Document:

Exhibit 10.6

 

1ST COMMONWEALTH BANK OF VIRGINIA

2009 STOCK INCENTIVE PLAN

 

ARTICLE I

ESTABLISHMENT OF THE PLAN

 

1st Commonwealth Bank of Virginia, a federally chartered saving bank (the “Bank”), hereby establishes this 2009 Stock Incentive Plan (the “Plan”) upon the terms and conditions hereinafter stated.

 

ARTICLE II

PURPOSE OF THE PLAN

 

The purpose of this Plan is to aid the Bank in attracting and retaining capable Employees and Non-Employee Directors and to improve the growth and profitability of the Bank and its Subsidiary Companies by providing Employees and Non-Employee Directors with a proprietary interest in the Bank as an incentive to contribute to the success of the Bank and its Subsidiary Companies, and rewarding Employees for outstanding performance and the attainment of targeted goals. All Incentive Stock Options issued under this Plan are intended to comply with the requirements of Section 422 of the Code and the regulations thereunder, and all provisions hereunder shall be read, interpreted and applied with that purpose in mind.

 

ARTICLE III
 DEFINITIONS

 

3.01 “Award” means an Option or Share Award granted pursuant to the terms of this Plan.

 

3.02 “Beneficiary” means the person or persons designated by a Recipient or an Optionee to receive any benefits payable under the Plan in the event of such Recipient’s or Optionee’s death. Such person or persons shall be designated in writing on forms provided for this purpose by the Committee and may be changed from time to time by similar written notice to the Committee. In the absence of a written designation, the Beneficiary shall be the Recipient’s or Optionee’s surviving spouse, if any, or if none, his estate.

 

3.03 “Board” means the Board of Directors of the Bank.

 

3.04 “Change in Control of the Bank” shall mean a change in the ownership of the Bank, a change in the effective control of the Bank or a change in the ownership of a substantial portion of the assets of the Bank, in each case as provided under Section 409A of the Code and the regulations thereunder.

 

3.05 “Code” means the Internal Revenue Code of 1986, as amended.

 

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

 

3.07 “Common Stock” means shares of the common stock, $0.01 par value per share, of the Bank,

 

3.08 “Disability” means an Optionee or Recipient: (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be xpected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Bank.

 

3.09 “Effective Date” means the day upon which the Board approves this Plan.

 

1

 

3.10 “Employee” means any person who is employed by the Bank or a Subsidiary Company, or is an Officer of the Bank or a Subsidiary Company, but not including directors who are not also Officers of or otherwise employed by the Bank or a Subsidiary Company.

 

3.11 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

3.12 “Exercise Price” means the price at which a share of Common Stock may be purchased by an Optionee pursuant to an Option.

 

3.13 “Fair Market Value” shall be equal to the fair market value per share of the Bank’s Common Stock on the date an Option is granted (disregarding lapse restrictions as defined in Treasury Regulation § 1.83-3(i)) as determined by the Committee, provided that the Fair Market Value is determined in a manner consistent with Sections 409A and 422 of the Code, including the regulations promulgated under such sections. For so long as the Common Stock is not readily tradable on an established securities market for purposes of Section 409A of the Code, then the Fair Market Value shall be determined by means of a reasonable valuation method that takes into consideration all available information material to the value of the Bank and that otherwise satisfies the requirements applicable under Section 409A of the Code and the regulations thereunder.

 

3.14 “Incentive Stock Option” means any Option granted under this Plan which the Board intends (at the time it is granted) to be an incentive stock option within the meaning of Section 422 of the Code or any successor thereto.

 

3.15 “Independent Director” means a member of the Board of the Bank who qualifies as (i) an independent director as defined in the listing requirements of the NASDAQ Stock Market regardless of whether the Common Stock is listed on the NASDAQ Stock Market, and (ii) an outside director for purposes of Section 162(m) of the Code and the regulations thereunder.

 

3.16 “Non-Employee Director” means a member of the Board of the Bank, including an advisory director or a director emeritus of the Board of the Bank, who is not an Officer or Employee of the Bank or any Subsidiary Company.

 

3.17 “Non-Qualified Option” means any Option granted under this Plan which is not an Incentive Stock Option.

 

3.18 “Officer” means an Employee whose position in the Bank or Subsidiary Company is that of a corporate officer, as determined by the Board.

 

3.19 “Option” means a right granted under this Plan to purchase Common Stock.

 

3.20 “Optionee” means an Employee or Non-Employee Director or former Employee or Non-Employee Director to whom an Option is granted under the Plan.

 

3.21 “OTS” means the Office of Thrift Supervision, the Bank’s primary federal regulator.

 

3.22 “Performance Share Award” means a Share Award granted to a Recipient pursuant to Section 9.06 of the Plan.

 

3.23 “Performance Goal” means an objective for the Bank or any Subsidiary Company or any unit thereof or any Employee of the foregoing that may be established by the Committee for a Performance Share Award to become vested, earned or exercisable. The establishment of Performance Goals shall be based on one or more of the following criteria:

 

	
(i)
    	
net income, as adjusted   for non-recurring items;
    
	
(ii)
    	
cash earnings;
    

 

2

 

	
(iii)
    	
earnings per share;
    
	
(iv)
    	
cash earnings per   share;
    
	
(v)
    	
return on average   equity;
    
	
(vi)
    	
return on average   assets;
    
	
(vii)
    	
assets;
    
	
(viii)
    	
stock price;
    
	
(ix)
    	
total stockholder   return;
    
	
(x)
    	
capital;
    
	
(xi)
    	
net interest income;
    
	
(xii)
    	
market share;
    
	
(xiii)
    	
cost control or   efficiency ratio; and
    
	
(xiv)
    	
asset growth.
    

 

3.24 “Recipient” means an Employee who receives a Share Award or Performance Share Award under the Plan.

 

3.25 “Share Award” means a right granted under this Plan to receive a distribution of shares of Common Stock upon completion of the service and other requirements described in Article IX and includes Performance Share Awards.

 

3.26 “Subsidiary Company” means a subsidiary of the Bank which meets the definition of “subsidiary corporation” set forth in Section 424(f) of the Code, at the time of granting of the Option in question.

 

ARTICLE IV

ADMINISTRATION OF THE PLAN

 

4.01 Duties of the Committee. The Plan shall be administered and interpreted by the Committee, as appointed from time to time by the Board pursuant to Section 4.02. 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 which (i) deal with satisfaction of an Optionee’s tax withholding obligation pursuant to Article XIII hereof, (ii) include arrangements to facilitate the Optionee’s ability to borrow funds for payment of the exercise or purchase price of an Option, if applicable, from securities brokers and dealers, and (iii) include arrangements which provide for the payment of some or all of such exercise or purchase price by delivery of previously-owned shares of Common Stock or other property and/or by withholding some of the shares of Common Stock which are being acquired. The interpretation and construction by the Committee of any provisions of the Plan, any rule, regulation or procedure adopted by it pursuant thereto or of any Award shall be final and binding in the absence of action by the Board.

 

4.02 Appointment and Operation of the Committee. The members of the Committee shall be appointed by, and will serve at the pleasure of, the Board. 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, each of whom shall be (i) a Non-Employee Director and (ii) an Independent Director. 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.

 

4.03 Revocation for Misconduct. The Board or the Committee may by resolution immediately revoke, rescind and terminate any Award, or portion thereof, to the extent not yet vested or exercised, previously granted or awarded under this Plan to an Employee who is discharged from the employ of the Bank or a Subsidiary Company for cause, which, for purposes hereof, shall mean termination because of the Employee’s personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule, or regulation (other than traffic violations or similar offenses) or

 

3

 

final cease-and-desist order. Options granted to a Non-Employee Director who is removed for cause pursuant to the Bank’s Charter and Bylaws shall terminate as of the effective date of such removal.

 

4.04 Limitation on Liability. Neither the members of the Board nor any member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan, any rule, regulation or procedure adopted by it pursuant thereto or any Awards granted under it. 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 its Subsidiary Companies and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful.

 

4.05 Compliance with Laws and Regulations. All Awards granted hereunder shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any government or regulatory agency as may be required. The Bank shall not be required to issue or deliver any certificates for shares of Common Stock prior to the completion of any registration or qualification of or obtaining of consents or approvals with respect to such shares under any federal or state law or any rule or regulation of any government body, which the Bank shall, in its sole discretion, determine to be necessary or advisable. Moreover, no Option may be exercised if such exercise would be contrary to applicable laws and regulations.

 

Notwithstanding any provision of this Plan, within 30 days following the receipt of notice from the OTS, the Bank’s primary federal regulator, that (i) the Bank has not maintained its minimum capital requirements (as determined by the OTS); and (ii) the OTS is requiring the exercise or forfeiture of vested Awards, any outstanding vested Award shall be exercised or forfeited to the extent directed by the OTS. Upon receipt of such notice from the OTS, the Bank shall promptly notify each Optionee that he must exercise any unexercised Options granted to him prior to the end of the 30-day period or such earlier period as may be specified by the OTS or forfeit such Options. In case of forfeiture, no Optionee or Recipient shall have any cause of action, of any kind or nature, against the Bank or any of their respective Officers or Directors with respect to the forfeiture. In addition, the Bank shall not be liable to any Optionee or Recipient due to the failure or inability of the Bank to provide adequate notice to the Optionee or Recipient.

