Document:

ruth-ex1029_286.htm

Exhibit 10.29

 

 

SEPARATION, TRANSITION, AND RELEASE OF CLAIMS AGREEMENT

 

This Separation, Transition, and Release of Claims Agreement (the “Agreement”) is made as of the Agreement Effective Date (as defined in Section 6 below) by and between Ruth’s Hospitality Group, Inc. (the “Company”) and Arne G. Haak (“Mr. Haak”) (together, the “Parties”).  

 

WHEREAS, the Company and Mr. Haak are parties to the Terms of Employment/Letter of Understanding and Salary Continuation Agreement dated as of August 8, 2011 (the “Employment Agreement”), pursuant to which Mr. Haak currently serves as Executive Vice President and Chief Financial Officer; 

WHEREAS, Mr. Haak is separating from the Company and the Parties wish to establish mutually agreeable terms for such separation and a smooth and orderly transition of his responsibilities as Chief Financial Officer to his successor; 

WHEREAS, the Parties agree that the payments, benefits and rights set forth in this Agreement shall be the exclusive payments, benefits and rights due to Mr. Haak, and the Parties acknowledge and agree that Mr. Haak shall not be eligible to receive any other payments or benefits in connection with his separation from employment. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:  

	
1.
	
Separation Date; Transition Period; Equity.  Provided Mr. Haak signs and returns this Agreement on or before November 26, 2020 and does not revoke his acceptance of this Agreement, the following terms shall apply:

	
 
	
a.
	
Mr. Haak’s effective date of separation will be March 15, 2021 (the “Separation Date”).  As of the Separation Date, Mr. Haak will resign from any and all positions he holds as of such date as an officer or employee of the Company or any of its subsidiaries or affiliates, and further agrees to execute and deliver any documents reasonably necessary to effectuate such resignations, as requested by the Company.  

	
 
	
b.
	
Mr. Haak will, through November 29, 2020, continue to serve as Executive Vice President and Chief Financial Officer pursuant to the terms of the Employment Agreement.  As of November 30, 2020, Mr. Haak will transition from his position as Executive Vice President and Chief Financial Officer to the role of Strategic Advisor, and will provide transitional support to the successor Chief Financial Officer as the Company’s CEO and Board of Directors deem appropriate.  The period from November 30, 2020 through the Separation Date will be a transition period (the “Transition Period”), during which Mr. Haak will use his best efforts to professionally, timely and cooperatively perform his duties as Strategic 

1

 

	
 
		
Advisor and will provide transitional support to the successor Chief Financial Officer, as well as such additional transition duties as may be requested by and at the direction of the Chief Executive Officer and the Board (the “Transition Duties”).  During the Transition Period, Mr. Haak shall not engage in any business or perform any services in any capacity that would, in the reasonable judgment of the Company, interfere with the full and proper performance by Mr. Haak of his duties.  

 

	
 
	
c.
	
As of November 29, 2020, the Employment Agreement will terminate and be of no further force or effect other than Sections 8 and 9 thereof, which shall remain in full force and effect in accordance with their terms (the “Surviving Sections”).  
During the Transition Period, Mr. Haak will remain an employee of the Company, and will receive a base salary at the annualized rate of $375,000, less all applicable taxes and withholdings, to be paid in accordance with the Company’s regular payroll practices.  Mr. Haak shall, during the Transition Period, continue to participate in the Company’s benefit plans (pursuant to the terms and conditions of such plans).  

 

	
 
	
d.
	
On his last day of employment, Mr. Haak shall be paid all unpaid base salary earned through such date, including any amounts for accrued but unused vacation time (e.g., four (4) weeks less any vacation taken from August 1, 2020 through his last day), and shall be reimbursed for any business expenses properly incurred through such date for which he has sought reimbursement (together, the “Accrued Obligations”).  All salary payments from the Company will cease as of Mr. Haak’s last day of employment and any benefits Mr. Haak had as of such date under Company-provided benefit plans, programs, or practices will terminate, except as required by federal or state law and as set forth in Section 2, below.

	
 
	
e.
	
Pursuant to the 2020 Home Office Bonus Program for Ruth’s Hospitality Group, Inc. (the “2020 Bonus Program”), to the extent FY2020 EBITDA is less than the prior year EBITDA, no bonus will be awarded for FY2020 and Mr. Haak will not be entitled to receive any bonus compensation.  However, due to the extraordinary circumstances brought about by the COVID-19 pandemic, to the extent the Board of Directors of the Company and/or the Compensation Committee implements an alternative discretionary bonus for its executives for FY2020, Mr. Haak shall receive such a discretionary bonus, to be paid in an amount and manner determined by the Compensation Committee, provided that any discretionary bonus awarded to Mr. Haak for FY2020 shall be no less than the ratio of said discretionary bonus to current target bonus utilized in the calculation of any FY2020 discretionary bonus awarded to other senior executives of the Company.  If Mr. Haak is not awarded a discretionary bonus for FY2020 pursuant to this section, or if the value of any discretionary bonus for FY2020 that may be awarded to Mr. Haak is less than fifty percent (50%) of his 2019 bonus compensation, Mr. Haak shall be awarded an additional bonus amount such that his total bonus compensation for FY2020 equals fifty percent (50%) of his 2019 bonus compensation, which bonus shall be paid in a lump sum no later than 

2

 

	
 
		
March 15, 2021.  For the avoidance of doubt, Mr. Haak shall not be eligible to receive any bonus amount for FY2021.

	
2.
	
Separation Benefits.  Provided that Mr. Haak (i) has timely signed and returned this Agreement and has not revoked his acceptance of this Agreement, (ii) signs and returns the Additional Release of Claims attached hereto as Attachment A (the “Additional Release”) on, but not before, the Separation Date and does not revoke the Additional Release, (iii) remains employed by the Company as a Strategic Advisor through the Separation Date, and (iv) complies with the terms of this Agreement, Mr. Haak shall receive the following separation benefits (the “Separation Benefits”):

 

	
 
	
a.
	
Base Salary Compensation.  The Company shall, between the Separation Date and the twelve (12)-month anniversary thereof, pay to Mr. Haak a monthly payment of $31,250.00, less all applicable taxes and withholdings (an amount equal in the aggregate to his prior twelve (12) months’ base salary). 

 

	
 
	
b.
	
Restricted Stock.  All restricted stock awards granted to Mr. Haak during his employment that are scheduled to vest on or before March 15, 2022 shall become vested and free from forfeiture effective as of the Separation Date.  It is acknowledged and understood that any shares of restricted stock that do not become vested pursuant to this Section shall be forfeited to the Company without any consideration and Mr. Haak shall no longer have any rights with respect thereto.

	
 
	
c.
	
COBRA.  Should Mr. Haak timely elect and be eligible to continue receiving group health insurance pursuant to the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company will, until the twelve (12)-month anniversary of the Separation Date (the “COBRA Contribution Period”), continue to pay the share of the premiums for such coverage to the same extent it was paying such premiums on his behalf immediately prior to the Separation Date.  The remaining balance of any premium costs during the COBRA Contribution Period, and all premium costs thereafter, shall be paid by Mr. Haak on a monthly basis for as long as, and to the extent that, he remains eligible for COBRA continuation.

