Document:

Exhibit

Exhibit 10.6
CDK GLOBAL, INC.
AMENDED AND RESTATED CHANGE IN CONTROL SEVERANCE PLAN
FOR
CORPORATE OFFICERS

The purpose of this Amended and Restated Change in Control Severance Plan for Corporate Officers (the “Plan”) is to enable CDK Global, Inc., a Delaware corporation (the “Company”), to offer a form of income protection to “Participants” (as defined in Section 8.5 below) in the event their employment with the Company terminates under certain circumstances due to a “Change in Control” (as defined in Section 8.2 below).  The Plan was established effective as of September 30, 2014 (the “Prior Plan”) and is hereby amended and restated effective as of September 9, 2015.  The Plan, as amended and restated herein, supersedes in its entirety the Prior Plan. 

ARTICLE I: ELIGIBILITY AND BENEFITS

1.1      Eligibility and Participation.  Each employee who is a corporate officer of the Company on the date of a Change in Control as a result of his election by the Board of Directors of the Company (the “Board”) is eligible to participate in the Plan (a “Participant”).  Notwithstanding the foregoing, if an employee who is not a corporate officer on the date of a Change in Control reasonably demonstrates that, in contemplation of the Change in Control or at the request of a party which subsequently causes a Change in Control, the Company removed him from such office, such employee shall also be a Participant.  Each Participant will receive a participation letter confirming the Participant’s participation in the Plan, in the form attached hereto as Exhibit A.

1.2      Severance Benefits.

(a)    If a Change in Control occurs prior to the date a Participant's employment with the Company terminates, then upon the termination of the Participant's employment by the Company without “Cause” (as defined in Section 8.1 below) or by the Participant for “Good Reason” (as defined in Section 8.4 below), in either case during the two-year period following the Change in Control (individually, a “Qualifying Termination”), subject to Section 1.6 below, such Participant shall be paid a lump sum payment equal to the sum of the following amounts (collectively, the “Severance Benefits”):
        
(i)    Severance Payments.  A payment equal to 200% (or in the case of the Company’s Chief Executive Officer, 250%) of the Participant's “Current Total Annual Compensation” (as defined in Section 8.3 below);

(ii)     Pro Rata Bonus.  A payment equal to a pro-rata portion of the Participant’s target annual cash bonus opportunity for the fiscal year in which the Participant’s Qualifying Termination occurs, determined by multiplying the amount of such target annual cash bonus opportunity by a fraction, the numerator of which is the number of days during the fiscal year of the Qualifying Termination that the Participant is employed by the Company and the denominator of which is 365; and

(iii)    Medical Benefit Payment.  A payment equal to the amount of the  Company’s portion of 12 months’ of medical insurance premiums with respect to the 

Participant at the same rate that the Company paid immediately prior to the Participant’s Qualifying Termination.

(b)    Any Participant entitled to a Severance Benefit (in accordance with Section 1.2(a) above) shall receive his Severance Benefit in the form of a lump-sum payment on the 60th day following the date of his Qualifying Termination.

		
	1.3
	Additional Benefits.  A Participant entitled to receive a Severance Benefit shall also receive the following additional benefits:

(a)    The Company shall cause options to purchase Company stock (“Stock Options”) held by a Participant that are not fully vested and exercisable on the date of the Qualifying Termination to become fully vested and exercisable as of the date of such Qualifying Termination.

(b)    The Company shall cause unvested restricted shares of Company stock (the “Restricted Shares”) and unvested restricted stock units (the “RSUs”) held by a Participant on the date of the Qualifying Termination, that, in either case, are subject to vesting based solely on the Participant’s continued service to the Company, to become fully vested (and in the case of RSUs, settled) as of the date of such Qualifying Termination.

(c)    The number of shares of Company stock a Participant would have been entitled to receive had the performance goals been achieved at the 100% target rate in each of the then-ongoing performance-based restricted stock programs (“PBRS”) and performance stock unit programs (“PSU”), and/or any successor programs to the PBRS and PSU programs, which remain subject to the performance-based conditions at the time of the Qualifying Termination, shall be granted by the Company to such Participant on the date of the Qualifying Termination without any further vesting conditions.

(d)    The cash amount a Participant would have been entitled to receive had the performance goals been achieved at the 100% target rate in each of the then-ongoing performance-based restricted unit programs (“PBRU”), and/or any successor programs to the PBRU programs, shall be paid by the Company to such Participant on the date of the Qualifying Termination.

		
	1.4
	Reduction of Payments. If a Participant’s receipt of any payment and/or non-monetary benefit under this Plan (including, without limitation, the accelerated vesting of Stock Options, Restricted Shares, and/or awards under the PBRS, PBRU, and/or PSU programs, and any successor programs) (collectively, the “Payments”) would, in the determination of a nationally recognized accounting firm retained by the Company (the “Accounting Firm”), cause him to become subject to the excise tax imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), the Company shall reduce his Payments in the manner and in the amounts determined by the Accounting Firm to be necessary to avoid the application of such excise tax (the “Reduced Amount”); provided, that the foregoing shall not apply if the Accounting Firm determines that, if such Payments were not so reduced, the net amount of Payments that the Participant would receive after payment of such excise tax would be greater than the Reduced Amount.  Any determinations by the Accounting Firm pursuant to this Section 1.4 shall be binding upon the Company and the Participant.

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	1.5
	Rights of Participants. Nothing contained herein shall be held or construed to create any liability or obligation on the Company to retain any Participant in its service or in a corporate officer position. All Participants shall remain subject to discharge or discipline to the same extent as if the Plan did not exist.

		
	1.6
	Release of Claims. All payments and benefits hereunder shall be conditioned upon the Participant executing and delivering to the Company within 45 days following his Qualifying Termination, and not revoking during any applicable revocation period, a general release of all claims against the Company and its subsidiaries, affiliates, and related persons in a form provided by the Company which is substantially similar to the Company’s then-current form of release.  If a Participant fails to timely execute such release or timely revokes his acceptance of such release, the Participant shall not be entitled to any severance payments or benefits hereunder.

ARTICLE II: FUNDING

		
	2.1
	Funding. The Plan shall be funded out of the general assets of the Company as and when benefits are payable under the Plan. All Participants shall be solely general creditors of the Company.

ARTICLE III: Restrictive Covenants

		
	3.1
	Restrictive Covenants. As additional consideration for the Severance Benefit (and additional benefits) provided under this Plan, the Participant hereby agrees to and/or reaffirms the restrictive covenants contained in the Company’s Restrictive Covenant Agreement entered into between the Participant and the Company prior to the date hereof or effective upon the Participant becoming subject to the Plan.  

ARTICLE IV: ADMINISTRATION OF THE PLAN

		
	4.1
	Plan Administrator. The general administration of the Plan shall be placed with the Compensation Committee of the Board or an administrative committee appointed by the Board (the “Committee”).

		
	4.2
	Reimbursement of Expenses of Committee. The Company shall pay or reimburse the members of the Committee for all reasonable expenses incurred in connection with their duties hereunder.

		
	4.3
	Action by the Plan Committee. Decisions of the Committee shall be made by a majority of its members attending a meeting at which a quorum is present (which meeting may be held telephonically), or by written action in accordance with applicable law. No member of the Committee may act with respect to a matter which involves only that member.  It is intended that the Committee shall enforce the Plan in accordance with its terms and shall not have administrative discretion to vary the terms of the Plan or a Participant’s rights under the Plan.

