Document:

exv10w3

 

EXHIBIT 10.3

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

     THIS FIRST AMENDMENT TO EMPLOYMENT AGREEMENT between
RELIANCE BANK (herein the “Employer”) and JERRY S. VON ROHR (herein
the “Executive”) is made and entered into as of this 1st day of
September, 2001.

     WHEREAS, Reliance Bancshares Inc. has heretofore assigned the Employment Agreement of
Executive to Reliance Bank which is now the Employer under said Agreement; and

     WHEREAS, the parties wish to extend said Agreement on the terms and conditions described
herein.

     NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto
agree to amend said Agreement as follows:

     1. 
Paragraph 3 (a) of the Employment Agreement is amended in its entirety to read as
follows:

     (a) Term of Employment. Effective September 1, 2001 the
period of Executive’s employment under this Agreement shall continue for a period of
thirty-six (36) full calendar months thereafter. Commencing September 1, 2002, this
Agreement shall continue for consecutive three (3) year periods unless either party
terminates the same by giving written notice to the other not less than sixty (60)
days before September 1, each year. If notice of termination is given as aforesaid,
this Agreement shall continue for the balance of the term herein provided and then
will terminate at the end thereof. In the event that a change in control occurs with
respect to either Reliance Bancshares, Inc. or Reliance Bank, this Agreement may be
terminated by either party giving six (6) months written notice to the other and all
rights and duties hereunder shall terminate at the end of said notice period.
The term “change in control” shall mean any
merger, consolidation, plan of reorganization or liquidation or the sale or transfer
of substantially all of the assets of Reliance Bank or Reliance Bancshares, Inc. or
the sale, transfer or other disposition of a majority of the voting shares of either
of said corporations.

     2. All other terms and provisions of said Employment Agreement as amended hereby are
ratified and affirmed and remain in full force and effect.

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

	 	 	 	 	 	 	 	 	 	 	 
	Executive:	 	 	 	Employer: RELIANCE BANK	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jerry S. Von Rohr
	 	 	 	By:
	 	/s/ Fortis M. Lawder	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Jerry S. Von Rohr
	 	 	 	 	 	Secretaryexv10w4

 

			
	
	 	EXHIBIT 10.4
	 	 	 

11781
Man chester Road

Des Peres, MO 63131

Tel: 314.965.5300

Fax: 314.965.0321

March 21, 2005

Mr. Dale E. Oberkfell
 1188
Moorlands Drive 

St. Louis,
Missouri 63117

	 	 	 
	Re:

	 	Your Employment by
Reliance Bancshares, Inc. and Reliance Bank

     Dear Dale:

     The purpose of this letter is to set forth the terms and conditions of
your employment by Reliance Bancshares, Inc. (“Reliance”) and Reliance Bank,
which is a wholly-owned subsidiary of Reliance (the “Bank”). We look forward
to your joining the Reliance organization.

	 	1.	 	Position. You will serve as Executive Vice
President of Reliance and as President and Chief Operating
Officer of the Bank. In these positions, you will report to me as
Chairman and Chief Executive Officer and to the Board of
Directors of Reliance or the Bank, as the case may be. You will
also be appointed or elected and will serve as a director of the
Bank. You also agree to serve as an officer and/or director of
any other subsidiary or affiliate of Reliance.
	 
	 	2.	 	Employment Term. The term of your employment
will commence on or about May 1, 2005 and will continue until
terminated by you or by the Boards of Directors of Reliance and
the Bank.
	 
	 	3.	 	Base Salary. Your initial base salary will be
$188,000 per annum, payable in monthly or more frequent
installments in accordance with Reliance’s usual payroll practices
for senior executive officers, less such amounts as are required
to be withheld by law. Your salary will be subject to review from
time to time by the Board of Directors of Reliance. It is
understood that all or a substantial part of your salary

What You Need From a Bank.
sm

 

 

Mr. Dale E.
Oberkfell

Page - 2 -

March 21, 2005

	 	 	 	will be paid by the Bank, where you will expend the majority of your efforts.
	 
	 	4.	 	Bonuses. You will be eligible for a bonus with respect to each fiscal year
of Reliance commencing with the fiscal year ended December 31, 2005. Initially, this
bonus will be up to $25,000 for each fiscal year, as determined by the Board of
Directors of Reliance, prorated for the fiscal first year.
	 