 

	
 
	
d.
	
Life Insurance.   Should Mr. Haak timely convert his coverage under the company’s group life insurance policy to an individual policy following the Separation Date, the Company shall pay Mr. Haak an amount equal to the annual premium for said policy, less applicable taxes and withholdings, for the period March 15, 2021 through March 15, 2022. 

 

	
 
	
e.
	
Automobile Allowance.  The Company shall, until the twelve (12)-month anniversary of the Separation Date, pay to Mr. Haak a monthly automobile allowance of $900.00, less all applicable taxes and withholdings. 

 

	
3.
	
Release of Claims.  In exchange for the consideration set forth in this Agreement, which Mr. Haak acknowledges he would not otherwise be entitled to receive, Mr. Haak hereby 

3

 

		
fully, forever, irrevocably and unconditionally releases, remises and discharges the Company, its affiliates, subsidiaries, parent companies, predecessors, and successors, and all of their respective past and present officers, directors, stockholders, partners, members, employees, agents, representatives, plan administrators, attorneys, insurers and fiduciaries (each in their individual and corporate capacities) (collectively, the “Released Parties”) from any and all claims, charges, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature that Mr. Haak ever had or now has against any or all of the Released Parties up to the date on which Mr. Haak signs this Agreement, whether known or unknown, including, but not limited to, any and all claims arising out of or relating to Mr. Haak’s employment with, separation from, and/or ownership of securities of the Company, including, but not limited to, all claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Genetic Information Nondiscrimination Act of 2008, 42 U.S.C. § 2000ff et seq., the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq., the Worker Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. § 2101 et seq., the Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq., Executive Order 11246, Executive Order 11141, the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., all as amended; all claims arising out of the Florida Civil Rights Act of 1992, Fla. Stat. § 760.01 et seq., Fla. Stat. §§ 448.07 and 725.07 (Florida equal pay laws), Fla. Stat. § 250.481 (Florida military leave law), Fla. Stat. § 760.40 (Florida genetic testing law), and Fla. Stat. § 448.101 et seq. (Florida anti-retaliation law), all as amended; all common law claims including, but not limited to, actions in defamation, intentional infliction of emotional distress, misrepresentation, fraud, wrongful discharge, and breach of contract (including, without limitation, all claims arising out of or related to the Employment Agreement); all claims to any non-vested ownership interest in the Company or its affiliates, contractual or otherwise; all state and federal whistleblower claims to the maximum extent permitted by law; and any claim or damage arising out of Mr. Haak’s employment with and/or separation from the Company (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above; provided, however, that this release of claims shall not (i) prevent Mr. Haak from filing a charge with, cooperating with, or participating in any investigation or proceeding before, the Equal Employment Opportunity Commission or a state fair employment practices agency (except that Mr. Haak acknowledges that he may not recover any monetary benefits in connection with any such charge, investigation, or proceeding, and Mr. Haak further waives any rights or claims to any payment, benefit, attorneys’ fees or other remedial relief in connection with any such charge, investigation or proceeding), or (ii) deprive Mr. Haak of any rights Mr. Haak may have to be indemnified by the Company as provided in any agreement between the Company and Mr. Haak, including, but not limited to, this Agreement, or pursuant to the Company’s Certificate of Incorporation or By-Laws.

 

	
4.
	
Continuing Obligations.  Mr. Haak acknowledges and reaffirms his continuing confidentiality, non-competition, and non-solicitation obligations (the “Restrictive 

4

 

		
Covenant Obligations”), as set forth in the Surviving Sections, which survive his separation from employment and remain in full force and effect.

 

	
5.
	
Non-Disparagement.  Mr. Haak understands and agrees that, except as otherwise permitted by Section 12 below, he will not, in public or private, make any false, disparaging, negative, critical, adverse, derogatory or defamatory statements, whether orally or in writing, including online (including, without limitation, on any social media, networking, or employer review site) or otherwise, to any person or entity, including, but not limited to, any media outlet, industry group, key opinion leader, financial institution, or current or former employee, board member, consultant, shareholder, client or customer of the Company, regarding the Company or any of the other Released Parties, or regarding the Company’s business affairs, business prospects, or financial condition.  

 

	
6.
	
Time for Consideration and Revocation.  Mr. Haak acknowledges that he was initially presented with this Agreement on November 5, 2020 (the “Receipt Date”).  Mr. Haak understands that this Agreement shall be of no force or effect unless he signs and returns this Agreement on or before November 26, 2020 and does not revoke his acceptance of this Agreement within the seven day period after his execution (the eighth day following such execution, the “Agreement Effective Date”).  Mr. Haak further understands that he is not eligible to receive the Separation Benefits unless he timely signs, returns, and does not revoke the Additional Release. 

 

	
7.
	
Acknowledgements.  Mr. Haak acknowledges that he has been given at least twenty-one (21) days from the Receipt Date to consider this Agreement and the Additional Release (the “Consideration Period”), and that he is hereby advised to consult with an attorney of his own choosing prior to signing this Agreement and the Additional Release. Mr. Haak acknowledges that he is entering into this Agreement with full knowledge of his right to obtain such counsel, and that he is entering into this Agreement and the Additional Release on a voluntary basis and has relied upon no promises or representations by anyone except as contained in this document. Mr. Haak further acknowledges and agrees that any changes made to this Agreement or any attachments hereto following his initial receipt of this Agreement on the Receipt Date, whether material or immaterial, shall not re-start or affect in any manner the Consideration Period. Mr. Haak understands that he may revoke this Agreement and the Additional Release for a period of seven (7) days after he signs each document by notifying the Company in writing, and that neither this Agreement nor the Additional Release shall be effective or enforceable until the expiration of the document’s respective seven (7) day revocation period. Mr. Haak understands and agrees that by entering into this Agreement and Additional Release he will be waiving any and all rights or claims he might have under the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, and that he has received consideration beyond that to which he was previously entitled.  

	
8.
	
Voluntary Assent.  Mr. Haak affirms that no other promises or agreements of any kind have been made to or with him by any person or entity whatsoever to cause him to sign this Agreement, and that he fully understands the meaning and intent of this Agreement.  Mr. Haak further states and represents that he has carefully read this Agreement, 

5

 

		
understands the contents herein, freely and voluntarily assents to all of the terms and conditions hereof, and signs his name of his own free act.

 

	
9.
	
Dispute Resolution.  This Agreement shall be interpreted and construed by the laws of the State of Florida, without regard to conflict of laws provisions.  Any dispute arising out of or relating to this Agreement shall be resolved by arbitration held in Orange County, Florida and conducted in accordance with the rules then existing of the American Arbitration Association (other than a dispute pertaining to the Restrictive Covenant Obligations, in which event a Party may seek injunctive relief in a court of competent jurisdiction).  The Company and Mr. Haak agree to select an arbitrator with experience in employment law and executive compensation and benefits.

