Document:

Exhibit 10.3 Employment Agreement of Kristen Vasicek

 

EMPLOYMENT AGREEMENT 

 

This EMPLOYMENT AGREEMENT (this “Agreement”), dated as of December 1, 2018 between HAMMER FIBER OPTICS HOLDINGS CORP, a corporation organized under the laws of the State of Nevada (the “Company”), and KRISTEN A. VASICEK (“Executive”).

 

WHEREAS, Executive is experienced in establishing and maintaining the operations of businesses engaged in the delivery of managed services and network solutions;

 

WHEREAS, Executive desires to provide services to the Company and the Company desires to retain the services of Executive;

 

WHEREAS, the Company and Executive desire to formalize the terms and conditions of Executive's employment with the Company.

 

NOW, THEREFORE, the Company and Executive hereby agree as follows:

 

1.Employment. 

 

1.1.General. The Company hereby employs Executive in the capacity of Chief Operating Officer of the Company or in such other executive position as may be mutually agreed upon by Executive and the Company. Executive hereby accepts such employment, upon the terms and subject to the conditions herein contained. 

 

1.2.Duties. During the Executive's employment with the Company, Executive will report directly to the Company’s Chief Executive Officer. Executive will be responsible for those duties consistent with Executive’s position as may from time to time be assigned to or requested of Executive by the Chief Executive Officer or the Board of Directors, (the “Board”), including duties related to all of the Company’s holdings. Executive shall perform such responsibilities faithfully and effectively. Executive shall conduct all of her activities in a manner so as to maintain and promote the business and reputation of the Company. 

 

1.3.Full-Time Position. Executive, during the Term, will devote all of her business time, attention and skills to the business and affairs of the Company.  

 

1.4[INTENTIONALLY OMITTTED] 

 

2.Compensation and Benefits. 

 

2.1.Base Salary. The Company shall pay to Executive as full compensation for any and all services rendered in any capacity during the term of her employment under this Agreement, an annualized base salary of Seventy Two Thousand US Dollars ($72,000 USD) (“Base Salary”), subject to increases, if any, as the Chief Executive Officer or the Board shall determine, in its sole discretion. Executive’s Base Salary shall be payable in accordance with the regular payroll practices of the Company, as in effect from time to time. 

 

2.2.Additional Compensation. In the event that the reported EBITDA of the consolidated reporting entity (OTC:HMMR) for one fiscal year is One Million Five Hundred Thousand US Dollars ($1,500,000 USD) as reported on a 10K within the first three (3) years of Executive’s employment, Executive shall receive two hundred and fifty thousand (250,000) additional shares of Hammer Common Stock. If in the third year of Executive’s employment, EBITDA is greater than Seven Hundred and Fifty Thousand US Dollars ($750,000 USD) then Executive will receive some of the shares of Hammer Common Stock in proportion to the EBITDA target. By way of example, if the EBITDA is One Million US Dollars ($1,000,000 USD), Executive would receive 83,333 shares of Hammer Common Stock. 

 

2.3.Executive Benefits. 

 

2.3.1.Expenses. The Company will reimburse Executive for expenses she reasonably and actually incurs in connection with the performance of her duties (including business travel and entertainment expenses), all in accordance with the Company's policies with respect thereto, as in effect from time to time. 

 

2.3.2.Benefit Plans. As long as Executive remains a full-time employee of the Company, Executive shall be entitled to participate in such executive benefit plans and programs as the Company may from time to time offer or provide to executives of the Company at similar levels.  

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2.3.3.Vacation. Executive shall be eligible for three (3) weeks of paid vacation per year pro-rated for any partial year. All vacation must be used by December 31 of each year of Executive’s employment. Up to one week of vacation time may be rolled into the following year. Any other unused vacation shall expire and Executive shall no longer be entitled to such vacation. No compensation shall be payable in respect of any unused vacation days. 

 

2.4.Employment Term. Executive’s employment by the Company is at will and both Executive and Company may terminate this Agreement at any time, subject to any notice provisions in Section 3 below.  

 

2.5.Increases in Base Salary. Executive’s base salary will automatically increase in the following events: if the reported EBITDA of the consolidated reporting entity (OTC:HMMR) for a quarter is (i) One Hundred and Twenty Five Thousand US Dollars ($125,000 USD), Executive’s base salary will increase to an annualized base salary of Eighty Four Thousand US Dollars ($84,000), (ii) Two Hundred Thousand US Dollars ($200,000 USD), Executive’s base salary will increase to an annualized base salary of Ninety Six Thousand US Dollars ($96,000), (iii) Two Hundred and Fifty Thousand US Dollars ($250,000 USD), Executive’s base salary will increase to an annualized based salary of One Hundred and Eight Thousand US Dollars ($108,000). 

