Document:

exv10w29

 

Exhibit 10.29

YARDVILLE NATIONAL BANK

CHANGE IN CONTROL SEVERANCE COMPENSATION PLAN

A. Purpose.

     The purpose of the Yardville National Bank Change in Control Severance Compensation Plan (the
“Plan”) is to ensure the successful continuation of the business of Yardville National Bank (the
“Bank”) and the fair and equitable treatment of the Bank’s employees following a Change in Control
(as defined below)

B. Covered Employees.

     Subject to Paragraph C below, any employee of the Bank with at least one year of service as of
his or her termination date shall be eligible to receive a Change in Control Severance Benefit (as
defined below) if, within the period beginning on the effective date of a Change in Control and
ending on the first anniversary of such date, (i) the employee’s employment with the Bank is
involuntarily terminated or (ii) the employee terminates employment with the Bank voluntarily after
being offered continued employment in a position that is not a Comparable Position (as defined
below).

C. Limitations on Eligibility for Change in Control Severance Benefits.

     1. No employee shall be eligible for a Change in Control Severance Benefit if (a) his or her
employment is terminated for “Cause”, (b) he or she is offered a Comparable Position within the
Bank and declines to accept such position or (c) the employee is, at the time of termination of
employment, a party to an individual employment agreement with the Bank and/or Yardville National
Bancorp (the “Company).

     2. For purposes of this Plan, a termination of employment for “Cause” shall include
termination because of the employee’s personal dishonesty, incompetence, willful misconduct, breach
of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful
violation of any law, rule or regulation (other than traffic violations or similar offenses) or
violation of any final cease-and desist order, or material breach of any provision of the plan.

     3. For purposes of this Plan, a “Comparable Position” shall mean a position that would (i)
provide the employee with base compensation and benefits that are comparable in the aggregate to
those provided to the employee prior to the Change in Control, (ii) provide the employee with an
opportunity for variable bonus compensation that is comparable to the opportunity provided to the
employee prior to the Change in Control, (iii) be in a location that would not require the employee
to increase his or her daily one way commuting distance by more than twenty-five (25) miles as
compared to the employee’s commuting distance immediately prior to the Change in Control and (iv)
have job skill requirements and duties that are comparable to the requirements and duties of the
position held by the employee prior to the Change in Control.

D. Definition of Change in Control.

     For purposes of this Plan, “Change in Control” means the occurrence of any one of the
following events:

	 	(1)  	Merger: The Company merges into or consolidates with another
corporation, or merges another corporation into the Company, and, as a result, less
than a majority of the

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	 	   	combined voting power of the resulting corporation immediately after the merger or
consolidation is held by persons who were stockholders of the Company immediately
before the merger or consolidation.
	 
	 	(2)  	Acquisition of Significant Share Ownership: a report on Schedule 13D or
another form or schedule (other than Schedule 13G) is filed or is required to be filed
under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, if the schedule
discloses that the filing person or persons acting in concert has or have become the
beneficial owner of 25% or more of a class of the Company’s voting securities, but this
clause (b) shall not apply to beneficial ownership of Company voting shares held in a
fiduciary capacity by an entity of which the Company directly or indirectly
beneficially owns fifty percent (50%) or more of its outstanding voting securities;
	 
	 	(3)  	Change in Board Composition: During any period of two consecutive
years, individuals who constitute the Company’s Board of Directors at the beginning of
the two-year period cease for any reason to constitute at least a majority of the
Company’s Board of Directors; provided, however, that for purposes of this clause
(iii), each director who is first elected by the board (or first nominated by the
board for election by the stockholders) by a vote of at least two-thirds (?) of the
directors who were directors at the beginning of the two-year period shall be deemed
to have also been a director at the beginning of such period; or
	 
	 	(4)  	Sale of Assets: The Company sells to a third party all or
substantially all of its assets.

E. Determination of the Change in Control Severance Benefit.

     The Change in Control Severance Benefit payable to an eligible employee under this Plan shall
be determined as follows:

	 	(1)  	An eligible employee who becomes entitled to receive a Change in Control
Severance Payment under the Plan shall receive a benefit determined under the following
schedule:

	 	(a)  	The basic benefit under the Plan shall be determined as the
product of (i) the employee’s years of service from his or her hire date
(including partial years) through the termination date and (ii) one (1) month
of the employee’s Base Compensation (as defined below). A “year of service”
shall mean each 12-month period of service following an employee’s hire date
determined without regard to the number of hours worked during such period(s).
	 
