Document:

UNITY.Change In Control Agreement  (40077536.DOC;3)

Exhibit

10.8

 

CHANGE IN CONTROL AGREEMENT

 

CHANGE IN CONTROL AGREEMENT (this “Agreement”) made as

of this 26th day of February, 2002 by and between UNITY  BANK, a New Jersey state bank

with its principal place of business located at 64 Old Highway 22, Clinton, New

Jersey 08809 (the “Bank), Unity Bancorp, Inc. a Delaware corporation

with its principal place of business located at 64 Old Highway 22, Clinton, New

Jersey 08809 (“Unity”) (Bank and Unity collectively, “Employer”), and Michael

Bono, an individual residing at

                                                        (“Executive”).

 

W I T N E S S E T H:

WHEREAS, Executive is a valued employee of the Bank;

WHEREAS, Employer wishes to ensure that it will continue to get Executive’s

undivided effort and attention;

NOW, THEREFORE, in consideration of the mutual promises and

undertakings herein contained, the parties hereto, intending to be legally

bound, agree as follows:

1.             Change

in Control.

(a)           Upon

the occurrence of a Change in Control (as herein defined), Executive shall

become entitled to receive the payments (the “Payments”) provided for under

either paragraph (c) or paragraph (d) below.

(b)           A

“Change in Control” shall mean:

(i)                                     a reorganization, merger, consolidation

or sale of all or substantially all of the assets of Unity or a similar

transaction in which Unity is not the resulting entity; or

(ii)                                  individuals who constitute the Incumbent

Board (as herein defined) of Unity cease for any reason to constitute a

majority thereof; or

(iii)                               the occurrence of an event of a nature

that would be required to be reported in response to Item I of the current

report on Form 8-K, as in effect on the date hereof, pursuant to Section 13 or

15(d) of the 

 

 

                                                Securities Exchange Act of 1934 (the

“Exchange Act”); or

(iv)                              Without limitation, a change in control

shall be deemed to have occurred at such time as (i) any “person” (as the term

is used in Section 13(d) and 14(d) of the Exchange Act) other than Unity or the

trustees or any administrator of any employee stock ownership plan and trust,

or any other employee benefit plans, established by Employer from time-to-time

is or becomes a “beneficial owner” (as defined in Rule 13-d under the Exchange

Act) directly or indirectly, of securities of Unity representing 25% or more of

Unity’s outstanding securities ordinarily having the right to vote at the

election of directors; or

(v)                                 A proxy statement soliciting proxies from

stockholders of Unity is disseminated by someone other than the current

management of Unity, seeking stockholder approval of a plan of reorganization,

merger or consolidation of Unity or similar transaction with one or more

corporations as a result of which the outstanding shares of the class of

securities then subject to the plan or transaction are exchanged or converted

into cash or property or securities not issued by Unity; or

(vi)                              A tender offer is made for 25% or more of

the voting securities of Unity and shareholders owning beneficially or of

record 25% or more of the outstanding securities of Unity have tendered or

offered to sell their shares pursuant to such tender and such tendered shares

have been accepted by the tender offeror.

For these purposes, “Incumbent Board” means the Board

of Directors of Unity on the date hereof, provided that any person becoming a

director subsequent to the date hereof whose election was approved by a vote of

at least three-quarters of the directors comprising the Incumbent Board, or

whose nomination for election by members or stockholders was approved by the

same nominating committee serving under an Incumbent Board, shall be considered

as though he were a member of the Incumbent Board.

 

2

 

(c)           In the event the conditions of

Section (a) above are satisfied, and, in connection with such Change in Control

Executive’s employment with Employer and/or its successors is terminated within

twelve (12) months of such Change In Control, regardless of whether such

termination is by Employer or its successor, through Executive’s resignation of

employment with Employer, or Executive’s failure to accept an offer of

employment with any successor to Employer, Executive shall be entitled to

receive a payment equal to eighteen (18) months of Executive’s then current

monthly Base Salary (as defined below). 

The Payment shall be made to Executive, in a single lump sum payment to

be made within thirty (30) days of  the

termination of Executive’s employment. 

For purposes of this Agreement, the Executive’s monthly Base Salary

shall be that annual salary most recently approved by Employer’s Board of

Directors or a committee thereof divided by twelve.

