Document:

Southern Connecticut Bancorp, Inc. 8-K

Exhibit 10.2

 

 

EMPLOYMENT
AGREEMENT 

 

This Agreement is made and entered into
effective as of the first day of January, 2013 by and between SOUTHERN CONNECTICUT BANCORP, INC.
and its subsidiary, THE BANK OF SOUTHERN CONNECTICUT, having its principal place of business in New Haven, Connecticut (hereinafter
referred to as the “Employer”) and Stephen V. Ciancarelli, residing in Smithtown, New York (hereinafter referred to
as the “Employee”).

 

W I T N E S S E T H

WHEREAS, the Employee is experienced in
the financial oversight of a financial services company; and

WHEREAS, the Employer desires to secure
the services of the Employee on the terms herein set forth; and

WHEREAS, the Employee is willing to enter
into this Agreement on said terms;

NOW, THEREFORE, in consideration of the
promises and the mutual covenants herein contained, the parties hereto, intending to be legally bound, do hereby mutually covenant
and agree as follows:

 

1. Employment: The Employer agrees
to employ the Employee as Senior Vice President and Chief Financial Officer of the Employer beginning January 1, 2013, for the
Term of Employment as defined in Section 2, and the Employee accepts said employment and agrees to serve in such capacity upon
the terms and conditions hereinafter set forth.

 

2. Term of Employment: The Term
of Employment shall commence on January 1, 2013, and end on December 31, 2013. Notwithstanding the foregoing, the Term of Employment
shall end if sooner terminated as provided in Section 5.

    	 

    	 

    
 

SOUTHERN CONNECTICUT BANCORP, INC.

THE BANK OF SOUTHERN CONNECTICUT

Employment Agreement with Stephen V. Ciancarelli - January 2013

Page 2 of 9

 

 

3. Duties of Employment: The Employee
agrees that, so long as he shall be employed by the Employer, the Employee shall perform all duties assigned or delegated to him
under the By-laws of the Employer and/or from time to time by the independent Board of Directors of the Employer consistent with
his position as Senior Vice President and Chief Financial Officer. The Employee shall be responsible for and perform all acts and
services customarily associated with such position, devoting his full time, best efforts and attention to the advancement of the
interests and business of the Employer. The Employee shall not be engaged in or concerned with any other duties or pursuits which
are competitive or inconsistent with the interests and business of the Employer. 

 

4. Compensation: During the Term
of Employment, the Employer shall pay to the Employee as compensation for the services to be rendered by him hereunder the following:

 

(a) The Employer shall pay to the Employee
a base salary at the annual rate of  ONE HUNDRED SIXTY FIVE THOUSAND DOLLARS ($165,000.00). Such
compensation shall be payable in accordance with normal payroll practices of the Employer.

 

(b) In addition to the base salary set
forth in (a) above, the Employee shall be entitled to salary increases and other such merit bonuses reflecting job performance
achievements, and/or such other form(s) of merit compensation, as the independent Board of Directors of the Employer may in its
discretion determine at the end of each calendar year(s) during the Term of Employment. The independent Board of Directors may
establish one or more individual or corporate goals for each year, the achievement of which may be made a condition to the payment
of any additional compensation to the Employee. Such goals shall be communicated to the Employee and shall be stated to be a condition
to the payment of such additional compensation to the Employee.

    	 

    	 

    
 

SOUTHERN CONNECTICUT BANCORP, INC.

THE BANK OF SOUTHERN CONNECTICUT

Employment Agreement with Stephen V. Ciancarelli - January 2013

Page 3 of 9

 

(c) At the end of each month during the
Term of Employment, the Employer shall reimburse the Employee for approved reasonable business
related travel and entertainment expenses, bank related education, other ordinary business expenses and convention expenses incurred
by Employee in the course of performing his duties for the Employer hereunder. Such reimbursement will be made within 30 days after
submission of appropriate documentation.