	 	(b)  	An eligible employee who was a Vice President of the Bank
immediately prior to the Change in Control shall receive a minimum benefit of
six (6) months of Base Compensation or, if greater, a benefit determined under
clause (a) above.
	 
	 	(c)  	Notwithstanding anything in this Plan to the contrary, the
minimum payment to an eligible employee under this Plan shall be one (1) month
of Base Compensation and the maximum payment to an eligible employee shall not
exceed 199% of the employee’s Base Compensation.

	 	(2)  	The Change in Control Severance payment shall be made in a lump sum not later
than five (5) business days after the date of the employee’s termination of employment.

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	 	(3)  	For purpose of determinations under this Paragraph E, “Base Compensation” shall mean:

	 	(a)  	for salaried employees, the employee’s annual base salary at
the rate in effect on his or her termination date or, if greater, the rate in
effect on the date immediately preceding the Change in Control.
	 
	 	(b)  	for employees whose compensation is determined in whole or in
part on the basis of commission income, the employee’s base salary at
termination (or, if greater, the base salary on date immediately preceding the
effective date of the Change in Control), if any, plus the commissions earned
by the employee in the twelve (12) full calendar months preceding his or her
termination date (or, if greater, the commissions earned in the twelve (12)
full calendar months immediately preceding the effective date of the Change in
Control).
	 
	 	(c)  	for hourly employees, the employee’s total hourly wages for the
twelve (12) full calendar months preceding his or her termination date or, if
greater, the twelve (12) full calendar months preceding the effective date of
the Change in Control.

F. Withholding.

     All payments will be subject to customary withholding for federal, state and local tax
purposes.

G. Parachute Payment.

     Notwithstanding anything in this Plan to the contrary, if a benefit to a employee who is a
“Disqualified Individual” shall be in an amount which includes an “Excess Parachute Payment” taking
into account payments under this Plan and otherwise, the benefit under this Plan to that employee
shall be reduced to the maximum amount which does not include an Excess Parachute Payment. The
terms “Disqualified Individual” and “Excess Parachute Payment” shall have the same meanings as
under Section 280G of the Internal Revenue Code of 1986, as amended, or any successor provision
thereto.

H. Adoption by Affiliates.

     Upon approval by the Board of Directors of the Bank, this Plan may be adopted by any
“Subsidiary” or “Parent” of the Bank. Upon such adoption, the Subsidiary or Parent shall become an
Employer hereunder and the provisions of the Plan shall be fully applicable to the Employees of
that Subsidiary or Parent. The term “Subsidiary” means any corporation in which the Bank, directly
or indirectly, holds a majority of the voting power of its outstanding shares of capital stock.
The term “Parent” means any corporation which holds a majority of the voting power of the Bank’s
outstanding shares of capital stock.

I. Administration.

     The Plan is administered by the Board of Directors of the Bank, which shall have the
discretion to interpret the terms of the Plan and to make all determinations about eligibility and
payment of benefits. All decisions of the Board, any action taken by the Board with respect to the
Plan and within the powers granted to the Board under the Plan, and any interpretation by the Board
of any term or condition of the Plan, are conclusive and binding on all persons, and will be given
the maximum possible deference allowed by law. The Board may delegate and reallocate any authority
and responsibility with respect to the Plan.

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J. Source of Payments.

     All amounts payable under the Plan will be paid in cash from the general funds of the Bank; no
separate fund will be established under the Plan; and the Plan will have no assets.

K. Inalienability.

     In no event may any Employee sell, transfer, anticipate, assign or otherwise dispose of any
right or interest under the Plan. At no time will any such right or interest be subject to the
claims of creditors, nor liable to attachment, execution or other legal process.

L. Governing Law.

     The provisions of the Plan will be construed, administered and enforced in accordance with the
laws of the State of New Jersey, except to the extent that federal law applies.

M. Severability.

     If any provision of the Plan is held invalid or unenforceable, its invalidity or
unenforceability will not affect any other provision of the Plan, and the Plan will be construed
and enforced as if such provision had not been included.

