Document:

Exhibit
10.3

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

 

                THIS EMPLOYMENT AGREEMENT (the “Agreement”)
is between Bank Rhode Island, a financial institution organized under the laws
of the State of Rhode Island with its executive offices located at One Turks
Head Place, Providence, Rhode Island 02903 (the “Bank”), Bancorp Rhode Island,
Inc., a corporation organized under the laws of the State of Rhode Island (the “Company”),
and Jeffrey W. Angus of 1 Hines Farm Drive, Cumberland, Rhode Island 02864 (the
“Executive”).

 

                IT
IS MUTUALLY AGREED by the parties as follows:

 

                1.             Employment;
Duties

 

                1.1           Responsibilities
and Authority.  (a)  The Bank hereby employs Executive to serve as Executive Vice President and Chief
Operating Officer of the Bank, and
Executive hereby accepts such employment.  Executive shall have the duties,
responsibilities, authorities and powers normally incident to such office.  At all times, however, Executive’s activities
and authority with respect to such offices will be subject to supervision, control
and direction by the Board of Directors of the Bank (the “Board”), by the
Executive Committee of the Board, and by the President and Chief Executive
Officer of the Bank (the “Chief Executive Officer”) and Executive agrees to
carry out such duties and responsibilities as any of them may from time to time
reasonably assign to him.  Executive
shall report from time to time or routinely, upon request, to the Chief
Executive Officer or her designee as to the current status of any of Executive’s
assigned duties and responsibilities.

 

                (b)           The Company hereby employs Executive to serve as Vice President of the
Company and such other offices and positions as the Company may determine, and
Executive hereby accepts such employment.  Executive shall have the duties,
responsibilities, authorities and powers normally incident to such
offices.  At all times, however,
Executive’s activities and authority with respect to such offices will be
subject to supervision, control and direction by the Board of Directors of the
Company (the “Company Board”) or by the Executive Committee of the Company
Board, and Executive hereby agrees to carry out such duties and
responsibilities as either of them may from time to time reasonably assign to
Executive.  Executive shall report from time
to time or routinely, upon request, to the Company Board as to the current
status of any of Executive’s assigned duties and responsibilities.

 

                1.2           Compensation.
 The Bank shall pay Executive a base salary at
the rate of Two Hundred Eighteen Thousand and 00/100 Dollars ($218,000.00) per
year commencing on the date hereof payable on a bi-weekly basis, or at such
higher rate as shall be determined from time to time by the Board.  In addition to Executive’s base salary,
Executive will also be entitled to a Twenty-Five Thousand and 00/100 Dollar ($25,000)
signing bonus to be paid in the first full payroll following Executive’s date
of hire and Executive shall be entitled to receive payments under any incentive
compensation or bonus program (as in effect from time to time), which the

 

Bank may establish for its employees and/or senior
executives, in such amounts as are provided by such programs.

 

                1.3           Employee
Benefits.  As a full-time employee of the Bank,
Executive shall be eligible to participate in any and all employee benefit
plans generally available to full-time employees of the Bank, including
non-contributory plans and, at Executive’s option, contributory plans.

 

                1.4           Certain Specified Employee Benefits.

 

(a)           Grant of Stock Options. 
Executive shall receive stock options to purchase shares of the Company’s
common stock in such number, at an exercise price and on such other terms as
may be approved by the Compensation Committee of the Company Board, in its sole
discretion.  Any such options will become
exercisable on a schedule no less favorable than the following:  25% on the grant date and an additional 25%
on each of the first through third anniversaries of the grant date, with such
vesting to accelerate on a Change in Control (as defined in Section 3.2).

 

                (b)           Supplemental Executive Retirement
Plan.  Subject to Executive’s
insurability, Executive shall be entitled to receive an annual benefit of Fifty
Thousand and 00/100 Dollars ($50,000) under the Bank’s Supplemental Executive
Retirement Plan which benefit will vest at the rate of 20% per year commencing
on the fifth anniversary of the Commencement Date (as defined in Section 1.9
hereof).

