Document:

exv10w5

 

Exhibit 10.5

INDEPENDENCE COMMUNITY BANK AMENDED AND

RESTATED CHANGE IN CONTROL SEVERANCE PLAN

AMENDED BY THE BOARD OF DIRECTORS

APRIL 22 ND, 2005

ARTICLE I

ESTABLISHMENT OF THE PLAN

     Independence Community Bank (the “Bank”) hereby establishes the Amended and Restated Change in
Control Severance Plan (the “Plan”).

ARTICLE II

PURPOSE OF THE PLAN; ELIGIBILITY TO PARTICIPATE

     2.01 Purpose of the Plan. The purpose of this Plan is provide certain specified benefits to
certain Covered Officers as hereinafter defined and as provided herein whose employment is
terminated in connection with or subsequent to a Change in Control of the Bank’s parent
corporation, Independence Community Bank Corp. (the “Corporation”) (the Bank and the Corporation
are hereinafter collectively referred to as the “Employer”).

     2.02 Eligibility to Participate. Those officers of the Bank who meet the definition of Covered
Officer, as defined herein, shall be eligible to participate in this Plan. A listing of all
eligible Covered Officers is attached hereto as Appendix A.

ARTICLE III

DEFINITIONS

     3.01 Annual Compensation. A Covered Officer’s “Annual Compensation” for purposes of this Plan
shall be deemed to mean the aggregate base salary and incentive compensation (whether cash or
equity based as provided herein) earned by or paid to the Covered Officer by the Employer or any
subsidiary thereof during the calendar year immediately preceding the calendar year in which the
Date of Termination occurs. Notwithstanding the foregoing, for purposes of this Plan, a Covered
Officer’s Annual Compensation does not include deferred compensation earned by the Covered Officer
in a prior year but received in the calendar year immediately preceding the calendar year in which
the Date of Termination occurs. In addition, for purposes of this Agreement, “incentive
compensation” shall include both cash and equity-based incentive compensation; provided, however,
that for purposes of this Plan equity-based incentive compensation shall only include grants of
restricted share awards (“Restricted Share Incentive Awards”) resulting from incentive compensation
awards under the Executive Management Incentive Compensation Plan or the Officers Incentive
Compensation Plan (the “Incentive Plans”) and not options and restricted stock awards granted
pursuant to the 1998 Stock Option Plan, the 1998 Recognition and Retention Plan and Trust Agreement
or

 

 

the 2002 and 2005 Stock Incentive Plans (collectively, the “Equity Plans”)
except to the extent that any such Restricted Share Incentive Awards are granted under said
Equity Plans solely as a result of incentive awards made pursuant to the terms of the Incentive
Plans or any successors thereto; provided, further, that in the event that at the time of
termination the equity-based portion of an incentive compensation grant has not fully vested,
solely for purposes of calculating a Covered Officer’s Annual Compensation in order to determine
the amount of severance due such Covered Officer pursuant to the terms of Section 4.01 hereof, such
unvested Restricted Share Incentive Award shall be deemed to have been vested and paid as of the
end of the calendar year immediately preceding the calendar year in which the Date of Termination
occurs. For purposes of determining the value of the Restricted Share Incentive Award deemed
vested as of the end of the calendar year immediately preceding the calendar year in which the Date
of Termination occurs in order to determine the severance due a Covered Officer hereunder, the
number of shares subject to the Restricted Share Incentive Award shall be multiplied by the fair
market value of a share of common stock of the Corporation, determined as of the date of the grant
of the Restricted Share Incentive Award.

     3.02 Cause. Termination of a Covered Officer’s employment for “Cause” shall mean termination
because of 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 final
cease-and-desist order. For purposes of this paragraph, no act or failure to act on the Covered
Officer’s part shall be considered “willful” unless done, or omitted to be done, by the Covered
Officer not in good faith and without reasonable belief that the Covered Officer’s action or
omission was in the best interests of the Employer.