	 	5.	 	Stock Options. You will be granted options to purchase up to 20,000 shares
of Class A Common Stock, $0.50 par value, of Reliance, effective upon the
commencement of your employment. The option price will be the fair market value per
share on the date of grant, as determined by the Board of Directors of Reliance, and
the options will be granted pursuant to and be governed by the same stock option plan
as is applicable to other senior executive officers of Reliance.
	 
	 	 	 	Also, you will be granted the option to purchase up to 30,000 shares of Class A
Common Stock of Reliance effective upon the commencement of your employment. The
option price for these 30,000 shares will be $20.00 per share and they will be
granted pursuant to the aforesaid stock option plan.
	 
	 	 	 	In addition to the foregoing, you will be granted options to purchase shares of
Class A Common Stock of Reliance at each of the times or occurrences listed below,
at fair market value per share on the date of the grant, as determined by the Board
of Directors of Reliance:

	 	 	 	 	 
	Time or Occurrence	 	Number of Shares
	Beginning of Third Year of Employment -
	 	 	10,000	 
	When Reliance has Consolidated
	 	 	 	 
	Assets in Excess of $1.0 Billion -
	 	 	10,000	 

	 	 	 	It is understood and agreed that upon termination of your employment by Reliance
without Case or termination by you for Good Reason or by reason of your death or
your Long-Term Disability (as the capitalized terms are defined in
Exhibit A
attached), all outstanding options will become 100 percent vested and exercisable
for a period of not less than 90 days following such termination of your employment.

 

 

Mr. Dale E. Oberkfell

Page - 3 -

March 21, 2005

	 	6.	 	Fringe Benefits. You will be entitled to the same fringe benefits, including
without limitation life insurance, health insurance for you and your eligible family
members, and disability insurance as are provided to other senior executive officers
of Reliance.
	 
	 	7.	 	Vacation. You will be entitled to four weeks of vacation during each fiscal
year of the corporation (the first year to be prorated) in accordance with Reliance’s
usual vacation policies applicable to senior executive officers.
	 
	 	8.	 	Business Expenses. You will be reimbursed for expenses incurred by you in
connection with your duties in accordance with Reliance’s usual polices applicable to
senior executive officers.
	 
	 	9.	 	Change in Control. In the event that a Change in Control (as defined in
Exhibit A attached) shall occur during the first two (2) years of your employment and
you are not retained under and employment agreement lasting at least 18 months as an
employee of the acquiring party in a comparable position at your then current
compensation and level of fringe benefits, you will be entitled to receive from
Reliance a lump sum payment equal to the lesser of (i) 2.99 times your average annual
compensation for the period of your employment or (ii) the maximum amount that
Reliance and the Bank can pay to you without the payment being subject to the
imposition of any additional tax under Section 280G of the Internal Revenue Code, or
such successor provisions as may then be in effect. If there is a Change in Control
during the third year of your employment and you are not retained as aforesaid, then
you will be entitled to receive from Reliance a lump sum payment equal to the lesser
of (i) 1.5 times your average annual compensation or (ii) the maximum amount as stated
above.
	 
	 	10.	 	Termination of Employment. Reliance may terminate your employment at any
time upon giving you at least 30 days prior written notice. In the event that your
employment is terminated for Cause (as defined in Exhibit A attached) you will be
entitled to continued compensation through the end of the 30-day notice period, after
which your compensation and fringe benefits will cease. In the event that your
employment is terminated by reason of your death or the commencement of a Long-Term
Disability (as defined in Exhibit A attached) your compensation and fringe benefits
(other than the right

 

 

Mr. Dale E.
Oberkfell 
Page - 4 -

March 21, 2005

	 	 	 	to receive life insurance or disability insurance proceeds, if any) will cease upon
the occurrence of such event.
	 
