Document:

mbvt_Ex10_9

		
			Exhibit 10.9
		

		
			
		

		
			 
		

		
			GENERAL RELEASE AND SEPERATION AGREEMENT
		

		
			 
		

		
			This General Release and Separation Agreement (“Release”) is between Merchants Bank, a Vermont Chartered bank and Merchants Bancshares, Inc., a Delaware corporation (collectively referred to as “the Corporations”) and Michael R. Tuttle (“Tuttle”).  Tuttle’s employment with the Corporations has terminated effective December 31, 2015 and this Agreement is intended to effectuate Tuttle’s post-employment rights and obligations under his Employment Agreement dated January 1, 2011, including but not limited to Tuttle’s rights in paragraph no. 4(b) of that Agreement.   
		

		
			 
		

			
	
			
				 1.
			

			
	
			
			The Corporations will tender Tuttle payments equal to $180,000 over three (3) calendar years, less applicable deductions and withholdings, in accordance with the Corporation’s normal payroll practices.  These payments shall begin as soon as administratively possible following the expiration of the revocation period described in paragraph 7.  

		
			 
		

			
	
			
				 2.
			

			
	
			
			In addition the Corporations shall reimburse Tuttle towards COBRA premiums for family coverage.  At the end of the COBRA continuation period, the Corporations shall reimburse Tuttle on a monthly basis the amount incurred by Tuttle for medical insurance (family coverage) provided that the maximum monthly reimbursement shall not exceed what the Bank would have provided as medical insurance premiums for its executives with family coverage.  The reimbursement for medical insurance premiums shall be for a period of five years.  

		
			 
		

			
	
			
				 3.
			

			
	
			
			In exchange for the benefits described in paragraph 1 and 2 of this Agreement, Tuttle agrees to comply with all the terms and conditions set forth herein, and to provide the instant General Release to the Corporations.

		
			 
		

		
			For good and valuable consideration, as set forth above between the Corporations and Tuttle, Tuttle agrees as follows:
		

		
			 
		

			
	
			
				 4.
			

			
	
			
			Tuttle, for Tuttle and Tuttle’s heirs, executors and administrators, releases and forever discharges the Corporations and its affiliates, and their successors and assigns, subsidiaries, parent and related companies, and all of their directors, employees, and agents (collectively referred to as the “Released Parties”) from any and all claims or causes of action whatsoever, which Tuttle ever had or has now against the Released Parties, whether they are known now or unknown, except those claims that are expressly preserved herein.

		
			 
		

		
			Tuttle understands and agrees that this document is a general release that releases all claims and causes of action against the Released Parties that Tuttle ever had or now has for acts or omissions up to the date of this Release including, but not limited to, those relating to Tuttle’s recruitment, employment, and the termination of Tuttle’s employment 
		

		
			

		 

		

			1

		

 

with the Corporations.  Tuttle also understands that once Tuttle signs this Release, Tuttle legally waives and releases any and all rights and claims Tuttle may have (a) under the numerous state and federal laws and regulations, as amended, including, without limitation, the Age Discrimination in Employment Act (“ADEA”) and the Vermont Fair Employment Practices Act, and any other discrimination law, (b) under any local statute or ordinance, as well as (c) under any common law claim in tort or contract; provided however that Tuttle does not waive his rights under paragraph no. 4 (b) of his Employment Agreement of January 1, 2011 and the parties incorporate paragraphs 7(a)-(g), 8, 10, 12, 13, 14, 15, 16, 17, 18, 19 and 20 of the Employment Agreement herein.  The Employment Agreement is attached hereto as Exhibit A.  Finally, Tuttle understands and agrees that, if Tuttle does file such a claim, the Corporations may be entitled to restitution, set-off or recoupment of some or all of the payments provided to Tuttle in addition to any other relief to which the Corporations may be entitled.
		