     3.03 Change in Control of the Corporation. “Change in Control of the Corporation” shall mean the
occurrence of any of the following: (i) the acquisition of control of the Corporation as defined
in 12 C.F.R. §574.4, unless a presumption of control is successfully rebutted or unless the
transaction is exempted by 12 C.F.R. §574.3(c)(vii), or any successor to such sections; (ii) an
event that would be required to be reported in response to Item 5.01 of Form 8-K or Item 6(e) of
Schedule 14A of Regulation 14A pursuant to the Securities Exchange Act of 1934, as amended
(“Exchange Act”), or any successor thereto, whether or not any class of securities of the
Corporation is registered under the Exchange Act; (iii) any “person” (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation
representing 20% or more of the combined voting power of the Corporation’s then outstanding
securities; or (iv) during any period of 36 consecutive months, individuals who at the beginning of
such period constitute the Board of Directors of the Corporation cease for any reason to constitute
at least a majority thereof unless the election, or the nomination for election by stockholders, of
each new director was approved by a vote of at least two-thirds of the directors then still in
office who were directors at the beginning of the period.

     3.04 Code. “Code” shall mean the Internal Revenue Code of 1986, as amended.

     3.05
Committee. “Committee” means a committee of two or more directors appointed by the Board
pursuant to Article VII hereof.

 

 

     3.06 Covered Officer. “Covered Officer” shall mean: (1) an Officer of the Employer, including
wholly owned subsidiaries thereof, whose date of hire is on or before December 31st,
2004 and who achieved the level of Officer, as defined herein, on or before March
31st, 2005; or (2) an Officer designated as eligible to participate in this Plan by the
Committee.

     3.07 Covered Officer’s Severance Period. “Covered Officer’s Severance Period” shall mean the
period of time in years for which severance benefits are payable to a Covered Officer as provided
in Appendix A attached hereto.

     A Covered Officer’s Severance Period shall be frozen at the level in effect as of March
31st, 2005 regardless of any change in the Covered Officer’s official title subsequent
to that date.

     3.08 Date of Termination. “Date of Termination” shall mean (i) if a Covered Officer’s employment
is terminated for Cause, the date on which the Notice of Termination is given, and (ii) if a
Covered Officer’s employment is terminated for any other reason, the date specified in the Notice
of Termination.

     3.09 Disability. Termination by the Employer of a Covered Officer’s employment based on
“Disability” shall mean termination because of any physical or mental impairment which qualifies
the Covered Officer for disability benefits under the applicable long-term disability plan
maintained by the Employer or any subsidiary or, if no such plan applies, which would qualify the
Covered Officer for disability benefits under the Federal Social Security System.

     3.10
Employee. “Employee” shall mean any person, including a Covered Officer, employed by the
Employer on a salaried basis. A person employed by the Employer on a hourly, commission or fee
basis or similar arrangement shall not be considered an Employee for purposes of this Plan.

     3.11 Good Reason. Termination by a Covered Officer of the Covered Officer’s employment for “Good
Reason” shall mean termination by the Covered Officer within twelve months following a Change in
Control of the Corporation based on:

     (i) Without the Covered Officer’s express written consent, a reduction of ten percent (10%) or
more in the Covered Officer’s base salary as in effect immediately prior to the date of the Change
in Control of the Corporation;

     (ii) Any relocation of the Covered Officer’s principal site of employment to a location more
than fifty (50) miles from the business location of the Covered Officer as of the date of the
Change in Control; or

     (iii) Any purported termination of the Covered Officer’s employment for Disability or
Retirement which is not effected pursuant to a Notice of Termination satisfying the requirements of
Section 3.13 below.

     3.12 IRS. “IRS” shall mean the Internal Revenue Service.

     3.13 Notice of Termination. Any purported termination of a Covered Officer’s employment by the
Employer for any reason or by a Covered Officer for any reason, including without limitation for
Good Reason, shall be communicated by written “Notice of Termination” to the other party hereto.

 

 

For purposes of this Plan, a “Notice of Termination” shall mean a dated notice which (i) indicates
the specific termination provision in this Plan relied upon, (ii) sets forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of the Covered Officer’s
employment under the provision so indicated, (iii) specifies a Date of Termination, which shall be
not less than thirty (30) nor more than ninety (90) days after such Notice of Termination is given,
except in the case of the Employer’s termination of the Covered Officer’s employment for Cause,
which shall be effective immediately; and (iv) is given in the manner specified in Article VIII
hereof.

     3.14 Officer. “Officer” shall mean any Employee of the Employer having the title of Vice President
or more senior title who is neither at the Job Group 1 officer level nor a party to a severance or
employment agreement with the Employer that is in effect as of the date of the Notice of
Termination. Officers who are hired at or who attain the Job Group 1 officer level shall not
participate in this Plan but shall participate in the Independence Community Bank Job Group 1
Change in Control Severance Plan adopted April 22, 2005.