		
	4.4
	Retention of Professional Assistance. The Committee may employ such legal counsel, accountants and other persons as may be required in carrying out its work in connection with the Plan, and the Company shall pay the fees and expenses of such persons.

		
	4.5
	Accounts and Records. The Committee shall maintain such accounts and records regarding the fiscal and other transactions of the Plan, and such other data as may be required to carry out its functions under the Plan and to comply with all applicable laws.

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	4.6
	Compliance with Applicable Law. The Company shall be deemed the administrator of the Plan for the purposes of any applicable law and shall be responsible for the preparation and filing of any required returns, reports, statements or other filings with appropriate governmental agencies. The Company shall also be responsible for the preparation and delivery of information to persons entitled to such information under any applicable law.

		
	4.7
	Reimbursement of Expenses. If any contest or dispute shall arise under this Plan involving termination of a Participant's employment with the Company or involving the failure or refusal of the Company to perform fully in accordance with the terms hereof, the Company shall, immediately after the date a court issues a final order from which no appeal can be taken, or with respect to which the time period to appeal has expired, reimburse such Participant for all reasonable legal fees and expenses, if any, paid by the Participant in connection with such contest or dispute (together with interest in an amount equal to the JP Morgan Chase & Co. prime rate from time to time in effect, such interest to begin to accrue on the dates Participant actually paid such fees and expenses through the date of payment thereof); provided, however, the Participant shall not be entitled to any reimbursement for his legal fees and expenses if a court has made a final determination that the Participant's position was without merit.

ARTICLE V: AMENDMENT AND TERMINATION

		
	5.1
	Amendment and Termination. The Company reserves the right to amend or terminate, in whole or in part, any or all of the provisions of this Plan by action of the Board at any time; provided, that, during the two-year period following a Change in Control, the Company shall no longer have the power to amend or terminate the Plan in any manner adverse to Participants, except for amendments to comply with changes in applicable law which do not reduce the benefits and payments due hereunder in the event of a Qualifying Termination; provided, further, that, in no event shall any amendment reducing the benefits provided hereunder or any Plan termination be effective until at least six months after the date of the applicable action by the Board.

ARTICLE VI: SUCCESSORS

		
	6.1
	Successors. The Company shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all the business or assets of the Company, expressly and unconditionally to assume and agree to perform the Company's obligations under this Plan, in the same manner and to the same extent that the Company would be required to perform if no such succession or assignment had taken place. In such event, the term “Company,” as used in this Plan, shall mean the Company, as applicable, as hereinbefore defined and any successor or assignee to the business or assets which by reason hereof becomes bound by the terms and provisions of this Plan.

ARTICLE VII: MISCELLANEOUS

		
	7.1
	No Duty to Mitigate/Set-off. No Participant entitled to receive a Severance Benefit shall be required to seek other employment or to attempt in any way to reduce any amounts payable to him pursuant to this Plan. The Severance Benefit payable hereunder shall not be reduced by any compensation earned by the Participant as a result of employment by another employer or otherwise. The Company's obligations to pay the Severance Benefits and to perform its obligations hereunder shall not be affected by any circumstances including without limitation, any set off, counterclaim, recoupment, defense or other right which the Company may have against the Participant.

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	7.2
	Headings. The headings of the Plan are inserted for convenience of reference only and shall have no effect upon the meaning of the provisions hereof.

		
	7.3
	Use of Words. Whenever used in this instrument, a masculine pronoun shall be deemed to include the masculine and feminine gender, and a singular word shall be deemed to include the singular and plural, in all cases where the context so requires.

		
	7.4
	Controlling Law. The construction and administration of the Plan shall be governed the laws of the State of New York (without reference to rules relating to conflicts of law).

		
	7.5
	Withholding. The Company shall have the right to make such provisions as it deems necessary or appropriate to satisfy any obligations it reasonably believes it may have to withhold federal, state or local income or other taxes incurred by reason of payments pursuant to this Plan.

		
	7.6
	Severability. Should any provision of the Plan be deemed or held to be unlawful or invalid for any reason, such fact shall not adversely affect the other provisions of the Plan unless such determination shall render impossible or impracticable the functioning of the Plan, and in such case, an appropriate provision or provisions shall be adopted so that the Plan may continue to function properly.

7.7    Rights Under Other Plans, Policies, Practices and Agreements.

(a)    Other than as expressly provided herein, the Plan does not supersede any other plans, policies, and/or practices of the Company.

(b)    The Plan supersedes any other change in control severance plans, policies and/or practices of the Company as to the Participants.

		
	7.8
	Insurance. The Company shall continue to cover the Participants, or cause the Participants to be covered, under any director and officer insurance maintained after a Change in Control for directors and officers of the Company or its successor (whether by the Company or another entity) at no less of a level as that maintained by the Company or its successor for its directors and officers. Such coverage shall continue for any period during which the Participant may have any liability for his actions or omissions. Following a Change in Control and in addition to any rights under any other indemnification agreement, the Company or its successor shall indemnify the Participant to the fullest extent permitted by law against any claims, suits, judgments, expenses arising from, out of, or in connection with the Participant's services as an officer or director of the Company, or as a fiduciary of any benefit plan of the Company.

		
	7.9
	Code Section 409A.

		
	(a)
	The Company intends that the Plan and all benefits provided thereunder either comply with, or be exempt from, Section 409A of the Code and the regulations and guidance promulgated thereunder (“Section 409A”), and to the maximum extent permitted, the Plan shall be interpreted in accordance with such intent.  Nothing contained herein shall constitute any representation or warranty by the Company regarding compliance with Section 409A.  

		
	(b)
	Notwithstanding any contrary provision in the Plan or otherwise, any payments of “nonqualified deferred compensation” (within the meaning of Section 409A) that are 

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otherwise required to be made under the Plan to a “specified employee” (as defined under Section 409A) as a result of his or her separation from service (other than a payment that is not subject to Section 409A), to the extent necessary to comply with Section 409A, shall be delayed for the first 6 months following such separation from service (or, if earlier, the date of death of the specified employee) and shall instead be paid on the day that immediately follows the end of such 6 month period. Any remaining payments of nonqualified deferred compensation shall be paid without delay and at the time or times such payments are otherwise scheduled to be made.

		
	(c)
	To the extent necessary to comply with Section 409A, a termination of service shall not be deemed to have occurred for purposes of any provision of the Plan providing for the payment or provision of any amounts or benefits that are considered nonqualified deferred compensation under Section 409A upon or following a termination of service unless such termination is also a “separation from service” within the meaning of Section 409A and the payment thereof prior to a “separation from service” would violate Section 409A. For purposes of any such provision of the Plan or any Severance Agreement relating to any such payments or benefits, references to a “termination,” “termination of employment,” “termination of service” or like terms shall mean “separation from service.”

		
	7.10
	Effectiveness of Plan. This Plan is effective as of September 9, 2015.

ARTICLE VIII: DEFINITIONS.

		
	8.1
	“Cause” shall mean: (A) gross negligence or willful misconduct by a Participant which is materially injurious to the Company, monetarily or otherwise; (B) misappropriation or fraud with regard to the Company or its assets; (C) conviction of, or the pleading of guilty or nolo contendere to, a felony involving the assets or business of the Company; or (D) willful and continued failure to substantially perform his duties after written notice by the Board.  For purpose of the preceding sentence, no act or failure to act by a Participant shall be considered “willful” unless done or omitted to be done by such Participant in bad faith and without reasonable belief that the Participant's action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board, or based upon the advice of counsel for the Company, shall be conclusively presumed to be done, or omitted to be done, by the Participant in good faith and in the best interests of the Company.