 

2.6.Bonus. Executive shall have no guaranteed bonus. Any bonus payable to Executive shall be determined by the Chief Executive Officer or the Board their sole discretion. In addition, Executive shall be entitled to participate in such bonus programs as the Company may from time to time offer or provide to executives of the Company at similar levels. 

 

3.Termination of Employment. 

 

3.1.Events of Termination. Executive's employment with the Company will terminate upon the occurrence of any one or more of the following events: 

 

3.1.1.Death. In the event of Executive's death, Executive's employment will terminate on the date of death. 

 

3.1.2.Disability. In the event of Executive's Disability (as hereinafter defined), the Company will have the option to terminate Executive's employment by giving a notice of termination to Executive. The notice of termination shall specify the date of termination, which date shall not be earlier than thirty (30) days after the notice of termination is given. For purposes of this Agreement, “Disability” means the inability of Executive to substantially perform her duties hereunder for either 90 consecutive days or a total of 120 days out of 365 consecutive days as a result of a physical or mental illness, all as determined in good faith by the Board of Directors. 

 

3.1.3.Termination by the Company for Cause. The Company may, at its option, terminate Executive's employment for “Cause” (as defined below) as determined in good faith by Company by giving a notice of termination to Executive specifying the reasons for termination and if Executive shall fail to cure same within thirty (30) days of him receiving the notice of termination her Employment shall terminate at the end of such thirty (30) day period; provided, however, that in the event the Company in good faith determines that the underlying reasons giving rise to such determination cannot be cured within such thirty (30) day period, then such cure period shall not apply and Executive's employment shall terminate on the date of Executive's receipt of the notice of termination. “Cause” shall mean (i) Executive's conviction of, guilty or no contest plea to, or confession of guilt of, a felony or other crime involving moral turpitude; (ii) an act or omission by Executive in connection with her employment that constitutes gross negligence, malfeasance, willful misconduct or other conduct that is materially injurious to the Company or any of its affiliates; (iii) a material breach by Executive of this Agreement; (iv) a continuing failure to perform such duties as are assigned to Executive by the Company in accordance with this Agreement, other than a failure resulting from a Disability as defined in Section 3.1.2 hereof; (v) Executive’s knowingly taking any action on behalf of the Company or any of its affiliates without appropriate authority to take such action; (vi) Executive’s knowing taking any action in conflict of interest with the Company or any of its affiliates given Executive’s position with the Company. 

 

3.2.[INTENTIONALLY OMITTED] 

 

3.3.Nature of Payments. All amounts to be paid by the Company to Executive pursuant to this Section 3 are considered by the parties to be severance payments. In the event such payments are treated as damages, it is expressly acknowledged by the parties that damages to Executive for termination of employment would be difficult to ascertain and the above amounts are reasonable estimates thereof. 

 

3.4.[INTENTIONALLY OMITTED] 

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4.Confidentiality; Nonsolicitation; Non-Compete. 

 

Executive and Company shall enter into a Confidentiality, Nonsolicitation and Noncompete Agreement, the form of which is attached as Exhibit A hereto. The terms of that agreement and the duties and obligations thereunder shall be a part of this Agreement and Executive agrees to perform all of her duties and obligations thereunder.

 

5.Invention Disclosure and Assignment. 

 

5.1Reports During The Term. During the Term, Executive agrees to report to the Company fully and promptly in writing, all intellectual property (including inventions, ideas and discoveries, patentable or unpatentable, trade secrets and copyrightable works) that is made, developed, conceived or reduced to practice by Executive either solely or jointly with others resulting from or arising out of the work performed by Executive, within the scope of her responsibilities, or with the Company's or its affiliates facilities, equipment or supplies, or in connection with or that results from her use or knowledge of confidential or trade secret information that is proprietary to the Company or its affiliates. 

 

5.2Reports After the Term. Upon termination of Executive's employment with the Company, Executive agrees to report to the Company fully and promptly in writing, all intellectual property (including inventions, ideas and discoveries, patentable or unpatentable, trade secrets and copyrightable works) that is reduced to practice by Executive either solely or jointly with others, reasonably resulting from the work performed by Executive during employment by the Company within the scope of her or her responsibilities, or with the Company's or its affiliates facilities, equipment or supplies, or in connection with or which results from her or her use or knowledge of confidential or trade secret information which is proprietary to the Company. 