     3.15 Retirement. “Retirement” shall mean voluntary termination by the Covered Officer in
accordance with the Employer’s retirement policies, including early retirement, generally
applicable to their salaried employees.

ARTICLE IV

BENEFITS

     4.01 Payments and Benefits Upon Termination. Except as provided herein, no Covered Officer or
Employee shall be eligible to participate or be entitled to payment of a benefit pursuant to this
Plan. If a Covered Officer’s employment is terminated subsequent to a Change in Control of the
Corporation by (i) the Employer for other than Cause, Disability, Retirement or the Covered
Officer’s death or (ii) the Covered Officer for Good Reason, then the Employer shall:

	 	(a)	 	Pay to the Covered Officer a cash severance amount (“Cash Severance Payment”)
equal to the aggregate of the following for the Covered Officer’s Severance Period:

	 	(i)	 	the Covered Officer’s Annual Compensation;
	 
	 	(ii)	 	the present value of the cost of providing
the Covered Officer with coverage under the Bank’s medical and
dental insurance plans.

                    Such Cash Severance Payment shall be subject to reduction as provided in subsections 4.01(b)
and (c) hereof.

	 	(b)	 	Notwithstanding anything to the contrary herein, the Cash Severance Payment
shall be reduced in accordance with the number of whole months that the Covered Officer
continues to be employed by the Employer or the successor thereto subsequent to a
Change in Control of the Corporation.
	 
	 	 	 	For example, should the Covered Officer’s Severance Period be equal to 2 years or 24
months, but the covered Officer continues to be employed for six months following a
Change in Control of

 

 

	 	 	 	the Corporation, then his or her Cash Severance Payment shall be equal to a one and
one-half year (18 months) payment rather than two years (24 months).

     (c) If the Cash Severance Payment pursuant to Sections 4.01 (a) and (b) hereof, either alone
or together with other payments and benefits which the Covered Officer has the right to receive
from the Employer, would constitute a “parachute payment” under Section 280G of the Code, the
payment by the Bank pursuant to this Section 4.01 hereof shall be further reduced, by the amount,
if any, which is the minimum necessary to result in no portion of the Cash Severance Payment by the
Bank under Section 4.01 being non-deductible to the Bank pursuant to Section 280G of the Code and
subject to the excise tax imposed under Section 4999 of the Code. The determination of any
reduction in the Cash Severance to be made pursuant to this Section 4.01 shall be based upon the
opinion of independent counsel selected by the Bank’s independent public accountants and paid by
the Bank. Such counsel shall be reasonably acceptable to the Bank and the Covered Officer; shall
promptly prepare the foregoing opinion, but in no event later than thirty (30) days from the Date
of Termination; and may use such actuaries as such counsel deems necessary or advisable for the
purpose.

     (d) Nothing contained herein shall result in a reduction of any payments or benefits to which
the Covered Officer may be entitled upon termination of employment under any circumstances other
than as specified in Sections 4.01(b) and 4.01(c) set forth above, or a reduction in the payments
and benefits specified in this Section 4.01 below zero.

     4.02 Mitigation; Exclusivity of Benefits.

     (a) A Covered Officer shall not be required to mitigate the amount of any benefits hereunder
by seeking other employment or otherwise, nor shall the amount of any such benefits be reduced by
any compensation earned by the Covered Officer as a result of employment by another employer after
the Date of Termination or otherwise.

     (b) The specific arrangements referred to herein are not intended to exclude any other
benefits which may be available to a Covered Officer upon a termination of employment with the
Employer pursuant to employee benefit plans of the Employer or otherwise.

     4.03 Withholding. All payments required to be made by the Employer hereunder to the Covered
Officer shall be subject to the withholding of such amounts, if any, relating to tax and other
payroll deductions as the Employer may reasonably determine should be withheld pursuant to any
applicable law or regulation.