N. No Employment Rights.

     Neither the establishment nor the terms of this Plan shall be held or construed to confer upon
any employee the right to a continuation of employment by the Bank, nor constitute a contract of
employment, express or implied. The Bank reserves the right to dismiss or otherwise deal with any
employee to the same extent and on the same basis as though this Plan had not been adopted. Nothing
in this Plan is intended to alter the at-will status of the Bank’s employees, it being understood
that, except to the extent otherwise expressly set forth to the contrary in an individual
employment-related agreement, the employment of any employee may be terminated at any time by
either the Bank or the employee with or without cause.

O. Amendment and Termination.

     The Plan may be terminated or amended in any respect by resolution adopted by a majority of
the Board of Directors of the Bank, unless a Change in Control has previously occurred. If a
Change in Control occurs, the Plan no longer shall be subject to amendment, change, substitution,
deletion, revocation or termination in any respect whatsoever. The form of any proper amendment or
termination of the Plan shall be a written instrument signed by a duly authorized officer or
officers of the Bank, certifying that the amendment or termination has been approved by the Board
of Directors. A proper amendment of the Plan automatically shall effect a corresponding amendment
to each Participant’s rights hereunder. A proper termination of the Plan automatically shall
effect a termination of all employees’ rights and benefits hereunder.

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Exhibit 10.30

CONSULTING AGREEMENT

1. Identification 

     This Consulting Agreement (the “Agreement”), dated February 18, 2005, is entered into by and
between Yardville National Bancorp, a New Jersey-chartered corporation (“Company”), and Lawrence
Seidman, an independent contractor (“Consultant”).

2. Recitals 

     2.1. Consultant has experience in the businesses in which the Company and its wholly owned
subsidiary, The Yardville National Bank (the “Bank”), are engaged.

     2.2. The Company desires to engage Consultant as an independent contractor to render advice
and guidance in connection with the business of the Company.

3. Term 

     3.1. Subject to the terms and conditions set forth in Article 7 and elsewhere herein,
Consultant’s service under this Agreement shall commence on the date hereof and expire at the close
of business on January 31, 2006 (the “Term”).

4. General Terms 

     4.1. Nature of Agreement. The parties acknowledge and agree that Consultant will be retained
by the Company as an independent contractor, and not as an employee. Consultant’s duties will be
limited to those assigned to him by the Company’s management. Consultant shall be subject to all
securities laws and regulations applicable to consultants of this nature, which includes, but is
not limited to, disclosure and insider trading laws and regulations.

     4.2. Duties and Services. During the Term and on a non-exclusive basis, Consultant agrees to
perform such reasonable consulting services in the areas of acquisition and growth opportunities,
as requested by management of the Company. Consultant shall not be entitled to attend meetings
with the Company’s management or the Board of Directors unless Consultant’s presence is requested
by the Company. The Company shall provide Consultant with such information and documentation that
it deems, in its sole discretion, applicable to the services requested of the Consultant. The
contact individuals at the Company for the Consultant shall be Patrick M. Ryan, President/CEO and,
in his absence, Patrick L. Ryan, SVP/Strategic Planning Officer. Except as specifically set forth
herein, or as directed by the Company, it is agreed that Consultant shall have no authority to act
on behalf of the Company or the Bank.

     4.3. Board Seat. The Company will consider Consultant for a future Board seat in accordance
with Company policies regarding nominations and nomination criteria.

5. Compensation

     5.1. Compensation for Services. Subject to Consultant’s adherence to the terms and conditions
of this Agreement, Consultant shall be paid a retainer amount equal to $20,000 payable in
installments of $5,000 at the end of each quarter of fiscal 2005. Additionally, subject to the
terms and conditions of this Agreement, Consultant shall be paid a monthly fee of $1,000 during the
twelve (12) months of the Term. The first monthly payment shall be due on the effective date of
this Agreement and subsequent payments shall be made on the first day of the next eleven (11)
months thereafter (or the first business day next following such date) until a total of twelve (12)
payments are made to Consultant.

Notwithstanding any other provision of this Agreement, if the Agreement is terminated prior to the
expiration of the Term, Consultant shall only be entitled to compensation to the extent provided in
Article 7.