In addition to the foregoing, Executive shall be

entitled to receive from Employer or its successor, hospital, health, medical

and life insurance on the terms and at the same cost to Executive as Executive

was receiving such benefits upon the date of the Change in Control.  Employer’s obligation to continue such

insurance benefits will be for a period of twelve (12) months.

(d)           In

the event the conditions of Section (a) are satisfied and Executive’s

employment with the Employer or its successor is not terminated in connection

with such Change in Control but rather is continued by the Employer or its

successor, in lieu of the payment provided for under paragraph (c) above,

Executive shall be entitled to receive a payment equal to nine months of the

Executive’s then current Base Salary. 

Such payment shall be made upon the consummation of the Change in

Control.  If Executive’s employment is

subsequently terminated and Executive becomes entitled to benefits under

paragraph (c) above, Employer or its successor shall receive credit against any

payments required under paragraph (c) for any payments made hereunder.

2.             No

Guaranty of Employment.  Nothing in

this Agreement shall be construed as guarantying the employment of the

Executive.  Executive shall remain an

“employee at will” of Employer at all time during the term of this Agreement.

3.             Notices.

Any and all notices, demands or requests required or permitted to be given

under this Agreement shall be given in writing and sent, (i) by registered or

certified U.S. mail, return receipt requested, (ii) by hand, (iii) by overnight

courier or (iv) by telecopier 

3

 

addressed to the parties hereto at their addresses set forth above or

such other addresses as they may from time-to-time designate by written notice,

given in accordance with the terms of this Section, together with copies

thereof as follows:

In the case of Executive, to the address set forth on

the first page hereof or to such other address as Executive shall provide in

writing to the Employer for the provision of notices hereunder.

 

 

In the case of Employer, to the address set forth on

the first page hereof with a copy to:

Windels Marx Lane & Mittendorf, LLP

120 Albany Street Plaza, 6th Floor

New Brunswick, New Jersey 08901

Telecopier No. (732) 846-8877

Attention: Robert A. Schwartz

 

Notice given as provided

in this Section shall be deemed effective: (i) on the date hand delivered, (ii)

on the first business day following the sending thereof by overnight courier,

(iii) on the seventh calendar day (or, if it is not a business day, then the

next succeeding business day thereafter) after the depositing thereof into the

exclusive custody of the U.S. Postal Service or (iv) on the date telecopied.

4.             Term. 

This Agreement shall have a term of three years from the date hereof;

provided, however, that in the event the term of this Agreement would terminate

at any time after the Employer has engaged in substantive negotiations

regarding a transaction which would lead to a Change in Control, this Agreement

shall continue to remain in full force in effect until the earlier to occur of

(i) the effectuation of the Change in Control or (ii) the termination of the

negotiations for the proposed transaction which would have resulted in the

Change in Control.

5.             Covenant

Not to Compete.  Executive agrees that in the event he

becomes entitled to a payment under Section 1(c) hereof, for a period of six

(6) months after the termination of his employment, he will not in any way,

directly or indirectly, manage, operate, control, accept employment or a

consulting position with or otherwise advise or assist or be connected with or 

4

 

own or have any other interest in or right with respect to (other than

through ownership of not more than five percent (5%) of the outstanding shares

of a corporation whose stock is listed on a national securities exchange or on

the National Association of Securities Dealers Automated Quotation System) any

enterprise which competes with Employer in the business of banking in the

geographic areas in which Employer conducts its business on the date of Executive’s

termination.  In the event that this

covenant not to compete shall be found by a court of competent jurisdiction to

be invalid or unenforceable as against public policy, such court shall exercise

discretion in reforming such covenant to the end that Executive shall be

subject to a covenant not to compete that is reasonable under the circumstances

and enforceable by Employer.  Executive

agrees to be bound by any such modified covenant not to compete.

6.             Assignability.  The services of the Executive hereunder are

personal in nature, and neither this Agreement nor the rights or obligations of

Executive hereunder may be assigned, whether by operation of law or

otherwise.  This Agreement shall be

binding upon, and inure to the benefit of, Employer and its Successors and

assigns.  This Agreement shall inure to

the benefit of the Executive’s heirs, executors, administrators and other legal

representatives.

7.             Waiver.  The waiver by Employer or the Executive of a

breach of any provision of this Agreement by the other shall not operate or be

construed as a waiver of any subsequent or other breach hereof.