ARTICLE V

ASSIGNMENT

     The Employer may assign this Plan and its rights and obligations hereunder in whole, but not
in part, to any corporation, bank or other entity with or into which the Bank or the Corporation
may hereafter merge or consolidate or to which the Bank or the Corporation may transfer all or
substantially all of its respective assets, if in any such case said corporation, bank or other
entity shall by operation of law or expressly in

 

 

writing assume all obligations of the Employer hereunder as fully as if it had been originally made
a party hereto, but may not otherwise assign this Plan or their rights and obligations hereunder.
A Covered Officer may not assign or transfer any rights or benefits due hereunder.

ARTICLE VI

DURATION AND EFFECTIVE DATE OF PLAN

     6.01 Duration. Except in the event of a Change in Control of the Corporation, this Plan is subject
to change or termination, in whole or in part, at any time without notice, in the Board’s sole
discretion. In the event of a Change in Control of the Corporation, this Plan may not be
terminated or amended to reduce the benefits provided hereunder for a period of one (1) years from
the date of the Change in Control of the Corporation.

     6.02 Effective Date. This Plan shall be effective as October 1, 1998.

ARTICLE VII

ADMINISTRATION

     7.01 Duties of the Committee. The Plan shall be administered and interpreted by the
Committee, as appointed from time to time by the Board of Directors of the Bank pursuant to
Section 7.02. The Committee shall have the authority to adopt, amend and rescind such rules,
regulations and procedures as, in its opinion, may be advisable in the administration of the
Plan, including, without limitation, rules, regulations and procedures with respect to the
operation of the Plan. The interpretation and construction by the Committee of any provisions
of the Plan, any rule, regulation or procedure adopted by it pursuant thereto shall be final and
binding in the absence of action by the Board of Directors of the Bank.

     7.02 Appointment and Operation of the Committee. The members of the Committee shall be appointed
by, and will serve at the pleasure of, the Board of Directors of the Bank. The Board from time to
time may remove members from, or add members to, the Committee, provided the Committee
shall continue to consist of two or more members of the Board. The Committee shall act by vote
or written consent of a majority of its members. Subject to the express provisions and limitations
of the Plan, the Committee may adopt such rules, regulations and procedures as it deems
appropriate for the conduct of its affairs. It may appoint one of its members to be
chairman and any person, whether or not a member, to be its secretary or agent. The Committee
shall report its actions and decisions to the Board at appropriate times but in no event less
than one time per calendar year.

     7.03 Limitation on Liability. Neither the members of the Board of Directors of the Bank nor
any member of the Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any rule, regulation or procedure adopted by it pursuant thereto. If a
member of the Board or the Committee is a party or is threatened to be made a party to any
threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative, by reason of anything done or not done by him in such capacity
under or with respect to the Plan, the Bank shall, subject to the requirements of applicable laws
and

 

 

regulations, indemnify such member against all liabilities and expenses (including attorneys’
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him in
connection with such action, suit or proceeding if he acted in good faith and in a manner he
reasonably believed to be in the best interests of the Bank and, with respect to any criminal
action or proceeding, had no reasonable cause to believe his conduct was unlawful.

ARTICLE VIII

MISCELLANEOUS

     8.01 Notice. For the purposes of this Plan, notices and all other communications provided for in
this Plan shall be in writing and shall be deemed to have been duly given when delivered or mailed
by certified or registered mail, return receipt requested, postage prepaid, addressed, with respect
to the Bank, Secretary, Independence Community Bank, 195 Montague Street, 12th Floor, Brooklyn, New
York 11201, and with respect to a Covered Officer, to the home address thereof set forth in the
records of the Bank at the date of any such notice.

     8.02 Governing Law. The validity, interpretation, construction and performance of this Plan shall
be governed by the laws of the United States where applicable and otherwise by the substantive laws
of the State of New York.

 

 

     8.03 Nature of Employment and Obligations.

     (a) Nothing contained herein shall be deemed to create other than a terminable at will
employment relationship between the Employer and a Covered Officer, and the Employer may terminate
the Covered Officer’s employment at any time, subject to providing any of the benefits specified
herein in accordance with the terms hereof.

     (b) Nothing contained herein shall create or require the Employer to create a trust of any
kind to fund any benefits which may be payable hereunder, and to the extent that the Covered
Officer acquires a right to receive benefits from the Employer hereunder, such right shall be no
greater than the right of any unsecured general creditor of the Employer.