 

5.3Assignment to the Company. Executive agrees to hold all such intellectual property described in this Section 5 for the benefit of the Company and not to assign nor attempt to assign any rights therein to anyone other than the Company. Executive agrees to assign to the Company upon its request and without further compensation, all rights, title and interest in such intellectual property described in this Section 5 to which the Company is entitled as set forth in this Section 6, at any time whether during or subsequent to the Term. Executive shall execute and deliver in a prompt manner all proper documents provided by the Company and presented to Executive, including those necessary and attendant to domestic and foreign patent applications including, but not limited to, divisional, continuation, continuation-in-part, substitute and/or reissue applications, and all other instruments for the perfection of intellectual property rights including related registrations of issued patents, design patent applications and registrations, applications for utility models and industrial models and copyrights, as well as formal assignments thereof. The Company will pay all reasonable out-of-pocket expenses incurred by Executive in perfecting the Company's rights as they relate to assisting the Company in all proper ways in the acquisition and preservation of the rights to such intellectual property as described in this subsection 5.3. 

 

5.4No Exceptions. Executive represents, warrants, acknowledges and agrees that there are no unpatented inventions, discoveries, ideas or information currently held by Executive which are to be within the scope of this agreement. 

 

6.Miscellaneous Provisions. 

 

6.1.Severability. If in any jurisdiction any term or provision hereof is determined to be invalid or unenforceable, (a) the remaining terms and provisions hereof shall be unimpaired, (b) any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction, and (c) the invalid or unenforceable term or provision shall, for purposes of such jurisdiction, be deemed replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision. 

 

6.2.Execution in Counterparts. This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which shall be deemed to be an original but all of which taken together shall constitute one and the same agreement (and all signatures need not appear on any one counterpart), and this Agreement shall become effective when one or more counterparts has been signed by each of the parties hereto and delivered to each of the other parties hereto. 

 

6.3.Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed duly given when delivered by hand, or when delivered if mailed by registered or certified mail or overnight delivery, postage prepaid, return receipt requested as follows:  

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If to the Company, to:

 

Hammer Fiber Optics Holdings Corp

15 Corporate Place South

Suite 100

Piscataway, NJ 08854

Attention: General Counsel

 

With a copy to (which shall not constitute notice):

 

	 

	 

	 

	 

 

 

If to Executive, to:

 

Kristen A. Vasicek

 

	 

	 

 

 

or to such other address(es) as a party hereto shall have designated by like notice to the other parties hereto.

 

6.4.Amendment. No provision of this Agreement may be modified, amended, waived or discharged in any manner except by a written instrument executed by the Company and Executive. 

 

6.5.Entire Agreement. This Agreement constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings of the parties hereto, oral or written, with respect to the subject matter hereof. 

 

6.6.Applicable Law; Consent to Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts entered into and to be performed wholly within said State. Executive and the Company hereby consent to the jurisdiction of the Federal and State courts located in the City of New York and waive any objections to such courts based on venue in connection with any claim or dispute arising under this Agreement. Each of the parties hereto hereby irrevocably waives any and all right to a trial by jury in any legal proceedings arising out of or relating to this Agreement. 

 

6.7.Headings. The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the meaning or interpretation of any of the terms or provisions of this Agreement.  

 

6.8.Binding Effect; Successors and Assigns. Executive may not delegate her duties or assign her rights hereunder. This Agreement will inure to the benefit of, and be binding upon, the parties hereto and their respective heirs, legal representatives, successors and permitted assigns. 

 

6.9.Waiver, etc. The failure of either of the parties hereto to at any time enforce any of the provisions of this Agreement shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Agreement or any provision hereof or the right of either of the parties hereto to thereafter enforce each and every provision of this Agreement. No waiver of any breach of any of the provisions of this Agreement shall be effective unless set forth in a written instrument executed by the party against whom or which enforcement of such waiver is sought, and no waiver of any such breach shall be construed or deemed to be a waiver of any other or subsequent breach. 

