Document:

Exhibit 10.1

 

EMPLOYMENT
AGREEMENT

 

Employment Agreement (the
"Employment Agreement") made as of this 10th day of April, 2017, by and between PETER A. MICHELOTTI
an individual residing at 12 Hoyt Street, Madison, New Jersey 07940 (the "Employee"), SUSSEX BANK, a New Jersey
state chartered commercial bank with its principal place of business located at 100 Enterprise Drive, Suite 700, Rockaway, New
Jersey, 07866 (the "Bank"), and SUSSEX BANCORP, a New Jersey corporation with its principal place of business
located at 100 Enterprise Drive, Suite 700, Rockaway, New Jersey, 07866 (the "Company"; the Bank and the Company sometimes
collectively are referred to herein as "Employer").

 

WHEREAS, Community
Bank of Bergen County, NJ (“CBBC”) has entered into a Plan and Agreement of Merger (the “Merger Agreement”)
with the Company pursuant to which CBBC will merge with and into the Bank (the “Merger”);

 

WHEREAS, the Board
of Directors of the Bank and the Board of Directors of the Company have each determined that it is in the best interests of each
of the Bank and the Company to enter into this Agreement with Employee, and each respective Board has authorized the Bank and the
Company to enter into this Agreement;

 

WHEREAS, the Employee
agrees to be employed pursuant to the terms and conditions of this Agreement;

 

NOW, THEREFORE,
in consideration of the premises and covenants contained herein, and with the intent to be legally bound hereby, the parties hereto
hereby agree as follows:

 

1.          Employment.
The Company and the Bank hereby jointly agree to employ the Employee, and the Employee hereby accepts such employment, upon the
terms and conditions set forth herein.

 

2.          Position
and Duties. The Employee shall be employed as Senior Executive Vice President and Chief Operating Officer of the Company and
the Bank, to perform such services in that capacity as are usual and customary for comparable institutions and as shall from time-to-time
be established by the Chief Executive Officer and/or the Board of Directors of the Company and the Bank. Employee agrees that he
will devote his full business time and efforts to his duties hereunder.

 

3.          Compensation.
Employer shall pay to the Employee compensation for his services commencing upon the Employment Commencement Date (as defined herein)
as follows:

 

(a)          Base
Salary. The Employee shall be entitled to receive an annual base salary (the "Base Salary") at a rate of Two Hundred
Forty-Five Thousand dollars ($245,000) per year, which shall be payable in installments in accordance with Employer's usual payroll
method. Annually thereafter, on or prior to the anniversary date of this Agreement, the Board of Directors shall review the Employee's
performance, the status of Employer and such other factors as the Board of Directors or a committee thereof shall deem appropriate
and shall increase the Base Salary accordingly.

 

(b)          Incentive
Plans.  Employee shall be entitled to participate in the Employer’s incentive plan for executive officers of the
Employer.

 

     

     

    

  

4.          Other
Benefits.

 

(a)          Automobile.
During the Term, the Employee shall be entitled to the use of an Employer-owned car at all times as was provided on the closing
date of the Merger. Upon request by the Employer, the Employee shall submit to the Employer on a timely basis documentation which
defines the percentage of the Employee’s use of the vehicle which was for business purposes.

 

(b)          Insurance.
 The Employee shall be entitled to receive hospital, health, medical, and life insurance of a type currently provided to and
enjoyed by other senior officers of Employer, and shall be entitled to participate in any other employee benefit, incentive or
retirement plans offered by Employer to its employees generally or to its senior management.

 

(c)          Expenses
and Country Club. The Employee shall be entitled to reimbursement for all proper business expenses incurred by him with respect
to the business of the Employer upon the provision of documentation evidencing such expenses in accordance with the Employer’s
expense reimbursement policies and in the same manner and to the same extent as such expenses are reimbursed to other officers
of the Employer. In addition, during the Term the Employer shall pay the cost of a membership at Arcola Country Club in Paramus,
New Jersey.