     8.04 Headings. The section headings contained in this Plan are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Plan.

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

     8.06 Regulatory Prohibition. Notwithstanding any other provision of this Plan to the contrary, any
payments made to a Covered Officer pursuant to this Plan, or otherwise, are subject to and
conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act (12
U.S.C. §1828(k)) and the regulations promulgated thereunder, including 12 C.F.R. Part 359.exv10w25

 

Exhibit 10.25

INDEPENDENCE COMMUNITY BANK

JOB GROUP 1 CHANGE IN CONTROL SEVERANCE PLAN

ADOPTED
APRIL 22 ND, 2005

ARTICLE I

ESTABLISHMENT OF THE PLAN

     Independence Community Bank (the “Bank”) hereby establishes the Job Group 1 Change in
Control Severance Plan (the “Plan”).

ARTICLE II

PURPOSE OF THE PLAN

     The purpose of this Plan is to provide certain specified benefits to certain Officers as
provided herein whose employment is terminated in connection with or subsequent to a Change in
Control of the Bank’s parent corporation, Independence Community Bank Corp. (the “Corporation”)
(the Bank and the Corporation are hereinafter collectively referred to as the “Employer”).

ARTICLE III

DEFINITIONS

     3.01 Annual Compensation. An Officer’s “Annual Compensation” for purposes of this Plan
shall be deemed to mean the aggregate base salary and incentive compensation (whether cash or
equity based as provided herein) earned by or paid to the Officer by the Employer or any subsidiary
thereof during the calendar year immediately preceding the calendar year in which the Date of
Termination occurs. Notwithstanding the foregoing, for purposes of this Plan, an Officer’s Annual
Compensation does not include deferred compensation earned by the Officer in a prior year but
received in the calendar year immediately preceding the calendar year in which the Date of
Termination occurs. In addition, for purposes of this Agreement, “incentive compensation” shall
include both cash and equity-based incentive compensation; provided, however, that for purposes of
this Plan equity-based incentive compensation shall only include grants of restricted share awards
(“Restricted Share Incentive Awards”) resulting from incentive compensation awards under the
Executive Management Incentive Compensation Plan or the Officers Incentive Compensation Plan (the
“Incentive Plans”) and not options and restricted stock awards granted pursuant to the 1998 Stock
Option Plan, the 1998 Recognition and Retention Plan and Trust Agreement or the 2002 and 2005 Stock
Incentive Plans (collectively, the “Equity Plans”) except to the extent that any such Restricted
Share Incentive Awards are granted under said Equity Plans solely as a result of incentive awards
made pursuant to the terms of the Incentive Plans or any successors thereto; provided, further,
that in the event that at the time of termination the equity-based portion of

 

 

an incentive compensation grant has not fully vested, solely for purposes of calculating an
Officer’s Annual Compensation in order to determine the amount of severance due such Officer
pursuant to the terms of Section 4.01 hereof, such unvested Restricted Share Incentive Award shall
be deemed to have been vested and paid as of the end of the calendar year immediately preceding the
calendar year in which the Date of Termination occurs. For purposes of determining the value of
the Restricted Share Incentive Award deemed vested as of the end of the calendar year immediately
preceding the calendar year in which the Date of Termination occurs in order to determine the
severance due an Officer hereunder, the number of shares subject to the Restricted Share Incentive
Award shall be multiplied by the fair market value of a share of common stock of the Corporation,
determined as of the date of the grant of the Restricted Share Incentive Award.

     3.02 Cause. Termination of an Officer’s employment for “Cause” shall mean termination because of
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 final cease-and-desist order.
For purposes of this paragraph, no act or failure to act on the Officer’s part shall be considered
“willful” unless done, or omitted to be done, by the Officer not in good faith and without
reasonable belief that the Officer’s action or omission was in the best interests of the Employer.