		
			 
		

		
			Excluded from this release are any claims which cannot be waived by law, including, but not limited to, the right to file a charge with or participate in an investigation conducted by certain government agencies.   However, Tuttle  understands and agrees that Tuttle is waiving the right to any monetary recovery should any agency (including, but not limited to, the Equal Employment Opportunity Commission) or third party pursue any claims on Tuttle    ’s behalf, and that the consideration paid for this Release provides Tuttle  with full relief and Tuttle  will not accept any additional relief.  
		

		
			 
		

			
	
			
				 5.
			

			
	
			
			Tuttle agrees further that if any provision of this Release is held to be invalid or unenforceable to any extent, the remainder of this Release shall not be affected, and shall be enforced to the greatest extent permitted by law. 

		
			 
		

			
	
			
				 6.
			

			
	
			
			Tuttle agrees that neither this Release nor the payment of the consideration for this Release shall be considered or construed for any purpose as an admission by the Corporations of any liability or unlawful conduct of any kind and that any such liability is expressly denied.

		
			 
		

			
	
			
				 7.
			

			
	
			
			The Corporations advise Tuttle to seek legal counsel at his own expense prior to executing this Agreement and the Release.  Tuttle has forty-five (45) days in which to consider the Agreement and the Release.  Tuttle may revoke this Agreement for a period of seven (7) days following the day on which he signs the Release.  Any revocation must be submitted in writing either in person or by electronic mail to Jacquie Dragon (e-mail JDragon@mbvt.com).   Such revocation must state “I revoke our agreement.”  This agreement will go into full force and effect upon the expiration of the revocation period so long as you have not revoked it within that time.

		
			 
		

			
	
			
				 8.
			

			
	
			
			Tuttle states and represents that Tuttle has had 45 calendar days to consider this Release, that Tuttle has carefully read this Release, knows the contents of it, has had all the time to he needs to seek legal counsel, freely and voluntarily assents to all of its terms 

		
			
		

		
			

		 

		

			2

		

 

and conditions, understands the final and binding effect of this Release, and signs it as Tuttle’s own free act with the full intent of releasing the Released Parties from all claims. Tuttle understands that Tuttle may revoke this General Release and Separation Agreement at any time within seven (7) days of signing by following the procedures contained herein.  Tuttle acknowledges that the Corporations have advised Tuttle to consult with an attorney before signing this Release.
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/ Michael R. Tuttle

				
	
					
						 

					
					
						Michael R. Tuttle

				
	
					
						 

					
					
						 

				
	
					
						STATE OF VERMONT

					
					
						 

				
	
					
						COUNTY OF illegible, SS.

					
					
						 

				

		
			 
		

		
			 
		

		
			On this 21 day of January 2016,  Name personally appeared, and he acknowledged the foregoing instrument to be his free act and deed, without duress or coercion, and that he executed it for the purposes therein contained.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Before me,

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						illegible

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Notary Public

				
	
					
						 

					
					
						My Commission Expires: 2/10/19

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						MERCHANTS BANK

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/ Jacquie Dragon

				
	
					
						 

					
					
						By: Jacquie Dragon

				
	
					
						 

					
					
						SVP and Director of Human Resources

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Dated:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						MERCHANTS BANCSHARES, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Geoffrey R. Hesslink

				
	
					
						 

					
					
						 

					
					
						Its: President & CEO

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Dated: 1/21/16

				

		
			 
		

		 

		

			3ex10-9.htm

Exhibit 10.9

 

CHANGE OF CONTROL AGREEMENT

 

THIS AGREEMENT is made as of the 25th day of February, 2016, among QNB CORP. (“Corporation”), a Pennsylvania business corporation having a place of business at 10 North Third Street, Quakertown, Pennsylvania 18951, QNB BANK (“Bank”) a Pennsylvania banking institution having a place of business at 10 North Third Street, Quakertown, Pennsylvania 18951, and Christopher T. Cattie (“Executive”), an individual.