 

4.06 Restrictions on Transfer. The Bank may place a legend upon any certificate representing shares acquired pursuant to an Award granted hereunder noting that the transfer of such shares may be restricted by applicable laws and regulations.

 

4.07 No Deferral of Compensation Under Section 409A of the Code. All Awards granted under the Plan are designed to not constitute a deferral of compensation for purposes of Section 409A of the Code. Notwithstanding any other provision in this Plan to the contrary, all of the terms and conditions of any Options granted under this Plan shall be designed to satisfy the exemption for stock options set forth in the regulations issued under Section 409A of the Code. Both this Plan and the terms of all Options granted hereunder shall be interpreted in a manner that requires compliance with all of the requirements of the exemption for stock options set forth in the regulations issued under Section 409A of the Code. No Optionee shall be permitted to defer the recognition of income beyond the exercise date of a Non-Qualified Option or beyond the date that the Common Stock received upon the exercise of an Incentive Stock Option is sold. No Recipient shall be permitted to defer the recognition of income beyond the date that a Share Award vests or is deemed earned.

 

4

 

ARTICLE V
 ELIGIBILITY

 

Awards may be granted to such Employees and Non-Employee Directors of the Bank and its Subsidiary Companies as may be designated from time to time by the Board or the Committee. Awards may not be granted to individuals who are not Employees or Non-Employee Directors of either the Bank or its Subsidiary Companies.

 

ARTICLE VI

COMMON STOCK COVERED BY THE PLAN

 

6.01 Number of Shares. The aggregate number of shares of Common Stock which may be issued pursuant to this Plan, subject to adjustment as provided in Article X, shall be 183,492, or 15% of the number of shares of issued in the Bank’s initial public stock offering completed in February 2009. None of such shares shall be the subject of more than one Award at any time, but if an Award as to any shares is surrendered before vesting or exercise, or expires or terminates for any reason without having been exercised in full, or for any reason ceases to be exercisable, the number of shares covered thereby shall again become available for grant under the Plan as if no Awards had been previously granted with respect to such shares.

 

6.02 Source of Shares. The shares of Common Stock issued under the Plan may be authorized but unissued shares, treasury shares or shares purchased by the Bank on the open market or from private sources for use under the Plan.

 

ARTICLE VII

DETERMINATION OF 
 AWARDS, NUMBER OF SHARES, ETC.

 

7.01 Determination of Awards. The Board or the Committee shall, in its discretion, determine from time to time which Employees and Non-Employee Directors will be granted Awards under the Plan, the number of shares of Common Stock subject to each Award, whether each Option will be an Incentive Stock Option or a Non-Qualified Stock Option and the Exercise Price of an Option and whether a Share Award will be a Performance Share Award. In making all such determinations there shall be taken into account the duties, responsibilities and performance of each Optionee or Recipient, his present and potential contributions to the growth and success of the Bank, his salary or other compensation and such other factors deemed relevant to accomplishing the purposes of the Plan.

 

7.02 Limitation on Share Awards. Notwithstanding anything contained in this Plan to the contrary, the maximum number of shares of Common Stock to which Share Awards may be issued under this Plan shall be 45,873 shares, or one-fourth of the total shares available for issuance under this Plan. None of such shares shall be the subject of more than one Award at any time, but if a Share Award as to any shares is surrendered before vested, or expires or terminates for any reason without vesting in full, the number of shares covered thereby shall again become available for grant under the Plan as if no Awards had been previously granted with respect to such shares.

 

7.03 Limitation on Awards to Non-Employee Directors. Notwithstanding anything contained in this Plan to the contrary, the aggregate maximum number of shares of Common Stock to which Options may be granted under this Plan to all Non-Employee Directors in the aggregate shall be 36,698 shares, or 20% of the total shares available for issuance under this Plan.

 

7.04 Maximum Awards to any Person. Notwithstanding anything contained in this Plan to the contrary, the maximum number of shares of Common Stock to which Awards may be granted to any individual (i) in any calendar year shall be 50,000 shares and (ii) in the aggregate shall be 75,000 shares.

 

5

 

ARTICLE VIII 
 STOCK OPTIONS

 

Each Option granted hereunder shall be on the following terms and conditions:

 

8.01 Stock Option Agreement. The proper Officers on behalf of the Bank and each Optionee shall execute a Stock Option Agreement which shall set forth the total number of shares of Common Stock to which it pertains, the exercise price, whether it is a Non-Qualified Option or an Incentive Stock Option, and such other terms, conditions, restrictions and privileges as the Board or the Committee in each instance shall deem appropriate, provided they are not inconsistent with the terms, conditions and provisions of this Plan. Each Optionee shall receive a copy of his executed Stock Option Agreement. Any Option granted with the intention that it will be an Incentive Stock Option but which fails to satisfy a requirement for Incentive Stock Options shall continue to be valid and shall be treated as a Non-Qualified Option.

 

8.02 Option Exercise Price. The per share price at which the subject Common Stock may be purchased upon exercise of an Option shall be no less than one hundred percent (100%) of the Fair Market Value of a share of Common Stock at the time such Stock Option is granted.

 

8.03 Vesting and Exercise of Options.

 

(a)               General Rules. Incentive Stock Options and Non-Qualified Options shall become vested and exercisable at the rate, to the extent and subject to such limitations as may be specified by the Board or the Committee; provided, however, Options granted in the first three years of the Bank’s operations shall vest in approximately equal percentages each year over a period no shorter than three years. Notwithstanding the foregoing, no vesting shall occur on or after an Employee’s employment or service as a Non-Employee Director with the Bank and all Subsidiary Companies is terminated for any reason other than his death or Disability or a Change in Control of the Bank. In determining the number of shares of Common Stock with respect to which Options are vested and/or exercisable, fractional shares will be rounded up to the nearest whole number if the fraction is 0.5 or higher, and down if it is less.

 

(b)               Accelerated Vesting. Unless the Committee or Board shall specifically state otherwise at the time an Option is granted, all Options granted under this Plan shall become vested and exercisable in full on the date an Optionee terminates his employment with the Bank or a Subsidiary Company or service as a Non-Employee Director because of his death or Disability. In addition, all outstanding Options shall become immediately vested and exercisable in full as of the effective date of a Change in Control of the Bank.

 

8.04 Duration of Options.

 

(a)               Employee Grants. Except as provided in Sections 8.04(c) and 8.09, each Option or portion thereof granted to an Employee shall be exercisable at any time on or after it vests and remain exercisable until the earlier of (i) ten (10) years after its date of grant or (ii) three (3) months after the date on which the Employee ceases to be employed by Bank and all Subsidiary Companies, or any successor thereto, unless in the case of a Non-Qualified Option, the Board or the Committee in its discretion decides at the time of grant or thereafter to extend such period of exercise upon termination of employment or service to a period not exceeding five (5) years.

 

(b)               Non-Employee Director Grants. Except as provided in Section 8.04(c), each Option or portion thereof granted to a Non-Employee Director shall be exercisable at any time on or after it vests and becomes exercisable until the earlier of (i) ten (10) years after its date of grant or (ii) three (3) years after the date on which the Optionee ceases to serve as a Non-Employee Director.

 

(c)               Exceptions. Unless the Board or the Committee shall specifically state otherwise at the time an Option is granted, if an Employee terminates his employment with the Bank or a Subsidiary Company as a

 

6

 

result of Disability without having fully exercised his Options, the Employee shall have the right, during the one (1) year period following his termination due to Disability to exercise such Options.

 

Unless the Board or the Committee shall specifically state otherwise at the time an Option is granted, if an Employee or Non-Employee Director terminates his employment or service with the Bank or a Subsidiary Company following a Change in Control of the Bank without having fully exercised his Options, the Optionee shall have the right to exercise such Options during the remainder of the original ten (10) year term (or five (5) year term for Options subject to Section 8.09(b) hereof) of the Option from the date of grant.

 

If an Optionee dies while in the employ or service of the Bank or a Subsidiary Company or terminates employment or service with the Bank or a Subsidiary Company as a result of Disability without having fully exercised his Options, the executors, administrators, legatees or distributees of his estate shall have the right, during the one (1) year period following his death, to exercise such Options.

 

In no event, however, shall any Option be exercisable more than ten (10) years (or five (5) years for Options subject to Section 8.09(b) hereof) from the date it was granted.

 

8.05 Nonassignability. Options shall not be transferable by an Optionee except by will or the laws of descent or distribution, and during an Optionee’s lifetime shall be exercisable only by such Optionee or the Optionee’s guardian or legal representative.

 

8.06 Manner of Exercise. Options may be exercised in part or in whole and at one time or from time to time. The procedures for exercise shall be set forth in the written Stock Option Agreement provided for in Section 8.01 above.

