Document:

Exhibit 10.8

 

SALARY CONTINUATION AGREEMENT

 

This Salary Continuation Agreement (the “Agreement”) is made this 19th
day of January 2005, by and among First Capital Bank Holding Corporation, a
Florida corporation (the “Company”), First National Bank of Nassau County,
a national bank organized under the laws of the United States (the “Bank”) (the
“Company and the Bank being referred to herein collectively as the “Employer”)
and Leo Deas, III (the “Executive”).

 

WITNESSETH

 

WHEREAS, the Bank is a national bank organized under the laws of the
United States and operating in Nassau County, Florida;

 

WHEREAS, Executive is the Executive Vice President of Employer; and

 

WHEREAS, the parties desire to enter into this agreement to provide for
certain severance payments to Executive in the event there is a Change in
Control (as defined herein) and in accordance of the terms and conditions of
this Agreement.

 

NOW, THEREFORE, in consideration of Executive’s services to Employer,
the mutual covenants contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto, intending to be legally bound, do hereby agree as follows:

 

1.            Definitions

 

a. “Cause” shall mean (A) the
commission by the Executive of a willful act (including, without limitation, a
dishonest or fraudulent act) or a grossly negligent act, or the willful or
grossly negligent omission to act by the Executive, which is intended to cause,
causes, or is reasonably likely to cause material harm to the Employer
(including harm to its business reputation); (B) the indictment of the
Executive for the commission or perpetration by the Executive of any felony or
any crime involving dishonesty, moral turpitude or fraud; (C) the material
breach by the Executive of this Agreement that, if susceptible of cure, remains
uncured 10 days following written notice to the Executive of such breach; (D)
the exhibition by the Executive of a standard of behavior within the scope of
his employment that is materially disruptive to the orderly conduct of the
Employer’s business operations (including, without limitation, substance abuse
or sexual misconduct) to a level which, in the Board of Directors’ good faith
and reasonable judgment, is materially detrimental to the Employer’s best
interest, that, if susceptible of cure, remains uncured 10 days following
written notice to the Executive of such specific inappropriate behavior; (E)
the receipt of any form of notice, written or otherwise, that any regulatory
agency having jurisdiction over the Employer intends to institute any form of
formal or informal (e.g., a memorandum of understanding which relates to
the Executive’s performance) regulatory action against the Executive or the
Employer if the Board of Directors in good faith determines that the subject
matter of such action involves acts or omissions by or under the supervision of
the Executive or that termination of the Executive would advance the Employer’s
compliance with the purpose of the action or would assist the Employer in
avoiding

 

1

 

or reducing the restrictions or
adverse effects to the Employer related to the regulatory action; or (F) the
failure of the Executive to render the services hereunder in accordance with an
appropriate performance standard determined in the sole discretion of the Board
of Directors;

 

b.              “Change in Control” shall mean the occurrence during the Term
of any of the following events, unless such event is a result of a Non-Control
Transaction:

 

(i)               The individuals
who, as of the date of this Agreement, are members of the Board of Directors of
the Company (the “Incumbent Board”)
cease for any reason to constitute at least 50% of the Board of Directors of the Company; provided, however,
that if the election, or nomination for election by the Company’s shareholders,
of any new director was approved in advance by a vote of at least 50% of the Incumbent Board, such new
director shall, for purposes of this Agreement, be considered as a member of the
Incumbent Board; provided, further, that no individual shall be
considered a member of the Incumbent Board if such individual initially assumed
office as a result of either an actual or threatened election contest, or other
actual or threatened solicitation of proxies, proxy contest, or consents by or
on behalf of any person other than the Board of Directors of the Company,
including by reason of any agreement intended to avoid or settle any election
contest or proxy contest.

 

(ii)          An
acquisition (other than directly from the Company) of any voting securities of the Company (the “Voting Securities”) by
any “Person” (as the term “person”
is used for purposes of Section 13(d) or 14(d) of the Exchange Act) immediately after which such Person has “Beneficial
Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more
of the combined voting power of the Company’s
then outstanding Voting Securities; provided,
however, that in determining whether a Change
in Control has occurred, Voting
Securities which are acquired in a Non-Control Acquisition shall not constitute an acquisition which
would cause a Change in Control.