 

	
10.
	
Cooperation.  Mr. Haak agrees that, through March 15, 2022, and to the extent permitted by law, he shall cooperate fully with the Company in the investigation, defense or prosecution of any claims or actions which already have been brought, are currently pending, or which may be brought in the future against the Company by a third party or by or on behalf of the Company against any third party, whether before a state or federal court, any state or federal government agency, or a mediator or arbitrator.  Mr. Haak’s full cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with the Company’s counsel, at reasonable times at locations designated by the Company in Orange County, Florida or within 10 miles of Mr. Haak’s residence, to investigate or prepare the Company’s claims or defenses, to prepare for trial or discovery or an administrative hearing, mediation, arbitration or other proceeding, to provide any relevant information in his possession, and to act as a witness when requested by the Company.  In the event the Company requests Mr. Haak to travel outside the geographic limits set forth in this Section 10, the Company will promptly reimburse Mr. Haak for any travel expenses he incurs in connection with his compliance with this Section 10.  Mr. Haak further agrees that, to the extent permitted by law, he will notify the Company promptly in the event that he is served with a subpoena (other than a subpoena issued by a government agency), or in the event that he is asked to provide a third party (other than a government agency) with information concerning any actual or potential complaint or claim against the Company.

	
11.
	
Indemnification.  In the event Mr. Haak is made, or threatened to be made a party to any legal action or proceeding, whether civil or criminal or administrative, by reason of the fact that Mr. Haak is, or was, an officer of the Company or serves or served any other affiliate or subsidiary of the Company in any capacity at the request of the Company, Mr. Haak shall be indemnified by the Company, and the Company shall pay Mr. Haak’s related expenses including, but not limited to, attorneys’ fees and costs and travel expenses, when and as incurred, to the full extent permitted by the General Corporation Law of the State of Delaware, if he acted in good faith and in a manner he believed to be in or not opposed to the best interests of the Company and, in the case of any criminal proceeding, he had no reasonable cause to believe his conduct was unlawful.  In all cases, such payments shall be made prior to the end of the calendar year following the year such expenses were incurred, or such sooner date as required to avoid penalties under Code Section 409.

6

 

	
12.
	
Confidentiality. Mr. Haak understands and agrees that, except as otherwise permitted by Section 13 below, the contents of the negotiations and discussions resulting in this Agreement shall be maintained as confidential by Mr. Haak and his agents and representatives and shall not be disclosed except as otherwise agreed to in writing by the Company and except to his immediate family, legal, financial and tax advisors, on the condition that any individuals so informed must hold the above information in strict confidence.   

	
13.
	
Scope of Disclosure Restrictions. Nothing in this Agreement or elsewhere (including, without limitation, in the Surviving Sections) prohibits Mr. Haak from communicating with government agencies about possible violations of federal, state, or local laws or otherwise providing information to government agencies, filing a complaint with government agencies, or participating in government agency investigations or proceedings. Mr. Haak is not required to notify the Company of any such communications; provided, however, that nothing herein authorizes the disclosure of information Mr. Haak obtained through a communication that was subject to the attorney-client privilege.  Further, notwithstanding Mr. Haak’s confidentiality and nondisclosure obligations, Mr. Haak is hereby advised as follows pursuant to the Defend Trade Secrets Act: “An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.”

 

	
14.
	
Death.  In the event Mr. Haak should die prior to the twelve (12) month anniversary of the Separation Date, the Separation Benefits shall be paid to Mr. Haak’s spouse or, if Mr. Haak’s spouse predeceases him or they die together, then to Mr. Haak’s estate, until the twelve (12) month anniversary of the Separation Date.

	
15.
	
Amendment and Waiver.  This Agreement shall be binding upon the Parties and may not be modified in any manner, except by an instrument in writing of concurrent or subsequent date signed by duly authorized representatives of the Parties.  This Agreement is binding upon and shall inure to the benefit of the Parties and their respective agents, assigns, heirs, executors, administrators, personal representatives, and successors.  No delay or omission by the Company in exercising any right under this Agreement shall operate as a waiver of that or any other right.  A waiver or consent given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar to or waiver of any right on any other occasion.

	
16.
	
Validity.  Should any provision of this Agreement be declared or be determined to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be 

7

 

		
affected thereby and said illegal or invalid part, term or provision shall be deemed not to be a part of this Agreement.

	
17.
	
Nature of Agreement.  Mr. Haak understands and agrees that this Agreement is a separation and transition agreement and does not constitute an admission of liability or wrongdoing on the part of the Company.  The Parties acknowledge that this Agreement is a joint product and shall not be construed for or against any Party on the ground of sole authorship.

 

	
18.
	
Entire Agreement. This Agreement sets forth the entire agreement between the Parties and fully supersedes any and all prior agreements or understandings between them pertaining to the subject matter hereof, including the Employment Agreement; provided, however, for the avoidance of doubt, that nothing in this Section 18 shall modify, cancel or supersede the Surviving Sections (including the Restrictive Covenant Obligations), which shall remain in full force and effect both during the Transition Period and following Mr. Haak’s separation from employment.  

	
19.
	
Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement.  Facsimile and PDF signatures shall be deemed to be of equal force and effect as originals.

	
20.
	
Breach.  Mr. Haak acknowledges and agrees that his compliance with his obligations under this Agreement is a condition to the Company’s obligation to provide (or continue providing, as applicable) the Severance Benefits.  Mr. Haak understands and agrees that any material breach of his obligations under this Agreement will immediately render the Company’s obligations hereunder null and void, the Severance Benefits shall immediately cease, and  Mr. Haak shall be obligated to immediately repay to the Company the net amount of any Severance Benefits previously paid pursuant to this Agreement.  For the avoidance of doubt, neither Mr. Haak’s material breach of this Agreement nor the Company’s subsequent termination of its obligations hereunder shall affect Mr. Haak’s release of claims against the Company pursuant to Section 3 hereof.  Notwithstanding anything to the contrary herein, Mr. Haak shall not be deemed in breach or material breach of this Agreement unless the Company has first provided Mr. Haak with at least 30 calendar days’ written notice and opportunity to cure any alleged breach and reasonably concluded that Mr. Haak failed to cure within the cure period.

	
21.
	
Tax Acknowledgment.  In connection with the Separation Benefits provided to Mr. Haak pursuant to this Agreement, the Company shall withhold and remit to the tax authorities the amounts required under applicable law, and Mr. Haak shall be responsible for all applicable taxes owed by him with respect to such Separation Benefits under applicable law.  Mr. Haak acknowledges that he is not relying upon the advice or representation of the Company with respect to the tax treatment of any of the Separation Benefits set forth in this Agreement.  It is intended that the Separation Benefits shall be exempt from or compliant with Section 409A of the Internal Revenue Code (“Section 409A”) and that each installment of the Separation Benefits under this Agreement shall be treated as a separate “payment” for purposes of Section 409A.  Mr. Haak acknowledges and agrees that the Company is not making any representations or warranties to him and shall have no liability 

8

 

		
to him or any other person if any provisions of or payments and benefits provided under this Agreement are determined to constitute deferred compensation subject to Section 409A but not to satisfy an exemption from, or the conditions of, that section. 