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6.10.Representations and Warranties. Executive and the Company hereby represent and warrant to the other that: (a) she or it has full power, authority and capacity to execute and deliver this Agreement, and to perform her or its obligations hereunder; (b) such execution, delivery and performance will not (and with the giving of notice or lapse of time or both would not) result in the breach of any agreements or other obligations to which she or it is a party or she or it is otherwise bound; and (c) this Agreement is hers or its valid and binding obligation in accordance with its terms. Executive represents and warrants that she is under no other obligations, contractual or otherwise, that could impair her ability to perform her obligations under this Agreement. Executive hereby acknowledges that she has been advised, prior to the execution of this Agreement, to seek the advice of legal counsel. Executive hereby further acknowledges that she has carefully reviewed this Agreement, that she knows and understands the contents of this Agreement, that she has been given adequate time to consider whether to execute this Agreement, that she executed this Agreement knowingly and voluntarily as her own free act and deed, and that this Agreement was freely entered into without fraud, duress or coercion. 

 

6.11.Enforcement. If any party institutes legal action to enforce or interpret the terms and conditions of this Agreement, the prevailing party shall be awarded reasonable attorneys' fees at all trial and appellate levels, and the expenses and costs incurred by such prevailing party in connection therewith. 

 

6.12.Continuing Effect. Where the context of this Agreement requires, the respective rights and obligations of the parties shall survive any termination or expiration of the term of this Agreement. 

 

6.13.Expenses. Each party to this Agreement agrees to bear her or its own expenses in connection with the negotiation and execution of this Agreement. 

 

[Signature Page to Follow]

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IN WITNESS WHEREOF, this Employment Agreement has been executed and delivered by the parties hereto as of the date first above written.

 

	HAMMER FIBER OPTICS HOLDINGS CORP.

	 

	By: 

	/s/ Erik B. Levitt

	Name:

	 Erik B. Levitt

	Title:

	 CEO

	 

	Date: January 28, 2020

	 

	EXECUTIVE:

	 

	/s/ Kristen A. Vasicek

	Kristen A. Vasicek

	 

	Date: January 28, 2020

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EXHIBIT A

 

FORM OF CONFIDENTIALITY, NONSOLICITATION AND

NONCOMPETE AGREEMENT

7EXHIBIT 10.1

  

  

  

  

  

  
    SALISBURY BANK AND TRUST COMPANY

    SPLIT DOLLAR LIFE INSURANCE AGREEMENT

    THIS AGREEMENT (the “Agreement”) is made and entered into this 5th day of March, 2019, by and between Salisbury Bank and Trust Company, a banking corporation, located in
      Lakeville, CT (the “Bank”), and Peter Albero, a current employee of the Bank (hereinafter referred to as the “Employee”).

    INTRODUCTION

    WHEREAS, Employee is an officer or other highly paid employee of the Bank;

    WHEREAS, the Bank is purchasing insurance policies (hereinafter referred to as the “Insurance Policy”), with Midland National and New York Life (hereinafter referred to as
      the “Insurers”), on the life of the Employee;

    WHEREAS, the Bank desires to induce Employee to continue to utilize Employee’s best efforts on behalf of the Bank by its payment of premiums due on the Insurance Policy(ies); and

    WHEREAS, the Bank is the sole owner of the Insurance Policy(ies) and elects to endorse a portion of the death benefit of the Insurance Policies to Employee, or Employee’s
      designated beneficiary.

    NOW, THEREFORE, in consideration of the mutual undertakings set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are
      hereby acknowledged, the Bank and the Employee agree as follows:

    
      	
              1.

            	
              Ownership

               

              

            

    

    
      	
              1.1.

            	
              Ownership of Insurance Policy(ies). The Bank is the sole owner of the Insurance Policy(ies) and shall have the right to exercise all incidents of ownership. The Bank
                shall be the beneficiary of the remaining death proceeds of the Insurance Policy(ies) after payment of the Employee Death Benefit as defined and provided for in this Agreement. The Bank shall at all times be entitled to the Policy(ies) cash
                surrender value, as that term is defined in the Insurance Policy(ies), less any Insurance Policy loans and unpaid interest or cash withdrawals previously incurred by the Bank and any applicable Insurance Policy surrender charges.  The cash
                surrender value shall be determined as of the date of the surrender of the Insurance Policy or death of the Employee, as the case may be.

               

              

            

    

    
      	
              1.2.