 

                1.5           Vacation.  Executive shall be entitled to five weeks of
vacation during each year of employment (with vacation to be prorated for 2005
based on the Commencement Date ), such vacation to be taken in accordance with
the Bank’s customary vacation policies and at such times and intervals as are
mutually agreed upon by Executive and the Bank. 
Executive shall be entitled to holiday time and sick leave in accordance
with the then existing policies of the Bank, as in effect from time to time.

 

                1.6           Reimbursement
of Expenses.  (a)  Executive shall be reimbursed by the Bank for
reasonable business expenses incurred by him incident to his employment upon
presentation of appropriate vouchers, receipts, and other supporting documents
required by the Bank.

 

                (b)           Executive
shall be reimbursed by the Company for reasonable business expenses incurred by
him incident to his employment by the Company upon presentation of appropriate
vouchers, receipts, and other supporting documents required by the Company.

 

                1.7           Duty
to Perform Services.  So long
as Executive is employed by the Company and the Bank, Executive agrees to
devote his full business and productive time, skill, and energy diligently,
loyally, effectively, and to the best of his ability to the rendering of
service to the Company and the Bank, and will exert his best efforts in the
rendering of such services. This provision will not prohibit Executive from:

 

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                                (a)           making passive investments or serving
as a fiduciary with respect to direct family investments;

 

                                (b)           serving on the board of directors of
any company, provided that Executive shall not
render any material services with respect to the operations or affairs of any
such company and provided further that serving on
such board of directors does not otherwise violate the terms of this Agreement,
including, but not limited to, the provisions of Section 4.2 herein; or

 

                                (c)           engaging in religious, charitable or
other community or non-profit activities which do not impair Executive’s
ability to fulfill his duties and responsibilities to the Company and Bank.

 

Executive agrees that in the rendering of all services
to the Company and the Bank and in all aspects of his employment, in connection
with his duties as Executive Vice President and Chief Lending Officer, he will
comply with all directives, policies, standards, and regulations from time to
time established by the Company or the Bank or by applicable law.

 

                1.8           Death
or Disability.

 

(a)           Death.  In the event of Executive’s death during the
term of his employment under this Agreement, the Bank shall immediately pay to
Executive’s designated beneficiary any salary accrued but unpaid as of the date
of death.  Upon payment of the
aforementioned sums, the Bank’s obligations to make further salary payments
shall terminate.  This provision shall
not be construed to negate any rights Executive may have to death benefits
under any employee benefit or welfare plan of the Company or Bank in which he
may from time to time be a participant or under any other written agreement
with the Company or Bank which specifically provides for such benefits.

 

                                (b)           Disability.  In the event of Executive’s “disability”
(as defined below) during the term of his employment under this Agreement, the
Bank shall continue to pay Executive his base salary (reduced by any benefits
Executive is entitled to receive under any state or federal disability
insurance program, such as Rhode Island temporary disability insurance or
federal social security) for a period of six months from the date of “disability”.  For purposes of this Agreement, “disability”
shall mean a good faith determination by the Board that Executive is unable for
any reason, either physical or mental, to perform the duties required of him
hereunder.

 

                1.9           Term
of Employment.  The term of
Executive’s employment under this Agreement shall commence on the date hereof
(the “Commencement Date”) and shall continue, unless sooner terminated pursuant
to the provisions of this Agreement, for a period of two years (the “Term”),
which Term shall automatically renew on each successive one year anniversary
hereafter commencing with the first anniversary hereof unless any party shall
have given written notice to the other parties of such party’s election not to
extend the Term within ninety (90) calendar days prior to any anniversary date.  