		
	8.2
	“Change in Control” shall mean the consummation of any of the following: (A) any “Person” (as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), excluding the Company, any subsidiary of the Company, or any employee benefit plan sponsored or maintained by the Company (including any trustee of any such plan acting in his capacity as trustee), becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of securities of the Company representing 35% or more of the total combined voting power of the Company's then outstanding securities; (B) the merger, consolidation or other business combination of the Company (a “Transaction”), other than a Transaction immediately following which the stockholders of the Company immediately prior to the Transaction continue to be the beneficial owners of securities of the resulting entity representing more than 65% of the voting power in the resulting entity, in substantially the same proportions as their ownership of Company voting securities immediately prior to the Transaction; or (C) the sale of all or substantially all of the Company's assets, other than a sale immediately following which the stockholders of the Company immediately prior to the sale are the beneficial owners of securities of the purchasing 

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entity representing more than 65% of the voting power in the purchasing entity, in substantially the same proportions as their ownership of Company voting securities immediately prior to the Transaction.

		
	8.3
	“Current Total Annual Compensation” shall be the sum of the following amounts: (A) the greater of a Participant's highest rate of annual salary during the calendar year in which his employment terminates or such Participant's highest rate of annual salary during the calendar year immediately prior to the year of such termination; and (B) the average of a Participant's annual bonus compensation (prior to any bonus deferral election) earned in respect of the two most recent calendar years immediately preceding the calendar year in which the Participant's employment terminated.

		
	8.4
	“Good Reason” shall mean the occurrence of any of the following events after a Change in Control without the Participant's express written consent: (A) material diminution in the Participant's position, duties, responsibilities or authority as of the date immediately prior to the Change in Control; or (B) a reduction in a Participant's base compensation or a failure to provide incentive compensation opportunities at least as favorable in the aggregate as those provided immediately prior to the Change in Control; or (C) failure to provide employee benefits at least as favorable in the aggregate as those provided immediately prior to the Change in Control; or (D) a failure of any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) of the Company to assume in writing the obligations hereunder. A termination for Good Reason shall mean a termination by a Participant effected by written notice given by the Participant to the Company within 30 days after the occurrence of the Good Reason event, unless the Company shall, within 15 days after receiving such notice, take such action as is necessary to fully remedy such Good Reason event in which case the Good Reason event shall be deemed to have not occurred.

* * *

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Exhibit A
Form of Participation Letter
[Participant Name]
[Address]

Dear [_______]:
This letter is to confirm that, effective as of the date hereof,  you are a covered “Participant” in the CDK Global, Inc. (the “Company”) Amended and Restated Change in Control Severance Plan for Corporate Officers (the “Plan”).  Your continued participation and eligibility for benefits under the Plan shall be determined in accordance with the terms and conditions of the Plan.  In consideration for the payments and benefits under the Plan, you hereby agree and/or reaffirm that you are subject to the Company’s Restrictive Covenant Agreement.
Nothing contained in the Plan or this letter shall be held or construed to create any liability upon the Company to retain you in its service.  The Company reserves the right to amend, modify or terminate the Plan as permitted under the terms of the Plan.
Please countersign this letter and return it to ______________ by no later than ______.
Sincerely,    

__________________________
[Name]
[Title]

Acknowledged and Agreed:

___________________________            _________________
[Name of Participant]                    Date

8ex10-1.htm

Exhibit 10.1

 

Bryn Mawr Bank Corporation

 

September 8, 2015

  

Mr. Michael W. Harrington

910 Bent Creek Drive

Lititz, Pa 17543

 

Subject: Employment Agreement 

 

Dear Mike:

 

In consideration of the mutual promises contained in this employment agreement (this “Agreement”) and intending to be legally bound, Bryn Mawr Bank Corporation (the “Corporation”), its wholly owned subsidiary, The Bryn Mawr Trust Company (the “Bank”), and you, Michael W. Harrington, agree that you will be employed by the Corporation and the Bank on the following terms and conditions:

 

	
1.
	
Your Employment By the Corporation.

 

(a)     Effective as of October 5, 2015 (your “Employment Date”), you will become the Chief Financial Officer of the Corporation and the Bank. You will report to the Corporation’s and the Bank’s Chief Executive Officer. You agree to serve as a member of any committee of the Corporation or the Bank to which you may be elected or appointed. In addition, you agree to serve as a director and/or officer of any other subsidiary of the Corporation or the Bank to which you may be elected or appointed. To the extent you are not appointed the Treasurer of the Corporation and the Bank, you will be consulted as to who will be appointed to such offices.

 

	
2.
	
Employment At-Will.

 

You acknowledge that your employment is at-will and not of any specific duration. Either you, on the one hand, or the Corporation or the Bank, on the other hand, may terminate your employment at any time and for any reason, subject to the provisions of Section 8.

 

	
3.
	
Your Duties During the Term of Employment.

 

You shall devote your full business time (with allowances for vacations and sick leave), attention and best efforts to the affairs of the Corporation, the Bank and their subsidiaries during the term of employment hereunder; provided, however, that you may serve as a director or trustee of corporations or other entities and may engage in other activities to the extent that they do not inhibit the performance of your duties hereunder, or conflict with the business affairs of the Corporation, the Bank or their subsidiaries or the Corporation’s Code Of Ethics (the “Code Of Ethics”), a copy of which has been reviewed by you. You always shall conduct yourself in a manner that maintains the good reputation of the Corporation, the Bank and their subsidiaries. You shall comply with all lawful policies that from time to time may be in effect at the Corporation and the Bank or adopted by the Corporation and the Bank and communicated to you. You shall not directly or indirectly undertake or accept other employment or compensation for services rendered (except to the extent expressly permitted under the Code of Ethics) during the term of your employment with the Corporation and the Bank without having obtained the prior approval of the Corporation’s and the Bank’s Chief Executive Officer. So long as you remain employed by the Corporation and the Bank, any and all business opportunities from whatever source which you may receive or otherwise become aware of in connection with your employment with the Corporation and the Bank relating to the business of the Corporation, the Bank or any of their subsidiaries shall belong to the Corporation and the Bank, and, unless the Corporation and the Bank specifically, after full disclosure by you of each and any such opportunity, waives its right in writing, the Corporation and the Bank shall have the sole right to act upon any of such business opportunities as they deem advisable.

 

 

 

 

 

 

Michael W. Harrington

Page 2

 

You have reviewed with the Corporation’s Chief Executive Officer your present directorships, public service commitments and personal business interests, which are listed on Exhibit A attached hereto and incorporated by reference herein, and have obtained the Chief Executive Officer’s written approval for your continuance in such present capacities, unless, hereafter, the Chief Executive Officer determines in a particular case, that there is a potential conflict with the Corporation’s or the Bank’s or their subsidiaries’ best interests. Without prejudice to the provisions of Section 10 of this Agreement, you hereby agree that your acceptance of any future proposed directorships or positions in other organizations will be subject to prior review and approval by the Corporation’s Compliance Officer (as defined in the Code of Ethics) and compliance with the Code of Ethics.

 

	
4.
	
Compensation and Related Matters.