 

(d) The Employer shall provide group life
insurance, comprehensive health insurance and Major Medical coverage for the Employee comparable to such coverage provided for
officers of the Employer generally. The Employee shall be eligible to participate in any profit sharing plan or Section 401(k)
plan of the Employer in accordance with the terms thereof.

 

5. Termination of Employment.

(a) The Employer shall have the right
to terminate this Agreement upon the occurrence of any one of the following events: 

		(1)	The Employee’s conviction of a felony or any other crime involving the Employee’s morals or honesty;

 

		(2)	Dereliction in the performance of the Employee’s duties hereunder;

 

		(3)	Failure of the Employee to adhere to the policies set forth by the Board of Directors of the Employer;

 

		(4)	Failure of the Employee to qualify for a bond;

 

		(5)	Death, total disability, or drug abuse or alcoholism, which prevents the Employee from performing his functions under this
Agreement; or

 

		(6)	Material non-compliance with the objectives and goals of the position as mutually agreed upon between the Employer and Employee.

    	 

    	 

    
SOUTHERN CONNECTICUT BANCORP, INC.

THE BANK OF SOUTHERN CONNECTICUT

Employment Agreement with Stephen V. Ciancarelli - January 2013

Page 4 of 9

 

 

(b) Should the Employer enter into a “Business
Combination” during the Term of Employment, the entity remaining after the “Business Combination” occurs shall
pay the Employee a lump sum payment in an amount equal to the total of the Employee’s then current base annual salary in
the event that (i) the Employee separates from service with the Employer (or its successor) as a result of his not having been
offered the same position with the remaining entity at the Employee’s then current base annual salary (but only if the Employee
had first given the Employer (or its successor) written notice of his intent to terminate employment for this reason and a reasonable
opportunity to remedy the situation) (ii) the Employee determines in his sole discretion that the position offered with the successor
is inconsistent with his current position, including any diminution in title, authority, duties or responsibilities or the Employee's
office is relocated to a location more than twenty-five (25) miles from its location as of the date of this Agreement, he can then
terminate his employment as a result thereof (but only if the Employee had first given the Employer (or its successor) written
notice of his intent to terminate employment for this reason and a reasonable opportunity to remedy the situation); or (iii) the
Employee is terminated, other than a termination under subparagraph 5 (a), within two years following a “Business Combination.”
Any such payment will be made no later than twenty days following such termination of employment. In either
event, such payment shall be in addition to any compensation otherwise due the Employee under any other provision of this
Agreement. As a condition of the closing or acquisition of stock resulting in a “Business Combination,” the entity
remaining shall agree in writing to honor and comply with this paragraph 5(b). A “Business Combination” for purposes
of this Agreement shall be defined as the sale by the Employer of all or substantially all of its assets, the acquisition of fifty-one
(51%) of the Employer’s outstanding voting stock, or the merger of the Employer with another corporation as a result of which
the Employer is not the surviving entity.

    	 

    	 

    
SOUTHERN CONNECTICUT BANCORP, INC.

THE BANK OF SOUTHERN CONNECTICUT

Employment Agreement with Stephen V. Ciancarelli - January 2013

Page 5 of 9

 

 

(c) Notwithstanding anything to the contrary,
Bancorp, Bank and Employee agree that any payments to Employee pursuant to this Agreement which would constitute a “golden
parachute payment” pursuant to 12 C.F.R. Part 359 or the Supervisory Guidance contained in Financial Institution Letter FIL
1066, if made at the time when the Bank is subject to any of the conditions outlined in 12 C.F.R. §359.1(f)(1)(ii)(A)-(E)
shall not be made without obtaining all necessary approvals and, if required, may be suspended, prevented or subject to claw back
in whole or in part when warranted to ensure that payments contrary to the intent of 12 U.S.C. §1828(k) and 12 C.F.R. §359.4(b)(3)
are not made. In this regard, Bancorp and the Bank shall have the right to demand from Employee the return of , and the Employee
shall return, any golden parachute payment should Bancorp or the Bank later become aware or receive information that the Employee
has committed, is substantially responsible for, or has violated, the respective acts or omissions, conditions, or offenses prohibited
under 12 C.F.R. §359.4(a)(4).

