Document:

Exhibit 10.13

 

FIRST AMENDMENT
 TO
 EMPLOYMENT AGREEMENT

 

This First Amendment to Employment Agreement (“Amendment”) dated as of December       , 2008 is made and entered into by and among Danvers Bancorp, Inc., a Delaware Corporation (the “Company”) and its subsidiary Danversbank, a savings bank chartered under the laws of the Commonwealth of Massachusetts (the “Bank” and collectively with the Company, the “Employers”), and John J. O’Neil (the “Executive”).

 

WHEREAS, the Employers and the Executive are parties to an Employment Agreement dated as January 2, 2008 (the “Agreement”); and

 

WHEREAS, the parties hereto desire to amend the Agreement to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”); and

 

WHEREAS, capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Employers and the Executive agree as follows:

 

1.                                       Section 3(b) of the Agreement is hereby amended by adding the following sentence to the end thereof:

 

“Any such cash incentive compensation shall be paid to the Executive between January 1 and March 15 of the year following the year in which it was earned.”

 

2.                                       Section 5(a) of the Agreement is hereby amended by inserting the following immediately prior to the period at the end of the first sentence thereof:

 

“, payable on or before the time required by law or under the applicable plan, but in no event more than 30 days after the Executive’s Date of Termination”

 

3.                                       Section 5(a) of the Agreement is hereby amended by inserting the following immediately prior to the period at the end thereof:

 

“, payable in a lump-sum within 30 days after the Date of Termination”

 

4.                                       Section 5(b) of the Agreement is hereby amended by inserting the following immediately prior to the period at the end of the first sentence thereof:

 

 

“, payable in accordance with Section 5(a)”

 

5.                                       Section 5(b) of the Agreement is hereby amended by inserting the following immediately after the phrase “general release of claims” in the second sentence thereof:

 

“, within the 21-day period following the Date of Termination and the expiration of the seven-day revocation period for such release,”

 

6.                                       Sections 5(b)(i) and 5(b)(ii) of the Agreement are each hereby amended by inserting the following immediately before the period at the end of the second to last sentence of 5(b)(ii) and immediately prior to the semicolon at the end of each of 5(b)(i) and 5(b)(ii) thereof:

 

“, payable on the 30th day after the Date of Termination”

 

7.                                       Section 5 of the Agreement is hereby amended by inserting the following as a new Section 5(b)(v):

 

“(v)                           Notwithstanding anything in this Agreement to the contrary, to the extent that any payment or benefit described in this Agreement constitutes ‘non-qualified deferred compensation’ under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive’s termination of employment, then such payments or benefits shall only be payable upon the Executive’s ‘separation from service.’  The term ‘separation from service’ shall mean the Executive’s ‘separation from service’ from the Bank or the Company, an affiliate of the Bank or the Company or a successor entity within the meaning set forth in Section 409A of the Code, determined in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h).”

 

8.                                       Section 6(b)(ii) of the Agreement is hereby amended by (x) deleting the word “initial” prior to the term “Gross-Up Payment” in the third sentence thereof, (y) deleting “Executive within five days of the receipt of the Accounting Firm’s determination” at the end of the third sentence thereof, and (z) inserting the following immediately prior to the period at the end of the third sentence thereof:

 

“relevant tax authorities as withholding taxes on behalf of the Executive at such time or times when each Excise Tax payment is due”

 

9.                                       Section 6(b)(ii) of the Agreement is hereby amended by deleting “or for the benefit of the Executive” at the end thereof, and substituting the following therefor immediately prior to the period at the end thereof:

 

“the relevant tax authorities as withholding taxes on behalf of the Executive”

 

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10.                                 Section 6 of the Agreement is hereby amended by inserting the following as a new Section 6(b)(v):

 

“(v)                           Any Gross-Up Payment, advance or other payment under this Section shall be paid no later than the last day of the calendar year following the calendar year in which the related tax is required to be paid.”

 

11.                                 The Agreement is hereby amended by adding the following as a new Section 10 to the Agreement and renumbering the subsequent sections of the Agreement accordingly:

 

“10.                           Section 409A

 

(a)                                  All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Employers or incurred by the Executive during the time periods set forth in this Agreement.  All reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred.  The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year.  Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

 

(b)                                 The Employers make no representation or warranty and shall have no liability to the Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such Section.”

 

12.                                 All other provisions of the Agreement shall remain in full force and effect according to their respective terms, and nothing contained herein shall be deemed a waiver of any right or abrogation of any obligation otherwise existing under the Agreement except to the extent specifically provided for herein.

 

13.                                 The validity, interpretation, construction and performance of this Amendment shall be governed by the laws of the Commonwealth of Massachusetts.

 

14.                                 This Amendment may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

 

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IN WITNESS WHEREOF, the Employers have caused this First Amendment to Employment Agreement to be duly executed by their officers thereunto authorized, and the Executive has hereunto set his hand, all on the day and year first above written.

