Document:

EXHIBIT 10.3

         

        SENIOR SECURED NOTES REPURCHASE AGREEMENT

         

        This SENIOR SECURED NOTES REPURCHASE AGREEMENT (this “Agreement”) to repurchase 10% Senior Secured Notes of Vista Gold Corporation due March 4, 2011 is made as of July 14, 2009 by and between Whitebox Special Opportunities Fund Series B Partners LP (the “Holder”) and
        Vista Gold Corporation, a company organized and existing under the laws of the Yukon Territory, Canada (the “Company”).

         

        RECITALS

         

        WHEREAS, the Holder is the legal and beneficial owner and holder of the 10% Senior Secured Notes of the Company due March 4, 2011 (the “Notes”) identified on Schedule A hereto, issued pursuant to a Senior Secured Note Indenture dated
        March 4, 2008 (the “Indenture”) by and among, the Company, Minera Paredones Amarillos S.A. de C.V., as guarantor,HSBC Bank USA, N.A., as trustee (the “Trustee”), and HSBC México, S.A. de C.V., Institución de Banca Múltiple, Grupo Financiero HSBC, División
        Fiduciaria, as collateral agent; 

         

        
            	
                         

                    	
                        WHEREAS, the Notes, to date, have not matured; and

                    

        

         

        WHEREAS, the Holder, desiring to sell the Notes, approached the Company with respect thereto, and the Company in turn desires to repurchase Notes from the Holder in the aggregate principal amount identified on Schedule A hereto (the “Subject
        Notes”).

         

        NOW THEREFORE, in consideration of the mutual promises, representations, warranties, covenants and agreements of the parties contained herein and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

         

        
            	
                        1.

                    	
                        REPURCHASE; CLOSING; DELIVERY AND PAYMENT; CANCELLATION

                    

        

         

         

        1.1       Repurchase and Sale of the Subject Notes. Subject to the terms and conditions of this Agreement, the Company agrees to repurchase from the Holder and the Holder agrees to sell to the Company the Subject Notes identified on Schedule A hereto,
        in the principal amount and for an aggregate purchase price as set forth on Schedule A hereto. 

         

        1.2       Closing. The repurchase and sale of the Subject Notes shall take place at the offices of Dorsey & Whitney LLP, 370 17th Street, Denver, Colorado 80202 on July 14, 2009 (the “Closing Date”). 

         

        1.3       Delivery and Payment. On or prior to the Closing Date, the Holder shall deliver to the Company the Subject Notes, duly endorsed or accompanied by an assignment duly endorsed in a form acceptable to the Trustee, against payment by the Company to the Holder of the aggregate purchase price
        described on Schedule A hereto (the “Purchase Price”), by wire transfer using the wire transfer instructions to be provided separately to the Company by the Holder. Upon receipt by the Holder of the Purchase Price, the Company shall become the legal 

         

        
            

        

         

        and beneficial owner of the Subject Notes and all of the rights and interest therein or related thereto and to monies due and to become due under the terms of the Subject Notes.

         

        1.4       Cancellation. The Holder hereby agrees that upon receipt of the Purchase Price, the Subject Notes shall be cancelled by the Trustee and the Company shall have no further obligation to the Holder thereunder.

         

        
            	
                        2.

                    	
                        CONDITIONS PRECEDENT TO THE HOLDER’S OBLIGATION TO CLOSE

                    

        

         

         

        The Holder’s obligation to sell the Subject Notes and to take the other actions required to be taken by the Holder pursuant to this Agreement is subject to the satisfaction, or waiver, of the following conditions:

         

        2.1       Accuracy of Representations and Warranties. The representations and warranties of the Company made in this Agreement shall be true and correct in all respects, as of the date hereof and as of the Closing Date as though then made.

         

        2.2       Performance. The Company shall have duly performed and complied with all of the obligations that the Company is required to perform or to comply with pursuant to this Agreement on or prior to the Closing Date.

         

        
            	
                        3.

                    	
                        CONDITIONS PRECEDENT TO THE COMPANY’S OBLIGATION TO CLOSE

                    

        

         

         

        The Company’s obligation to repurchase the Subject Notes and to take the other actions required to be taken by the Company pursuant to this Agreement is subject to the satisfaction, or waiver, of the following conditions:

         

        3.1       Accuracy of Representations and Warranties. The representations and warranties of the Holder made in this Agreement shall be true and correct in all respects, as of the date hereof and as of the Closing Date as though then made.