 

WITNESSETH:

 

WHEREAS, Corporation is a registered bank holding company;

 

WHEREAS, Bank is a subsidiary of Corporation;

 

WHEREAS, Corporation and Bank desire to employ Executive to serve in the capacity of Chief Information Technology Officer of Corporation and Bank, and Executive desires to accept such employment; and 

 

WHEREAS, Corporation and Bank desire to provide Executive with a severance payment in the event that Executive’s employment is terminated without cause within three (3) years following a “change in control” (as defined herein), on the terms and conditions set forth herein.

 

AGREEMENT:

 

NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

 

EMPLOYMENT. Executive is employed by Corporation and Bank on an “at will” basis and there is no employment agreement between them. This Agreement is granted by Corporation and Bank in order to set forth terms and conditions between Corporation, Bank and Executive in the event of a Change in Control as defined herein.

 

RIGHTS IN EVENT OF TERMINATION OF EMPLOYMENT FOLLOWING CHANGE IN CONTROL. If Executive’s employment is terminated by Corporation or Bank other than for Cause (as defined below) on or before the three (3) year anniversary of the date of a Change in Control (as defined below), then Corporation or Bank shall pay to Executive, in lieu of any other severance benefits to which Executive may be entitled, an amount equal to the product of (a) the average annual aggregate compensation paid by Corporation and Bank to Executive and includible in the Executive’s gross income for federal income tax purposes during the five (5) calendar years preceding the taxable year in which the date of the termination occurs (or during the actual number of years in which Executive was employed by Corporation and Bank if less than five (5), with any partial year annualized), multiplied by two (2), such payment to be made in a lump sum on or before the fifth day following the date of termination and shall be subject to applicable taxes and withholdings. However, if the lump sum payment under this paragraph 2, when added to all other amounts or benefits provided to or on behalf of the Executive in connection with Executive’s termination of employment, would result in the imposition of an excise tax under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), such payment shall be reduced to the extent necessary to avoid such excise tax imposition. Notwithstanding the foregoing or any other provision of this Agreement to the contrary, if any portion of the amount herein payable to the Executive is determined to be non-deductible pursuant to the regulations promulgated under Section 280G of the Code, the Corporation shall be required only to pay to Executive the amount determined to be deductible under Section 280G. The determination of any reduction in the lump sum payment under this paragraph 2 pursuant to the foregoing provisions shall be made by Corporation’s independent auditors.

 

TERMINATION OF EMPLOYMENT FOR CAUSE. For purposes of this Agreement, termination for “Cause” shall mean any of the following:

 

Executive’s conviction of or plea of guilty or nolo contendere to a felony, a crime of falsehood or a crime involving moral turpitude, or the actual incarceration of Executive for a period of twenty (20) consecutive days or more;

 

Executive’s willful or intentional failure to follow the good faith lawful instructions of the Board of Directors of Corporation or Bank with respect to its operations, after written notice from Corporation or Bank and a failure to cure such violation within twenty (20) days of said written notice;

 

Executive’s willful or intentional failure to substantially perform Executive’s duties to Corporation or Bank, other than a failure resulting from Executive’s incapacity because of physical or mental illness, after written notice from Corporation or Bank and a failure to cure such violation within twenty (20) days of said written notice dishonesty or negligence by the Executive in the performance of Executive’s duties;

 

 

 

 

 

Executive’s violation of any law, rule or regulation governing banks or bank officers or any final cease and desist order issued by a bank regulatory authority;

 

conduct on the part of the Executive as determined by an affirmative vote of seventy percent (70%) of the disinterested members of the Board of Directors of Corporation and Bank which brings public discredit to Corporation or Bank; or

 

Executive’s breach of fiduciary duty involving personal profit.