 

8.07 Payment for Shares. Payment in full of the purchase price for shares of Common Stock purchased pursuant to the exercise of any Option shall be made to the Bank upon exercise of the Option. All shares sold under the Plan shall be fully paid and nonassessable. Payment for shares may be made by the Optionee (i) in cash or by check, (ii) by delivery of a properly executed exercise notice, together with irrevocable instructions to a broker to sell the shares and then to properly deliver to the Bank the amount of sale proceeds to pay the exercise price, all in accordance with applicable laws and regulations, (iii) at the discretion of the Board or the Committee, by delivering shares of Common Stock (including shares acquired pursuant to the exercise of an Option) equal in Fair Market Value to the purchase price of the shares to be acquired pursuant to the Option, (iv) at the discretion of the Board or the Committee, by withholding some of the shares of Common Stock which are being purchased upon exercise of an Option, or (v) any combination of the foregoing. With respect to subclause (iii) hereof, the shares of Common Stock delivered to pay the purchase price must have either been (x) purchased in open market transactions or (y) issued by the Bank or pursuant to a plan thereof, in each case more than six months prior to the exercise date of the Option.

 

8.08 Voting and Dividend Rights. No Optionee shall have any voting or dividend rights or other rights of a stockholder in respect of any shares of Common Stock covered by an Option prior to the time that his name is recorded on the Bank’s stockholder ledger as the holder of record of such shares acquired pursuant to an exercise of an Option.

 

8.09 Additional Terms Applicable to Incentive Stock Options. All Options issued under the Plan as Incentive Stock Options will be subject, in addition to the terms detailed in Sections 8.01 to 8.08 above, to those contained in this Section 8.09.

 

(a)           Amount Limitation. Notwithstanding any contrary provisions contained elsewhere in this Plan and as long as required by Section 422 of the Code, the aggregate Fair Market Value, determined as of the time an Incentive Stock Option is granted, of the Common Stock with respect to which Incentive Stock Options are exercisable for the first time by the Optionee during any calendar year under this Plan, and stock options that satisfy the requirements of Section 422 of the Code under any other stock option plan or plans maintained by the Bank (or any parent or Subsidiary Company), shall not exceed $100,000.

 

7

 

(b)           Limitation on Ten Percent Stockholders. The price at which shares of Common Stock may be purchased upon exercise of an Incentive Stock Option granted to an individual who, at the time such Incentive Stock Option is granted, owns, directly or indirectly, more than ten percent (10%) of the total combined voting power of all classes of stock issued to stockholders of the Bank or any Subsidiary Company, shall be no less than one hundred and ten percent (110%) of the Fair Market Value of a share of the Common Stock of the Bank at the time of grant, and such Incentive Stock Option shall by its terms not be exercisable after the earlier of the date determined under Section 8.04 or the expiration of five (5) years from the date such Incentive Stock Option is granted.

 

(c)           Notice of Disposition; Withholding; Escrow. An Optionee shall immediately notify the Bank in writing of any sale, transfer, assignment or other disposition (or action constituting a disqualifying disposition within the meaning of Section 421 of the Code) of any shares of Common Stock acquired through exercise of an Incentive Stock Option, within two (2) years after the grant of such Incentive Stock Option or within one (1) year after the acquisition of such shares, setting forth the date and manner of disposition, the number of shares disposed of and the price at which such shares were disposed of. The Bank shall be entitled to withhold from any compensation or other payments then or thereafter due to the Optionee such amounts as may be necessary to satisfy any withholding requirements of federal or state law or regulation and, further, to collect from the Optionee any additional amounts which may be required for such purpose. The Committee may, in its discretion, require shares of Common Stock acquired by an Optionee upon exercise of an Incentive Stock Option to be held in an escrow arrangement for the purpose of enabling compliance with the provisions of this Section 8.09(c).

 

ARTICLE IX 
 SHARE AWARDS

 

9.01 Share Award Notice. As promptly as practicable after the granting of a Share Award pursuant to the terms hereof, the Board or the Committee shall notify the Recipient in writing of the grant of the Share Award, the number of shares covered by the Share Award, whether the Share Award is a Performance Share Award and the terms upon which the shares subject to the Share Award shall be distributed to the Recipient. The Board or the Committee shall maintain records as to all grants of Share Awards and Performance Share Awards under the Plan.

 

9.02 Earning Plan Shares; Forfeitures.

 

(a)           General Rules. Subject to the terms hereof, Share Awards granted hereunder shall be earned at the rate and to the extent as may be specified by the Committee at the date of grant thereof; provided, however, that unless otherwise determined by the Board or the Committee, Share Awards granted during the first three years of the Bank’s operations shall vest in approximately equal percentages each year over a period no shorter than three years. If the employment of an Employee is terminated before the Share Award has been completely earned for any reason (except as specifically provided in subsections (b) and (c) below), the Recipient shall forfeit the right to any shares subject to the Share Award which have not theretofore been earned. In the event of a forfeiture of the right to any shares subject to a Share Award, such forfeited shares shall become available for grant pursuant to Articles VI and VII as if no Share Award had been previously granted with respect to such shares. No fractional shares shall be distributed pursuant to this Plan.

 

(b)           Exception for Termination Due to Death or Disability. Notwithstanding the general rule contained in Section 9.02(a), all shares subject to a Share Award held by a Recipient whose employment with the Bank or any Subsidiary Company terminates due to death or Disability shall be deemed fully earned as of the Recipient’s last day of employment with the Bank or any Subsidiary Company and shall be distributed as soon as practicable thereafter.

 

(c)           Exception for a Change in Control of the Bank. Notwithstanding the general rule contained in Section 9.02(a), all shares subject to a Share Award held by a Recipient shall be deemed to be fully earned as of the effective date of a Change in Control of the Bank.

 

8

 

9.03 Dividends and Voting. A Recipient shall not be entitled to receive any cash dividends or stock dividends declared on the Common Stock with respect to any unvested Share Award. A Recipient shall not be entitled to any voting rights with respect to any unvested Share Award which has not yet been earned and distributed to him or her pursuant to Section 9.04.

 

9.04 Distribution of Plan Shares.

 

(a)           Timing of Distributions: General Rule. Subject to the provisions of Section 9.06 hereof, shares shall be distributed to the Recipient or his Beneficiary, as the case may be, as soon as practicable after they have been earned.

 

(b)           Form of Distributions. All shares shall be distributed in the form of Common Stock. One share of Common Stock shall be given for each Share Award earned and distributable.

 

(c)           Restrictions on Selling of Plan Shares. Share Awards may not be sold, assigned, pledged or otherwise disposed of prior to the time that they are earned and distributed pursuant to the terms of this Plan. Upon distribution, the Board or the Committee may require the Recipient or his Beneficiary, as the case may be, to agree not to sell or otherwise dispose of his distributed shares except in accordance with all then applicable federal and state securities laws, and the Board or the Committee may cause a legend to be placed on the stock certificate(s) representing the distributed shares in order to restrict the transfer of the distributed shares for such period of time or under such circumstances as the Board or the Committee, upon the advice of counsel, may deem appropriate.

 

9.05 Rights of Recipients. Notwithstanding anything to the contrary herein, a Participant who receives a Share Award payable in Common Stock shall have no rights as a stockholder until the Common Stock is issued pursuant to the terms of the Award Agreement.

 

9.06 Performance Awards

 

(a)           Designation of Performance Share Awards. The Committee may determine to make any Share Award a Performance Share Award by making such Share Award contingent upon the achievement of a Performance Goal or any combination of Performance Goals. Each Performance Share Award shall be evidenced by a written agreement (“Award Agreement”), which shall set forth the Performance Goals applicable to the Performance Share Award, the maximum amounts payable and such other terms and conditions as are applicable to the Performance Share Award.

 

(b)           Timing of Grants. Any Performance Share Award shall be made not later than 90 days after the start of the period for which the Performance Share Award relates and shall be made prior to the completion of 25% of such period. All determinations regarding the achievement of any Performance Goals will be made by the Committee. The Committee may not increase during a year the amount of a Performance Share Award that would otherwise be payable upon achievement of the Performance Goals but may reduce or eliminate the payments as provided for in the Award Agreement.

 

(c)           Restrictions on Grants. Nothing contained in the Plan will be deemed in any way to limit or restrict the Committee from making any Award or payment to any person under any other plan, arrangement or understanding, whether now existing or hereafter in effect.

 

(d)           Distribution. No Performance Share Award or portion thereof that is subject to the attainment or satisfaction of a condition of a Performance Goal shall be distributed or considered to be earned or vested until the Committee certifies in writing that the conditions or Performance Goal to which the distribution, earning or vesting of such Award is subject have been achieved.

 

9.07. Nontransferable. Share Awards and Performance Share Awards and rights to shares shall not be transferable by a Recipient, and during the lifetime of the Recipient, shares which are the subject of Share Awards may only be earned by and paid to a Recipient who was notified in writing of a Share Award by the Committee

 

9

 

pursuant to Section 9.01. No Recipient or Beneficiary shall have any right in or claim to any assets of the Plan nor shall the Corporation or any Subsidiary Company be subject to any claim for benefits hereunder.