         

        3.2       Performance. The Holder shall have duly performed and complied with all of the obligations that the Holder is required to perform or to comply with pursuant to this Agreement on or prior to the Closing Date.

         

        
            	
                        4.

                    	
                        HOLDER’S REPRESENTATIONS AND WARRANTIES

                    

        

         

         

        4.1       Holder’s Authority. The Holder has full power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. The execution, delivery and performance by the Holder of this Agreement has been duly and validly authorized by all requisite action of the
        Holder.

         

        4.2       Title to the Subject Notes. The Holder has and as of the Closing Date will have good and marketable title and interest (legal and beneficial) in and to the Subject Notes, free and clear of any encumbrances, including, without limitation, any charge, claim, condition, equitable interest,
        lien, option, pledge, security interest, right of first refusal, or restriction of any kind, 

         

        
            

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        including any restriction on use, voting, transfer, receipt of income, or exercise of any other attribute of ownership. 

         

        4.3       Binding and Enforceable. This Agreement constitutes a valid and binding agreement of the Holder, enforceable against the Holder in accordance with its terms, except as enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or
        other similar laws relating to or affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

         

        4.4       No Consent Required. No consent, authorization, approval, order, license, certificate or permit or act of or from, or declaration or filing with, any foreign, federal, state, local or other governmental authority or regulatory body or any court or other tribunal or any party to any contract,
        agreement, instrument, lease or license to which the Holder is a party, is required for the execution, delivery or performance by the Holder of this Agreement or any of the other agreements, instruments and documents being or to be executed and delivered hereunder or in connection herewith or for the consummation of the transactions contemplated hereby.

         

        4.5       No Conflict. Neither the execution and delivery of this Agreement or the consummation of any of the transactions contemplated hereby nor compliance with or fulfillment of the terms, conditions and provisions hereof or thereof will conflict with, result in a breach of the terms, conditions or
        provisions of, or constitute a default (with or without notice or lapse of time, or both), or an event creating rights of acceleration, termination or cancellation or a loss of rights under (i) any material note, instrument, agreement, mortgage, lease, license, franchise, permit or other authorization, right, restriction or obligation to which the Holder is a party or by which the Holder or any of its properties is bound, (ii) any judgment or decree applicable to, or affecting, the
        Holder or (iii) any statute, law or rule to which the Holder is subject.

         

        4.6       Disclosure of Information. The Holder has received all the information it considers necessary or appropriate to determine whether to sell the Subject Notes to the Company pursuant to this Agreement. The Holder acknowledges (i) the Company has not made any representation or warranty, express
        or implied, except as set forth herein, regarding any aspect of the sale and purchase of the Subject Notes, the operation or financial condition of the Company or the value of the Subject Notes, (ii) that it is not relying upon the Company in making its decision to sell the Subject Notes to the Company pursuant to this Agreement and (iii) that the Company is relying upon the truth of the representations and warranties in this Section 4 in connection with the purchase of the Subject
        Notes hereunder. 

         

        4.7       Tax Consequences. The Holder has had an opportunity to review the federal, state and local tax consequences of the sale of the Subject Notes to the Company and the transactions contemplated by this Agreement with its own tax advisors. The Holder is relying solely on such advisors and not on
        any statements or representations of the Company.

         

        4.8       No Solicitation. The Holder has made no general solicitation in connection with the sale of the Subject Notes, acknowledges that it independently approached the Company 

         

        
            

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        regarding the transactions contemplated hereby and that the Company did not initiate or attempt to initiate the transactions contemplated hereby.

         

        4.9       Not an Affiliate. The Holder acknowledges that it is not an “affiliate” of the Company as such term is defined in Rule 12b-2 of the United States Securities Exchange Act of 1934, as amended (the “Exchange
        Act”).

         

        
            	
                        5.

                    	
                        COMPANY’S REPRESENTATIONS AND WARRANTIES

                    

        

         

         

        5.1       Company’s Authority. The Company has all requisite corporate right, power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. The execution, delivery and performance by the Company of this Agreement has been duly and validly authorized by
        all requisite action of the Company.

         

        5.2       Binding and Enforceable. This Agreement constitutes a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance
        or other similar laws relating to or affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

         

        5.3       No Insolvency. The Company has taken no action, and no steps have been taken or legal proceedings started or threatened against the Company for an administration, winding-up, dissolution, or bankruptcy. The Company is not insolvent and is able to pay its debts as and when they become
        due.