     5.2. No Withholding. Because Consultant is retained as the Company’s independent contractor
and not as an employee, the Company and Consultant acknowledge and agree that no federal or state
taxes, social security contributions or other deductions shall be made by the Company from the
payments made to Consultant pursuant to

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this Article 5, and that Consultant will remain solely liable for the payment of all such
taxes. Consultant further acknowledges that the Company will report compensation paid pursuant to
this Agreement on a Form 1099 at the end of each year in which Consultant’s services were provided.
Consultant expressly covenants to make such tax payments as may be required by applicable law and
to indemnify and hold the Company and the Bank harmless from and against any liability the Company
or the Bank may incur as a consequence of Consultant’s failure to make such payments.

6. Benefits 

     6.1. No Additional Benefits. Consultant shall receive no additional benefits hereunder, and
Consultant acknowledges that the Company shall not be responsible for providing Consultant with
health insurance, pension benefits or any other benefits.

7. Termination 

     7.1. This Agreement shall terminate in the following circumstances:

(a) Upon the death of Consultant;

(b) Upon the termination of Consultant by the Company with Cause; or

(c) By mutual agreement of the parties hereto.

     7.2. For purposes of this Agreement, termination for “Cause” shall mean termination of
Consultant’s services by the Company on account of (i) fraud, misappropriation or embezzlement by
Consultant in connection with the business of the Company; (ii) violation of any law, rule or
regulation (other than traffic offenses or similar offenses) that would reflect adversely on the
Company, any felony conviction, any violation of law involving moral turpitude, or any violation of
securities law; or (iii) a breach of the provisions of this Agreement.

     7.3. Upon the termination of this Agreement, Consultant shall be entitled only to compensation
paid through such date, and to no other payments or benefits.

8. Confidential Information; Non-Use; Restrictions 

     8.1. Non-Disclosure of Confidential Information. As used herein, “Confidential Information”
means any and all information affecting or relating to the business of the Company or the Bank,
including without limitation, financial data, customer lists and data, licensing arrangements,
business strategies, pricing information or product development materials. “Confidential
Information” does not include information that is in the public domain, information that is
generally known in the trade, or information that Consultant can prove he acquired wholly
independently of his relationship with the Company. Consultant shall not, at any time during the
Term or thereafter, directly or indirectly, disclose or furnish to any other person, firm or
corporation any Confidential Information, except as required by a subpoena (in which event
Consultant shall give prior written notice to the Company and shall cooperate with the Company and
Company’s counsel in complying with such legal requirements). Promptly upon the expiration or
termination of Consultant’s engagement hereunder for any reason or whenever the Company so
requests, Consultant shall surrender to the Company all documents, drawings, work papers, lists,
memoranda, records and other data (including all copies) constituting or pertaining in any way to
any of the Confidential Information.

     8.2. Non-Use. Consultant shall not, during the Term or thereafter, solicit or cause to be
solicited the disclosure of, or use or disclose, any Confidential Information for any purpose
whatsoever.

     8.3. Restrictions. During the Term, Consultant will not support, initiate or participate in
any litigation or proxy contest against the Company or the Bank.

9. Obligation Regarding Voting 

     9.1. Obligation Regarding Voting. To the extent permitted by law, Consultant must vote or
cause to be voted Company stock beneficially owned by Consultant in favor of Company proposals and
Company nominees during the Term. The obligations of this Section 9.1 shall terminate upon
termination of this Agreement.

10. Publicity 

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     10.1 Publicity. Promptly upon the execution and delivery of this Agreement, the Company shall
issue a press release disclosing the material terms and provisions of this Agreement, which press
release shall be subject to the prior review and comment of the Consultant.

11. Public Statements; Litigation

     11.1. Public Statements; Litigation. Unless required by law or court order, from and after
the date hereof, until and through the Term, Consultant shall not, directly or indirectly:

     (a) make any statement (except as to capital or equity raises in excess of
$15,000,000.00), public or otherwise, in opposition to, or that would reflect negatively
against, the Company or the Bank, the Board of Directors of the Company or the Bank, or any
of the officers of the Company or the Bank;

     (b) cause, discuss, cooperate or otherwise aid in the preparation of any press release
or other publicity other than filings required by securities laws concerning the Company or
the Bank or its operations without prior approval of the Company unless required by law, in
which case notice of such requirement shall be given to the Company;

     (c) directly or indirectly participate or act in concert with any affiliate, group or
other person to participate, by encouragement or otherwise, in any litigation against the
Company or the Bank, or any of their respective officers or directors; or

     (d) provide, or act in concert with any person to provide, any funds or services, to
any person in support of any activity by such person that would be a violation of the
provisions of this Section 11 if undertaken by the Consultant.