            	
              Right to Insurance Policy(ies).Notwithstanding any provision hereof to the contrary, the Bank shall have the right to sell or surrender the Insurance Policy(ies)
                without terminating this Agreement, provided (i) the Bank replaces the Insurance Policy(ies) with a comparable life insurance policy or arrangement that provides the benefit provided under this Agreement and (ii) the Bank and the Employee
                (who will not unreasonably withhold his signature) execute a new Split Dollar Policy Endorsement for said comparable coverage arrangement, at which time all references to “Insurance Policy” hereunder shall refer to such replacement coverage
                arrangement. Without limitation, the Insurance Policy(ies) at all times shall be the exclusive property of the Bank, and shall be subject to the claims of the Bank’s creditors.

            

    

    
      1

      
        

    

    
      	

            	

            

    

    
      	
              2.

            	
              Premiums.

               

              

            

    

    
      	
              2.1.

            	
              Payment of Premium. The Bank may pay each premium on the Insurance Policies to the Insurers on or before the due date of such premium or within the grace period
                allowed by the Insurance Policies for the payment of such premium.

               

              

            

    

    
      	
              2.2.

            	
              Economic Benefit. The Bank shall determine the economic benefit attributable to the Employee based on the life insurance premium factor for the Employee’s age
                multiplied by the amount of current life insurance protection payable to the Employee’s beneficiary.  The “life insurance premium factor” is the minimum amount required to be imputed under Treasury Regulation § 1.61-22(d)(3)(ii), or any
                subsequent applicable authority. The Bank shall impute the economic benefit to the Employee on an annual basis by adding the economic benefit to the Executive’s Form W-2, or, if applicable, Form 1099.

               

              

            

    

    
      	
              3.

            	
              Bank’s Interests.  Upon the occurrence of an event described in Section 5 of this Agreement, the Bank shall be entitled to receive an amount equal to all death benefits
                due under the Insurance Policy less those explicitly provided to the Employee’s designated beneficiary under Section 4 hereof (the “Bank’s Policy Interest”).  The Bank’s Policy Interest shall be payable as provided in Section 5 of this
                Agreement.  The Bank’s Policy Interest shall be reduced by any amount borrowed against the Insurance Policy(ies) by Bank.

               

              

            

    

    
      	
              4.

            	
              Employee’s Interests.

               

              

            

    

    
      	
              4.1.

            	
              Executive Management: Pre-Retirement Death Benefit. Upon
                  death of the Employee while in service to the Bank, the Employee Death Benefit under this Agreement shall be three (3) times base annual salary, not to exceed $400,000, less $50,000.  (For example: A base annual salary of $150,000 would
                  provide for a Death Benefit under this Agreement of: $150,000 x 3 = $450,000, reduced to maximum of $400,000, less $50,000 = $350,000.)

               

                

            

    

    
      	
              4.2.

            	
              Executive Management: Post-Retirement Death Benefit.  If
                  the Employee is in service to the Bank at the time the Employee reaches age 65, upon the death of the Employee on or after age 65, the Employee Death Benefit under this Agreement shall be a multiple of final base annual salary, not to
                  exceed $400,000, less $50,000.  The multiple under this paragraph 4.2 shall be:

               

                

            

    

    	 	
            Age 65 through Age 71

          	
            1.5 times Final Base Salary

          
	 	
            Age 72 through Age 79

          	
            1.0 times Final Base Salary

          
	 	
            Age 80 and After

          	
            0.5 times Final Base Salary

          

    
      	
              5.

            	
              Beneficiary

                

              

            

    

    
      	
              5.1.

            	
              Beneficiary Designation. The Employee’s Beneficiary designation shall be made in writing and delivered to the Bank in a form acceptable to the Insurers and Bank. 
                Employee’s designated Beneficiary may be amended by the Employee from time to time during the term of this Agreement.  Upon the acceptance by the Bank of a new Beneficiary Designation Form, all Beneficiary designations previously filed
                shall be cancelled.  The Bank shall be entitled to rely on the last Beneficiary Designation Form filed by the Employee and accepted by the Bank prior to the Employee’s death.

            

    

    
      2

      
        

    

    
      	

            	

            

    

    
      	
              5.2.

            	
              Beneficiary Acknowledgement. No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the
                Bank or its designated agent.

               

              

            

    

    
      	
              5.3.

            	
              Facility of Payment. If the Bank determines in its discretion that a benefit is to be paid to a minor, to a person incapable of handling the disposition of that
                person’s property, the Bank may direct payment of such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person.  The Bank may require proof of incompetence,
                minority or guardianship as it may deep appropriate prior to distribution of the benefit.  Any payment of a benefit shall be a payment for the account of the Employee and the Employee’s Beneficiary, as the case may be, and shall be a
                complete discharge of any liability under the Agreement for such payment amount.

