Document:

Exhibit 10.25

 

RETIREMENT AGREEMENT

AND GENERAL RELEASE

 

READ IT CAREFULLY

 

NOTICE TO WILLIAM L. HUMMEL:

 

This is a very important legal document, and you should carefully review and understand the terms and effect of this document before signing it. By signing this Retirement Agreement and General Release (“Agreement”), you are agreeing to completely release Riverview Financial Corporation and Riverview Bank and their subsidiaries, affiliates, directors and officers. Therefore, you should consult with an attorney before signing this Agreement. You have twenty one (21) days from the day of receipt of this document to consider the Agreement. The twenty one (21) days will begin to run on the day after receipt. If you choose to sign the Agreement, you will have an additional seven (7) days following the date of your signature to revoke the Agreement, and the Agreement shall not become effective or enforceable until the revocation period has expired.

 

This Retirement Agreement and General Release (“Agreement”) by and among William L. Hummel (“Employee”), Riverview Financial Corporation (the “Corporation”) and Riverview Bank (the “Bank”) and each of their subsidiaries and affiliates is made this 27th day of March 2012.  In this Agreement, the “Corporation” shall at all times include any and all related entities, corporations, subsidiaries, and affiliates.

 

WHEREAS, Employee serves as a member of the Board of Directors of the Corporation and the Bank and as an employee of the Bank pursuant to an Employment Agreement dated June 18, 2008 (“Employment Agreement”);

 

WHERAS, Employee wishes to retire and resign as a director of the Corporation and the Bank and as an employee of the Bank;

 

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WHEREAS, the Corporation and Employee wish to enter into this Release Agreement in an effort to amicably terminate their relationship and to set forth their mutual obligations regarding Employee’s Retirement; and

 

WHEREAS, the Corporation and the Bank recognize the Employee’s many years of loyal and dedicated service.

 

In consideration of the foregoing preambles, the mutual covenants and agreements set forth below and other valuable consideration, the sufficiency of which is hereby acknowledged, intending to be legally bound hereby, the parties hereto agree as follows:

 

1.         Separation of Service; Payments to Employee

 

a.         Separation of service with the Bank and resignation from the Boards of Directors of the Corporation and the Bank shall be effective March 6, 2012. Employee confirms his separation of service with the Corporation, the Bank and all of their subsidiaries, affiliates, joint ventures, partnerships, or any other business enterprises, as well as from any office or position with any trade group or any charitable organization which he holds on behalf of the Corporation or the Bank. Employee hereby confirms his conclusion of service from any and all of the Corporation’s, the Bank’s, their subsidiaries’ and affiliates’ Boards of Directors.

 

b.         In consideration of Employee complying with the terms of this Agreement and provided that Employee continuously and at all times complies with all of his obligations pursuant to this Agreement, the Bank shall pay Employee the following severance package:

 

i.          The  Bank  shall  pay an amount equal to Employee’s salary through March 6, 2012  minus all appropriate withholdings and/or deductions on the first regularly scheduled pay date following the termination of Employee’s employment;

 

ii.         The Bank shall continue to comply with its obligations under the Employee’s Supplement Executive Retirement Plan dated January 1, 2003;

 

iii.        The Bank shall pay Employee seventy-five thousand dollars ($75,000) in thirty-six (36) equal monthly installments minus all appropriate withholdings and/or deductions, starting within thirty (30) days after the expiration of the Revocation Period as defined in Paragraph 9.

 

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iv.        The Bank shall pay Employee’s COBRA premium until the earlier of Employee’s 65th birthday or until Employee is no longer eligible for COBRA.

 

c.         Employee acknowledges and agrees that the benefits to be provided to Employee by the Bank pursuant to this Paragraph are, in significant and substantial part, in addition to those benefits to which he is already or would otherwise be entitled.

 

d.         Employee acknowledges that he will not be entitled to benefits under the Riverview Bank Director Emeritus Agreement entered into on November 16, 2011 (“Director Emeritus Agreement”) and not entitled to any additional payments under the Employment Agreement.