 

5.          Term.
The term of this Agreement shall commence on the closing date of the Merger (the “Employment Commencement Date”) and
continue until the second (2nd) anniversary of the Employment Commencement Date (the “Initial Term”).  At
the end of the Initial Term, and thereafter at the end of the Extension Term (as defined below) if any, the term of this Agreement
shall automatically be renewed for one year (each such extension, an “Extension Term” and, with the Initial Term, the
“Term”) unless either party hereto, by written notice provided at least 90 days prior to the end of the Initial Term
or an Extension Term, as appropriate, elects not to so renew.

 

6.          Termination.
Employee may be terminated at any time, without prejudice to Employee's right to compensation or benefits as provided herein.  Employee's
rights upon a termination shall be as follows:

 

(a)          Cause.
As used in this Agreement, the term "Cause" shall mean the Employee's personal dishonesty, willful misconduct, breach
of fiduciary duty involving personal profit, intentional failure to perform stated duties (other
than any failure resulting from the Employee’s incapacity due to physical or mental health) which failure has not been cured
within ten (10) days after a written notice of such noncompliance has been given to Employee by Employer, willful violation of
any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order, or a material
breach of any provision of this Agreement. Notwithstanding the above, the Employee shall not be deemed to have been terminated
for cause unless and until there shall have been delivered to him a copy of a resolution duly adopted by the affirmative vote of
not less than three-fourths of the members of the Board of Directors of each of the Company and the Bank at meetings of their respective
Boards called and held for that purpose (after reasonable notice to the Employee and an opportunity for him, together with counsel,
to be heard before each such Board of Directors), finding that in the good faith opinion of the Board of Directors, the Employee
was guilty of conduct justifying termination for cause and specifying the particulars thereof in detail; provided, however, that
nothing contained herein shall prohibit Employee from being suspended from his duties hereunder by a duly authorized agent of the
Board upon a good faith determination that "cause" exists. Such suspension shall last until such time as the Board meeting
provided for above shall have occurred, provided that such Board meeting shall occur within a reasonable period of time. During
such suspension Employee shall continue to be an employee, entitled to all salary and benefits provided for hereunder.

 

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(b)          Termination
With Cause. Employer shall have the right to terminate the Employee for "cause". In the event of such termination,
the Employee shall not be entitled to any further benefits under this Agreement.

 

(c)          Termination
Without Cause.  Upon a termination of Employee's employment hereunder without "cause", in recognition of such
termination and Employee’s agreement to be bound by the covenants contained in Section 9 hereof, Employee shall be entitled
to receive a lump sum severance payment equal to the amount that would have been paid to Employee for the lesser of (i) one year
or (ii) the remaining unexpired term of this Employment Agreement as determined under Section 5, assuming no renewal or extension
of the Term (the “Remaining Unexpired Term”) at his then current Base Salary with no discounting for early payment.
In addition, Employer shall continue to provide the Employee with hospital, health, medical and life insurance, and any other like
benefits in effect at the time of such termination for the lesser of (i) the period of one year or (ii) the Remaining Unexpired
Term. The Employee shall have no duty to mitigate damages in connection with his termination by Employer without "cause".
However, if the Employee obtains new employment and such new employment provides for hospital, health, medical and life insurance,
and other benefits, in a manner substantially similar to the benefits payable by Employer hereunder, Employer may permanently terminate
the duplicative benefits it is obligated to provide hereunder.

 

(d)          Death
or Disability.  This Agreement shall automatically terminate upon the death or disability of Employee. Upon such termination,
Employee shall not be entitled to any additional compensation hereunder, provided, however that the forgoing shall not prejudice
Employee’s right to be paid for all compensation earned through the date of such termination and the benefits of any insurance
programs maintained for the benefit of Employee or his beneficiaries in the event of his death or disability.