               

              

            

    

    
      	
              5.4.

            	
              No Beneficiary Designation.  If the Employee dies without a valid designation of Beneficiary, or if all designated Beneficiaries predecease the Employee, then the
                Employee’s surviving spouse shall be the designated Beneficiary.  If the Employee has no surviving spouse, the benefits shall be made payable to the personal representative of the Employee’s estate.

               

              

            

    

    
      	
              6.

            	
              Death Claims.

               

              

            

    

    
      	
              6.1.

            	
              Bank’s Benefit.  Upon the death of Employee, the Bank shall be entitled to receive a portion of the death benefits payable under the Insurance Policy equal to the
                Bank’s Policy Interest and the receipt of this amount by the Bank shall constitute satisfaction of the Bank’s rights under Section 3 of this Agreement.

               

              

            

    

    
      	
              6.2.

            	
              Employee’s Benefit.  Upon the death of Employee, the Beneficiary shall be entitled to receive the amount of the death benefits equal to the Employee Death Benefit and
                the receipt of this amount by the Beneficiary shall constitute satisfaction of the Employee’s rights under this Agreement.

               

              

            

    

    
      	
              6.3.

            	
              Benefit Paid by Insurance Carrier.  The benefit payable to Employee’s Beneficiaries shall be paid solely by the Insurers from the proceeds of the Insurance Policies on
                the life of the Insured.  In no event shall the Bank be obligated to pay a death benefit under this Agreement from its general funds.  Should an Insurer refuse or be unable to pay death proceeds endorsed to Insured under the express terms
                of this Agreement, or should the Bank cancel the Insurance Policies for any reason, neither Employee nor any Beneficiary shall be entitled to a death benefit.

               

              

            

    

    
      	
              6.4.

            	
              Suicide or Misstatement. The amount of the benefit payable to Employee’s Beneficiaries may be reduced or eliminated if Employee fails or refuses to take a physical
                examination, to truthfully and completely supply such information or complete any forms as may be required by the Bank or the Insurer, or otherwise fails to cooperate with the requests of the Bank or the Insurer, or if Employee dies under
                circumstances such that the Insurance Policies does not pay a full death benefit, e.g., in the case of suicide within two years after a respective Insurance Policy date.

               

              

            

    

    
      	
              7.

            	
              Termination of Agreement.

               

              

            

    

    
      	
              7.1.

            	
              Termination Events. This Agreement shall automatically terminate on the occurrence of any of the following events prior to the death of the Employee:

            

    

    
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              (a)

            	
              Cessation of the Bank’s business;

               

              

            

    

    
      	
              (b)

            	
              Written notice given by either party to the other;

               

              

            

    

    
      	
              (c)

            	
              Termination of the employment of Employee prior to age 65(whether voluntary or involuntary); or

               

              

            

    

    
      	
              (d)

            	
              Bankruptcy, receivership or dissolution of the Bank.

               

              

            

    

    
      	
              7.2.

            	
              Rights Upon Termination.  If this Agreement is terminated pursuant to this Section 7, the Employee shall forfeit all rights hereunder to the Insurance Policy(ies) or
                the right to designate a Beneficiary and Bank at its sole discretion may retain or terminate the Insurance Policy(ies).

               

              

            

    

    
      	
              7.3.

            	
              Amendments. Prior to the Employee’s death, this Agreement may be amended or terminated, in whole or in part, by the Bank at its sole discretion; provided, however, that if the Employee’s interests are adversely affected, such amendment or termination by action of the Bank may not become effective earlier than thirty days (30) after delivering a
                written notice of such action to the Employee.  This Agreement may not be amended after the date of the Employee’s death.

               

              

            

    

    
      	
              8.

            	
              Insurance Company Not a Party.  The Insurers shall not be deemed a party to this Agreement for any purpose nor in any way responsible for its validity; shall not be
                obligated to inquire as to the distribution of any monies payable or paid by it under the Insurance Policy(ies); and shall be fully discharged from any and all liability under the terms of the Insurance Policy(ies) upon payment or other
                performance of its obligations in accordance with the terms of the Insurance Policy(ies).  The Insurers shall not be bound by or be deemed to have notice of the provisions of this Agreement.

               

              

            

    

    
      	
              9.

            	
              Administration

               

              

            

    

    
      	
              9.1.

