Document:

Exhibit 10.2

 

[Provident Bank Letterhead]

 

Anthony J. Labozzetta

[Address]

 

March 11, 2020

 

Side-Letter Agreement with Anthony
J. Labozzetta

 

Dear Mr. Labozzetta:

 

Concurrently with the
issuance of this Side-Letter Agreement, Provident Financial Services, Inc., a Delaware corporation (“PFS”),
and SB One Bancorp, a New Jersey Corporation (“SBBX”), have entered into an Agreement and Plan of Merger dated
March 11, 2020 (the “Merger Agreement”), pursuant to which SBBX will merge with and into PFS, with PFS being
the surviving entity (the “Merger”). In addition, you have entered into following agreements: (1) an employment
agreement with PFS dated March 11, 2020 (the “Provident Employment Agreement”); (2) a change in control agreement
with PFS dated March 11, 2020 (the “Provident Change in Control Agreement”); (3) a settlement agreement with
PFS, Provident Bank, a New Jersey-chartered savings bank and wholly-owned subsidiary of PFS (the “Bank” and
together with PFS, “Provident”), SBBX and SB One Bank, a New Jersey-chartered commercial bank and wholly-owned
subsidiary of SBBX, dated March 11, 2020 (copies of which are attached hereto and incorporated herein by reference), all of which,
unless otherwise provided therein, will become effective as of the consummation of the Merger.

 

In addition to the
agreements referenced above, the purpose of this Side-Letter Agreement is to confirm the understanding between Provident and you
with respect to the matters enumerated below. If the Merger Agreement or your employment with SBBX and SB One Bank terminates for
any reason before the Effective Time (as defined in the Merger Agreement) occurs, all the provisions of this Side-Letter Agreement
will terminate and there will be no liability of any kind under this Side-Letter Agreement.

 

1.                  
Subject to and conditioned upon the approval of, and appointment by, the Board of Directors of Provident, you will become
President and Chief Executive Officer of Provident by no later than January 1, 2022.

 

2.                  
If you are not appointed President and Chief Executive Officer of Provident pursuant to paragraph (1) above or you have
a qualifying termination event pursuant to Section 5(f) (Termination Without Cause or With Good Reason) during the Initial Term,
your employment with Provident will cease immediately following the expiration of the Initial Term (in the case of the failure
to be appointed President and Chief Executive Officer of Provident) or as of the Date of Termination and, in lieu of any other
payments or benefits under the Provident Employment Agreement (including pursuant to Section 5(f) thereof), Provident will pay
to you the following (collectively, the “Severance Benefits”):

 

		(i)	any Standard Termination Entitlements;

 

     

     

    

 

		(ii)	as severance pay or liquidated damages, or both, a cash lump sum payment equal to two (2) times
the sum of your: (A) annual rate of Base Salary; and (B) annual cash bonus paid to (or earned by) you with respect to the completed
fiscal year prior to your date of termination; and

 

		(iii)	continued life, medical, dental and disability coverage substantially comparable, as reasonably
or customarily available, to the coverage maintained by Provident for you prior to the date of termination, except to the extent
such coverage may be changed in its application to all Provident employees. Such coverage will cease at the end of 24 months following
your date of termination. To the extent that Provident determines, in good faith, it is not practical to provide in-kind coverage,
Provident will pay directly to the insurance carrier the premium, or reimburse you for direct out-of-pocket cost, for comparable
coverage obtained by you. Each such reimbursement payment will be made promptly on submission of an itemized account of your reimbursable
expense in such form as Provident may reasonably require and in any event not later than the last day of the calendar year following
the calendar year in which the expense was incurred. Each reimbursement payment will include an additional amount calculated by
Provident in its reasonable discretion to reflect the aggregate amount of federal, state, and local income and payroll taxes incurred
by you with respect to the reimbursement payment.