 

 

IN WITNESS WHEREOF, the Parties have set their hands and seals to this Agreement as of the date(s) written below.

 

RUTH’S HOSPITALITY GROUP, INC.

 

 

By:     /s/ Cheryl J. Henry_________________________Date:  December 1, 2020

Name:Cheryl J. Henry

Title:President & CEO

 

I hereby agree to the terms and conditions set forth above.  I have been given at least twenty-one (21) days to consider this Agreement and I have chosen to execute this on the date below.  I understand that I will have seven (7) days following my execution of this Agreement in which to revoke my acceptance.  I further understand that the Separation Benefits and other consideration set forth in this Agreement are contingent upon my timely execution, return and non-revocation of the Additional Release, and that I have been given at least twenty-one (21) days to consider such Additional Release, and will have seven (7) days in which to revoke my acceptance after I sign such Additional Release.

 

ARNE G. HAAK

 

 

/s/ Arne G. Haak__________November 24, 2020

SignatureDate

 

9

 

Attachment A

 

Additional Release of Claims

 

This Additional Release of Claims (the “Additional Release”) is made as of the date set forth opposite the below signature of Arne G. Haak (“Mr. Haak”).  Capitalized terms used but not defined herein have the meanings set forth in the Separation, Transition, and Release of Claims Agreement (the “Separation Agreement”) to which this Additional Release is attached as Attachment A.

WHEREAS, Mr. Haak is entering into this Additional Release in accordance with the terms and conditions set forth in the Separation Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Mr. Haak hereby agrees as follows:

1.Release.  In consideration of the Separation Benefits set forth in the Separation Agreement, which Mr. Haak acknowledges he would not otherwise be entitled to receive, Mr. Haak hereby fully, forever, irrevocably and unconditionally releases, remises and discharges the Company, its affiliates, subsidiaries, parent companies, predecessors, and successors, and all of their respective past and present officers, directors, stockholders, partners, members, employees, agents, representatives, plan administrators, attorneys, insurers and fiduciaries (each in their individual and corporate capacities) (collectively, the “Released Parties”) from any and all claims, charges, complaints, demands, actions, causes of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts, agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and expenses (including attorneys’ fees and costs), of every kind and nature that Mr. Haak ever had or now has against any or all of the Released Parties up to the date on which Mr. Haak signs this Additional Release, whether known or unknown, including, but not limited to, any and all claims arising out of or relating to Mr. Haak’s employment with, separation from, and/or ownership of securities of the Company, including, but not limited to, all claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., the Genetic Information Nondiscrimination Act of 2008, 42 U.S.C. § 2000ff et seq., the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq., the Worker Adjustment and Retraining Notification Act (“WARN”), 29 U.S.C. § 2101 et seq., the Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq., Executive Order 11246, Executive Order 11141, the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., all as amended; all claims arising out of the Florida Civil Rights Act of 1992, Fla. Stat. § 760.01 et seq., Fla. Stat. §§ 448.07 and 725.07 (Florida equal pay laws), Fla. Stat. § 250.481 (Florida military leave law), Fla. Stat. § 760.40 (Florida genetic testing law), and Fla. Stat. § 448.101 et seq. (Florida anti-retaliation law), all as amended; all common law claims including, but not limited to, actions in defamation, intentional infliction of emotional distress, misrepresentation, fraud, wrongful discharge, and breach of contract; all claims to any non-vested ownership interest in the Company or its affiliates, contractual or otherwise; all state and federal whistleblower claims to the maximum extent permitted by law; and any claim or damage arising out of Mr. Haak’s employment with and/or 

10

 

separation from the Company (including a claim for retaliation) under any common law theory or any federal, state or local statute or ordinance not expressly referenced above; provided, however, that this release of claims shall not (i) prevent Mr. Haak from filing a charge with, cooperating with, or participating in any investigation or proceeding before, the Equal Employment Opportunity Commission or a state fair employment practices agency (except that Mr. Haak acknowledges that he may not recover any monetary benefits in connection with any such charge, investigation, or proceeding, and Mr. Haak further waives any rights or claims to any payment, benefit, attorneys’ fees or other remedial relief in connection with any such charge, investigation or proceeding), or (ii) deprive Mr. Haak of any rights Mr. Haak may have to be indemnified by the Company as provided in any agreement between the Company and Mr. Haak, including, but not limited to, the Separation Agreement, or pursuant to the Company’s Certificate of Incorporation or By-Laws.  

2.Return of the Company Property.  Mr. Haak confirms that he has returned to the Company all property of the Company, tangible or intangible, including but not limited to keys, files, records (and copies thereof), and equipment (including, but not limited to, computer hardware, software and printers, wireless handheld devices, cellular phones, tablets, etc.), and that he has left intact all, and has otherwise not destroyed, deleted, or made inaccessible to the Company any, electronic Company documents, including but not limited to those that he developed or helped to develop during his employment.  Mr. Haak further confirms that he has canceled all accounts for his benefit, if any, in the Company’s name, including but not limited to, credit cards, cellular phone and/or wireless data accounts and computer accounts.  Notwithstanding anything herein to the contrary, Mr. Haak may retain and use his mobile phone number currently linked to the Company’s Verizon account.  The Company agrees to use reasonable efforts to allow Mr. Haak to port the foregoing mobile phone number to a carrier and device of his choosing.

3.Business Expenses; Final Compensation.  Mr. Haak acknowledges that he has been reimbursed by the Company for all business expenses incurred in conjunction with the performance of his employment and that no other reimbursements are owed to him.  Mr. Haak further acknowledges that he has received all compensation due to him from the Company, including, but not limited to, all wages, bonuses and accrued, unused vacation time, and that he is not eligible or entitled to receive any additional payments or consideration from the Company, other than the Accrued Obligations and the Separation Benefits.  

4.Time for Consideration; Acknowledgments.  Mr. Haak acknowledges that, in order to receive the Separation Benefits, he must sign and return this Additional Release on, but not before, the Separation Date.  Mr. Haak acknowledges that he has been given at least twenty-one (21) days to consider this Additional Release, and that the Company advised him to consult with an attorney of his own choosing prior to signing this Additional Release.  Mr. Haak understands that he may revoke this Additional Release for a period of seven (7) days after he signs it by notifying the Company in writing, and the Additional Release shall not be effective or enforceable until the expiration of this seven (7) day revocation period.  Mr. Haak understands and agrees that by entering into this Additional Release, he is waiving any and all rights or claims he might have under the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, and that he has received consideration beyond that to which he was previously entitled.