8.             Applicable

Law.  This Agreement shall be

governed by and construed in accordance with the laws of the State of New

Jersey without giving effect to principles of conflict of laws.

9.             Entire

Agreement.  This Agreement contains

the entire agreement of the parties hereto with respect to the subject matter

hereof and may not be amended, waived, changed, modified or discharged, except

by an agreement in writing signed by the parties hereto.

10.           Counterparts.  This Agreement may be executed in two or

more counterparts, each of which shall be deemed an original but all of which

taken together shall constitute one and the same instrument.

11.             Amendment.  This Agreement may be modified or amended

only by an amendment in writing signed by both parties.

12.             Severability.  If any provision of this Agreement shall be

held invalid or unenforceable, such invalidity or unenforceability shall attach

only to such provision, only to the 

5

 

extent it is invalid or unenforceable, and shall not in any manner

affect or render invalid or unenforceable any other severable provision of this

Agreement, and this Agreement shall be carried out as if any such invalid or

unenforceable provision were not contained herein.

13.             Section

Headings.  The headings contained in

this Agreement are solely for convenience of reference and shall be given no

effect in the construction or interpretation of this Agreement.

6

 

14.             Fees

and Expenses.  If any party to this

Agreement institutes any action or proceeding to enforce this Agreement, the

prevailing party in such action or proceeding shall be entitled to recover from

the non-prevailing party all legal costs and expenses incurred by the

prevailing party in such action, including, but not limited to, reasonable

attorneys’ fees and other reasonable legal costs and expenses.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement

under their

respective hands and seals as of the day and year first above written.

 

	

  ATTEST:

  	

   

  	

  UNITY

  BANK

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  By: 

  	

  /s/ DAVID D. DALLAS

  	

   

  
	

  David D. Dallas, Chairman of the Board

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  ATTEST:

  	

   

  	

  UNITY

  BANCORP, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  By: 

  	

  /s/ DAVID D. DALLAS

  	

   

  
	

   

  	

   

  	

   

  	

  David D. Dallas, Chairman of the Board

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  WITNESS:

  	

   

  	

  EXECUTIVE:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By: 

  	

  /s/ MICHAEL BONO

  	

   

  
	

   

  	

   

  	

   

  	

  Michael Bono

  
							

 

7UNITY.Change In Control Agreement  (40077536.DOC;3)

Exhibit

10.9

 

CHANGE IN CONTROL AGREEMENT

 

CHANGE IN CONTROL AGREEMENT (this “Agreement”) made as

of this 25th day of March, 2002 by and between UNITY  BANK, a New Jersey state bank

with its principal place of business located at 64 Old Highway 22, Clinton, New

Jersey 08809 (the “Bank), Unity Bancorp, Inc. a Delaware corporation

with its principal place of business located at 64 Old Highway 22, Clinton, New

Jersey 08809 (“Unity”) (Bank and Unity collectively, “Employer”), and Michael

Downes, an individual residing at                                          (“Executive”).

 

W I T N E S S E T H:

WHEREAS, Executive is a valued employee of the Bank;

WHEREAS, Employer wishes to ensure that it will continue to get Executive’s

undivided effort and attention;

NOW, THEREFORE, in consideration of the mutual promises and

undertakings herein contained, the parties hereto, intending to be legally

bound, agree as follows:

1.             Change

in Control.

(a)           Upon

the occurrence of a Change in Control (as herein defined), Executive shall

become entitled to receive the payments (the “Payments”) provided for under

either paragraph (c) or paragraph (d) below.

(b)           A

“Change in Control” shall mean:

(i)                                     a reorganization, merger, consolidation

or sale of all or substantially all of the assets of Unity or a similar

transaction in which Unity is not the resulting entity; or

(ii)                                  individuals who constitute the Incumbent

Board (as herein defined) of Unity cease for any reason to constitute a

majority thereof; or

(iii)                               the occurrence of an event of a nature

that would be required to be reported in response to Item I of the current

report on Form 8-K, as

 

 