 

ARTICLE X

ADJUSTMENTS FOR CAPITAL CHANGES

 

10.01 General Adjustments. The aggregate number of shares of Common Stock available for issuance under this Plan, the number of shares to which any Award relates, the maximum number of shares that can be covered by Awards to each Employee, each Non-Employee Director and Non-Employee Directors as a group and the exercise price per share of Common Stock under any Option shall be proportionately adjusted for any increase or decrease in the total number of outstanding shares of Common Stock issued subsequent to the Effective Date of this Plan resulting from a split, subdivision or consolidation of shares or any other capital adjustment, the payment of a stock dividend, or other increase or decrease in such shares effected without receipt or payment of consideration by the Bank.

 

10.02 Adjustments for Mergers and Other Corporate Transactions. If, upon a merger, consolidation, reorganization, liquidation, recapitalization or the like of the Bank, the shares of the Bank’s Common Stock shall be exchanged for other securities of the Bank or of another bank or corporation, each Award shall be converted, subject to the conditions herein stated, into the right to purchase or acquire such number of shares of Common Stock or amount of other securities of the Bank or such other bank or corporation as were exchangeable for the number of shares of Common Stock of the Bank which such Optionee or Recipient would have been entitled to purchase or acquire except for such action, and appropriate adjustments shall be made to the per share exercise price of outstanding Options, provided that in each case the number of shares or other securities subject to the substituted or assumed stock option and the exercise price thereof shall be determined in a manner that satisfies the requirements of Treasury Regulation §1.424-1 and the regulations issued under Section 409A of the Code so that the substituted or assumed option is not deemed to be a modification of the outstanding Options.

 

ARTICLE XI

AMENDMENT AND TERMINATION OF THE PLAN

 

The Board may, by resolution, at any time terminate or amend the Plan with respect to any shares of Common Stock as to which Awards have not been granted, subject to any required stockholder approval or any stockholder approval which the Board may deem to be advisable for any reason, such as for the purpose of obtaining or retaining any statutory or regulatory benefits under tax, securities or other laws or satisfying any applicable stock exchange listing requirements. Notwithstanding the foregoing, the Board may not, without the approval of stockholders, terminate the Plan or amend the Plan to: (i) change the class of employees, Directors or participants who are eligible for Awards under the Plan; (ii) except as provided in Article X of the Plan, increase the total number of shares of Common Stock which may be issued under the Plan; or (iii) change the type or class of equity awards available for grant under the Plan. The Board may not, without the consent of the holder of an Award, alter or impair any Award previously granted or awarded under this Plan except as specifically authorized herein.

 

ARTICLE XII

EMPLOYMENT AND SERVICE RIGHTS

 

Neither the Plan nor the grant of any Award hereunder nor any action taken by the Committee or the Board in connection with the Plan shall create any right on the part of any Employee or Non-Employee Director to continue in such capacity.

 

ARTICLE XIII
 WITHHOLDING

 

13.01 Tax Withholding. The Bank may withhold from any cash payment made under this Plan sufficient amounts to cover any applicable withholding and employment taxes, and if the amount of such cash payment is insufficient, the Bank may require the Optionee or Recipient to pay to the Bank the amount required to be withheld as a condition to delivering the shares acquired pursuant to an Award. The Bank also may withhold or collect

 

10

 

amounts with respect to a disqualifying disposition of shares of Common Stock acquired pursuant to exercise of an Incentive Stock Option, as provided in Section 8.09(c).

 

13.02 Methods of Tax Withholding. The Board or the Committee is authorized to adopt rules, regulations or procedures which provide for the satisfaction of an Optionee’s or Recipient’s tax withholding obligation by the retention of shares of Common Stock to which the Employee would otherwise be entitled pursuant to an Award and/or by the Optionee’s delivery of previously-owned shares of Common Stock or other property.

 

ARTICLE XIV

EFFECTIVE DATE OF THE PLAN; TERM

 

14.01 Effective Date of the Plan. This Plan shall become effective on the Effective Date. The Plan, and any previously granted Awards, shall be subject to the approval of the stockholders of the Bank pursuant to Article XV hereof.

 

14.02 Term of the Plan. Unless sooner terminated, this Plan shall remain in effect for a period of ten (10) years ending on the tenth anniversary of the Effective Date. Termination of the Plan shall not affect any Awards previously granted and such Awards shall remain valid and in effect until they have been fully exercised or earned, are surrendered or by their terms expire or are forfeited.

 

ARTICLE XV

STOCKHOLDER APPROVAL

 

The Bank shall submit this Plan to stockholders for approval at a meeting of stockholders of the Bank held within twelve (12) months following the Effective Date in order to meet the requirements of Section 422 of the Code and regulations thereunder.

 

ARTICLE XVI MISCELLANEOUS

 

16.01 Governing Law. To the extent not governed by federal law, under the laws of the Commonwealth of Virginia.

 

16.02 Pronouns. Wherever appropriate, the masculine pronoun shall include the feminine, and the singular shall include the plural.

 

11Exhibit 10.7

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the 3rd day of May, 2018, by and between FVCbank, a Virginia chartered commercial bank (the “Bank”) and the wholly owned subsidiary of FVCbankcorp, Inc. (the “Company”), and Gilbert F. Kennedy, III (the “Executive”).

 

WHEREAS, the Executive currently serves as President and Chief Executive Officer of Colombo Bank, a Maryland chartered commercial bank (“Colombo”);

 

WHEREAS, the Company, the Bank and Colombo are entering into an Agreement and Plan of Merger (and related Plan of Merger between the Bank and Colombo), pursuant to which the Company will acquire Colombo by means of the merger of Colombo with and into the Bank, with the Bank surviving (the “Merger”);

 

WHEREAS, the Bank desires to retain the Executive following the effectiveness of the Merger, and the Executive desires to accept such employment, all upon the terms and conditions hereinafter set forth; and

 

WHEREAS, Bank and the Executive agree that the employment agreement between Colombo and the Executive dated December 31, 2016 (the “Colombo Agreement”) shall be terminated as of the Effective Date (as hereinafter defined) of the Merger, and in lieu of any rights, payments and obligations under the Colombo Agreement, the Executive shall be entitled to the rights and payments set forth herein and the parties hereto shall be subject to the obligations set forth herein;

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.                                      Employment.  The Bank agrees to employ the Executive, and the Executive agrees to be employed, as Executive Vice President- Regional President DC/Maryland of the Bank, subject to the terms and provisions of this Agreement.  The Executive represents and warrants to the Bank that the Executive is not subject to any legal obligations or restrictions that would prevent or limit his entering into this Agreement and performing his responsibilities hereunder.

 

2.                                      Certain Definitions.  As used in this Agreement, the following terms have the meanings set forth below:

 

2.1                               “Affiliate” means, with respect to any Person, (i) any Person directly or indirectly controlling, controlled by or under common control with such Person, (ii) any Person owning or controlling fifty percent (50%) or more of the outstanding voting interests of such Person, (iii) any officer, director, general partner, managing member, or trustee of, or Person serving in a similar capacity with respect to, such Person, or (iv) any Person who is an officer, director, general partner, member, trustee or holder of fifty percent (50%) or more of the voting interests of any Person described in clauses (i), (ii) or (iii) of this sentence. For purposes of this definition, the terms “controlling,” “controlled by,” or “under common control with” shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

2.3                               “Bank” has the meaning set forth in the recitals.  If the Bank is merged into any other Entity, or transfers substantially all of its business operations or assets to another Entity, the term “Bank” shall be deemed to include such successor Entity.

 

2.4                               “Bank Entities” means and includes any of the Bank, and, whether currently existing or hereafter organized, any direct or indirect subsidiary of the Bank, any direct or indirect parent holding company of the Bank, and any direct or indirect subsidiary of any holding company of the Bank.

 

2.5                               “Bank Regulatory Agency” means any governmental authority, regulatory agency, ministry, department, statutory corporation, central bank or other body of the United States or of any other country or of any

 

 

state or other political subdivision of any of them having jurisdiction over the Bank or any transaction contemplated, undertaken or proposed to be undertaken by the Bank, including, but not necessarily limited to:

 

(a)                                 the FDIC;

 

(b)                                 the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of Richmond, the Virginia Bureau of Financial Institutions, or any other federal or state bank regulatory or commissioner’s office having jurisdiction over the Bank;

 

(c)                                  any Person established, organized, owned (in whole or in part) or controlled by any of the foregoing; and

 

(d)                                 any predecessor, successor or assignee of any of the foregoing.

 

2.6                               “Board” means the Board of Directors of the Bank.

 

2.7                               “Code” means the Internal Revenue Code of 1986, as amended.

 

2.8                               “Competitive Business” means the banking and financial services business, which includes, without limitation, consumer savings, commercial banking, the savings and loan business and mortgage lending.

 

2.9                               “Competitive Products or Services” means, as of any time, those products or services of the type that any of the Bank Entities is providing, or is actively preparing to provide, to its customers.