11

 

5.Voluntary Assent.  Mr. Haak affirms that no other promises or agreements of any kind have been made to or with him by any person or entity whatsoever to cause him to sign this Additional Release, and that he fully understands the meaning and intent of this Additional Release.  Mr. Haak states and represents that he has had an opportunity to fully discuss and review the terms of this Additional Release with an attorney.  Mr. Haak further states and represents that he has carefully read this Additional Release, understands the contents herein, freely and voluntarily assents to all of the terms and conditions hereof, and signs his name of his own free act.

For the avoidance of doubt, this Additional Release supplements, and in no way limits, the Separation Agreement.

 

I hereby provide this Additional Release as of the current date.  I intend that this Additional Release will become a binding agreement between me and the Company if I do not revoke my acceptance in seven (7) days.

Arne G. Haak

 

 

/s/ Arne G. Haak__________November 24, 2020

SignatureDate

 

12Document

Exhibit 10.1

EXECUTIVE EMPLOYMENT AGREEMENT

THIS EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”), effective as of March 1, 2021, is between MVB Financial Corp., a West Virginia corporation (“Employer”), and Larry Mazza (“Executive”). 

    Employer and Executive agree that this Agreement shall restate, supersede and replace any Employment Agreement between the parties or affiliates, and hereby state as follows:

1.Employment. Employer hereby employs Executive, and Executive hereby accepts employment, upon the terms and conditions set forth in this Agreement.  Executive’s employment is at-will and may be terminated by either Employer or Executive at any time, with or without cause, subject only to the notice requirements set forth herein.
2.Term. The term of this Agreement and Executive’s employment hereunder begins on January 1, 2021 and terminates in the manner established in this Agreement.

3.Duties. Executive shall serve as President and Chief Executive Officer of MVB Financial Corp. and MVB Bank and shall perform and have all of the duties and responsibilities of such positions, along with such other duties as may be assigned by the Board or its designee from time to time.  Executive acknowledges that the duties assigned to Executive may be revised from time to time based on the business needs of Employer and its subsidiaries and affiliates (collectively, the “Employer Group”). Executive shall be familiar with and comply with all applicable laws and regulations governing Employer Group’s business and shall comply with the policies and procedures established by Employer Group as the same may be modified from time to time.  Executive shall be subject to performance guidelines and requirements established by Employer Group, as the same may be modified from time to time.  Executive shall devote full business time and best efforts at all times to the business and affairs of Employer and its affiliates; provided, however, that it shall not be a violation of this provision to (i) devote reasonable periods of time to charitable, community, industry or professional activities, or (ii) manage personal investments, so long as such activities do not interfere with the performance of Executive’s responsibilities under this Agreement or conflict with any of the provisions of this Agreement.
4.Change of Duties. Executive acknowledges that the duties assigned to Executive may be revised from time to time based on the business needs of Employer Group. However, Employer acknowledges that Executive’s duties and responsibilities will be commensurate in material respects to Executive’s position hereunder unless otherwise agreed by Executive.
5.Compensation and Benefits.  In exchange for Executive’s full-time services hereunder, Employer agrees to provide Executive with the following compensation and benefits:
(a)Executive will be paid an initial annualized base salary hereunder of $780,000.  Executive’s base salary may be increased annually or as changes to Executive’s position or duties may occur, but shall not be reduced unless such reduction is part of a 

proportionate reduction in base salaries at Executive’s level for all of Employer’s executives taken as a whole.  Such base salary is payable in accordance with Employer’s general payroll practices. 
(b)Executive is entitled to participate in any and all benefit plans that Employer now and hereafter makes available generally to its employees in accordance with the terms and conditions of such plans, as they may be modified from time to time.  
(c)Executive is entitled to reimbursement for normal and reasonable business expenses in accordance with Employer’s policies on expense reimbursement in effect as of the date the expense is incurred, and as may be amended from time to time.  All reimbursements will be paid no later than the first quarter of the calendar year immediately following the calendar year in which they were incurred.
(d)Executive is eligible to participate in Employer’s incentive compensation plan as may be in effect from time to time, all as appropriate for Executive’s position and as approved by Employer’s Board of Directors.  Except as otherwise provided herein, Executive must be employed on December 31 of a given year to qualify for the incentive compensation opportunity and in order to receive any incentive compensation for that calendar year.
6.Termination of Employment; Termination Payments. Employment of Executive under this Agreement and this Agreement may be terminated for any of the following reasons:
(a)By Employer for Cause.  Executive’s employment and this Agreement may be terminated immediately on the determination by the Employer’s Board of Directors (the “Board”), in its good faith discretion, that a “Cause” event has occurred, defined as i) commission by Executive of a felony, misappropriation, embezzlement, or intentional fraud; ii) knowing violation by Executive of any law or regulation applicable to the business of Employer; iii) material insubordination by Executive with respect to lawful and ethical instructions from the Board; iv) violation by Executive of any material covenant or obligation under this Agreement; and/or v) violation or breach of an Employer policy or procedure that has not been cured within fourteen (14) days following written notice from Employer.  Executive shall not be entitled to any termination or severance payment(s) in the event of termination pursuant to this Paragraph 6(a).  On termination pursuant to this Paragraph 6(a), Employer shall only be obligated to pay Executive’s base salary for employment up to the date of termination, and payment of any accrued benefits owing to Executive pursuant to applicable law.  

(b)By Employer without Cause or by Executive for Good Reason.  Executive’s employment and this Agreement may be terminated without Cause by Employer at any time upon written notice to the Executive, or by Executive for Good Reason at any time upon written notice to Employer.  “Good Reason” shall mean without Executive’s written consent, the following occurrences:  i) a material diminution of Executive’s position, authority, duties or responsibilities in effect on the date of this Agreement or as increased during the course of Executive’s employment; ii) a decrease in the base salary for Executive in effect on the date of this Agreement or as increased during the course of Executive’s employment; or iii) a change in the geographic location at which Executive must perform the services rendered hereunder which 
2

