be binding upon and inure to the benefit of you, your estate and the Company, and any successor to the Company by merger, consolidation or sale.  Neither this Agreement nor any rights arising hereunder may be assigned or pledged by you.  After your death, your spouse or otherwise your estate shall be entitled to enjoy and enforce the benefits of this Agreement.  The Company may not offset amounts due to you hereunder.  However, in the event you breach the non-compete contained in paragraph 4 hereof, the Company shall not be obligated to pay you any benefits hereunder, and you shall not be entitled to be paid your legal fees or expenses as provided in paragraph 10 hereof; provided however, the Company must give you a written notice of any breach of the non-compete and an opportunity to cure such breach within a reasonable period of no less than 30 days before ceasing the payment of any benefits or denying you payment of your legal fees.
8.    In the event of your death while you are employed by the Company, the Company will pay to your spouse, if you predecease her, otherwise to your estate, (i) a portion of your most recent bonus (calculated by multiplying your most recent bonus multiplied by a fraction, the numerator of which is the number of months which have elapsed in the current calendar year, and the denominator of which is 12), within thirty (30) days following the date of your death, and (ii) your annual base salary (as in effect at your death) for 12 months, payable in monthly installments.  Such payments shall be reduced by the amount, if any, of the regular monthly benefit payable to your spouse in the 12 months following your death from the Company’s defined benefit pension plan and benefit equalization plan.
9.    You shall be entitled to an annual combined benefit from the Valley National Bank Pension Plan (the “Pension Plan”) and the Valley National Bank Benefit Equalization Plan (the “BEP”) and, to the extent necessary, from the Company upon your termination of employment 

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with the Company (the “Annual Combined Benefit”, $801,170 as of December 31, 2016 which can increase but not decrease as a result of your continued employment subsequent to such date).  The portion of the Annual Combined Benefit that is paid by the Company shall commence to be paid on the first day of the month following the termination of your employment with the Company, subject to the 409A Paragraph, and shall continue for so long as you shall survive.  If you survive past the tenth anniversary of the date of your termination of employment with the Company (the “Initial Ten Year Period”), and should your spouse survive you, she shall be entitled to a survivor benefit of two-thirds of the Annual Combined Benefit per year for the remainder of her life (the “Annual Post 10 Year Spousal Survivor Benefit”, $534,113 as of December 31, 2016 which can increase but not decrease as a result of your continued employment subsequent to such date).  Should you die (i) before commencing receipt of benefits under the Pension Plan or (ii) before the end of the Initial Ten Year Period, and, in either case, should your spouse survive you, she shall be entitled to an annual survivor benefit equal to the Annual Combined Benefit through the end of the Initial Ten Year Period (the “Annual 10 Year Spousal Survivor Benefit”) and, thereafter, the Annual Post 10 Year Spousal Survivor Benefit.  In the event that prior to the end of the Initial Ten Year Period, both you and your spouse die, the estate of the last surviving of you and your spouse (as determined by the applicable provision of your will in the event of a common disaster) shall be entitled to a lump sum payment equal to the Annual Combined Benefit multiplied by the number of years (including fractional years) from the later date of decease to the end of the Initial Ten Year Period (the “10 Year Estate Benefit”).  The foregoing assumes pension benefits under the Pension Plan and the BEP are paid to you in the form of a joint and two-thirds survivor annuity, and provides that for both Pension Plan and the BEP the actuarial adjustment from the single life annuity to the joint and two-thirds survivor annuity in both the Pension Plan and BEP will be made using the actuarial factor defined in the Pension Plan and not the BEP.  You will need, however, to follow the administrative processes under the respective plans in order to actually commence receipt of such benefits. 
In the event that you elect an annuity form of payment under the Pension Plan and the BEP other than the joint and two-thirds survivor annuity with the spouse you are married to on December 31, 2016, the annuities payable to you and your spouse will be actuarially adjusted from the single life annuity to the form of benefit elected; provided however, for both the Pension Plan and the BEP the amounts will be adjusted using the actuarial factors defined in the Pension Plan and not under the BEP.  For the avoidance of doubt, and Annual 10 Year Spousal Survivor Benefit and the 10 Year Estate Benefit will apply to all annuity forms of payment with no additional actuarial adjustment for these benefits.  
In the event of a Change in Control, as defined in the BEP, resulting in the payment to you, your spouse or your estate of a lump sum under the BEP, the lump sum payable to you under the BEP and hereunder will be made using the actuarial assumptions described in Appendix A of this letter agreement, and not under Appendix A of the BEP.  Note that any increases to the lump sum payable under the BEP as a result of this Section 9 and Appendix A will be payable under this letter agreement such that the actual lump sum payable under the BEP remains unchanged.
The calculation of any required actuarial adjustment will be made by the actuary regularly employed by the Company for pension benefit calculations on the date of your termination 