 

 

	
 
    	
DANVERS   BANCORP, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DANVERSBANK
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EXECUTIVE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
John   J. O’Neil
    

 

4Exhibit 10.15

 

FIRST AMENDMENT
 TO
 CHANGE IN CONTROL AGREEMENT

 

This First Amendment to Change in Control Agreement (“Amendment”) dated as of December       , 2008 is made and entered into by and among Danvers Bancorp, Inc., a Delaware company (the “Company”) and its subsidiary, Danversbank, a Massachusetts savings bank with its main office in Danvers, Massachusetts (the “Bank” and collectively with the Company, the “Employers”), and                                                              (the “Executive”).

 

WHEREAS, the Employers and the Executive are parties to a Change in Control Agreement dated as of                                       , 2007 (the “Agreement”); and

 

WHEREAS, the parties hereto desire to amend the Agreement to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”); and

 

WHEREAS, capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Employers and the Executive agree as follows:

 

1.             Section 3(b) of the Agreement is hereby amended by adding the following immediately after the word “mean” and before the words “the occurrence” in the second sentence thereof:

 

“that the Executive has complied with the “Good Reason Process” (hereinafter defined) following”

 

2.             Section 3(b) of the Agreement is further amended by deleting Sections 3(b)(i) through 3(b)(iv) in their entirety and substituting the following therefor:

 

“(i)          a material diminution, not consented to by the Executive, in the Executive’s responsibilities, authorities or duties, from the responsibilities, authorities or duties exercised by the Executive immediately prior to the Change in Control; or

 

(ii)           a material diminution in the Executive’s annual base salary as in effect on the date hereof or as the same may be increased from time to time hereafter except for across-the-board reductions similarly affecting all or substantially all management employees; or

 

(iii)          the relocation of the Employers’ offices at which the Executive is principally employed immediately prior to the date of a Change in Control (the “Current Offices”) to any other location more than 50 miles from the Current Offices, or the requirement by the Employers for the Executive to be based at a

 

 

location more than 50 miles from the Current Offices, except for required travel on the Employers’ business to an extent substantially consistent with the Executive’s business travel obligations immediately prior to the Change in Control; or

 

(iv)          the material breach of this Agreement by the Employers.”

 

3.             Section 3(b) of the Agreement is further amended by adding the following to the end thereof:

 

“‘Good Reason Process’ shall mean that (i) the Executive reasonably determines in good faith that a ‘Good Reason’ condition has occurred; (ii) the Executive notifies the Employers in writing of the first occurrence of the Good Reason condition within 60 days of the first occurrence of such condition; (iii) the Executive cooperates in good faith with the Employers’ efforts, for a period not less than 30 days following such notice (the “Cure Period”), to remedy the condition; (iv) notwithstanding such efforts, the Good Reason condition continues to exist; and (v) the Executive terminates his employment within 60 days after the end of the Cure Period.  If the Employers cure the Good Reason condition during the Cure Period, Good Reason shall be deemed not to have occurred.”

 

4.             Section 4(c) of the Agreement is hereby amended by adding the following to the end thereof:

 

“Notwithstanding anything in this Agreement to the contrary, to the extent that any payment or benefit described in this Agreement constitutes ‘non-qualified deferred compensation’ under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive’s termination of employment, then such payments or benefits shall only be payable upon the Executive’s ‘separation from service.’  The term ‘separation from service’ shall mean the Executive’s ‘separation from service’ from the Bank or the Company, an affiliate of the Bank or the Company or a successor entity within the meaning set forth in Section 409A of the Code, determined in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h).  The Employers make no representation or warranty and shall have no liability to the Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such Section.”

 

5.             Section 5 of the Agreement is hereby amended by deleting the second sentence of such Section and substituting the following therefor:

 

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“To the extent that there is more than one method of reducing such payments to bring them within the Threshold Amount, the Severance Payments shall be reduced in the following order:  (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits.  To the extent any payment is to be made over time (e.g., in installments, etc.), then the payments shall be reduced in reverse chronological order.”

 

6.             Section 18 of the Agreement is hereby amended by deleting the last sentence thereof and substituting the following therefor:

 

“In the event that the Executive is party to an employment agreement with the Employers providing for change in control payments or benefits, the Executive shall receive the benefits under only one agreement, which shall be the agreement pursuant to which the Executive would receive the greatest aggregate amount (calculated on an after-tax basis).”

 

7.             All other provisions of the Agreement shall remain in full force and effect according to their respective terms, and nothing contained herein shall be deemed a waiver of any right or abrogation of any obligation otherwise existing under the Agreement except to the extent specifically provided for herein.

 

8.             The validity, interpretation, construction and performance of this Amendment shall be governed by the laws of the Commonwealth of Massachusetts.

 

9.             This Amendment may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

 

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IN WITNESS WHEREOF, the Employer has caused this First Amendment to Change in Control Agreement to be duly executed by its officer thereunto authorized, and the Executive has hereunto set his hand, all on the day and year first above written.

 

 

	
 
    	
DANVERS   BANCORP, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DANVERSBANK
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EXECUTIVE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[Executive]
    

 

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