	 	 	 	In the event that your employment (i) is terminated by Reliance without Cause or (ii)
you terminate your employment for Good Reason (as defined in Exhibit A attached), you
will be entitled to receive from Reliance a lump sum payment equal to the Severance
Payment described below. The Severance Payment will be equal to one of the following
multiples (as applicable) of the aggregate compensation received by you from Reliance
and Reliance Bank during the 12-month period preceding the termination of your
employment: (a) if the termination occurs less than one year after your employment
hereunder commences, the multiplier is 2.99; (b) if the termination occurs one year
or more but less than two years after your employment hereunder commences, the
multiplier is 2.0; (c) if the termination occurs two years or more but less than
three years after your employment hereunder commences, the multiplier is 1.5; (d) if
the termination occurs more than three years but less than five years after your
employments commences, the multiplier is 1.0; and (e) if the termination occurs five
years or more after your employment commences, there shall be no Severance Payment.
Severance Payments are not to be made in addition to Change in Control payments.
	 
	 	11.	 	Noncompete and Confidential Information. During the term of
your employment with Reliance and the Bank, and for a period of one year following
termination of your employment (either by resignation or termination for Cause), you
will not directly or indirectly compete with the commercial bank business of
Reliance or the Bank and its successors or assigns, except this provision will
terminate in the event of a Change in Control. This prohibition is for a 25 mile
radius from the headquarters of Reliance in St. Louis County, Missouri. In addition,
you agree for said period not to directly or indirectly contact, solicit or promote
any bank-related service to any customer, person or company doing business with
Reliance or the Bank and you will not solicit, induce or attempt to induce any of
their officers or employees to terminate his or her employment with either of them.
Finally, you agree that your access to trade secrets, customer’s lists, confidential
customer information, including loans, and access to computer data and information
will remain confidential and you will not use such information on your own behalf or
for your own benefit or disclose the same to any third party during your employment
or at any time thereafter.
	 
	 	12.	 	General Provisions. Our contractual arrangements concerning your employment
shall be construed in accordance with the internal laws of the State of Missouri. All
notices shall be in writing. Any changes to

 

 

Mr. Dale E. Oberkfell

Page - 5 -

March 21, 2005

	 	 	 	the arrangements set forth herein must be in writing and signed by you, Reliance,
and the Bank in order to be effective. This is the entire agreement between the
parties concerning the subject matter hereof.

     If the foregoing arrangements are satisfactory to you, please execute four originals of this
letter and return two of them to me.

	 	 	 	 	 	 	 
	 	 	RELIANCE BANCSHARES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Jerry S. Von Rohr	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Jerry S. Von Rohr	 	 
	 

	 	 	 	Chairman and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	RELIANCE BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Jerry S. Von Rohr	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Jerry S. Von Rohr	 	 
	 

	 	 	 	Chairman and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Dale E. Oberkfell	 	 
	 	 	 	 	 
	 	 	DALE E. OBERKFELL	 	 

 

 

EXHIBIT A

     This comprises Exhibit A to a letter agreement concerning the employment of Dale E. Oberkfell
by Reliance Bancshares, Inc. and Reliance Bank.

     As used in the letter agreement to which this Exhibit A is attached, the following definitions
shall apply.

Definition of “Cause”

     The term “Cause” with respect to an employee shall mean: (i) the employee is engaged in
contact that is materially damaging or detrimental to Reliance or the Bank; or (ii) the employee
has acted with personal dishonesty in connection with the performance of his duties as an employee
of Reliance or the Bank or has breached his fiduciary duty to Reliance or the Bank; or (iii) the
employee has willfully violated any law, rule, or regulation (other than routine traffic violations
or similar offenses), which is materially damaging or detrimental to Reliance or the Bank; or (iv)
the employee is convicted, or enters a plea of guilty or no contest to, a felony or to any other
crime involving moral turpitude or engages in actions which subject him to discipline by banking
industry regulators; or (v) the employee is found to have prohibited or regulated substances in his
system or is impaired by alcohol while engaged in the performance of work for Reliance or the Bank.
For purposes of defining Cause, no act, or failure to act, on an employee’s part shall be
considered “willful” unless done, or omitted to be done, by the employee not in good faith and
without reasonable belief that the act or omission was in the best interests of Reliance or the
Bank.