                                                in effect on the date hereof, pursuant to

Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange

Act”); or

(iv)                              Without limitation, a change in control

shall be deemed to have occurred at such time as (i) any “person” (as the term

is used in Section 13(d) and 14(d) of the Exchange Act) other than Unity or the

trustees or any administrator of any employee stock ownership plan and trust,

or any other employee benefit plans, established by Employer from time-to-time

is or becomes a “beneficial owner” (as defined in Rule 13-d under the Exchange

Act) directly or indirectly, of securities of Unity representing 25% or more of

Unity’s outstanding securities ordinarily having the right to vote at the

election of directors; or

(v)                                 A proxy statement soliciting proxies from

stockholders of Unity is disseminated by someone other than the current

management of Unity, seeking stockholder approval of a plan of reorganization,

merger or consolidation of Unity or similar transaction with one or more

corporations as a result of which the outstanding shares of the class of

securities then subject to the plan or transaction are exchanged or converted into

cash or property or securities not issued by Unity; or

(vi)                              A tender offer is made for 25% or more of

the voting securities of Unity and shareholders owning beneficially or of

record 25% or more of the outstanding securities of Unity have tendered or offered

to sell their shares pursuant to such tender and such tendered shares have been

accepted by the tender offeror.

For these purposes, “Incumbent Board” means the Board

of Directors of Unity on the date hereof, provided that any person becoming a

director subsequent to the date hereof whose election was approved by a vote of

at least three-quarters of the directors comprising the Incumbent Board, or

whose nomination for election by members or stockholders was approved by the

same nominating committee serving under an Incumbent Board, shall be considered

as

 

 

2

 

though he were a member of the Incumbent Board.

(c)           In the event the conditions of

Section (a) above are satisfied, and, in connection with such Change in Control

Executive’s employment with Employer and/or its successors is terminated within

twelve (12) months of such Change In Control, regardless of whether such

termination is by Employer or its successor, through Executive’s resignation of

employment with Employer, or Executive’s failure to accept an offer of

employment with any successor to Employer, Executive shall be entitled to

receive a payment equal to eighteen (18) months of Executive’s then current

monthly Base Salary (as defined below). 

The Payment shall be made to Executive, in a single lump sum payment to

be made within thirty (30) days of  the

termination of Executive’s employment. 

For purposes of this Agreement, the Executive’s monthly Base Salary

shall be that annual salary most recently approved by Employer’s Board of

Directors or a committee thereof divided by twelve.

In addition to the foregoing, Executive shall be

entitled to receive from Employer or its successor, hospital, health, medical

and life insurance on the terms and at the same cost to Executive as Executive

was receiving such benefits upon the date of the Change in Control.  Employer’s obligation to continue such

insurance benefits will be for a period of twelve (12) months.

(d)           In

the event the conditions of Section (a) are satisfied and Executive’s

employment with the Employer or its successor is not terminated in connection

with such Change in Control but rather is continued by the Employer or its

successor, in lieu of the payment provided for under paragraph (c) above,

Executive shall be entitled to receive a payment equal to nine months of the

Executive’s then current Base Salary. 

Such payment shall be made upon the consummation of the Change in

Control.  If Executive’s employment is

subsequently terminated and Executive becomes entitled to benefits under

paragraph (c) above, Employer or its successor shall receive credit against any

payments required under paragraph (c) for any payments made hereunder.

2.             No

Guaranty of Employment.  Nothing in

this Agreement shall be construed as guarantying the employment of the

Executive.  Executive shall remain an

“employee at will” of Employer at all time during the term of this Agreement.

3.             Notices.

Any and all notices, demands or requests required or permitted to be given under

this Agreement shall be given in writing and sent, (i) by registered or

certified U.S.

 

 

3

 

mail, return receipt requested, (ii) by hand, (iii) by overnight

courier or (iv) by telecopier addressed to the parties hereto at their

addresses set forth above or such other addresses as they may from time-to-time

designate by written notice, given in accordance with the terms of this

Section, together with copies thereof as follows:

In the case of Executive, to the address set forth on

the first page hereof or to such other address as Executive shall provide in

writing to the Employer for the provision of notices hereunder.

 

 

In the case of Employer, to the address set forth on

the first page hereof with a copy to:

Windels Marx Lane & Mittendorf, LLP

120 Albany Street Plaza, 6th Floor

New Brunswick, New Jersey 08901

Telecopier No. (732) 846-8877

Attention: Robert A. Schwartz

 

Notice given as provided

in this Section shall be deemed effective: (i) on the date hand delivered, (ii)

on the first business day following the sending thereof by overnight courier,

(iii) on the seventh calendar day (or, if it is not a business day, then the

next succeeding business day thereafter) after the depositing thereof into the

exclusive custody of the U.S. Postal Service or (iv) on the date telecopied.