     3.03 Change in Control of the Corporation. “Change in Control of the Corporation” shall mean the
occurrence of any of the following: (i) the acquisition of control of the Corporation as defined
in 12 C.F.R. §574.4, unless a presumption of control is successfully rebutted or unless the
transaction is exempted by 12 C.F.R. §574.3(c)(vii), or any successor to such sections; (ii) an
event that would be required to be reported in response to Item 5.01 of Form 8-K or Item 6(e) of
Schedule 14A of Regulation 14A pursuant to the Securities Exchange Act of 1934, as amended
(“Exchange Act”), or any successor thereto, whether or not any class of securities of the
Corporation is registered under the Exchange Act; (iii) any “person” (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act, but excluding any person who on the date hereof is a
director or officer of the Corporation) is or becomes the “beneficial owner” (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation
representing 20% or more of the combined voting power of the Corporation’s then outstanding
securities; (iv) the stockholders of the Corporation approve (or, in the event no approval of the
Corporation’s stockholders is required, the Corporation consummates) a merger, consolidation, share
exchange, division or other reorganization or transaction involving the Corporation (a “Fundamental
Transaction”) with any other corporation or entity, other than a Fundamental Transaction which
results in both (a) the voting securities of the Corporation outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) at least 50% of the combined voting power of the surviving
entity immediately after such Fundamental Transaction, and (b) the members of the Board of
Directors of the Corporation immediately prior thereto continuing to represent at least 50% of the
members of the Board of Directors of the surviving entity; or (v) during any period of 36
consecutive months, individuals who at the beginning of such period constitute the Board of
Directors of the Corporation cease for any reason to constitute at least a majority thereof unless
the election, or the nomination for election by stockholders, of each new director was approved by
a vote of

 

 

at least two-thirds of the directors then still in office who were directors at the beginning of
the period.

     3.04 Code. “Code” shall mean the Internal Revenue Code of 1986, as amended.

     3.05 Committee. “Committee” means a committee of two or more directors appointed by the Board
pursuant to Article VII hereof.

     3.06 Date of Termination. “Date of Termination” shall mean (i) if an Officer’s employment is
terminated for Cause, the date on which the Notice of Termination is given, and (ii) if an
Officer’s employment is terminated for any other reason, the date specified in the Notice of
Termination.

     3.07 Disability. Termination by the Employer of an Officer’s employment based on “Disability”
shall mean termination because of any physical or mental impairment which qualifies the Officer for
disability benefits under the applicable long-term disability plan maintained by the Employer or
any subsidiary or, if no such plan applies, which would qualify the Officer for disability benefits
under the Federal Social Security System.

     3.08 Employee. “Employee” shall mean any person, including an Officer, employed by the Employer on
a salaried basis. A person employed by the Employer on a hourly, commission or fee basis or
similar arrangement shall not be considered an Employee for purposes of this Plan.

     3.09 Good Reason. Termination by an Officer of the Officer’s employment for “Good Reason” shall
mean termination by the Officer within twelve months following a Change in Control of the
Corporation based on:

	 	(i)	 	Without the Officer’s express written consent, a reduction in
the Officer’s base salary as in effect immediately prior to the date of the
Change in Control of the Corporation or as the same may be increased from time
to time thereafter;
	 
	 	(ii)	 	Without the Officer’s express written consent, the assignment
of any duties or responsibilities which are substantially diminished as
compared with the Officer’s duties and responsibilities immediately prior to a
Change in Control of the Corporation or any removal of the Officer from or any
failure to re-elect the Officer to any of such responsibilities except in
connection with the termination of the Officer’s employment for Cause,
Disability or Retirement or as a result of the Officer’s death or by the
Officer other than for Good Reason;
	 
	 	(iii)	 	Any relocation of the Officer’s principal site of employment
to a location more than fifty (50) miles from the business location of the
Officer as of the date of the Change in Control; or
	 
	 	(iv)	 	Any purported termination of the Officer’s employment for
Disability or Retirement which is not effected pursuant to a Notice of
Termination satisfying the requirements of Section 3.11 below.

     3.10 IRS. “IRS” shall mean the Internal Revenue Service.

 

 

     3.11 Notice of Termination. Any purported termination of an Officer’s employment by the Employer
for any reason or by an Officer for any reason, including without limitation for Good Reason, shall
be communicated by written “Notice of Termination” to the other party hereto. For purposes of this
Plan, a “Notice of Termination” shall mean a dated notice which (i) indicates the specific
termination provision in this Plan relied upon, (ii) sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Officer’s employment under the
provision so indicated, (iii) specifies a Date of Termination, which shall be not less than thirty
(30) nor more than ninety (90) days after such Notice of Termination is given, except in the case
of the Employers’ termination of the Officer’s employment for Cause, which shall be effective
immediately; and (iv) is given in the manner specified in Article VIII hereof.

     3.12 Officer. “Officer” shall mean any Employee of the Employer at the Job Group 1 officer level
who is not a party to a severance or employment agreement with the Employer that is in effect as of
the date of the Notice of Termination.