 

2.         Costs, Including Attorneys’ Fees.  Employee understands and agrees that the Corporation shall not be liable to Employee and/or any present or former attorney for any costs, expenses, or attorneys’ fees of any kind or amount.  Furthermore,  Employee expressly agrees that he is not to be considered to be the “prevailing” or “successful” party within the meaning of any statute, rule, or other law.

 

3.         Release by Employee.  In consideration of the payments and severance benefits set forth in this Agreement, which consideration and severance benefits Employee was not otherwise entitled to receive, and intending to be legally bound, Employee, and all other persons or entities claiming with, by, or through his, hereby irrevocably and unconditionally releases, waives and forever discharges the Corporation, the Bank and their predecessors, successors, representatives, affiliates, subsidiaries, parents, partners and all of their present and past shareholders, directors, officers, agents, employees and attorneys, and all other persons or entities who could be said to be jointly or severally liable with them, or acting by, through, under or in concert with any of them (individually and collectively “the Releasees”) from any and all debts, liabilities, claims, actions, causes of action, rights, judgments, obligations, demands, or suits of any and whatsoever, presently asserted or not asserted, accrued or unaccrued, known or unknown, existing or contingent, apparent or concealed (“Claims”) that Employee had, now has, or may have or could claim to have against the Releasees, from the beginning of time to the date of execution of this Agreement, including, but not limited to all Claims and rights in any way arising from, might arise from, or based upon Employee’s employment with the Corporation or the Bank, or which relate in any way to the termination of Employee’s employment with the Corporation or the Bank, the termination of the Employment Agreement, the Director Emeritus

 

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Agreement and also including Title VII of Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Rehabilitation Act of 1973, the Pennsylvania Human Relations Act, the Federal Age Discrimination in Employment Act, the Federal Older Workers Benefit Protection Act, any Whistleblower provision of any statute or law, the Employee Retirement Income Security Act of 1974, and any other statute, regulation, or law or amendments thereto.

 

Employee further agrees that the payments and benefits described in this Agreement shall be in full satisfaction of any and all claims for payments or benefits, whether express or implied, that Employee may have against the Releasees arising out of his employment relationship, or his service as an Employee, director, officer, or employee of the Corporation or the Bank and the termination thereof, including payment under the Employment Agreement.

 

The Parties understand that by this Release, Employee is not giving up or waiving any claims that he may have to enforce this Agreement, for any claims for accrued and vested benefits under any employee benefit plan in which Employee has a vested interest, and/or for any claims which by law he cannot waive.

 

4.         No Admission of Wrongdoing.  The Parties agree that this Agreement is not to be construed as a finding or admission of wrongdoing or liability or illegal or unethical conduct by any party. Nothing in this Agreement shall constitute precedent or evidence in any investigation, proceeding, or trial, with the exception that this Agreement shall be admissible evidence in any proceeding to enforce its terms or secure a remedy for breach of its terms.

 

5.         Confidential Information.

 

a.         Employee agrees that he will not communicate the terms and conditions of this Agreement or the negotiations preceding it to any persons other than his spouse, attorneys and tax advisors.

 

b.         Employee hereby acknowledges that as a result of his employment, he has had access to, obtained, or developed certain confidential, nonpublic, and/or legally privileged information, which includes, but is not limited to: information relating to the Corporation’s and the Bank’s past, present or future business activities; trade secrets; financial information; technical systems; new product development; acquisition prospects and strategies; compliance matters; information contained in personnel files and medical files; the business operations; the internal structure of the Corporation and the Bank; the names of and any and all information, including personal consumer information requiring

 