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of employment with the Company or, in the event you have elected a lump sum payment under the BEP upon a change in control, by the actuary regularly employed by the Company for pension benefit calculations on the date one day prior to the change in control.  As a matter of clarity, the parties agree that all of the payments under this paragraph 9 constitute payments under “any benefit plan of the Company” under the first sentence of Section 12a of the Amended and Restated Change in Control Agreement dated June 22, 2011 among the Bancorp, the Bank and you (as may subsequently be amended, “the Change in Control Agreement”), and this benefit will be covered by the Gross-Up Payment provided for under Section 12 of that Agreement if and to the extent that this benefit may constitute a parachute payment and/or a payment that is subject to the excise tax under Section 409A of the Internal Revenue Code.  
The term “spouse” as used herein means the person you are married to at the time of your termination from service, but not any person to whom you may become married thereafter.  Notwithstanding anything to the contrary provided for in your Change in Control Agreement, Section 12 of that Agreement and your right to a Gross-Up Payment provided thereunder is incorporated herein by reference and shall survive to the extent a Change in Control (as defined in the Change in Control Agreement) occurs within 12 months after the termination of your employment with the Company.  
10.    In the event the Company fails to pay to you, your spouse or your estate any of the benefits provided herein for a period in excess of 10 business days after a written request to do so, you (or your spouse or estate) shall be entitled to be paid or reimbursed by the Company for the legal fees and expenses incurred by you (or your spouse or estate) in enforcing or interpreting the provisions of this Agreement.  The Company hereby agrees to pay or reimburse you (or your spouse or estate) for such fees and expenses on a monthly basis, upon the submission of bills or requests for payment.  A court shall be entitled to deny you your legal fees and expenses only if it finds you made a claim for benefits hereunder not in good faith and without reasonable cause.

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If you are in agreement with the foregoing, please so indicate by signing and returning to the company the enclosed copy of this letter, whereupon this letter shall constitute an agreement between you and the Company as of the date first set forth above.
Very truly yours,

	
			
	 
	 
	VALLEY NATIONAL BANCORP

	 
	By:
	/s/ Gerald Korde

	 
	 
	Gerald Korde

	 
	 
	Chairman, Compensation and Human Resources Committee

	 
	 
	 

	AGREED AND ACCEPTED:
	 
	VALLEY NATIONAL BANK

	/s/ Gerald H. Lipkin
	By:
	/s/ Gerald Korde

	Gerald H. Lipkin, Executive
	 
	Gerald Korde

	 
	 
	Chairman, Compensation and Human Resources Committee

APPENDIX A
ACTUARIAL ASSUMPTIONS
(This appendix is  annexed to a letter agreement between Valley National Bancorp, Valley National Bank and Gerald Lipkin, dated January 24, 2017.  As used in this Appendix A, the term “ letter agreement” refers to the letter agreement to which this Annex A is attached. As used in this Appendix A, “total letter agreement benefit” means the total benefit derived from the Pension Plan, the BEP and Section 9 of the letter agreement.  
For purposes of determining the annuity benefit described in Section 9 of this letter agreement that is payable upon termination of employment, the following procedures shall apply:
Step 1:  Calculate the BEP Benefit in the form of single life annuity as set forth in Article III of the BEP document, prior to offset for the Pension Plan Benefit.
Step 2:  Adjust the benefit calculated in Step 1 for the annuity form of payment elected using the actuarial factors in Sections 7.4 and 7.6 of the Pension Plan document.
The result of this Step 2 is the Annual Combined Benefit, the Annual 10 Year Spousal Survivor Benefit, and the basis for the 10 Year Estate Benefit defined in this letter agreement.
Step 3: Multiply the amount in Step 2 by the joint & survivor annuity percentage elected (if applicable).  
The result of this Step 3 is the Annual Post 10 Year Spousal Survivor Benefit defined in this letter agreement.
Step 4:  Subtract the benefits payable under the Pension Plan and BEP to determine the annuity payable under this letter agreement.
For purposes of determining the lump sum benefit described in Section 9 of this letter agreement that is payable under a Change in Control that occurs prior to benefit commencement under this letter agreement, the following actuarial assumptions and method shall apply:
Step 1: Calculate the annuity benefit in Steps 1, 2 and 3 above based on a joint and two-thirds survivor annuity election with the spouse you are married to (most recent spouse if not married) at the time of the Change in Control.  The result, payable for a minimum 10 year period, is the total letter agreement benefit.  
Step 2: Convert the total letter agreement benefit  into an actuarial equivalent straight life annuity using: 
		
	(a)
	Mortality Table:  The Uninsured Pensioner 1994 Mortality Table (UP-94) for males

		
	(b)
	Interest Rate:  Eight percent (8.00%) per annum, compounded annually

Step 3:  Subtract the accrued benefit under the qualified Pension Plan payable as a straight life annuity.
Step 4:  Convert the resulting net nonqualified benefit into a lump sum value using:
		
	(a)
	The Applicable Mortality Table, as defined under the Pension Plan; and 

		
	(b)
	The lesser of:

(i)     The Pension Benefit Guaranty Corporation (PBGC) immediate interest rate used to determine lump sum payments for the calendar month immediately preceding the month the lump sum payment is made, or
		
	(ii) 
	6%.  

The result of this Step 3 is the total lump sum value payable from both the BEP and this letter agreement.
Step 5:  Subtract the lump sum actually payable under the BEP to determine the net lump sum payable under this letter agreement.
For purposes of determining the lump sum benefit described in Section 9 of this letter agreement that is payable under a Change in Control that occurs after benefit commencement under this letter agreement, the following actuarial assumptions and method shall apply:
Step 1: Convert the remaining net nonqualified benefits into a lump sum value using: 
		
	(a)
	The Applicable Mortality Table, as defined under the Pension Plan; and

		
	(b)
	The lesser of:

(i)     The Pension Benefit Guaranty Corporation (PBGC) immediate interest rate used to determine lump sum payments for the calendar month immediately preceding the month the lump sum payment is made, or
(ii)     6%.  

-6-

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