 

6. Vacation. During the Term of
Employment, the Employee shall be entitled each year to a vacation of at least three (3) weeks, and during such time his compensation
shall be paid in full. The period of vacation selected each year shall be with approval of the Employer. Vacation time which is
not taken by the Employee in any year may not be accumulated or carried over from year to year. The Employee shall be entitled
to be paid for any unused accrued vacation time after termination of the Employee’s employment hereunder for the year of
the Employee’s termination. Normal bank holidays, seminars or convention attendance, teaching at banking schools or speaking
engagements shall not be considered as part of the Employee’s vacation period. The Employee shall comply with any banking
regulations relating to the scheduling of vacation time.

    	 

    	 

    
SOUTHERN CONNECTICUT BANCORP, INC.

THE BANK OF SOUTHERN CONNECTICUT

Employment Agreement with Stephen V. Ciancarelli - January 2013

Page 6 of 9

 

 

7. Notices. All notices under this
Agreement shall be in writing and shall be deemed effective when delivered in person to the Employee or to the Secretary of the
Employer and the Chairman of the Compensation Committee, or if mailed, postage prepaid, registered or certified mail, addressed,
in the case of the Employee, to his last known address as carried on the personnel records of the Employer, and, in the case of
the Employer, to the corporate headquarters, attention of the Secretary and to the Chairman of the Compensation Committee at his
place of business, or to such other address as the party to be notified may specify by notice to the other party.

 

8. Successors and Assigns. The rights
and obligations of the Employer under this Agreement shall inure to the benefit of and shall be binding (except as to the positions
and duties of the Employee) upon the successors and assigns of the Employer, including, without limitation, any corporation, individual
or other person or entity which may acquire all or substantially all of the assets and business of Employer or with or into which
the Employer may be consolidated or merged or any surviving corporation in any merger involving the Employer.

 

9. Arbitration. Any dispute which
may arise between the parties hereto shall be submitted to binding arbitration in New Haven, Connecticut, in accordance with the
Employment Rules of the American Arbitration Association provided that any such dispute shall first be submitted to the Employer’s
Board of Directors in an effort to resolve such dispute without resort to arbitration. A single arbitrator shall decide each dispute.
In any dispute which is submitted to arbitration, the arbitration costs and attorney’s fees of the prevailing party shall
be paid by the other party.

 

    	 

    	 

    

SOUTHERN CONNECTICUT BANCORP, INC.

THE BANK OF SOUTHERN CONNECTICUT

Employment Agreement with Stephen V. Ciancarelli - January 2013

Page 7 of 9

 

 

10. Severability. If any of the
terms or conditions of this Agreement shall be declared void or unenforceable by any court or administrative body or competent
jurisdiction, such term of condition shall be deemed severable from the remainder of this Agreement, and the other terms and conditions
of this Agreement shall continue to be valid and enforceable.

 

11. Construction. This Agreement
shall be construed under the laws of the State of Connecticut. Words of the masculine gender mean and include correlative words
of the feminine gender. Section headings are for convenience only and shall be considered a part of the terms and provisions of
the Agreement.

 

12.Section 409A Compliance.
Notwithstanding anything in this Agreement to the contrary, it is the intention of
the parties that this Agreement comply with Section 409A of the Internal Revenue Code and any regulations and other guidance issued
thereunder, and this Agreement and the payment of any benefits hereunder shall be operated and administered accordingly. Specifically,
but not by limitation, the Employee agrees that if, at the time of termination of employment, the Employer is considered to be
publicly traded and he is considered to be a specified employee, as defined
in Section 409A (and as determined as of December 31 preceding his termination of employment, unless his termination of employment
occurs prior to April 30, in which case the determination shall be made as of the second preceding December 31), then some or all
of such payments to be made hereunder as a result of his termination of employment shall be deferred for no more than six (6) months
and one day following such termination of employment, if and to the extent the delay in such payment is necessary in order to comply
with the requirements of Section 409A of the Code. Upon expiration of such six (6) month and one day period (or, if earlier, his
death), any payments so withheld hereunder from the Employee hereunder shall be distributed to the Employee. For purposes of clarity,
and not by way of modification, any payments to be made to the Employee under Section 5(b) of this Agreement are intended to satisfy
the conditions for the “severance exception” and/or the “short-term deferral rule” under the final Treasury
regulations interpreting Section 409A of the Internal Revenue Code.