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protection under federal financial privacy laws, respecting the past, present and prospective customers or clients of the Corporation and the Bank; target customers or markets; past, present or future research done by the Corporation and the Bank respecting the business or operations of the Corporation and the Bank; financial information; vendor or provider contracting arrangements; funding sources, services; systems; methods of operation; sales and marketing information; methods; procedures; referral sources, referral source information, or referral lists; revenues; costs; expenses; operating data; reimbursements; contracts; contract forms; arrangements; plans; prospects; correspondence; memoranda and office records; electronic and data processing files and records; identities, addresses, telephone numbers, electronic mail addresses, or other methods of contacting persons who might use or currently use the services of or who have been customers of the Corporation (“Information”).  All such Information, marketing methods, supplies, files (closed or pending), literature, policies and procedure manuals, as well as any information regarding any and all aspects of the Corporation and the Bank, or being used by the Corporation and the Bank, are the sole and confidential property of the Corporation and the Bank and shall be treated as confidential. Employee agrees to hold inviolate, not to disclose, and to keep secret all such Information and will not for any reason or purpose use, permit to be used, or disclose to any party any Information.

 

6.         Cooperation and Non-Disparagement.  Employee agrees that he will not disparage or make derogatory comments about the Corporation or the Bank, its subsidiaries and affiliates, the Corporation’s or the Bank’s present and former officers, directors, employees, agents, or attorneys, or their business practices.

 

Employee further agrees that he will not attend the Corporation’s Annual Shareholders meeting or any other shareholders meeting and shall not grant a proxy to any person other than the Corporation or its management to attend the meeting.

 

7.         Injunctive Relief.  Employee agrees that any breach of the agreements and representations set forth in paragraphs 5 and 6 will cause the Releasees irreparable harm, that such injury cannot be remedied adequately by the recovery of monetary damages, that upon such a breach any or all of the Releasees shall be entitled, in addition to and not in lieu of any and all other remedies, to injunctive or other equitable relief without the posting of any bond or

 

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undertaking and that such injunctive and/or equitable relief will not work a hardship on him. Employee further agrees that in any and/or all such circumstances, all of his obligations under this Agreement will remain in full force and effect.

 

8.         Acceptance Period.

 

The following notice is included in this Agreement as required by the Older Workers Benefit Protection Act:

 

You have up to twenty-one (21) days from the date of receipt of this release to accept the terms of this release, although you may accept it at any time within those twenty-one (21) days. You are advised to consult with an attorney regarding this release.

 

The twenty-one (21) day period will begin to run on the day after Employee receives this Agreement. It will then run for a full twenty-one (21) calendar days and expire at the end of the twenty-first day (the “Acceptance Period”). In order to accept this Agreement, Employee must sign his name and date his signature at the end of this letter and return it to the Corporation via Bybel Rutledge LLP at the address provided in Paragraph 14. If the twenty-first day of the Acceptance Period falls on a Saturday, a Sunday, or a legal holiday, the Corporation’s receipt of his acceptance by the close of business on the next business day immediately following such Saturday, Sunday or legal holiday will be sufficient to effect a timely acceptance of this Agreement.

 

9.         Revocation Period.  Employee has the right to revoke this Agreement at any time within seven (7) days from the date Employee signs and delivers this Agreement to the Corporation (the “Revocation Period”), and this Agreement will not become effective and enforceable until the Revocation Period has expired. (NOTE: The Revocation Period will begin on the day after the day on which Employee has signed this Agreement and delivered it to the Corporation and, as indicated by the date Employee affixes to his signature at the end of this Agreement.  It will then run for seven calendar days and expire at the end of the seventh day.)  In order to revoke this Agreement, Employee must notify the Corporation in writing of his decision to revoke the Agreement. Employee must ensure that the Corporation (via Bybel Rutledge LLP at the address indicated in Paragraph 14 below) receives his written notice of revocation at its office in Lemoyne, Pennsylvania within the aforementioned Revocation Period. If the seventh day of the Revocation Period falls on a Saturday, a Sunday, or a legal holiday, the Corporation’s

 

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receipt of his notice of revocation by the close of business on the next business day immediately following such Saturday, Sunday or legal holiday will be sufficient to effect a timely revocation of this Agreement. Provided that the Revocation Period expires without his having revoked this Agreement, this Agreement shall take effect on the next day following the Revocation Period, and such next day shall constitute the Effective Date hereof.