 

7.          Resignation
for Cause. During the term of this Agreement, the Employee shall be entitled to resign from his employment with Employer, and
in recognition of the termination of Employee’s employment in such circumstances and Employee’s agreement to be bound
by the covenants contained in Section 9 hereof, Employee shall receive the payments provided for below, in the event that the Employee
is not in breach of this Agreement and Employer (i) reassigns the Employee to a position of lesser rank or status than Chief Operating
Officer, (ii) relocates the Employee's principal place of employment by more than fifty (50) miles from its location on the date
hereof, or (iii) reduces the Employee's compensation or other benefits below the level specified herein. Upon the occurrence of
any of these events, the Employee shall have thirty days to provide Employer notice of his intention to terminate this Agreement.
In the event the Employee elects to so terminate this Agreement, such termination shall be treated as a termination without "cause"
by Employer under Section 6(c) hereof, and the Employee shall be entitled to receive all payments and other benefits called for
under such Section 6(c).

   

8.          Change
in Control.

 

(a)        Upon
the termination of Employee’s employment upon the occurrence of a Change in Control (as herein defined), Employee shall be
entitled to receive the payments provided for under paragraph (c) hereof. In addition, if within eighteen (18) months of the occurrence
of a Change in Control Employer or its successor shall (i) reassign the Employee to a position of lesser rank or status than Chief
Operating Officer, (ii) relocate the Employee's principal place of employment by more than fifty (50) miles from its location prior
to consummation of the Change in Control, or (iii) reduces the Employee's compensation or other benefits below the level in effect
prior to the consummation of Change in Control, Employee have the right to resign his employment with the Employer or its successor
and thereafter Employee shall become entitled to receive the payments provided for under paragraph (c) below.

 

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(b)          A
"Change in Control" shall mean:

 

(i)          A
reorganization, merger, consolidation or sale of all or substantially all of the assets of the Company, or a similar transaction,
in any case in which the holders of the voting stock of the Company prior to such transaction do not hold a majority of the voting
power of the resulting entity; or

 

(ii)         Individuals
who constitute the Incumbent Board (as herein defined) of the Company cease for any reason to constitute a majority thereof; or

 

(iii)        Without
limitation, a change in control shall be deemed to have occurred at such time as (i) any "person" (as the term is used
in Section 13(d) and 14(d) of the Exchange Act) other than the Company or the trustees or any administration of any employee stock
ownership plan and trust, or any other employee benefit plans, established by Employer from time-to-time in is or becomes a "beneficial
owner" (as defined in Rule 13-d under the Exchange Act) directly or indirectly, of securities of the Company representing
35% or more of the Company's outstanding securities ordinarily having the right to vote at the election of directors; or

 

(iv)        A
tender offer is made for 35% or more of the voting securities of the Company and the shareholders owning beneficially or of record
35% or more of the outstanding securities of the Company have tendered or offered to sell their shares pursuant to such tender
and such tendered shares have been accepted by the tender offeror.

 

For these purposes,
"Incumbent Board" means the Board of Directors of the Company on the date hereof, provided that any person becoming a
director subsequent to the date hereof whose election was approved by a voting of at least three-quarters of the directors comprising
the Incumbent Board, or whose nomination for election by members or stockholders was approved by the same nominating committee
serving under an Incumbent Board, shall be considered as though he were a member of the Incumbent Board.

 

(c)          In
the event the conditions of Section (a) above are satisfied, Employee shall be entitled to receive a lump sum payment equal to
two (2) times Employee's then current Base Salary. In addition, Employee shall be entitled to receive from Employer, or its
successor, hospital, health, medical and life insurance on the terms and at the cost to Employee as Employee was receiving such
benefits upon the date of his termination for a period of two (2) years; provided, however, that in no event shall any payments
provided for hereunder constitute an "excess parachute payment" under Section 280G of the Internal Revenue Code of 1986,
as amended or any successor thereto, and in order to avoid such a result the benefits provided for hereunder will be reduced, if
necessary, to an amount which is One Dollar ($1.00) less than an amount equal to three (3) times Employee's "base amount"
as determined in accordance with such Section 280G.