 

(a)     Salary. Commencing on the Employment Date and thereafter during the term of your employment hereunder, the Bank shall pay to you an annual salary of $325,000, less all applicable taxes and other withholdings, in equal biweekly installments in arrears (“Base Salary”). Your Base Salary may be adjusted from time to time in accordance with normal business practices of the Bank and in the Bank’s sole discretion. 

 

(b)     Bonus. For each fiscal year ending during your employment, including 2015 on a pro rata basis, you will be eligible to earn an annual bonus. The actual bonus payable, if any, with respect to a particular year will be determined by the Boards of Directors of the Corporation or the Bank (as applicable), based on the achievement of corporate and/or individual performance objectives established by such Board, provided that you must be employed by the Corporation on the date the bonus is paid in order to receive such payment. For purposes of determining any bonus payable to you, the measurement of corporate and individual performance will be performed by the Boards of Directors of the Corporation or the Bank (as applicable) in good faith. From time to time, such Board may, in its sole discretion, make adjustments to corporate or individual performance goals, so that required departures from the Corporation’s or Bank’s (as applicable) operating budget, changes in accounting principles, acquisitions, dispositions, mergers, consolidations and other corporate transactions, and other factors influencing the achievement or calculation of such goals do not affect the operation of this Section 4(b) in a manner inconsistent with its intended purposes.

 

 

 

 

 

 

Michael W. Harrington

Page 3

 

(c)     Equity Awards. In the discretion of the Board of Directors of the Corporation (or any appropriate committee thereof), you will be eligible to receive a grant of 6,000 restricted stock units (“RSUs”) pursuant to the Corporation’s equity compensation plans as in effect from time to time. Such grant of RSUs shall be made in the fourth quarter of 2015. Subject to your continued employment with the Corporation and the Bank, such RSUs shall vest in substantially equal annual installments on each of the first three anniversaries of the grant date.

 

In addition, during your employment (including in 2016), you may be eligible to receive other equity compensation awards in the discretion of the Board of Directors of the Corporation (or any appropriate committee thereof) pursuant to the Corporation’s equity compensation plans as in effect from time to time. To the extent you receive any such other equity compensation awards from the Corporation, all or a portion of such equity compensation awards may be conditioned on the achievement of certain performance objectives (relating to your performance, the Corporation’s performance, the Bank’s performance, or a combination thereof) that are specified by the Board of Directors of the Corporation (or any appropriate committee thereof) at the time of grant. 

 

(d)     Expenses. During the term of your employment hereunder, you shall be entitled to receive prompt reimbursement for all reasonable expenses you incur in performing your duties hereunder, including all expenses of travel and living expenses while away from home on business in the service of the Corporation, the Bank and their subsidiaries, provided that such expenses are incurred and accounted for in accordance with the policies and procedures established by the Corporation, the Bank or their subsidiaries at the time the expenses are incurred (the “Expense Reimbursement Policy”).

 

(e)     Plan Benefits. During the term of your employment hereunder, you shall be entitled to participate in all of the Corporation’s and the Bank’s employee benefit plans and arrangements made generally available to their executives and key management employees in effect on your Employment Date, including, without limitation, each pension and retirement plan and arrangement, life insurance and health and accident plan and arrangement, medical insurance plan, disability plan, survivor income plan, vacation plan and bonus plan. You shall be entitled to participate in or receive benefits under any employee benefit plan or arrangement made generally available by the Corporation or the Bank in the future to its executives and key management employees, subject to, and on a basis consistent with, the terms, conditions and overall administration of such plans and arrangements. Nothing paid to you under any plan or arrangement presently in effect or made available in the future shall be deemed to be in lieu of the salary payable to you pursuant to subsection (a) of this Section 4. Notwithstanding the foregoing, nothing in this Agreement will be interpreted as limiting the Corporation’s or the Bank’s ability to amend, modify or terminate such employee benefit plans and arrangements at any time for any reason.

 

(f)     Paid Time Off (“PTO”). You shall be entitled to the number of PTO days in each calendar year determined in accordance with the Bank’s PTO policy in effect from time to time. Under the Bank’s current PTO policy, you will be entitled to 4 days of PTO for 2015, and 33 days of PTO for 2016, in each case, subject to change in accordance with any revision to the Bank’s PTO policy. You shall also be entitled to all paid holidays given by the Bank to its executives.

 

 

 

 

 

 

Michael W. Harrington

Page 4

 

(g)     Signing Bonus. You shall be entitled to receive a $25,000 signing bonus at the time you receive your first payment of Base Salary pursuant to Section 4(a) above; provided, however, that you shall be obligated to immediately repay such signing bonus in full to the Bank should your employment be terminated pursuant to Section 8(a)(iii) or Section 8(a)(vi) hereof on or before March 1, 2017, and the Bank shall have the right to offset such amount against any other amounts that may be due and owing to you in connection with such termination of employment.

 

	
5.
	
Performance of Additional Duties and Offices.

 

If you are elected or appointed a director or officer of any subsidiary of the Corporation (other than the Bank) or the Bank, you hereby agree to serve without compensation in respect of only such subsidiary positions (other than provided in this Agreement).

 

	
6.
	
Place of Performance of Employment.

 

In connection with your employment by the Corporation and the Bank, you shall be based at the principal executive offices of the Corporation and the Bank in Bryn Mawr, Pennsylvania, except for required travel on the Corporation’s and the Bank’s business.

 

	
7.
	
Confidential Information.

 

(a)     You recognize and acknowledge that the confidential information (as defined below) is a valuable, special and unique asset of the Corporation, the Bank and their subsidiaries. As a result, you hereby agree not to disclose, while in the employ of the Corporation, the Bank or any subsidiary thereof or at any time thereafter, to any person or entity, any confidential information obtained by you while in the employ of the Corporation, the Bank or any subsidiary thereof, and not to use such confidential information except as authorized in the performance of your duties for the Corporation, the Bank or any subsidiary thereof. This provision shall not preclude you from disclosure of confidential information (i) to enforce any rights against the Corporation, the Bank or their subsidiaries or to defend yourself against any claims or allegations by the Corporation, the Bank, their subsidiaries or any of their respective directors, employees or agents; provided, however, that any disclosure made under this clause (i) shall be made only in connection with a proceeding before a court or other governmental agency or administrative or legislative body, and you agree to use best efforts to obtain confidential treatment for such disclosure; or (ii) as required by law or court order or by any governmental agency or administrative or legislative body. These obligations are in addition to, and do not limit in any way your obligations with respect to trade secrets, confidential information or proprietary information under any statute or common law. The term “confidential information” as used in this Agreement means non-public information that includes, but is not limited to, records, lists, and knowledge of the Corporation’s, the Bank’s and their subsidiaries’ clients, methods of operation, processes, trade secrets, methods of determination of prices, prices or fees, financial information, business, marketing and strategic plans, personnel information, profits, sales, net income, and indebtedness, as the same may exist from time to time.

 

 

 

 

 

 

Michael W. Harrington

Page 5

 

(b)     You hereby agree that, upon leaving the Corporation’s and the Bank’s employ, you will not take with you, without obtaining the prior written consent of an officer authorized to give such consent by the Board of Directors of the Corporation or the Bank, any of the Corporation’s, the Bank’s or their subsidiaries’ documents or copies thereof (whether paper or electronic or other form) which are of a confidential nature.

 

	
8.
	
Termination of Employment.

 

(a)     Your employment hereunder may be terminated without any breach of this Agreement under the following circumstances: 

 

(i)     Death. Your employment hereunder shall terminate upon your death.