     3.13 Officer’s Severance Period. “Officer’s Severance Period” shall mean the three-year period of
time, subject to reduction as provided in subsections 4.01(b) and 4.01(c), for which severance
benefits are payable to an Officer.

     3.14 Retirement. “Retirement” shall mean voluntary termination by the Officer in accordance with
the Employer’s retirement policies, including early retirement, generally applicable to their
salaried employees.

ARTICLE IV

BENEFITS

4.01 Payments and Benefits Upon Termination.

                    If the Officer’s employment is terminated subsequent to a Change in Control of the Corporation
by (i) the Employer for other than Cause, Disability, Retirement or the Officer’s death or (ii) the
Officer for Good Reason, then the Employer shall:

     (a) Pay to the Officer a cash severance amount equal to the aggregate of (i) three (3) times
the Officer’s Annual Compensation and (ii) the present value of the cost to the Corporation of
providing the Officer during the Severance Period, participation in the Bank’s medical and dental
insurance plans (“Cash Severance Payment”). Such Cash Severance Payment shall be subject to
reduction as provided in subsections 4.01 (b) and (c) hereof;

     (b) Notwithstanding anything to the contrary herein, the amount of Cash Severance Payment due
an Officer pursuant to the provisions of Section 4.01(a) shall be reduced in accordance with the
number of whole months that the Officer continues to be employed by the Employer or the successor
thereto subsequent to a Change in Control of the Corporation.

     For example, should an Officers Date of Termination occur six months subsequent to a Change in
Control of the Corporation, then his or her Cash Severance Payment shall be equal to two and
one-half years (30 months) Annual

 

 

Compensation, medical and dental benefits rather than three years (36 months).

     (c) If the payment pursuant to Sections 4.01 (a) and (b) hereof, either alone or together with
other payments and benefits which the Officer has the right to receive from the Employer, would
constitute a “parachute payment” under Section 280G of the Code, the payment by the Bank pursuant
to Section 4.01 hereof shall be further reduced, by the amount, if any, which is the minimum
necessary to result in no portion of the payments and benefits payable by the Bank under Section
4.01 being non-deductible to the Bank pursuant to Section 280G of the Code and subject to the
excise tax imposed under Section 4999 of the Code. The determination of any reduction in the
payment to be made pursuant to this Section 4.01 shall be based upon the opinion of independent
counsel selected by the Bank’s independent public accountants and paid by the Bank. Such counsel
shall be reasonably acceptable to the Bank and the Officer; shall promptly prepare the foregoing
opinion, but in no event later than thirty (30) days from the Date of Termination; and may use such
actuaries as such counsel deems necessary or advisable for the purpose.

     (d) Nothing contained herein shall result in a reduction of any payments or benefits to which
the Officer may be entitled upon termination of employment under any circumstances other than as
specified in Sections 4.01(b) and 4.01(c) set forth above, or a reduction in the payments and
benefits specified in this Section 4.01 below zero.

     4.02 Mitigation; Exclusivity of Benefits.

     (a) An Officer shall not be required to mitigate the amount of any benefits hereunder by
seeking other employment or otherwise, nor shall the amount of any such benefits be reduced by any
compensation earned by the Officer as a result of employment by another employer after the Date of
Termination or otherwise.

     (b) The specific arrangements referred to herein are not intended to exclude any other
benefits which may be available to an Officer upon a termination of employment with the Employer
pursuant to employee benefit plans of the Employer or otherwise.

     4.03 Withholding. All payments required to be made by the Employer hereunder to the Officer shall
be subject to the withholding of such amounts, if any, relating to tax and other payroll deductions
as the Employer may reasonably determine should be withheld pursuant to any applicable law or
regulation.

ARTICLE V

ASSIGNMENT

     The Employer may assign this Plan and its rights and obligations hereunder in whole, but
not in part, to any corporation, bank or other entity with or into which the Bank or the
Corporation may hereafter merge or consolidate or to which the Bank or the Corporation may transfer
all or substantially all of its respective assets, if in any such case said corporation, bank or
other entity shall by operation of law or expressly in writing assume all obligations of the
Employer hereunder as fully as if it

 

 

had been originally made a party hereto, but may not otherwise assign this Plan or their rights and
obligations hereunder. An Officer may not assign or transfer any rights or benefits due hereunder.