 

2.10                        “Disability” means a mental or physical condition which, in the good faith opinion of the Board, renders the Executive, with reasonable accommodation, unable or incompetent to carry out the material job responsibilities which the Executive held or the material duties to which the Executive was assigned at the time the disability was incurred, which has existed for at least three (3) months and which in the opinion of a physician mutually agreed upon by the Bank and the Executive (provided that neither party shall unreasonably withhold such agreement) is expected to be permanent or to last for an indefinite duration or a duration in excess of nine (9) months.

 

2.11.                     “Effective Date” means the effective date of the Merger, as determined in accordance with the Agreement and Plan of Merger, of even date herewith, among the Company, the Bank and Colombo.

 

2.12                        “FDIA” means the Federal Deposit Insurance Act, as amended.

 

2.13                        “FDIC” means the Federal Deposit Insurance Corporation.

 

2.14                        “Person” means any individual or Entity.

 

2.15                        “Section 409A” means Section 409A of the Code and the regulations and administrative guidance promulgated thereunder.

 

2.16                        “Term” means the Initial Term and any applicable Renewal Term, each as defined in Section 3.1

 

2.17                        “Termination Date” means the date on which the Term expires pursuant to Section 3.1 or on which the Term is earlier terminated pursuant to Section 7.2, 7.3, 7.4 or 7.5, as applicable.

 

Other terms are defined throughout this Agreement and have the meanings so given them.

 

2

 

3.                                      Term

 

3.1(a)                Initial Term.                             The Executive’s employment hereunder shall commence on the Effective Date and shall continue for a period of one (1) year thereafter, unless sooner terminated in accordance with the provisions of this Agreement (the “Initial Term”).

 

3.2(b)                Renewal Term.              The Term of this Agreement shall automatically be extended for a period of one year at the conclusion of the Initial Term, and again extended at the conclusion of each successive one-year period thereafter (each such one-year period a “Renewal Term”), unless:

 

(1)                                 either party terminates this Agreement as of the end of the Initial Term or any Renewal Term by giving written notice to the other party of intent not to renew, delivered at least ninety (90) days prior to the end of the Initial Term or applicable Renewal Term; or

 

(2)                                 the Agreement is terminated prior to the end of the Initial Term or any Renewal Term, as applicable, in accordance with Section 7 of this Agreement.

 

4.                                      Duties of the Executive.

 

4.1                               Nature and Substance.  The Executive will have functional responsibility for loan growth, loan quality, deposit growth and meeting balance sheet and revenue goals for the former Colombo market area, and the Washington DC and Maryland market in general; including input into hiring and retention of deposit and lending officers, together with such other duties as may be assigned by the President, the Chief Executive Officer or the Board. The Executive shall report directly to the President and Chief Executive Officer.

 

4.2                               Performance of Services.  The Executive agrees to devote his full business time and attention to the performance of his duties and responsibilities under this Agreement and shall use his best efforts and discharge his duties to the best of his ability for and on behalf of the Bank and toward its successful operation.  The Executive agrees that, without the prior written consent of the Board, he will not during the Term, directly or indirectly, perform services for or obtain a financial or ownership interest in any other Entity (an “Outside Arrangement”) if such Outside Arrangement would interfere with the satisfactory performance of his duties to the Bank, present a conflict of interest with the Bank, breach his duty of loyalty or fiduciary duties to the Bank, or otherwise conflict with the provisions of this Agreement.  The Executive shall promptly notify the Board of any Outside Arrangement, provide the Bank with any written agreement in connection therewith and respond fully and promptly to any questions that the Board may ask with respect to any Outside Arrangement.  If the Board determines that the Executive’s participation in an Outside Arrangement would interfere with his satisfactory performance of his duties to the Bank, present a conflict of interest with the Bank, breach his duty of loyalty or fiduciary duties to the Bank, or otherwise conflict with the provisions of this Agreement, the Executive shall not undertake, or shall cease, such Outside Arrangement as soon as feasible after the Board notifies him of such determination.  Notwithstanding any provision hereof to the contrary, this Section 4.2 does not restrict the Executive’s right to own or manage the Executive’s personal passive investments; or service as a director, trustee or similar official of non-profit, civic, cultural, professional or philanthropic organizations, so long as such service does not adversely affect the performance of the Executive’s services and duties hereunder.

 

4.3                               Compliance with Law.  The Executive shall comply in all material respects with all laws, statutes, ordinances, rules and regulations relating to his employment and duties.

 

5.                                      Compensation; Benefits. As full compensation for all services rendered pursuant to this Agreement and the covenants contained herein, the Bank shall pay to the Executive the following:

 

5.1                               Salary.  Commencing on the Effective Date through the end of the Initial Term, the Executive shall be paid a salary (“Salary”) of Two Hundred and Fifty Thousand Dollars ($250,000) on an annualized basis. The Bank shall pay the Executive’s Salary in equal installments in accordance with the Bank’s regular payroll periods as may

 

3

 

be set by the Bank from time to time. The Executive’s Salary may be increased from time to time, at the discretion of the Board, but may not be decreased without the Executive’s consent.

 

5.2.                            Bonuses.

 

(a)                                 The Executive shall be entitled to a lump sum payment of $608,380.86, payable on the fifth business day after the Effective Date.

 

(b)                                 The Executive shall be entitled to discretionary bonus payments as determined pursuant to Board approved incentive plans, or for the achievement of specified goals or objectives determined by the Board or the appropriate committee thereof, or such other bonus payments as the Board, or the appropriate committee thereof, may in its sole discretion determine.

 

5.3                               Stock Awards.  As of the Effective Date, the Executive shall be entitled to an award of 2,000 restricted stock units under the Company’s Amended and Restated 2008 Stock Plan (or other then current equity compensation plan) (the 2008 Plan”). Subject to acceleration in accordance with the terms of the 2008 Plan (or other then current equity compensation plan), such award shall vest in equal installments on the first through fourth anniversaries of the Effective Date. The Executive shall be eligible to receive further awards of options, restricted stock or restricted stock units under the 2008 Plan (or then then current equity compensation plan), from time to time, at the discretion of the committee administering said plan, subject to the approval of the Compensation Committee or comparable committee of the Company Board.

 

5.4                               Withholding.  Payments of Salary and other amounts hereunder shall be subject to the customary withholding of income and other employment taxes as is required with respect to compensation paid by an employer to an employee.

 

5.5                               Vacation and Leave.  The Executive shall be entitled to such vacation and leave as may be provided for under the current and future leave and vacation policies of the Bank for executive officers of the Bank Entities, provided however that the Executive shall be entitled to an aggregate of not less than 30 days of paid time off (vacation, sick and personal days) on an annualized basis.

 

5.6                               Office Space.  The Bank will provide customary office space and office support to the Executive.

 

5.7                               Car Allowance.  The Bank will pay the Executive a monthly car allowance of One Thousand One Hundred Dollars ($1,100).

 

5.8                               Non-Life Insurance.  The Bank will provide the Executive with group health, dental, vision, disability and other insurance as the Bank may make available for all executive officers of the Bank, on the same basis as other executive officers.

 

5.9                               Life Insurance.  The Bank may, at its cost and for its benefit, obtain and maintain “key-man” life insurance and/or Bank-owned life insurance on the Executive in such amount as determined by the Board from time to time. The Executive agrees to cooperate fully and to take all actions reasonably required by the Bank in connection with such insurance.

 

5.10                        Expenses.  The Bank shall, promptly upon presentation of proper expense reports therefor, pay or reimburse the Executive, in accordance with the policies and procedures established from time to time by the Bank for its officers, for all reasonable and customary travel (other than local use of an automobile for which the Executive is being  provided the car allowance) and other out-of-pocket expenses incurred by the Executive in the performance of his duties and responsibilities under this Agreement and promoting the business of the Bank, including the cost of attending business related seminars, meetings and conventions.

 

5.11                        Retirement Plans.  The Executive shall be entitled to participate in any and all qualified pension or other retirement plans of the Bank which may be applicable to personnel of the Bank.

 

4

 

5.12                        Other Benefits.  While this Agreement is in effect, the Executive shall be entitled to all other benefits that the Bank provides from time to time to its senior executives and such other benefits as the Board may from time to time approve for the Executive.

 

5.13                        Eligibility.  Participation in any health, life, accident, disability, medical expense or similar insurance plan or any qualified pension or other retirement plan shall be subject to the terms and conditions contained in such plan. All matters of eligibility for benefits under any insurance plans shall be determined in accordance with the provisions of the applicable insurance policy issued by the applicable insurance company.

 

6.                                      Conditions Subsequent to Continued Operation and Effect of Agreement.

 

6.1                               Continued Approval by Bank Regulatory Agencies.  This Agreement and all of its terms and conditions, and the continued operation and effect of this Agreement and the Bank’s continuing obligations hereunder, shall at all times be subject to the continuing approval of any and all Bank Regulatory Agencies whose approval is a necessary prerequisite to the continued operation of the Bank. Should any term or condition of this Agreement, upon review by any Bank Regulatory Agency, be found to violate or not be in compliance with any then-applicable statute or any rule, regulation, order or understanding promulgated by any Bank Regulatory Agency, or should any term or condition required to be included herein by any such Bank Regulatory Agency be absent, this Agreement may be rescinded and terminated by the Bank if the parties hereto cannot in good faith agree upon such additions, deletions or modifications as may be deemed necessary or appropriate to bring this Agreement into compliance.