 

(iii) Consummation of: (i) a merger, consolidation, or reorganization
involving the Company; (ii) a complete liquidation or dissolution of the
Company; or (iii) the sale or other disposition of all or substantially all of
the assets of the Company to any Person (other than a transfer to a Subsidiary).

 

(iv) A notice of an application
is filed with the Office of Comptroller of the Currency (the “OCC”)
or the Federal Reserve Board or any other bank or thrift regulatory approval (or notice of no disapproval)
is granted by the Federal Reserve, the 0CC, the Federal Deposit Insurance Corporation, or any other regulatory
authority for permission to acquire control of the Company or any of its
banking subsidiaries; provided that if
the application is filed in connection with a transaction which has been
approved by the Board, then the Change in Control shall not be deemed to occur
until consummation of the transaction.

 

c.              “Good Reason” shall mean the occurrence after a Change in
Control of any of the events or conditions described in subsections (i) through
(viii) hereof:

 

2

 

(i)           a
change in the Executive’s status, tide, position or responsibilities (including
reporting responsibilities) which, in the Executive’s reasonable judgment, represents an
adverse change from his status, title, position or responsibilities as in
effect at any time within ninety days preceding the date of a Change in Control
or at any time thereafter; the assignment to the Executive of any duties or
responsibilities which, in the Executive’s reasonable judgment, are
inconsistent with his status, title, position or responsibilities as in effect
at any time within ninety days preceding the date of a Change in Control or at
any time thereafter; any removal of the Executive from or failure to reappoint
or reelect him to any of such offices or positions, except in connection with
the termination of his employment for disability or Cause, as a result of his
death, or by the Executive other than for Good Reason, or any other change in
condition or circumstances that in the Executive’s reasonable judgment makes it
materially more difficult for the Executive to carry out the duties and
responsibilities of his office than existed at any time within ninety days
preceding the date of Change in Control or at any time thereafter;

 

(ii)          a
reduction in the Executive’s base salary or any failure to pay the Executive
any compensation or benefits to which he is entitled within 10 days of the date
due;

 

(iii) the Employer’s requiring the Executive to be based at any place
outside a 30-mile radius from the executive offices occupied by the Executive
immediately prior to the Change in Control, except for reasonably required
travel on the Employer’s business which is not materially greater than such
travel requirements prior to the Change in Control;

 

(iv) the failure by the Employer to (A) continue in effect (without
reduction in benefit level and/or reward opportunities) any material
compensation or employee benefit plan in which the Executive was participating
at any time within 90 days preceding the date of a Change in Control or at any
time thereafter, unless such plan is replaced with a plan that provides
substantially equivalent compensation or benefits to the Executive, or (B)
provide the Executive with compensation and benefits, in the aggregate, at
least equal (in terms of benefit levels and/or reward opportunities) to those
provided for under each other employee benefit plan, program and practice in which the Executive
was participating at any time within 90 days preceding the date of a Change in
Control or at any time thereafter;

 

3

 

(v) the insolvency or the filing (by any
party, including the Company or the Employer) of a petition for bankruptcy of
the Company or the Employer, which petition is not dismissed within 60 days;

 

(vi) any material breach by the Employer of any material provision of
this Agreement;

 

(vii) any purported termination of the Executive’s employment for Cause
by the Employer which does not comply with the terms of this Agreement; or

 

(viii) the failure of the Employer to obtain an agreement, satisfactory
to the Executive, from any successor or assign to assume and agree to perform
this Agreement, as contemplated in Section 4 hereof.

 

Any event or condition described in clause (i) through (viii) above
which occurs prior to a Change in Control but which the Executive reasonably
demonstrates (A) was at the request of a third party, or (B) otherwise arose in
connection with, or in anticipation of, a Change in Control which actually
occurs, shall constitute Good Reason for purposes of this Agreement,
notwithstanding that it occurred prior to the Change in Control. The Executive’s
right to terminate his employment for Good Reason shall not be affected by his
incapacity due to physical or mental illness.