            	
              Plan Administrator.  This Split Dollar Agreement shall be administered by a Plan Administrator, which shall consist of the Bank’s board of directors or such committee
                as the board shall appoint.  The Employee may be a member of the Administrator.

               

              

            

    

    
      	
              9.2.

            	
              Plan Administrator Duties.  The Plan Administrator shall have the discretion and authority to (i) make, amend, interpret and enforce all appropriate rules and
                regulations for the administration of this Agreement and (ii) decide or resolve any and all questions, including interpretations of this Agreement, as may arise in connection with this Agreement.

               

              

            

    

    
      	
              9.3.

            	
              Binding Effect of Decisions.  Any decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration,
                interpretation, and application of this Agreement and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in this Agreement.

               

              

            

    

    
      	
              9.4.

            	
              Indemnity of Plan Administrator.  The Bank shall indemnify and hold harmless the members of the Plan Administrator, and those to whom management and operation
                responsibilities of the plan have been delegated, against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Split Dollar Agreement, except in the case of willful
                misconduct by the Plan Administrator or any of its members.

            

    

    
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              9.5.

            	
              Information.  To enable the Administrator to perform its functions, the Bank shall supply full and timely information to the Administrator on all matters relating to
                the date and circumstances of the retirement, death, or Termination of Employment of the Executive and such other pertinent information as the Administrator may reasonably require.

               

              

            

    

    
      	
              10.

            	
              Claims and Review Procedure

               

              

            

    

    
      	
              10.1.

            	
              Written Claim.  A person who believes that he or she being denied a benefit to which he or she is entitled under this Agreement (herein after referred to as a
                "Claimant") may file a written request for such benefit with the Plan Administrator, setting forth his or her claim. The request must be addressed to the Bank at its then principal place of business.

               

              

            

    

    
      	
              10.2.

            	
              Timing of Response.  Upon receipt of a claim, the Plan Administrator shall advise the Claimant that a reply will be forthcoming within ninety (90) days and shall, in
                fact, deliver such reply within such period. The Plan Administrator may, however, extend the reply period for an additional ninety (90) days for reasonable cause. If the claim is denied in whole or in part, the Plan Administrator shall
                adopt a written opinion, using language calculated to be understood by the Claimant, setting forth:

               

              

            

    

    
      	
              (a)

            	
              The specific reason or reasons for such denial;

               

              

            

    

    
      	
              (b)

            	
              The specific reference to pertinent provisions of this Agreement on which such denial is based;

               

              

            

    

    
      	
              (c)

            	
              A description of any additional material or information necessary for the Claimant to perfect his or her claim and an explanation why such material or such information is necessary;

               

              

            

    

    
      	
              (d)

            	
              Appropriate information as to the steps to be taken if the Claimant wishes to submit the claim for review; and

               

              

            

    

    
      	
              (e)

            	
              The time limits for requesting a review under Section 10.3 and for review under Section 10.4 hereof.

               

              

            

    

    
      	
              10.3.

            	
              Request for Review.  With sixty (60) days after the receipt by the Claimant of the written opinion described in Section 10.2, the Claimant may request in writing that
                the determination of the Plan Administrator be reviewed. Such request must be addressed to the Bank at its then principal place of business. The Claimant or his or her duly authorized representative may, but need not, review the pertinent
                documents and submit issues and comments in writing for consideration by the Plan Administrator. If the Claimant does not request a review of the Plan Administrator's determination within such sixty (60) day period, he or she shall be
                barred and estopped from challenging the Plan Administrator's determination.

               

              

            

    

    
      	
              10.4.

            	
              Review of Decision. The Plan Administrator will review its determination within sixty (60) days after receipt of a request for review. After considering all materials
                presented by the Claimant, the Plan Administrator will render a written opinion, written in a manner calculated to be understood by the Claimant, setting forth the specific reasons for the decision and containing specific references to the
                pertinent provisions of this Agreement on which the decision is based. If special circumstances require that the sixty (60) day time period be extended, the Plan Administrator will so notify the Claimant and will render the decision as soon
                as possible, but no later than one hundred twenty (120) days after receipt of the request for review.

            

    

    
      5

      
        

    

    

    

    
      	
              11.

            	
              Binding Effect.  This Agreement shall bind the Employee and the Bank and their respective heirs, beneficiaries, survivors, executors, administrators, representatives,
                successors, transferees and assigns, and any Insurance Policy Beneficiary.