 

(ii)     Disability. The Corporation and the Bank may terminate your employment hereunder because of your incapacity due to physical or mental illness, causing your inability, on a full-time basis, to perform your essential job duties with or without a reasonable accommodation for the entire period of 90 consecutive days or for such shorter period the extension of which would present an undue hardship to the Corporation or the Bank (the “Disability Period”), to the extent permitted by law. Your employment will not be terminated pursuant to this provision until 30 days after your receipt of a Notice of Termination (which may be sent to you before or after the end of the Disability Period), following which you have not returned to the performance of your essential job duties with or without a reasonable accommodation on a full-time basis prior to the expiration of such 30 day period.

 

(iii)     Cause. The Corporation and the Bank may terminate your employment hereunder for Cause. For purposes of this Agreement, the Corporation and the Bank shall have “Cause” to terminate your employment upon (i) your continued failure to substantially perform your job duties (other than any such failure resulting from your incapacity due to physical or mental illness as provided in subsection (a)(ii) of this Section 8), after a written demand for your substantial performance is delivered to you by the Corporation and the Bank which specifically identifies the manner in which the Corporation and the Bank believe you have not substantially performed your duties, and you have failed, in the good faith judgment of the Corporation and the Bank, to provide the performance demanded within 30 days after your receipt of such written demand; or (ii) your engagement in gross negligence or misconduct which is materially injurious to the Corporation, the Bank or any of their subsidiaries, monetarily or otherwise; or (iii) your plea of nolo contendere or guilty with respect to or conviction of a crime involving moral turpitude or dishonesty, or any felony; or (iv) any misappropriation of funds by you; (v) or your use, possession or distribution of, or being under the influence of, drugs or alcohol during working time or work-related activities or in a manner that is injurious to the reputation of the Corporation or the Bank or any of their subsidiaries; or (vi) your making a general assignment for the benefit of your creditors or your institution of any proceeding seeking to adjudicate you bankrupt or insolvent under any laws relating to bankruptcy or insolvency or an involuntary petition shall be filed against you seeking relief under any law relating to bankruptcy or insolvency which remains undismissed for a period of 60 days or more; or (vii) your willful violation of the provisions of this Agreement and your failure to cure such violation within 30 days after receipt of written notice of such violation; or (viii) the receipt of a request by the Corporation, the Bank or any of their subsidiaries, of a notice from any of the governmental agencies that supervise any of them, that you be suspended or removed from any position that you then hold with the Corporation, the Bank or any of their subsidiaries.

 

 

 

 

 

 

Michael W. Harrington

Page 6

 

Notwithstanding any other provision of this Agreement to the contrary, a termination of your employment for Cause shall not delay or otherwise interfere with any action taken by any governmental agency to suspend or remove you from any position held by you with the Corporation, the Bank or any of their subsidiaries. If you are suspended and/or temporarily prohibited from participating in the conduct of the affairs of the Corporation, the Bank or any of their subsidiaries by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act, the Corporation’s and the Bank’s obligations under this Agreement shall be suspended as of the date of service unless stayed by appropriate proceedings. If you are removed and/or permanently prohibited from participating in the conduct of the Corporation’s or the Bank’s affairs by an order issued under Section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, all obligations of the Corporation and the Bank under this Agreement shall terminate as of the effective date of the order.

 

(iv)     Termination without Cause. The Corporation and the Bank may terminate your employment at any time without Cause.

 

(v)     Voluntary Termination for Good Reason. You may terminate your employment hereunder for Good Reason. For purposes of this Agreement, you shall have “Good Reason” to terminate your employment upon the first to occur of: (i) a significant reduction by the Corporation of your authority, duties or responsibilities hereunder; or (ii) any removal of you from your Chief Financial Officer position with the Corporation or the Bank; (iii) a reduction by the Corporation or the Bank in your Base Salary (other than a reduction that is imposed proportionately on all members of the Corporation’s or the Bank’s senior executives, or pursuant to a program or formula that is applied equally to all members of the Corporation’s or the Bank’s senior executives); or (iv) a change by the Corporation or the Bank in your principal place of employment to a location that increases your one-way daily commute by more than 35 miles. None of the foregoing events or conditions will constitute Good Reason unless you provide the Corporation and the Bank with notice describing the event or condition within 30 days following the occurrence thereof, the Corporation and the Bank do not cure the event or condition within 30 days of receiving that written objection, and you resign your employment within 15 days following the expiration of that cure period by providing a Notice of Termination to the Corporation and the Bank.

 

(vi)     Voluntary Termination. You may terminate your employment hereunder at any time upon not less than 30 days prior written notice to the Corporation and the Bank.

 

Any termination of your employment by the Corporation and the Bank or by you (other than termination pursuant to subsection (a)(i) of this Section 8) shall be communicated by a Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) briefly summarizes the facts and circumstances deemed to provide a basis for termination of your employment under the provision so indicated, and (iii) specifies the termination date.

 

 

 

 

 

 

Michael W. Harrington

Page 7

 

(b)     For the purposes of this Agreement, “Date of Termination” shall mean (i) if your employment is terminated by death, the date of death, (ii) if your employment is terminated pursuant to subsection (a)(ii) of this Section 8, 30 days after Notice of Termination is sent to you (provided that you shall not have returned to the performance of your essential job duties on a full-time basis during such 30 day period) and if requested by the Board of Directors of the Corporation, you agree to undergo a medical examination by a doctor selected by the Board which confirms that you are fit to continue full-time employment hereunder to the extent permitted by law, or (iii) if your employment or this Agreement is terminated for any other reason, the date specified in a Notice of Termination.

 

(c)     Upon termination of your employment for any reason, unless otherwise consented to in writing by the Board of Directors of the Corporation, you agree to resign immediately from any and all officer, director, committee member and other positions you then hold with the Corporation, the Bank and their subsidiaries. 

 

(d)     Upon termination of your employment for any reason, you agree that all documents, records, forms, notebooks, client lists, manuals, computer records or files, and similar materials containing any information regarding the business of the Corporation, the Bank and their subsidiaries or their customers, whether or not such materials contain confidential information (as defined in Section 7 above), including any copies thereof, then in your possession, whether prepared by you or others, will be left with or promptly returned to the Corporation and the Bank. You further agree that upon termination of your employment for any reason, you shall leave with or promptly return to the Corporation and the Bank, all other property of the Corporation, the Bank or their subsidiaries, including but not limited to computers and personal communication devices.

 

	
9.
	
Compensation in the event of Death, During Disability Period or Upon Other Termination.

 

(a)     Upon the termination of your employment for any reason, you shall be entitled to the following payments and benefits in addition to any other payments and benefits set forth in this Section 9: (i) all earned but unpaid Base Salary compensation, (ii) all accrued but unused PTO; (iii) reimbursement for expenses incurred prior to your Date of Termination that are otherwise reimbursable under Section 4(d) provided that all necessary documentation is submitted in accordance with the Expense Reimbursement Policy not more than 5 business days after your Date of Termination; (iv) all vested benefits and deferred compensation under the Corporation’s and the Bank’s employee benefit plans, programs and arrangements in accordance with the applicable terms and conditions thereof; and (v) all payments due to you under the terms of your outstanding equity awards in accordance with the applicable terms and conditions thereof (collectively, the “Accrued Benefits”). 