 

 

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                1.10         Termination.  This Agreement
and the rights of the parties hereunder will terminate (subject to the
provisions of Section 1.11 below) upon the occurrence of one of the following:

 

                                (a)           Upon the Executive’s death or
disability as provided in Section 1.8 above;

 

                                (b)           For Cause as provided in Section 3.5,
immediately upon the giving of notice by the Company or the Bank or at such
later time as such notice may specify or as may be required by Section 3.5;

 

                                (c)           At the election of the Executive for
Good Reason (as hereinafter defined) as provided in Section 2.2; or

 

                                (d)
          Upon expiration of the Term,
following notice by any party not to renew the Term as provided in Section 1.9.

 

                1.11         Termination and Survival.  The provisions of Section 1.8, Sections 2 and
3 and Sections 4.1, 4.2, 4.4, 4.6, 4.8, 4.9 and 4.10 hereof shall remain in
full force and effect and shall continue to be enforceable in accordance with
their terms beyond termination of employment and beyond expiration of this
Agreement, except as otherwise agreed in writing by Executive and the Company
and the Bank.

 

                2.             Severance.

 

                2.1           Severance Benefit.  In the event of a termination of
Executive’s employment by the Company or the Bank without Cause (as such term
is defined in Section 3.5) at any time, or in the event of termination of
Executive’s employment by him for Good Reason (as defined in Section 2.2), the
Bank will (a) continue to pay Executive his base salary (the “Severance Benefit”)
then in effect for a nine (9) month period commencing on the date of
termination (the “Severance Period”), and (b) provide Executive with the
medical and life insurance coverage generally available to full-time employees
during the Severance Period or as required by law, whichever is longer.  Notwithstanding anything herein to the
contrary, the Bank shall have no obligation to pay the Severance Benefit to
Executive in the event his employment is terminated with Cause by the Company
or the Bank or voluntarily by him without Good Reason.  Any Severance Benefit paid under this Section
2.1 shall be credited against any amounts due Executive under Section 3 as a
result of a Change in Control.

 

                2.2           “Good
Reason” Defined.  For purposes of
this Agreement “Good Reason” shall mean the Company or the Bank giving written
notice of its election not to renew this Agreement on any anniversary date as
permitted under Section 1.9 and its failure
to offer and enter into a new employment agreement with Executive on terms
which are substantially similar to those of his employment existing immediately
prior to such notice of non-renewal (other than a reduction of fringe benefits
required by law or applicable to all employees generally) provided,
however, that Good Reason shall not be deemed to have occurred
unless prior to Executive’s termination of employment for Good Reason, he shall
give not less than 30 days written notice to the

 

 

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Company and the Bank of his intent to
terminate for Good Reason stating the basis of the Good Reason sufficient to
permit the Company and the Bank to alleviate the basis of such Good Reason
prior to termination, and the Company and the Bank have not done so within such
30 day period, and further provided, that
Executive’s continuing to work following notice of non-renewal by the Company
or the Bank and in the absence of entering into a new employment agreement  shall be without prejudice to his right to
claim termination for Good Reason, absent written agreement between Executive
and the Bank or the Company to the contrary.

 

                3.             Change
in Control.

 

                3.1           Purpose.  In
order to allow Executive to consider the prospect of a Change in Control (as
defined in Section 3.2) in an
objective manner and in consideration of the services rendered and to be
rendered by him to the Company and the Bank, the Bank is willing to provide,
subject to the terms of this Agreement, certain severance benefits to protect
Executive from the consequences of a Terminating Event (as defined in Section
3.4) occurring subsequent to a Change in Control.

 

                3.2           Change
in Control. 
A “Change in Control”
will be deemed to have occurred if: (i) a Takeover
Transaction is effectuated; or (ii) the Company
commences substantive negotiations with a third party with respect to a
Takeover Transaction if within
twelve (12) months of the commencement of
such negotiations, enters into a definitive agreement with respect to a
Takeover Transaction with any party with which negotiations were originally
commenced; or (iii) any election
of directors of the Company occurs (whether by the directors then in office or
by the shareholders at a meeting or by written consent) where a majority of the
directors in office following such election are individuals who were not nominated
by a vote of two-thirds of the members of the board of directors immediately
preceding such election; or (iv) the Company or the Bank effectuates a complete
liquidation.