 

The Severance Benefits
will be paid, or commence, within 14 days following your date of termination or, if later, the 7th day after you execute
the Release. The Release must be executed and become irrevocable by the 60th day following your date of termination; provided that
if the 60-day period spans two (2) calendar years, then, to the extent necessary to comply with Section 409A of the Internal Revenue
Code, the payments under this paragraph will be paid, or commence, in the second calendar year. The Severance Benefits (other than
any Standard Termination Entitlements) are conditioned upon your execution of the Release.

 

3.                  
If you are appointed and become President and Chief Executive Officer of Provident as of January 1, 2022 or, if earlier,
any event described in Sections 5(a) (Death), 5(b) (Retirement), 5(c) (Disability), 5(d) (Termination for Cause), 5(e) (Voluntary
Termination by Executive) or 6 (Change in Control) of the Provident Employment Agreement has occurred, this Side-Letter Agreement
will terminate immediately and become null and void and no Severance Benefits will be payable pursuant to paragraph 2 above. For
avoidance of doubt, this paragraph (3) does not release Provident from any obligations it may have to pay you, or provide you with,
any severance benefits under the Provident Employment Agreement or the Provident Change in Control Agreement that are separate
from this Side-Letter Agreement.

 

4.                  
In the event of your termination of employment pursuant to paragraph (2), you will be subject to the non-competition and
post-termination obligations set forth in the Provident Employment Agreement.

 

5.                  
Capitalized terms not defined herein have the meaning set forth in the Provident Employment Agreement.

 

    2

     

    

 

6.                  
This Side-Letter Agreement will be governed by the laws of the State of Delaware but only to the extent not superseded by
federal law.

 

7.                  
It is intended that the payments and benefits provided under this Side-Letter Agreement shall be exempt from the application
of the requirements of Section 409A of the Internal Revenue Code and the regulations and other guidance issued thereunder (collectively,
 “Section 409A”). Specifically, any taxable benefits or payments provided under this Side-Letter Agreement are
intended to be separate payments that qualify for the “short term deferral” exception to Section 409A to the maximum
extent possible, and to the extent they do not so qualify, are intended to qualify for the separation pay exception to Section
409A, to the maximum extent possible. All other payments and benefits due to you under this Side-Letter Agreement on account your
termination of employment that are not exempt from Section 409A shall not be paid prior to, and shall, if necessary, be deferred
to and paid on the later of the earliest date on which you experience a separation from service (within the meaning of Treasury
Regulation Section 1.409A-l(h)) and, if you are a specified employee (within the meaning of Treasury Regulation Section 1.409A-l(i))
on the date of your separation from service, the first day of the seventh month following your separation from service. All such
deferred amounts shall be deposited in a grantor trust which meets the requirements of Revenue Procedure 92-65 (as amended or superseded
from time to time), the trustee of which shall be a financial institution selected by Provident with your approval (which approval
shall not be unreasonably withheld or delayed), pursuant to a trust agreement, the terms of which are approved by you (which approval
shall not be unreasonably withheld or delayed) (the “Rabbi Trust”), and payments made shall include earnings
on the investments made with the assets of the Rabbi Trust, which investments shall consist of short-term investment grade fixed
income securities or units of interest in mutual funds or other pooled investment vehicles designed to invest primarily in such
securities.

 

[Signature Page to
Follow]

 

    3

     

    

 

	 	Sincerely,
	 
	 	PROVIDENT FINANCIAL SERVICES, INC.
	 