Definition of “Change in
Control”

     (a) A “Change in Control” shall be deemed to have occurred if: (i) any person (other than
Reliance, or any entity owned directly or indirectly by the shareholders of Reliance in
substantially the same proportions as their ownership of voting securities of Reliance), becomes
the beneficial owner, directly or indirectly, of securities of Reliance representing 50 percent or
more of the combined voting power of Reliance’s then outstanding voting securities; or (ii) if
Reliance then has a classified Board of Directors, during any period of 24 consecutive months (or
the time period between any three annual meetings of the shareholders where directors are elected,
if longer), individuals who at the beginning of such period constitute the Board of Directors of
Reliance, plus any new director (other than a director designated by a person who has entered into
an agreement with Reliance to effect a transaction described in clause (i), (iv), or (v) of this
subsection) whose appointment by the Board of Directors or whose nomination for election by
Reliance’s shareholders was approved by a vote of at

 

 

least two-thirds (2/3) of the directors then still in office who either were directors at the
beginning of the period or whose election or nomination for election was previously so approved,
cease for any reason to constitute at least a majority of the Board of Directors of Reliance or,
(iii) if Reliance does not then have a classified Board of Directors, during any period of 12
consecutive months (or the time period between any two annual meetings of the shareholders where
directors are elected, if longer), individuals who at the beginning of such period constitute the
Board of Directors of Reliance, plus any new director (other than a director designated by a person
who has entered into an agreement with Reliance to effect a transaction described in clause (i),
(iv), or (v) of this subsection) whose appointment by the Board of Directors or whose nomination
for election by Reliance’s shareholders was approved by a vote of at least a majority of the
directors still in office who either were directors at the beginning of the period or whose
election or nomination for election was previously so approved, cease for any reason to constitute
at least a majority of the Board of Directors of Reliance; or (iv) Reliance consummates a merger or
consolidation of Reliance with any other entity, other than (a) a merger or consolidation which
would result in the voting securities of Reliance outstanding immediately prior thereto continuing
to represent (either by remaining outstanding or by being converted into voting securities of the
surviving entity) more than 50 percent of the combined voting power of the voting securities of
Reliance or such surviving entity outstanding immediately after such merger or consolidation or (b)
a merger or consolidation effected to implement a recapitalization of Reliance or similar
transaction in which no person acquires more than 50 percent of the combined voting power of
Reliance’s then outstanding voting securities; or (v) the shareholders of Reliance approve a plan
of complete liquidation of Reliance or an agreement for the sale or disposition by Reliance of all
or substantially all of Reliance’s assets.

     Notwithstanding the foregoing, a Change in Control of Reliance shall not include any of the
following:

     (i) A public stock offering; or

     (ii) A sale of an equity interest in Reliance to a group of investors which includes
material direct or indirect ownership by members of management of Reliance at the time of
such purchase; or

     (iii) Any acquisition of an equity interest in Reliance by an employee benefit plan
sponsored or maintained by Reliance; or

     (iv) Any event that the Board of Directors of Reliance determines shall not be
considered a Change in Control because such event was approved by such Board of Directors
prior to its occurrence; provided, however, that a determination under this subsection
shall be effective only

 

 

if made by the Board of Directors prior to the occurrence of the event that would otherwise
be a Change in Control or after such event if a majority of the Board of Directors is then
comprised of persons who were directors immediately prior to the event that would otherwise
constitute a Change in Control.

Definition of Good Reason

     An employee shall be deemed to have “Good Reason” to terminate his employment with Reliance
in the event that: (i) the employee’s base salary was reduced by more than 10 percent, unless the
employee consents in writing to such change; or (ii) the employee’s participation in bonus or
benefits plans maintained by Reliance is materially reduced, other than due to modification or
elimination of such bonus or benefit plans as to senior executive employees generally; or (iii)
without the employee’s consent, the employee is required to relocate his primary place of business
to a location that is greater than 25 miles from Reliance’s principal executive offices, or
greater than 25 miles from the employee’s regular place of employment by Reliance immediately
prior to the change (if other than Reliance’s principal executive offices; or (iv) without the
employee’s consent, there occurs a material diminution in the employee’s overall duties,
responsibilities, title, and status with Reliance.

Definition of Long-Term Disability

     An employee shall be deemed to have commenced a “Long-Term Disability” if (i) the employee
cannot perform the essential functions of his employment position, with or without a reasonable
accommodation for his disability, or (ii) the employee cannot perform the essential functions of
his employment position without an accommodation that would be an undue hardship for Reliance to
provide, in either case by reason of physical or mental impairment, which condition is expected to
continue for a period of at least six months. The foregoing definition of Long-Term Disability is
not intended to and shall not affect the definition of “Disability” or any similar or related term
in any insurance policy Reliance may provide.

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