 

                3.3           Takeover
Transaction. 
A “Takeover Transaction”
shall mean:

 

(a)           The acquisition of voting securities of
the Company by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)), other than by the Company or its subsidiaries or any employee benefit
plan (or related trust) of the Company or its subsidiaries, which theretofore
did not beneficially own (within the meaning of Rule 13d-3 promulgated under
the Exchange Act), securities representing 30% or more of the voting power of
all outstanding shares of voting securities of the Company, if such acquisition
results in such individual, entity or group owning securities representing more
than 30% of the voting power of all outstanding voting securities of the
Company; provided, that any acquisition by a corporation with respect to which,
following such acquisition, more than 50% of the then outstanding shares of
voting securities of such corporation, is then beneficially owned, directly or
indirectly, by all or substantially all of the individuals and entities who
were the beneficial owners of the voting securities of the Company outstanding
immediately prior to such acquisition in substantially the same proportion as
their ownership, immediately prior to such acquisition, of the outstanding
voting securities of the Company, shall not constitute a Change in Control; or

 

 

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(b)           The issuance of additional shares of
common stock of the Company or the Bank, as applicable, in a single transaction
or a series of related transactions if the individuals and entities who were
the beneficial owners of the outstanding voting securities of the Company or
the Bank, as applicable, immediately prior to such issuance do not, following
such issuance, beneficially own, directly or indirectly, securities
representing more than 50% of the voting power of all then outstanding voting
securities of the Company or the Bank, as applicable; or

 

(c)           Consummation by the Company or the Bank
of (i) a reorganization, merger or consolidation, in each case, with respect to
which all or substantially all of the individuals and entities who were the
beneficial owners of the voting securities of the Company immediately prior to
such reorganization, merger or consolidation do not, following such
reorganization, merger or consolidation, beneficially own, directly or
indirectly, securities representing more than 50% of the voting power of the
outstanding voting securities of the corporation resulting from such a
reorganization, merger or consolidation, or (ii) the sale, exchange or other
disposition (in one transaction or a series of related transactions) of all or
substantially all of the assets of the Company (on a consolidated basis) or the
Bank to a party which is not controlled by or under common control with such
entity, or (iii) the sale by the Company on one transaction or in a series of
related transactions of voting securities of the Bank such that following such
transaction or transactions the Company no longer beneficially owns, directly
or indirectly, securities representing more than 50% of the voting power of the
then outstanding voting securities of the Bank.

 

                For
purposes of this Section 3.3, “voting power” means ordinary voting power for
the election of directors.

 

                3.4           Terminating Event.  A
“Terminating Event” means either:

 

                                (a)           Termination
by the Company or the Bank of Executive’s employment for any reason other than
(i) Executive’s death or disability or (ii) for “Cause” (as such term is
defined in Section 3.5 hereof), or

 

                                (b)           Executive’s resignation as an
employee of the Company or the Bank, other than for reasons of disability,
following (i) a significant reduction in the nature or scope of Executive’s
duties, responsibilities, authority and powers from the duties,
responsibilities, authority and powers exercised by him immediately prior to
the Change in Control or (ii) a greater than 10% reduction in Executive’s
annual base salary or fringe benefits as in effect on the date of the Change in
Control; or (iii) any requirement by the Company or the Bank or of any Person
(as defined in Section 4.2 hereof) in control of the Company or the Bank that
the location at which Executive performs the principal duties of the Bank or
the Company be outside a radius of 50 miles from the location at which he
performed such duties immediately prior to the Change in Control; or (iv) the
failure of any successor of the Company or the Bank to agree in writing upon
terms and conditions of employment with Executive pursuant to which he shall
serve in a position no less senior than Chief Operating Officer responsible for
operations and whereby he

 

 

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shall report directly to the chief executive officer
of such successor entity and which are reasonably satisfactory to Executive
within ninety (90) days following a Change in Control.