 

    	 

    	 

    

SOUTHERN CONNECTICUT BANCORP, INC.

THE BANK OF SOUTHERN CONNECTICUT

Employment Agreement with Stephen V. Ciancarelli - January 2013

Page 8 of 9

 

 

13.Section 280G Compliance.
Notwithstanding any other provision of this Agreement, if any of the payments provided for in this Agreement, together with
any other payments which the Employee has the right to receive from the Employer or any corporation which is a member of an “affiliated
group” (as defined in Section 1504(a) of the Internal Revenue Code without regard to Section 1504(b) of the Code) of which
the Employer is a member, would constitute an “excess parachute payment” (as defined in Section 280G(b)(2) of the
Code), payments pursuant to this Agreement shall be reduced to the extent necessary to ensure that no portion of such payments
will be subject to the excise tax imposed by Section 4999 of the Code.

    	 

    	 

    

SOUTHERN CONNECTICUT BANCORP, INC.

THE BANK OF SOUTHERN CONNECTICUT

Employment Agreement with Stephen V. Ciancarelli - January 2013

Page 9 of 9

 

 

IN WITNESS WHEREOF, Employer has caused
this Agreement to be executed by a duly authorized officer and Employee has hereunto set his hand, effective as of the date first
written above.

	 	 	EMPLOYER:	 
	 	 	 	 
	 	 	SOUTHERN CONNECTICUT BANCORP, INC. 
THE BANK OF SOUTHERN CONNECTICUT, INC.	 
	 	 	 	 
	 	 	 	 
	 	 	By:	
/s/ Alfred J. Ranieri, Jr.	 
	 	 		ALFRED J. RANIERI, JR.	 
	 	 		Chairman,
    Compensation Committee	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	EMPLOYEE:	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	/s/ Stephen V. Ciancarelli	 
	 	 	STEPHEN V. CIANCARELLIex10.01

  
 EXHIBIT 10.01
 

 CONSULTING AGREEMENT
 

 This CONSULTING AGREEMENT (hereinafter “Agreement”) is effective as of the 1st day of February 2013, by and between CONSOLIDATION SERVICES, INC., a Delaware corporation (the “Company”) and Brady Strahl (the “Consultant”).
 

 Whereas, Consultant has experience and expertise, useful to the Company, in the heavy equipment rental serving mining, construction and infrastructure development businesses.
 

 Whereas, the Company wishes to engage Consultant to serve as its President and would like to compensate Consultant for fulfilling that role.
 

 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties, intending to be bound legally, to the Agreement as follows:
 

 1.  Engagement.
 

 (a)  The Company agrees to engage Consultant to perform the services of acting President (“President”) of the Corporation for the period commencing on February 1, 2013, through January 31, 2014 (the “Primary Term”), unless Consultant’s engagement under this Agreement is terminated or extended pursuant to Paragraphs 5, 6 or 7 of this Agreement.
 

 (b)  Duties.  During the Term, Consultant shall serve as President of the Corporation and shall report to the CEO of the Corporation.  If requested by the Chairman of the Board of Directors of the Corporation, Consultant shall also serve, without additional compensation or as an acting officer or director of any subsidiary, affiliate or joint venture of the Corporation. Consultant shall perform such duties and services as are incidental to the positions he holds or as he may, from time to time, be requested to hold by the CEO of the Corporation.  The Consultant will devote attention, skill, and energy to the business of the Corporation, and will use his best efforts to promote the success of the Corporation’s business, and will cooperate fully in the advancement of the best interests of the Corporation.  Consultant will devote up to 20 hours weekly to the Corporation’s activities at the direction of the CEO.  Nothing in this Agreement, however, will prevent the Consultant from engaging in additional business activities, including the fulfillment of existing unrelated consulting activities, personal investments and community affairs that are not inconsistent with the Consultant’s duties under this Agreement.
 