 

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9.          Covenant
Not to Compete; Non-Solicitation.

 

(a) As consideration for the
benefits conferred upon Employee hereunder, including, but not limited to Employee’s right to severance under Section 6(c),
Employee agrees that during the term of his employment hereunder and for a period of one (1) year after the termination of his
employment (the “Covenant Term”) he will not in any way, directly or indirectly, manage, operate, control, accept employment
or a consulting position with or otherwise advise or assist or be connected with or own or have any other interest in or right
with respect to (other than through ownership of not more than five percent (5%) of the outstanding shares of a corporation whose
stock is listed on a national securities exchange or on NASDAQ) any enterprise which competes with Employer in the business of
banking in the counties in which Employer conducts its business on the date of Employee's termination nor will Employee directly
or indirectly, by and for Employee or on behalf or as agent for another, assist any third party directly or indirectly to solicit
or provide services to customers of the Bank (including those customers who were customers within six (6) months prior to and including
the date of the Employee’s termination of employment) for any products or services similar to or competing with those offered
by the Bank. Similarly, the Employee shall not for the Covenant Term solicit or hire on his behalf or on behalf of any other entity,
any individual who was or is an employee or independent contractor of the Employer within six (6) months prior to the date of the
Employee’s termination of employment.

 

(b)          The
Employee agrees that, during Covenant Term, he shall make himself available to the Employer for consultation from time to time
to provide transition assistance to Employer and/or its successor. Such consultation shall not be on a full time basis and shall,
to the fullest extent possible, be undertaken on a remote basis so that Employee shall not generally be required to render such
consultations at the business location of the Employer.

 

(c)          In
the event that this covenant not to compete or non-solicitation provision shall be found by a court of competent jurisdiction to
be invalid or unenforceable as against public policy, such court shall exercise discretion in reforming such covenant to the end
that Employee shall be subject to a covenant not to compete and non-solicitation provision that is reasonable under the circumstances
and enforceable by Employer. Employee agrees to be bound by any such modified covenant not to compete and non-solicitation provision.

 

10.         Miscellaneous.

 

(a)          Governing
Law. In the absence of controlling Federal law, this Agreement shall be governed by and interpreted under the substantive law
of the State of New Jersey.

 

(b)          Severability.
If any provision of this Agreement shall be held to be invalid, void, or unenforceable, the remaining provisions hereof shall in
no way be affected or impaired, and such remaining provisions shall remain in full force and effect.

 

(c)          Entire
Agreement; Amendment. This Agreement sets for the entire understanding of the parties with regarding to the subject matter
contained herein and supersedes any and all prior agreements, arrangements or understandings relating to the subject matter hereof
and may only be amended by written agreement signed by both parties hereto or their duly authorized representatives. This Agreement
is void ab initio if the Merger Agreement is terminated for any reason.

 

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(d)          Successors
and Assigns. This Agreement shall be binding upon and become the legal obligation of the successors and assigns of Employer.

 

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

 

	 	SUSSEX BANK
	 	 	 
	 	By:	/s/ Anthony Labozzetta
	 	Name:	Anthony Labozzetta
	 	Title:	President and Chief Executive Officer
	 	 	 
	 	SUSSEX BANCORP
	 	 	 
	 	By:	 /s/ Anthony Labozzetta
	 	Name:	Anthony Labozzetta
	 	Title:	President and Chief Executive Officer
	 	 	 
	 	EMPLOYEE
	 	 	 
	 	By:	/s/ Peter A. Michelotti
	 	Name:	Peter A. Michelotti

 

    	 	7Exhibit 10.1

 

Bendon Limited

8 Airpark Drive, Airport Oaks

Auckland 2022, New Zealand

 

April 10, 2017

 

Naked Brand Group Inc.