 

                3.5           Termination
for “Cause” Defined.  For
purposes of this Agreement, termination for Cause shall include termination by
reason of any of the following:

 

(a)           Continuing any arrangement, holding
any position or engaging in any activities that conflict with the interest of,
or that interfere with Executive’s duties owed to, the Company or Bank, after
ten (10) days prior written notice by the Company or the Bank, as applicable,
to him of the same;

 

(b)           Conviction of embezzlement or other
crimes against the Company or the Bank, deliberate misappropriation of the
Company’s or Bank’s funds or dishonesty;

 

(c)           Material violation of written
policies of the Company or the Bank, irresponsible acts in the performance of
Executive’s duties or material breach of any of his obligations under the terms
of this Agreement;

 

(d)           Material non-performance of Executive’s
duties or material acts (or omissions) of mismanagement; and

 

(e)           Refusal to perform assigned duties
when such refusal is not justified or excused either by the terms of this
Agreement or by actions taken by the Company or the Bank in violation of this
Agreement.

 

                3.6           Payment
in Connection With Terminating Event.  If a Terminating Event occurs within one (1)
year after a Change in Control (which one year period shall be calculated from
the effective date of the Takeover Transaction if the Terminating Event occurs
after a Takeover Transaction), the Bank will pay to Executive an amount (the “Severance
Payment”) equal to two times the sum of (a) Executive’s annual base salary in
effect at the time of the Change in Control, and (b) an amount equal to the
largest annual cash bonus paid to Executive with respect to the two full fiscal
years immediately preceding the Change in Control, which Severance Payment
shall be payable in one lump sum within 30 days of the date of termination of
Executive’s employment, or if such Change in Control is governed by clause (ii)
of Section 3.2 and the Terminating Event occurs prior to entering into a
definitive agreement, upon the entering into of a definitive agreement by the
Company.  In addition, the Bank shall
continue to pay for all medical and life insurance coverage provided on the date
of the Terminating Event for the twenty-four month period commencing on the
effective date of the Terminating Event. 
No Severance Payment will be made to Executive under Section 3 if his
employment with the Bank terminates for any reason prior to a Change in Control
(except as may be provided below), or if his employment with the Company
terminates after a Change in Control but such termination or resignation is not
a Terminating Event.  In addition, except
as provided in Section 2, no Severance Payment will be made to Executive under
Section 3.6 of this Agreement with respect to a Terminating Event which occurs
more than one year after a Change in Control (which one

 

 

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year
period shall be calculated from the effective date of the Takeover Transaction
if the Terminating Event occurs after a Takeover Transaction).

 

                3.7           Applicability of Change in Control
Provisions.  The provisions of
Section 3 shall terminate upon the earliest of
(i) the termination by the Company or the Bank of Executive’s employment for
any reason prior to a Change in Control, (ii) the termination of Executive’s
employment by the Company or the Bank after a Change in Control because of
death or disability or for Cause, (iii) Executive’s resignation or termination
of employment with the Company or the Bank for any reason other than Good
Reason prior to a Change in Control, and (iv) Executive’s resignation or
termination of employment after a Change in Control on or after the first
anniversary of the Takeover Transaction or events specified in Sections
3.2(iii) or (iv).