         

        5.4       No Inside Information. In entering into this Agreement, the Company has not acted “on the basis of” material nonpublic information as such term is defined in Rule 10b5-1 of the Exchange Act.

         

        5.5       Not an Affiliate. The Company acknowledges that the Holder is not an “affiliate” of the Company as such term is defined in Rule 12b-2 of the Exchange Act.

         

        5.6       No Solicitation. The Company has made no general solicitation in connection with the repurchase of the Subject Notes, acknowledges that it was independently approached by the Holder regarding the transactions contemplated hereby and did not initiate or attempt to initiate the transactions
        contemplated hereby.

         

        5.7       No Consent. No consent, authorization, approval, order, license, certificate or permit or act of or from, or declaration or filing with, any foreign, federal, state, local or other governmental authority or regulatory body or any court or other tribunal or any party to any contract,
        agreement, instrument, lease or license to which the Company is a party, is required for the execution, delivery or performance by the Company of this Agreement or any of the other agreements, instruments and documents being or to be executed and delivered hereunder or in connection herewith or for the consummation of the transactions contemplated hereby.

         

        
            

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        5.8       No Conflict. Neither the execution and delivery of this Agreement or the consummation of any of the transactions contemplated hereby nor compliance with or fulfillment of the terms, conditions and provisions hereof or thereof will conflict with, result in a breach of the terms, conditions or
        provisions of, or constitute a default (with or without notice or lapse of time, or both), or an event creating rights of acceleration, termination or cancellation or a loss of rights under (i) any material note, instrument, agreement, mortgage, lease, license, franchise, permit or other authorization, right, restriction or obligation to which the Company is a party or by which the Company or any of its properties is bound, (ii) any judgment or decree applicable to, or affecting, the
        Company or (iii) any statute, law or rule to which the Company is subject.

         

        5.9       No Litigation. There is no action, suit, proceeding, judgment, claim or investigation pending or, to the knowledge of the Company, threatened against the Company which could reasonably be expected in any manner to challenge or seek to prevent, enjoin, alter or materially delay any of the
        transactions contemplated by this Agreement.

         

        
            	
                        6.

                    	
                        MISCELLANEOUS

                         

                    

        

         

                        6.1       Governing Law. This agreement shall be governed by and construed in accordance with the laws of the State of Colorado without regard to choice of laws principles thereof. The parties hereto hereby agree that any action
        brought under this Agreement or related to the transactions contemplated hereby shall be in a Federal or State court located in the County of Denver in the State of Colorado.

         

        6.2       Counterparts. This Agreement may be executed in two or more counterparts and by facsimile or electronic signature, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

         

        6.3       Benefit, Binding Effect. This Agreement shall inure to the benefit of and be binding upon the parties and their respective heirs, successors, legal representatives and permitted assigns. Nothing in this Agreement, expressed or implied, is intended to confer on any person other than the
        parties, and their respective heirs, successors, legal representatives and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

         

        6.4       Assignment. No party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the written consent of the other party.

         

        6.5       Headings and Subtitles. The headings and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 

         

        6.6       Amendment and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Holder. 

         

        
            

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        6.7       Survival of Representations and Warranties. The representations and warranties contained herein shall survive the closing or any termination of this Agreement.

         

        6.8       Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be notified, (ii) when sent by confirmed facsimile if sent during the normal business hours of the recipient; if
        not, then on the next business day, (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid or (iv) one (1) day after deposit with a nationally-recognized overnight courier, specifying next-day delivery, with written verification of receipt. All communications shall be sent to the respective parties at the addresses set forth below (or at such other addresses as shall be specified by notice given in accordance with this
        Section 6.8):

         

        
            	
                         

                    	
                        (a)

                    	
                        If to the Holder, to the Holder at the following address:

                    

        

         

        Whitebox Advisors LLC

        3033 Excelsior Blvd #300

        Minneapolis, Minnesota 55416

        Attn: Barb Reller

        Fax: (612) 253-6100

         

        
            	
                         

                    	
                        (b)

                    	
                        If to the Company, to the Company at the following address:

                    

        

         

        Vista Gold Corporation

        7961 Shaffer Parkway, Suite 5

        Littleton, Colorado 80127

        Attn: Michael B. Richings

        Fax: (720) 981-1186

         

        With a copy to:

         

        Dorsey & Whitney LLP

        370 17th Street, Suite 4700

        Denver, Colorado 80202

        Attn: Kenneth Sam

        Fax: (303) 629-3450

         

        6.9       Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision or provisions shall be excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision or provisions were so excluded and shall
        be enforceable in accordance with its terms. 