 

10.       Corporation Not Employee’s Advisor.  The Corporation makes no representation or warranty, express or implied, to Employee regarding the treatment of this Agreement or any payments Employee may receive by virtue of or in connection with any provision of this Agreement, under state, federal, or local laws pertaining to income or other taxation, nor does the Corporation provide to Employee any advice regarding the financial, investment, or legal desirability of his entering into this Agreement or making any elections or granting any releases referred to herein; and Employee acknowledges that it is and has been his sole and entire responsibility to explore any such aspects of this Agreement with attorneys and/or other advisors of his own selection, in connection with both his decision to enter into this Agreement and any decisions or elections which Employee may subsequently make in relation to any of the subject matter of this Agreement. The Corporation makes no representation as to the applicability of Internal Revenue Code Section 409A to the payments under this Agreement or the Employment Agreement.

 

11.       Agreement Freely and Voluntarily Entered Into.  Employee warrants and represents that he has signed this Agreement after the opportunity for review and consultation with legal counsel of his choice and that he understands this Agreement and signs it freely, knowingly and voluntarily, without any legal reservation and fully intending to be legally bound hereby.

 

12.       Representations to the Corporation.  In connection with his entering into this Agreement, and as an inducement for the Corporation to enter into this Agreement, Employee hereby represents the following matters to the Corporation:

 

a.         That Employee has carefully read and fully understands all of the provisions of this Agreement which sets forth the entire agreement between Employee and the Corporation, and that Employee has not relied upon any representations or statements, written or oral, not set forth in this document; and

 

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b.         That Employee has had such time as Employee deemed necessary to review, consider, and deliberate as to the terms of this Agreement.

 

13.       Severability.  Should any provision(s) of this Agreement be determined, in a proceeding to enforce or interpret this Agreement, to be invalid or unenforceable, then, provided that the provision(s) deemed to be invalid or unenforceable do not constitute all or substantially all of the undertakings by either Employee or the Corporation, the remainder of this Agreement shall continue in full force and effect.

 

14.       Notices.  Any notice, request, claim, demand, document, or other communication hereunder to any party shall be effective upon receipt (or refusal of receipt) and shall be in writing and delivered personally or sent by telex, telecopy, or certified or registered mail, postage prepaid, as follows:

 

A.        If to Corporation:

Bybel Rutledge LLP

Attn: Renee Lieux

1017 Mumma Road, Ste 302

Lemoyne, PA 17043

 

B.        If to Employee:

Solomon Z. Krevsky, Esquire

20 Erford Road, Ste 300A

Lemoyne, PA 17043

 

Or to any other address as any party shall have specified for itself by notice in writing to the other party.

 

15.       Choice of Law.  This Agreement shall be governed by, construed under and enforced pursuant to the laws of the Commonwealth of Pennsylvania.

 

16.       Complete Written Settlement.  This Agreement expresses a full and complete settlement of all disputes between Employee and the Releasees. Employee agrees that there are absolutely no agreements or reservations relating to termination of Employee’s employment and Employee’s release of the Releasees that are not clearly expressed in writing herein. This Agreement may not be modified except in writing signed by all parties hereto. Employee further agrees that the payments and benefits described herein are all he and/or his counsel are ever to receive with regard to Employee’s retirement and execution of this Release, and that the execution hereof is with the full knowledge that this Agreement covers all possible claims.

 

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17.       Binding on Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors and assigns.

 

18.       Counterparts.  This Agreement may be executed in multiple counterparts, and shall be fully valid, legally binding and enforceable whether executed in a single document or in such counterparts.

 

IN WITNESS WHEREOF, the parties have executed this Complete Settlement Agreement and General Release on the date first written above.