               

              

            

    

    
      	
              12.

            	
              No Guarantee of Employment.  This Agreement is not an employment policy or contract.  It does not give the Employee the right to remain an employee of the Bank, nor
                does it interfere with the Bank’s right to discharge the Employee.  It also does not require the Executive to remain an employee nor interfere with the Employee’s right to terminate employment at any time.

               

              

            

    

    
      	
              13.

            	
              Waiver of Jury Trial.TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BANK AND EMPLOYEE HEREBY IRREVOCABLY AND EXPRESSLY WAIVE ALL RIGHT TO A TRIAL BY JURY IN ANY
                ACTION, PROCEEDING, OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREIN OR THE ACTIONS OF THE BANK IN THE NEGOTIATION, ADMINISTRATION, OR
                ENFORCEMENT THEREOF.  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
                FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

               

              

            

    

    
      	
              14.

            	
              Entire Agreement; Oral Agreements Ineffective. This Agreement constitutes the entire and final agreement between the Bank and Employee as to the subject matter hereof
                and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties.  There are no unwritten oral agreements between the parties.

               

              

            

    

    
      	
              15.

            	
              No Third-Party Beneficiaries.  The benefits of this Agreement shall not inure to any third party.  This Agreement shall not be construed as creating any rights, claims,
                or causes of action against Bank or any of its officers, directors, agents, or employees in favor of any person or entity other than Employee.

               

              

            

    

    
      	
              16.

            	
              Severability.  If any one or more of the provisions hereof is declared invalid, illegal, or unenforceable in any jurisdiction, the validity, legality, and
                enforceability of the remaining provisions shall not in any way be affected or impaired, and that invalidity, illegality, or unenforceability in one jurisdiction shall not affect the validity, legality, or enforceability of the remaining
                provisions hereof.

            

    

    

    

    
      	
              17.

            	
              Governing Law; Venue; Service of Process. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CONNECTICUT.  THIS AGREEMENT HAS
                BEEN ENTERED INTO IN LITCHFIELD COUNTY, CONNECTICUT, AND IS PERFORMABLE FOR ALL PURPOSES IN LITCHFIELD COUNTY, CONNECTICUT.  THE PARTIES HEREBY AGREE THAT ANY LAWSUIT, ACTION, OR PROCEEDING THAT IS BROUGHT (WHETHER IN CONTRACT, TORT, OR
                OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED THEREBY, OR THE ACTIONS OF THE BANK IN THE NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT OF ANY OF THIS AGREEMENT SHALL BE BROUGHT IN A STATE OR FEDERAL
                COURT OF COMPETENT

            

    

    
      6

      
        

    

    
      	

            	

            

    

    JURISDICTION LOCATED IN LITCHFIELD COUNTY, CONNECTICUT.  EMPLOYEE HEREBY IRREVOCABLY AND UNCONDITIONALLY (A) SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS, (B) WAIVES ANY OBJECTION IT MAY NOW
      OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH LAWSUIT, ACTION, OR PROCEEDING BROUGHT IN ANY SUCH COURT, AND (C) FURTHER WAIVES ANY CLAIM THAT IT MAY NOW OR HEREAFTER HAVE THAT ANY SUCH COURT IS AN INCONVENIENT FORUM.  EACH OF THE PARTIES HERETO AGREE
      THAT SERVICE OF PROCESS UPON IT MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED AT THE ADDRESS FOR NOTICES CONTAINED IN THE SIGNATURE PAGE OF THIS AGREEMENT.

     

    

    
      	
              18.

            	
              Notices.  Any notice, consent or demand required or permitted to be given under the provisions of this Agreement by one party to another shall be in writing, shall be
                signed by the party giving or making the same, and may be given either by delivering the same to such other party personally, or by mailing the same, by United States certified mail, postage prepaid, to such party, addressed to his or her
                last known address as shown on the records of the Bank.  The date of such mailing shall be deemed the date of such mailed notice, consent or demand.

            

    

    

    

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

    

    

    
      

        	
                SALISBURY BANK & TRUST COMPANY:

                 

                

              	
                EMPLOYEE:

              
	
                By: /s/ Richard J. Cantele, Jr.

                

              	
                By: /s/ Peter Albero

                

              
	
                Print Name: Richard J. Cantele, Jr.

                

              	
                Print Name: Peter Albero

                

              
	
                Title: President and Chief Executive Officer

                

              	 

        

        

      

    

    

    

      

  7

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