         

        6.10     Entire Agreement. This Agreement and the documents referred to herein constitute the entire agreement among the parties and no party shall be liable or bound to any other party in any manner by any warranties, representations or covenants except as specifically set forth herein or therein. 

         

        
            

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        6.11     Further Assurances. Each party hereby agrees to execute any additional documents and take any additional actions as may be reasonably necessary to carry out the terms of this Agreement. 

         

        [Signature Page Follows]

         

        
            

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          IN WITNESS WHEREOF, the Holder and the Company have duly executed this Agreement as of the date first above written.

         

         

        
            	
                         

                    	
                        WHITEBOX SPECIAL OPPORTUNITIES FUND SERIES B PARTNERS LP

                        HOLDER

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        By: 

                    	
                        ___________________________

                    
	
                         

                    	
                         

                    	
                        Name:

                    	
                         

                    
	
                         

                    	
                         

                    	
                        Title:

                    	
                         

                    

        

         

         

         

        
            	
                         

                    	
                        VISTA GOLD CORPORATION

                        COMPANY

                    
	
                         

                    	
                         

                    
	
                         

                    	
                        By:

                    	
                        ___________________________

                    
	
                         

                    	
                         

                    	
                        Name:

                    	
                        Michael B. Richings

                    
	
                         

                    	
                         

                    	
                        Title:

                    	
                        Chief Executive Officer

                    

        

         

         

         

        
            

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        Schedule A

         

        
            	
                        Title of Securities:

                    	
                        10% Senior Secured Notes in principal amount denominations of US$1,000 due March 4, 2011.

                         

                    
	
                        Principal Amount of Notes Owned by the Holder:

                    	
                                   819,000                .

                         

                    
	
                        Principal Amount of Notes Subject to Repurchase:

                    	
                                  319,000                .

                         

                    
	
                        Purchase Price:

                    	
                            207,350   (_$650    for each $1,000 principal amount of the Subject Notes), plus accrued and unpaid interest thereon up to an including the Closing Date.

                         

                    
	
                        Accrued Interest:

                    	
                           2,658    plus an additional     89    per day in the event that the Closing Date is extended to a later date by mutual agreement of the parties.

                         

                    
	
                        Aggregate Purchase Price:

                    	
                              210,008      Plus and additional    139   in the event that the Closing Date is extended to a later date by mutual agreement of the parties.

                         

                    
	
                        Closing Date:

                    	
                        July       14     , 2009

                    

        

         

         

         

        
            

            -9-ex10-1.htm

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

Employment Agreement (the "Employment Agreement") made as of this 15th day of  July, 2009, by and between DONALD L. KOVACH, an individual residing at Branchville, New Jersey (the "Employee"), SUSSEX BANK,
a state chartered bank with its principal place of business located at 200 Munsonhurst Road, Route 517, Franklin, New Jersey 07416 (the "Bank"), and SUSSEX BANCORP, a New Jersey corporation with its principal place of business located at Route 517, Franklin, New Jersey 07416 (the "Company"; the Bank and the company sometimes collectively are referred to herein as "Employer").

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.

(a) Subject to the terms of paragraph (b) below, the Employee shall be employed as Chairman, President and Chief Executive Officer of the Company and Chairman and Chief Executive Officer of 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 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.

(b) Notwithstanding the provisions of paragraph (a) hereof, either the Employer or the Employee may elect, in the discretion of either and without cause, to have Employee relinquish

  

  

  

the titles and positions granted under paragraph (a) hereof other than those of Chairman of the Board of the Company and the Bank, by providing thirty (30) days written notice to the other party. Any such decision shall not be deemed a breach or termination of this Agreement, which shall remain in full force and effect,
or as a termination of Employee under Section 6 hereof.

 

3.           Cash Compensation.  Employer shall pay to the Employee compensation for his services as follows:

(a)           Base Salary.  The Employee shall be entitled to receive, commencing upon the date of this Agreement, an annual base salary (the "Base Salary") of Two Hundred Sixty Six and Two
Hundred Ninety Two Dollars ($266,292), 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 adjust the Base Salary accordingly. Notwithstanding the forgoing, in the event Employer or Employee exercises
the right provided under Section 2(b) hereof for the Employee to cease serving in all positions other than Chairman of the Board of the Company and the Bank, the Base Salary shall, effective as of the effective date of the change in Employee’s positions, be reduced to fifty percent (50%) of the Base Salary on the date the written notice required by Section 2(b) is given.