 

	
WITNESS:
    	
 
    	
Employee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Solomon Z. Krevsky
    	
 
    	
/s/ William L. Hummel
    
	
 
    	
 
    	
William L. Hummel
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date signed by Employee:     3/27/12                                   
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
RIVERVIEW FINANCIAL CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Renee Lieux
    	
 
    	
By:
    	
/s/ Robert M. Garst
    
	
 
    	
 
    	
 
    	
Robert M. Garst
    
	
 
    	
 
    	
 
    	
Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
RIVERVIEW BANK
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Renee Lieux
    	
 
    	
By:
    	
/s/ Robert M. Garst
    
	
 
    	
 
    	
 
    	
Robert M. Garst
    
	
 
    	
 
    	
 
    	
Chief Executive Officer
    

 

9Exhibit 10.26

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS AGREEMENT is made as of the 17th day of December 2012, between Riverview Bank with principal offices at 3rd and Market Streets, Halifax, PA 17032, (the “Bank”) and Terry L. Hoppes, a Pennsylvania resident (hereinafter referred to as the “Executive”).

 

WITNESSETH:

 

WHEREAS, the Bank is the wholly owned subsidiary of Riverview Financial Corporation;

 

WHEREAS, Executive has been engaged in the business of wealth management, including but not limited to financial planning including retirement planning, education funding planning, life insurance, fixed annuities, variable life, variable annuities, employee benefit programs, investment management, and long term care planning (“Business”);

 

WHEREAS, Bank has purchased certain assets of the Executive pursuant to an asset purchase agreement by and between the Bank and Executive d/b/a Hoppes Financial Services dated December 17, 2012 (“Asset Purchase Agreement”);

 

WHEREAS, the continued involvement by the Executive in a business in competition with the Bank would diminish the value of the Business and the assets purchased by the Bank; and

 

WHEREAS, Bank desires to retain the Executive for the period and upon the terms and conditions hereinafter set forth;

 

NOW THEREFORE, in consideration of the mutual covenants set forth below and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties agree as follows:

 

I.  TERM OF EMPLOYMENT

 

1.         The Bank hereby employs the Executive as a Producer and President of Wealth Management Division as set forth below, and the Executive hereby accepts this employment and agrees to render such services to the Bank on the terms and conditions as set forth in this Agreement. This Agreement shall be for a two (2) year period (the “Employment Period”) beginning on the Effective Time, as defined in the Asset Purchase Agreement, and if not previously terminated pursuant to the terms of this Agreement, shall end two (2) years later (the “Initial Term”). The Employment Period shall be extended automatically for one (1) additional year on the first anniversary date of this Agreement (“Renewal Date”) and then on each anniversary of the Renewal Date of this Agreement thereafter, unless the Bank or the Executive gives contrary written notice to the other thirty (30) days prior to the anniversary date so that upon such anniversary date if notice had not been previously given as provided in this Section 1.1, the Employment Period shall continue for a two (2) year period thereafter. References in the Agreement to “Employment Period” shall refer to the Initial Term of this Agreement and any

 

 

extensions to the Initial Term. It is the intention of the parties that this Agreement be “Evergreen” unless (i) either party gives written notice to the other party of his or its intention not to renew this Agreement as provided above or (ii) this Agreement is terminated pursuant to Section VI of this Agreement.

 

2.         During the term of this Agreement, the Executive shall perform such executive services for the Bank as are consistent with his title and as are assigned to him by the Bank’s Chief Executive Officer (“CEO”), President, Chief Operating Officer, or their designee.

 

3.         During the term of this Agreement, the Executive shall devote his best efforts, including all of his business time, attention and energies exclusively to the business interests of the Bank; notwithstanding the foregoing, Executive shall be considered a dual employee of both the Bank and the broker/dealer with which the Bank has entered into a securities brokerage services agreement.

 

4.         Executive agrees to maintain his current professional licenses, including but not limited to insurance producer and investment advisor representative.