ARTICLE VI

DURATION AND EFFECTIVE DATE OF PLAN

     6.01 Duration. Except in the event of a Change in Control of the Corporation, this Plan is
subject to change or termination, in whole or in part, at any time without notice, in the Board’s
sole discretion. In the event of a Change in Control of the Corporation, this Plan may not be
terminated or amended to reduce the benefits provided hereunder for a period of one (1) year from
the date of the Change in Control of the Corporation.

     6.02 Effective Date. This Plan shall be effective as April 22nd, 2005.

ARTICLE VII

ADMINISTRATION

     7.01 Duties of the Committee. The Plan shall be administered and interpreted by the
Committee, as appointed from time to time by the Board of Directors of the Bank pursuant to
Section 7.02. The Committee shall have the authority to adopt, amend and rescind such rules,
regulations and procedures as, in its opinion, may be advisable in the administration of the
Plan, including, without limitation, rules, regulations and procedures with respect to the
operation of the Plan. The interpretation and construction by the Committee of any provisions
of the Plan, any rule, regulation or procedure adopted by it pursuant thereto shall be final and
binding in the absence of action by the Board of Directors of the Bank.

     7.02 Appointment and Operation of the Committee. The members of the Committee shall be appointed
by, and will serve at the pleasure of, the Board of Directors of the Bank. The Board from time to
time may remove members from, or add members to, the Committee, provided the Committee
shall continue to consist of two or more members of the Board. The Committee shall act by vote
or written consent of a majority of its members. Subject to the express provisions and limitations
of the Plan, the Committee may adopt such rules, regulations and procedures as it deems
appropriate for the conduct of its affairs. It may appoint one of its members to be
chairman and any person, whether or not a member, to be its secretary or agent. The Committee
shall report its actions and decisions to the Board at appropriate times but in no event less
than one time per calendar year.

     7.03 Limitation on Liability. Neither the members of the Board of Directors of the Bank nor
any member of the Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any rule, regulation or procedure adopted by it pursuant thereto. If a
member of the Board or the Committee is a party or is threatened to be made a party to any
threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative, by reason of anything done or not done by him in such capacity
under or with respect to the Plan, the Bank shall, subject to the requirements of applicable laws
and

 

 

regulations, indemnify such member against all liabilities and expenses (including attorneys’
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him in
connection with such action, suit or proceeding if he acted in good faith and in a manner he
reasonably believed to be in the best interests of the Bank and, with respect to any criminal
action or proceeding, had no reasonable cause to believe his conduct was unlawful.

ARTICLE VIII

MISCELLANEOUS

     8.01 Notice. For the purposes of this Plan, notices and all other communications provided for
in this Plan shall be in writing and shall be deemed to have been duly given when delivered or
mailed by certified or registered mail, return receipt requested, postage prepaid, addressed, with
respect to the Bank, Secretary, Independence Community Bank, 195 Montague Street, 12th Floor,
Brooklyn, New York 11201, and with respect to an Officer, to the home address thereof set forth in
the records of the Bank at the date of any such notice.

     8.02 Governing Law. The validity, interpretation, construction and performance of this Plan shall
be governed by the laws of the United States where applicable and otherwise by the substantive laws
of the State of New York.

     8.03 Nature of Employment and Obligations.

     (a) Nothing contained herein shall be deemed to create other than a terminable at will
employment relationship between the Employer and an Officer, and the Employer may terminate the
Officer’s employment at any time, subject to providing any of the benefits specified herein in
accordance with the terms hereof.

     (b) Nothing contained herein shall create or require the Employer to create a trust of any
kind to fund any benefits which may be payable hereunder, and to the extent that the Officer
acquires a right to receive benefits from the Employer hereunder, such right shall be no greater
than the right of any unsecured general creditor of the Employer.

     8.04 Headings. The section headings contained in this Plan are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Plan.

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

     8.06 Regulatory Prohibition. Notwithstanding any other provision of this Plan to the contrary, any
payments made to an Officer pursuant to this Plan, or otherwise, are subject to and conditioned
upon their compliance with Section 18(k) of the Federal Deposit Insurance Act (12 U.S.C. §1828(k))
and the regulations promulgated thereunder, including 12 C.F.R. Part 359.

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