(b)           Discretionary Bonus.  Employee shall be entitled to receive annually at the discretion of the Board of Directors or a committee thereof a cash bonus.

4.           Other Benefits.

(a)           Fringe Benefits.  The Employee shall be entitled to the exclusive and unlimited use of an automobile or a cash allowance to be used for the purpose of maintaining an automobile
of a type and style commensurate with the Employee's status with Employer.  In addition, 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 or retirement plans offered by Employer to its employees generally or to its senior management.

  

  

  

5.           Term.  The term of this Agreement shall be three years, commencing on the date hereof  and continuing until August 31, 2012.

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, 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.

(b)           Termination With Cause.  Employer shall have the right to terminate the Employee for "cause", upon written notice to him of such determination, specifying the alleged "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 his then current Base Salary for the remaining term of this Agreement or for a one year period, whichever is greater.  Such payments may be made over the remaining term of this Agreement (or over a one year period if greater) in periodic payments in the same manner in which the Employee's
salary was paid through the time of such termination, or by a lump sum payment of the discounted present value of all base salary payments through the remaining term of this Agreement.  The determination of the method of payment shall be made mutually by Employer and the Employee; provided, however, that in the event the parties cannot agree on the method of payment, Employer shall be entitled to choose.  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 through the end of the term of this Agreement or for a one year period, if greater.  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)           Suspension and Special Regulatory Rules.

(i)           If the Employee is suspended and/or temporarily prohibited from participating in the conduct of the affairs of the Company of the Bank by a notice served under Section 8(e)(3) or Section 8(g)(1) of the Federal Deposit Insurance Act ("FDI Act"), Employer's
obligations under this Agreement shall be suspended as of the date of service, unless stayed by appropriate proceedings.

(ii)           If the Employee is removed and/or permanently prohibited from participating in the conduct of the affairs of the Company or the Bank by an order issued under Section 8(e) or Section 8(g)(1) of the FDI Act, all obligations of Employer under this Agreement
shall terminate as of the effective date of the order and the Employee shall not be entitled to received the payments provided for under Paragraph (c) above.

(iii)           If the Bank is in default, as defined in Section 3(x)(1) of the FDI Act, all obligations of Employer under this Agreement shall terminate as of the date of default.

  

  

  

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) other than pursuant to Section 2(b) hereof, reassigns the Employee to a position of lesser rank or status than Chief Executive Officer, (ii) relocates the Employee's principal place of employment by more than thirty miles from its location
on the date hereof, or (iii) reduces the Employee's compensation or other benefits.  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 occurrence of a Change in Control (as herein defined), Employee shall have the right to resign his employment with the Employer or its successor for any reason or no reason within sixty (60) days of the Change in Control and thereafter Employee
shall become entitled to receive the payments provided for under paragraph (c) below. In addition, in the event after a Change In Control and at any time during the term of this Agreement Employee’s employment is involuntarily terminated by Employer or its successor other than for "cause", as defined in Section 6(a) hereof,  Employee shall become entitled to receive the payments provided for under paragraph (c) below.

(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

	
  
	
(v)
	
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 2.99 times Employee's then current Base Salary; 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.  In addition to the foregoing, 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.  Employer's obligation to continue such insurance benefits will be for a period of  three years.

  

  

  

9.           Covenant Not to Compete.  Employee agrees that during the term of his employment hereunder and for a period of one (1) year after the termination of his employment, 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 the National Association of Securities Dealers Automated Quotation System) 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.  In the event that this covenant not to compete 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 that is reasonable under the circumstances and enforceable by Employer.  Employee agrees to be bound
by any such modified covenant not to compete.

10.           Termination of Prior Agreement.  Employee and Employer acknowledge that this Agreement is being entered into in substitution of that certain existing Employment Agreement between Employee
and Employer dated as of September 15, 1999, as subsequently amended, which is hereby terminated.

11.           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.

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

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

	  	
SUSSEX BANK

	  	  	  
	  	  	
 

	  	
By:
	
/s/

	  	  	
Name:

	  	  	
Title:

	  	  	  
	  	  	  
	  	
SUSSEX BANCORP

	  	  	  
	  	  	
 

	  	
By:
	
/s/

	  	  	
Name:

	  	  	
Title:

	  	  	  
	  	  	  
	  	  	  
	  	
EMPLOYEE:

	  	  	  
	  	  	
/s/

	  	
Name:
	
Donald L. Kovach, Esq.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]