4.             Term. 

This Agreement shall have a term of three years from the date hereof;

provided, however, that in the event the term of this Agreement would terminate

at any time after the Employer has engaged in substantive negotiations

regarding a transaction which would lead to a Change in Control, this Agreement

shall continue to remain in full force in effect until the earlier to occur of

(i) the effectuation of the Change in Control or (ii) the termination of the

negotiations for the proposed transaction which would have resulted in the

Change in Control.

5.             Covenant

Not to Compete.  Executive agrees that in the event he

becomes entitled to a payment under Section 1(c) hereof, for a period of six

(6) months after the termination of his employment, he will not in any way,

directly or indirectly, manage, operate, control, accept

 

 

4

 

employment or a consulting position with or otherwise advise or assist

or be connected with or own or have any other interest in or right with respect

to (other than through ownership of not more than five percent (5%) of the

outstanding shares of a corporation whose stock is listed on a national

securities exchange or on the National Association of Securities Dealers

Automated Quotation System) any enterprise which competes with Employer in the

business of banking in the geographic areas in which Employer conducts its

business on the date of Executive’s termination.  In the event that this covenant not to compete shall be found by

a court of competent jurisdiction to be invalid or unenforceable as against

public policy, such court shall exercise discretion in reforming such covenant

to the end that Executive shall be subject to a covenant not to compete that is

reasonable under the circumstances and enforceable by Employer.  Executive agrees to be bound by any such

modified covenant not to compete.

6.             Assignability.  The services of the Executive hereunder are

personal in nature, and neither this Agreement nor the rights or obligations of

Executive hereunder may be assigned, whether by operation of law or

otherwise.  This Agreement shall be

binding upon, and inure to the benefit of, Employer and its Successors and assigns.  This Agreement shall inure to the benefit of

the Executive’s heirs, executors, administrators and other legal

representatives.

7.             Waiver.  The waiver by Employer or the Executive of a

breach of any provision of this Agreement by the other shall not operate or be

construed as a waiver of any subsequent or other breach hereof.

8.             Applicable

Law.  This Agreement shall be

governed by and construed in accordance with the laws of the State of New

Jersey without giving effect to principles of conflict of laws.

9.             Entire

Agreement.  This Agreement contains

the entire agreement of the parties hereto with respect to the subject matter

hereof and may not be amended, waived, changed, modified or discharged, except

by an agreement in writing signed by the parties hereto.

10.           Counterparts.  This Agreement may be executed in two or

more counterparts, each of which shall be deemed an original but all of which

taken together shall constitute one and the same instrument.

11.             Amendment.  This Agreement may be modified or amended

only by an amendment in writing signed by both parties.

12.             Severability.  If any provision of this Agreement shall be

held invalid or

 

 

5

 

unenforceable, such invalidity or unenforceability shall attach only to

such provision, only to the extent it is invalid or unenforceable, and shall

not in any manner affect or render invalid or unenforceable any other severable

provision of this Agreement, and this Agreement shall be carried out as if any

such invalid or unenforceable provision were not contained herein.

13.             Section

Headings.  The headings contained in

this Agreement are solely for convenience of reference and shall be given no

effect in the construction or interpretation of this Agreement.

 

 

6

 

14.             Fees

and Expenses.  If any party to this

Agreement institutes any action or proceeding to enforce this Agreement, the

prevailing party in such action or proceeding shall be entitled to recover from

the non-prevailing party all legal costs and expenses incurred by the

prevailing party in such action, including, but not limited to, reasonable

attorneys’ fees and other reasonable legal costs and expenses.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement

under their

respective hands and seals as of the day and year first above written.

 

	

  ATTEST:

  	

   

  	

  UNITY

  BANK

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  By:

  	

  /s/

  	

  DAVID D. DALLAS

  	

   

  	 

	

  David D. Dallas, Chairman of the Board

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  ATTEST:

  	

   

  	

  UNITY

  BANCORP, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  By:

  	

  /s/

  	

   DAVID D.

  DALLAS

  	

   

  
	

   

  	

   

  	

   

  	

  David D. Dallas, Chairman of the Board

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  WITNESS:

  	

   

  	

  EXECUTIVE:

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

  /s/

  	

   MICHAEL

  DOWNES

  	

   

  
	

   

  	

   

  	

   

  	

  Michael Downes

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