 

CHANGE IN CONTROL DEFINED. As used in this Agreement, “Change in Control” shall mean the occurrence of any of the following: 

 

(i) a merger, consolidation or division involving Corporation or Bank, (ii) a sale, exchange, transfer or other disposition of substantially all of the assets of Corporation or Bank, or (iii) a purchase by Corporation or Bank of substantially all of the assets of another entity, unless (y) such merger, consolidation, division, sale, exchange, transfer, purchase or disposition is approved in advance by seventy percent (70%) or more of the members of the Board of Directors of Corporation or Bank who are not interested in the transaction and (z) a majority of the members of the Board of Directors of the legal entity resulting from or existing after any such transaction and of the Board of Directors of such entity’s parent corporation, if any, are former members of the Board of Directors of Corporation or Bank; or

 

any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”)), other than Corporation or Bank or any “person” who on the date hereof is a director or officer of Corporation or Bank is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of Corporation or Bank representing twenty-five (25%) percent or more of the combined voting power of Corporation or Bank’s then outstanding securities; or

 

during any period of two (2) consecutive years during the term of Executive’s employment under this Agreement, individuals who at the beginning of such period constitute the Board of Directors of Corporation or Bank cease for any reason to constitute at least a majority thereof, unless the election of each director who was not a director at the beginning of such period has been approved in advance by directors representing at least two-thirds of the directors then in office who were directors at the beginning of the period; or 

 

any other change in control of Corporation and Bank similar in effect to any of the foregoing.

 

DATE OF CHANGE IN CONTROL DEFINED. For purposes of this Agreement, the date of a Change in Control shall mean:

 

the first date on which a single person and/or entity, or group of affiliated persons and/or entities, acquire the beneficial ownership of twenty-five (25%) or more of the voting securities of the Corporation or Bank; or

 

the date of the closing of an agreement, transferring all or substantially all of the assets of the Corporation or Bank; or

 

the date on which a merger, consolidation or business combination involving the Corporation or Bank is consummated, as applicable; or

 

the date on which individuals who formerly constituted a majority of the Board of Directors of the Corporation of Bank under paragraph 4(c) above, cease to constitute a majority of the Board of Directors of the Corporation or Bank.

 

NO EMPLOYMENT CONTRACT. This Agreement is not an employment contract. Nothing contained herein shall guarantee or assure Executive of continued employment by Corporation or Bank. Rather, Corporation’s and Bank’s obligations to Executive hereunder shall arise only if Executive continues to be employed by Corporation and Bank in Executive’s present or in a higher capacity and then only in the event the conditions described herein for payment to Executive have been met.

 

WAIVER. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by Executive and an executive officer specifically designated by the Boards of Directors of Corporation and Bank. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

 

 

 

 

 

ATTORNEY’S FEES AND COSTS. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, each party shall bear their own attorney’s fees, costs, and necessary disbursements.

 

ENTIRE AGREEMENT. This Agreement supersedes any and all understandings and agreements, either oral or in writing, between the parties with respect to any severance that may become due as a result of or in connection with a Change in Control. This Agreement contains all the covenants and agreements between the parties with respect to any severance that may become due as a result of or in connection with a Change in Control.

 

SUCCESSORS; BINDING AGREEMENT. This Agreement shall be binding upon and inure to the benefit of Corporation, Bank and Executive, and their respective successors, assigns, heirs and personal representatives.

 

VALIDITY. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

 

APPLICABLE LAW. This Agreement shall be governed by and construed in accordance with the domestic, internal laws of the Commonwealth of Pennsylvania, without regard to its conflicts of laws principles.

 

HEADINGS. The section headings of this Agreement are for convenience only and shall not control or affect the meaning or construction or limit the scope or intent of any of the provisions of this Agreement.

 

 

 

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

 

	
ATTEST:
	  	
QNB CORP.

	
 

 

/s/ Ann B. Gaspar             
	  	
 

 

/s/ David W. Freeman                       

David W. Freeman, President and CEO

	  	  	  
	
ATTEST:
	  	
QNB BANK

	
 

 

/s/ Ann B. Gaspar             
	  	
 

 

/s/ David W. Freeman                       

David W. Freeman, President and CEO

	  	  	  
	
WITNESS:
	  	
EXECUTIVE:

	
 

 

/s/ Ann B. Gaspar             
	  	
 

 

/s/ Christopher T. Cattie                   

Christopher T. Cattie

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00255-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00255-of-00352.parquet"}]]