 

(b)     If your employment shall be terminated because of your death, the Bank shall pay to your estate (i) your Accrued Benefits and (ii) to the extent not included in the Accrued Benefits, your Base Salary through the last day of the month of your death at the rate in effect at the time of your death, and the Corporation, the Bank and their subsidiaries shall have no further obligations to you under this Agreement.

 

 

 

 

 

 

Michael W. Harrington

Page 8

 

(c)     If your employment shall be terminated because you are unable to perform your essential job duties hereunder as a result of incapacity due to physical or mental illness that is a disability as defined in subsection 8(a)(ii) hereof, the Bank shall pay you (i) your Accrued Benefits and (ii) your full Base Salary for a period equal to the applicable “elimination period” under any group long-term disability insurance provided by the Corporation or the Bank which is currently 180 days, and the Corporation, the Bank and their subsidiaries shall have no further obligations to you under this Agreement; provided, however, that such Base Salary payment shall be reduced by any amounts paid to you under the Corporation’s or the Bank’s short term disability plan or policy. In the event that the Corporation or the Bank ceases to provide group long-term disability insurance with an elimination period of at least 180 days to you, you shall be entitled to payment of your Base Salary (reduced as described in the preceding sentence) through the last day of the 180 day period following your Date of Termination, and the Corporation, the Bank and their subsidiaries shall have no further obligations to you under this Agreement.

 

(d)     If your employment shall be terminated for Cause, the Bank shall pay you your earned but unpaid Base Salary through the Date of Termination, and the Corporation, the Bank and their subsidiaries shall have no further obligations to you under this Agreement.

 

(e)     If the Corporation and the Bank shall terminate your employment under subsection 8(a)(iv) or you terminate your employment under Section 8(a)(v): 

 

(i)      the Bank shall pay you your Accrued Benefits, through the Date of Termination, at the rate in effect on the date of the Notice of Termination; and

 

(ii)     in lieu of any further salary and other payments that may be due and owing to you from the Corporation, the Bank or any of their subsidiaries, the Bank shall pay you an amount equal to 1 year of your Base Salary at the rate in effect on the date of the Notice of Termination, in substantially equal biweekly installments, and shall pay 100% of the applicable premiums for COBRA continuation coverage for you and your eligible dependents for a period of 12 months following your Date of Termination (or, if earlier, until the date that you and your eligible dependents are no longer eligible for COBRA continuation coverage under the Corporation’s or the Bank’s group health plans), in each case provided that (i) you execute, deliver to the Corporation and the Bank and do not revoke during any applicable statutory revocation period, by the 60th day following the effective date of your cessation of employment, a Separation Agreement and Release in a form acceptable to the Corporation and the Bank and (ii) you continue to comply with the provisions of Section 7 and Section 10. Severance payments will not begin until the revocation period set forth in the Separation Agreement and Release expires and your release becomes non-revocable, provided that if the 60 day period described above begins in one taxable year and ends in a second taxable year such payments or benefits shall not commence until the second taxable year. Upon payment of the amounts set forth in this Section 9(e) (subject to your compliance with clause (ii) above), the Corporation and the Bank and their subsidiaries shall have no further obligations to you under this Agreement.

 

 

 

 

 

 

Michael W. Harrington

Page 9

 

(f)     If you shall terminate your employment under Section 8(a)(vi), the Bank shall pay you your earned but unpaid Base Salary through the Date of Termination, and the Corporation and the Bank and their subsidiaries shall have no further obligations to you under this Agreement.

 

(g)     You shall not be required to mitigate the amount of any payment provided for in this Section 9 by seeking other employment or otherwise, except as provided in subsection 10(b). Notwithstanding anything herein to the contrary, the Corporation’s and Bank’s obligations under this Section 9 shall survive termination of this Agreement.

 

	
10.
	
Restrictive Covenants.

 

(a)     Definitions. As used in this Section 10, the term “Restricted Period” shall mean a period commencing on the date hereof and continuing for 24 months (or, in the case of Section 10(b) below, 6 months) after completion of the Company Group’s payment of compensation to you hereunder; the term “Business” shall mean any business in which any member of the Company Group is engaged at any time during the term of your employment and also encompasses any field or line of business with respect to which any member of the Company Group is engaged in research and/or development at any time during the term of your employment; and the term “Company Group” shall mean (i) collectively, the Corporation, the Bank and their subsidiaries, and (ii) where applicable, individually, the Corporation, the Bank or any of their subsidiaries.

 

(b)     Non-Competition. You shall not, during the Restricted Period (as defined above), directly or indirectly, without the prior written consent of the Corporation and the Bank:

 

(i)     engage, manage, operate, join, control or participate in, or assist or advise any other person engaged or proposing to engage in, any business activity competitive with the Business of the Company Group anywhere in the Restricted Area (as defined below); or 

 

(ii)     become an owner, stockholder, lender, partner, co-venturer, director, officer, employee, agent, consultant, representative or otherwise in or with any person or other entity engaged, directly or indirectly, in whole or in part, in any business that is competitive with the Business of the Company Group in the Restricted Area. Notwithstanding the foregoing, you, solely as a passive investment, may hold up to one percent (1%) of the outstanding securities of any class of any publicly-owned corporation.

 

The term “Restricted Area” shall mean anywhere within a 100 mile radius of a branch or other place of business of the Company Group. If, however, a court determines that the Restricted Area as defined in the immediately preceding sentence is overly broad, then the “Restricted Area” shall mean anywhere within a 100 mile radius of Bryn Mawr, Pennsylvania.

 

(c)     Non-Solicitation. You shall not, during the Restricted Period, directly or indirectly, without the prior written consent of the Corporation and the Bank:

 

 

 

 

 

 

Michael W. Harrington

Page 10

 

(i)     solicit or call on, directly or indirectly, on your own behalf or on behalf of any person or entity other than the Company Group, any customer or prospective customer of the Company Group or any person or entity that was a customer of the Company Group at any time within 2 years prior to the cessation of your employment hereunder for the purpose of engaging in any business then engaged in by the Company Group or that would otherwise constitute Business;

 

(ii)     influence or attempt to influence any person or entity engaged in business with the Company Group to terminate or modify any written or oral agreement or course of dealing with the Company Group; or

 

(iii)     influence or attempt to influence any person who is then employed or retained by the Company Group as an employee, officer, director, consultant or agent or has served in any such capacity on behalf of the Company Group within 2 years prior to the time of the solicitation to terminate or modify his or her employment, consulting, agency or other arrangement with the Company Group, or employ or retain, or arrange to have any other person or entity employ or retain, any such current or former Company Group employee, officer, director, consultant or agent.

 

(d)     No Conflicts. You represent and warrant that you are not a party to or bound by any agreement, arrangement or understanding, whether written or otherwise, which prohibits or in any manner restricts your ability to enter into and fulfill your obligations under this Agreement and/or which would in any manner, directly or indirectly, limit or affect the duties and responsibilities which may now or in the future be assigned to you, and you agree that you will not enter into, any oral or written agreement in conflict herewith. You have respected and at all times in the future will continue to respect the rights of your previous employer(s) in trade secret and confidential information in accordance with applicable agreements, if any, and applicable law. You have left with your previous employers all proprietary documents, computer software programs, computer discs, customer lists, and any other material which is proprietary to your previous employer(s), have not taken copies of any such materials and will not remove or cause to be removed any such material or copies of any such material from such previous employer(s) in violation of your agreements, if any, with previous employers. You will indemnify and hold harmless the Company Group and its and their successors and assigns from any claims, liabilities, damages, costs and expenses (including legal fees) resulting from third-party claims of any such conflict, violation or breach.