 

                3.8           Limitation on Benefits.  (a) It is the
intention of the parties that no payments by the Company or the Bank to
Executive or for Executive’s benefit under this Agreement or any other
agreement or plan pursuant to which Executive is entitled to receive payments
or benefits shall be non-deductible to the Company or the Bank by reason of the
operation of Section 280G of the
Internal Revenue Code of 1986, as amended
(the “Code”), relating to parachute payments. 
Accordingly, and notwithstanding any other provision of this Agreement
or any such agreement or plan, if by reason of the operation of said Section
280G, any such payments exceed the amount
which can be deducted by the Company and the Bank, such payments shall be
reduced to the maximum amount which can be deducted by the Company and the
Bank.  To the extent that payments
exceeding such maximum deductible amount have been made to Executive or
Executive’s beneficiary, Executive or Executive’s beneficiary shall refund such
excess payments to the Company or the Bank, as the case may be, with interest
thereon at the Applicable Federal Rate determined under Section 1274(d) of the Code, compounded annually, or at such other rate as
may be required in order that no such payments shall be non-deductible to the
Company or the Bank by reason of the operation of said Section 280G.  To the extent that there is more than one
method of reducing the payments to bring them within the limitations of said
Section 280G, Executive shall determine which
method shall be followed, provided that if
Executive fails to make such determination within forty-five (45) days after
the Company has sent Executive written notice of the need for such reduction,
the Company may determine the method of such reduction in its sole discretion.

 

                (b)           If any dispute between the Company
and Executive as to any of the amounts to be determined under Section 3.8(a),
or the method of calculating such amounts, cannot be resolved by Executive and
the Company, either the Company or Executive after giving three (3) days written notice to the other, may refer the dispute to
a partner in the Boston, Massachusetts office of a firm of independent
certified public accountants selected jointly by Executive and the
Company.  The determination of such
partner as to the amount to be determined under Section 3.8(a) and the method
of calculating such amounts shall be final and binding on Executive, the
Company and the Bank.  The Company shall
bear the costs of any such determination.

 

                4.             Miscellaneous.

 

                4.1           Confidential Information.  Unless Executive first secures the Company’s
consent, he shall not disclose or use, at any time either during or subsequent
to his employment by the

 

 

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Company or the Bank,
except as required by his duties to the Company or Bank, any secret or
confidential information of the Company or Bank of which Executive becomes
informed during his employment, whether or not developed by him.  The term “confidential information” includes,
without limitation, financial information, business plans, prospects, and
opportunities (such as lending relationships, financial product developments,
or possible acquisitions or dispositions of business or facilities) which have
been discussed or considered by the Company’s or Bank’s management, but does
not include any information which has become part of the public domain by means
other than Executive’s non-observance of his obligations hereunder.

 

                4.2           Non-Competition.  During Executive’s employment by the
Company and the Bank hereunder, and during a period of one (1) year following
the date of termination of his employment with the Company or the Bank for any
reason, Executive will not, directly or indirectly, whether as partner,
consultant, agent, employee, co-venturer, greater than 2% owner, or otherwise,
or through any Person (as hereafter defined),

 

                                (a)           attempt to recruit any employee of
the Company or Bank, assist in such hiring by any other Person, or encourage
any such employee to terminate his or her relationship with the Company or
Bank, or

 

                                (b)           encourage any customer of the Company
or Bank to conduct with any other Person any business or activity which such
customer conducts or could conduct with the Company or Bank.

 

For purposes of this Section 4.2, the term “Person”
shall mean an individual, a corporation, an association, a partnership, an
estate, a trust and any other entity or organization.

 

                4.3           No
Conflicting Obligations.  The
Company and the Bank, in entering into this Agreement, understand, and
Executive hereby represents, that he is not under any obligation to any former
employer or any person, firm or corporation that would prevent, limit or
impair, in any way, the performance by Executive of his duties as an employee
of the Company or the Bank.

 

                4.4           Ethical
Behavior.  Upon termination by
the Company or the Bank of Executive’s employment for any reason, Executive
shall act at all times in an ethical manner with regard to the Bank and the
Company, and during the one-year period following the date of such termination,
shall take no action which directly or indirectly could reasonably be expected
to have the effect of terminating or otherwise adversely affecting the
relationship of the Company or the Bank with any employee of, or others with
business or advantageous relationships with, the Company or any of its
affiliates, including the Bank.