 1
 

 
 

 (c)  Primary Office.  Consultant’s primary office location shall be 2300 W. Sahara Ave. Suite 800 Las Vegas, Nevada.  Consultant is also authorized to work from a home office.
 

 2.  Compensation.
 

 The Company shall issue and Consultant shall accept, as compensation for serving as President of the Company from February 1st 2013 until January 31st 2014, two hundred thousand (200,000) shares of the Company’s common stock.
 

 3.  Business Expense Reimbursement.
 

 Upon presentation of receipts by Consultant, the Company shall, within fifteen (15) business days, reimburse Consultant for all reasonable travel, entertainment and other similar business expenses incurred by him in the performance of his duties hereunder.
 

 5.  Termination of Engagement.
 

 (a)  By Company.  Notwithstanding Section 1(a) of this Agreement, the Consultant’s engagement hereunder may be terminated by the Company, prior to the expiration of the Term of this Agreement, as follows:
 

 i.  Automatically, upon the death of the Consultant.
 

 ii.  On the date on which the Company notifies the Consultant of the termination of his engagement for Cause.  For purposes of this Agreement “Cause” shall mean:
 

 (1)  Habitual neglect or insubordination (defined as a refusal to execute or carry out lawful and prudent directions from the Board) where Consultant has been given written notice of the acts or omissions constituting such neglect or insubordination and Consultant has failed to cure such conduct, within thirty (30) days following notice;
 

 (2)  Participation in any fraud against the Company.
 

 (b)  By Consultant.  Notwithstanding Section 1(a) of this Agreement, Consultant may terminate the employment relationship prior to the expiration of the Term of this Agreement, as follows:
 

 2
 

 
 

 i.  By first giving the Company thirty (30) days’ advance notice of his intention to terminate his engagement; or 
 

 ii.  In the event of a material breach of the Agreement or the engagement relationship by the Company, including non-timely payment for services rendered, Consultant may terminate the Agreement without advance notice.
 

 6.  Consequences of Termination.
 

 Following the termination of Consultant’s Engagement pursuant to Paragraph 5, above, the Company shall have no further obligation to the Consultant. For any termination, voluntary or involuntary, the Company shall reimburse the Consultant for all reasonable expenses Consultant incurred in connection with his engagement and supported by receipts submitted to the Company within thirty (30) days of the date of separation.
 

 7.  Expiration and Renewal.
 

 Unless notice of termination is provided in accordance with Paragraphs 5, this Agreement shall continue for one (1) year, unless extended. Nothing shall preclude the parties from extending the Agreement for a longer period provided that it is acknowledged by a written document signed by both parties.
 

 8.  Assignment of Rights.
 

 The Company may assign all of its rights and obligations under this Agreement to any person or entity acquiring the principal assets used and useful in the operation of the Company provided such entity is financially able to honor the obligations to the Consultant under the terms of this Agreement, and the Company has secured the written consent of Consultant.
 

 This Agreement shall not be terminated by Company’s voluntary or involuntary dissolution or by any merger in which Company is not the surviving or resulting corporation, or on any transfer of all or substantially all of the Company’s assets.  In the event of any such merger or transfer of assets, where the Consultant has provided his written consent, the provisions of this Agreement shall be binding on and inure to the benefit of the surviving business entity or the business entity to which assets shall be transferred.  The Company shall require a purchaser, buyer or assignee to fully assume the Company’s obligations set forth herein prior to the purchase or assignment.
 

 3
 

 
 

 9.  Representations and Warranties.
 

 The Company represents and warrants to the Consultant that this Agreement has been duly authorized, executed and delivered by the Company, is the legal obligation of the Company and is enforceable as to the Company in accordance with its terms.
 