 

II.  COMPETITIVE ACTIVITIES

 

1.         The Executive hereby acknowledges and recognizes the highly competitive nature of the business of the Corporation and the Bank and accordingly agrees that for time period provided in Section IL 3, the Executive shall not, except as otherwise permitted in writing by the Bank:

 

(a)   be engaged, directly or indirectly, either for his own account or as agent, consultant, employee, partner, officer, director, proprietor, investor (except as an investor owning less than 5% of the stock of a publicly owned company) or otherwise of any person, firm, corporation or enterprise engaged in (1) the Business, (2) the banking (including bank holding company) or financial services industry, or (3) any other activity in which the Corporation or the Bank or any of their subsidiaries are engaged during the Employment Period in Pennsylvania, Arizona, Delaware, Florida, Georgia, Massachusetts, New Jersey, South Carolina, West Virginia or any other state in which Executive does business while employed by the Bank (“Non-Competition Area”);

 

(b)   provide financial or other assistance to any person, firm, corporation, or enterprise engaged in (1) the Business, (2) the banking (including bank holding company) or financial services industry, or (3) any other activity in which the Corporation or the Bank or any of their subsidiaries are engaged during the Employment Period, in the Non-Competition Area;

 

(c)   directly or indirectly solicit persons or entities who were customers or referral sources of the Corporation, the Bank or their subsidiaries within six (6) months of the Executive’s termination of employment, to become a customer or referral source of a person or entity which competes with the Corporation, the Bank or their subsidiaries;

 

 

(d)   directly or indirectly solicit employees of the Corporation, the Bank or their subsidiaries who were employed within two (2) years of the Executive’s termination of employment to work for anyone other than the Corporation, the Bank or their subsidiaries; or

 

(e)   make derogatory comments regarding any products or services provided by or persons associated with the Bank.

 

2.         It is expressly understood and agreed that, although the Executive, the Corporation, and the Bank consider the restrictions contained in Section II hereof reasonable for the purpose of preserving for the Corporation and the Bank and their subsidiaries their good will and other proprietary rights, if a final judicial determination is made by a court having jurisdiction that the time or territory or any other restriction contained in Section Ili hereof is an unreasonable or otherwise unenforceable restriction against the Executive, the provisions of Section II.1 hereof shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such other extent as such court may judicially determine or indicate to be reasonable.

 

3.         The provisions of this Section II shall be applicable, commencing on the date of this Agreement and ending two (2) year after the date of the Executive’s termination of employment by either party.

 

4.         Notwithstanding anything contained herein to the contrary, in the event that the Bank terminates this Agreement or the Executive terminates his employment all of the obligations of this Section II shall remain in effect and survive the termination of this Agreement.

 

III. COMPENSATION

 

The Bank will compensate the Executive for the Executive’s services during the term of the Agreement at an Annual Base Salary of One Hundred Thousand Dollars ($100,000) per year (“Annual Base Salary”), payable at the same times as salaries are payable to other executive employees. The Bank may from time to time increase the Executive’s Annual Base Salary, and any and all such increases shall be deemed to constitute amendments to this Section to reflect the increased amounts

 

For services performed by Executive under this Agreement, Bank may, from time to time, pay a bonus or bonuses to Executive as Bank, in its sole discretion, deems appropriate or as the parties mutually agree pursuant to a written schedule which shall be attached hereto as Exhibit A and incorporated herein by reference. The payment of any such bonuses shall not reduce or otherwise affect any other obligations of Bank to Executive provided for in this Agreement.

 

 

IV.  PARTICIPATION IN RETIREMENT AND MEDICAL PLANS

LIFE INSURANCE AND DISABILITY

 

The Executive shall be allowed to participate, if eligible and if he qualifies, in any employee benefit plan of the Bank relating to pension, profit-sharing or other retirement benefits and health or medical coverage or reimbursement plans that the Bank may adopt for the benefit of its employees, pursuant to the terms of the respective plan.

 

V. TERMINATION

 

1.         In the event the Executive’s employment is terminated, the Executive’s right to compensation and other benefits under this agreement shall be as set forth hereinafter in this Section V.

 

2.         If the Executive’s employment with the Bank is terminated by the Bank for any reason other than Cause as defined in Section V.5, then the Executive shall be entitled to an amount equal to one (1) times the Executive’s Annual Base Salary as defined in Section Ill of this Agreement, minus applicable taxes and withholdings payable in twelve (12) equal monthly installments beginning within thirty (30) days of the Executive’s separation of service as defined in Code Section 409A. In addition, the Bank shall provide the Executive with continuation of coverage for its benefit plans for twelve (12) months after the Executive’s separation of service if allowable under the plan and applicable law.