 

d.   “Non-Control Transaction” shall mean a transaction described
below:

 

(i)           the
shareholders of the Company, immediately before such merger, consolidation or
reorganization, own, directly or indirectly, immediately following such merger,
consolidation or reorganization, at least 50% of the combined voting power of
the outstanding voting securities of the corporation resulting from such
merger, consolidation or reorganization (the “Surviving Corporation”) in
substantially the same proportion as their ownership of the Voting Securities
immediately before such merger, consolidation or reorganization; and

 

(ii)          immediately
following such merger, consolidation or reorganization, the number of directors
on the board of directors of the Surviving Corporation who were members of the
Incumbent Board shall at least equal the number of directors who were
affiliated with or appointed by the other party to the merger, consolidation or
reorganization.

 

e.              “Notice of Termination” shall mean a written notice of
termination from the Employer or the Executive which specifies an effective
date of termination, indicates the specific termination provision in this
Agreement relied upon, and, in the case of a termination for Good Reason or for
Cause, sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive’s employment under the
provision so indicated.

 

4

 

2.            Payments
to Executive,

 

If Executive’s employment is terminated (a) Upon a Change in Control,
for any reason upon delivery of notice to the Employer within a 12 month period
after the occurrence of a Change in Control; (b) for Good Reason pursuant to
Section l(c)(iv); or (c) if the Employer terminates the Executive Without Cause
after a Change in Control, then, in addition to other rights and remedies
available in law or equity, the Executive shall be entitled to the following
(i) the Employer shall pay the Executive in cash within 15 days of such
termination date any sums due him as base salary and/or reimbursement of
expenses through the date of such termination, plus any bonus earned or accrued
under the Bonus Plan through the date of termination (including any amounts
awarded for previous years but which were not yet vested) and a pro  rata
share of any bonus with respect to the current fiscal year which had been
earned as of the date of the Executive’s termination (and any forfeiture in
other restrictive provisions applicable to each award shall not apply); and
(ii) the Employer shall pay the Executive in cash within 15 days of such
termination date one lump sum payment in an amount equal to the sum of (1) the
Executive’s then current annual base salary, and (2) the average bonuses paid
to Executive during the three preceding fiscal years.

 

3.            Governing
Law; Jurisdiction and Venue.

 

This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Florida without giving effect to the
conflict of laws principles thereof. The parties agree to the exclusive
jurisdiction and venue of the federal courts sitting in Nassau County, Florida
with regard to any actions that arise out of this Agreement.

 

4.            Successors;
Binding Agreement.

 

This Agreement shall be binding upon and shall inure to the benefit of
Employer and its successors and assigns. Neither this Agreement nor any right
or interest hereunder shall be assignable or transferable by Executive, his
beneficiaries or legal representatives, except by will or by the laws of
descent and distribution. This Agreement shall inure to the benefit of and be
enforceable by Executive’s legal personal representative.

 

5.            Entire
Agreement.

 

This Agreement constitutes the entire agreement between the parties
hereto and supersedes all prior agreements, if any, understandings and
arrangements, oral or written, between the parties hereto with respect to the
subject matter hereof.

 

6.            Counterparts.

 

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

 

5

 

	
   

  	
  EMPLOYER

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FIRST
  CAPITAL BANK

  	
   

  
	
   

  	
  HOLDING
  CORPORATION, a

  	
   

  
	
   

  	
  Florida
  corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Suellen E. Garner

  	
   

  
	
   

  	
   

  	
  Name:
  Suellen E. Garner

  	
   

  
	
   

  	
   

  	
  Title:
  Chairman

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  FIRST
  NATIONAL BANK OF

  	
   

  
	
   

  	
  NASSAU
  COUNTY

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Michael G. Sanchez

  	
   

  
	
   

  	
   