is more than fifty (50) miles from Executive’s assigned office location; provided that in order to quality as a Good Reason termination based on i), ii) or iii), Executive must resign employment only after providing Employer, or any successor, written notice of the claimed occurrence which Employer or its successor does not remedy within fourteen (14) days of Executive’s notice.
On termination pursuant to this Paragraph 6(b), Employer shall pay Executive the ratable portion of the Executive’s base salary for the period through and including the effective date of termination plus any accrued benefits or other compensation owing to Executive pursuant to applicable plan or law.  In addition, Employer shall pay the Executive a severance payment (“Severance Compensation”) equal to twenty-four (24) months of Executive’s salary (such salary being equal to Executive’s annual base salary at the time of termination); and a payment for any annual incentive compensation earned for the fiscal year in which the termination occurs, pro-rated for the days of the calendar year worked by Executive (Pro-rated Bonus). Employer shall pay any accrued, unused paid vacation balance at the time of termination.  Executive must execute and not revoke a release of claims in the form requested by Employer no later than 21 days following the effective date of termination, or as otherwise required by law, (the “Release”) and continue to comply with all post-employment covenants under this Agreement in order to qualify and receive the Severance Compensation. The Severance Compensation shall be paid on Executive’s regular payroll dates commencing within sixty (60) days following Executive’s date of termination, provided that if such sixty (60) day period spans two (2) calendar years Executive shall not have the right to designate the calendar year in which Severance Compensation payments commence.  The Pro-rated Bonus, if due, shall be paid at the same time other eligible executives receive such payments following the applicable fiscal year.  
(c)Change-in-Control Termination. Further, should Employer terminate Executive’s employment without Cause or should Executive terminate for Good Reason within the oneyear period following the occurrence of a Change in Control (or within the 3 months immediately preceding such Change in Control) (a “Change-in-Control Termination”), in addition to the Severance Compensation, Employer shall pay Executive additional Change-in-Control Compensation equal to 0.5 times the amount of the Severance Compensation.  Executive must execute a Release and continue to comply with all post-employment covenants under this Agreement in order to qualify and receive the Change-in-Control Compensation. The ChangeinControl Compensation shall be paid on Executive’s regular payroll dates that coincide with the payment of Executive’s Severance Compensation.  
For purposes of this Agreement, a “Change in Control” means any of the following: (A) any consolidation or merger of Employer pursuant to which the stockholders of Employer immediately before the transaction do not retain immediately after the transaction direct or indirect beneficial ownership of more than 50% of the total combined voting power of the outstanding voting securities of the surviving business entity; (B) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of Employer other than any sale, lease, exchange or other transfer to any company where Employer owns, directly or indirectly, 100% of the outstanding voting securities of such company after any such transfer; (C) the sale or exchange, whether in a single transaction or series of related transactions, by the stockholders of Employer of more than 50% of the voting 
3

stock of Employer, such that the stockholders do not, whether directly or indirectly, have beneficial ownership of more than 50% of the total combined voting power of the outstanding voting securities of Employer.  
(d)Death or Permanent Disability. If Executive dies, or is unable, due to illness or injury, to fully perform his duties hereunder for a period of six (6) consecutive months, this Agreement shall terminate as of the date of death or as of the final day of the six (6) consecutive month period, as applicable. On termination pursuant to this Paragraph 6(d), Employer shall pay Executive the ratable portion of  Executive’s salary for the period through and including the effective date of the termination of this Agreement plus any accrued benefits or other compensation owing to Executive pursuant to applicable plan or law.  
(e)By Executive without Good Reason.  Executive’s employment and this Agreement may be terminated at any time without Good Reason by the Executive upon sixty (60) days’ prior written notice to Employer.  On termination pursuant to this Paragraph 6(b), Employer shall pay Executive the ratable portion of the Executive’s base salary for the period through and including the effective date of termination plus any accrued benefits or other compensation owing to Executive pursuant to applicable plan or law. 

Upon termination of this Agreement or Executive’s employment for any reason, Executive shall be deemed to have resigned as an officer, director (and any committees thereof) and manager of Employer and any affiliates of Employer, and Executive agrees to take any actions required to affect the same.  The parties shall have no further rights or obligations under this Agreement, except as otherwise provided for herein (including, without limitation, under Paragraphs 6, 8-12) and except to the extent accruing prior to the effective date of such termination.  Whether any benefits or equity-related grants are considered accrued or vested shall be exclusively determined in accordance with the separate plan documents governing such benefits and/or applicable individual Executive award agreement(s).
7.Conflict of Interest.   Executive agrees that during the employment, he or she will notify the Chief Executive Officer of the Company  thirty (30) days prior to engaging in, either directly or indirectly, any situation (a “Conflict of Interest”) in which an individual uses his or her position with Employer for personal enrichment through access to confidential information; has a financial interest in a transaction with Employer which could affect judgment or otherwise interfere with his or her duties and responsibilities to Employer, by making it difficult to objectively, effectively, and efficiently perform work or discharge responsibilities for Employer; or misuses his or her position in Employer in a way that results in personal gain to him or her. Executive further agrees to provide the same notice to Employer any other facts of which Executive becomes aware which might in Executive’s good faith judgment reasonably be expected to involve or give rise to a Conflict of Interest or potential Conflict of Interest. Once notice is received, Employer will follow its standard procedure to determine if the Conflict of Interest is allowable or restricted. 

4

8.Confidential Information.
(a)Executive understands and agrees that during the course of Executive’s employment with Employer, Executive will come to know confidential information regarding Employer Group, including business, financial, customer, client, supplier and other information, which Employer Group holds in the strictest confidence (individually and collectively, “Confidential Information”). Executive will not, whether during employment or at any time thereafter, use, divulge, disclose or distribute any Confidential Information to any person except in the performance of Executive’s duties hereunder. For purposes of this Agreement, “Confidential Information” does not include information that (i) is available to or known by the public other than as a result of disclosure by Executive, (ii) becomes available to Executive on a non-confidential basis from a source other than Employer Group, or (iii) is required to be disclosed by law, including, without limitation, oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process.
(b)U.S. Defend Trade Secrets Act Notice of Immunity: The U.S. Defend Trade Secrets Act of 2016 (“DTSA”) provides that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  In addition, the DTSA provides that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.
(c)Nothing contained in this Agreement shall be construed so as to violate any law or as to require Executive to violate any law, or to refuse to respond to a valid and enforceable subpoena or to a court order compelling Executive to testify, or otherwise cooperate or participate in any government investigation. If Executive is subject to any legal process that compels Executive to provide testimony or documents about any matter involving Employer Group or to disclose Confidential Information, Executive will promptly notify Employer sufficiently in advance so that it may seek a protective order or other appropriate relief. However, nothing in this Agreement prohibits, limits or restricts, or shall be construed to prohibit, limit or restrict, Executive from exercising any legally protected whistleblower rights, without notice to or consent from Employer.  
9.Third Party Agreements.  Executive agrees that Executive shall not disclose to Employer Group or induce Employer Group to use any secret or confidential information belonging to Executive’s former employers.  Executive warrants that Executive is not bound by the terms of a confidentiality agreement or other agreement with a third party that would preclude or limit Executive’s right to work for Employer and/or to disclose to Employer Group any ideas, inventions, discoveries, improvements or designs or other information that may be conceived during employment with Employer.  
5