 

3.         Any termination of the Executive’s employment by the Bank or by the Executive shall be communicated by written notice of termination to the other party by means of United States certified mail, return receipt requested, pursuant to Section VI.2 of this Agreement. For purposes of this Agreement, a “Notice of Termination” shall (1) indicate the specific termination provision in the Agreement relied upon; (ii) set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated; and (iii) specify a date of termination.

 

4.         The Executive shall not be required to mitigate the amount of any payment provided under this Agreement by seeking employment or otherwise. The amount of payment or the benefit provided under this agreement shall not be reduced by any compensation earned by the Executive as a result of employment by another employer or by reason of the Executive’s receipt of or right to receive any retirement or other benefit after the date of termination of employment.

 

5.         Termination for Cause. The Board of Directors of the Bank may terminate the Executive’s employment at any time for cause. For purposes of this agreement “Cause” includes

 

(a) the 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;

 

 

(b) the Executive’s willful failure to follow the good faith lawful instructions of the President, CEO, or their designee with respect to the operations of Corporation and Bank;

 

(c) the Executive’s willful failure to perform the Executive’s duties to the Bank;

 

(d) the Executive’s intentional violation of the provisions of this Agreement;

 

(e) dishonesty or gross negligence of the Executive in the performance of his duties;

 

(f) conduct on the part of the Executive that brings public discredit to the Corporation or the Bank;

 

(g) the Executive’s breach of fiduciary duty involving personal gain;

 

(h) the Executive’s willful violation of any law, rule or regulation governing broker-dealers, banks or bank officers or any final cease and desist order issued by a bank regulatory authority;

 

(i) the Executive’s unlawful discrimination, including harassment, against employees, customers, business associates, contractors or visitors of the Corporation or the Bank;

 

(j) the Executive’s theft or abuse of the Corporation or the Bank’s property or the property of customers, employees, contractors, vendors or business associates of the Corporation or the Bank;

 

(k) any final removal or prohibition order to which the Executive is subject, by a federal or state governmental agency;

 

(l) any act of fraud or misappropriation by the Executive; or

 

(m) failure to maintain his professional licenses which he holds at the time of signing this Agreement and any such licenses procured thereafter.

 

If this Agreement is terminated for Cause, the Executive’s rights under this Agreement shall cease as of the effective date of such termination and the Bank shall have no further obligations under this Agreement.

 

VI. MISCELLANEOUS

 

1.         This Agreement may not be modified, changed, amended, extended, or altered except in writing signed by the Executive or by his duly authorized representative, and by a duly authorized officer of the Bank.

 

 

2.         All notices given or required to be given shall be in writing, sent by United States certified mail, return receipt requested, postage prepaid, to the Executive (or to the Executive’s spouse or estate upon the Executive’s death) at the Executive’s last known address, and to the Bank at its principal office.  All such notices shall be effective when deposited in the mail in the manner specified in this Section VI.2. Either party by written notice may change or designate the place for receipt of all such notices.

 

3.         This Agreement amends and supersedes all previous agreements regarding employment between the Executive, the Corporation, and the Bank.  Notwithstanding the foregoing, it is understood that the agreements and covenants made hereby are independent from the provisions in the Asset Purchase Agreement, the agreements and covenants made hereby are supported by separate and adequate consideration.

 

VII. SUCCESSORS

 

This Agreement shall inure to the benefit of and be binding upon the Executive, and, to the extent applicable, his heirs, assigns, executors, personal representatives, and the Bank, its successors, and assigns, including, without limitation, any person, partnership, or corporation which may acquire all or substantially all of the Bank’s assets and business, or with into which the Bank may be consolidated or merged. This provision shall apply in the event of any subsequent merger, consolidation, transfer.