	 	By:	/s/ Christopher Martin
	 	Name:	 Christopher Martin
	 	Title:	Chairman, President and Chief Executive Officer
	 
	 	PROVIDENT BANK
	 
	 	By:	/s/ Christopher Martin
	 	Name:	Christopher Martin
	 	Title:	 Chairman, President and Chief Executive Officer
	 
	 
	Agreed and Accepted this March 11, 2020:	 
	 
	/s/ Anthony J. Labozzetta	
	Anthony J. Labozzetta	 
	 

    4axsm_Ex413

		
			Exhibit 4.13
		

		
			DESCRIPTION OF THE REGISTRANT’S SECURITIES
		

		
			REGISTERED PURSUANT TO SECTION 12 OF THE
		

		
			SECURITIES EXCHANGE ACT OF 1934
		

		
			 
		

		
			The following description sets forth certain material terms and provisions of our securities that are registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). This description also summarizes relevant provisions of the General Corporation Law of Delaware (the “DGCL”). The following description is a summary and does not purport to be complete. It is subject to, and qualified in its entirety by reference to, the applicable provisions of the DGCL and our amended and restated certificate of incorporation (our “Certificate of Incorporation”), and our amended and restated bylaws (our “Bylaws”), each of which is incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.13 is a part. We encourage you to read our Certificate of Incorporation, our Bylaws, and the applicable provisions of the DGCL for additional information.
		

		
			 
		

		
			DESCRIPTION OF COMMON STOCK
		

		
			 
		

		
			Our Certificate of Incorporation provides the authority to issue 150,000,000 shares of common stock, par value $0.0001 per share. As December 31, 2019, there were 36,933,217 shares of common stock outstanding. Each share of our common stock has the same relative rights and is identical in all respects to each other share of our common stock. The rights, preferences and privileges of holders of our common stock are subject to the rights, preferences and privileges of the holders of shares of any series of preferred stock that we have issued or may issue in the future.
		

		
			 
		

		
			 Voting Rights
		

		
			 
		

		
			The holders of our common stock are entitled to one vote per share on any matter to be voted upon by our stockholders. Our Certificate of Incorporation does not permit cumulative voting in connection with the election of directors.
		

		
			 
		

		
			Dividends
		

		
			 
		

		
			The holders of our common stock are entitled to dividends, if any, as our board of directors may declare from time to time from funds legally available for that purpose, subject to the holders of other classes of stock, if any, at the time outstanding having prior rights as to dividends, if any.
		

		
			 
		

		
			Liquidation Rights
		

		
			 
		

		
			Upon any voluntary or involuntary liquidation, dissolution, or winding up of our affairs, the holders of our common stock are entitled to share ratably in all assets remaining after the payment of creditors, subject to any prior liquidation distribution rights of holders of other classes of stock, if any, at the time outstanding.
		

		
			 
		

		
			Miscellaneous
		

		
			 
		

		
			Holders of our common stock have no preemptive, conversion, redemption or sinking fund rights. The outstanding shares of our common stock are, and the shares of common stock to be offered hereby when issued will be, validly issued, fully paid and non-assessable.
		

		
			 
		

		
			Nasdaq Listing
		

		
			 
		

		
			Our common stock is listed on the Nasdaq Global Market under the symbol “AXSM.”
		

		
			 
		

		
			Transfer Agent and Registrar
		

		
			 
		

		
			The transfer agent and registrar for our common stock is American Stock Transfer & Trust Company, LLC.
		

		
			 
		

		
			

		 

		

		
			DESCRIPTION OF PREFERRED STOCK
		

		
			 
		

		
			Our Certificate of Incorporation authorizes the issuance of up to 10,000,000 shares of preferred stock, par value $0.0001 per share, none of which are issued and outstanding as of the date of this prospectus. We may issue, from time to time in one or more series, the terms of which may be determined at the time of issuance by our board of directors, without further action by our stockholders, shares of preferred stock and such shares may include voting rights, preferences as to dividends and liquidation, conversion rights, redemption rights and sinking fund provisions. The shares of each series of preferred stock shall have preferences, limitations and relative rights, including voting rights, identical with those of other shares of the same series and, except to the extent provided in the description of such series, of those of other series of preferred stock.
		

		
			 
		

		
			The issuance of any preferred stock could adversely affect the rights of the holders of common stock and, therefore, reduce the value of the common stock. The ability of our board of directors to issue preferred stock could discourage, delay or prevent a takeover or change in control.
		