 

7.                                      Termination of Agreement.  Prior to the Expiration Date, the Term of this Agreement may be terminated as provided below in this Article 7.

 

7.1                               Definition of Cause.  For purposes of this Agreement, “Cause” means:

 

(a)                                 any act of theft, fraud, intentional misrepresentation, personal dishonesty or breach of fiduciary duty involving personal gain or similar conduct by the Executive with respect to the Bank Entities or the services to be rendered by him under this Agreement;

 

(b)                                 any Bank Regulatory Agency action or proceeding described in Section 7.9.1(a) against the Executive based upon a finding by the Bank Regulatory Agency of his negligence, fraud, malfeasance or misconduct;

 

(c)                                  The Executive’s non-appealable conviction or plea of nolo contendere at the trial court level of a felony, or any crime of moral turpitude, or involving dishonesty, deception or breach of trust;

 

(d)                                 any of the following conduct on the part of the Executive that has not been corrected or cured by the Executive within thirty (30) days after having received written notice from the Bank detailing and describing such conduct, or where a correction or cure by its nature cannot be achieved within such period, corrective or curative action has been commenced within such thirty (30) day period (provided, however, that the Bank shall not be required to provide the Executive with notice and opportunity to cure more than two (2) times in any twelve (12) month period):

 

(i)                                     habitual absenteeism, or the failure by or the inability of the Executive to devote full time attention and energy to the performance of the Executive’s duties pursuant to this Agreement (other than by reason of his death or Disability);

 

(ii)                                  intentional material failure by the Executive to carry out the explicit lawful and reasonable directions, instructions, policies, rules, regulations or decisions of the President, the Chief Executive Officer or the Board which are consistent with his position;

 

(iii)                               willful or intentional misconduct on the part of the Executive that is materially injurious to the financial condition or business reputation of the Bank or any of its Affiliates; or

 

5

 

(iv)                              any action (including any failure to act) or conduct by the Executive in violation of a material provision of this Agreement (including but not limited to the provisions of Article 8 hereof, which shall be deemed to be material); or

 

(f)                                   the use of drugs, alcohol or other substances by the Executive to an extent which materially interferes with or prevents the Executive from performing his duties under this Agreement;

 

(g)                                  termination under the circumstances described in the last sentence of Section 7.5.

 

7.2                               Termination by the Bank for Cause.  After the occurrence of any of the conditions specified in Section 7.1, the Bank shall have the right to terminate the Term for Cause, effective immediately on delivery of written notice to the Executive.

 

7.3                               Termination by the Bank without Cause.  The Bank shall have the right to terminate the Term at any time on written notice without Cause, for any or no reason, such termination to be effective on the date on which the Bank gives such notice to the Executive or such later date as may be specified in such notice.

 

7.4                               Termination for Death or Disability.  The Term shall automatically terminate upon the death of the Executive or upon the Board’s determination that the Executive is suffering from a Disability.

 

7.5                               Termination by the Executive.  The Executive shall have the right to terminate the Term at any time, such termination to be effective on the date ninety (90) days after the date on which the Executive gives such notice to the Bank.  After receiving notice of termination, the Bank may require the Executive to devote his good faith energies to transitioning his duties to his successor and to otherwise helping to minimize the adverse impact of his resignation upon the operations of the Bank.  If the Executive unreasonably fails or refuses to fully cooperate in all material respects with such transition, the Bank may immediately terminate the Executive, which shall be deemed to be a termination for Cause.

 

7.6                               Pre-Termination Salary and Expenses.  Without regard to the reason for, or the timing of, the termination of the Agreement or upon expiration of the Term:  (a) the Bank shall pay the Executive any unpaid Salary due for the period through and including the Termination Date; and (b) following submission of proper expense reports by the Executive, the Bank shall reimburse the Executive for all expenses incurred on or prior to the Termination Date and subject to reimbursement pursuant to Section 5.10 hereof.

 

7.7                               Severance if Termination by the Bank without Cause Other than Upon Notice of Non-Renewal. (a) Provided that the Executive signs and delivers to the Bank no later than twenty-one (21) days after the Termination Date a General Release and Waiver in the form attached to this Agreement as Attachment A (the Release”), and except as set forth in the immediately following sentence, if the Term is terminated by the Bank without Cause, the Bank shall, for the remainder of the then current Term, continue to pay the Executive his Salary at the rate being paid as of the Termination Date. For purposes hereof, the expiration of the Term at the end of the then current Term following the delivery of notice of intent not to renew, shall not be deemed or construed to be a termination without Cause.

 

(b)                                 Notwithstanding the foregoing, if the twenty-one (21) day period in which the Executive may deliver the Release begins in one calendar year and ends in the following calendar year, the date on which payments will commence under this Section 7.7 shall be the first day of such following calendar year or, if later, the date on which the Release is delivered to the Bank. Any payments due the Executive pursuant to this Section 7.7 shall be paid to the Executive in installments on the same schedule as The Executive was paid immediately prior to the Termination Date, each installment to be the same amount the Executive would have been paid under this Agreement if he had not been terminated.  Each of such installment payments shall be deemed to be a separate payment for purposes of Section 409A of the Code, In the event the Executive breaches any provision of Article 8 of this Agreement, the Executive’s entitlement to any payments payable pursuant to this Section 7.7, if and to the extent not yet paid, shall thereupon immediately cease and terminate as of the date of such breach. Notwithstanding anything to the contrary in this Section 7.7, any payment pursuant to this Section shall be subject to any delay in payment required by Section 9.1 hereof.

 

6

 

7.9                               Certain Regulatory Events.

 

7.9.1.                  Notwithstanding anything to the contrary contained herein:

 

(a)                                 If the Executive is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued under Sections 8(e)(4) or 8(g)(1) of the FDIA, all obligations of the Bank under this Agreement shall terminate as of the effective date of the order.

 

(b)                                 If the Bank is in default (as defined in Section 3(x)(1) of FDIA), all obligations of the Bank under this Agreement shall terminate as of the date of default.

 

(c)                                  If a notice served under Sections 8(e)(3) or 8(g)(1) of the FDIA suspends and/or temporarily prohibits the Executive from participating in the conduct of the Bank’s affairs, the Bank’s obligations under this Agreement shall be suspended as of the date of such service, unless stayed by appropriate proceedings.  If the charges in the notice are dismissed, the Bank shall promptly, (i) pay the Executive all or part of the compensation withheld while its contract obligations were suspended, and (ii) reinstate (in whole or in part) any of its obligations that were suspended.

 

(d)                                 If the Bank is prohibited from making a payment hereunder, or agreeing to make a payment hereunder, under Part 359 of the regulations of the FDIC, then the Bank shall not be obligated to make such payment, and the Executive shall have no right to receive such payment.  If the Bank is prohibited from making a payment hereunder without the prior consent or approval of the FDIC or other Bank Regulatory Agency, then the Bank shall not be obligated to make such payment, and the Executive shall have no right to receive such payment, unless such consent or approval is received.

 

(e)                                  The occurrence of any of the events described in paragraphs (a) and (c) of this Section 7.9.1 may be considered by the Bank in connection with a termination for Cause.

 

8.                                      Confidentiality; Non-Competition; Non-Interference.

 

8.1                               Confidential Information.  The Executive, during employment, will have, and has had, access to and become familiar with various confidential and proprietary information of the Bank Entities and/or relating to the business of the Bank Entities (“Confidential Information”), including, but not limited to: business plans; operating results; financial statements and financial information; contracts; mailing lists; purchasing information; customer data (including lists, names and requirements); feasibility studies; personnel related information (including compensation, compensation plans, and staffing plans); internal working documents and communications; and other materials related to the businesses or activities of the Bank Entities which is made available only to employees with a need to know or which is not generally made available to the public.  Failure to mark any Confidential Information as confidential, proprietary or protected information shall not affect its status as part of the Confidential Information subject to the terms of this Agreement. Notwithstanding the foregoing, “Confidential Information” shall not include (1) information that is or becomes public without a breach of the Agreement, (2) information that became available to the Executive on a non-confidential basis from a source not bound, to the Executive’s knowledge, by a non-disclosure agreement that covers the relevant information, (3) information that the Executive knows (and can demonstrate that he knows) before commencing employment with the Bank, and (4) information required to be disclosed by law after notice so that the Bank can contest the required disclosure or seek some other protection.