95 Madison Avenue, 10th Floor

New York, NY 10016

 

Re:       Amendment
No. 3 to Letter of Intent, Dated December 19, 2016

 

Ladies and Gentlemen:

 

Reference is made to
that certain Letter of Intent, dated December 19, 2016, as amended by Amendment No. 1 dated February 9, 2017 and Amendment No.
2 dated March 8, 2017 (collectively, the “Letter of Intent”), between Bendon Limited (“Bendon”) and Naked
Brand Group Inc. (“Naked”). Capitalized terms used herein that are not otherwise defined will have the same meaning
as they were given in the Letter of Intent.

 

Pursuant to the Letter
of Intent, it is contemplated that Naked will merge into a subsidiary of a newly formed Australian holding company (“NewCo”)
and the shareholders of Naked and Bendon, respectively, will be issued shares of NewCo, which will become the new public company
following consummation of the transactions. As a result of certain changes in the structure of the transactions as reflected in
Amendment No. 2 to the Letter of Intent, the parties have since determined to extend the deadline by which they are required to
enter into a definitive agreement and to amend the terms of the transaction to reflect certain corporate developments that have
occurred or are expected to occur with respect to the parties to the transaction, including the relative number of shares issuable
to holders of the Naked Shares and the Bendon Shares (each as defined in the Letter of Intent), the target Net Asset Amount and
Net Debt Amount (each as defined in the Letter of Intent) and the mechanism for adjusting the consideration based on the Net Asset
Amount and Net Debt Amount.

 

Accordingly, the parties
now wish to further amend the Letter of Intent as follows:

 

1.       The
first paragraph of Section 1 shall be replaced in its entirety with the following:

 

“1.Bendon and Naked will
negotiate in good faith a definitive merger agreement (the “Agreement”) pursuant to which, on the closing date of the
transaction contemplated by the Agreement (“Closing Date”), (i) a wholly-owned subsidiary (“Merger Sub”)
of a newly formed Australian holding company (“NewCo”), which will also be the ultimate parent company of Bendon, would
merge with Naked (the “Merger”) and (ii) assuming Naked has 10,266,221 shares outstanding (which includes the conversion
of $224,000 of Notes currently outstanding into 215,385 of common shares and any adjustments for shares issued in connection with
any capital transactions that were approved by Bendon (each, a “Subsequent Capital Raise”)), at the conclusion of the
Merger, NewCo would issue to the holders of the outstanding capital stock of Bendon an aggregate of 146,311,063 ordinary shares
of NewCo (the “Bendon Shares”) and issue to the holders of the outstanding capital stock of Naked (the “Naked
Shares”) a number of ordinary shares of NewCo equal to the number of shares of outstanding Naked Shares immediately prior
to the Merger, and as of the effective time of the Merger, no other shares of NewCo would be outstanding. The Merger will be structured
to be accomplished without taxation to the holders of Bendon Shares and Naked Shares, to the extent possible. NewCo shares issued
to the holders of Naked Shares will be subject to adjustment based on Naked having Net Assets (as defined below) of $5.8 million,
as adjusted for each Subsequent Capital Raise as mutually agreed to by Naked and Bendon (the “Net Asset Amount”) (provided
that if equity or options are issued to cancel all or any portion of the Hochman Obligation (as defined below), the Net Asset Amount
shall increase by that same amount), and Bendon having Net Debt (as defined below) of $19.4 million as of the Closing (the “Net
Debt Amount”) as follows:”

 

     

     

    

 

2.       Sections
1(a) and (b) shall be replaced in their entirety with the following:

 