12. Breach; Restriction 

     12.1. Breach of Provisions. In the event that Consultant shall breach any of the provisions
of this Agreement, or in the event that any such breach is threatened by Consultant, in addition to
and without limiting or waiving any other remedies available to the Company at law or in equity,
the Company shall be entitled to immediate injunctive relief in any court, domestic or foreign,
having the capacity to grant such relief, without the necessity of posting a bond, to restrain any
such breach or threatened breach and to enforce the provisions of this Agreement. Consultant
acknowledges and agrees that there is no adequate remedy at law for any such breach or threatened
breach and, in the event that any action or proceeding is brought seeking injunctive relief,
Consultant shall not use as a defense thereto that there is an adequate remedy at law. If such
action for injunctive relief is brought by the Company, the prevailing party in such action shall
be entitled to reimbursement of its reasonable attorney’s fees and court costs from the other
party.

     12.2. Reasonable Restrictions. The parties acknowledge that the foregoing restrictions, as
set forth in Articles 8, 9, 10 and 11 are under all of the circumstances reasonable and necessary
for the protection of the Company and its businesses.

13. Miscellaneous 

     13.1. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective legal representatives, heirs, distributees, successors and
assigns; provided that the rights and obligations of the parties hereto shall not be assignable.

     13.2. Notices. Any notice provided for herein shall be in writing and shall be deemed to have
been given or made when personally delivered or three (3) days following deposit for mailing by
first class registered or certified mail, return receipt requested, or if delivered by facsimile
transmission, upon confirmation of receipt of the transmission, to the Consultant, at his address
maintained in the records of the Company, or, to the Company, at its executive offices.

     13.3. Severability. If any provision of this Agreement, or portion thereof, shall be held

invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability
shall attach only to such provision or portion thereof, and shall not in any manner affect or
render invalid or unenforceable any other provision of this Agreement or portion thereof, and this
Agreement shall be carried out as if any such invalid or unenforceable provision or portion thereof
were not contained herein. In addition, any such invalid or unenforceable provision or portion
thereof shall be deemed, without further action on the part of the parties hereto, modified,
amended or limited to the extent necessary to render the same valid and enforceable.

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     13.4. Enforcement. The parties may seek, from a court of competent jurisdiction, provisional
remedies or injunctive relief in support of their respective rights and remedies hereunder.

     13.5. Waiver. No waiver by a party hereto of a breach or default hereunder by the other party
shall be considered valid unless in writing signed by such first party, and no such waiver shall be
deemed a waiver of any subsequent breach or default of the same or any other nature.

     13.6. Entire Agreement. This Agreement sets forth the entire agreement between the parties
with respect to the subject matter hereof, and supersedes any and all prior agreements or
understanding between the Company and Consultant, whether written or oral, fully or partially
performed relating to any or all matters covered by and contained or otherwise dealt with in this
Agreement.

     13.7. Amendment. No modification, change or amendment of this Agreement or any of its
provisions shall be valid unless in writing and signed by the party against whom such claimed
modification, change or amendment is sought to be enforced.

     13.8. Applicable Law. This Agreement, and all of the rights and obligations of the parties in
connection with the employment relationship established hereby, shall be governed by and construed
in accordance with the substantive laws of the State of New Jersey without giving effect to
principles relating to conflicts of law. If there is a lawsuit, the parties agree to submit to the
jurisdiction of the Courts of Mercer County, New Jersey.

     13.9. Counterparts. Thus Agreement may be executed in counterparts, each of which shall be
deemed an original, and all of which together shall constitute one and the same instrument.

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

	 	 	 	 	 
	           Attest:

	 	 	 	           YARDVILLE NATIONAL BANCORP
	 
	 	 	 	 
	Daniel J. O’Donnell

	 	By:
	 	Patrick M. Ryan
	 

	 	 	 	 
	

	 	Title:
	 	President/CEO

	 	 	 
	

	 	CONSULTANT
	 
	 	 
	Sonia Seidman

	 	Lawrence Seidman
	 

	 	 
	Witness

	 	Lawrence Seidman

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