 

8.2                               Nondisclosure.  The Executive hereby covenants and agrees that he shall not, directly or indirectly, disclose or use, or authorize any Person to disclose or use, any Confidential Information (whether or not any of the Confidential Information is novel or known by any other Person); provided however, that this restriction shall not apply to the use or disclosure of Confidential Information (i) to any governmental entity to the extent required by law, (ii) which is or becomes publicly known and available through no wrongful act of the Executive or any Affiliate of the Executive or (iii) in connection with the performance of the Executive’s duties under this Agreement. Nothing contained in this Agreement limits the Executive’s ability to file a charge or complaint with the Equal Employment Opportunity Commission, any Bank regulatory Agency, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission that has jurisdiction over any of the Bank Entities (the “Government

 

7

 

Agencies”). The Executive further understands that this Agreement does not limit his ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Bank Entities. This Agreement does not limit the Executive’s right to receive an award for information provided to any Government Agencies. In addition, pursuant to the Defend Trade Secrets Act of 2016, the Executive understands that an individual may not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.  Further, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the employer’s trade secrets to the attorney and use the trade secret information in the court proceeding if the individual (y) files any document containing the trade secret under seal; and (z) does not disclose the trade secret, except pursuant to court order.

 

8.3                               Documents.  All files, papers, records, documents, compilations, summaries, lists, reports, notes, databases, tapes, sketches, drawings, memoranda, and similar items (collectively, “Documents”), whether prepared by the Executive, or otherwise provided to or coming into the possession of the Executive, that contain any Confidential Information about or pertaining or relating to the Bank Entities (the “Bank Information”) shall at all times remain the exclusive property of the Bank Entities. Promptly after a request by the Bank or the Termination Date, the Executive shall take reasonable efforts to (i) return to the Bank all Documents in any tangible form (whether originals, copies or reproductions) and all computer disks or other media containing or embodying any Document or Bank Information and (ii) purge and destroy all Documents and Bank Information in any intangible form (including computerized, digital or other electronic format) as may be requested in writing by the Board of the Bank, and the Executive shall not retain in any form any such Document or any summary, compilation, synopsis or abstract of any Document or Bank Information.

 

8.4                               Non-Competition.  The Executive hereby acknowledges and agrees that, during the course of employment, the Executive has become, and will become, familiar with and involved in all aspects of the business and operations of the Bank Entities. The Executive hereby covenants and agrees that during the Term and until: (a) one (1) year after the Termination Date if the Executive voluntarily terminates his employment with the Bank during the Initial Term, (b) six (6) months after the Termination Date if the Executive voluntarily terminates his employment after the one-year anniversary of the Effective Date during the Term or (c) six months after the Termination Date, or if later, the last day of the then current Term, if the Bank terminates the Executive’s employment (the “Restricted Period”), the Executive shall not, without the prior approval of a majority of the Board of Directors (the Executive not participating), at any time (except for the Bank Entities), directly or indirectly, in any capacity (whether as a proprietor, owner, agent, officer, director, shareholder, organizer, partner, principal, manager, member, employee, contractor, consultant or otherwise) provide any advice, assistance or services to any Competitive Business or to any Person that is attempting to form or acquire a Competitive Business if such Competitive Business operates, or is planning to operate, any office, branch or other facility (in any case, a “Branch”) that is (or is proposed to be) located within any county or city within the Washington-Arlington-Alexandria, DC-VA-MD-WV metropolitan statistical area as defined by the U.S. Office of Management and Budget as of the date of this Agreement (the “Restricted Area”). Notwithstanding any provision hereof to the contrary, this Section 8.4 does not restrict the Executive’s right to (i) own securities of any Competitive Business that files periodic reports with the Securities and Exchange Commission under Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended; provided that his total ownership constitutes less than two percent (2%) of the outstanding securities of such company; or (ii) to own passive investments in securities of any Competitive Business that does not file periodic reports with the Securities and Exchange Commission under Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended; provided that his total ownership constitutes less than five percent (5%) of the outstanding securities of such company.

 

8.5                               Non-Interference. The Executive hereby covenants and agrees that during the Restricted Period, he will not, directly or indirectly, for himself or any other Person (whether as a proprietor, owner, agent, officer, director, shareholder, organizer, partner, principal, member, manager, employee, contractor, consultant or any other capacity):

 

(a)                                 induce or attempt to induce any customer, supplier, officer, director, employee, contractor, consultant, agent or representative of, or any other Person that has a business relationship with any

 

8

 

Bank Entity, to discontinue, terminate or reduce the extent of its, his or her relationship with any Bank Entity or to take any action that would disrupt or otherwise be disadvantageous to any such relationship;

 

(b)                                 solicit any customer of any of the Bank Entities for the purpose of providing any Competitive Products or Services to such customer (other than any solicitation to the general public that is not disproportionately directed at customers of any Bank Entity); or

 

(c)                                  solicit any person who is then an employee of any of the Bank Entities to commence employment with, become a consultant or independent contractor to or otherwise provide services for the benefit of any other Competitive Business.

 

8.6                               Injunction. In the event of any breach or threatened or attempted breach of any provision of this Article 8 by the Executive, the Bank shall, in addition to and not to the exclusion of any other rights and remedies at law or in equity, be entitled to seek and receive from any court of competent jurisdiction (i) full temporary and permanent injunctive relief enjoining and restraining the Executive and each and every other Person concerned therein from the continuation of such violative acts and (ii) a decree for specific performance of the applicable provisions of this Agreement, without being required to furnish any bond or other security.

 

8.7                               Reasonableness.

 

8.7.1                     The Executive has carefully read and considered the provisions of this Article 8 and, having done so, agrees that the restrictions and agreements set forth in this Article 8 are fair and reasonable and are reasonably required for the protection of the interests of the Bank Entities. The Executive further agrees that the restrictions set forth in this Agreement will not impair or unreasonably restrain his ability to earn a livelihood.

 

8.7.2                     If any court of competent jurisdiction should determine that the duration, geographical area or scope of any provision or restriction set forth in this Article 8 exceeds the maximum duration, geographical area or scope that is reasonable and enforceable under applicable law, the parties agree that said provision shall automatically be modified and shall be deemed to extend only over the maximum duration, geographical area and/or scope as to which such provision or restriction said court determines to be valid and enforceable under applicable law, which determination the parties direct the court to make, and the parties agree to be bound by such modified provision or restriction.

 

9.                                      Compliance with Certain Restrictions.

 

9.1                               Section 409A.

 

9.1.1                     It is the intention of the parties hereto that this Agreement and the payments provided for hereunder shall not be subject to, or shall be in accordance with, Section 409A, and thus avoid the imposition of any tax and interest on the Executive pursuant to Section 409A(a)(1)(B) of the Code, and this Agreement shall be interpreted and construed consistent with this intent.  The Executive acknowledges and agrees that he shall be solely responsible for the payment of any tax, penalty or interest which may be imposed or to which he may become subject as a result of the payment of any amounts under this Agreement.

 

9.1.2                     Any severance payable to the Executive pursuant to this Agreement shall be treated by the parties as exempt from Section 409A to the maximum extent permissible based on the short-term deferral exemption, the separation pay plan exemption and any other available exemption.  To the extent any payments to the Executive under this Agreement upon a termination of employment are deemed to be deferred compensation under Section 409A, all references to such termination of employment shall be deemed to be a reference to a “separation from service” as determined in accordance wi5th Section 409A.  Notwithstanding any provision of this Agreement to the contrary, if the Executive is a “specified employee” as the time of his “separation from service”, any payment of “nonqualified deferred compensation” (in each case as determined pursuant to Section 409A) that is otherwise to be paid to the Executive within six (6) months following  his separation from service, then to the extent that such payment would otherwise be subject to interest and additional tax under Section 409A(a)(1)(B) of the Code after taking into account

 

9

 

all available exemptions from Section 409A, such payment shall be delayed and shall be paid on the first business day of the seventh calendar month following the Executive’s separation from service, or, if earlier, upon the Executive’s death.  Any deferral of payments pursuant to the foregoing sentence shall have no effect on any payments that are scheduled to be paid more than six (6) months after the date of separation from service.

 

9.1.3                     The parties hereto agree that they shall take such actions as may be necessary and permissible under applicable law, regulation and guidance to amend or revise this Agreement in order to ensure that Section 409A(a)(1)(B) does not impose additional tax, penalty or interest on payments made to the Executive pursuant to this Agreement.

 

10.                               Assignability.  The Executive shall have no right to assign this Agreement or any of his rights or obligations hereunder to another party or parties.  The Bank may assign this Agreement to any Person that acquires the Bank or a substantial portion of the operating assets of the Bank.  Upon any such assignment by the Bank, references in this Agreement to the Bank shall automatically be deemed to refer to such assignee instead of, or in addition to, the Bank, as appropriate in the context. For the avoidance of doubt, no such assignment by the Bank shall release the Bank from its obligations to the Executive hereunder unless specifically agreed in writing by the Executive.

 

11.                               Governing Law; Venue.  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia applicable to contracts executed and to be performed therein, without giving effect to the choice of law rules thereof. Any action to enforce any provision of this Agreement may be brought only in the Circuit Court of Fairfax County, Virginia, or in the United States District Court for the Eastern District of Virginia, Alexandria Division.  Accordingly, each party (a) agrees to submit to the jurisdiction of such courts and to accept service of process at its address for notices and in the manner provided in Section 12 for the giving of notices in any such action or proceeding brought in any such court and (b) irrevocably waives any objection to the laying of venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient or inappropriate forum.