10.Inventions; Work Made for Hire.  During employment, Executive agrees that upon conception and/or development of any idea, discovery, invention, improvement, writing or other material or design that:  (A) relates to the business of Employer Group, or (B) relates to Employer’s actual or demonstrably anticipated research or development, or (C) results from any work performed by Executive for Employer or Employer Group, Executive will assign to Employer the entire right, title and interest in and to any such idea, discovery, invention, improvement, software, writing or other material or design.  Executive has no obligation to assign any idea, discovery, invention, improvement, software, writing or other material or design that Executive conceives and/or develops entirely on Executive’s own time without using Employer’s equipment, supplies, facilities, or trade secret information unless the idea, discovery, invention, improvement, software, writing or other material or design:  (x) relates to the business of Employer Group, or (y) relates to Employer Group’s actual or demonstrably anticipated research or development, or (z) results from any work performed by Executive for Employer Group.  
Executive acknowledges that, to the extent permitted by law, all work papers, reports, documentation, drawings, photographs, negatives, tapes and masters therefor, prototypes and other materials (hereinafter, “items”), including without limitation, any and all such items generated and maintained on any form of electronic media, generated by Executive during Executive’s employment with Employer shall be considered a “work made for hire” and that ownership of any and all copyrights in any and all such items shall belong to Employer.  The item will recognize Employer as the copyright owner, will contain all proper copyright notices, and will be in condition to be registered or otherwise placed in compliance with registration or other statutory requirements throughout the world. 
11.Return of Employer’s Property. Immediately on the termination of Executive’s employment, and at any time during Executive’s employment upon request of Employer, Executive will return to Employer all property of Employer Group (individually and collectively, “Company Property”). Company Property includes, without limitation: (a) all materials containing Confidential Information (including all copies, summaries or distillations thereof); (b) all electronic equipment, codes, notes, memoranda or data made available or furnished to Executive by Employer Group (including all copies, summaries or distillations thereof), whether or not they contain Confidential Information; (c) all notes, memoranda or data created by Executive during Executive’s employment, whether or not they contain Confidential Information; and (d) all other materials containing any information pertaining to Employer Group’s business, or any of its employees, clients, consultants, or business associates, that were acquired by Executive in the course of employment with Employer.
12.Non-Competition; Non-Solicitation; Non-Interference. 
(a)Non-Competition.  Executive hereby agrees that, during the Restricted Period, other than in the performance of duties hereunder or with written consent of Employer, Executive will not directly or indirectly, individually or as an employee, joint venturer, partner, agent or independent contractor of any other person, within the Restricted Territory provide services similar to those performed by Executive for Employer to, or otherwise engage in, a 
6

Competing Business. “Competing Business” means any business in which Employer Group is engaged.  “Restricted Territory” means any U.S. state or city in which Employer Group does business.  “Restricted Period” means during employment and for the 12-month period directly following the termination of Executive’s employment for any reason, voluntary or involuntary.
(b)Non-Solicitation; Non-Interference. Executive hereby agrees that, during the Restricted Period and during any period that Executive is receiving Severance Compensation or Change-in-Control Compensation, other than in the performance of duties hereunder, Executive will not: 
(i)directly or indirectly, solicit business from any person, firm, corporation or other entity which was a client, customer or supplier of Employer Group during the term of this Agreement, or from any successor-in-interest of any such person, firm, corporation or other entity, for the purpose of securing business or contracts related to the business of Employer Group;  
(ii)engage, recruit or solicit for employment or engagement, any person who is or becomes employed or engaged by Employer Group during the Restricted Period, or otherwise seek to influence or alter any such person’s relationship with Employer Group; or
(iii)solicit or encourage any present or future client, customer or supplier of Employer Group to terminate or otherwise alter his, her or its relationship with Employer Group.  
(c)Executive acknowledges that the provisions of this Paragraph 12 are necessary for the protection of the confidential information and good will of Employer Group, and that they are reasonable and will not cause Executive undue economic hardship.  Further, Executive agrees that a breach by Executive of this Paragraph 12 will cause irreparable harm to Employer for which injunctive relief is appropriate.  Executive further agrees that Employer may setoff, discontinue or withhold any and all Severance Compensation and Change-in-Control Compensation payments due under this Agreement while Executive’s breach of Paragraphs 8, 10, 11 or 12 continues. 
13.Notices. Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and sent by registered or certified mail, in the case of Executive at the most recent address maintained  by Employer in its personnel records, and in the case of Employer to the Chief Executive Officer of Employer at the headquarters of Employer. 
14.Dispute Resolution. The parties shall abide by the following dispute resolution procedures, which are the exclusive means of resolving disputes relating to this Agreement or Executive’s employment by Employer or its subsidiaries or affiliates:
(a)If any claim, dispute, or controversy concerning this Agreement, the breach of this Agreement or Executive’s employment is not resolved by the parties within thirty (30) days after written notice of such dispute is delivered by one party to the other party, then the parties agree to participate in a mediation conducted by a mediator agreed upon by the parties.
7

(b)Except for injunctive or equitable actions as permitted under Paragraph 15, any claim, dispute, or controversy concerning this Agreement or the breach of this Agreement or Executive’s employment that is not resolved by mediation shall upon election of either party be resolved exclusively by binding arbitration conducted by the American Arbitration Association (“AAA”) in Morgantown, West Virginia (or some other location on which the parties may agree) in accordance with the Employment Arbitration Rules of the AAA, (see https://www.adr.org/Rules) instead of the court system and judgment upon the award rendered by the panel may be entered in any court having jurisdiction.. The arbitrator, in his/her discretion may permit discovery in accordance with the AAA Employment Arbitration Rules.  The following claims are excluded from arbitration: (1) claims under an employee benefit or pension plan that either (i) specifies that its claims procedure shall culminate in an arbitration procedure different from this one, or (ii) is underwritten by a commercial insurer which decides claims; (2) claims that, as a matter of applicable law that is not preempted by the Federal Arbitration Act, the parties cannot agree to arbitrate.
15.Injunctive Relief. Either party may seek injunctive or other equitable relief in a state or federal court located in Monongalia County, West Virginia, to enforce or prevent the other party from breaching obligations under Paragraphs 8-10, or 12.  Resort by either party to such injunctive or other equitable relief is not construed as a waiver of any rights a party may have for damages or otherwise.  Executive agrees that the state and federal courts located in the County of Monongalia, West Virginia shall have exclusive jurisdiction in any permitted court action, suit or proceeding hereunder and Executive hereby: (a) submits to the personal jurisdiction of such courts; (b) consents to service of process in connection with any action, suit or proceeding against Executive; and (c) waives any other requirement (whether imposed by statute, rule of court or otherwise) with respect to personal jurisdiction, venue or service of process.
16.Code Section 409A. The intent of the parties is that payments and benefits under this Agreement comply with, or be exempt from, Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder (collectively, “Code Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.  Notwithstanding any provision of this Agreement to the contrary, in the event that Executive is a “specified employee” within the meaning of Code Section 409A (as determined in accordance with the methodology established by Employer as in effect on the date of termination of Executive’s employment) (a “specified employee”), any payments or benefits that are considered non-qualified deferred compensation subject to Code Section 409A payable under this Agreement on account of a “separation from service” during the six (6) month period immediately following the separation from service shall instead be paid on the first business day after the date that is six (6) months following Executive’s “separation from service” within the meaning of Code Section 409A or, if earlier, upon Executive’s death.  For purposes of Code Section 409A, Executive’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.  In no event may Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement that is considered nonqualified deferred compensation.  References to termination of employment and similar terms in Paragraph 6 of this Agreement 
8