		
			 
		

		
			The description of the terms of a particular series of preferred stock in the applicable prospectus supplement will not be complete. You should refer to the applicable certificate of designation for complete information regarding a series of preferred stock. The prospectus supplement will also contain a description of U.S. federal income tax consequences relating to the preferred stock, if material.
		

		
			 
		

		
			The terms of any particular series of preferred stock will be described in the prospectus supplement relating to that particular series of preferred stock, including, where applicable:
		

		
			 
		

			
	
			
				 ·
			

			
	
			
			the series designation, stated value and liquidation preference of such preferred stock and the number of shares offered;

			
	
			
				 ·
			

			
	
			
			the offering price;

			
	
			
				 ·
			

			
	
			
			the dividend rate or rates (or method of calculation), the date or dates from which dividends shall accrue, and whether such dividends shall be cumulative or noncumulative and, if cumulative, the dates from which dividends shall commence to cumulate;

			
	
			
				 ·
			

			
	
			
			any redemption or sinking fund provisions;

			
	
			
				 ·
			

			
	
			
			the amount that shares of such series shall be entitled to receive in the event of our liquidation, dissolution or winding-up;

			
	
			
				 ·
			

			
	
			
			the terms and conditions, if any, on which shares of such series shall be convertible or exchangeable for shares of our stock of any other class or classes, or other series of the same class;

			
	
			
				 ·
			

			
	
			
			he voting rights, if any, of shares of such series in addition to those set forth under the caption entitled, “Voting Rights” below;

			
	
			
				 ·
			

			
	
			
			the status as to reissuance or sale of shares of such series redeemed, purchased or otherwise reacquired, or surrendered to us on conversion or exchange;

			
	
			
				 ·
			

			
	
			
			e conditions and restrictions, if any, on the payment of dividends or on the making of other distributions on, or the purchase, redemption or other acquisition by us, of our common stock or of any other class of our stock ranking junior to the shares of such series as to dividends or upon liquidation (including, but not limited to, at such times as there are arrearages in the payment of dividends or sinking fund installments);

			
	
			
				 ·
			

			
	
			
			the conditions and restrictions, if any, on the creation of Company indebtedness, or on the issue of any additional stock ranking on a parity with or prior to the shares of such series as to dividends or upon liquidation; and

			
	
			
				 ·
			

			
	
			
			any additional dividend, liquidation, redemption, sinking or retirement fund and other rights, preferences, privileges, limitations and restrictions of such preferred stock.

		
			 
		

		
			Voting Rights
		

		
			 
		

		
			The General Corporation Law of Delaware, or the DGCL provides that the holders of preferred stock will have the right to vote separately as a class on any proposal involving fundamental changes in the rights of holders of that preferred stock. This right is in addition to any voting rights that may be provided for in the applicable certificate of designation.
		

		
			

		 

		

		
			 
		

		
			Transfer Agent and Registrar
		

		
			 
		

		
			The transfer agent and registrar for any series of preferred stock will be set forth in the applicable prospectus supplement.
		

		
			 
		

		
			Other
		

		
			 
		

		
			Our issuance of preferred stock could decrease the amount of earnings and assets available for distribution to the holders of common stock or could adversely affect the rights and powers, including voting rights, of the holders of common stock. The issuance of preferred stock could have the effect of decreasing the market price of our common stock.
		