 

(e)     Remedies. You acknowledge that the Company Group is and will be engaged in highly competitive businesses and that the confidential information, as well as its respective business techniques and programs, are of great significance in enabling it to compete and participate in the various markets in which it is active. You further acknowledge that the Company Group does conduct business on a broad regional basis, and that its products and services are or will be distributed throughout the entire region. You acknowledge and agree that the restrictions contained in Section 7 and Section 10 of this Agreement are reasonable and necessary in order to protect the legitimate interests of the Company Group and that any violation thereof would result in irreparable injury to the Company Group. Consequently, you acknowledge and agree that, in the event of any violation thereof, the Company Group shall be authorized and entitled to obtain from any court of competent jurisdiction injunctive and equitable relief, including, without limitation, specific performance, temporary restraining order, preliminary injunction, permanent injunction or other interim or conservative relief, as well as an equitable accounting of all profits and benefits arising out of such violation, which rights and remedies shall be cumulative and in addition to any other rights or remedies to which the Company Group may be entitled at law or in equity and, in the event the Company Group is required to enforce the terms of this Agreement through court proceedings, the Company Group shall be entitled to reimbursement of all legal fees, costs and expenses incident to enforcement of any such term, in whole or in part and/or such term as may be modified by a court of competent jurisdiction. You will not seek, and waive any requirement for, the securing or posting of a bond or proving actual damages in connection with the Company Group’s or its or their successors or assigns seeking or obtaining injunctive or equitable relief in connection with your covenants or other obligations under Section 7 and Section 10 of this Agreement. If, despite the foregoing waivers, a court would nonetheless require the posting of a bond, the parties agree that a bond in the amount of $1,000 would be a fair and reasonable amount, particularly in light of the difficulty in quantifying what would be the actual loss caused by an injunction.

 

 

 

 

 

 

Michael W. Harrington

Page 11

 

(f)     Scope; Tolling. If any court of competent jurisdiction construes any of the restrictive covenants set forth in Section 10 of this Agreement, or any part thereof, to be unenforceable because of the duration, scope or geographic area covered thereby, such court shall have the power to reduce the duration, scope or geographic area of such provision and, in its reduced form, such provision shall then be enforceable and shall be enforced. In the event of any breach or violation of a restriction contained in Section 10 of this Agreement, the period therein specified shall abate during the time of such violation, and that portion shall not begin to run until such violation has been fully and finally cured.

 

(g)     Acknowledgements.

 

(i)     The Company Group’s customer and business relationships are or will be near permanent and such relationships are significant assets belonging to the Company Group which have been or will be developed through a substantial investment of time, effort, and expense in the Company Group’s regional market, and, as a result of your employment with the Company Group, (i) you will have contact with such customers and business partners which you would not otherwise have had and (ii) such customers and business partners will associate the Company Group’s goodwill with you.

 

(ii)     The Company Group has developed and will develop a wealth of intimate knowledge regarding its customers and business partners, and the identity of the Company Group’s customers and business partners is not generally known in the worldwide community in which the Company Group’s businesses are located; and, for these and other reasons, the Company Group has a legitimate, protectable interest in the identity of its customers and business partners and the method of operations of its business.

 

(iii)     Your skills in the area of the Company Group’s business will be developed and enhanced as a result of your employment relationship with the Corporation and the Bank.

 

 

 

 

 

 

Michael W. Harrington

Page 12

 

(iv)      The Company Group has a legitimate interest in protecting the goodwill, client and business partner information, client and business partner relationships, and use of your skills by means of enforcement of the restrictive covenants set forth in this Agreement.

 

(v)      YOU REPRESENT AND WARRANT THAT THE KNOWLEDGE, SKILLS AND ABILITIES YOU POSSESSES AT THE TIME OF COMMENCEMENT OF EMPLOYMENT HEREUNDER ARE SUFFICIENT TO PERMIT YOU, IN THE EVENT OF TERMINATION OF YOUR EMPLOYMENT HEREUNDER FOR ANY REASON, TO EARN, DURING THE RESTRICTED PERIOD, A LIVELIHOOD SATISFACTORY TO YOU WITHOUT VIOLATING ANY PROVISION OF SECTION 7 OR 10 HEREOF, FOR EXAMPLE, BY USING SUCH KNOWLEDGE, SKILLS AND ABILITIES, OR SOME OF THEM, IN THE SERVICE OF A NON-COMPETITOR OF THE COMPANY GROUP. YOU ACKNOWLEDGE THAT YOUR COVENANTS CONTAINED IN SECTION 7 AND SECTION 10 OF THIS AGREEMENT ARE GIVEN IN CONSIDERATION OF the willingness of the CORPORATION and THE BANK to make valuable benefits available hereafter to YOU, including THE CORPORATION’S AND THE BANK’S willingness to enter into this Agreement, the privilege to have access to CONFIDENTIAL Information, and the other good and valuable consideration set forth herein. YOU further acknowledge that YOUR ability to earn a livelihood without violating Section 7 OR SECTION 10 of this Agreement is a material condition of YOUR employment with the CORPORATION and THE BANK. YOU, THE CORPORATION and THE BANK acknowledge that YOUR rights have been limited by this Agreement only to the extent reasonably necessary to protect the legitimate interests of THE Company GROUP.

 

(h)     Intellectual Property Disclosure and Cooperation. You shall promptly disclose to the Corporation and the Bank any inventions or processes discovered by you which are made at the behest of the Company Group or in connection with your duties under this Agreement, or which reasonably relate to the Business, during the term of your employment, and you shall assign all rights in said inventions or processes to, or at the direction of, the Corporation and the Bank. You shall execute any documents reasonably requested by the Corporation and the Bank for patents and take such legal steps which the Corporation and the Bank may desire to perfect their rights in the inventions. 

 

(i)     Prior Inventions. You further represent and warrant that you have submitted to the Corporation and the Bank a list of all inventions, original works of authorship, developments, improvements, and trade secrets which were made by you prior to your employment with the Corporation and the Bank (collectively the “Prior Inventions”), which belong to you, which relate to the Business, products or research and development, and which are not assigned to the Corporation or the Bank hereunder as of the date hereof or, if no such list has been submitted, you represent that there are no such Prior Inventions. 

 

(j)     Survival of Covenants. The parties hereto agree that Section 7 and this Section 10 shall be deemed to consist of a series of separate covenants. It is expressly understood and agreed that the covenants and undertakings in Section 7 and Section 10 shall survive the termination of your employment or the termination of this Agreement. The existence of any claim or cause of action that you may have against the Company Group or any other person, including but not limited to, any claim under this Agreement, shall not constitute a defense or bar to the enforcement of any of the covenants and undertakings contained in Section 7 or Section 10 of this Agreement.

 

 

 

 

 

 

Michael W. Harrington

Page 13

 

	
11.
	
Successors and Binding Agreement.

 

(a)     The Corporation and the Bank may 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 Corporation or the Bank, by agreement in form and substance satisfactory to the Corporation’s and Bank’s Boards of Directors, to expressly assume and agree to honor this Agreement in the same manner and to the same extent that the Corporation and the Bank would be required to honor it if no such succession had taken place. As used in this Section 11 of this Agreement, “Corporation” and “Bank” shall mean the Corporation and the Bank as hereinbefore defined and any successor to its business and/or assets as aforesaid which executes and delivers any agreement provided for in this Section 11 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law.