  	
  Name:
  Michael G. Sanchez

  	
   

  
	
   

  	
   

  	
  Title: President
  & CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   /s/
  Leo Deas, III

  	
   

  	
   

  
	
   

  	
  Name: Leo
  Deas, III

  	
   

  
						

 

6Exhibit 10.64

 

 

December
22, 2004

 

 

Mr.
Joseph P. Dwyer

3
Cordwood Court

East
Northport, NY  11731

 

Dear
Joe:

 

This letter is to confirm our offer of
employment to you under the following terms and conditions to join AXS-One Inc.
(“the Company”) as its Executive Vice President and Chief Financial Officer,
reporting directly to me, based out of our Rutherford, NJ office, starting
employment on or before December 31, 2004.

 

Salary:  Starting salary will be $10,416.66
semi-monthly, paid on the 15th and last business day of each month, which
equates to 24 pay periods.

 

Bonus:  You will be eligible for a target bonus in
2005 of $100,000 for achievement of 100% of your target objectives (“Target
Bonus”). These targets will be finalized within two weeks of your start date.  (Attached as Exhibit A and B
is 2004’s bonus formula as an example). 
Such bonus will be paid promptly following the computation of the
relevant 2005 year-end financial metrics and at the same time that annual bonus
payments are made to the other senior offices of the Company.  During subsequent years, your Target Bonus
and bonus program(s) shall be agreed upon between you and the Company (and
approved by the Compensation Committee of its Board of Directors), and both
parties will use their best efforts to agree on such program(s) prior to
January 31 of said year; provided, that if you and the Company are unable to
reach agreement before March 31 of any calendar year, then the bonus program(s)
in effect for the immediately preceding calendar year (adjusted only to ensure
that you have a comparable ability to earn bonuses as under the preceding
calendar year’s program(s)) shall also govern the current calendar year.

 

Signing Bonus:
 You will be granted a $50,000 signing bonus as
an inducement to accept employment with the Company and as a replacement for
other amounts potentially waived from previous employment.  This will be paid to you within 15 days of
your commencement of employment.

 

Stock Options:  You will be awarded a stock
option grant of 300,000 shares of the Company’s common stock (“Stock Options”),
and such options will have an exercise price equal to the closing market price
on January 3, 2005.  The options will be
granted pursuant to the terms and conditions of the AXS-One Stock Option Plan
with vesting to occur over a four year period, with 25% vesting each year on
the anniversary of the date of grant.  In
addition, you will be granted 25,000 restricted shares of the Company’s common
stock (“Restricted Stock”), pursuant to the

 

 

Company’s
Stock Option Plan, within two weeks of your start date, to be valued on the
date of grant at fair market value for tax purposes.  Such Restricted Stock will cliff vest in 5
years and will be subject to accelerated vesting based on specific objectives
to be approved prior to the grant by the Compensation Committee.  You must be an active employee to vest these
shares or the acceleration conditions must have been met or the Change of
Control provisions must have been triggered.

 

Change of Control:  Upon the occurrence of a
Change of Control of the Company, all Stock Options and Restricted Stock then
granted to you which are unvested at the time of the Change of Control will be
immediately vested and you shall have a period of 12 months to exercise such Stock
Options.

 

As
used herein, a “Change of Control” of the Company shall be deemed to have
occurred:

 

(i)            Upon any person or group (within the meaning
of applicable securities laws) acquiring or having beneficial ownership of more
than 30% of the voting power (including voting power exercisable on a
contingent or deferred basis as well as immediately exercisable voting power)
of the Company (excluding only any person or group having a greater than 30%
beneficial ownership as of the Commencement Date), whether as a result of a
tender offer or otherwise; or

 

(ii)           Upon consummation of a merger or
consolidation in which the Company or an affiliate of the Company is a
constituent corporation and in which the Company’s stockholders immediately
prior thereto will beneficially own, immediately thereafter, securities of the
Company or any surviving or new corporation resulting there from having less
than a majority of the voting power of the Company or any such surviving or new
corporation; or

 

(iii)          Upon the consummation of a sale, lease,
exchange or other transfer or disposition by the Company of all or
substantially all of its assets to any person or group or related persons.