		
			 
		

		
			 Delaware Law and Certain Certificate of Incorporation and Bylaws Provisions
		

		
			 
		

		
			Our Certificate of Incorporation and Bylaws contain provisions that could delay or prevent a change of control of our company or changes in our board of directors that our stockholders might consider favorable. Some of these provisions:
		

		
			 
		

			
	
			
				 ·
			

			
	
			
			Authorize the issuance of preferred stock which can be created and issued by the board of directors without prior stockholder approval, with rights senior to those of our common stock;

			
	
			
				 ·
			

			
	
			
			Provide for a classified board of directors, with each director serving a staggered three-year term;

			
	
			
				 ·
			

			
	
			
			Prohibit our stockholders from filling board vacancies, calling special stockholder meetings or taking action by written consent;

			
	
			
				 ·
			

			
	
			
			Provide for the removal of a director only with cause and by the affirmative vote of the holders of 66 2/3 % or more of the shares then entitled to vote at an election of our directors;

			
	
			
				 ·
			

			
	
			
			Require advance written notice of stockholder proposals and director nominations; and

			
	
			
				 ·
			

			
	
			
			Require any action instituted against our officers or directors in connection with their service to us to be brought in the state of Delaware.

		
			 
		

		
			In addition, we are subject to the provisions of Section 203 of the DGCL, which may prohibit certain business combinations with stockholders owning 15% or more of our outstanding voting stock. These and other provisions in our Certificate of Incorporation, Bylaws and the DGCL could make it more difficult for stockholders or potential acquirors to obtain control of our board of directors or initiate actions that are opposed by our then-current board of directors, including a merger, tender offer or proxy contest involving our company. This provision could have the effect of delaying or preventing a change of control, whether or not it is desired by or beneficial to our stockholders. Any delay or prevention of a change of control transaction or changes in our board of directors could cause the market price of our common stock to decline.
		

		
			 
		

		
			Further, our Certificate of Incorporation provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for (1) any derivative action or proceeding brought on behalf of our company, (2) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers, employees or agents to our company or our stockholders, (3) any action asserting a claim arising pursuant to any provision of the DGCL, or (4) any action asserting a claim governed by the internal affairs doctrine, in each such case subject to such Court of Chancery having personal jurisdiction over the indispensable parties named as defendants therein.
		

		
			 
		

		
			Any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock shall be deemed to have notice of and to have consented to the provisions of our Certificate of Incorporation described above. This choice of forum provision may limit a stockholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers, or other employees or agents, which may discourage such lawsuits against us and our directors, officers, employees and agents. Further, this choice of forum provision does not preclude or contract the scope of exclusive federal or concurrent jurisdiction for any actions brought under the Securities Act of 1933, as amended (the “Securities Act”) or the Exchange Act. Section 27 of the Exchange Act creates exclusive federal jurisdiction over all suits brought to enforce any duty or liability created by the Exchange 

		 

Act or the rules and regulations thereunder. As a result, the exclusive forum provision will not apply to suits brought to enforce any duty or liability created by the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction. In addition, Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability created by the Securities Act or the rules and regulations thereunder. As a result, the exclusive forum provision will not apply to suits brought to enforce any duty or liability created by the Securities Act or any other claim for which the federal and state courts have concurrent jurisdiction. Accordingly, our exclusive forum provision will not relieve us of our duties to comply with the federal securities laws and the rules and regulations thereunder, and our stockholders will not be deemed to have waived our compliance with these laws, rules and regulations.
		

		
			 
		

		
			Indemnification
		

		
			 
		

		
			Our Certificate of Incorporation contains provisions permitted under the DGCL relating to the liability of directors. The provisions eliminate, to the extent legally permissible, a director’s liability for monetary damages for a breach of fiduciary duty, except in circumstances involving wrongful acts, such as the breach of a director’s duty of loyalty or acts or omissions that involve intentional misconduct or a knowing violation of law. The limitation of liability described above does not alter the liability of our directors and officers under federal securities laws. Furthermore, our certificate of incorporation contains provisions to indemnify our directors and officers to the fullest extent permitted by the DGCL. These provisions do not limit or eliminate our right or the right of any stockholder of ours to seek non-monetary relief, such as an injunction or rescission in the event of a breach by a director or an officer of his duty of care to us. We believe that these provisions assist us in attracting and retaining qualified individuals to serve as directors.

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