 

12.                               Notices.  All notices, requests, demands and other communications required to be given or permitted to be given under this Agreement shall be in writing and shall be conclusively deemed to have been given  as follows: (a) when hand delivered to the other party; (b) when received by facsimile at the facsimile number set forth below, or (c) when received by email at the email address set forth below, provided, however, that any notice given by facsimile or email shall not be effective unless either (i) a duplicate copy of such facsimile or email notice is promptly given by depositing the same in a United States post office first-class postage prepaid and addressed to the applicable party as set forth below or (ii) the receiving party delivers a written (nonautomatic) confirmation of receipt for such notice either by facsimile, email or by any other method permitted under this Section; or (d) when deposited in a United States post office with first-class certified mail, return receipt requested, postage prepaid and addressed to the applicable party as set forth below; or (e) when deposited with a national overnight delivery service, postage prepaid, addressed to the applicable party as set forth below with next-business-day delivery guaranteed; provided that the sending party receives a confirmation of delivery from the delivery service provider. Any notice given by facsimile or email shall be deemed received on the date on which notice is received except that if such notice is received after 5:00 p.m. (recipient’s time) or on a non-business day, notice shall be deemed given the next business day).  Any notice sent by United States mail shall be deemed given three (3) business days after the same has been deposited in the United States mail.  Any notice given by national overnight delivery service shall be deemed given on the first business day following deposit with such delivery service.  For purposes of this Agreement, the term “business day” shall mean any day other than a Saturday, Sunday or day that is a legal holiday in Fairfax County, Virginia.  The address of a party set forth below may be changed by that party by written notice to the other from time to time pursuant to this Article.

 

To:                             Executive

Gilbert F. Kennedy, III

1801 Wildflower Court

Bel Air, Maryland 21015

Fax No.:

Email:

 

10

 

To:                             FVCbank

Attention: David W. Pijor

11325 Random Hills Road

Fairfax, VA  22030

Fax No.:

Email: dpijor@fvcbank.com

 

13.                               Entire Agreement.  This Agreement contains all of the agreements and understandings between the parties hereto with respect to the employment of the Executive by the Bank, and supersedes all prior agreements, arrangements and understandings related to the subject matter hereof. No oral agreements or written correspondence shall be held to affect the provisions hereof. No representation, promise, inducement or statement of intention has been made by either party that is not set forth in this Agreement, and neither party shall be bound by or liable for any alleged representation, promise, inducement or statement of intention not so set forth.

 

14.                               Headings.  The Article and Section headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

 

15.                               Severability.  Should any part of this Agreement for any reason be declared or held illegal, invalid or unenforceable, such determination shall not affect the legality, validity or enforceability of any remaining portion or provision of this Agreement, which remaining portions and provisions shall remain in force and effect as if this Agreement has been executed with the illegal, invalid or unenforceable portion thereof eliminated.

 

16.                               Amendment; Waiver.  Neither this Agreement nor any provision hereof may be amended, modified, changed, waived, discharged or terminated except by an instrument in writing signed by the party against which enforcement of the amendment, modification, change, waiver, discharge or termination is sought. The failure of either party at any time or times to require performance of any provision hereof shall not in any manner affect the right at a later time to enforce the same. No waiver by either party of the breach of any term, provision or covenant contained in this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such breach, or a waiver of the breach of any other term, provision or covenant contained in this Agreement.

 

17.                               Gender and Number.  As used in this Agreement, the masculine, feminine and neuter gender, and the singular or plural number, shall each be deemed to include the other or others whenever the context so indicates.

 

18.                               Binding Effect.  This Agreement is and shall be binding upon, and inures to the benefit of, the Bank, its successors and assigns, and the Executive and his heirs, executors, administrators, and personal and legal representatives.

 

19.                               Termination of Colombo Agreement.  As of the Effective Date, the Colombo Agreement shall be terminated and of no further force or effect in return for the payment provided by Section 5.2(a) hereof and the effectiveness of this Agreement.

 

[Signatures on following page]

 

11

 

IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the date first written above.

 

	
 
    	
FVCBANK
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ David W. Pijor
    
	
 
    	
Name: David W. Pijor
    
	
 
    	
Title: Chief Executive   Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EXECUTIVE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Gilbert F. Kennedy, III
    
	
 
    	
Gilbert F.   Kennedy, III
    

 

12

 

Attachment A

 

Form of

General Release and Waiver of All Claims

 

Gilbert F. Kennedy, III (“you”) executes this General Release and Waiver of All Claims (the “Release”) as a condition of receiving certain payments and other benefits in accordance with the terms of Section 7.7 of your Employment Agreement dated May 3, 2018.  All capitalized terms used but not otherwise defined herein shall have the same meaning as in your Employment Agreement.

 

1.                    RELEASE.

 

You hereby release and forever discharge FVCbank [modify to specifically include any Affiliates] and each and every one of their former or current subsidiaries, parents, affiliates, directors, officers, employees, agents,  successors, predecessors, subsidiaries, assigns and attorneys (the “Released Parties”) from any and all charges, claims, damages, injury and actions, in law or equity, which you or your heirs, successors, executors, or other representatives ever had, now have, or may in the future have by reason of any act, omission, matter, cause or thing through the date of your execution of this Release. You understand that this Release is a general release of all claims you may have against the Released Parties based on any act, omission, matter, case or thing through the date of your execution of this Release, except as set forth in Section 3 below.

 

2.                    WAIVER.

 

You realize there are many laws and regulations governing the employment relationship. These include, but are not limited to, Title VII of the Civil Rights Acts of 1964 and 1991; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act of 1990, the Americans with Disabilities Act; the National Labor Relations Act; 42 U.S.C. § 1981; the Family and Medical Leave Act; the Civil Rights Act of 1991; the Employee Retirement Income Security Act of 1974 (other than any accrued benefit(s) to which you have a non-forfeitable right under any pension benefit plan); and any other state, local and federal employment, human rights and civil rights laws; and any amendments to any of the foregoing. You also understand there may be other statutes and laws of contract and tort that also relate to your employment. By signing this Release, you waive and release any rights you may have against the Released Parties under these and any other laws based on any act, omission, matter, cause or thing through the date of your execution of this Release, except as set forth in section 3 below. You also agree not to initiate, join, or voluntarily participate in any action or suit in any court or to accept any damages or other relief from any such proceeding brought by anyone else based on any act, omission, matter, cause or thing through the date of your execution of this Release.

 

3.                    CLAIMS RESERVED.

 

Notwithstanding any provision of this General Release and Waiver of All Claims to the contrary, nothing contained herein shall be deemed to modify, waive, release, terminate or amend any of the following: (a) any right that you may possess under any tax-qualified retirement plan sponsored by any of the Bank Entities (or any of their predecessors or successors) that is or becomes vested or payable, (b) any right or payment arising under the terms of your Employment Agreement or any breach thereof, (c) any right to indemnification or contribution, whether arising under insurance, applicable law, the terms of the Agreement and Plan of Merger dated as of May 3, 2018 by and among the Company, the Bank and Colombo (the “Merger Agreement”), or the organizational documents of any of the Bank Entities (or any of their predecessors or successors), (d) any right to elect and receive continuation coverage under Section 4980B of the Code or similar benefit, (e)  any right that cannot be waived as a matter of law, and (f) any rights that you may have as a stockholder, depositor, borrower or customer of any of the Bank Entities (or any of their predecessors or successors).

 

13

 

4.                    NOTICE PERIOD.

 

This document is important. We advise you to review it carefully and consult an attorney before signing it, as well as any other professional whose advice you value, such as an accountant or financial advisor. If you agree to the terms of this Release, sign in the space indicated below for your signature. You will have twenty-one (21) calendar days from the date you receive this document to consider whether to sign this Release. If you choose to sign the Release before the end of that twenty-one day period, you certify that you did so voluntarily for your own benefit and not because of any coercion.

 

5.                    RETURN OF PROPERTY.

 

You certify that you have fully complied with Section 8.3 of your Employment Agreement.

 

6.                    REVOCATION.

 

You should also understand that even after you have signed this Release, you still have seven (7) days to revoke it. To revoke your acceptance of this Release, the Chairman of the Bank’s Board of Directors (or in the event that you are the Chairman of the Board of Directors, the Chairman of the Compensation Committee or comparable committee of the Board of Directors) must receive written notice before the end of the seven (7)-day period. In the event you revoke or do not accept this Release, you will not be entitled to any of the payments or benefits that you would have been entitled to under your Employment Agreement by virtue of executing this Release. If you do not revoke this Release within seven (7) days after you sign it, it will be final, binding, and irrevocable.

 

IN WITNESS WHEREOF, the Parties have knowingly and voluntarily executed this Release, as of the day and year set forth below opposite your signature.

 

	
 
    	
 
    	
 
    
	
Gilbert   F. Kennedy, III
    	
 
    	
Date
    
	
 
    	
 
    	
 
    
	
FVCBANK
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
Date
    
	
Title:
    	
 
    	
 
    
				

 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00286-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00286-of-00352.parquet"}]]