shall mean a “separation from service” within the meaning of Code Section 409A.  With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits that are considered non-qualified deferred compensation subject to Code Section 409A, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year and (iii) such payments shall be made on or before the last day of Executive’s taxable year following the taxable year in which the expense occurred.
17.Code Section 280G.
(a)    Executive shall bear all expense of, and be solely responsible for, any excise tax imposed by Section 4999 of the Code (such excise tax being the “Excise Tax”); provided, however, that any payment or benefit received or to be received by Executive (whether payable under the terms of this Agreement or any other plan, arrangement or agreement with Employer or Employer Group (collectively, the “Payments”) that would constitute a “parachute payment” within the meaning of Section 280G of the Code, shall be reduced to the extent necessary so that no portion thereof shall be subject to the Excise Tax, but only if, by reason of such reduction, the “net after-tax benefit” received by Executive shall exceed the “net after-tax benefit” that would be received by Executive if no such reduction was made. 
(b)     The “net after-tax benefit” shall mean (i) the Payments which Executive receives or is then entitled to receive that would constitute “parachute payments” within the meaning of Section 280G of the Code, less (ii) the amount of all federal, state and local income and employment taxes payable by Executive with respect to the foregoing calculated at the highest marginal income tax rate for each year in which the foregoing shall be paid to Executive (based on the rate in effect for such year as set forth in the Code as in effect at the time of the first payment of the foregoing), less (iii) the amount of Excise Tax imposed with respect to the payments and benefits described in clause (b)(i) above. 
(c)    All determinations under this Paragraph 17 will be made by an actuarial firm, accounting firm, law firm, or consulting firm experienced and generally recognized in 280G matters (the “280G Firm”) that is chosen by Employer prior to a change in ownership or control of a corporation (within the meaning of Treasury regulations under Section 280G of the Code). The 280G Firm shall be required to evaluate the extent to which payments are exempt from Section 280G as reasonable compensation for services rendered before or after the Change in Control. All fees and expenses of the 280G Firm shall be paid solely by Employer or its successor. Employer will direct the 280G Firm to submit any determination it makes under this Paragraph 17 and detailed supporting calculations to both Executive and Employer as soon as reasonably practicable. 
(d)    If the 280G Firm determines that one or more reductions are required under this Paragraph 17, such Payments shall be reduced in the order that would provide Executive with the largest amount of after-tax proceeds (with such order, to the extent permitted by Section 280G of the Code and Code Section 409A, designated by Executive, or otherwise determined by the 
9

280G Firm) to the extent necessary so that no portion thereof shall be subject to the Excise Tax, and Employer shall pay such reduced amount to Executive. Executive shall at any time have the unilateral right to elect to forfeit any equity award in whole or in part. 
(e)     As a result of the uncertainty in the application of Section 280G of the Code at the time that the 280G Firm makes its determinations under this Paragraph 17, it is possible that amounts will have been paid or distributed to Executive that should not have been paid or distributed (collectively, the “Overpayments”), or that additional amounts should be paid or distributed to Executive (collectively, the “Underpayments”). If the 280G Firm determines, based on either the assertion of a deficiency by the Internal Revenue Service against Employer or Executive, which assertion the 280G Firm believes has a high probability of success or is otherwise based on controlling precedent or substantial authority, that an Overpayment has been made, Executive must repay the Overpayment to Employer, without interest; provided, however, that no loan will be deemed to have been made and no amount will be payable by Executive to Employer unless, and then only to the extent that, the deemed loan and payment would either (i) reduce the amount on which Executive is subject to Excise Tax under Section 4999 of the Code or (ii) generate a refund of Excise Tax imposed under Section 4999 of the Code. If the 280G Firm determines, based upon controlling precedent or substantial authority, that an Underpayment has occurred, the 280G Firm will notify Executive and Employer of that determination, and Employer will promptly pay the amount of that Underpayment to Executive without interest. 
(f)     The parties will provide the 280G Firm access to and copies of any books, records, and documents in their possession as reasonably requested by the 280G Firm, and otherwise cooperate with the 280G Firm, in connection with the preparation and issuance of the determinations and calculations contemplated by this Paragraph 17. For purposes of making the calculations required by this Paragraph 17, the 280G Firm may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. 
18.    Entire Agreement. This Agreement constitutes and references the entire Agreement between the parties and shall supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof, except that any restrictive covenants contained in any other agreements between the parties are not affected and shall stand separate and apart from those contained in this Agreement.  This Agreement may not be changed or amended except by an instrument in writing to be executed by each of the parties hereto.  
19.    Severability. If any provision hereof, or any portion of any provision hereof, is held to be invalid, illegal or unenforceable, all other provisions shall remain in force and effect as if such invalid, illegal or unenforceable provision or portion thereof had not been included herein. If any provision or portion of any provision of this Agreement is so broad as to be unenforceable, such provision or a portion thereof shall be interpreted to be only so broad as is enforceable.
10

20.    Headings. The headings contained in this Agreement are included for convenience or reference only and shall have no effect on the construction, meaning or interpretation of this Agreement.
21.    Governing Law. The laws of the State of West Virginia shall govern the interpretation and enforcement of this Agreement without regard to conflicts-of-laws principles.
22.     Waiver of Breach. A waiver of a breach of any provision of the Agreement by any party shall not be construed as a waiver of subsequent breaches of that or any other provision. No requirement of this Agreement may be waived except by the party adversely affected.
23.    Binding Effect and Assignability. This Agreement shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective successors, assigns, heirs and legal representatives. Employer may assign this Agreement to an affiliate or successor entity without Executive’s consent. Employer shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all of the business or assets of Employer and/or the MVB Bank, expressly and unconditionally to assume and agree to perform Employer’s obligations under this Agreement, in the same manner and to the same extent that Employer would be required to perform if no such succession or assignment had taken place. Failure of any successor or assignee of Employer, whether pursuant to a Change in Control or otherwise, to assume the Agreement shall be deemed to be a material breach of this Agreement.  Upon such assignment, references to “Employer” shall automatically include such successor or assignee. This Agreement requires the personal services of Executive and may not be assigned by Executive.
24.     Withholding. Employer may withhold from any amounts payable under this Agreement such Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.
25.    Amendments. Any amendments or modifications to this Agreement must be in writing and signed by the parties.
26.     Force Majeure.  Neither party will be liable for failure or delay to perform obligations under this Agreement, which have become practicably impossible because of circumstances beyond the reasonable control of the applicable party, including but not limited to, war, strikes, riots, crime, epidemic, pandemic, terrorism, natural disaster or act of God.

11

    Employer and Executive have executed this Agreement as of the date first written above.

                        MVB BANK FINANCIAL CORP.

By: /s/ Gary A. LeDonne                                           

Its: Chair, HR & Compensation Committee              

                            
                        EXECUTIVE 

Name printed:     Larry F. Mazza                                   

Signature: /s/ Larry F. Mazza                                    

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00323-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00323-of-00352.parquet"}]]