 

(b)     This Agreement and all of your rights hereunder shall inure to the benefit of and be enforceable by and against your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. You may not assign this Agreement. Any amounts payable hereunder as a result of your death shall be paid in accordance with the terms of this Agreement to your devisee, legatee, or other designee or if there be no such designee, to your estate. 

 

	
12.
	
Compliance with Section 409A. 

 

Notwithstanding anything to the contrary in this Agreement, no portion of the benefits or payments to be made under Section 9 that constitute non-qualified deferred compensation under Section 409A of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations and Internal Revenue Service guidance promulgated thereunder (the “Code”) will be payable until you have “separation from service” from the Corporation and the Bank within the meaning of Section 409A of the Code. In addition, to the extent compliance with the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any successor provision) is necessary to avoid the application of an additional tax under Section 409A of the Code to payments due to you upon or following your “separation from service”, then notwithstanding any other provision of this Agreement (or any otherwise applicable plan, policy, agreement or arrangement), any such payments that are otherwise due within six months following your “separation from service” (taking into account the preceding sentence of this paragraph) will be deferred without interest and paid to you in a lump sum immediately following such six month period. This paragraph should not be construed to prevent the application of Treas. Reg. § 1.409A-1(b)(9)(iii) (or any successor provision) to amounts payable hereunder. For purposes of the application of Section 409A of the Code, each payment in a series of payments will be deemed a separate payment. Further, except to the extent any expense, reimbursement or in-kind benefit provided to you does not constitute a “deferral of compensation” within the meaning of Section 409A of the Code, and its implementing regulations and guidance, (i) the amount of expenses eligible for reimbursement or in-kind benefits provided to you during any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to you in any other calendar year, (ii) the reimbursements for expenses for which you are entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred and (iii) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.

 

 

 

 

 

 

Michael W. Harrington

Page 14

 

	
13.
	
Notices.

 

For the purposes of this Agreement, notices, demands and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered by a nationally recognized overnight courier or (unless otherwise specified) mailed by United States registered mail, return receipt requested postage prepaid, addressed as follows:

 

	
If to you: 
	
your most recent address set forth in the Corporation’s or the Bank’s records

	
 
	
 

	
If to the Corporation and the Bank:
	
Bryn Mawr Bank Corporation 

	
 
	
801 Lancaster Avenue

	
 
	
Bryn Mawr, PA 19010-3396

	
 
	
Attention: Corporate Secretary

	
 
	
 

	
 
	
with a copy to:

	
 
	
 

	
 
	
Bryn Mawr Bank Corporation

	
 
	
801 Lancaster Avenue 

	
 
	
Bryn Mawr, PA 19010-3396

	
 
	
Attention: General Counsel

 

or to such other address as any party may have furnished to the others in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

	
14.
	
Representations and Warranties.

 

The Corporation and the Bank represent and warrant that the execution of this Agreement by the Corporation and the Bank has been duly authorized by resolution of their respective Boards of Directors and that the Corporation and the Bank have the authority to execute and deliver this Agreement and that the Agreement does not conflict with or violate any other agreement or contract by which the Corporation or the Bank is bound. You represent and warrant to the Corporation and the Bank that you are authorized to execute and deliver this Agreement and that this Agreement does not conflict with or violate the provisions of any agreement to which you are bound. You further represent and warrant to the Corporation and the Bank that you have carefully read and considered the provisions of this Agreement and have had an opportunity to consult with independent legal counsel of your choosing prior to executing this Agreement. All parties acknowledge and agree that they are executing this Agreement voluntarily and intending to be legally bound.

 

 

 

 

 

 

Michael W. Harrington

Page 15

 

	
15.
	
Choice of Law and Venue.

 

It is understood and agreed that the construction and interpretation of this Agreement shall at all times and in all respects be governed by the laws of the Commonwealth of Pennsylvania, without giving effect to the applicable conflict of laws provisions that would apply the law of a different jurisdiction. Any action brought with respect to this Agreement shall be brought in the United States District Court for the Eastern District of Pennsylvania or the Court of Common Pleas of Montgomery County, Pennsylvania. 

 

	
16.
	
Mediation.

 

Except for claims asserted pursuant to Sections 7 and 10, should a dispute arise between the parties in connection with this Agreement, the parties shall endeavor in good faith to come to an agreement with respect to the dispute. In the event the parties are unable to reach an agreement within thirty (30) days after a notice of dispute is delivered, the parties agree to first submit such dispute to mediation before a mediator acceptable to both parties, who shall promptly conduct mediation. The mediator shall be chosen from the CPR Institute for Dispute Resolution or the American Arbitration Association (“AAA”). In the event the parties cannot agree on an acceptable mediator within forty five (45) days after notice of dispute is delivered, the parties shall submit the matter to AAA for appointment of a qualified mediator by AAA. In the event that the dispute is not resolved within sixty (60) days after the day the parties first meet with a mediator, or in the event that the mediator certifies that further mediation proceedings are fruitless, the parties reserve all rights each may have to bring an action in court for any claims under this Agreement. 

 

	
17.
	
Enforcement.

 

The prevailing party in any suit or other legal action in connection with the enforcement of this Agreement shall be entitled, in addition to any other remedy available at law or in equity, to reimbursement of its reasonable costs and expenses (including reasonable attorneys’ fees).

 

	
18.
	
Third-Party Beneficiaries.

 

The Corporation’s and the Bank’s subsidiaries are express third-party beneficiaries of this Agreement.

 

	
19.
	
Legal Fees.

 

The Corporation and the Bank will reimburse you for the attorneys’ fees you have incurred in connection with the review and negotiation of this Agreement, up to a maximum of $7,500.00 and subject to receipt of documentation evidencing the fees incurred. You will be solely responsible for any attorneys’ fees you incur that exceed $7,500.00.

 

 

 

 

 

 

Michael W. Harrington

Page 16

 

	
20.
	
Miscellaneous.

 

No provisions of this Agreement may be modified, waived or discharged unless such modification, waiver or discharge is agreed to in writing signed by you, the Corporation and the Bank. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. This Agreement embodies the entire understanding between the parties hereto and supersedes any other prior or contemporaneous, oral or written, representation or agreement by the parties hereto, with respect to the matters which are the subject of this Agreement, and no change, alteration or modification hereof may be made except in writing signed by the parties hereto.

 

	
21.
	
Severability.

 

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

 

	
22.
	
Pronouns.

 

All pronouns contained herein and any variations thereof shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as the identity of the parties hereto may require.

 

	
23.
	
Counterparts.

 

This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same Agreement.

 

	
24.
	
Captions.

 

The section and subsection captions in this Agreement are for convenience of reference only and do not define, limit or describe the scope or intent of this Agreement or any part hereof and shall not be considered in any construction hereof.

   

[Signature Page Follows]

 

 

 

 

 

 

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

 

 

	
 
	
BRYN MAWR BANK CORPORATION 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Francis J. Leto
	
 

	
 
	
Name: 
	
Francis J. Leto
	
 

	
 
	
Title:
	
President and Chief Executive Officer
	
 

 

	
 
	
THE BRYN MAWR TRUST COMPANY
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Francis J. Leto
	
 

	
 
	
Name:
	
Francis J. Leto
	
 

	
 
	
Title:
	
President and Chief Executive Officer
	
 

 

 

	
 
	 	
/s/ Michael W. Harrington
	
 

	
 
	
 
	
Michael W. Harrington

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