 

                4.5           Withholding.  All payments made by the Company or the Bank
under this Agreement will be net of any tax or other amounts required to be
withheld by the Company or the Bank under applicable law.

 

 

9

 

                4.6           Legal
Fees.  Upon
submission of appropriate statements or documentation, the  Company and the Bank jointly and severally
agree to reimburse Executive for reasonable legal fees actually incurred by him
in connection with the enforcement of the terms of this Agreement following a
Change in Control, provided,  however, that neither the Company nor the Bank shall not be
obligated to reimburse Executive for any legal fees or expenses incurred by him
in connection with the Company’s or the Bank’s enforcement of the terms of this
Agreement or in connection with any arbitration or litigation in which the
Company or the Bank is the prevailing party.

 

                4.7           Binding
Effect.  This Agreement is
binding upon and will inure to the benefit of the parties hereto and their
respective heirs, administrators, executors, successors and assigns.  The Company and the Bank will require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company or the Bank, as the case may be, to assume expressly and perform this
Agreement.  Failure of the Company or the
Bank, as applicable, to obtain such assumption and agreement prior to the
effectiveness of any such succession shall be a breach of this Agreement and
shall entitle Executive to compensation from the Bank in the same amount and on
the same terms as he would be entitled to hereunder following a Terminating
Event, except that for purposes of implementing the foregoing, the date on
which any such succession becomes effective shall be deemed the date on which Executive
becomes entitled to such compensation from the Bank.  As used in this Agreement, “Bank” shall mean
the Bank, as hereinbefore defined and any successor to its business and/or
assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

 

                4.8           Arbitration
of Disputes.  Any dispute,
controversy or claim arising out of or relating to this Agreement or the breach
or performance hereof will be settled by arbitration in accordance with the
laws of the State of Rhode Island by an arbitrator mutually agreed upon by
Executive and the Company and/or the Bank. 
If an arbitrator cannot be agreed upon, Executive shall choose an
arbitrator and the Company and/or the Bank shall choose an arbitrator, and
these two together shall select a third arbitrator.  If the first two arbitrators cannot agree on
the appointment of a third arbitrator, then the third arbitrator will be
appointed by the American Arbitration Association in Providence, Rhode
Island.  Such arbitration will be
conducted in the City of Providence in accordance with the Commercial
Arbitration Rules of the American Arbitration Association, except with respect
to the selection of arbitrators which shall be as provided in this Section 4.8.  Judgment upon the award rendered by the
arbitrators may be entered in any court having jurisdiction thereof.

 

                4.9           Indemnification.  The Company and the Bank each hereby
covenants and agrees to indemnify Executive and hold him harmless fully,
completely, and absolutely against and in respect to any and all actions,
suits, proceedings, claims, demands, judgments, costs, expenses (including
attorney’s fees), losses, and damages resulting from his good faith performance
of his duties and obligations under the terms of this Agreement.

 

                4.10         Guaranty.  The Company hereby guarantees the due and
punctual performance in full by the Bank of its covenants, agreements and
obligations contained herein.

 

 

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                IN
WITNESS WHEREOF, the parties have executed this Agreement on the 24th
day of February, 2006

 

 

	
   

  	
   

  	
  BANCORP RHODE ISLAND,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Merrill W. Sherman

  	
   

  
	
   

  	
   

  	
  Merrill W. Sherman

  
	
   

  	
   

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK RHODE ISLAND

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Merrill W. Sherman

  	
   

  
	
   

  	
   

  	
  Merrill W. Sherman

  
	
   

  	
   

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Jeffrey W. Angus

  	
   

  
	
   

  	
   

  	
  Jeffrey
  W. Angus

  

 

 

 

 

 

11Exhibit 10.4(a)

 

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

 

 

                THIS FIRST AMENDMENT TO
EMPLOYMENT AGREEMENT (the “Agreement”) is between Bank Rhode Island, a
financial institution organized under the laws of the State of Rhode Island
with its executive offices located at One Turks Head Place, Providence, Rhode
Island 02903 (the “Bank”), Bancorp Rhode Island, Inc., a corporation organized
under the laws of the State of Rhode Island and sole shareholder of the Bank
(the “Company”) and James V. DeRentis of 48 Laurel Avenue, Providence, Rhode
Island  02906 (the “Executive”).