“(a)In the event Naked’s
Net Assets are less than the Net Asset Amount (the “Net Asset Shortfall Amount”) as of the Measurement Date (as defined
below), then the aggregate amount of ordinary shares of NewCo issuable to the holders of the Naked Shares shall be reduced by
the amount of ordinary shares of NewCo equal to the product obtained by multiplying (i) the difference between the Net Asset Amount
and the Net Asset Shortfall Amount and (ii) 11.634. In the event Naked’s Net Assets are more than the Net Asset Amount (the
“Net Asset Excess Amount”) at the Closing, then the aggregate amount of ordinary shares of NewCo issuable to the holders
of Naked Shares shall be increased by the amount of ordinary shares of NewCo equal to the product obtained by multiplying (i)
the difference between the Net Asset Amount and the Net Asset Excess Amount and (ii) 11.634; provided, however,
that in either event, such adjustment shall only be made to the extent such Net Asset Shortfall Amount or Net Asset Excess Amount
is greater than or less than $150,000, as applicable. The “Measurement Date” shall be the most recent 15th day of
the calendar month or the last day of the calendar month that precedes the date the staff of the Securities and Exchange Commission
informs the parties it has no further comments on the proxy statement / prospectus referred to in Section 6 hereof. Naked and
Bendon have previously agreed to an operating budget (the “Budget”) for the period from the date of the Pre-merger
Financing (as defined below) until the Closing Date. Any change, at any time, in the Budget shall cause a dollar-for-dollar change
in the Net Asset Amount. The Board has established a committee to oversee the Budget, which committee is comprised of four directors
and includes two existing directors and the New Directors (as defined in Section 7 of this letter). The Budget will be reviewed
by such committee on a regular basis. No material adverse deviations from the Budget will be made without approval from the committee.

 

(b)In the event Bendon’s Net Debt exceeds the Net Debt Amount (the “Net Debt Excess Amount”) as of the
Measurement Date, then the aggregate amount of ordinary shares of NewCo issuable to the holders of Naked Shares shall be increased
by the amount of ordinary shares of NewCo equal to the product obtained by multiplying (i) the difference between the Net Debt
Excess Amount and the Net Debt Amount and (ii) 0.833. In the event Bendon’s Net Debt is less than the Net Debt Amount
(the “Net Debt Shortfall Amount”), then the aggregate number of ordinary shares of NewCo issuable to the holders of
the Naked Shares shall be reduced by the amount of ordinary shares of NewCo equal to the product obtained by multiplying (i) the
difference between the Net Debt Shortfall Amount and the Net Debt Amount and (ii) 0.833; provided, however, that
in either event, such adjustment shall only be made to the extent such Net Debt Excess Amount or Net Debt Shortfall Amount is
greater than or less than $1,000,000, as applicable.”

 

     

     

    

 

3.       Section
10 shall be replaced in its entirety with the following:

 

“Each member of the Naked Management Group as
of the date of this letter that is a stockholder of Naked (other than Carole Hochman and Joel Primus, collectively, the “Naked
Executives”) shall agree in writing not to sell Naked Shares until the Closing Date, subject to customary exceptions. The
Naked Executives shall agree in writing not to sell their respective Naked Shares for a period of six (6) months after the Closing
Date.”

 

4.       The parties
hereby agree that for purposes of the Letter of Intent, the above-referenced change in Merger structure shall not be considered
an adverse change in the economic terms of the Letter of Intent which would cause the Letter of Intent to be terminated. Additionally,
the parties hereby agree that the reference to April 10, 2017 in Section 17 of the Letter of Intent is hereby replaced with May
26, 2017.

  

     

     

    

 

With the exception of the aforementioned
changes, the Letter of Intent remains in full force and effect.

 

If the foregoing correctly sets forth our
agreement, please so confirm by signing in the space indicated below.

 

	 	 	Very truly yours,
	 	 	 	 
	 	 	BENDON LIMITED
	 	 	 	 
	 	 	 	 
	 	 	By:	/s/ Justin Davis-Rice
	 	 	Name: Justin Davis-Rice
	 	 	Title: Chairman

 

	Accepted and confirmed:	 	 
	 	 	 	 
	NAKED BRAND GROUP INC.	 	 
	 	 	 	 
	 	 	 	 
	By:	/s/ Carole Hochman	 	 
	Name: Carole Hochman	 	 
	Title: Chief Executive Officer

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