 

VIII. APPLICABLE LAW

 

This Agreement shall be governed in all respects and be interpreted by and under the laws of the Commonwealth of Pennsylvania, except to the extent that such law may be preempted by applicable federal law, in which event this Agreement shall be governed and interpreted by and under federal law.

 

IX. SEVERABILITY

 

If any provision in this Agreement is held to be invalid, void, or unenforceable by an arbitrator, the remaining provisions nevertheless shall continue in full force and effect.

 

X. ARBITRATION

 

Each party agrees that all disputes, disagreements and questions of interpretation concerning this Agreement, are to be submitted for resolution, in Marysville, Pennsylvania, to the American Arbitration Association (the “Association”) in accordance with the Association’s National Rules for the Resolution of Employment Disputes or other applicable rules then in effect (“Rules”), except for the enforcement of the provisions of Section II which may be litigated in court, including an action for injunctive or other relief, The Bank or the Executive may initiate an arbitration proceeding at any time by giving notice to the other in accordance with the Rules. The Bank and the Executive may, as a matter of right, mutually agree on the appointment of a particular arbitrator from the Association’s pool. The arbitrator shall not be bound by the rules of evidence and procedure of the courts of the Commonwealth of

 

 

Pennsylvania but shall be bound by the substantive law applicable to this Agreement, The decision of the arbitrator, absent fraud, duress, incompetence or gross and obvious error of fact, shall be final and binding upon the parties and shall be enforceable in courts of proper jurisdiction, Following written notice of a request for arbitration, the Bank and the Executive shall be entitled to an injunction restraining all further proceedings in any pending or subsequently filed litigation concerning this Agreement.

 

XI.  CODE SECTION 409A

 

1.         If  when the Executive’s employment terminates, the Executive is a “specified employee,” as defined in Code Section 409A(a)(2)(B)(i), then despite any provision of this Agreement or other plan or agreement to the contrary, the Executive will not be entitled to the payments until the earliest of; (a) the date that is at least six months after the Executive’s separation from service, as defined in Code Section 409A, for reasons other than the Executive’s death, (b) the date of the Executive’s death, or (c) any earlier date that does not result in additional tax or interest to the Executive under Code Section 409A. As promptly as possible after the end of the period during which payments are delayed under this provision, the entire amount of the delayed payments shall be paid to the Executive in a single lump sum with any remaining payments to commence in accordance with the terms of this Agreement or other applicable plan or agreement.

 

2.         Any payments made pursuant to this Agreement, to the extent of payments made from the date of termination through March 15th of the calendar year following such date, are intended to constitute separate payments for purposes of Treas. Reg. §1.409A-2(b)(2) and thus payable pursuant to the “short-term deferral” rule set forth in Treas. Reg. §1.409A-1(b)(4); to the extent such payments are made following said March 15th, they are intended to constitute separate payments for purposes of Treas. Reg. §1.409A-2(b)(2) made upon an involuntary termination from service and payable pursuant to Treas. Reg. §1.409A-1(b)(9)(iii), to the maximum extent permitted by said provision.

 

3.         The parties hereto intend that any and all post-employment compensation under this Agreement satisfy the requirements of Section 409A or an exception or exclusion therefrom to avoid the imposition of any accelerated or additional taxes pursuant to Section 409A. Any terms riot specifically defined shall have the meaning as set forth in Section 409A,

 

4.         Notwithstanding the foregoing, no payment shall be made pursuant to Section V unless such termination of employment is a “separation of service” as defined in Code Section 409A.

 

 

IN WITNESS WHEREOF, the parties have duly executed this Agreement a of the day and year first above written.

 

	
ATTEST:
    	
 
    	
RIVERVIEW BANK
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Brett Fulk
    	
 
    	
By:
    	
  /s/ Robert   M. Garst
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
WITNESS
    	
 
    	
EXECUTIVE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ James C. Bohorad 
    	
 
    	
  /s/ Terry   L. Hoppes
    
	
 
    	
 
    	
  Terry L.   Hoppes

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