 

Commuting/Accommodations: Given the fact that you will need to work out of the Rutherford, NJ
office, the Company will reimburse you for the cost of your accommodations
during the week if you need to stay in New Jersey.  You will also be given a car allowance of
$750.00 per month for automobile expenses.

 

2

 

Severance Package:  If, at any time, the Company
terminates your employment for any reason other than for cause, the Company
will pay you a severance benefit equal to 3 months of your base salary payable
in 6 semi-monthly installments.  The Company
will continue to provide you with employee benefit coverage during the
severance period.  Additionally, you will
be entitled to receive any earned but unpaid salary and any unreimbursed
business expenses.  For the purposes of
this letter, “Cause” shall mean a termination of employment by the Company for
any of the following reasons that remains uncured (if curable) for 10 days
after your receipt of written notice thereof: 
(1) gross misconduct or gross neglect of duties related to the Company;
(ii) fraud, embezzlement, or misappropriation of any property or proprietary
information of the Company by you; (iii) your conviction of, or plea of nolo
contendere to, a felony or other crime involving morale turpitude (other than
as a result of a traffic violation); or (vi) a material breach by you of any
provision of this letter or any other material breach of any agreement entered
into with the Company.  “Cause” shall not
include the failure to obtain the objective metrics set forth in the Company’s
business plans.  If your employment is
terminated by the Company for Cause, you shall not be entitled to receive any
severance benefits, provided that you shall receive any amount of base salary
earned but unpaid, through the date of your termination and any unreimbursed
business expenses.

 

Benefits:  During your employment with the Company, you
will be entitled to receive all such benefits and perquisites as are routinely
provided to other comparable senior executives of the Company.  The Company reserves the right to modify,
amend or terminate any such benefits at any time for any reason (provided such
modification, amendment or termination is applicable to all executives
receiving such benefits) but shall, in any case, provide reasonable health and
disability benefits to Executive while Executive is a full-time employee of the
Company.

 

Employment:  AXS-One is an equal opportunity
employer.  In addition, it is understood
that your employment is “at will”, as defined under the laws of New Jersey, and
thus such employment can be terminated with or without cause, at the option of
either party.

 

Confidentiality:  You agree that any confidential
information that becomes available to you in the course of employment is the
sole property of the Company and shall not be used by you for any purpose other
than fulfilling your position’s objectives. 
This applies while an active or inactive employee.  A partial list of items
covered by confidentiality include:

 

	
  •      Employee
  Lists

  	
   

  	
  •      Technical
  Product Knowledge

  
	
  •      Customer
  Lists

  	
   

  	
  •      Confidential
  Financial Data

  
	
  •      Prospect
  Lists

  	
   

  	
  •      Product
  Price Lists

  
	
  •      Product
  Materials

  	
   

  	
  •      Sales/Marketing
  Strategy

  

 

3

 

The above information and any other
confidential material will remain confidential for a period of two years after
employment at the Company, except for customer lists and possible other
technical data, which remains confidential indefinitely, unless the Company
makes it available to the public.

 

Please
countersign this offer of employment and Non-Disclosure Agreement and return
the originals to me to officially indicate your acceptance.

 

This
offer is contingent upon your review and acceptance of this offer letter, on or
before December 31, 2004 and the execution of our Non-Disclosure Agreement.

 

Sincerely,

 

	
  /s/ Bill Lyons

  	
   

  	
   

  
	
   

  	
   

  
	
  Bill
  Lyons

  	
   

  
	
  Chairman
  & Chief Executive Officer

  	
   

  

 

 

	
   

  	
  I
  ACCEPT:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/
  J.P. Dwyer

  	
   

  	
  12/31/04

  	
   

  	
   

  
	
   

  	
  Joseph
  P. Dwyer

  	
  Date

  	
   

  
						

 

 

Enclosures

 

4

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