 10.  Governing Law.
 

 This Agreement shall be construed in accordance with and shall be governed by, the laws of the State of Delaware without giving effect to rules governing conflicts of law.
 

 11.  Entire Agreement.
 

 This Consulting Agreement contains the entire understanding and agreement between the parties relating to the subject matter hereto except as otherwise referred to herein, and supersedes any prior agreement between the parties, whether written or oral.  Neither this Agreement nor any provision hereof may be waived, modified, amended, changed, discharged or terminated, except by an agreement in writing, signed by the party against whom enforcement of any waiver, modification, change, amendment, discharge or termination is sought.  To the extent any employee handbook or similar policies of the Company are inconsistent with the Agreement, this Agreement shall control and govern.
 

 12.  Counterparts.
 

 This Agreement may be executed in counterparts, each of which shall be deemed an original, and such counterparts together shall constitute a single instrument.
 

 13.  Provisions Schedule.
 

 To the extent any one or more of the provisions of this Agreement shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby but shall remain in full force and effect.
 

 14.  Headings.
 

 The section headings herein are for convenience only and shall not be used in interpreting or construing this Agreement.
 

 4
 

 
 

 15.  Notices.
 

 Any notice required or permitted to be given under the provisions of this Agreement shall be in writing and shall be deemed to have been duly delivered and received (i) on the date of personal delivery, or (ii) on the date of receipt (as shown on the return receipt) if mailed by certified or registered mail, return receipt requested, postage prepaid, or sent by Federal Express or similar courier service, with all charges prepaid, in each case addressed to the following persons at the following addresses, or to such other person or other addressed to the following persons at the following addresses, or to such other person or other addresses as either party may designate by notice in writing to the other party to this Agreement.
 

 

 	 	
	 (a) To the Consultant
	 Brady Strahl

	  
	 441 Kayak Drive

	  
	 Anchorage, AK 99515

	  
	  

	 (b) To the Company:
	 CONSOLIDATION SERVICES, INC.

	  
	 2300 W. Sahara Ave

	  
	 Suite 800

	  
	 Las Vegas, NV 89102

	  
	 Atten: Gary Kucher

	  
	  

	 With a copy to:
	 Elliot H. Lutzker 

	  
	 Davidoff Hutcher & Citron LLP 

	  
	 605 Third Ave., 34th Floor 

	  
	 New York, NY 10158 

 

 16.  Agreement to Arbitrate.
 

 Any controversy or claim arising out of or relating to this Agreement, or breach of this Agreement, shall be settled by arbitration in accordance with the Arbitration rules of the American Arbitration Association, or any arbitral forum mutually agreed to in writing by the parties.  The arbitrator shall issue a written decision that will provide for any and all damages otherwise available in a court of law.  Judgment on the award rendered by arbitrator may be entered in any court having jurisdiction.    
 

 

 5
 

 
 

 There shall be one arbitrator selected by the parties. The Company shall pay all fees and costs associated with the arbitration, including the attorney’s fees and costs of Consultant should the arbitrator conclude that the Company breached the Agreement in any respect, or Consultant is awarded any money, benefits or damages as a result of the arbitration.
 

 This Agreement does not create, and shall not be construed as creating any rights enforceable by any person not a party to this Agreement, other than as provided in Paragraph 8, assignment of rights.
 

 

 

 

 

 

 

 

 

 

 (The remainder of this page left intentionally blank)
 

 

 

 

 

 

 

 

 

 

 6
 

 
 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first hereinabove written.
 

 CONSOLIDATION SERVICES, INC.
 

 

 By:   /s/ Gary Kucher
   Gary Kucher, CEO
 

 

 Dated: 1/28/2013
 

 

 

 CONSULTANT
 

 

 By: /s/ Brady Strahl
   Brady Strahl
 

 Dated: 1/22/2013
 

 

 

 

 

 

 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}]]