 

                WHEREAS, the Bank, the Company
and the Executive are parties to that certain Employment Agreement dated
December 18, 2000 whereby the Bank employed the Executive to serve as Senior
Vice President of Retail Banking of the Bank (the “Employment Agreement”);

 

                WHEREAS, effective September 30,
2005, the Executive was promoted to the position of Chief Business Officer of
the Bank; and

 

                WHEREAS, in connection with the
aforesaid promotion, the Bank, the Company and the Executive seek to amend the
Employment Agreement as set forth herein.

 

                IT
IS MUTUALLY AGREED by the parties as follows:

 

1.                                       Section 1.1 of
the Employment Agreement is hereby amended and restated as follows:

 

                “1.1         Responsibilities
and Authority.  The Bank hereby
employs Executive to serve as Chief Business Officer of the Bank, and Executive hereby accepts such
employment.  Executive shall have the duties,
responsibilities, authorities and powers normally incident to such office.  At all times, however, Executive’s activities
and authority will be subject to supervision, control and direction by the
Board of Directors of the Bank (the “Board”), by the Executive Committee of the
Board, and by the President and Chief Executive Officer of the Bank (the “Chief
Executive Officer”) and Executive agrees to carry out such duties and
responsibilities as any of them may from time to time reasonably assign to Executive.  Executive shall report from time to time or
routinely, upon request, to the Chief Executive Officer or the Chief Executive
Officer’s designee as to the current status of any of Executive’s assigned
duties and responsibilities.”

 

2.                                       Section 1.2 of
the Employment Agreement is hereby amended and restated as follows:

 

                “1.2         Compensation.

 

(a)           The Bank shall pay Executive a base
salary at the rate of (i) Two Hundred Eighteen Thousand Dollars ($218,000) per
year, commencing on the date hereof, payable on a bi-weekly basis, or at such
higher rate as shall be determined from time to time by the Board.  In addition, Executive shall be entitled to
receive payments under any incentive compensation or bonus program (as in
effect from time to time), which the Bank may establish for its employees
and/or senior executives, in such amounts as are provided by such programs.”

 

 

3.                                       Section 1.5 of
the Employment Agreement is hereby amended and restated as follows:

 

                “1.5         Vacation. 
Executive shall be entitled to five weeks of vacation during each year
of employment.  Such vacation shall be
taken in accordance with the Bank’s customary vacation policies and at such
times and intervals as are mutually agreed upon by Executive and the Bank.  Executive shall be entitled to holiday time
and sick leave in accordance with the then existing policies of the Bank, as in
effect from time to time.”

 

4.             Except
as hereby amended, the Employment Agreement shall be and remain in full force
and effect.

 

[Signatures
Appear on Following Page]

 

 

2

 

                IN
WITNESS WHEREOF, the parties have executed this Agreement as of the 24th
day of February, 2006.

 

 

	
   

  	
   

  	
  BANK
  RHODE ISLAND

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Merrill W. Sherman

  	
   

  
	
   

  	
   

  	
  Merrill
  W. Sherman

  
	
   

  	
   

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANCORP
  RHODE ISLAND, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Merrill W. Sherman

  	
   

  
	
   

  	
   

  	
  Merrill
  W. Sherman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ James V. DeRentis

  	
   

  
	
   

  	
   

  	
  James V. DeRentis

  

 

 

 

 

 

 

 

3

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